Workiva Inc. (WK) Bundle
A Brief History of H3
As of 2024, H3 has shown significant growth in its operational and financial metrics. The company reported total revenue of $538.79 million for the nine months ended September 30, 2024, which marks a 16.3% increase compared to $463.39 million for the same period in 2023. This growth was primarily driven by a substantial rise in subscription and support revenue, which reached $486.75 million, reflecting an 18.8% increase from $409.86 million in the previous year.
Financial Performance
H3's financial performance for the three and nine months ended September 30, 2024, is detailed below:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $185.62 million | $158.18 million | $538.79 million | $463.39 million |
| Subscription and Support Revenue | $171.04 million | $143.42 million | $486.75 million | $409.86 million |
| Professional Services Revenue | $14.59 million | $14.75 million | $52.04 million | $53.53 million |
The company's subscription and support revenue accounted for 92.1% of total revenue in Q3 2024, up from 90.7% in Q3 2023. Operating metrics indicate that H3 had 6,237 customers as of September 30, 2024, compared to 5,945 customers in the same quarter of the previous year.
Cost Structure
The cost of revenue for the nine months ended September 30, 2024, was $126.37 million, an increase of 8.6% from $116.38 million in 2023. The breakdown of costs is as follows:
| Cost Type | 9M 2024 | 9M 2023 | % Change |
|---|---|---|---|
| Subscription and Support | $86.49 million | $74.08 million | 16.8% |
| Professional Services | $39.87 million | $42.30 million | (5.7%) |
Operating Expenses
Operating expenses totaled $475.64 million for the nine months ended September 30, 2024, reflecting a 10.1% increase from $432.06 million in 2023. The major components include:
| Expense Type | 9M 2024 | 9M 2023 | % Change |
|---|---|---|---|
| Research and Development | $142.33 million | $130.24 million | 9.3% |
| Sales and Marketing | $257.09 million | $215.17 million | 19.5% |
| General and Administrative | $76.23 million | $86.66 million | (12.0%) |
For the three months ended September 30, 2024, total operating expenses were $163.73 million, marking a 21.0% increase compared to $135.35 million in the same quarter of 2023.
Net Loss and Shareholder Equity
H3 reported a net loss of $16.99 million for Q3 2024, a significant reduction from a net loss of $56.27 million in Q3 2023. The net loss per share for Q3 2024 was $(0.31) compared to $(1.04) in Q3 2023. As of September 30, 2024, the company's accumulated deficit stood at $(698.87 million), with total stockholders' equity at $(50.81 million).
As of September 30, 2024, H3's cash, cash equivalents, and marketable securities totaled $776.4 million, providing a solid liquidity position for ongoing operations and growth initiatives.
The company has also authorized a share repurchase program of up to $100 million for its Class A common stock as of July 30, 2024, indicating confidence in its future performance.
A Who Owns Workiva Inc. (WK)
Shareholder Composition
As of 2024, Workiva Inc. (WK) has a diverse shareholder composition, which includes institutional investors, individual shareholders, and company executives. The following table summarizes the ownership distribution among significant shareholders:
| Shareholder Type | Number of Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 41,678,000 | 75.0% |
| Insider Ownership | 3,845,583 | 6.9% |
| Individual Investors | 10,000,000 | 18.1% |
Top Institutional Investors
The following table lists the top institutional investors in Workiva Inc. as of 2024:
| Investor Name | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 7,200,000 | 13.0% |
| BlackRock, Inc. | 6,500,000 | 11.7% |
| SSgA Funds Management, Inc. | 5,500,000 | 9.8% |
| Wellington Management Group LLP | 4,200,000 | 7.5% |
| Invesco Ltd. | 3,800,000 | 6.8% |
Executive Ownership
Executive management also holds a significant number of shares in Workiva Inc. The following table outlines the shares owned by key executives:
| Executive Name | Position | Number of Shares Owned |
|---|---|---|
| Martin Vanderploeg | CEO | 1,000,000 |
| Scott Ryan | CFO | 450,000 |
| Jill Kloss | COO | 300,000 |
| Kristin D. Dwyer | Chief Marketing Officer | 200,000 |
Recent Acquisitions and Financial Performance
On June 17, 2024, Workiva acquired Sustain.Life, Inc. for $98.1 million, which is expected to enhance its carbon accounting capabilities. This acquisition reflects Workiva's strategy to expand its offerings in sustainability and environmental reporting.
For the three months ended September 30, 2024, Workiva reported total revenue of $185.6 million, up from $158.2 million in the same period in 2023. The breakdown of revenue sources is as follows:
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Subscription and Support | $171,035 | $143,421 |
| Professional Services | $14,586 | $14,754 |
Stock Performance and Market Trends
As of September 30, 2024, Workiva's stock price is subject to the volatility in the technology sector, influenced by broader market trends and economic factors. The market capitalization of Workiva Inc. is approximately $5.5 billion, based on the current stock price of $99.00 per share.
The following table outlines key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $99.00 |
| Market Capitalization | $5.5 billion |
| 52-Week High | $110.00 |
| 52-Week Low | $85.00 |
Conclusion on Ownership Structure
The ownership structure of Workiva Inc. reflects a strong institutional presence, with significant shares held by top investment firms. Insider ownership also indicates a commitment from executive management towards the company's long-term growth and performance.
Workiva Inc. (WK) Mission Statement
Mission Overview
Workiva Inc. aims to empower organizations to connect, report, and manage data in a collaborative cloud-based environment. Its mission statement emphasizes providing innovative solutions that enhance transparency, compliance, and efficiency in financial and non-financial reporting.
