Q3 Revenue of $44.7 million, Up 23% from Q3 of 2015
AMES, Iowa--(BUSINESS WIRE)--
Workiva Inc. (NYSE: WK), a leading provider of enterprise cloud
solutions for improving productivity, accountability and insight into
business data, today announced financial results for its third quarter
ended September 30, 2016.
“We posted strong results in the third quarter, highlighted by 23%
revenue growth over the same quarter last year and better than expected
operating margin,” said Matt Rizai, Chairman and Chief Executive Officer
of Workiva. “We are pleased to have generated positive operating cash
flow in the third quarter, and we expect to post positive operating cash
flow again in the fourth quarter as we make progress toward sustained
positive operating cash flow.”
“Our success in delivering multiple solutions has created demand from
numerous customers for a broader-based, enterprise-wide Wdesk solution,”
said Rizai. “In response, we have been evolving our business model,
enhancing user management and improving our technology to capitalize on
our growing enterprise-wide opportunities, even as we continue to focus
on improving operating cash flow.”
“Our brand recognition and market penetration are also generating
opportunities for us to develop partnerships with subject-matter experts
and consultants, as well as with distribution and technology firms,”
said Rizai.
Third Quarter 2016 Financial Highlights
-
Revenue: Total revenue for the quarter ended September 30, 2016
was $44.7 million, an increase of 23.3% from $36.3 million in
the third quarter of 2015. Subscription and support revenue was $36.2
million, an increase of 21.5% versus results in the third quarter of
2015. Professional services revenue was $8.5 million, an increase of
31.7% compared to the same quarter in the prior year.
-
Gross Profit: GAAP gross profit for the quarter ended
September 30, 2016 was $32.0 million compared with $26.5 million in
the same quarter of the prior year. GAAP gross margin was 71.5% in the
third quarter of 2016 versus 73.0% in the third quarter of 2015.
Non-GAAP gross profit for the quarter ended September 30, 2016 was
$32.2 million, an increase of 20.7% compared with the prior year's
third quarter, and non-GAAP gross margin was 72.0% compared to 73.5%
in the third quarter of 2015.
-
Loss from Operations: GAAP loss from operations for the quarter
ended September 30, 2016 was $12.7 million compared with a loss of
$14.3 million in the prior year's third quarter. Non-GAAP loss from
operations for the quarter ended September 30, 2016 was $9.1 million,
compared with non-GAAP loss from operations of $11.2 million in the
third quarter of 2015. Non-GAAP loss from operations as a percentage
of revenue improved 1,070 basis points for the quarter ended
September 30, 2016 compared to the third quarter of 2015.
-
Net Loss: GAAP net loss for the quarter ended September 30,
2016 was $12.9 million compared with a net loss of $14.6 million for
the prior year's third quarter. GAAP net loss per basic and diluted
share for the quarter ended September 30, 2016 was $0.32, based on
40.8 million weighted-average shares outstanding, compared with a net
loss per basic and diluted share of $0.37, based on 40.0 million
weighted-average shares outstanding in the third quarter of 2015.
-
Non-GAAP net loss for the quarter ended September 30, 2016 was $9.2
million compared with a net loss of $11.5 million in the prior year's
third quarter. Non-GAAP net loss per basic and diluted share for the
quarter ended September 30, 2016 was $0.23, based on 40.8 million
weighted-average shares outstanding, compared with a net loss per
basic and diluted share of $0.29, based on 40.0 million
weighted-average shares outstanding in the third quarter of 2015.
Operating Metrics
-
Customers: Workiva had 2,696 customers as of September 30,
2016, a net increase of 228 customers from September 30, 2015.
-
Revenue Retention Rate: As of September 30, 2016, Workiva's
revenue retention rate (excluding add-on revenue) was 95.0%, and the
revenue retention rate including add-on revenue was 108.7%. Add-on
revenue includes the change in both seats purchased and seat pricing
for existing customers.
Financial Outlook
As of November 9, 2016, Workiva is providing guidance for its fourth
quarter 2016 and full year 2016 as follows:
Fourth Quarter 2016 Guidance:
-
Total revenue is expected to be in the range of $45.2 million to $45.7
million.
