Workiva Inc. Announces Fourth Quarter and Full Year 2021 Financial Results

  • Increased Q4 2021 Subscription & Support Revenue by 28.8% over Q4 2020
  • Generated Total Q4 2021 Revenue of $120.8 Million, up 28.7% over Q4 2020
  • Full Year 2021 Total Revenue of $443.3 million, up 26.1% over 2020
  • Achieved 37.9% YOY Growth of Customers with Annual Contract Value Over $150K

AMES, Iowa--()--Workiva Inc. (NYSE:WK), the company that simplifies complex work, today announced financial results for its fourth quarter and full year ended December 31, 2021.

"The Workiva team once again delivered strong financial results. In both the fourth quarter and full-year, we beat the high end of our guidance in revenue and operating profit," said Marty Vanderploeg, Chief Executive Officer. "These results reflect our market leadership in transparent connected reporting, and the significant increases we're seeing in macro trends such as digital transformations, increased compliance and reporting requirements, and stakeholder demand for ESG data."

"We saw broad based demand across our solution portfolio in the fourth quarter which resulted in growth of 28.8% in subscription & support revenue, and 28.7% in total revenue," said Jill Klindt, Chief Financial Officer. "We had strong new logo growth with 169 net new logos added, and also delivered a 32% increase in the number of customers with contract values over $100k and achieved our highest revenue retention rate of 97%."

"In 2022, we are strategically investing in our people, technology, partners, and go-to-market strategy in order to capture the significant ESG market opportunity we see ahead of us," added Vanderploeg. "We believe the investments we are making in ESG, along with our other fit-for-purpose solutions, will position us to deliver durable low-to-mid-20% revenue growth."

Fourth Quarter 2021 Financial Highlights

  • Revenue: Total revenue for the fourth quarter of 2021 reached $120.8 million, an increase of 28.7% from $93.8 million in the fourth quarter of 2020. Subscription and support revenue contributed $104.3 million, up 28.8% versus the fourth quarter of 2020. Professional services revenue was $16.5 million, an increase of 28.2% compared to the same quarter in the prior year.
  • Gross Profit: GAAP gross profit for the fourth quarter of 2021 was $91.6 million compared with $70.2 million in the same quarter of 2020. GAAP gross margin was 75.9% versus 74.8% in the fourth quarter of 2020. Non-GAAP gross profit for the fourth quarter of 2021 was $93.2 million, an increase of 31.3% compared with the prior year's fourth quarter, and non-GAAP gross margin was 77.2% compared to 75.6% in the fourth quarter of 2020.
  • Results from Operations: GAAP loss from operations for the fourth quarter of 2021 was $11.5 million compared with a loss of $5.1 million in the prior year's fourth quarter. Non-GAAP income from operations was $2.2 million, compared with non-GAAP income from operations of $5.2 million in the fourth quarter of 2020.
  • GAAP Net Loss: GAAP net loss for the fourth quarter of 2021 was $14.3 million compared with a net loss of $8.0 million for the prior year's fourth quarter. GAAP net loss per basic and diluted share was $0.28 compared with a net loss per basic and diluted share of $0.16 in the fourth quarter of 2020.
  • Non-GAAP Net Income: Non-GAAP net income for the fourth quarter of 2021 was $1.7 million compared with net income of $4.6 million in the prior year's fourth quarter. Non-GAAP net income per basic share and diluted share was $0.03, compared with net income per basic and diluted share of $0.09 in the fourth quarter of 2020.
  • Liquidity: As of December 31, 2021, Workiva had cash, cash equivalents and marketable securities totaling $530.4 million, compared with $530.0 million as of December 31, 2020. Workiva had $345.0 million aggregate principal amount of 1.125% convertible senior notes due in 2026 and $16.7 million of finance lease obligations outstanding as of December 31, 2021.

Key Metrics and Recent Business Highlights

  • Customers: Workiva had 4,315 customers as of December 31, 2021, a net increase of 592 customers from December 31, 2020.
  • Revenue Retention Rate: As of December 31, 2021, Workiva's revenue retention rate (excluding add-on revenue) was 97.0%, and the revenue retention rate including add-on revenue was 110.0%. Add-on revenue includes changes in both solutions and pricing for existing customers.
  • Large Contracts: As of December 31, 2021, Workiva had 1,121 customers with an annual contract value ("ACV") of more than $100,000, up 32% from 847 customers at December 31, 2020. Workiva had 578 customers with an ACV of more than $150,000, up 38% from 419 customers in the fourth quarter of 2020. Workiva had 183 customers with an ACV of more than $300,000, up 54% from 119 customers in the fourth quarter of 2020.

