Workiva Announces Fourth Quarter and Full Year 2020 Financial Results

February 17, 2021

Q4 Subscription and Support Revenue of $81.0 Million, up 22.4% from Q4 2019

Q4 Total Revenue of $93.8 Million, up 16.9% from Q4 2019

Full Year 2020 Total Revenue of $351.6 Million, up 18.0% from 2019

Workiva Inc. (NYSE:WK), the company that simplifies complex work, today announced financial results for its fourth quarter and full year ended December 31, 2020.

"We are pleased with our fourth quarter and full year 2020 results, which beat guidance for revenue and operating income," said Marty Vanderploeg, Chief Executive Officer.

"We have successfully upgraded all of our customers to our new platform, which is more open and scalable," added Vanderploeg. "With the upgrade now complete, we are prioritizing three areas where we see opportunities for revenue growth: development and deployment of fit-for-purpose solutions, global expansion and our partner ecosystem."

"On the strength of record subscription bookings in the fourth quarter, we are raising guidance for fiscal 2021 revenue," said Stuart Miller, Chief Financial Officer.

Fourth Quarter 2020 Financial Highlights

  • Revenue: Total revenue for the fourth quarter of 2020 reached$93.8 million, an increase of 16.9% from $80.3 million in the fourth quarter of 2019. Subscription and support revenue contributed $81.0 million, up 22.4% versus the fourth quarter of 2019. Professional services revenue was $12.9 million, a decrease of 8.9% compared to the same quarter in the prior year.
  • Gross Profit: GAAP gross profit for the fourth quarter of 2020 was $70.2 million compared with $57.2 million in the same quarter of 2019. GAAP gross margin was 74.8% versus 71.3% in the fourth quarter of 2019. Non-GAAP gross profit for the fourth quarter of 2020 was $71.0 million, an increase of 22.2% compared with the prior year's fourth quarter, and non-GAAP gross margin was 75.6% compared to 72.3% in the fourth quarter of 2019.
  • Results from Operations: GAAP loss from operations for the fourth quarter of 2020 was $5.1 million compared with a loss of $14.4 million in the prior year's fourth quarter. Non-GAAP income from operations was $5.2 million, compared with non-GAAP loss from operations of $4.6 million in the fourth quarter of 2019.
  • GAAP Net Loss: GAAP net loss for the fourth quarter of 2020 was $8.0 million compared with a net loss of $16.1 million for the prior year's fourth quarter. GAAP net loss per basic and diluted share was $0.16 compared with a net loss per basic and diluted share of $0.34 in the fourth quarter of 2019.
  • Non-GAAP Net Income/Loss: Non-GAAP net income for the fourth quarter of 2020 was $4.6 million compared with a net loss of $4.1 million in the prior year's fourth quarter. Non-GAAP net income per basic and diluted share was $0.09 and $0.09, respectively, compared with a net loss per basic and diluted share of $0.09, in the fourth quarter of 2019.
  • Liquidity: As of December 31, 2020, Workiva had cash, cash equivalents and marketable securities totaling $530.0 million, compared with $488.0 million as of December 31, 2019. Workiva had $345.0 million aggregate principal amount of 1.125% convertible senior notes due in 2026 and $18.4 million of other financing obligations outstanding as of December 31, 2020.

Key Metrics and Recent Business Highlights

  • Customers: Workiva had 3,723 customers as of December 31, 2020, a net increase of 213 customers from December 31, 2019.
  • Revenue Retention Rate: As of December 31, 2020, Workiva's revenue retention rate (excluding add-on revenue) was 95.0%, and the revenue retention rate including add-on revenue was 109.5%. Add-on revenue includes changes in both solutions and pricing for existing customers.
  • Large Contracts: As of December 31, 2020, Workiva had 847 customers with an annual contract value (ACV) of more than $100,000, up 30% from 652 customers at December 31, 2019. Workiva had 419 customers with an ACV of more than $150,000, up 47% from 285 customers in the fourth quarter of 2019.

