NYSE$WK

Workiva Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Workiva's Q2 2023 financial results were announced, showcasing revenue growth and increased customer contracts.

Workiva reported a solid second quarter with total revenue reaching $155.0 million, an 18% increase year-over-year. Subscription and support revenue grew by 21% to $136.8 million. The company saw growth in large contract customers, with contracts valued over $100K, $150K, and $300K increasing by 24%, 28%, and 40%, respectively.

  • Total revenue for Q2 2023 reached $155.0 million, up 18% compared to Q2 2022.
  • Subscription and support revenue increased by 21% to $136.8 million compared to the same quarter last year.
  • The number of customers with an annual contract value (ACV) over $100K increased by 24% year-over-year.
  • The number of customers with an ACV over $300K increased by 40% year-over-year.

Headline financials

Total Revenue

$155M

Previous: $132M+17.8%
EPS (adj)

$0.02

Previous: -$0.17+111.8%
Number of customers

5.9K

Previous: 5.4K+8.9%
Customers with ACV > $100K

1.5K

Previous: 1.2K+23.9%
Customers with ACV > $300K

272

Previous: 194+40.2%
Capital Expenditures

-$639K

Previous: -$671K+4.8%
Free Cash Flow

-$21.5M

Previous: -$29.5M+27.0%
Net Income

-$20.9M

Previous: -$28.9M+27.5%
Operating Income

-$22.7M

Previous: -$28.2M+19.5%
Gross Profit

$116M

Previous: $99.3M+16.3%
Cash & Equivalents

$199M

Previous: $226M-12.1%
Total Assets

$831M

Previous: $777M+7.0%
Stock-Based Comp

$20.6M

Previous: $18.4M+11.7%

Revenue & EPS history

Workiva · Revenue · Quarterly

$155M

Q2 2023+17.8%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Workiva · $155M total across 2 segments · Q2 2023

  • Subscription and support
    $137M+20.6%
  • Professional services
    $18.3M+0.3%

Forward guidance

Workiva is providing the following guidance as of August 3, 2023: For the third quarter of 2023, total revenue is expected to be in the range of $155.0 million to $156.0 million. For the full year 2023, total revenue is expected to be in the range of $626.0 million to $628.0 million.

Tailwinds

  • Total revenue is expected to be in the range of $155.0 million to $156.0 million for Q3 2023.
  • GAAP loss from operations is expected to be in the range of $24.0 million to $23.0 million for Q3 2023.
  • Non-GAAP loss from operations is expected to be in the range of $1.0 million to break-even for Q3 2023.
  • GAAP net loss per basic and diluted share is expected to be in the range of $0.40 to $0.38 for Q3 2023.
  • Non-GAAP net income per basic and diluted share is expected to be in the range of $0.03 to $0.05 for Q3 2023.

Headwinds

  • GAAP loss from operations is expected to be in the range of $24.0 million to $23.0 million for Q3 2023.
  • Non-GAAP loss from operations is expected to be in the range of $1.0 million to break-even for Q3 2023.
  • GAAP net loss per basic and diluted share is expected to be in the range of $0.40 to $0.38 for Q3 2023.
  • Total revenue is expected to be in the range of $626.0 million to $628.0 million for FY 2023.
  • GAAP loss from operations is expected to be in the range of $109.0 million to $107.0 million for FY 2023.

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 2023

Historical avgQ2 2023

+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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