Full Year 2021 Financial Highlights

  • Revenue: Total revenue for the full year 2021 reached $443.3 million, an increase of 26.1% from $351.6 million in 2020. Subscription and support revenue contributed $379.3 million, up 28.2% compared to 2020. Professional services revenue was $63.9 million, an increase of 14.8% compared to the prior year.
  • Gross Profit: GAAP gross profit for 2021 was $339.5 million compared with $261.4 million in 2020. GAAP gross margin was 76.6% versus 74.4% in the prior year. Non-GAAP gross profit for 2021 was $344.0 million, an increase of 30.0% compared 2020, and non-GAAP gross margin was 77.6% compared to 75.2%.
  • Results from Operations: GAAP loss from operations 2021 was $29.4 million compared with a loss of $37.8 million in the prior year. Non-GAAP income from operations was $20.0 million, compared with non-GAAP income from operations of $8.0 million in 2020.
  • GAAP Net Loss: GAAP net loss for 2021 was $37.7 million compared with a net loss of $48.4 million in the prior year. GAAP net loss per basic and diluted share was $0.74 compared with a net loss per basic and diluted share of $1.00 in 2020.
  • Non-GAAP Net Income: Non-GAAP net income for 2021 was $20.8 million compared with net income of $6.3 million in the prior year. Non-GAAP net income per basic share and diluted share was $0.41 and $0.37, respectively, compared with net income per basic and diluted share of $0.13 and $0.12, respectively, in 2020.
  • Cash Flow: Net cash provided by operating activities was $49.8 million in 2021, compared to cash provided by operating activities of $33.2 million in 2020.

Financial Outlook

As of February 22, 2022, Workiva is providing guidance as follows:

First Quarter 2022 Guidance:

  • Total revenue is expected to be in the range of $127.0 million to $128.0 million.
  • GAAP loss from operations is expected to be in the range of $22.9 million to $21.9 million.
  • Non-GAAP loss from operations is expected to be in the range of $7.0 million to $6.0 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $0.46 to $0.44.
  • Non-GAAP net loss per basic share is expected to be in the range of $0.16 to $0.14.
  • Net loss per basic share is based on 52.6 million weighted-average shares outstanding.

Full Year 2022 Guidance:

  • Total revenue is expected to be in the range of $532.0 million to $534.0 million.
  • GAAP loss from operations is expected to be in the range of $104.9 million to $102.9 million.
  • Non-GAAP loss from operations is expected to be in the range of $37.0 million to $35.0 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $2.08 to $2.04.
  • Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.80 to $0.76.
  • Net loss per basic and diluted share is based on 53.0 million weighted-average shares outstanding.

Workiva has factored into its guidance the expected impacts of COVID-19 on its business and results of operations based on currently available information. Significant variation from these assumptions could cause the company to change its guidance, and it undertakes no obligation to update its assumptions, expectations or guidance. These statements are forward-looking, and actual results may differ materially, as further discussed below under the heading "Safe Harbor Statement".

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 2021, in addition to discussing the Company’s outlook for the first quarter and full year 2022. To access this call, dial 888-330-2469 (U.S. domestic) or 240-789-2740 (international). The conference ID is 8736384. 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 March 1, 2022, at 800-770-2030 (U.S. domestic) or 647-362-9199 (international). The replay pass code is 8736384. 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 Inc. (NYSE: WK) simplifies complex work for thousands of organizations worldwide. Customers trust Workiva’s open, intelligent and intuitive platform to connect data, documents and teams. The results: more efficiency, greater transparency and less risk. Learn more at workiva.com.

