On February 20, 2024, Workiva Inc (WK, Financial) released its 8-K filing, announcing its financial results for the fourth quarter and full year ended December 31, 2023. Workiva, a leading cloud platform for assured integrated reporting, has shown a robust performance in its subscription revenue, which is a testament to the company's strong market position and the increasing demand for its platform that integrates financial reporting, GRC, and ESG.
Financial Highlights and Performance
Workiva's subscription revenue for Q4 2023 was $149 million, an 18% increase from the same period last year, while the full-year subscription revenue grew by 20% to $559 million. Total revenue for Q4 reached $167 million, marking a 16% year-over-year growth, and $630 million for the full year, up by 17%. The company's GAAP gross profit for Q4 was $129 million, and non-GAAP gross profit was $131 million, reflecting gross margins of 77.3% and 78.4%, respectively.
The GAAP net loss for Q4 improved to $4 million, down from a $14 million loss in Q4 2022, while the full-year GAAP net loss widened to $128 million from $91 million in the previous year. Despite the net loss, Workiva achieved a record operating cash flow of $71 million in 2023, a significant improvement from $11 million in 2022.
Balance Sheet and Liquidity
As of December 31, 2023, Workiva had a strong liquidity position with cash, cash equivalents, and marketable securities totaling $814 million. The company's financial management strategies included the issuance of $702 million in convertible senior notes due in 2028 and the repurchase of a portion of its 2026 notes, optimizing its debt structure.
Customer and Market Expansion
Workiva's customer base expanded to 6,034, a net increase of 370 customers from the previous year. The company also reported significant growth in large contracts, with a 32% year-over-year increase in customers with an annual contract value (ACV) of more than $300,000.
Forward Guidance
Looking ahead, Workiva provided guidance for Q1 2024 with total revenue expected to be in the range of $173 million to $175 million and a GAAP loss from operations projected between $20.5 million and $18.5 million. For the full year 2024, the company anticipates total revenue to be between $718 million and $722 million.
Executive Commentary
"Workiva closed out the year with another solid quarter," said CEO Julie Iskow. "Our solid fourth-quarter and full year results demonstrate the durability of our business and the ongoing market adoption for our assured integrated reporting platform."
"For Q4, we exceeded our revenue guidance by $2 million dollars," said CFO Jill Klindt. "Our platform approach continues to drive performance. In the quarter, we generated 64% of our subscription revenue from customers with multiple solutions."
Workiva Inc (WK, Financial) continues to demonstrate its ability to grow and retain customers, expand its market presence, and generate strong subscription revenue, positioning the company well for the future. The focus on strategic platforms that integrate financial reporting, GRC, and ESG resonates with the needs of modern organizations, underpinning Workiva's value proposition in the software industry.
For more detailed information on Workiva's financial performance, investors and interested parties are encouraged to view the full 8-K filing.
Explore the complete 8-K earnings release (here) from Workiva Inc for further details.