Full Year 2020 Financial Highlights

  • Revenue: Total revenue for the full year 2020 was $351.6 million, an increase of 18.0% compared with $297.9 million in the prior year. Subscription and support revenue was $295.9 million, an increase of 20.4% on a year-over-year basis.
  • Gross Profit: GAAP gross profit for 2020 was $261.4 million compared with $212.9 million in the prior year. GAAP gross margin was 74.4% in 2020. Non-GAAP gross profit was $264.6 million, an increase of 22.4% compared with the prior year, and non-GAAP gross margin was 75.2%.
  • Results from Operations: GAAP loss from operations for the full year 2020 was $37.8 million compared with a loss from operations of $45.4 million in the prior year. Non-GAAP income from operations was $8.0 million compared with a loss from operations of $9.6 million in 2019.
  • GAAP Net Loss: GAAP net loss for 2020 was $48.4 million compared with a net loss of $47.5 million in the prior year. GAAP net loss per basic and diluted share was $1.00 compared with a loss per basic and diluted share of $1.03 in 2019.
  • Non-GAAP Net Income/Loss: Non-GAAP net income for 2020 was $6.3 million compared with a net loss of $8.4 million in the prior year. Non-GAAP net income per basic and diluted share was $0.13 and $0.12, respectively, compared with a non-GAAP net loss per basic and diluted share of $0.18 in 2019.
  • Cash Flow: Net cash provided by operating activities was $33.2 million in 2020, compared to cash provided by operating activities of $30.9 million in 2019.

Financial Outlook

As of February 17, 2021, Workiva is providing guidance as follows:

First Quarter 2021 Guidance:

  • Total revenue is expected to be in the range of $100.0 million to $101.0 million.
  • GAAP loss from operations is expected to be in the range of $8.5 million to $7.5 million.
  • Non-GAAP income from operations is expected to be in the range of $4.0 million to $5.0 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $0.23 to $0.21.
  • Non-GAAP net income per basic share is expected to be in the range of $0.06 to $0.08.
  • Net income (loss) per basic share is based on 50.2 million weighted-average shares outstanding.

Full Year 2021 Guidance:

  • Total revenue is expected to be in the range of $409.0 million to $411.0 million.
  • GAAP loss from operations is expected to be in the range of $71.0 million to $69.0 million.
  • Non-GAAP loss from operations is expected to be in the range of $12.0 million to $10.0 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $1.63 to $1.59.
  • Non-GAAP net loss per basic share is expected to be in the range of $0.30 to $0.26.
  • Net income (loss) per basic share is based on 51.4 million weighted-average shares outstanding.

Workiva has factored into its guidance the expected impacts of COVID-19 on its business and results of operations based on currently available information. Significant variation from these assumptions could cause the company to change its guidance, and it undertakes no obligation to update its assumptions, expectations or guidance. These statements are forward-looking, and actual results may differ materially, as further discussed below under the heading "Safe Harbor Statement."

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 fourth quarter, in addition to discussing the Company’s outlook for the first quarter and full year 2021. To access this call, dial 833-968-1977 (U.S. domestic) or 647-689-6649 (international). The conference ID is 9516867. 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 February 24, 2021, at 800-585-8367 (U.S. domestic) or 416-621-4642 (international). The replay pass code is 9516867. 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 Inc. (NYSE: WK) simplifies complex work for thousands of organizations worldwide. Customers trust Workiva’s open, intelligent and intuitive platform to connect data, documents and teams. The results: more efficiency, greater transparency and less risk. Learn more at workiva.com.

Read the Workiva blog: www.workiva.com/blog 
Follow Workiva on LinkedIn: www.linkedin.com/company/workiva 
Like Workiva on Facebook: www.facebook.com/workiva 
Follow Workiva on Twitter: www.twitter.com/workiva

Non-GAAP Financial Measures

The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation and non-cash interest expense. 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) and non-GAAP net income (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 income(loss) from operations is calculated by excluding stock-based compensation expense from loss from operations. Non-GAAP net income (loss) is calculated by excluding stock-based compensation expense, net of tax, and non-cash interest expense related to our convertible senior notes 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. Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be accounted for as separate liability and equity components in a manner that reflects our non-convertible debt borrowing rate. This results in the debt component being treated as though it was issued at a discount, with the debt discount being accreted as additional non-cash interest expense over the term of the notes using the effective interest method. As a result, we believe that excluding this non-cash interest expense attributable to the debt discount in calculating our non-GAAP measures is useful because this interest expense does not represent a cash outflow and is not indicative of our ongoing operational performance. 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.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)