-
GAAP loss from operations is expected to be in the range of $11.8
million to $12.3 million.
-
Non-GAAP loss from operations is expected to be in the range of $8.0
million to $8.5 million.
-
GAAP net loss per basic and diluted share is expected to be in the
range of $0.30 to $0.31.
-
Non-GAAP net loss per basic and diluted share is expected to be in the
range of $0.20 to $0.21.
-
Net loss per basic and diluted share is based on 41.0 million
weighted-average shares outstanding.
Full Year 2016 Guidance:
-
Total revenue is expected to be in the range of $177.5 million to
$178.0 million.
-
GAAP loss from operations is expected to be in the range of $48.0
million to $48.5 million.
-
Non-GAAP loss from operations is expected to be in the range of $33.6
million to $34.1 million.
-
GAAP net loss per basic and diluted share is expected to be in the
range of $1.19 to $1.20.
-
Non-GAAP net loss per basic and diluted share is expected to be in the
range of $0.84 to $0.85.
-
Net loss per basic and diluted share is based on 40.7 million
weighted-average shares outstanding.
Quarterly Conference Call
Workiva will host a conference call today at 5:00 p.m. ET to review the
Company’s financial results for the third quarter 2016, in addition to
discussing the Company’s outlook for the fourth quarter and full year
2016. To access this call, dial 877-201-0168 (domestic) or 647-788-4901
(international). The conference ID is 87125969. A live webcast of the
conference call will be accessible in the “Investor Relations” section
of Workiva’s website at www.workiva.com.
A replay of this conference call can also be accessed through November
16, 2016 at 855-859-2056 (domestic) or 404-537-3406 (international). The
replay pass code is 87125969. An archived webcast of this conference
call will also be available an hour after the completion of the call in
the “Investor Relations” section of the Company’s website at www.workiva.com.
About Workiva
Workiva (NYSE:WK) created Wdesk, a cloud-based productivity platform for
enterprises to collect, link, report and analyze business data with
control and accountability. Thousands of organizations, including over
65 percent of the FORTUNE 500®, use Wdesk. The platform's
proprietary word processing, spreadsheet and presentation applications
are integrated and built upon a data management engine, offering
synchronized data, controlled collaboration, granular permissions and a
full audit trail. Wdesk helps mitigate enterprise risk, improve
productivity and give users confidence to make decisions with real-time
data. Workiva employs more than 1,200 people with offices in 16 cities.
The Company is headquartered in Ames, Iowa. For more information, visit
workiva.com.
Claim not confirmed by FORTUNE or Time Inc. FORTUNE 500 is a registered
trademark of Time Inc. and is used under license. FORTUNE and Time Inc.
are not affiliated with, and do not endorse products or services of,
Workiva Inc.
Non-GAAP Financial Measures
The non-GAAP adjustments referenced herein relate to the exclusion of
stock-based compensation. 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 loss from operations, non-GAAP net loss and non-GAAP net loss
per share 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. Non-GAAP gross profit is calculated by excluding
stock-based compensation expense attributable to cost of revenues from
gross profit. Non-GAAP gross margin is the ratio calculated by dividing
non-GAAP gross profit by revenues. Non-GAAP loss from operations is
calculated by excluding stock-based compensation expense from loss from
operations. Non-GAAP net loss is calculated by excluding stock-based
compensation expense, net of tax, from net loss. Non-GAAP net loss per
share is calculated by dividing non-GAAP net 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. 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 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.
