Workiva Announces Fourth Quarter and Full Year 2019 Financial Results

Q4 Subscription and Support Revenue of $66.1 Million, up 23.0% from Q4 2018
Q4 Total Revenue of $80.3 Million, up 24.6% from Q4 2018
Full Year 2019 Total Revenue of $297.9 Million, up 21.9% from 2018

AMES, Iowa--()--Workiva (NYSE:WK), provider of the world’s leading connected reporting and compliance platform, today announced financial results for its fourth quarter and full year ended December 31, 2019.

"We are pleased with our fourth quarter and full year 2019 results that beat guidance for revenue, operating loss and loss per share," said Marty Vanderploeg, Chief Executive Officer of Workiva.

"We are encouraged by our progress in bookings and pipeline from our growth vectors: Europe, Wdata and our platform solutions for integrated risk and global statutory reporting," said Stuart Miller, Chief Financial Officer of Workiva. "Our Q4 results and 2020 guidance reflect our investments in these vectors."

"One of our top priorities this year is upgrading customers to the next generation of our technology, which is an end-to-end platform," said Vanderploeg. "Our customers now have the power to connect and manage all of their data – from initial systems of record to final reports – in our secure, cloud platform."

"Our advisory and service partners can also combine their domain expertise with our new, more open platform to create higher-value solutions for their clients," said Vanderploeg. "We see our partners as a catalyst for growth in 2020."

Fourth Quarter 2019 Financial Highlights

  • Revenue: Total revenue for the fourth quarter of 2019 reached $80.3 million, an increase of 24.6% from $64.4 million in the fourth quarter of 2018. Subscription and support revenue contributed $66.1 million, up 23.0% versus the fourth quarter of 2018. Professional services revenue was $14.1 million, an increase of 32.5% compared to the same quarter in the prior year.
  • Gross Profit: GAAP gross profit for the fourth quarter of 2019 was $57.2 million compared with $47.0 million in the same quarter of 2018. GAAP gross margin was 71.3% versus 73.0% in the fourth quarter of 2018. Non-GAAP gross profit for the fourth quarter of 2019 was $58.1 million, an increase of 22.6% compared with the prior year's fourth quarter, and non-GAAP gross margin was 72.3% compared to 73.5% in the fourth quarter of 2018.
  • Loss from Operations: GAAP loss from operations for the fourth quarter of 2019 was $14.5 million compared with a loss of $7.8 million in the prior year's fourth quarter. Non-GAAP loss from operations was $4.6 million, compared with non-GAAP loss from operations of $0.3 million in the fourth quarter of 2018.
  • Net Loss: GAAP net loss for the fourth quarter of 2019 was $16.3 million compared with a net loss of $7.7 million for the prior year's fourth quarter. GAAP net loss per basic and diluted share was $0.35 compared with a net loss per basic and diluted share of $0.17 in the fourth quarter of 2018.
  • Non-GAAP net loss for the fourth quarter of 2019 was $4.3 million compared with a net loss of $0.2 million in the prior year's fourth quarter. Non-GAAP net loss per basic and diluted share was $0.09, compared with a net loss per basic and diluted share of $0.00 in the fourth quarter of 2018.
  • Liquidity: As of December 31, 2019, Workiva had cash, cash equivalents and marketable securities totaling $488.0 million, compared with $98.3 million as of December 31, 2018. In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026. In addition, financing obligations totaled $17.2 million as of December 31, 2019.

Key Metrics and Recent Business Highlights

  • Customers: Workiva had 3,510 customers as of December 31, 2019, a net increase of 170 customers from December 31, 2018.
  • Revenue Retention Rate: As of December 31, 2019, Workiva's revenue retention rate (excluding add-on revenue) was 94.7%, and the revenue retention rate including add-on revenue was 113.0%. Add-on revenue includes changes in both solutions and pricing for existing customers.
  • Large Contracts: As of December 31, 2019, Workiva had 652 customers with an annual contract value (ACV) of more than $100,000, up 47.2% from 443 customers at December 31, 2018. Workiva had 285 customers with an ACV of more than $150,000, up 50.0% from 190 customers in the fourth quarter of 2018.
  • Fortune's Best 100 Workplaces: Workiva was named one of the FORTUNE 100 Best Companies to Work For® in 2020 by research firm Great Place to Work and FORTUNE magazine. This is the second consecutive year Workiva has been named to this list.