 

Three months ended

December 31,

 

Year ended December 31,

 

2020

 

2019

 

2020

 

2019

 

(unaudited)

 

 

 

 

Revenue

 

 

 

 

 

 

 

Subscription and support

$

80,970

 

 

$

66,148

 

 

$

295,877

 

 

$

245,765

 

Professional services

12,864

 

 

14,117

 

 

55,717

 

 

52,126

 

Total revenue

93,834

 

 

80,265

 

 

351,594

 

 

297,891

 

Cost of revenue

 

 

 

 

 

 

 

Subscription and support (1)

13,239

 

 

11,946

 

 

49,503

 

 

42,881

 

Professional services (1)

10,412

 

 

11,102

 

 

40,674

 

 

42,131

 

Total cost of revenue

23,651

 

 

23,048

 

 

90,177

 

 

85,012

 

Gross profit

70,183

 

 

57,217

 

 

261,417

 

 

212,879

 

Operating expenses

 

 

 

 

 

 

 

Research and development (1)

24,386

 

 

23,216

 

 

94,844

 

 

89,921

 

Sales and marketing (1)

37,813

 

 

33,732

 

 

144,687

 

 

120,300

 

General and administrative (1)

13,124

 

 

14,675

 

 

59,688

 

 

48,064

 

Total operating expenses

75,323

 

 

71,623

 

 

299,219

 

 

258,285

 

Loss from operations

(5,140

)

 

(14,406

)

 

(37,802

)

 

(45,406

)

Interest income

450

 

 

2,064

 

 

3,282

 

 

4,657

 

Interest expense

(3,497

)

 

(3,456

)

 

(13,964

)

 

(6,027

)

Other expense, net

(468

)

 

(305

)

 

(205

)

 

(564

)

Loss before (benefit) provision for income taxes

(8,655

)

 

(16,103

)

 

(48,689

)

 

(47,340

)

(Benefit) provision for income taxes

(642

)

 

38

 

 

(291

)

 

139

 

Net loss

$

(8,013

)

 

$

(16,141

)

 

$

(48,398

)

 

$

(47,479

)

Net loss per common share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.16

)

 

$

(0.34

)

 

$

(1.00

)

 

$

(1.03

)

Weighted-average common shares outstanding - basic and diluted

49,222,465

 

 

47,058,209

 

 

48,448,166

 

 

46,302,656

 

(1) Includes stock-based compensation expense as follows:

 

Three months ended

December 31,

 

Year ended December 31,

 

2020

 

2019

 

2020

 

2019

 

(unaudited)

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

Subscription and support

$

416

 

 

$

412

 

 

$

1,709

 

 

$

1,554

 

Professional services

372

 

 

429

 

 

1,434

 

 

1,725

 

Operating expenses

 

 

 

 

 

 

 

Research and development

2,310

 

 

1,990

 

 

8,100

 

 

8,006

 

Sales and marketing

2,695

 

 

2,593

 

 

11,062

 

 

8,792

 

General and administrative

4,547

 

 

4,431

 

 

23,466

 

 

15,707

 

 

WORKIVA INC.

CONSOLIDATED BALANCE SHEETS
(in thousands)

 

As of December 31,

 

2020

 

2019

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

322,831

 

 

$

381,742

 

Marketable securities

207,207

 

 

106,214

 

Accounts receivable, net

68,922

 

 

60,228

 

Deferred costs

21,923

 

 

14,108

 

Other receivables

3,155

 

 

2,432

 

Prepaid expenses and other

9,047

 

 

6,508

 

Total current assets

633,085

 

 

571,232

 

Property and equipment, net

29,365

 

 

32,300

 

Operating lease right-of-use assets

15,844

 

 

15,352

 

Deferred costs, non-current

23,421

 

 

14,977

 

Intangible assets, net

1,583

 

 

1,651

 

Other assets

3,708

 

 

3,439

 

Total assets

$

707,006

 

 

$

638,951

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

2,843

 

 

$

7,057

 

Accrued expenses and other current liabilities

68,256

 

 

49,799

 

Deferred revenue

208,990

 

 

173,617

 

Finance lease obligations

1,705

 

 

1,629

 