Read the Workiva blog: www.workiva.com/blog

Follow Workiva on LinkedIn: www.linkedin.com/company/workiva

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Follow Workiva on Twitter: www.twitter.com/workiva

Non-GAAP Financial Measures

The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation and non-cash interest 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 income (loss) from operations, non-GAAP net income (loss) and non-GAAP net income (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 income (loss) from operations is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets from loss from operations. Non-GAAP net income (loss) is calculated by excluding stock-based compensation expense, net of tax, amortization expense for acquisition-related intangible assets, and non-cash interest expense related to our convertible senior notes from net loss. Non-GAAP net income (loss) per share is calculated by dividing non-GAAP net income (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. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition and thus we do not believe it is reflective of ongoing operations. 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. 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,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

(unaudited)

 

 

 

 

Revenue

 

 

 

 

 

 

 

Subscription and support

$

104,287

 

$

80,970

 

$

379,340

 

$

295,877

Professional services

 

16,496

 

 

12,864

 

 

63,945

 

 

55,717

Total revenue

 

120,783

 

 

93,834

 

 

443,285

 

 

351,594

Cost of revenue

 

 

 

 

 

 

 

Subscription and support (1)

 

17,645

 

 

13,239

 

 

60,551

 

 

49,503

Professional services (1)

 

11,516

 

 

10,412

 

 

43,282

 

 

40,674

Total cost of revenue

 

29,161

 

 

23,651

 

 

103,833

 

 

90,177

Gross profit

 

91,622

 

 

70,183

 

 

339,452

 

 

261,417

Operating expenses

 

 

 

 

 

 

 

Research and development (1)

 

31,430

 

 

24,386

 

 

115,735

 

 

94,844

Sales and marketing (1)

 

50,199

 

 

37,813

 

 

178,785

 

 

144,687

General and administrative (1)

 

21,492

 

 

13,124

 

 

74,287

 

 

59,688

Total operating expenses

 

103,121

 

 

75,323

 

 

368,807

 

 

299,219

Loss from operations

 

(11,499)

 

 

(5,140)

 

 

(29,355)

 

 

(37,802)

Interest income

 

207

 

 

450

 

 

1,041

 

 

3,282

Interest expense

 

(3,520)

 

 

(3,497)

 

 

(14,015)

 

 

(13,964)

Other (expense) income, net

 

(36)

 

 

(468)

 

 

3,229

 

 

(205)

Loss before benefit for income taxes

 

(14,848)

 

 

(8,655)

 

 

(39,100)

 

 

(48,689)

Benefit for income taxes

 

(524)

 

 

(642)

 

 

(1,370)

 

 

(291)

Net loss

$

(14,324)

 

$

(8,013)

 

$

(37,730)

 

$

(48,398)

Net loss per common share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.28)

 

$

(0.16)

 

$

(0.74)

 

$

(1.00)

Weighted-average common shares outstanding - basic and diluted

 

51,734,522

 

 

49,222,465

 

 

51,126,510

 

 

48,448,166

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

 

Three months ended December 31,

 

Year ended December 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

(unaudited)

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

Subscription and support

$

1,044

 

$

416

 

$

2,868

 

$

1,709

Professional services

 

546

 

 

372

 

 

1,729

 

 

1,434

Operating expenses

 

 

 

 

 

 

 

Research and development

 

2,395

 

 

2,310

 

 

9,590

 

 

8,100

Sales and marketing

 

3,420

 

 

2,695

 

 

13,901

 

 

11,062

General and administrative

 

5,866

 

 

4,547

 

 

20,545

 

 

23,466

WORKIVA INC.

CONSOLIDATED BALANCE SHEETS
(in thousands)

 

As of December 31,

 

 

2021

 

 

2020

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

300,386

 

$

322,831

Marketable securities

 

230,060

 

 

207,207

Accounts receivable, net

 

76,848

 

 

68,922

Deferred costs

 

31,152

 

 

21,923

Other receivables

 

3,538

 

 

3,155

Prepaid expenses and other

 

15,108

 

 

9,047

Total current assets

 

657,092

 

 

633,085

Property and equipment, net

 

28,821

 

 

29,365

Operating lease right-of-use assets

 

17,760

 

 

15,844

Deferred costs, non-current

 

33,091

 

 

23,421

Goodwill

 

34,556

 

 

Intangible assets, net

 

10,434

 

 

1,583

Other assets

 

5,005

 

 

3,708

Total assets

$

786,759

 

$

707,006

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

4,114

 

$

2,843

Accrued expenses and other current liabilities

 

84,126

 

 

68,256

Deferred revenue

 

258,023

 

 

208,990

Convertible senior notes, current

 

298,661

 

 

Finance lease obligations

 

1,575

 

 

1,705

Total current liabilities

 

