Workiva Inc. (NYSE:WK), a leader in the cloud platform for assured integrated reporting, announced its impressive financial results for the fourth quarter and full year ended December 31, 2024. The company showcased a robust performance, characterized by a significant increase in revenue and a positive outlook for the coming year.

Key Financial Metrics:

Q4 Revenue: Total revenue reached $200 million, marking a 20% increase from $167 million in Q4 2023, driven by a 22% growth in subscription and support revenue to $181 million.

Full Year Revenue: For the full year 2024, total revenue climbed to $739 million, reflecting a 17% rise from $630 million in 2023, with subscription and support revenue contributing $668 million, up 20% year-over-year.

2. Quarterly Performance Breakdown

Revenue and Profitability

The fourth quarter of 2024 saw Workiva achieving:

GAAP Gross Margin: 77.2%, slightly down from 77.3% in Q4 2023, while non-GAAP gross margin improved to 79.2% from 78.4%.

GAAP Loss from Operations: Recorded at $13 million, compared to a loss of $9 million in the same quarter of the previous year. However, non-GAAP income from operations rose to $15 million from $13 million year-over-year.

Net Income/Loss

The company's GAAP net loss for Q4 2024 was $9 million, an increase from a net loss of $4 million in Q4 2023. In contrast, non-GAAP net income saw a slight increase to $19 million from $18 million year-over-year.

Customer Growth and Retention

Workiva's customer base continued to expand, reaching 6,305 customers as of December 31, 2024, an increase of 271 from the prior year. The company's net retention rate improved to 112%, up from 110% in Q4 2023, indicating strong customer satisfaction and value delivery.

3. Full Year Financial Performance

Operational Efficiency

Workiva reported a GAAP loss from operations of $77 million for 2024, reduced from a loss of $95 million in 2023. Non-GAAP income from operations surged to $32 million, compared to $10 million in the prior year.

Net Cash Flow

The company reported net cash provided by operating activities of $88 million in 2024, up from $71 million in 2023, and a free cash flow of $86 million, marking an increase from $69 million the previous year. This resulted in a free cash flow margin of 11.7% for 2024.

4. Future Outlook

2025 Guidance

As of February 25, 2025, Workiva has provided an optimistic outlook for the first quarter and full year 2025:

First Quarter Revenue: Expected in the range of $203 million to $205 million.

Full Year Revenue: Projected to be between $864 million and $868 million.

GAAP Operating Margin: Expected to range from approximately (14.3)% in Q1 to (9.1)% to (8.6)% for the full year.

Non-GAAP Projections

The company anticipates non-GAAP net income per diluted share to be around $0.07 for Q1 and between $1.02 and $1.09 for the full year 2025, indicating a strong commitment to profitability and operational efficiency.

5. Conclusion

Workiva's fourth quarter and full year results underscore its solid execution across financial, operational, and innovation initiatives. The company enters 2025 with confidence, backed by a growing customer base and a commitment to delivering value through its integrated reporting platform. As it continues to capitalize on its large and untapped total addressable market, stakeholders will be keenly observing Workiva's performance in the coming quarters.

Workiva will further elaborate on its financial results and outlook during a conference call today at 5:00 p.m. Eastern Time, providing an opportunity for investors and analysts to gain deeper insights into the company’s strategies and future plans.

Original press release