Workiva (WK) Q2 2024 earnings summary

Executive summary

• Q2 2024 total revenue grew up to $178 million, a 15% year-over-year increase, with subscription revenue up 18% to $161 million and record bookings driven by strong demand across ESG, financial reporting, and GRC solutions.

• Operating margin improved by 240 basis points year-over-year, with Q2 non-GAAP operating profit of $4 million and GAAP net loss narrowing to $17.5 million.

• Board authorized a $100 million share repurchase program, reflecting confidence in long-term growth and undervalued share price.

• Launched Workiva Carbon, supported by the acquisition of Sustain.Life for up to $100 million, to address growing carbon accounting and ESG regulatory requirements.

• Customer base expanded to 6,147, with significant growth in large contract customers and strong momentum in Europe.

Financial highlights

• Q2 2024 total revenue: $178 million, up 15% year-over-year; subscription revenue: $161 million, up 18%.

• Non-GAAP gross profit: $139 million (78.3% margin), up 18% year-over-year; GAAP gross profit: $136 million (76.8% margin).

• Non-GAAP income from operations: $4 million, up from a $1 million loss; GAAP loss from operations: $23 million, flat year-over-year.

• Cash, cash equivalents, and marketable securities totaled $741 million as of June 30, 2024, after the Sustain.Life acquisition.

• Revenue retention rate: 98% excluding add-ons, 109% including add-ons.

Outlook and guidance

• Q3 2024 revenue expected between $182 million and $183 million; non-GAAP operating income of $6.5–$7.5 million.

• Full-year 2024 revenue guidance raised to $727–$729 million; non-GAAP operating income $29–$31 million; subscription revenue growth expected over 17%.

• Full-year 2024 non-GAAP net income per share expected $0.94–$0.98; GAAP net loss per share $1.05–$1.01.

• Long-term model targets 85% gross margin and 24%+ operating margin by 2030, with medium-term (2027) revenue target above $1 billion.