Workiva Inc. Announces Second Quarter 2021 Financial Results | Financial Buzz

Workiva Inc. Announces Second Quarter 2021 Financial Results

Workiva Inc. (NYSE:WK), the company that simplifies complex work, today announced financial results for its second quarter ended June 30, 2021.

“Our results continue to build on our market leadership and the increased demand for regulatory reporting and fit-for-purpose solutions to support digital transformations,” said Marty Vanderploeg, Chief Executive Officer. “Our strong bookings from existing customers reflect our enhanced ability to cross-sell multiple solutions.”

“The entire Workiva team is focused on growing the business through new logos, maintaining high customer retention, and account expansion,” Vanderploeg added.

“We beat guidance for revenue and operating results,” said Jill Klindt, Chief Financial Officer. “Due to continued broad-based demand and the resulting top-line growth, we are raising our full-year revenue guidance range to $430 million to $432 million.”

Second Quarter 2021 Financial Highlights

  • Revenue: Total revenue for the second quarter of 2021 reached $105.6 million, an increase of 25.9% from $83.9 million in the second quarter of 2020. Subscription and support revenue contributed $91.2 million, up 29.0% versus the second quarter of 2020. Professional services revenue was $14.4 million, an increase of 9.3% compared to the same quarter in the prior year.
  • Gross Profit: GAAP gross profit for the second quarter of 2021 was $81.0 million compared with $61.6 million in the same quarter of 2020. GAAP gross margin was 76.7% versus 73.5% in the second quarter of 2020. Non-GAAP gross profit for the second quarter of 2021 was $82.0 million, an increase of 31.4% compared with the prior year’s second quarter, and non-GAAP gross margin was 77.7% compared to 74.4% in the second quarter of 2020.
  • Results from Operations: GAAP loss from operations for the second quarter of 2021 was $5.7 million compared with a loss of $16.7 million in the prior year’s second quarter. Non-GAAP income from operations was $5.3 million, compared with non-GAAP loss from operations of $1.8 million in the second quarter of 2020.
  • GAAP Net Loss: GAAP net loss for the second quarter of 2021 was $9.5 million compared with a net loss of $19.6 million for the prior year’s second quarter. GAAP net loss per basic and diluted share was $0.19 compared with a net loss per basic and diluted share of $0.41 in the second quarter of 2020.
  • Non-GAAP Net Income/Loss: Non-GAAP net income for the second quarter of 2021 was $3.8 million compared with net loss of $2.5 million in the prior year’s second quarter. Non-GAAP net income per basic and diluted share was $0.07, compared with net loss per basic and diluted share of $0.05 in the second quarter of 2020.
  • Liquidity: As of June 30, 2021, Workiva had cash, cash equivalents and marketable securities totaling $551.6 million, compared with $530.0 million as of December 31, 2020. Workiva had $345.0 million aggregate principal amount of 1.125% convertible senior notes due in 2026 and $17.5 million of finance lease obligations outstanding as of June 30, 2021.

Key Metrics and Recent Business Highlights

  • Customers: Workiva had 3,949 customers as of June 30, 2021, a net increase of 437 customers from June 30, 2020.
  • Revenue Retention Rate: As of June 30, 2021, Workiva’s revenue retention rate (excluding add-on revenue) was 96.0%, and the revenue retention rate including add-on revenue was 111.6%. Add-on revenue includes changes in both solutions and pricing for existing customers.
  • Large Contracts: As of June 30, 2021, Workiva had 952 customers with an annual contract value (ACV) of more than $100,000, up 33% from 716 customers at June 30, 2020. Workiva had 500 customers with an ACV of more than $150,000, up 46% from 342 customers in the second quarter of 2020.
  • On July 30, 2021, we acquired all of the equity interest in OneCloud, Inc., an integration platform as a service (iPaaS) company, in order to extend our integration and data preparation capabilities.

Financial Outlook

As of August 3, 2021, Workiva is providing guidance as follows:

Third Quarter 2021 Guidance:

  • Total revenue is expected to be in the range of $108.0 million to $109.0 million.
  • GAAP loss from operations is expected to be in the range of $17.6 million to $16.6 million.
  • Non-GAAP loss from operations is expected to be in the range of $5.5 million to $4.5 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $0.40 to $0.38.
  • Non-GAAP net loss per basic share is expected to be in the range of $0.12 to $0.10.
  • Net loss per basic share is based on 51.5 million weighted-average shares outstanding.