Full Year 2019 Financial Highlights

  • Revenue: Total revenue for the full year 2019 was $297.9 million, an increase of 21.9% compared with $244.3 million in the prior year. Subscription and support revenue was $245.8 million, an increase of 22.6% on a year-over-year basis.
  • Gross Profit: GAAP gross profit for 2019 was $212.9 million compared with $178.5 million in the prior year. GAAP gross margin was 71.5% in 2019. Non-GAAP gross profit was $216.2 million, an increase of 20.2% compared with the prior year, and non-GAAP gross margin was 72.6%.
  • Loss from Operations: GAAP loss from operations for the full year 2019 was $48.0 million compared with a loss of $49.8 million in the prior year. Non-GAAP loss from operations was $9.9 million compared with a loss of $13.0 million in 2018.
  • Net Loss: GAAP net loss for 2019 was $48.1 million compared with a net loss of $50.1 million in the prior year. GAAP net loss per share was $1.04 based on 46.3 million weighted-average shares outstanding compared with a loss per share of $1.15 based on 43.6 million weighted-average shares outstanding in 2018.
  • Non-GAAP net loss for 2019 was $9.1 million compared with a net loss of $13.3 million in the prior year. Non-GAAP net loss per share was $0.20 based on 46.3 million weighted-average shares outstanding compared with a non-GAAP net loss per share of $0.31 based on 43.6 million weighted-average shares in 2018.
  • Cash Flow: Net cash provided by operating activities was $30.6 million in 2019, compared to cash provided by operating activities of $6.4 million in 2018.

Financial Outlook

As of February 20, 2020, Workiva is providing guidance for its first quarter 2020 and full year 2020 as follows:

First Quarter 2020 Guidance:

  • Total revenue is expected to be in the range of $82.8 million to $83.3 million.
  • GAAP loss from operations is expected to be in the range of $17.6 million to $18.1 million.
  • Non-GAAP loss from operations is expected to be in the range of $7.0 million to $7.5 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $0.39 to $0.40.
  • Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.12 to $0.13.
  • Net loss per basic and diluted share is based on 47.8 million weighted-average shares outstanding.

Full Year 2020 Guidance:

  • Total revenue is expected to be in the range of $341.5 million to $343.5 million.
  • GAAP loss from operations is expected to be in the range of $79.7 million to $81.7 million.
  • Non-GAAP loss from operations is expected to be in the range of $36.0 million to $38.0 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $1.72 to $1.76.
  • Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.63 to $0.67.
  • Net loss per basic and diluted share is based on 48.9 million weighted-average shares outstanding.

Quarterly Conference Call

Workiva will host a conference call today at 5:00 p.m. ET to review the Company’s financial results for the fourth quarter and full year 2019, in addition to discussing the Company’s outlook for the first quarter and full year 2020. To access this call, dial 833-287-0800 (U.S. domestic) or 647-689-4459 (international). The conference ID is 9066012. A live webcast of the conference call will be accessible in the "Investor Relations" section of Workiva’s website at www.workiva.com. A replay of this conference call can also be accessed through February 27, 2020 at 800-585-8367 (U.S. domestic) or 416-621-4642 (international). The replay pass code is 9066012. An archived webcast of this conference call will also be available an hour after the completion of the call in the "Investor Relations" section of the Company’s website at www.workiva.com.

About Workiva

Workiva, provider of the world's leading connected reporting and compliance platform, is used by thousands of enterprises across 180 countries, including nearly 75 percent of Fortune 500® companies, and by government agencies. Our customers have linked over five billion data elements to trust their data, reduce risk and save time. For more information about Workiva (NYSE:WK), please visit workiva.com.

Read the Workiva blog: www.workiva.com/blog
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Non-GAAP Financial Measures

The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation, non-cash interest expense and CEO separation expense. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in Table I at the end of this press release. A reconciliation of GAAP to non-GAAP guidance has been provided in Table II at the end of this press release.

Workiva believes that the use of non-GAAP gross profit and gross margin, non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Non-GAAP gross profit is calculated by excluding stock-based compensation expense attributable to cost of revenues from gross profit. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by revenues. Non-GAAP loss from operations is calculated by excluding stock-based compensation expense and CEO separation expense from loss from operations. Non-GAAP net loss is calculated by excluding stock-based compensation expense, net of tax, CEO separation expense, and non-cash interest expense related to our convertible senior notes from net loss. Non-GAAP net loss per share is calculated by dividing non-GAAP net loss by the weighted- average shares outstanding as presented in the calculation of GAAP net loss per share. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Workiva believes that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between its operating results from period to period. Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be accounted for as separate liability and equity components in a manner that reflects our non-convertible debt borrowing rate. This results in the debt component being treated as though it was issued at a discount, with the debt discount being accreted as additional non-cash interest expense over the term of the notes using the effective interest method. As a result, we believe that excluding this non-cash interest expense attributable to the debt discount in calculating our non-GAAP measures is useful because this interest expense does not represent a cash outflow and is not indicative of our ongoing operational performance. Because of the non-recurring nature of CEO separation expense, Workiva believes this expense is not representative of ongoing operating costs. Workiva’s management excludes CEO separation expense when evaluating its ongoing performance and/or predicting its operating trends and believes that its investors should have access to the same set of tools that we use in analyzing results. Workiva’s management uses these non-GAAP financial measures as tools for financial and operational decision making and for evaluating Workiva’s own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Workiva’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Workiva’s reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Workiva’s business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Workiva’s business.

Safe Harbor Statement

Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company’s expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance" or the negative of those terms or other comparable terminology.

Please see the Company’s documents filed or to be filed with the Securities and Exchange Commission, including the Company’s annual reports filed on Form 10-K and quarterly reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

WORKIVA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)

 

Three months ended
December 31,

 

Year ended December 31,

 

2019

 

2018

 

2019

 

2018

 

(unaudited)

 

 

 

 

Revenue

 

 

 

 

 

 

 

Subscription and support

$

66,148

 

 

$

53,779

 

 

$

245,765

 

 

$

200,392

 

Professional services

14,117

 

 

10,656

 

 

52,126

 

 

43,952

 

Total revenue

80,265

 

 

64,435

 

 

297,891

 

 

244,344

 

Cost of revenue

 

 

 

 

 

 

 

Subscription and support (1)

11,946

 

 

8,637

 

 

42,881

 

 

34,215

 

Professional services (1)

11,102

 

 

8,757

 

 

42,131

 

 

31,645

 

Total cost of revenue

23,048

 

 

17,394

 

 

85,012

 

 

65,860

 

Gross profit

57,217

 

 

47,041

 

 

212,879

 

 

178,484

 

Operating expenses

 

 

 

 

 

 

 

Research and development (1)

23,216

 

 

20,773

 

 

89,921

 

 

81,602

 

Sales and marketing (1)

33,732

 

 

23,011

 

 

120,300

 

 

90,337

 

General and administrative (1)

14,754

 

 

11,047

 

 

48,380

 

 

56,333

 

Total operating expenses

71,702

 

 

54,831

 

 

258,601

 

 

228,272

 

Loss from operations

(14,485)

 

 

(7,790)

 

 

(45,722)

 

 

(49,788)

 

Interest income

2,064

 

 

435

 

 

4,657

 

 

1,278

 

Interest expense

(3,534)

 

 

(480)

 

 

(6,366)

 

 

(1,827)

 

Other (expense) and income, net

(305)

 

 

318

 

 

(564)

 

 

513

 