Total current liabilities

281,794

 

 

232,102

 

Convertible senior notes, net

289,490

 

 

280,601

 

Deferred revenue, non-current

35,894

 

 

32,569

 

Other long-term liabilities

1,680

 

 

1,498

 

Operating lease liabilities, non-current

17,209

 

 

18,564

 

Finance lease obligations, non-current

16,662

 

 

19,415

 

Total liabilities

642,729

 

 

584,749

 

Stockholders’ equity

 

 

 

Common stock

49

 

 

47

 

Additional paid-in-capital

478,698

 

 

420,170

 

Accumulated deficit

(414,700

)

 

(366,302

)

Accumulated other comprehensive income

230

 

 

287

 

Total stockholders’ equity

64,277

 

 

54,202

 

Total liabilities and stockholders’ equity

$

707,006

 

 

$

638,951

 

 

WORKIVA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 

Three months ended

December 31,

 

Year ended December 31,

 

2020

 

2019

 

2020

 

2019

 

(unaudited)

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(8,013

)

 

$

(16,141

)

 

$

(48,398

)

 

$

(47,479

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

1,101

 

 

1,149

 

 

4,296

 

 

3,844

 

Stock-based compensation expense

10,340

 

 

9,855

 

 

45,771

 

 

35,784

 

Provision for (recovery of) doubtful accounts

32

 

 

(34

)

 

(159

)

 

(92

)

Amortization of premiums and discounts on marketable securities, net

349

 

 

102

 

 

668

 

 

13

 

Amortization of debt discount and issuance costs

2,248

 

 

2,179

 

 

8,889

 

 

3,262

 

Deferred income tax

68

 

 

2

 

 

 

 

(65

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

(12,833

)

 

(16,364

)

 

(8,028

)

 

5,166

 

Deferred costs

(9,572

)

 

(2,300

)

 

(15,953

)

 

(10,268

)

Operating lease right-of-use asset

914

 

 

747

 

 

3,906

 

 

2,552

 

Other receivables

(709

)

 

(780

)

 

(680

)

 

(1,250

)

Prepaid expenses

564

 

 

1,653

 

 

(2,492

)

 

(2,084

)

Other assets

385

 

 

489

 

 

(215

)

 

(1,860

)

Accounts payable

(851

)

 

1,993

 

 

(4,106

)

 

2,153

 

Deferred revenue

26,165

 

 

17,927

 

 

37,479

 

 

32,039

 

Operating lease liability

(1,087

)

 

(809

)

 

(4,525

)

 

(3,035

)

Accrued expenses and other liabilities

4,252

 

 

2,399

 

 

16,790

 

 

12,238

 

Net cash provided by operating activities

13,353

 

 

2,067

 

 

33,243

 

 

30,918

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

(110

)

 

(244

)

 

(1,873

)

 

(3,104

)

Purchase of marketable securities

(130,657

)

 

(17,099

)

 

(175,926

)

 

(112,565

)

Sale of marketable securities

 

 

 

 

11,423

 

 

498

 

Maturities of marketable securities

20,585

 

 

6,450

 

 

62,922

 

 

26,840

 

Purchase of intangible assets

(43

)

 

(22

)

 

(296

)

 

(734

)

Other

 

 

 

 

 

 

(1,000

)

Net cash used in investing activities

(110,225

)

 

(10,915

)

 

(103,750

)

 

(90,065

)

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from option exercises

4,936

 

 

1,659

 

 

19,189

 

 

24,152

 

Taxes paid related to net share settlements of stock-based compensation awards

(11,546

)

 

 

 

(13,657

)

 

(390

)

Proceeds from shares issued in connection with employee stock purchase plan

 

 

 

 

7,227

 

 

4,922

 

Proceeds from the issuance of convertible senior notes, net of issuance costs

 

 

 

 

 

 

335,899

 

Principal payments on finance lease obligations

(429

)

 

(392

)

 

(1,641

)

 

(1,565

)

Net cash (used in) provided by financing activities

(7,039

)

 

1,267

 

 

11,118

 

 

363,018

 

Effect of foreign exchange rates on cash

610

 

 

199

 

 

478

 

 

287

 

Net (decrease) increase in cash and cash equivalents

(103,301

)

 