Safe Harbor Statement
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” 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.
|
|
|
WORKIVA INC.
|
|
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and support
|
|
|
|
$
|
36,237
|
|
|
|
$
|
29,832
|
|
|
|
$
|
104,791
|
|
|
|
$
|
84,186
|
|
|
Professional services
|
|
|
|
8,473
|
|
|
|
6,436
|
|
|
|
27,481
|
|
|
|
21,204
|
|
|
Total revenue
|
|
|
|
44,710
|
|
|
|
36,268
|
|
|
|
132,272
|
|
|
|
105,390
|
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and support (1)
|
|
|
|
6,694
|
|
|
|
5,319
|
|
|
|
20,651
|
|
|
|
16,768
|
|
|
Professional services (1)
|
|
|
|
6,040
|
|
|
|
4,457
|
|
|
|
17,766
|
|
|
|
12,423
|
|
|
Total cost of revenue
|
|
|
|
12,734
|
|
|
|
9,776
|
|
|
|
38,417
|
|
|
|
29,191
|
|
|
Gross profit
|
|
|
|
31,976
|
|
|
|
26,492
|
|
|
|
93,855
|
|
|
|
76,199
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development (1)
|
|
|
|
14,342
|
|
|
|
12,766
|
|
|
|
42,905
|
|
|
|
36,970
|
|
|
Sales and marketing (1)
|
|
|
|
22,354
|
|
|
|
20,903
|
|
|
|
62,270
|
|
|
|
50,937
|
|
|
General and administrative (1)
|
|
|
|
8,015
|
|
|
|
7,153
|
|
|
|
24,850
|
|
|
|
20,178
|
|
|
Total operating expenses
|
|
|
|
44,711
|
|
|
|
40,822
|
|
|
|
130,025
|
|
|
|
108,085
|
|
|
Loss from operations
|
|
|
|
(12,735
|
)
|
|
|
(14,330
|
)
|
|
|
(36,170
|
)
|
|
|
(31,886
|
)
|
|
Interest expense
|
|
|
|
(462
|
)
|
|
|
(494
|
)
|
|
|
(1,420
|
)
|
|
|
(1,517
|
)
|
|
Other income and (expense), net
|
|
|
|
298
|
|
|
|
163
|
|
|
|
1,152
|
|
|
|
288
|
|
|
Loss before provision for income taxes
|
|
|
|
(12,899
|
)
|
|
|
(14,661
|
)
|
|
|
(36,438
|
)
|
|
|
(33,115
|
)
|
|
Provision for income taxes
|
|
|
|
(8
|
)
|
|
|
(31
|
)
|
|
|
23
|
|
|
|
(9
|
)
|
|
Net loss
|
|
|
|
$
|
(12,891
|
)
|
|
|
$
|
(14,630
|
)
|
|
|
$
|
(36,461
|
)
|
|
|
$
|
(33,106
|
)
|
|
Net loss per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
$
|
(0.32
|
)
|
|
|
$
|
(0.37
|
)
|
|
|
$
|
(0.90
|
)
|
|
|
$
|
(0.83
|
)
|
|
Weighted average common shares outstanding - basic
and diluted
|
|
|
|
40,762,960
|
|
|
|
39,980,308
|
|
|
|
40,603,430
|
|
|
|
39,735,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based compensation expense as follows:
|
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and support
|
|
|
|
$
|
122
|
|
|
|
$
|
92
|
|
|
|
$
|
365
|
|
|
|
$
|
275
|
|
Professional services
|
|
|
|
100
|
|
|
|
90
|
|
|
|
315
|
|
|
|
251
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
594
|
|
|
|
586
|
|
|
|
1,787
|
|
|
|
1,289
|
|
Sales and marketing
|
|
|
|
567
|
|
|
|
461
|
|
|
|
1,471
|
|
|
|
1,243
|
|
General and administrative
|
|
|
|
2,287
|
|
|
|
1,853
|
|
|
|
6,624
|
|
|
|
4,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORKIVA INC.