Loss before provision for income taxes

(16,260)

 

 

(7,517)

 

 

(47,995)

 

 

(49,824)

 

Provision for income taxes

38

 

 

204

 

 

139

 

 

247

 

Net loss

$

(16,298)

 

 

$

(7,721)

 

 

$

(48,134)

 

 

$

(50,071)

 

Net loss per common share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.35)

 

 

$

(0.17)

 

 

$

(1.04)

 

 

$

(1.15)

 

Weighted-average common shares outstanding - basic and diluted

47,058,209

 

 

44,472,672

 

 

46,302,656

 

 

43,640,408

 

 

(1) Includes stock-based compensation expense as follows:

 

Three months ended
December 31,

 

Year ended December 31,

 

2019

 

2018

 

2019

 

2018

 

(unaudited)

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

Subscription and support

$

412

 

 

$

140

 

 

$

1,554

 

 

$

700

 

Professional services

429

 

 

170

 

 

1,725

 

 

619

 

Operating expenses

 

 

 

 

 

 

 

Research and development

1,990

 

 

1,702

 

 

8,006

 

 

5,842

 

Sales and marketing

2,593

 

 

1,466

 

 

8,792

 

 

5,416

 

General and administrative

4,431

 

 

4,044

 

 

15,707

 

 

18,264

 

WORKIVA INC.

CONSOLIDATED BALANCE SHEETS
(in thousands)

 

As of December 31,

 

2019

 

2018

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

381,742

 

 

$

77,584

 

Marketable securities

106,214

 

 

20,764

 

Accounts receivable, net

60,228

 

 

65,107

 

Deferred commissions

14,108

 

 

8,178

 

Other receivables

2,432

 

 

1,181

 

Prepaid expenses and other

6,508

 

 

4,417

 

Total current assets

571,232

 

 

177,231

 

Property and equipment, net

39,745

 

 

41,468

 

Operating lease right-of-use assets

15,352

 

 

 

Deferred commissions, non-current

14,977

 

 

10,569

 

Intangible assets, net

1,651

 

 

1,266

 

Other assets

3,439

 

 

577

 

Total assets

$

646,396

 

 

$

231,111

 

Liabilities and Stockholders’ Equity (Deficit)

 

 

 

Current liabilities

 

 

 

Accounts payable

$

7,057

 

 

$

5,461

 

Accrued expenses and other current liabilities

49,930

 

 

36,353

 

Deferred revenue

173,617

 

 

148,545

 

Current portion of financing obligations

1,328

 

 

1,222

 

Total current liabilities

231,932

 

 

191,581

 

Convertible senior notes, net

280,601

 

 

 

Deferred revenue, non-current

32,569

 

 

25,171

 

Other long-term liabilities

1,498

 

 

6,891

 

Operating lease liabilities, non-current

18,564

 

 

 

Financing obligations, non-current

15,889

 

 

17,208

 

Total liabilities

581,053

 

 

240,851

 

Stockholders’ equity (deficit)

 

 

 

Common stock

47

 

 

44

 

Additional paid-in-capital

420,170

 

 

297,145

 

Accumulated deficit

(355,161)

 

 

(307,027)

 

Accumulated other comprehensive income

287

 

 

98

 

Total stockholders’ equity (deficit)

65,343

 

 

(9,740)

 

Total liabilities and stockholders’ equity (deficit)

$

646,396

 

 

$

231,111

 

WORKIVA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 

Three months ended
December 31,

 

Year ended December 31,

 

2019

 

2018

 

2019

 

2018

 

(unaudited)

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(16,298)

 

 

$

(7,721)

 

 

$

(48,134)

 

 

$

(50,071)

 

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

1,228

 

 

900

 

 

4,160

 

 

3,781

 

Stock-based compensation expense

9,855

 

 

7,522

 

 

35,784

 

 

30,841

 

(Recovery of) provision for doubtful accounts

(34)

 

 

239

 

 

(92)

 

 

550

 

Amortization (accretion) of premiums and discounts on marketable securities, net

102

 

