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Did Workiva beat or miss consensus estimates last quarter?

- **Revenue Beat**: Q3 total revenue $224M (+21% YoY), sub revenue $210M (+23% YoY), beating high end of guidance.
- **Margin Expansion**: Non-GAAP op margin 12.7%, full-year guide raised to 9.2-9.4% (200bps improvement).
- **Large Deal Momentum**: Contracts over $500k up 42% YoY, with multi-solution wins in pharma, energy, and finance.
- **AI Innovation**: Launch of Intelligent solutions driving GRC deal wins and 25% expansion in a 13-year SEC customer.
- **Leadership Transition**: New CRO Michael Pinto to accelerate global sales and partner growth, replacing departing CCO Mike Hawkins.
- **Free Cash Flow**: FY25 margin guided to 12%, up from prior 10.5% due to op margin improvement.


**【CEO Summary Section】**
- **Revenue Growth**: Total revenue of $224 million, up 21% YoY, with subscription revenue at $210 million (23% YoY). Beat high end of guidance by $4 million.
- **Large Contracts**: Contracts over $100k increased 23%, $300k+ up 41%, and $500k+ up 42% YoY. Notable deals include a global pharma company expanding to 6 solutions and a European energy firm tripling spend.
- **Operating Margin**: Non-GAAP operating margin of 12.7%, 470bps beat vs. guide, leading to full-year margin guidance raise by 200bps to 9.2-9.4%.
- **AI & Platform**: Launch of Intelligent Finance, Sustainability, and GRC solutions at Amplify. AI-driven GRC deal with a defense contractor reduced consulting spend.
- **Leadership Update**: Mike Hawkins stepping down as CCO; Michael Pinto appointed CRO to drive global sales and partner growth.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $420M, Non-GAAP EPS $1.08 (vs. $1.05 est.). Free cash flow margin guided to 12% for FY25, up from prior 10.5%.
- **Balance Sheet**: $857M cash, $10M share buybacks. Remaining PTO balance $19M, expected decline in 2026.
- **Guidance**: Q4 revenue $234-236M, FY25 total $880-882M (21% sub rev growth). 2026 outlook: services flat, op margin progress towards 2027 targets.
- **PTO Impact**: U.S. PTO transition to flexible time off in 2026 may boost op margin but no cash impact.

**【Q&A Key Highlights】**
- **Sustainability Demand**: Softening regulatory tailwinds but strong non-regulatory deals (e.g., carbon accounting system replacement). FY25 sustainability NRR 114%.
- **International Growth**: Europe driving 19% of revenue (vs. 17% prior year). Multi-solution deals with Big 4 partners in Europe and North America.
- **Sales Efficiency**: CRO focus on scaling sales, optimizing coverage models, and partner-led growth. 40% of Q3 sub rev from new logos.
- **2026 Outlook**: Services flat YoY, op margin improvement in second half. AI and automation driving R&D efficiency.
- **IPO Activity**: Q3 saw 4 high-profile IPOs; expect rebound post-government shutdown. Private companies adopting Workiva for future SEC compliance.