|
|
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
|
(in thousands)
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
|
|
(unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
42,842
|
|
|
|
$
|
58,750
|
|
|
Marketable securities
|
|
|
10,995
|
|
|
|
17,420
|
|
|
Accounts receivable, net
|
|
|
22,353
|
|
|
|
15,647
|
|
|
Deferred commissions
|
|
|
1,634
|
|
|
|
1,368
|
|
|
Other receivables
|
|
|
1,261
|
|
|
|
818
|
|
|
Prepaid expenses and other current assets
|
|
|
4,972
|
|
|
|
3,875
|
|
|
Total current assets
|
|
|
84,057
|
|
|
|
97,878
|
|
|
Property and equipment, net
|
|
|
43,287
|
|
|
|
44,410
|
|
|
Intangible assets, net
|
|
|
995
|
|
|
|
896
|
|
|
Other assets
|
|
|
1,583
|
|
|
|
711
|
|
|
Total assets
|
|
|
$
|
129,922
|
|
|
|
$
|
143,895
|
|
|
Liabilities and Stockholders’ Equity
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
5,637
|
|
|
|
$
|
5,138
|
|
|
Accrued expenses and other current liabilities
|
|
|
17,177
|
|
|
|
20,394
|
|
|
Deferred revenue
|
|
|
63,629
|
|
|
|
55,741
|
|
|
Deferred government grant obligation
|
|
|
1,164
|
|
|
|
985
|
|
|
Current portion of capital lease and financing obligations
|
|
|
1,432
|
|
|
|
1,808
|
|
|
Current portion of long-term debt
|
|
|
20
|
|
|
|
18
|
|
|
Total current liabilities
|
|
|
89,059
|
|
|
|
84,084
|
|
|
Deferred revenue
|
|
|
15,216
|
|
|
|
7,597
|
|
|
Deferred government grant obligation
|
|
|
1,089
|
|
|
|
1,996
|
|
|
Other long-term liabilities
|
|
|
4,064
|
|
|
|
3,343
|
|
|
Capital lease and financing obligations
|
|
|
20,013
|
|
|
|
21,083
|
|
|
Long-term debt
|
|
|
53
|
|
|
|
73
|
|
|
Total liabilities
|
|
|
129,494
|
|
|
|
118,176
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
Common stock
|
|
|
41
|
|
|
|
41
|
|
|
Additional paid-in-capital
|
|
|
213,532
|
|
|
|
202,371
|
|
|
Accumulated deficit
|
|
|
(213,395
|
)
|
|
|
(176,934
|
)
|
|
Accumulated other comprehensive income
|
|
|
250
|
|
|
|
241
|
|
|
Total stockholders’ equity
|
|
|
428
|
|
|
|
25,719
|
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
129,922
|
|
|
|
$
|
143,895
|
|
|
|
|
WORKIVA INC.
|
|
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(12,891
|
)
|
|
|
$
|
(14,630
|
)
|
|
|
$
|
(36,461
|
)
|
|
|
$
|
(33,106
|
)
|
|
Adjustments to reconcile net loss to net cash provided by
(used
in) operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
944
|
|
|
|
1,058
|
|
|
|
2,916
|
|
|
|
3,354
|
|
|
Stock-based compensation expense
|
|
|
3,670
|
|
|
|
3,082
|
|
|
|
10,562
|
|
|
|
7,876
|
|
|
(Recovery of) provision for doubtful accounts
|
|
|
(92
|
)
|
|
|
222
|
|
|
|
78
|
|
|
|
348
|
|
|
Realized gain on sale of available-for-sale securities
|
|
|
—
|
|
|
|
(7
|
)
|
|
|
(6
|
)
|
|
|
(7
|
)
|
|
Amortization (accretion) of premiums and discounts on
marketable
securities, net
|
|
|
36
|
|
|
|
32
|
|
|
|
111
|
|
|
|
32
|
|
|
Recognition of deferred government grant obligation
|
|
|
(247
|
)
|
|
|
(236
|
)
|
|
|
(910
|
)
|
|
|
(508
|
)
|
|
Deferred income tax
|
|
|
