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Workiva Inc. WK is set to report second-quarter 2018 results on Aug 7. Notably, the company has surpassed the Zacks Consensus Estimate in the trailing four quarters, recording an average positive earnings surprise of 29.24%.
In first-quarter 2018, Workiva reported a loss of 9 cents per share, narrower than the Zacks Consensus Estimate of a loss of 19 cents. Revenues surged 15.4% to $59.9 million and exceeded the Zacks Consensus Estimate of $58 million.
What to Expect
Workiva expects non-GAAP net loss in the range of 24-25 cents per share in the to-be-reported quarter. The Zacks Consensus Estimate is pegged at a net loss of 24 cents per share.
For second-quarter 2018, management anticipates total revenues between $55.7 million and $56.2 million. The Zacks Consensus Estimate is pegged at $56.1 million, reflecting year over year growth of 13.6%.
Notably, Workiva stock has gained 30.8% in the past one year, substantially outperforming industry’s rally of 29%.
Let's see how things are shaping up for this announcement.
Factors to Impact Q2 Results
Workiva continues to focus on developing its flagship product, Wdesk cloud platform, which is used for collecting, integrating, managing and analyzing business data. Notably, the platform continues to gain traction. It is expected to boost top-line growth in the to-be reported quarter.
The company recently strengthened its flagship product, Wdesk platform by adding data preparation capabilities via Wdata. Notably, Wdata merges the company’s existing APIs and connectors with the newly data preparation capabilities. This process will aid the customers to enhance, link and capture large datasets to Workiva’s Wdesk platform.
In the recent past, Workiva partnered with Host Analytics, a cloud based provider of enterprise performance management (EPM) solutions. The companies together launched an API which realigns financial reporting processes. The customers will be able to import financial data from Host Analytics into Wdesk.
Workiva also entered into an original equipment manufacturer (“OEM”) agreement with enterprise-application software provider, SAP SE SAP. According to the OEM agreement, Wdesk platform will be incorporated with SAP Cloud Platform Integration. The “bundled” or comprehensive combined solutions will aid customers with auditability, control and linking features.
The company also integrated Wdesk platform with Anaplan’s Connected Planning platform to streamline the process of performance management reporting. Partnerships like Anaplan will aid Workiva capitalize on growth opportunities that the rapidly-growing Software-as-a-Service (SaaS) market presents.