Workiva Inc. (WK) Q3 2025 Earnings Call Transcript

- **Revenue Beat**: Q2 total revenue $215M (+21% YoY), subscription up 23%, exceeding guidance.
- **Margin Expansion**: Operating margin 3.8% vs. 2.5-3.0% guidance; 2025 target raised to 7-7.5%.
- **Large Deal Momentum**: Contracts over $100k up 27%, with multi-solution wins driving 71% of revenue.
- **Sustainability Moderation**: 15% of revenue, but long-term demand from regulations and stakeholder ESG focus.
- **AI Differentiation**: Secure, auditable platform with AI-driven efficiency gains.
- **Leadership Transition**: CFO Jill Klindt departing in December; search for successor underway.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 2025 total revenue of $215 million, up 21% YoY, with subscription revenue at $198 million (23% YoY). Beat high end of guidance by $5 million.
- **Strategic Pillars**: Emphasized connected platform, high-value solutions, partner ecosystem, and global expansion. Large contracts over $100k, $300k, and $500k grew 27%, 37%, and 35% YoY, respectively.
- **Profitable Growth**: Raised 2025 operating margin target to 7-7.5% (vs. prior 5-6%). 2027 and 2030 margin targets remain intact.
- **Key Wins**: 
  - U.S. bank expanded to $10M+ across financial reporting, GRC, and sustainability.
  - U.K. asset manager consolidated 4 solutions into 5-year deal.
  - South American utility replaced legacy systems with 5-solution platform.
- **Sustainability Update**: Moderated demand in corporate segment (15% of revenue), but long-term demand driven by regulations (CSRD, ISSB) and stakeholder expectations.
- **Leadership Transition**: CFO Jill Klindt stepping down in December 2025 after 17 years; search underway.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - Non-GAAP operating margin 3.8% (vs. guidance of 2.5-3.0%).
  - NRR 114% (vs. 109% Q2 2024), driven by 71% of revenue from multi-solution customers.
  - Cash balance $814 million; $10M share buyback under $100M program.
- **Guidance**: 
  - Q3 2025: Revenue $218-220 million, operating margin 7-8%.
  - FY2025: Revenue $870-873 million (up from $865-870M), operating margin 7-7.5%.
  - Free cash flow margin 10.5%.
- **FX Impact**: ~1% positive on revenue growth; included in risk-adjusted guidance.

**【Q&A Highlights】**
- **Capital Markets**: Steady revenue, potential upside from IPO activity (e.g., Figma, Shoulder Innovations).
- **Sustainability**: 15% of revenue, demand moderation in corporate segment but growth in new logos and account expansions.
- **AI Strategy**: Integrating AI into platform for efficiency, risk management, and compliance; trusted, secure environment differentiator.
- **Retention**: NRR 114% (excluding FX 110%+), driven by multi-solution sales and platform stickiness.
- **Headcount**: Focus on productivity and leverage; hiring decisions aligned with margin goals.


Workiva Inc. (WK) Q2 2025 Earnings Call Transcript

- **Revenue Beats Expectations**: Q1 Subscription revenue +20% YoY ($186M), driven by multi-solution deals and large contract expansion (>$100K contracts +23%).
- **Sustainability Growth**: Signed 6+ figure Sustainability Reporting deals with global firms, leveraging EU Omnibus clarity on 2025 CSRD deadlines.
- **Product Innovation**: Launched Fund Reporting Solution for ETFs, supporting 250+ entities, and adapted to SEC's EDGAR NEXT system.
- **Guidance Confidence**: Maintained 2025 Subscription growth target of 20% despite cautious macro environment, citing large TAM and platform differentiation.
- **Free Cash Flow Revision**: 2025 free cash flow margin adjusted to 10% due to potential booking delays, but reaffirmed 2027/2030 long-term targets.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue of $206M (+17% YoY), Subscription revenue $186M (+20% YoY), driven by broad-based demand across governance, risk, compliance (GRC), and financial reporting solutions. 
- **Large Contracts Expansion**: Contracts >$100K up 23% YoY, >$300K up 32%, and >$500K up 32%. Highlighted multi-solution deals with U.S. regional banks, APAC telecom firms, and European travel companies.
- **Sustainability Momentum**: Signed 6+ figure deals for Sustainability Reporting with global food & beverage and investment management firms. European Omnibus legislation clarified CSRD timelines, maintaining 2025 reporting deadlines for large companies.
- **Product Innovation**: Launched Fund Reporting Solution for ETFs, supporting 250+ entities. Adapted to SEC's EDGAR NEXT system launch in Q1.
- **Guidance**: Reaffirmed 2025 Subscription revenue growth target of 20%, despite cautious buying environment late in Q1.