 

(78)

 

 

13

 

 

(141)

 

Amortization of debt discount and issuance costs

2,179

 

 

 

 

3,262

 

 

 

Deferred income tax

2

 

 

(5)

 

 

(65)

 

 

(9)

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

(16,364)

 

 

(24,831)

 

 

5,166

 

 

(20,216)

 

Deferred commissions

(2,300)

 

 

(5,547)

 

 

(10,268)

 

 

(11,155)

 

Operating lease right-of-use asset

747

 

 

 

 

2,552

 

 

 

Other receivables

(780)

 

 

211

 

 

(1,250)

 

 

(205)

 

Prepaid expenses

1,653

 

 

1,308

 

 

(2,084)

 

 

2,020

 

Other assets

489

 

 

833

 

 

(1,860)

 

 

276

 

Accounts payable

1,993

 

 

(300)

 

 

2,153

 

 

1,699

 

Deferred revenue

17,927

 

 

25,112

 

 

32,039

 

 

40,144

 

Operating lease liability

(809)

 

 

 

 

(3,035)

 

 

 

Accrued expenses and other liabilities

2,397

 

 

1,938

 

 

12,225

 

 

8,886

 

Net cash provided by (used in) operating activities

1,987

 

 

(419)

 

 

30,566

 

 

6,400

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

(244)

 

 

(380)

 

 

(3,104)

 

 

(1,122)

 

Purchase of marketable securities

(17,099)

 

 

(6,935)

 

 

(112,565)

 

 

(24,659)

 

Maturities of marketable securities

6,450

 

 

11,400

 

 

26,840

 

 

20,400

 

Sale of marketable securities

 

 

 

 

498

 

 

 

Purchase of intangible assets

(22)

 

 

(77)

 

 

(734)

 

 

(251)

 

Other

 

 

 

 

(1,000)

 

 

 

Net cash (used in) provided by investing activities

(10,915)

 

 

4,008

 

 

(90,065)

 

 

(5,632)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from option exercises

1,659

 

 

2,735

 

 

24,152

 

 

16,662

 

Taxes paid related to net share settlements of stock-based compensation awards

 

 

 

 

(390)

 

 

(1,861)

 

Proceeds from shares issued in connection with employee stock purchase plan

 

 

 

 

4,922

 

 

3,216

 

Proceeds from the issuance of convertible senior notes, net of issuance costs

 

 

 

 

335,899

 

 

 

Principal payments on capital lease and financing obligations

(312)

 

 

(284)

 

 

(1,213)

 

 

(1,163)

 

Proceeds from government grants

 

 

 

 

 

 

22

 

Net cash provided by financing activities

1,347

 

 

2,451

 

 

363,370

 

 

16,876

 

Effect of foreign exchange rates on cash

199

 

 

(299)

 

 

287

 

 

(393)

 

Net (decrease) increase in cash and cash equivalents

(7,382)

 

 

5,741

 

 

304,158

 

 

17,251

 

Cash and cash equivalents at beginning of period

389,124

 

 

71,843

 

 

77,584

 

 

60,333

 

Cash and cash equivalents at end of period

$

381,742

 

 

$

77,584

 

 

$

381,742

 

 

$

77,584

 

TABLE I
WORKIVA INC.
RECONCILIATION OF NON-GAAP INFORMATION
(in thousands, except share and per share)

 

Three months ended
December 31,

 

Year ended December 31,

 

2019

 

2018

 

2019

 

2018

Gross profit, subscription and support

$

54,202

 

 

$

45,142

 

 

$

202,884

 

 

$

166,177

 

Add back: Stock-based compensation

412

 

 

140

 

 

1,554

 

 

700

 

Gross profit, subscription and support, non-GAAP

$

54,614

 

 

$

45,282

 

 

$

204,438

 

 

$

166,877

 

As a percentage of subscription and support revenue, non-GAAP

82.6

%

 

84.2

%

 

83.2

%

 

83.3

%

 

 

 