(7,382

)

 

(58,911

)

 

304,158

 

Cash and cash equivalents at beginning of period

426,132

 

 

389,124

 

 

381,742

 

 

77,584

 

Cash and cash equivalents at end of period

$

322,831

 

 

$

381,742

 

 

$

322,831

 

 

$

381,742

 

 

TABLE I
WORKIVA INC.
RECONCILIATION OF NON-GAAP INFORMATION
(in thousands, except share and per share)

 

Three months ended December 31,

 

Year ended December 31,

 

2020

 

2019

 

2020

 

2019

Gross profit, subscription and support

$

67,731

 

 

$

54,202

 

 

$

246,374

 

 

$

202,884

 

Add back: Stock-based compensation

416

 

 

412

 

 

1,709

 

 

1,554

 

Gross profit, subscription and support, non-GAAP

$

68,147

 

 

$

54,614

 

 

$

248,083

 

 

$

204,438

 

As a percentage of subscription and support revenue, non-GAAP

84.2

%

 

82.6

%

 

83.8

%

 

83.2

%

 

 

 

 

 

 

 

 

Gross profit, professional services

$

2,452

 

 

$

3,015

 

 

$

15,043

 

 

$

9,995

 

Add back: Stock-based compensation

372

 

 

429

 

 

1,434

 

 

1,725

 

Gross profit, professional services, non-GAAP

$

2,824

 

 

$

3,444

 

 

$

16,477

 

 

$

11,720

 

As a percentage of professional services revenue, non-GAAP

22.0

%

 

24.4

%

 

29.6

%

 

22.5

%

 

 

 

 

 

 

 

 

Gross profit

$

70,183

 

 

$

57,217

 

 

$

261,417

 

 

$

212,879

 

Add back: Stock-based compensation

788

 

 

841

 

 

3,143

 

 

3,279

 

Gross profit, non-GAAP

$

70,971

 

 

$

58,058

 

 

$

264,560

 

 

$

216,158

 

As percentage of revenue, non-GAAP

75.6

%

 

72.3

%

 

75.2

%

 

72.6

%

 

 

 

 

 

 

 

 

Cost of revenue, subscription and support

$

13,239

 

 

$

11,946

 

 

$

49,503

 

 

$

42,881

 

Less: Stock-based compensation

416

 

 

412

 

 

1,709

 

 

1,554

 

Cost of revenue, subscription and support, non-GAAP

$

12,823

 

 

$

11,534

 

 

$

47,794

 

 

$

41,327

 

As percentage of revenue, non-GAAP

13.7

%

 

14.4

%

 

13.6

%

 

13.9

%

 

 

 

 

 

 

 

 

Cost of revenue, professional services

$

10,412

 

 

$

11,102

 

 

$

40,674

 

 

$

42,131

 

Less: Stock-based compensation

372

 

 

429

 

 

1,434

 

 

1,725

 

Cost of revenue, professional services, non-GAAP

$

10,040

 

 

$

10,673

 

 

$

39,240

 

 

$

40,406

 

As percentage of revenue, non-GAAP

10.7

%

 

13.3

%

 

11.2

%

 

13.6

%

 

 

 

 

 

 

 

 

Research and development

$

24,386

 

 

$

23,216

 

 

$

94,844

 

 

$

89,921

 

Less: Stock-based compensation

2,310

 

 

1,990

 

 

8,100

 

 

8,006

 

Research and development, non-GAAP

$

22,076

 

 

$

21,226

 

 

$

86,744

 

 

$

81,915

 

As percentage of revenue, non-GAAP

23.5

%

 

26.4

%

 

24.7

%

 

27.5

%

 

 

 

 

 

 

 

 

Sales and marketing

$

37,813

 

 

$

33,732

 

 

$

144,687

 

 

$

120,300

 

Less: Stock-based compensation

2,695

 

 

2,593

 

 

11,062

 

 

8,792

 

Sales and marketing, non-GAAP

$

35,118

 

 

$

31,139

 

 

$

133,625

 

 

$

111,508

 

As percentage of revenue, non-GAAP

37.4

%

 

38.8

%

 

38.0

%

 

37.4

%

 

 

 

 

 

 

 

 

General and administrative

$

13,124

 

 

$

14,675

 

