In This Article:
-
Total Revenue: $185.6 million, a growth of 17% over Q3 2023.
-
Subscription Revenue: $171 million, up 19% from Q3 2023.
-
Professional Services Revenue: $14.6 million, slightly down from Q3 2023.
-
Gross Margin: Improved by 170 basis points to 79%.
-
Operating Profit: $7.6 million, with a 70 basis point improvement in operating margin to 4%.
-
Cash and Marketable Securities: $776 million, an increase of $36 million from Q2 2024.
-
Cash Provided by Operating Activities: $19 million, compared to $15 million in Q3 2023.
-
Customer Count: 6,237 customers, an increase of 292 from Q3 2023.
-
Gross Revenue Retention Rate: 97.5%.
-
Net Revenue Retention Rate: 110.5%.
-
Contracts Over $100,000: 1,926, up 23% from Q3 2023.
-
Contracts Over $300,000: 383, up 29% from Q3 2023.
-
Contracts Over $500,000: 166, up 28% from Q3 2023.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Workiva Inc (NYSE:WK) reported a strong Q3 performance with subscription revenue growing at 19% and total revenue growing at 17%, exceeding the high end of their revenue guidance.
-
The company achieved a record bookings quarter, driven by broad-based demand across their solution portfolio and a higher volume of account expansion deals.
-
Workiva Inc (NYSE:WK) delivered a standout performance in sustainability management and reporting, with significant contributions from their ESG and Workiva Carbon solutions.
-
The company raised its full-year 2024 revenue guidance by $6 million and improved its operating margin, reflecting confidence in their growth strategy.
-
Workiva Inc (NYSE:WK) continues to see strong customer retention, with a gross revenue retention rate of 97.5% and a net revenue retention rate of 110.5%.
Negative Points
-
Despite the positive results, Workiva Inc (NYSE:WK) faces increasing competition in the ESG space, with new point solutions entering the market.
-
The company is still in the process of ramping up newly hired sales representatives, which can take 6 to 12 months, potentially delaying immediate sales impact.
-
Workiva Inc (NYSE:WK) is experiencing a decline in setup and consulting services revenue, partially offset by growth in XBRL services revenue.
-
The company has not built any return to capital markets into their models, indicating uncertainty in that area.
-
Workiva Inc (NYSE:WK) is still working through changes in their go-to-market strategy, including shrinking territories and adjusting sales team ratios, which are ongoing processes.