 

 

 

 

 

Gross profit, professional services

$

3,015

 

 

$

1,899

 

 

$

9,995

 

 

$

12,307

 

Add back: Stock-based compensation

429

 

 

170

 

 

1,725

 

 

619

 

Gross profit, professional services, non-GAAP

$

3,444

 

 

$

2,069

 

 

$

11,720

 

 

$

12,926

 

As a percentage of professional services revenue, non-GAAP

24.4

%

 

19.4

%

 

22.5

%

 

29.4

%

 

 

 

 

 

 

 

 

Gross profit

$

57,217

 

 

$

47,041

 

 

$

212,879

 

 

$

178,484

 

Add back: Stock-based compensation

841

 

 

310

 

 

3,279

 

 

1,319

 

Gross profit, non-GAAP

$

58,058

 

 

$

47,351

 

 

$

216,158

 

 

$

179,803

 

As percentage of revenue, non-GAAP

72.3

%

 

73.5

%

 

72.6

%

 

73.6

%

 

 

 

 

 

 

 

 

Cost of revenue, subscription and support

$

11,946

 

 

$

8,637

 

 

$

42,881

 

 

$

34,215

 

Less: Stock-based compensation

412

 

 

140

 

 

1,554

 

 

700

 

Cost of revenue, subscription and support, non-GAAP

$

11,534

 

 

$

8,497

 

 

$

41,327

 

 

$

33,515

 

As percentage of revenue, non-GAAP

14.4

%

 

13.2

%

 

13.9

%

 

13.7

%

 

 

 

 

 

 

 

 

Cost of revenue, professional services

$

11,102

 

 

$

8,757

 

 

$

42,131

 

 

$

31,645

 

Less: Stock-based compensation

429

 

 

170

 

 

1,725

 

 

619

 

Cost of revenue, professional services, non-GAAP

$

10,673

 

 

$

8,587

 

 

$

40,406

 

 

$

31,026

 

As percentage of revenue, non-GAAP

13.3

%

 

13.3

%

 

13.6

%

 

12.7

%

 

 

 

 

 

 

 

 

Research and development

$

23,216

 

 

$

20,773

 

 

$

89,921

 

 

$

81,602

 

Less: Stock-based compensation

1,990

 

 

1,702

 

 

8,006

 

 

5,842

 

Research and development, non-GAAP

$

21,226

 

 

$

19,071

 

 

$

81,915

 

 

$

75,760

 

As percentage of revenue, non-GAAP

26.4

%

 

29.6

%

 

27.5

%

 

31.0

%

 

 

 

 

 

 

 

 

Sales and marketing

$

33,732

 

 

$

23,011

 

 

$

120,300

 

 

$

90,337

 

Less: Stock-based compensation

2,593

 

 

1,466

 

 

8,792

 

 

5,416

 

Sales and marketing, non-GAAP

$

31,139

 

 

$

21,545

 

 

$

111,508

 

 

$

84,921

 

As percentage of revenue, non-GAAP

38.8

%

 

33.4

%

 

37.4

%

 

34.8

%

 

 

 

 

 

 

 

 

General and administrative

$

14,754

 

 

$

11,047

 

 

$

48,380

 

 

$

56,333

 

Less: Stock-based compensation

4,431

 

 

4,044

 

 

15,707

 

 

14,643

 

Less: CEO separation expense(1)

 

 

 

 

 

 

9,527

 

General and administrative, non-GAAP

$

10,323

 

 

$

7,003

 

 

$

32,673

 

 

$

32,163

 

As percentage of revenue, non-GAAP

12.9

%

 

10.9

%

 

11.0

%

 

13.2

%

 

 

 

 

 

 

 

 

Loss from operations

$

(14,485)

 

 

$

(7,790)

 

 

$

(45,722)

 

 

$

(49,788)

 

Add back: Stock-based compensation

9,855

 

 

7,522

 

 

35,784

 

 

27,220

 

Add back: CEO separation expense(1)

 

 

 

 

 

