EX-99.1 2 q12025exhibit991.htm EX-99.1 Document

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Workiva Inc. Announces First Quarter 2025 Financial Results
•Increased Q1 2025 subscription & support revenue by 20% over Q1 2024
•Total revenue of $206 million in Q1 2025, representing 17% year-over-year growth
•Repurchased $40 million of Class A common stock under the 2024 share repurchase plan
•Customers with annual contract value over $500,000 grew 32% year-over-year

NEW YORK - May 1, 2025 – Workiva Inc. (NYSE:WK), the platform that powers transparency, accountability, and trust, today announced financial results for its first quarter ended March 31, 2025.
"We kicked off the year with solid revenue growth as we continue to see broad-based demand across our solution portfolio. CFOs trust Workiva to be the platform that drives performance and productivity," said Julie Iskow, President & Chief Executive Officer. "We remain focused on the execution of our growth strategy and productivity initiatives. We believe that we have the competitive differentiation and focused execution to continue to deliver on our 2025 and longer-term targets."
"Workiva delivered better than expected top and bottom line first quarter results," said Jill Klindt, Chief Financial Officer. "Subscription revenue grew by 20%, and contracts valued over $500 thousand dollars were up 32% year-over-year. We are holding our 2025 revenue outlook unchanged, and remain confident in our long-term market opportunity."
First Quarter 2025 Financial Results
•Revenue: Total revenue for the first quarter of 2025 reached $206 million, an increase of 17% from $176 million in the first quarter of 2024. Subscription and support revenue contributed $186 million, up 20% versus the first quarter of 2024. Professional services revenue was $21 million, flat from the first quarter of 2024.
•Gross Margin: GAAP gross margin was 76.6% versus 76.4% in the first quarter of 2024. Non-GAAP gross margin was 78.7% compared to 77.7% in the first quarter of 2024.
•Operating Margin: GAAP operating margin for the first quarter of 2025 was (12.0)% compared to (10.3)% in the prior year's first quarter. Non-GAAP operating margin was 2.4% compared to 3.4% in the first quarter of 2024.
•GAAP Net Loss: GAAP net loss for the first quarter of 2025 was $(21) million compared with a net loss of $(12) million for the prior year's first quarter. GAAP net loss per basic and diluted share was $(0.38) compared with a net loss per basic and diluted share of $(0.21) in the first quarter of 2024.
•Non-GAAP Net Income: Non-GAAP net income for the first quarter of 2025 was $8 million compared with non-GAAP net income of $13 million in the prior year's first quarter. Non-GAAP net income per basic share and diluted share in the first quarter of 2025 was $0.15 and $0.14, respectively, compared with non-GAAP net income per basic share and diluted share of $0.23 and $0.22, respectively, in the first quarter of 2024.
•Liquidity: As of March 31, 2025, Workiva had cash, cash equivalents, and marketable securities totaling $767 million, compared with $816 million as of December 31, 2024. Workiva had $71 million aggregate principal amount of 1.125% convertible senior notes due in 2026, $702 million aggregate principal amount of 1.250% convertible senior notes due in 2028, and $14 million of finance lease obligations outstanding as of March 31, 2025.
Key Metrics and Recent Business Highlights
•Customers: Workiva had 6,385 customers as of March 31, 2025, a net increase of 311 customers from March 31, 2024.
•Retention Rate: As of March 31, 2025, Workiva's gross retention rate was 97%, and the net retention rate was 110%. Net retention includes changes in both solutions and pricing for existing customers.
•Large Contracts: As of March 31, 2025, Workiva had 2,079 customers with an annual contract value (“ACV”) of more than $100,000, up 23% from 1,696 customers at March 31, 2024. Workiva had 439 customers with an ACV of more than $300,000, up 32% from 332 customers in the first quarter of 2024. Workiva had 191 customers with an ACV of more than $500,000, up 32% from 145 customers in the first quarter of 2024.
•Share Repurchase Plan: On July 30, 2024, our board of directors authorized a share repurchase plan for up to $100 million of our outstanding Class A common stock. During the first quarter of 2025, Workiva purchased approximately 462,000 shares for $40.1 million under the plan. As of March 31, 2025, $59.9 million remains available under the plan for future share repurchases.
Financial Outlook
While the prevailing environment provides elevated levels of uncertainty, as of May 1, 2025, Workiva is providing guidance as follows:
Second Quarter 2025 Guidance:
•Total revenue is expected to be in the range of $208 million to $210 million.
•GAAP operating margin is expected to be approximately (14.8)%.
•Non-GAAP operating margin is expected to be approximately break-even.
•GAAP net loss per basic share is expected to be approximately $(0.50) using 56.1 million shares.
•Non-GAAP net income per diluted share is expected to be approximately $0.05 using 57.6 million shares.