646,499

 

 

281,794

Convertible senior notes, non-current

 

 

 

289,490

Deferred revenue, non-current

 

34,181

 

 

35,894

Other long-term liabilities

 

1,605

 

 

1,680

Operating lease liabilities, non-current

 

16,408

 

 

17,209

Finance lease obligations, non-current

 

15,087

 

 

16,662

Total liabilities

 

713,780

 

 

642,729

Stockholders’ equity

 

 

 

Common stock

 

51

 

 

49

Additional paid-in-capital

 

525,646

 

 

478,698

Accumulated deficit

 

(452,430)

 

 

(414,700)

Accumulated other comprehensive (loss) income

 

(288)

 

 

230

Total stockholders’ equity

 

72,979

 

 

64,277

Total liabilities and stockholders’ equity

$

786,759

 

$

707,006

WORKIVA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 

Three months ended December 31,

 

Year ended December 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

(unaudited)

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(14,324)

 

$

(8,013)

 

$

(37,730)

 

$

(48,398)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

1,664

 

 

1,101

 

 

5,244

 

 

4,296

Stock-based compensation expense

 

13,271

 

 

10,340

 

 

48,633

 

 

45,771

Provision for (recovery of) doubtful accounts

 

37

 

 

32

 

 

(125)

 

 

(159)

Amortization of premiums and discounts on marketable securities, net

 

825

 

 

349

 

 

3,024

 

 

668

Gain on settlement of equity securities

 

 

 

 

 

(3,698)

 

 

Amortization of debt discount and issuance costs

 

2,320

 

 

2,248

 

 

9,171

 

 

8,889

Deferred income tax

 

(1,059)

 

 

68

 

 

(1,973)

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(12,916)

 

 

(12,833)

 

 

(7,683)

 

 

(8,028)

Deferred costs

 

(7,103)

 

 

(9,572)

 

 

(19,207)

 

 

(15,953)

Operating lease right-of-use asset

 

1,291

 

 

914

 

 

4,197

 

 

3,906

Other receivables

 

(187)

 

 

(709)

 

 

(391)

 

 

(680)

Prepaid expenses

 

(2,473)

 

 

564

 

 

(6,522)

 

 

(2,492)

Other assets

 

(25)

 

 

385

 

 

(1,222)

 

 

(215)

Accounts payable

 

(242)

 

 

(851)

 

 

972

 

 

(4,106)

Deferred revenue

 

25,391

 

 

26,165

 

 

47,419

 

 

37,479

Operating lease liability

 

(1,544)

 

 

(1,087)

 

 

(4,934)

 

 

(4,525)

Accrued expenses and other liabilities

 

4,342

 

 

4,252

 

 

14,669

 

 

16,790

Net cash provided by operating activities

 

9,268

 

 

13,353

 

 

49,844

 

 

33,243

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

 

(1,103)

 

 

(110)

 

 

(3,534)

 

 

(1,873)

Purchase of marketable securities

 

(26,985)

 

 

(130,657)

 

 

(170,070)

 

 

(175,926)

Sale of marketable securities

 

 

 

 

 

250

 

 

11,423

Maturities of marketable securities

 

26,788

 

 

20,585

 

 

143,159

 

 

62,922

Acquisitions, net of cash acquired

 

(2,400)

 

 

 

 

(37,467)

 

 

Purchase of intangible assets

 

(32)

 

 

(43)

 

 

(219)

 

 

(296)

Other investments

 

 

 

 

 

(750)

 

 

Net cash used in investing activities

 

(3,732)

 

 

(110,225)

 

 

(68,631)

 

 

(103,750)

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from option exercises

 

7,808

 

 

4,936

 

 

16,600

 

 

19,189

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

 

(3,458)

 

 

(11,546)

 

 

(27,144)

 

 

(13,657)

Proceeds from shares issued in connection with employee stock purchase plan

 

 

 

 

 

8,861

 

 

7,227

Principal payments on finance lease obligations

 

(434)

 

 

(429)

 

 

(1,705)

 

 

(1,641)

Net cash provided by (used in) financing activities

 

3,916

 

 

(7,039)

 

 

(3,388)

 

 

11,118

Effect of foreign exchange rates on cash

 

(191)

 

 

610

 

 

(270)

 

 

478

Net increase (decrease) in cash and cash equivalents

 