5
|
|
|
|
—
|
|
|
|
(7
|
)
|
|
|
—
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(4,009
|
)
|
|
|
47
|
|
|
|
(6,734
|
)
|
|
|
(1,448
|
)
|
|
Deferred commissions
|
|
|
(135
|
)
|
|
|
(217
|
)
|
|
|
(264
|
)
|
|
|
(104
|
)
|
|
Other receivables
|
|
|
(365
|
)
|
|
|
(44
|
)
|
|
|
(447
|
)
|
|
|
(656
|
)
|
|
Prepaid expenses and other
|
|
|
415
|
|
|
|
(218
|
)
|
|
|
(1,098
|
)
|
|
|
(139
|
)
|
|
Other assets
|
|
|
(455
|
)
|
|
|
72
|
|
|
|
(841
|
)
|
|
|
166
|
|
|
Accounts payable
|
|
|
279
|
|
|
|
857
|
|
|
|
380
|
|
|
|
2,276
|
|
|
Deferred revenue
|
|
|
13,228
|
|
|
|
1,686
|
|
|
|
15,412
|
|
|
|
3,528
|
|
|
Accrued expenses and other liabilities
|
|
|
2,410
|
|
|
|
3,578
|
|
|
|
(3,012
|
)
|
|
|
1,732
|
|
|
Change in restricted cash
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
101
|
|
|
Net cash provided by (used in) operating activities
|
|
|
2,793
|
|
|
|
(4,718
|
)
|
|
|
(20,321
|
)
|
|
|
(16,555
|
)
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(91
|
)
|
|
|
(629
|
)
|
|
|
(1,100
|
)
|
|
|
(1,659
|
)
|
|
Purchase of marketable securities
|
|
|
—
|
|
|
|
(15,692
|
)
|
|
|
(802
|
)
|
|
|
(15,692
|
)
|
|
Sale of marketable securities
|
|
|
—
|
|
|
|
3,012
|
|
|
|
7,197
|
|
|
|
3,012
|
|
|
Purchase of intangible assets
|
|
|
(38
|
)
|
|
|
(66
|
)
|
|
|
(152
|
)
|
|
|
(344
|
)
|
|
Net cash (used in) provided by investing activities
|
|
|
(129
|
)
|
|
|
(13,375
|
)
|
|
|
5,143
|
|
|
|
(14,683
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment of equity issuance costs
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,346
|
)
|
|
Proceeds from option exercises
|
|
|
840
|
|
|
|
1,062
|
|
|
|
1,360
|
|
|
|
1,495
|
|
|
Taxes paid related to net share settlements of stock-
based
compensation awards
|
|
|
—
|
|
|
|
—
|
|
|
|
(761
|
)
|
|
|
—
|
|
|
Changes in restricted cash
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
300
|
|
|
Repayment of other long-term debt
|
|
|
—
|
|
|
|
(17
|
)
|
|
|
(18
|
)
|
|
|
(84
|
)
|
|
Principal payments on capital lease and financing
obligations
|
|
|
(538
|
)
|
|
|
(522
|
)
|
|
|
(1,446
|
)
|
|
|
(1,683
|
)
|
|
Distributions to members
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(35
|
)
|
|
Proceeds from government grants
|
|
|
—
|
|
|
|
235
|
|
|
|
183
|
|
|
|
548
|
|
|
Payments of issuance costs on line of credit
|
|
|
—
|
|
|
|
—
|
|
|
|
(33
|
)
|
|
|
—
|
|
|
Net cash provided by (used in) financing activities
|
|
|
302
|
|
|
|
758
|
|
|
|
(715
|
)
|
|
|
(805
|
)
|
|
Effect of foreign exchange rates on cash
|
|
|
(9
|
)
|
|
|
(3
|
)
|
|
|
(15
|
)
|
|
|
6
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
2,957
|
|
|
|
(17,338
|
)
|
|
|
(15,908
|
)
|
|
|
(32,037
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
39,885
|
|
|
|
86,432
|
|
|
|
58,750
|
|
|
|
101,131
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
42,842
|
|
|
|
$
|
69,094
|
|
|
|
$
|
42,842
|
|
|
|
$
|
69,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE I
|
|
WORKIVA INC.
