Workiva (WK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 17–17.4% year-over-year to $185.6–$186 million, driven by strong demand, solution expansion, and record bookings across all geographies, especially in Europe and sustainability management.

• Subscription revenue reached $171 million, up 19% year-over-year, with subscription and support revenue accounting for over 92% of total revenue.

• Net loss narrowed to $17 million in Q3 2024 from $56.3 million in Q3 2023, reflecting improved operating leverage.

• Customer base expanded to 6,237, with notable growth in large contracts and high revenue retention rates.

• Acquisition of Sustain.Life for $98.1 million launched Workiva Carbon, expanding ESG and carbon accounting capabilities.

Financial highlights

• Total Q3 2024 revenue was $185.6–$186 million, up from $158.2 million in Q3 2023; subscription revenue reached $171 million, up 19% year-over-year.

• Gross profit was $142–$146 million, with gross margin improving to 76.5–79%.

• Non-GAAP income from operations was $8 million, up from $5 million last year; GAAP loss from operations was $22 million.

• Net loss per share improved to $(0.31) in Q3 2024 from $(1.04) in Q3 2023.

• Cash, cash equivalents, and marketable securities totaled $776–$776.4 million at quarter-end.

Outlook and guidance

• Q4 2024 revenue expected between $194 million and $196 million; non-GAAP operating income projected at $13–$15 million.

• Full-year 2024 revenue guidance raised to $733–$735 million, with subscription revenue growth expected to exceed 19%.

• Non-GAAP operating income for 2024 is guided to $30–$32 million; positive free cash flow margin of 11%.

• Medium-term (2027) non-GAAP operating margin target is ~16%; long-term (2030) target is ~24%.

• Gross margin targets: 83% by 2027 and 85% by 2030.