9,261

 

 

(103,301)

 

 

(22,445)

 

 

(58,911)

Cash and cash equivalents at beginning of period

 

291,125

 

 

426,132

 

 

322,831

 

 

381,742

Cash and cash equivalents at end of period

$

300,386

 

$

322,831

 

$

300,386

 

$

322,831

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,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

Gross profit, subscription and support

$

86,642

 

$

67,731

 

$

318,789

 

$

246,374

Add back: Stock-based compensation

 

1,044

 

 

416

 

 

2,868

 

 

1,709

Gross profit, subscription and support, non-GAAP

$

87,686

 

$

68,147

 

$

321,657

 

$

248,083

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

 

84.1 %

 

 

84.2 %

 

 

84.8 %

 

 

83.8 %

 

 

 

 

 

 

 

 

Gross profit, professional services

$

4,980

 

$

2,452

 

$

20,663

 

$

15,043

Add back: Stock-based compensation

 

546

 

 

372

 

 

1,729

 

 

1,434

Gross profit, professional services, non-GAAP

$

5,526

 

$

2,824

 

$

22,392

 

$

16,477

As a percentage of professional services revenue, non-GAAP

 

33.5 %

 

 

22.0 %

 

 

35.0 %

 

 

29.6 %

 

 

 

 

 

 

 

 

Gross profit

$

91,622

 

$

70,183

 

$

339,452

 

$

261,417

Add back: Stock-based compensation

 

1,590

 

 

788

 

 

4,597

 

 

3,143

Gross profit, non-GAAP

$

93,212

 

$

70,971

 

$

344,049

 

$

264,560

As percentage of revenue, non-GAAP

 

77.2 %

 

 

75.6 %

 

 

77.6 %

 

 

75.2 %

 

 

 

 

 

 

 

 

Cost of revenue, subscription and support

$

17,645

 

$

13,239

 

$

60,551

 

$

49,503

Less: Stock-based compensation

 

1,044

 

 

416

 

 

2,868

 

 

1,709

Cost of revenue, subscription and support, non-GAAP

$

16,601

 

$

12,823

 

$

57,683

 

$

47,794

As percentage of revenue, non-GAAP

 

13.7 %

 

 

13.7 %

 

 

13.0 %

 

 

13.6 %

 

 

 

 

 

 

 

 

Cost of revenue, professional services

$

11,516

 

$

10,412

 

$

43,282

 

$

40,674

Less: Stock-based compensation

 

546

 

 

372

 

 

1,729

 

 

1,434

Cost of revenue, professional services, non-GAAP

$

10,970

 

$

10,040

 

$

41,553

 

$

39,240

As percentage of revenue, non-GAAP

 

9.1 %

 

 

10.7 %

 

 

9.4 %

 

 

11.2 %

 

 

 

 

 

 

 

 

Research and development

$

31,430

 

$

24,386

 

$

115,735

 

$

94,844

Less: Stock-based compensation

 

2,395

 

 

2,310

 

 

9,590

 

 

8,100

Less: Amortization of acquisition-related intangibles

 

426

 

 

 

 

701

 

 

Research and development, non-GAAP

$

28,609

 

$

22,076

 

$

105,444

 

$

86,744

As percentage of revenue, non-GAAP

 

23.7 %

 

 

23.5 %

 

 

23.8 %

 

 

24.7 %

 

 

 

 

 

 

 

 

Sales and marketing

$

50,199

 

$

37,813

 

$

178,785

 

$

144,687

Less: Stock-based compensation

 

3,420

 

 

2,695

 

 

13,901

 

 

11,062

Less: Amortization of acquisition-related intangibles

 

22

 

 

 

 

35

 

 

Sales and marketing, non-GAAP

$

46,757

 

$

35,118

 

$

164,849

 

$

133,625

As percentage of revenue, non-GAAP

 

38.7 %

 

 

37.4 %

 

 

37.2 %

 

 

38.0 %

 

 

 

 

 

 

 

 

General and administrative

$

21,492

 

$

13,124

 

$

74,287

 

$

59,688

Less: Stock-based compensation

 

5,866

 

 

4,547

 

 

20,545

 

 

23,466

General and administrative, non-GAAP

$

15,626

 

$

8,577

 

$

53,742

 

$

36,222

As percentage of revenue, non-GAAP

 

12.9 %

 