Full Year 2021 Guidance:

  • Total revenue is expected to be in the range of $430.0 million to $432.0 million.
  • GAAP loss from operations is expected to be in the range of $47.7 million to $45.7 million.
  • Non-GAAP income from operations is expected to be in the range of break-even to $2.0 million.
  • GAAP net loss per basic and diluted share is expected to be in the range of $1.19 to $1.15.
  • Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.08 to $0.04.
  • Net income (loss) per basic and diluted share is based on 51.2 million weighted-average shares outstanding.

Workiva has factored into its guidance the expected impacts of COVID-19 on its business and results of operations based on currently available information. Significant variation from these assumptions could cause the company to change its guidance, and it undertakes no obligation to update its assumptions, expectations or guidance. These statements are forward-looking, and actual results may differ materially, as further discussed below under the heading “Safe Harbor Statement”.

Quarterly Conference Call

Workiva will host a conference call today at 5:00 p.m. ET to review the Company’s financial results for the second quarter, in addition to discussing the Company’s outlook for the third quarter and full year 2021. To access this call, dial 833-968-1977 (U.S. domestic) or 647-689-6649 (international). The conference ID is 1817158. A live webcast of the conference call will be accessible in the “Investor Relations” section of Workiva’s website at www.workiva.com. A replay of this conference call can also be accessed through August 10, 2021, at 800-585-8367 (U.S. domestic) or 416-621-4642 (international). The replay pass code is 1817158. An archived webcast of this conference call will also be available an hour after the completion of the call in the “Investor Relations” section of the Company’s website at www.workiva.com.

About Workiva

Workiva Inc. (NYSE: WK) simplifies complex work for thousands of organizations worldwide. Customers trust Workiva’s open, intelligent and intuitive platform to connect data, documents and teams. The results: more efficiency, greater transparency and less risk. Learn more at workiva.com.

Read the Workiva blog: www.workiva.com/blog

Follow Workiva on LinkedIn: www.linkedin.com/company/workiva

Like Workiva on Facebook: www.facebook.com/workiva

Follow Workiva on Twitter: www.twitter.com/workiva

Non-GAAP Financial Measures

The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation and non-cash interest expense. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in Table I at the end of this press release. A reconciliation of GAAP to non-GAAP guidance has been provided in Table II at the end of this press release.

Workiva believes that the use of non-GAAP gross profit and gross margin, non-GAAP income (loss) from operations, non-GAAP net income (loss) and non-GAAP net income (loss) per share is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Non-GAAP gross profit is calculated by excluding stock-based compensation expense attributable to cost of revenues from gross profit. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by revenues. Non-GAAP income (loss) from operations is calculated by excluding stock-based compensation expense from loss from operations. Non-GAAP net income (loss) is calculated by excluding stock-based compensation expense, net of tax, and non-cash interest expense related to our convertible senior notes from net loss. Non-GAAP net income (loss) per share is calculated by dividing non-GAAP net income (loss) by the weighted- average shares outstanding as presented in the calculation of GAAP net loss per share. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Workiva believes that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between its operating results from period to period. Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be accounted for as separate liability and equity components in a manner that reflects our non-convertible debt borrowing rate. This results in the debt component being treated as though it was issued at a discount, with the debt discount being accreted as additional non-cash interest expense over the term of the notes using the effective interest method. As a result, we believe that excluding this non-cash interest expense attributable to the debt discount in calculating our non-GAAP measures is useful because this interest expense does not represent a cash outflow and is not indicative of our ongoing operational performance. Workiva’s management uses these non-GAAP financial measures as tools for financial and operational decision making and for evaluating Workiva’s own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Workiva’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Workiva’s reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Workiva’s business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Workiva’s business.

Safe Harbor Statement

Certain statements in this press release are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company’s expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “outlook,” “guidance” or the negative of those terms or other comparable terminology.

