NYSE$WK

Workiva Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported financial results that exceeded guidance for revenue and operating results.

Workiva announced its Q2 2020 financial results, with total revenue reaching $83.9 million, a 14.1% increase from Q2 2019. Subscription and support revenue grew by 16.9% compared to the same quarter last year. The company reinstated its full year 2020 guidance due to improved visibility on closing new business.

  • Total revenue for the second quarter of 2020 reached $83.9 million, an increase of 14.1% from the second quarter of 2019.
  • Subscription and support revenue contributed $70.7 million, up 16.9% versus the second quarter of 2019.
  • Workiva had 3,512 customers as of June 30, 2020, a net increase of 91 customers from June 30, 2019.
  • As of June 30, 2020, Workiva had 716 customers with an annual contract value (ACV) of more than $100,000, up 28% from June 30, 2019.

Headline financials

Total Revenue

$83.9M

Previous: $73.5M+14.1%
EPS (adj)

-$0.06

Previous: -$0.18+66.7%
Number of customers

3.5K

Previous: 3.4K+2.7%
Customers with ACV > $100K

716

Previous: 558+28.3%
Capital Expenditures

-$696K

Previous: -$454K-53.3%
Free Cash Flow

-$20.5M

Previous: -$8.78M-133.1%
Net Income

-$19.8M

Previous: -$8.32M-137.5%
Operating Income

-$16.8M

Previous: -$8.43M-99.3%
Gross Profit

$61.6M

Previous: $52.8M+16.7%
Cash & Equivalents

$402M

Previous: $94.7M+324.6%
Total Assets

$655M

Previous: $280M+133.8%
Stock-Based Comp

$14.9M

No prior period

Revenue & EPS history

Workiva · Revenue · Quarterly

$83.9M

Q2 2020+14.1%vs Q2 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

Workiva · $83.9M total across 2 segments · Q2 2020

  • Subscription and support
    $70.7M+16.9%
  • Professional services
    $13.2M+1.2%

Forward guidance

Workiva is providing guidance for Q3 2020 and full year 2020, factoring in the expected impacts of COVID-19 on its business.

Tailwinds

  • Total revenue is expected to be in the range of $84.3 million to $84.8 million for Q3 2020.
  • GAAP loss from operations is expected to be in the range of $16.4 million to $16.9 million for Q3 2020.
  • Non-GAAP loss from operations is expected to be in the range of $5.2 million to $5.7 million for Q3 2020.
  • Total revenue is expected to be in the range of $341.5 million to $342.5 million for full year 2020.
  • GAAP loss from operations is expected to be in the range of $56.5 million to $58.0 million for full year 2020.

Headwinds

  • GAAP net loss per basic and diluted share is expected to be in the range of $0.39 to $0.40 for Q3 2020.
  • Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.12 to $0.13 for Q3 2020.
  • GAAP net loss per basic and diluted share is expected to be in the range of $1.37 to $1.40 for full year 2020.
  • Non-GAAP loss from operation is expected to be in the range of $10.0 million to $11.5 million for full year 2020.
  • Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.23 to $0.26 for full year 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.6%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+3.1%

Avg return

30 days after

56%

25 / 45 earnings

Positive

+21.1%

Q3 2020

Best reaction

-15.3%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%-16.2%-11.9%
Q4 2025+3.6%-0.3%+2.5%
Q3 2025+6.4%+13.6%+12.5%
Q1 2025-9.7%-8.9%-9.5%
Q4 2024+7.0%+3.2%-5.7%
Q3 2024+10.9%+14.4%+24.7%
Q2 2024-2.1%-3.3%+6.0%
Q1 2024+1.7%+2.2%-4.1%
Q4 2023-12.6%-6.7%-9.7%
Q3 2023-6.9%-4.1%+2.5%
Q2 2023+5.4%+4.8%+8.3%
Q1 2023-6.7%-4.9%+3.9%
Q4 2022-0.7%-0.9%+10.4%
Q3 2022-6.9%-7.9%+13.0%
Q2 2022+5.2%+4.1%-2.4%
Q1 2022-9.2%-20.0%-21.5%
Q4 2021-9.8%-2.1%+7.7%
Q3 2021+8.7%+9.9%-11.4%
Q2 2021+7.5%+3.2%+12.6%
Q1 2021-0.5%-0.7%-0.3%
Q4 2020+3.0%-0.7%-13.2%
Q3 2020+21.1%+19.8%+35.5%
Q2 2020+0.6%-2.6%-2.6%
Q1 2020-4.0%+1.6%+19.2%
Q4 2019-3.4%-7.9%-39.9%
Q3 2019-6.6%+0.2%+6.0%
Q2 2019+11.2%+12.6%-16.3%
Q1 2019-0.6%-0.1%+4.7%
Q4 2018+9.3%+10.7%+7.7%
Q3 2018+16.4%+3.1%-0.1%
Q2 2018+17.1%+18.7%+50.8%
Q1 2018+15.0%+20.1%+17.2%
Q4 2017-15.3%-12.6%-10.9%
Q3 2017+0.0%-2.2%-6.3%
Q2 2017+4.4%+1.0%+3.4%
Q1 2017+7.8%+6.6%+12.6%
Q4 2016+7.8%+10.7%+11.9%
Q3 2016-10.3%-11.9%-17.0%
Q2 2016+7.3%+14.7%+30.1%
Q1 2016-4.4%
Q4 2015-2.1%
Q3 2015+7.5%
Q2 2015+2.1%
Q1 2015+0.1%
Q4 2014-4.8%
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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