Workiva Inc. (NYSE:WK), a leader in the financial reporting and compliance space, has announced its financial results for the first quarter of 2025, showcasing solid revenue growth and positive developments across key business metrics. The results reflect the company's dedication to driving performance and productivity for its customers, as stated by Julie Iskow, President & CEO.

1. Financial Highlights

Revenue Growth

For the first quarter ended March 31, 2025, Workiva reported total revenue of $206 million, marking a 17% increase from $176 million in the same quarter of 2024. Notably, subscription and support revenue accounted for $186 million, demonstrating a substantial 20% year-over-year growth. However, professional services revenue remained flat at $21 million, compared to the previous year.

Profitability Metrics

Gross Margin: The company achieved a GAAP gross margin of 76.6%, slightly up from 76.4% in Q1 2024. The non-GAAP gross margin improved to 78.7% from 77.7% in the prior year.

Operating Margin: Workiva reported a GAAP operating margin of (12.0%), down from (10.3%) year-over-year. Non-GAAP operating margin also saw a decline, landing at 2.4%, compared to 3.4% in Q1 2024.

Net Loss: The GAAP net loss for the quarter was $(21) million, an increase from a net loss of $(12) million in the first quarter of 2024. This translated to a GAAP net loss per share of $(0.38) versus $(0.21) in the prior year. Conversely, non-GAAP net income was $8 million, down from $13 million in Q1 2024, with non-GAAP earnings per share at $0.15.

Liquidity Position

As of March 31, 2025, Workiva maintained a robust liquidity position with $767 million in cash, cash equivalents, and marketable securities, a decrease from $816 million at the end of 2024. The company also holds convertible senior notes and finance lease obligations totaling $71 million and $14 million, respectively.

2. Customer Growth and Retention

Workiva’s customer base has expanded to 6,385 as of March 31, 2025, reflecting a net increase of 311 customers from the previous year. The company boasts impressive retention metrics, with a gross retention rate of 97% and a net retention rate of 110%, indicating strong customer loyalty and satisfaction.

Large Contracts

The firm has seen significant growth in its large contracts segment, with 2,079 customers now holding annual contracts valued over $100,000, a 23% increase year-over-year. Furthermore, customers with contracts exceeding $300,000 and $500,000 rose by 32%, indicating increasing trust and adoption of Workiva's solutions among larger enterprises.

3. Share Repurchase Program

In line with its commitment to enhancing shareholder value, Workiva repurchased approximately 462,000 shares for $40.1 million during Q1 2025 under its authorized share repurchase plan. The company has $59.9 million remaining for future repurchases.

4. Financial Outlook

Looking ahead, Workiva has provided guidance for the second quarter and full year of 2025:

Second Quarter 2025 Guidance

Expected total revenue: $208 million to $210 million

GAAP operating margin: approximately (14.8%)

Non-GAAP operating margin: approximately break-even

GAAP net loss per share: approximately $(0.50)

Non-GAAP net income per diluted share: approximately $0.05

Full Year 2025 Guidance

Expected total revenue: $864 million to $868 million

GAAP operating margin: (9.1%) to (8.6%)

Non-GAAP operating margin: 5.0% to 5.5%

GAAP net loss per share: $(1.07) to $(1.00)

Non-GAAP net income per diluted share: $1.02 to $1.09

Free cash flow margin anticipated at approximately 10%

5. Conclusion

Workiva's first quarter results for 2025 indicate a positive trajectory, with substantial revenue growth and a strong customer base. As the company continues to execute its growth strategies and enhance its service offerings, it remains well-positioned to capitalize on the increasing demand for transparency and accountability in financial reporting. The upcoming quarterly conference call will provide further insights into the company’s performance and strategic direction.

Original press release