Please see the Company’s documents filed or to be filed with the Securities and Exchange Commission, including the Company’s annual reports filed on Form 10-K and quarterly reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

WORKIVA INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

 

Three months ended June 30,

 

Six months ended June 30,

 

2021

 

2020

 

2021

 

2020

 

(unaudited)

Revenue

 

 

 

 

 

 

 

Subscription and support

$

91,205

 

 

$

70,696

 

 

$

176,141

 

 

$

139,057

 

Professional services

14,382

 

 

13,164

 

 

33,668

 

 

30,604

 

Total revenue

105,587

 

 

83,860

 

 

209,809

 

 

169,661

 

Cost of revenue

 

 

 

 

 

 

 

Subscription and support (1)

14,098

 

 

12,098

 

 

27,300

 

 

24,251

 

Professional services (1)

10,493

 

 

10,146

 

 

20,967

 

 

20,389

 

Total cost of revenue

24,591

 

 

22,244

 

 

48,267

 

 

44,640

 

Gross profit

80,996

 

 

61,616

 

 

161,542

 

 

125,021

 

Operating expenses

 

 

 

 

 

 

 

Research and development (1)

27,830

 

 

23,508

 

 

54,464

 

 

46,502

 

Sales and marketing (1)

41,525

 

 

35,270

 

 

82,560

 

 

71,387

 

General and administrative (1)

17,384

 

 

19,553

 

 

34,405

 

 

32,922

 

Total operating expenses

86,739

 

 

78,331

 

 

171,429

 

 

150,811

 

Loss from operations

(5,743

)

 

(16,715

)

 

(9,887

)

 

(25,790

)

Interest income

255

 

 

655

 

 

615

 

 

2,361

 

Interest expense

(3,502

)

 

(3,489

)

 

(6,987

)

 

(6,967

)

Other (expense) income, net

(156

)

 

(68

)

 

(540

)

 

650

 

Loss before provision (benefit) for income taxes

(9,146

)

 

(19,617

)

 

(16,799

)

 

(29,746

)

Provision (benefit) for income taxes

368

 

 

(5

)

 

39

 

 

284

 

Net loss

$

(9,514

)

 

$

(19,612

)

 

$

(16,838

)

 

$

(30,030

)

Net loss per common share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.19

)

 

$

(0.41

)

 

$

(0.33

)

 

$

(0.63

)

Weighted-average common shares outstanding – basic and diluted

51,065,867

 

 

48,171,552

 

 

50,657,264

 

 

47,858,628

 

(1) Includes stock-based compensation expense as follows:

 

Three months ended June 30,

 

Six months ended June 30,

 

2021

 

2020

 

2021

 

2020

 

(unaudited)

Cost of revenue

 

 

 

 

 

 

 

Subscription and support

$

597

 

 

$

436

 

 

$

1,093

 

 

$

867

 

Professional services

409

 

 

365

 

 

776

 

 

790

 

Operating expenses

 

 

 

 

 

 

 

Research and development

2,417

 

 

2,040

 

 

4,848

 

 

3,623

 

Sales and marketing

2,837

 

 

2,944

 

 

6,386

 

 

5,680

 

General and administrative

4,792

 

 

9,109

 

 

9,572

 

 

13,870

 

WORKIVA INC.

 

CONSOLIDATED BALANCE SHEETS

(in thousands)

 

June 30, 2021

 

December 31, 2020

 

(unaudited)

 

 

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

322,194

 

 

$

322,831

 

Marketable securities

229,419

 

 

207,207

 

Accounts receivable, net

65,908

 

 

68,922

 

Deferred costs

26,646

 

 

21,923

 

Other receivables

2,750

 

 

3,155

 

Prepaid expenses and other

12,045

 

 

9,047

 

Total current assets

658,962

 

 

633,085

 

Property and equipment, net

28,922

 

 

29,365

 

Operating lease right-of-use assets

15,558

 

 

15,844

 

Deferred costs, non-current

28,797

 

 

23,421

 

Intangible assets, net

1,516

 

 

1,583

 

Other assets

5,127

 

 

3,708

 

Total assets

$

738,882

 

 

$

707,006

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

3,704

 

 

$

2,843

 

Accrued expenses and other current liabilities

76,682

 

 

