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Sep 30, 2023
Workiva Q3 2023 Earnings Report
Workiva's Q3 2023 earnings were announced, showcasing revenue growth and improved profitability.
Key Takeaways
Workiva reported a solid third quarter with a 19% increase in total revenue, driven by a 21% rise in subscription and support revenue. The company's focus on growth and productivity led to improved operating leverage and a commitment to enhanced operating margins and non-GAAP profitability for 2023 and 2024.
Subscription and support revenue increased by 21% compared to Q3 2022.
Total revenue reached $158.2 million, a 19% increase year-over-year.
The number of customers with annual contract values over $300,000 grew by 38% year-over-year.
Subscription revenue retention rate, including add-ons, improved to 112% compared to 107% in Q3 2022.
Workiva
Workiva
Workiva Revenue by Segment
Revenue by Segment
Subscription and Support Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Workiva provided financial guidance for the fourth quarter and full year 2023.
Positive Outlook
- Total revenue is expected to be in the range of $164 million to $165 million for Q4 2023.
- Non-GAAP income from operations is expected to be in the range of $6 million to $7 million for Q4 2023.
- Non-GAAP net income per basic share is expected to be in the range of $0.21 to $0.23 for Q4 2023.
- Total revenue is expected to be in the range of $627 million to $628 million for the full year 2023.
- Non-GAAP income from operations is expected to be in the range of $3 million to $4 million for the full year 2023.
Challenges Ahead
- GAAP loss from operations is expected to be in the range of $17 million to $16 million for Q4 2023.
- GAAP net loss per basic share is expected to be in the range of $0.20 to $0.18 for Q4 2023.
- GAAP loss from operations is expected to be in the range of $102 million to $101 million for the full year 2023.
- GAAP net loss per basic share is expected to be in the range of $2.48 to $2.46 for the full year 2023.
- Non-GAAP net loss per basic share is expected to be in the range of $0.54 to $0.52 for the full year 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income