 

9,527

 

Loss from operations, non-GAAP

$

(4,630)

 

 

$

(268)

 

 

$

(9,938)

 

 

$

(13,041)

 

As percentage of revenue, non-GAAP

(5.8)

%

 

(0.4)

%

 

(3.3)

%

 

(5.3)

%

 

 

 

 

 

 

 

 

Net loss

$

(16,298)

 

 

$

(7,721)

 

 

$

(48,134)

 

 

$

(50,071)

 

Add back: Stock-based compensation

9,855

 

 

7,522

 

 

35,784

 

 

27,220

 

Add back: Non-cash interest expense related to convertible senior notes

2,179

 

 

 

 

3,263

 

 

 

Add back: CEO separation expense(1)

 

 

 

 

 

 

9,527

 

Net loss, non-GAAP

$

(4,264)

 

 

$

(199)

 

 

$

(9,087)

 

 

$

(13,324)

 

As percentage of revenue, non-GAAP

(5.3)

%

 

(0.3)

%

 

(3.1)

%

 

(5.5)

%

 

 

 

 

 

 

 

 

Net loss per basic and diluted share:

$

(0.35)

 

 

$

(0.17)

 

 

$

(1.04)

 

 

$

(1.15)

 

Add back: Stock-based compensation

0.21

 

 

0.17

 

 

0.77

 

 

0.62

 

Add back: Non-cash interest expense related to convertible senior notes

0.05

 

 

 

 

0.07

 

 

 

Add back: CEO separation expense(1)

 

 

 

 

 

 

0.22

 

Net loss per basic and diluted share, non-GAAP

$

(0.09)

 

 

$

(0.00)

 

 

$

(0.20)

 

 

$

(0.31)

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic and diluted, non-GAAP

47,058,209

 

 

44,472,672

 

 

46,302,656

 

 

43,640,408

 

(1) CEO separation expense in the year ended December 31, 2018 includes stock-based compensation of $3.6 million related to the acceleration of eligible stock awards and separation payment expense of $5.9 million pursuant to the former CEO’s employment agreement. Included as separation payment expense are cash payments made in excess of the related bonus accrual recorded through the date of separation.

TABLE II
WORKIVA INC.
RECONCILIATION OF NON-GAAP GUIDANCE
(in thousands, except share and per share data)

 

Three months ending
March 31, 2020

 

Year ending
December 31, 2020

 

 

 

 

 

 

 

 

Loss from operations, GAAP range

$

(17,600)

 

-

$

(18,100)

 

 

$

(79,700)

 

-

$

(81,700)

 

Add back: Stock-based compensation

10,600

 

 

10,600

 

 

43,700

 

 

43,700

 

Loss from operations, non-GAAP range

$

(7,000)

 

-

$

(7,500)

 

 

$

(36,000)

 

-

$

(38,000)

 

 

 

 

 

 

 

 

 

Net loss per share, GAAP range

$

(0.39)

 

-

$

(0.40)

 

 

$

(1.72)

 

-

$

(1.76)

 

Add back: Stock-based compensation

0.22

 

 

0.22

 

 

0.89

 

 

0.89

 

Add back: Non-cash interest expense related to convertible senior notes

0.05

 

 

0.05

 

 

0.20

 

 

0.20

 

Net loss per share, non-GAAP range

$

(0.12)

 

-

$

(0.13)

 

 

$

(0.63)

 

-

$

(0.67)

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic and diluted

47,800,000

 

 

47,800,000

 

 

48,900,000

 

 

48,900,000

 

 

Contacts

Investor Contact:
Adam Terese
Workiva Inc.
investor@workiva.com
(515) 663-4493

Media Contact:
Kevin McCarthy
Workiva Inc.
press@workiva.com
(515) 663-4471

Contacts

Investor Contact:
Adam Terese
Workiva Inc.
investor@workiva.com
(515) 663-4493

Media Contact:
Kevin McCarthy
Workiva Inc.
press@workiva.com
(515) 663-4471