68,256

 

Deferred revenue

224,952

 

 

208,990

 

Finance lease obligations

1,752

 

 

1,705

 

Total current liabilities

307,090

 

 

281,794

 

Convertible senior notes, net

294,040

 

 

289,490

 

Deferred revenue, non-current

32,219

 

 

35,894

 

Other long-term liabilities

1,338

 

 

1,680

 

Operating lease liabilities, non-current

16,355

 

 

17,209

 

Finance lease obligations, non-current

15,774

 

 

16,662

 

Total liabilities

666,816

 

 

642,729

 

Stockholders’ equity

 

 

 

Common stock

50

 

 

49

 

Additional paid-in-capital

503,350

 

 

478,698

 

Accumulated deficit

(431,538

)

 

(414,700

)

Accumulated other comprehensive income

204

 

 

230

 

Total stockholders’ equity

72,066

 

 

64,277

 

Total liabilities and stockholders’ equity

$

738,882

 

 

$

707,006

 

WORKIVA INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Three months ended June 30,

 

Six months ended June 30,

 

2021

 

2020

 

2021

 

2020

 

(unaudited)

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(9,514

)

 

$

(19,612

)

 

$

(16,838

)

 

$

(30,030

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

1,097

 

 

1,052

 

 

2,151

 

 

2,115

 

Stock-based compensation expense

11,052

 

 

14,894

 

 

22,675

 

 

24,830

 

Provision for (recovery of) doubtful accounts

17

 

 

319

 

 

(101

)

 

359

 

Amortization of premiums and discounts on marketable securities, net

763

 

 

112

 

 

1,388

 

 

213

 

Amortization of debt discount and issuance costs

2,284

 

 

2,213

 

 

4,550

 

 

4,410

 

Deferred income tax

362

 

 

(131

)

 

16

 

 

(131

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

(12,106

)

 

3,847

 

 

3,159

 

 

18,112

 

Deferred costs

(9,018

)

 

(2,166

)

 

(10,077

)

 

(1,563

)

Operating lease right-of-use asset

977

 

 

875

 

 

1,921

 

 

1,973

 

Other receivables

585

 

 

58

 

 

424

 

 

(195

)

Prepaid expenses

722

 

 

(890

)

 

(3,025

)

 

(2,845

)

Other assets

(110

)

 

(609

)

 

(683

)

 

(683

)

Accounts payable

(1,172

)

 

(1,692

)

 

736

 

 

(3,074

)

Deferred revenue

11,900

 

 

(3,640

)

 

12,079

 

 

(4,868

)

Operating lease liability

(1,202

)

 

(1,178

)

 

(2,278

)

 

(2,323

)

Accrued expenses and other liabilities

16,123

 

 

13,737

 

 

8,166

 

 

5,716

 

Net cash provided by operating activities

12,760

 

 

7,189

 

 

24,263

 

 

12,016

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

(811

)

 

(696

)

 

(1,660

)

 

(1,384

)

Purchase of marketable securities

(51,217

)

 

(16,457

)

 

(94,872

)

 

(37,289

)

Sale of marketable securities

250

 

 

 

 

250

 

 

11,423

 

Maturities of marketable securities

30,206

 

 

13,062

 

 

70,792

 

 

26,037

 

Purchase of intangible assets

(52

)

 

(74

)

 

(123

)

 

(151

)

Other

(750

)

 

 

 

(750

)

 

 

Net cash used in investing activities

(22,374

)

 

(4,165

)

 

(26,363

)

 

(1,364

)

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from option exercises

1,480

 

 

6,664

 

 

5,618

 

 

9,458

 

Taxes paid related to net share settlements of stock-based compensation awards

(731

)

 

(732

)

 

(7,877

)

 

(2,111

)

Proceeds from shares issued in connection with employee stock purchase plan

 

 

 

 

4,237

 

 

3,660

 

Principal payments on finance lease obligations

(424

)

 

(404

)

 

(841

)

 

(802

)

Net cash provided by financing activities

325

 

 

5,528

 

 

1,137

 

 

10,205

 

Effect of foreign exchange rates on cash

310

 

 

135

 

 

326

 

 

(478

)

Net (decrease) increase in cash and cash equivalents

(8,979

)

 

8,687

 

 

(637

)

 

20,379

 

Cash and cash equivalents at beginning of period

331,173

 

 

393,434

 

 

322,831

 

 

381,742

 

Cash and cash equivalents at end of period

$

322,194

 

 

$

402,121

 

 

$

322,194

 

 

$

402,121

 

TABLE I

WORKIVA INC.

