NYSE$WK

Workiva Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Workiva's Q3 2023 earnings were announced, showcasing revenue growth and improved profitability.

Workiva reported a solid third quarter with a 19% increase in total revenue, driven by a 21% rise in subscription and support revenue. The company's focus on growth and productivity led to improved operating leverage and a commitment to enhanced operating margins and non-GAAP profitability for 2023 and 2024.

  • Subscription and support revenue increased by 21% compared to Q3 2022.
  • Total revenue reached $158.2 million, a 19% increase year-over-year.
  • The number of customers with annual contract values over $300,000 grew by 38% year-over-year.
  • Subscription revenue retention rate, including add-ons, improved to 112% compared to 107% in Q3 2022.

Headline financials

Total Revenue

$158M

Previous: $133M+19.1%
EPS (adj)

-$0.65

Previous: -$0.15-333.3%
Number of customers

5.9K

Previous: 5.5K+7.3%
Customers with ACV > $100K

1.6K

Previous: 1.3K+24.2%
Customers with ACV > $300K

296

Previous: 214+38.3%
Capital Expenditures

-$895K

Previous: -$1.02M+12.5%
Free Cash Flow

-$57.2M

Previous: -$30.7M-86.1%
Net Income

-$56.3M

Previous: -$29.7M-89.5%
Operating Income

-$15.5M

Previous: -$30.1M+48.5%
Gross Profit

$120M

Previous: $100M+19.3%
Cash & Equivalents

$405M

Previous: $229M+76.4%
Total Assets

$1.15B

Previous: $777M+48.0%
R&D Expense

$41.7M

No prior period
Stock-Based Comp

$19.4M

Previous: $20.3M-4.5%

Revenue & EPS history

Workiva · Revenue · Quarterly

$158M

Q3 2023+19.1%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Workiva · $158M total across 2 segments · Q3 2023

  • Subscription and support
    $143M+20.9%
  • Professional services
    $14.8M+3.2%

Forward guidance

Workiva provided financial guidance for the fourth quarter and full year 2023.

Tailwinds

  • Total revenue is expected to be in the range of $164 million to $165 million for Q4 2023.
  • Non-GAAP income from operations is expected to be in the range of $6 million to $7 million for Q4 2023.
  • Non-GAAP net income per basic share is expected to be in the range of $0.21 to $0.23 for Q4 2023.
  • Total revenue is expected to be in the range of $627 million to $628 million for the full year 2023.
  • Non-GAAP income from operations is expected to be in the range of $3 million to $4 million for the full year 2023.

Headwinds

  • GAAP loss from operations is expected to be in the range of $17 million to $16 million for Q4 2023.
  • GAAP net loss per basic share is expected to be in the range of $0.20 to $0.18 for Q4 2023.
  • GAAP loss from operations is expected to be in the range of $102 million to $101 million for the full year 2023.
  • GAAP net loss per basic share is expected to be in the range of $2.48 to $2.46 for the full year 2023.
  • Non-GAAP net loss per basic share is expected to be in the range of $0.54 to $0.52 for the full year 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 Q3 2023

Historical avgQ3 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro