Workiva (WK) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue rose 17% to $630M; subscription and support revenue grew 20% to $559M.

• Q4 revenue grew 16% to $167M, including subscription and support revenue of $149M, up 18% YoY.

• Platform adoption reached 6,034 organizations across financial reporting, ESG, governance, risk and compliance solutions.

Financial highlights

• Q4 GAAP gross profit was $129M at a 77.3% margin; non-GAAP gross profit was $131M at a 78.4% margin.

• Q4 GAAP operating loss narrowed to $9M from $13M; non-GAAP operating income rose to $13M from $5M.

• Q4 GAAP net loss was $4M, or $0.08/share; non-GAAP net income was $18M, or $0.30 diluted EPS.

• FY operating cash flow was $71M versus $11M in 2022; FY GAAP operating loss was $95M and net loss was $128M.

Outlook and guidance

• FY 2024 revenue guidance is $718M–$722M, with 14% growth at the midpoint; Q1 guidance is $173M–$175M, or 16% growth.

• FY 2024 non-GAAP operating income guidance is $17M–$21M, or $19M at the midpoint; Q1 guidance is $4M–$6M.

• FY 2024 GAAP operating loss guidance is $81M–$85M; midpoint reconciliation to $19M non-GAAP operating income adds back $97M in stock-based compensation and $5M in acquisition-related amortization.

• Q1 2024 GAAP loss/share guidance is $0.25–$0.29; non-GAAP income/basic share is $0.15–$0.19. FY guidance is $1.21–$1.28 GAAP loss/basic share and $0.56–$0.63 non-GAAP income/basic share.