|
|
RECONCILIATION OF NON-GAAP INFORMATION
|
|
(in thousands, except share and per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Gross profit, subscription and support
|
|
|
$
|
29,543
|
|
|
|
$
|
24,513
|
|
|
|
$
|
84,140
|
|
|
|
$
|
67,418
|
|
|
Add back: Stock-based compensation
|
|
|
122
|
|
|
|
92
|
|
|
|
365
|
|
|
|
275
|
|
|
Gross profit, subscription and support, non-GAAP
|
|
|
$
|
29,665
|
|
|
|
$
|
24,605
|
|
|
|
$
|
84,505
|
|
|
|
$
|
67,693
|
|
|
As a percentage of subscription and support revenue, non-GAAP
|
|
|
81.9
|
%
|
|
|
82.5
|
%
|
|
|
80.6
|
%
|
|
|
80.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, professional services
|
|
|
$
|
2,433
|
|
|
|
$
|
1,979
|
|
|
|
$
|
9,715
|
|
|
|
$
|
8,781
|
|
|
Add back: Stock-based compensation
|
|
|
100
|
|
|
|
90
|
|
|
|
315
|
|
|
|
251
|
|
|
Gross profit, professional services, non-GAAP
|
|
|
$
|
2,533
|
|
|
|
$
|
2,069
|
|
|
|
$
|
10,030
|
|
|
|
$
|
9,032
|
|
|
As a percentage of professional services revenue, non-GAAP
|
|
|
29.9
|
%
|
|
|
32.1
|
%
|
|
|
36.5
|
%
|
|
|
42.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as reported
|
|
|
$
|
31,976
|
|
|
|
$
|
26,492
|
|
|
|
$
|
93,855
|
|
|
|
$
|
76,199
|
|
|
Add back: Stock-based compensation
|
|
|
222
|
|
|
|
182
|
|
|
|
680
|
|
|
|
526
|
|
|
Gross profit, non-GAAP
|
|
|
$
|
32,198
|
|
|
|
$
|
26,674
|
|
|
|
$
|
94,535
|
|
|
|
$
|
76,725
|
|
|
As percentage of revenue, non-GAAP
|
|
|
72.0
|
%
|
|
|
73.5
|
%
|
|
|
71.5
|
%
|
|
|
72.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, as reported
|
|
|
$
|
14,342
|
|
|
|
$
|
12,766
|
|
|
|
$
|
42,905
|
|
|
|
$
|
36,970
|
|
|
Less: Stock-based compensation
|
|
|
594
|
|
|
|
586
|
|
|
|
1,787
|
|
|
|
1,289
|
|
|
Research and development, non-GAAP
|
|
|
$
|
13,748
|
|
|
|
$
|
12,180
|
|
|
|
$
|
41,118
|
|
|
|
$
|
35,681
|
|
|
As percentage of revenue, non-GAAP
|
|
|
30.7
|
%
|
|
|
33.6
|
%
|
|
|
31.1
|
%
|
|
|
33.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing, as reported
|
|
|
$
|
22,354
|
|
|
|
$
|
20,903
|
|
|
|
$
|
62,270
|
|
|
|
$
|
50,937
|
|
|
Less: Stock-based compensation
|
|
|
567
|
|
|
|
461
|
|
|
|
1,471
|
|
|
|
1,243
|
|
|
Sales and marketing, non-GAAP
|
|
|
$
|
21,787
|
|
|
|
$
|
20,442
|
|
|
|
$
|
60,799
|
|
|
|
$
|
49,694
|
|
|
As percentage of revenue, non-GAAP
|
|
|
48.7
|
%
|
|
|
56.4
|
%
|
|
|
46.0
|
%
|
|
|
47.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative, as reported
|
|
|
$
|
8,015
|
|
|
|
$
|
7,153
|
|
|
|
$
|
24,850
|
|
|
|
$
|
20,178
|
|
|
Less: Stock-based compensation
|
|
|
2,287
|
|
|
|
1,853
|
|
|
|
6,624
|
|
|
|
4,818
|
|
|
General and administrative, non-GAAP
|
|
|
$
|
5,728
|
|
|
|
$
|
5,300
|
|
|
|
$
|
18,226
|
|
|
|
$
|
15,360
|
|
|