**【CFO Financial Commentary】**
- **Financial Highlights**: Non-GAAP gross margin 79% (+100bps YoY), operating margin 2.4%. New customers contributed 49% of Subscription growth. Net retention rate 110% (vs. 96% target), driven by multi-solution adoption (69% of revenue from multi-solution customers).
- **Balance Sheet**: Cash & equivalents $767M, with $40M share buyback. Free cash flow margin revised to 10% for 2025.
- **Q2 & FY25 Guidance**: Total revenue $208-210M (Q2), $864-868M (FY25). Subscription growth ~20% at midpoint. Non-GAAP operating margin 5-5.5%.

**【Q&A Key Themes】**
- **Macro Environment**: Cautious buying seen in Q1, but 2025 Subscription growth target maintained due to large TAM and platform differentiation. U.S. regulatory uncertainty impacting some compliance-driven deals, but global supply chain demand remains strong.
- **Sustainability Demand**: Sustainability Reporting remains top booking solution. European Wave 1 companies (target market) still on 2025 reporting timeline. U.S. state-level regulations (e.g., California) driving demand outside federal policy.
- **Go-to-Market Strategy**: Expanded major account sellers, focused territories, and dedicated new logo teams. 2025 focus on enabling partners (Big 4) to co-sell Workiva's platform for financial and nonfinancial reporting.
- **Carbon & Fund Reporting**: Workiva Carbon opened doors for new Sustainability Reporting deals. Fund Reporting Solution addresses $11T+ ETF market, with first deals signed in Q1.


Workiva (WK)-1 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth Exceeds Expectations**: Q4 subscription up 22%, full-year 20%, with net retention rate 112%.
- **Sustainability Dominance**: 10 straight quarters of top booking, Workiva Carbon driving carbon accounting adoption.
- **AI Acceleration**: 2025 focus on AI tools for SEC filings, GRC, and workflow automation, with customer-driven adoption.
- **Geopolitical Caution**: 2025 guide reflects U.S. policy and EU regulatory risks, but 17.5% of revenue from non-Americas highlights Europe growth.
- **Partnership Power**: 70% of deals involve partners, driving 26% YoY growth in large contracts.


**【CEO Summary Section】**
- Q4 2024 subscription revenue grew 22% YoY, total revenue up 20%, exceeding full-year guidance. Full-year subscription revenue expanded 20%, total revenue 17%.
- Net retention rate improved to 112%, with contracts over $300k and $500k increasing 34% and 32% YoY, respectively.
- Sustainability reporting and management drove 10 consecutive quarters of top booking, with Workiva Carbon supporting carbon accounting for scopes 1-3.
- AI adoption accelerated, with use cases in SEC filings, GRC processes, and workflow automation. 2025 guide reflects 20% subscription growth amid policy uncertainty.

**【CFO Financial Commentary】**
- Q4 2024 total revenue $200M (20% YoY), subscription $181M (22% YoY), services $19M. Full-year free cash flow margin 11.7%, up 170bps YoY.
- 2025 guidance: Total revenue $864-868M (20% sub growth), non-GAAP operating margin 5-5.5%, free cash flow margin ~12%.
- Risks include U.S. policy changes, European regulatory simplification, and currency fluctuations.

**【Q&A Highlights】**
- **Policy Uncertainty**: Guide cautious on U.S. admin and EU CSRD simplification, but 97% of execs see sustainability as competitive advantage.
- **Europe Growth**: 17.5% of 2024 revenue from non-Americas, up 280bps YoY. Momentum from ERP upgrades (e.g., Oracle S/4HANA) and Assured Integrated Reporting platform.
- **Partnerships**: 70% of deals involve partners, driving 26% YoY growth in contracts over $100k. Co-sell with Big 4 on sustainability and financial reporting.
- **AI Impact**: 2025 focus on usable AI tools for SEC filings, GRC, and workflow. Customer-driven adoption for risk mitigation and efficiency.

**【Sustainability & AI】**
- Workiva Carbon signed mid-six-figure deals with European retailers and U.S. transportation firms for science-based target reporting.
- AI use cases include 10-K drafting, risk management, and multi-solution platform integration. 2025 AI investments to enhance automation and compliance.


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