What guidance did Workiva's management provide for the next earnings period?

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What does Workiva do and what are its main business segments?

What is the revenue and EPS growth rate for Workiva year over year?

What is Workiva's gross profit margin?

What factors drove the changes in Workiva's revenue and profit?

What were the key takeaways from Workiva's earnings call?

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- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

WK

WK fundamentals

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