As percentage of revenue, non-GAAP
|
|
|
12.8
|
%
|
|
|
14.6
|
%
|
|
|
13.8
|
%
|
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
$
|
(12,735
|
)
|
|
|
$
|
(14,330
|
)
|
|
|
$
|
(36,170
|
)
|
|
|
$
|
(31,886
|
)
|
|
Add back: Stock-based compensation
|
|
|
3,670
|
|
|
|
3,082
|
|
|
|
10,562
|
|
|
|
7,876
|
|
|
Loss from operations, non-GAAP
|
|
|
$
|
(9,065
|
)
|
|
|
$
|
(11,248
|
)
|
|
|
$
|
(25,608
|
)
|
|
|
$
|
(24,010
|
)
|
|
As percentage of revenue, non-GAAP
|
|
|
(20.3
|
)%
|
|
|
(31.0
|
)%
|
|
|
(19.4
|
)%
|
|
|
(22.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(12,891
|
)
|
|
|
$
|
(14,630
|
)
|
|
|
$
|
(36,461
|
)
|
|
|
$
|
(33,106
|
)
|
|
Add back: Stock-based compensation
|
|
|
3,670
|
|
|
|
3,082
|
|
|
|
10,562
|
|
|
|
7,876
|
|
|
Net loss, non-GAAP
|
|
|
$
|
(9,221
|
)
|
|
|
$
|
(11,548
|
)
|
|
|
$
|
(25,899
|
)
|
|
|
$
|
(25,230
|
)
|
|
As percentage of revenue, non-GAAP
|
|
|
(20.6
|
)%
|
|
|
(31.8
|
)%
|
|
|
(19.6
|
)%
|
|
|
(23.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per basic and diluted share:
|
|
|
$
|
(0.32
|
)
|
|
|
$
|
(0.37
|
)
|
|
|
$
|
(0.90
|
)
|
|
|
$
|
(0.83
|
)
|
|
Add back: Stock-based compensation
|
|
|
0.09
|
|
|
|
0.08
|
|
|
|
0.26
|
|
|
|
0.20
|
|
|
Net loss per basic and diluted share, non-GAAP
|
|
|
$
|
(0.23
|
)
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
(0.64
|
)
|
|
|
$
|
(0.63
|
)
|
|
Weighted average common shares outstanding - basic
and
diluted, non-GAAP
|
|
|
40,762,960
|
|
|
|
39,980,308
|
|
|
|
40,603,430
|
|
|
|
39,735,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE II
|
|
WORKIVA INC.
|
|
RECONCILIATION OF NON-GAAP GUIDANCE
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
Three months ending
December 31, 2016
|
|
|
Year ending December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations, GAAP range
|
|
|
$
|
(11,800
|
)
|
|
-
|
$
|
(12,300
|
)
|
|
|
$
|
(48,000
|
)
|
|
-
|
$
|
(48,500
|
)
|
|
Add back: Stock-based compensation
|
|
|
3,800
|
|
|
|
3,800
|
|
|
|
14,400
|
|
|
|
14,400
|
|
|
Loss from operations, non-GAAP range
|
|
|
$
|
(8,000
|
)
|
|
-
|
$
|
(8,500
|
)
|
|
|
$
|
(33,600
|
)
|
|
-
|
$
|
(34,100
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, GAAP range
|
|
|
$
|
(0.30
|
)
|
|
-
|
$
|
(0.31
|
)
|
|
|
$
|
(1.19
|
)
|
|
-
|
$
|
(1.20
|
)
|
|
Add back: Stock-based compensation
|
|
|
0.10
|
|
|
|
0.10
|
|
|
|
0.35
|
|
|
|
0.35
|
|
|
Net loss per share, non-GAAP range
|
|
|
$
|
(0.20
|
)
|
|
-
|
$
|
(0.21
|
)
|
|
|
$
|
(0.84
|
)
|
|
-
|
$
|
(0.85
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic
and diluted
|
|
|
41,000,000
|
|
|
|
41,000,000
|
|
|
|
40,700,000
|
|
|
|
40,700,000
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161109006233/en/
Source: Workiva Inc.