RECONCILIATION OF NON-GAAP INFORMATION

(in thousands, except share and per share)

 

Three months ended June 30,

 

Six months ended June 30,

 

2021

 

2020

 

2021

 

2020

Gross profit, subscription and support

$

77,107

 

 

$

58,598

 

 

$

148,841

 

 

$

114,806

 

Add back: Stock-based compensation

597

 

 

436

 

 

1,093

 

 

867

 

Gross profit, subscription and support, non-GAAP

$

77,704

 

 

$

59,034

 

 

$

149,934

 

 

$

115,673

 

As a percentage of subscription and support revenue, non-GAAP

85.2

%

 

83.5

%

 

85.1

%

 

83.2

%

 

 

 

 

 

 

 

 

Gross profit, professional services

$

3,889

 

 

$

3,018

 

 

$

12,701

 

 

$

10,215

 

Add back: Stock-based compensation

409

 

 

365

 

 

776

 

 

790

 

Gross profit, professional services, non-GAAP

$

4,298

 

 

$

3,383

 

 

$

13,477

 

 

$

11,005

 

As a percentage of professional services revenue, non-GAAP

29.9

%

 

25.7

%

 

40.0

%

 

36.0

%

 

 

 

 

 

 

 

 

Gross profit

$

80,996

 

 

$

61,616

 

 

$

161,542

 

 

$

125,021

 

Add back: Stock-based compensation

1,006

 

 

801

 

 

1,869

 

 

1,657

 

Gross profit, non-GAAP

$

82,002

 

 

$

62,417

 

 

$

163,411

 

 

$

126,678

 

As percentage of revenue, non-GAAP

77.7

%

 

74.4

%

 

77.9

%

 

74.7

%

 

 

 

 

 

 

 

 

Cost of revenue, subscription and support

$

14,098

 

 

$

12,098

 

 

$

27,300

 

 

$

24,251

 

Less: Stock-based compensation

597

 

 

436

 

 

1,093

 

 

867

 

Cost of revenue, subscription and support, non-GAAP

$

13,501

 

 

$

11,662

 

 

$

26,207

 

 

$

23,384

 

As percentage of revenue, non-GAAP

12.8

%

 

13.9

%

 

12.5

%

 

13.8

%

 

 

 

 

 

 

 

 

Cost of revenue, professional services

$

10,493

 

 

$

10,146

 

 

$

20,967

 

 

$

20,389

 

Less: Stock-based compensation

409

 

 

365

 

 

776

 

 

790

 

Cost of revenue, professional services, non-GAAP

$

10,084

 

 

$

9,781

 

 

$

20,191

 

 

$

19,599

 

As percentage of revenue, non-GAAP

9.6

%

 

11.7

%

 

9.6

%

 

11.6

%

 

 

 

 

 

 

 

 

Research and development

$

27,830

 

 

$

23,508

 

 

$

54,464

 

 

$

46,502

 

Less: Stock-based compensation

2,417

 

 

2,040

 

 

4,848

 

 

3,623

 

Research and development, non-GAAP

$

25,413

 

 

$

21,468

 

 

$

49,616

 

 

$

42,879

 

As percentage of revenue, non-GAAP

24.1

%

 

25.6

%

 

23.6

%

 

25.3

%

 

 

 

 

 

 

 

 

Sales and marketing

$

41,525

 

 

$

35,270

 

 

$

82,560

 

 

$

71,387

 

Less: Stock-based compensation

2,837

 

 

2,944

 

 

6,386

 

 

5,680

 

Sales and marketing, non-GAAP

$

38,688

 

 

$

32,326

 

 

$

76,174

 

 

$

65,707

 

As percentage of revenue, non-GAAP

36.6

%

 

38.5

%

 

36.3

%

 

38.7

%

 

 

 

 

 

 