Full Year 2025 Guidance:
•Total revenue is expected to be in the range of $864 million to $868 million.
•GAAP operating margin is expected to be in the range of (9.1)% to (8.6)%.
•Non-GAAP operating margin is expected to be in the range of 5.0% to 5.5%.
•GAAP net loss per basic share is expected to be in the range of $(1.07) to $(1.00) using 56.4 million shares.
•Non-GAAP net income per diluted share is expected to be in the range of $1.02 to $1.09 using 59.7 million shares.
•Free cash flow margin is expected to be approximately 10%.
Quarterly Conference Call
Workiva will host a webcast today at 5:00 p.m. Eastern Time to review the Company’s financial results for the first quarter 2025, in addition to discussing the Company’s outlook for the second quarter and full year 2025. The call can be accessed by dialing 1-833-630-1956 (U.S. domestic) or 1-412-317-1837 (international). Additionally, a live webcast and replay will be available at https://investor.workiva.com/news-events/events.
About Workiva
Workiva Inc. (NYSE: WK) powers transparency, accountability, and trust. Finance, accounting, sustainability, risk and audit teams from more than 6,000 organizations worldwide rely on Workiva for their mission-critical work. We transform how customers connect data, unify processes, and empower teams in a secure, audit-ready, AI-powered collaborative platform. Learn more at workiva.com.
Non-GAAP Financial Measures
The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation and amortization of acquisition-related intangible assets. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in Table I at the end of this press release. A reconciliation of GAAP to non-GAAP guidance has been provided in Table II at the end of this press release.
Workiva believes that the use of non-GAAP gross profit and gross margin, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) per share, free cash flow and free cash flow margin is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Workiva’s management uses these non-GAAP financial measures as tools for financial and operational decision making and for evaluating Workiva’s own operating results over different periods of time.
Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by revenues. Non-GAAP gross profit is calculated by excluding stock-based compensation expense attributable to cost of revenues from gross profit. Non-GAAP income (loss) from operations is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets from loss from operations. Non-GAAP net income (loss) is calculated by excluding stock-based compensation expense, net of tax and amortization expense for acquisition-related intangible assets from net loss. Non-GAAP net income (loss) per share is calculated by dividing non-GAAP net income (loss) by the weighted- average shares outstanding as presented in the calculation of GAAP net loss per share. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Workiva believes that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between its operating results from period to period. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition and thus we do not believe they are reflective of ongoing operations.
Free cash flow, a non-GAAP measure, represents cash flow from operating activities less purchase of property and equipment. Free cash flow margin is calculated by dividing free cash flow by total revenue. We consider free cash flow and free cash flow margin to be liquidity measures that provide useful information to investors about the amount of cash generated or used by the business.
Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Workiva’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Workiva’s reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Workiva’s business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Workiva’s business.
Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company’s expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance," "target," "goal," "project," "continue to," "confident," or the negative of those terms or other comparable terminology.
Please see the Company’s documents filed or to be filed with the Securities and Exchange Commission, including the Company’s annual reports filed on Form 10-K and quarterly reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Investor Contact:
Media Contact:
Katie White
Mandi McReynolds
Workiva Inc.
Workiva Inc.
investor@workiva.com
press@workiva.com
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WORKIVA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
Three months ended March 31,
20252024
(unaudited)
Revenue
Subscription and support$185,512 $154,979 
Professional services20,768 20,688 
Total revenue206,280 175,667 
Cost of revenue
Subscription and support (1)
34,062 27,927 
Professional services (1)
14,280 13,596 
Total cost of revenue48,342 41,523 
Gross profit157,938 134,144 
Operating expenses
Research and development (1)
53,780 45,495 
Sales and marketing (1)
101,671 82,633 
General and administrative (1)
27,237 24,299 
Total operating expenses182,688 152,427 
Loss from operations(24,750)(18,283)
Interest income8,747 10,455 
Interest expense(3,195)(3,232)
Other (expense) income, net(233)86 
Loss before provision for income taxes(19,431)(10,974)
Provision for income taxes1,940 713 
Net loss$(21,371)$(11,687)
Net loss per common share:
Basic and diluted$(0.38)$(0.21)
Weighted-average common shares outstanding - basic and diluted56,157,533 54,915,852 

(1) Includes stock-based compensation expense as follows:
Three months ended March 31,
20252024
(unaudited)
Cost of revenue
Subscription and support$2,433 $1,601 
Professional services996 727 
Operating expenses
Research and development6,050 4,641 
Sales and marketing9,751 8,038 
General and administrative8,658 8,000 

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WORKIVA INC.

CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, 2025December 31, 2024
(unaudited)
Assets
Current assets
Cash and cash equivalents$242,024 $301,835 
Marketable securities525,000 514,585 
Accounts receivable, net118,620 148,433 
Deferred costs51,184 50,914 
Other receivables9,308 10,276 
Prepaid expenses and other28,161 22,199 
Total current assets974,297 1,048,242 
Property and equipment, net21,485 21,825 
Operating lease right-of-use assets12,341 11,786 
Deferred costs, non-current51,456 54,858 
Goodwill199,724 196,844 
Intangible assets, net26,031 27,389 
Other assets8,300 7,525 
Total assets$1,293,634 $1,368,469 
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable$14,761 $7,747 
Accrued expenses and other current liabilities93,495 126,508 
Deferred revenue438,513 457,608 
Finance lease obligations570 562 
Total current liabilities547,339 592,425 
Convertible senior notes, non-current765,501 764,891 
Deferred revenue, non-current33,104 29,681 
Other long-term liabilities238 227 
Operating lease liabilities, non-current9,845 9,441 
Finance lease obligations, non-current13,342 13,488 
Total liabilities1,369,369 1,410,153 
Stockholders’ deficit
Common stock56 56 
Additional paid-in-capital655,377 672,363 
Accumulated deficit(729,054)(707,683)
Accumulated other comprehensive loss(2,114)(6,420)
Total stockholders’ deficit(75,735)(41,684)
Total liabilities and stockholders’ deficit$1,293,634 $1,368,469 

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WORKIVA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three months ended March 31,
20252024
(unaudited)
Cash flows from operating activities
Net loss$(21,371)$(11,687)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
Depreciation and amortization2,893 2,522 
Stock-based compensation expense27,888 23,007 
Provision for (recovery of) doubtful accounts12 (123)
Accretion of premiums and discounts on marketable securities, net(1,695)(3,749)
Amortization of debt discount and issuance costs610 608 
Deferred income tax(64)(295)
Changes in assets and liabilities:
Accounts receivable30,636 36,947 
Deferred costs4,093 1,405 
Operating lease right-of-use assets1,329 1,426 
Other receivables994 194 
Prepaid expenses and other(5,653)(2,273)
Other assets(648)(1,090)
Accounts payable6,651 4,726 
Deferred revenue(18,438)(17,526)
Operating lease liabilities(831)(987)
Accrued expenses and other liabilities(33,764)(8,261)
Net cash (used in) provided by operating activities(7,358)24,844 
Cash flows from investing activities
Purchase of property and equipment(763)(203)
Purchase of marketable securities(102,965)(116,567)
Maturities of marketable securities94,614 129,640 
Sale of marketable securities— 4,609 
Purchase of intangible assets(19)(31)
Net cash (used in) provided by investing activities(9,133)17,448 
Cash flows from financing activities
Proceeds from option exercises631 302 
Taxes paid related to net share settlements of stock-based compensation awards(12,922)(8,611)
Proceeds from shares issued in connection with employee stock purchase plan7,535 7,113 
Repurchases of Class A common stock(40,118)— 
Principal payments on finance lease obligations(138)(129)
Net cash used in financing activities(45,012)(1,325)
Effect of foreign exchange rates on cash1,889 (1,107)
Net (decrease) increase in cash, cash equivalents, and restricted cash(59,614)39,860 
Cash, cash equivalents, and restricted cash at beginning of period302,350 256,721 
Cash, cash equivalents, and restricted cash at end of period$242,736 $296,581 