 

9.1 %

 

 

12.1 %

 

 

10.3 %

 

 

 

 

 

 

 

 

Loss from operations

$

(11,499)

 

$

(5,140)

 

$

(29,355)

 

$

(37,802)

Add back: Stock-based compensation

 

13,271

 

 

10,340

 

 

48,633

 

 

45,771

Add back: Amortization of acquisition-related intangibles

 

448

 

 

 

 

736

 

 

Income from operations, non-GAAP

$

2,220

 

$

5,200

 

$

20,014

 

$

7,969

As percentage of revenue, non-GAAP

 

1.8 %

 

 

5.5 %

 

 

4.5 %

 

 

2.3 %

 

 

 

 

 

 

 

 

Net loss

$

(14,324)

 

$

(8,013)

 

$

(37,730)

 

$

(48,398)

Add back: Stock-based compensation

 

13,271

 

 

10,340

 

 

48,633

 

 

45,771

Add back: Amortization of acquisition-related intangibles

 

448

 

 

 

 

736

 

 

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

 

2,320

 

 

2,248

 

 

9,171

 

 

8,889

Net income, non-GAAP

$

1,715

 

$

4,575

 

$

20,810

 

$

6,262

As percentage of revenue, non-GAAP

 

1.4 %

 

 

4.9 %

 

 

4.7 %

 

 

1.8 %

 

 

 

 

 

 

 

 

Net loss per basic and diluted share:

$

(0.28)

 

$

(0.16)

 

$

(0.74)

 

$

(1.00)

Add back: Stock-based compensation

 

0.26

 

 

0.20

 

 

0.96

 

 

0.95

Add back: Amortization of acquisition-related intangibles

 

0.01

 

 

 

 

0.01

 

 

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

 

0.04

 

 

0.05

 

 

0.18

 

 

0.18

Net income per basic share, non-GAAP

$

0.03

 

$

0.09

 

$

0.41

 

$

0.13

Net income per diluted share, non-GAAP

$

0.03

 

$

0.09

 

$

0.37

 

$

0.12

 

 

 

 

 

 

 

 

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

 

51,734,522

 

 

49,222,465

 

 

51,126,510

 

 

48,448,166

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

 

56,697,006

 

 

53,776,276

 

 

55,998,736

 

 

52,864,771

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

 

Three months ending March 31, 2022

 

Year ending December 31, 2022

 

 

 

 

 

 

 

 

Loss from operations, GAAP range

$

(22,900)

-

$

(21,900)

 

$

(104,900)

-

$

(102,900)

Add back: Stock-based compensation

 

15,200

 

 

15,200

 

 

65,100

 

 

65,100

Add back: Amortization of acquisition-related intangibles

 

700

 

 

700

 

 

2,800

 

 

2,800

Net loss from operations, non-GAAP range

$

(7,000)

-

$

(6,000)

 

$

(37,000)

-

$

(35,000)

 

 

 

 

 

 

 

 

Net loss per share, GAAP range

$

(0.46)

-

$

(0.44)

 

$

(2.08)

-

$

(2.04)

Add back: Stock-based compensation

 

0.29

 

 

0.29

 

 

1.23

 

 

1.23

Add back: Amortization of acquisition-related intangibles

 

0.01

 

 

0.01

 

 

0.05

 

 

0.05

Net loss per share, non-GAAP range(1)

$

(0.16)

-

$

(0.14)

 

$

(0.80)

-

$

(0.76)

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic

 

52,600,000

 

 

52,600,000

 

 

53,000,000

 

 

53,000,000

(1) We adopted Accounting Standard Update 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, on January 1, 2022. Prior to the adoption, we were required to separately account for liability (debt) and equity (conversion option) components of the convertible senior notes that were issued in August 2019. This resulted 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 excluded this non-cash interest expense attributable to the debt discount in calculating our non-GAAP measures because this interest expense does not represent a cash outflow and is not indicative of our ongoing operational performance. Upon adoption, we recombined the liability and equity components of our outstanding convertible senior notes and the instrument is now accounted for as a single liability. Under this new guidance, we will no longer incur interest expense related to the amortization of the debt discount associated with the conversion option and therefore no longer consider this to be a non-GAAP reconciling item. Accordingly, our guidance above for 2022 reflects the adoption of this new standard.

Contacts

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

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

Contacts

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

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