Workiva (WK) Q2 2024 earnings summary

Executive summary

• Q2 2024 total revenue grew 15% year-over-year to $177.5–$178 million, with subscription revenue up 18% to $160.7–$161 million, exceeding guidance and driven by strong demand and solution expansion.

• Net loss narrowed to $17.5–$18 million, reflecting improved operating leverage, while non-GAAP net income rose to $9 million.

• The company raised full-year revenue guidance and saw broad-based demand across all solution portfolios, with standout performance in ESG and continued momentum in Europe.

• The launch of Workiva Carbon, supported by the acquisition of Sustain.Life for $98.3–$100 million, positions the platform for further ESG and carbon accounting growth.

• Announced a $100 million share repurchase program to reduce dilution and signal confidence in long-term growth.

Financial highlights

• Q2 2024 total revenue reached $177.5–$178 million, up 15% year-over-year; subscription revenue was $160.7–$161 million, up 18%; professional services revenue declined 8%.

• Gross profit was $136–$139 million, with gross margin improving to 76.8–78.3%.

• Operating profit was $3.6–$4 million, compared to a loss in Q2 2023; non-GAAP net income was $9 million.

• Cash, cash equivalents, and marketable securities stood at $740.9–$741 million after the Sustain.Life acquisition.

• Operating expenses rose 15.4% to $159.5 million, mainly from higher sales, marketing, and R&D investments.

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, with subscription revenue growth over 17% at midpoint.

• Non-GAAP operating income for 2024 guided to $29–$31 million; positive free cash flow margin of 11% expected.

• Long-term model targets 85% gross margin and 24% operating margin by 2030.

• 2027 target: well over $1 billion in annual revenue; 2030 target: more than double current revenue.