 

$

59,688

 

 

$

48,064

 

Less: Stock-based compensation

4,547

 

 

4,431

 

 

23,466

 

 

15,707

 

General and administrative, non-GAAP

$

8,577

 

 

$

10,244

 

 

$

36,222

 

 

$

32,357

 

As percentage of revenue, non-GAAP

9.1

%

 

12.8

%

 

10.3

%

 

10.9

%

 

 

 

 

 

 

 

 

Loss from operations

$

(5,140)

 

 

$

(14,406)

 

 

$

(37,802)

 

 

$

(45,406)

 

Add back: Stock-based compensation

10,340

 

 

9,855

 

 

45,771

 

 

35,784

 

Income (loss) from operations, non-GAAP

$

5,200

 

 

$

(4,551)

 

 

$

7,969

 

 

$

(9,622)

 

As percentage of revenue, non-GAAP

5.5

%

 

(5.7)

%

 

2.3

%

 

(3.2)

%

 

 

 

 

 

 

 

 

Net loss

$

(8,013)

 

 

$

(16,141)

 

 

$

(48,398)

 

 

$

(47,479)

 

Add back: Stock-based compensation

10,340

 

 

9,855

 

 

45,771

 

 

35,784

 

Add back: Non-cash interest expense related to convertible senior notes

2,248

 

 

2,179

 

 

8,889

 

 

3,263

 

Net income (loss), non-GAAP

$

4,575

 

 

$

(4,107)

 

 

$

6,262

 

 

$

(8,432)

 

As percentage of revenue, non-GAAP

4.9

%

 

(5.1)

%

 

1.8

%

 

(2.8)

%

 

 

 

 

 

 

 

 

Net loss per basic and diluted share:

$

(0.16)

 

 

$

(0.34)

 

 

$

(1.00)

 

 

$

(1.03)

 

Add back: Stock-based compensation

0.20

 

 

0.20

 

 

0.95

 

 

0.78

 

Add back: Non-cash interest expense related to convertible senior notes

0.05

 

 

0.05

 

 

0.18

 

 

0.07

 

Net income (loss) per basic share, non-GAAP

$

0.09

 

 

$

(0.09)

 

 

$

0.13

 

 

$

(0.18)

 

Net income (loss) per diluted share, non-GAAP

$

0.09

 

 

$

(0.09)

 

 

$

0.12

 

 

$

(0.18)

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic, non-GAAP

49,222,465

 

 

47,058,209

 

 

48,448,166

 

 

46,302,656

 

Weighted-average common shares outstanding - diluted, non-GAAP

53,776,276

 

 

47,058,209

 

 

52,864,771

 

 

46,302,656

 

 

TABLE II
WORKIVA INC.
RECONCILIATION OF NON-GAAP GUIDANCE
(in thousands, except share and per share data)

 

Three months ending March 31, 2021

 

Year ending December 31, 2021

 

 

 

 

 

 

 

 

Loss from operations, GAAP range

$

(8,500

)

-

$

(7,500

)

 

$

(71,000

)

-

$

(69,000

)

Add back: Stock-based compensation

12,500

 

 

12,500

 

 

59,000

 

 

59,000

 

Income (loss) from operations, non-GAAP range

$

4,000

 

-

$

5,000

 

 

$

(12,000

)

-

$

(10,000

)

 

 

 

 

 

 

 

 

Net loss per share, GAAP range

$

(0.23

)

-

$

(0.21

)

 

$

(1.63

)

-

$

(1.59

)

Add back: Stock-based compensation

0.25

 

 

0.25

 

 

1.15

 

 

1.15

 

Add back: Non-cash interest expense related to convertible senior notes

0.04

 

 

0.04

 

 

0.18

 

 

0.18

 

Net income (loss) per share, basic, non-GAAP range

$

0.06

 

-

$

0.08

 

 

$

(0.30

)

-

$

(0.26

)

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic

50,200,000

 

 

50,200,000

 

 

51,400,000

 

 

51,400,000

 

Investor Contact:
Adam Terese
Workiva Inc.
investor@workiva.com
(515) 663-4493

Media Contact:
Kevin McCarthy
Workiva Inc.
press@workiva.com
(515) 663-4471

Source: Workiva Inc.

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