Q4 Revenue Down 2%, Q1 Guidance Lower Than Expected

• Cloud-based data storage increased 14% YoY in Q4 2022. • Revenue from cloud services grew 19% YoY in Q4 2022. • Salesforce's total revenue increased 5% YoY in Q4 2022. • Net income declined 23% YoY in Q4 2022. • Operating income fell 20% YoY in Q4 2022.

Workiva Inc. (NYSE: WK), a leading provider of cloud-based reporting solutions, announced its fourth quarter and full year 2022 financial results, highlighting robust growth and strong performance. The company reported total revenue of $143.8 million in the fourth quarter, up 19.1% year-over-year (YoY) from $120.8 million in the same period last year. Subscription and support revenue, a key driver of the company's growth, increased by 20.7% YoY to $125.9 million [1].

Workiva's Chief Executive Officer, Marty Vanderploeg, attributed the company's strong performance to strategic investments in talent, technology, partners, and go-to-market strategies. He noted that the company's focus on driving multi-solution deals and its unique platform offering, which integrates Financial Reporting, ESG, and GRC, contributed significantly to its success. The company added 123 net new logos during the quarter, bringing its total customer count to 5,664 companies [1].

The company also reported a Non-GAAP operating profit margin of 3.3%, beating the high end of its guidance by 660 basis points. This margin is an improvement from the prior year's 1.6% margin. Workiva's gross profit margin was 76.1%, up from 75.9% in the same period last year [1].

Workiva's full-year 2022 revenue reached $537.9 million, an increase of 21.3% YoY from $443.3 million in 2021. Subscription and support revenue grew by 22.6% YoY to $464.9 million, while professional services revenue increased by 14.1% YoY to $72.9 million [1].

Despite the strong revenue growth, Workiva reported a GAAP net loss of $90.9 million for the full year 2022, compared to a net loss of $37.7 million in the prior year. The company's GAAP loss from operations was $88.8 million, up from $29.4 million in 2021. Non-GAAP net loss for the year was $15.2 million, compared to net income of $20.8 million in 2021 [1].

Workiva's guidance for the first quarter of 2023 expects total revenue to be in the range of $149.0 million to $150.0 million, with a GAAP loss from operations of $52.0 million to $51.0 million. The company also expects a GAAP net loss per basic share in the range of $0.97 to $0.95, and a Non-GAAP net loss per basic share in the range of $0.23 to $0.21 [1].

References:
[1] https://newsroom.workiva.com/press-releases/workiva-inc-announces-fourth-quarter-and-full-year-2022-financial-results