NYSE$WK

Workiva Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Workiva's Q2 2022 financial performance was strong, with revenue exceeding expectations and key metrics showing significant growth.

Workiva announced strong Q2 2022 financial results, with total revenue reaching $131.5 million, a 24.6% increase year-over-year. The company exceeded market expectations for subscription and support revenue and added 123 net new logos for the Workiva platform. Workiva is focused on balancing growth with operating leverage to return to quarterly operating profit on a Non-GAAP basis in the latter half of 2023.

  • Total revenue for Q2 2022 reached $131.5 million, up 24.6% year-over-year.
  • Subscription and support revenue increased by 24.3% compared to Q2 2021.
  • The company added 123 net new logos for the Workiva platform.
  • Revenue retention rate was 97.9% (excluding add-on revenue) and 108.0% (including add-on revenue).

Headline financials

Total Revenue

$132M

Previous: $106M+24.6%
EPS (adj)

-$0.17

Previous: $0.07-342.9%
Number of customers

5.4K

Previous: 3.9K+36.3%
Customers with ACV > $100K

1.2K

Previous: 952+24.6%
Customers with ACV > $300K

194

No prior period
Capital Expenditures

-$671K

Previous: -$811K+17.3%
Free Cash Flow

-$29.5M

Previous: -$10.3M-186.0%
Net Income

-$28.9M

Previous: -$9.51M-203.4%
Operating Income

-$28.2M

Previous: -$5.74M-390.9%
Gross Profit

$99.3M

Previous: $81M+22.6%
Cash & Equivalents

$226M

Previous: $322M-29.8%
Total Assets

$777M

Previous: $739M+5.1%
Stock-Based Comp

$18.4M

Previous: $11.1M+66.9%

Revenue & EPS history

Workiva · Revenue · Quarterly

$132M

Q2 2022+24.6%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Workiva · $132M total across 2 segments · Q2 2022

  • Subscription and support
    $113M+24.3%
  • Professional services
    $18.2M+26.5%

Forward guidance

Workiva provided updated guidance for the third quarter and full year 2022.

Tailwinds

  • Total revenue is expected to be in the range of $132.0 million to $133.0 million for Q3 2022.
  • Total revenue is expected to be in the range of $534.0 million to $536.0 million for full year 2022.
  • Maintaining investment in platform.
  • Maintaining investment in purpose-built solutions.
  • Maintaining investment in talent.

Headwinds

  • GAAP loss from operations is expected to be in the range of $33.5 million to $32.5 million for Q3 2022.
  • Non-GAAP loss from operations is expected to be in the range of $13.0 million to $12.0 million for Q3 2022.
  • GAAP net loss per basic share is expected to be in the range of $0.66 to $0.64 for Q3 2022.
  • Non-GAAP net loss per basic share is expected to be in the range of $0.27 to $0.25 for Q3 2022.
  • Slowing the hiring plans for parts of our core business for the remainder of 2022.

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 2022

Historical avgQ2 2022

+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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