How did WK's Q4 earnings surprise investors?

Workiva's (WK) Q4 earnings did not surprise investors in a positive light, as the company's performance fell short of expectations. Here's a detailed analysis:

1. **Missed Earnings Estimate**: Workiva reported quarterly earnings of $0.21 per share, which was below the Zacks Consensus Estimate of $0.23 per share. This discrepancy led to an earnings surprise of -8.70%.
2. **Financial Performance**: The company's net loss for the quarter was $17 million, resulting in a loss of $0.31 per share. Despite an improvement from a loss of $0.65 per share in the same quarter the previous year, the negative earnings per share (EPS) and the reported net loss likely contributed to the negative surprise.

3. **Revenue Growth**: Workiva's revenue for the quarter was not disclosed in the earnings surprise article. However, according to another source, the company's revenue for the third quarter of 2024 was $185.6 million, representing a 17% increase from the previous year's third quarter. This growth might have been insufficient to offset the negative impact of the earnings miss.
4. **Analyst Expectations**: Prior to the earnings release, analysts expected the company to announce earnings of $0.23 per share for the quarter. This expectation was not met, contributing to the negative surprise.
5. **Market Reaction**: The market's reaction to the earnings report was not provided in the available sources. However, the fact that the company missed earnings estimates could have led to a negative reaction from investors.

In conclusion, Workiva's Q4 earnings fell short of investor expectations, resulting in an earnings surprise to the downside. The company's negative EPS, net loss, and missed earnings estimate contributed to this outcome.