 

 

General and administrative

$

17,384

 

 

$

19,553

 

 

$

34,405

 

 

$

32,922

 

Less: Stock-based compensation

4,792

 

 

9,109

 

 

9,572

 

 

13,870

 

General and administrative, non-GAAP

$

12,592

 

 

$

10,444

 

 

$

24,833

 

 

$

19,052

 

As percentage of revenue, non-GAAP

11.9

%

 

12.5

%

 

11.8

%

 

11.2

%

 

 

 

 

 

 

 

 

Loss from operations

$

(5,743

)

 

$

(16,715

)

 

$

(9,887

)

 

$

(25,790

)

Add back: Stock-based compensation

11,052

 

 

14,894

 

 

22,675

 

 

24,830

 

Income from operations, non-GAAP

$

5,309

 

 

$

(1,821

)

 

$

12,788

 

 

$

(960

)

As percentage of revenue, non-GAAP

5.0

%

 

(2.2

)%

 

6.1

%

 

(0.6

)%

 

 

 

 

 

 

 

 

Net loss

$

(9,514

)

 

$

(19,612

)

 

$

(16,838

)

 

$

(30,030

)

Add back: Stock-based compensation

11,052

 

 

14,894

 

 

22,675

 

 

24,830

 

Add back: Non-cash interest expense related to convertible senior notes

2,284

 

 

2,213

 

 

4,550

 

 

4,410

 

Net income (loss), non-GAAP

$

3,822

 

 

$

(2,505

)

 

$

10,387

 

 

$

(790

)

As percentage of revenue, non-GAAP

3.6

%

 

(3.0

)%

 

5.0

%

 

(0.5

)%

 

 

 

 

 

 

 

 

Net loss per basic and diluted share:

$

(0.19

)

 

$

(0.41

)

 

$

(0.33

)

 

$

(0.63

)

Add back: Stock-based compensation

0.22

 

 

0.31

 

 

0.45

 

 

0.52

 

Add back: Non-cash interest expense related to convertible senior notes

0.04

 

 

0.05

 

 

0.09

 

 

0.09

 

Net income (loss) per basic share, non-GAAP

$

0.07

 

 

$

(0.05

)

 

$

0.21

 

 

$

(0.02

)

Net income (loss) per diluted share, non-GAAP

$

0.07

 

 

$

(0.05

)

 

$

0.19

 

 

$

(0.02

)

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding – basic, non-GAAP

51,065,867

 

 

48,171,552

 

 

50,657,264

 

 

47,858,628

 

Weighted-average common shares outstanding – diluted, non-GAAP

55,064,895

 

 

48,171,552

 

 

55,081,027

 

 

47,858,628

 

TABLE II

WORKIVA INC.

RECONCILIATION OF NON-GAAP GUIDANCE

(in thousands, except share and per share data)

 

Three months ending

September 30, 2021

 

Year ending

December 31, 2021

 

 

 

 

 

 

 

 

Loss from operations, GAAP range

$

(17,600

)

$

(16,600

)

 

$

(47,700

)

$

(45,700

)

Add back: Stock-based compensation

12,100

 

 

12,100

 

 

47,700

 

 

47,700

 

Income (loss) from operations, non-GAAP range

$

(5,500

)

$

(4,500

)

 

$

 

$

2,000

 

 

 

 

 

 

 

 

 

Net loss per share, GAAP range

$

(0.40

)

$

(0.38

)

 

$

(1.19

)

$

(1.15

)

Add back: Stock-based compensation

0.23

 

 

0.23

 

 

0.93

 

 

0.93

 

Add back: Non-cash interest expense related to convertible senior notes

0.05

 

 

0.05

 

 

0.18

 

 

0.18

 

Net loss per share, non-GAAP range

$

(0.12

)

$

(0.10

)

 

$

(0.08

)

$

(0.04

)

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding – basic

51,500,000

 

 

51,500,000

 

 

51,200,000

 

 

51,200,000

 

Contacts

Investor Contact:

Adam Terese

Workiva Inc.

investor@workiva.com

(515) 663-4493

Media Contact:

Kevin McCarthy

Workiva Inc.

press@workiva.com

(515) 663-4471

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