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Three months ended March 31,
20252024
(unaudited)
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents at end of period
$242,024 $296,066 
Restricted cash included within prepaid expenses and other at end of period
712 515 
Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows
$242,736 $296,581 
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TABLE I
WORKIVA INC.
RECONCILIATION OF NON-GAAP INFORMATION
(in thousands, except share and per share)
Three months ended March 31,
20252024
Gross profit, subscription and support$151,450 $127,052 
Add back: Stock-based compensation2,433 1,601 
Add back: Amortization of acquisition-related intangibles909 — 
Gross profit, subscription and support, non-GAAP$154,792 $128,653 
Gross profit, professional services$6,488 $7,092 
Add back: Stock-based compensation996 727 
Gross profit, professional services, non-GAAP$7,484 $7,819 
Gross profit$157,938 $134,144 
Add back: Stock-based compensation3,429 2,328 
Add back: Amortization of acquisition-related intangibles909 — 
Gross profit, non-GAAP$162,276 $136,472 
Cost of revenue, subscription and support$34,062 $27,927 
Less: Stock-based compensation2,433 1,601 
Less: Amortization of acquisition-related intangibles909 — 
Cost of revenue, subscription and support, non-GAAP$30,720 $26,326 
Cost of revenue, professional services$14,280 $13,596 
Less: Stock-based compensation996 727 
Cost of revenue, professional services, non-GAAP$13,284 $12,869 
Research and development$53,780 $45,495 
Less: Stock-based compensation6,050 4,641 
Less: Amortization of acquisition-related intangibles495 890 
Research and development, non-GAAP$47,235 $39,964 
Sales and marketing$101,671 $82,633 
Less: Stock-based compensation9,751 8,038 
Less: Amortization of acquisition-related intangibles447 412 
Sales and marketing, non-GAAP$91,473 $74,183 
General and administrative$27,237 $24,299 
Less: Stock-based compensation8,658 8,000 
General and administrative, non-GAAP$18,579 $16,299 
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TABLE I
WORKIVA INC.
RECONCILIATION OF NON-GAAP INFORMATION
(in thousands, except share and per share)
Three months ended March 31,
20252024
Loss from operations$(24,750)$(18,283)
Add back: Stock-based compensation27,888 23,007 
Add back: Amortization of acquisition-related intangibles1,851 1,302 
Income from operations, non-GAAP
$4,989 $6,026 
GAAP operating margin
(12.0)%(10.3)%
Non-GAAP operating margin
2.4 %3.4 %
Net loss$(21,371)$(11,687)
Add back: Stock-based compensation27,888 23,007 
Add back: Amortization of acquisition-related intangibles1,851 1,302 
Net income, non-GAAP$8,368 $12,622 
Net loss per basic and diluted share:$(0.38)$(0.21)
Add back: Stock-based compensation0.50 0.42 
Add back: Amortization of acquisition-related intangibles0.03 0.02 
Net income per basic share, non-GAAP$0.15 $0.23 
Net income per diluted share, non-GAAP$0.14 $0.22 
Weighted-average common shares outstanding - basic, non-GAAP56,157,533 54,915,852 
Effect of potentially dilutive securities
2,322,617 1,436,720 
Weighted-average common shares outstanding - diluted, non-GAAP58,480,150 56,352,572 
Net cash (used in) provided by operating activities$(7,358)24,844 
Purchase of property and equipment
(763)(203)
Free cash flow
$(8,121)$24,641 
Free cash flow margin
(3.9)%14.0 %

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TABLE II
WORKIVA INC.
RECONCILIATION OF NON-GAAP GUIDANCE
Three months ending June 30, 2025
Year ending December 31, 2025
GAAP operating margin(14.8)%(9.1)%(8.6)%
Add back: Stock-based compensation13.9 %13.3 %13.3 %
Add back: Amortization of acquisition-related intangibles0.9 %0.8 %0.8 %
Non-GAAP operating margin— %5.0 %5.5 %
Net loss per basic share, GAAP range$(0.50)$(1.07)-$(1.00)
Add back: Stock-based compensation0.52 2.03 2.03 
Add back: Amortization of acquisition-related intangibles0.03 0.12 0.12 
Effect of potentially dilutive securities— (0.06)(0.06)
Net income per diluted share, non-GAAP range$0.05 $1.02 -$1.09 
Weighted-average common shares used in calculating GAAP earnings per share, basic56,100,000 56,400,000 56,400,000 
Weighted-average common shares used in calculating non-GAAP earnings per share, diluted57,600,000 59,700,000 59,700,000 


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