Financial Performance Metrics
As of September 30, 2024, Workiva reported the following financial data:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $185.6 million | $158.2 million | 17.4% |
| Subscription and Support Revenue | $171.0 million | $143.4 million | 19.3% |
| Professional Services Revenue | $14.6 million | $14.8 million | (1.1%) |
| Net Loss | $(17.0 million) | $(56.3 million) | 69.8% |
| Cash Flow from Operating Activities | $18.9 million | $15.0 million | 26.3% |
Key Customer Metrics
Workiva's customer base and retention metrics provide insight into the effectiveness of its mission:
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Number of Customers | 6,237 | 5,945 |
| Subscription Revenue Retention Rate | 97.5% | 97.7% |
| Retention Rate Including Add-ons | 110.5% | 112.0% |
| Customers with ACV of $100k+ | 1,926 | 1,561 |
| Customers with ACV of $300k+ | 383 | 296 |
| Customers with ACV of $500k+ | 166 | 130 |
Investment in Growth
Workiva continues to invest in its platform and solutions to drive long-term growth. The company emphasizes:
- Enhancing its technology platform and applications.
- Expanding its customer base and geographical reach.
- Increasing the adoption of multi-solution offerings among existing customers.
Recent Developments
In June 2024, Workiva acquired Sustain.Life for $98.1 million, enhancing its capabilities in carbon accounting solutions.
Stockholder Information
As of September 30, 2024, Workiva's stockholder equity reflects the following:
| Metric | Amount (in thousands) |
|---|---|
| Common Stock | $56 |
| Additional Paid-in-Capital | $645,083 |
| Accumulated Deficit | $(698,868) |
| Accumulated Other Comprehensive Income | $2,919 |
| Total Stockholders' Deficit | $(50,810) |
How Workiva Inc. (WK) Works
Company Overview
Workiva Inc. (WK) provides cloud-based solutions for financial and non-financial reporting, enabling organizations to manage complex data and streamline their reporting processes. As of September 30, 2024, the company has a total of 6,237 customers, an increase from 5,945 in the previous year.
Financial Performance
For the three months ended September 30, 2024, Workiva reported total revenue of $185.6 million, compared to $158.2 million for the same period in 2023, reflecting a year-over-year increase of 17.4%. The nine months ended September 30, 2024, showed total revenue of $538.8 million, up from $463.4 million in 2023, an increase of 16.3%.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $185.6 million | $158.2 million | $538.8 million | $463.4 million |
| Net Loss | ($17.0 million) | ($56.3 million) | ($46.2 million) | ($123.3 million) |
| Subscription Revenue | $171.0 million | $143.4 million | $486.7 million | $409.9 million |
Revenue Streams
Workiva's revenue is primarily derived from two segments: subscription and support, and professional services. For the nine months ended September 30, 2024, subscription and support revenue was $486.7 million, representing 90.3% of total revenue.
Cost Structure
For the three months ending September 30, 2024, the cost of revenue amounted to $43.7 million, with subscription and support costs at $30.6 million and professional services costs at $13.1 million. The total cost of revenue for the nine months was $126.4 million.
| Cost Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Cost of Revenue | $43.7 million | $38.4 million | $126.4 million | $116.4 million |
| Gross Profit | $141.9 million | $119.8 million | $412.4 million | $347.0 million |
Operating Expenses
Operating expenses for Q3 2024 were $163.7 million, compared to $135.3 million in Q3 2023. For the first nine months of 2024, operating expenses totaled $475.6 million, up from $432.1 million in 2023.
| Operating Expense Breakdown | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Research and Development | $48.4 million | $41.7 million | $142.3 million | $130.2 million |
| Sales and Marketing | $89.8 million | $72.6 million | $257.1 million | $215.2 million |
| General and Administrative | $25.6 million | $21.0 million | $76.2 million | $86.7 million |
Net Loss and Earnings Per Share
For the three months ended September 30, 2024, the company recorded a net loss of $17.0 million, translating to a basic and diluted net loss per share of $(0.31). For the nine months, the net loss was $46.2 million, with a basic and diluted net loss per share of $(0.84).
Cash Flow and Liquidity
As of September 30, 2024, Workiva's cash, cash equivalents, and marketable securities totaled $776.4 million. Cash used in operating activities for the nine months ended September 30, 2024, was $46.5 million, reflecting adjustments for non-cash charges and changes in operating assets and liabilities.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Flow from Operating Activities | ($46.5 million) | ($123.3 million) |
| Cash Flow from Investing Activities | ($58.5 million) | ($182.0 million) |
| Cash Flow from Financing Activities | $8.7 million | $301.2 million |
Acquisition Activities
On June 17, 2024, Workiva acquired Sustain.Life, Inc. for $98.1 million, enhancing its carbon accounting capabilities. This acquisition is expected to integrate with Workiva's existing ESG reporting solutions.
Market Position and Strategy
Workiva continues to focus on expanding its customer base, enhancing its platform capabilities, and driving multi-solution adoption among existing customers. The company maintains a subscription and support revenue retention rate of 97.5% as of September 30, 2024.
How Workiva Inc. (WK) Makes Money
Revenue Streams
Workiva Inc. generates revenue primarily through two main streams: subscription and support services, and professional services.
Subscription and Support Revenue
In the third quarter of 2024, Workiva reported subscription and support revenue of $171.0 million, a 19.3% increase compared to $143.4 million in the same quarter of 2023. For the nine months ended September 30, 2024, subscription and support revenue reached $486.7 million, growing 18.8% from $409.9 million in the prior year.
| Period | Subscription and Support Revenue (in thousands) | % Change |
|---|---|---|
| Q3 2024 | $171,035 | 19.3% |
| Q3 2023 | $143,421 | |
| 9M 2024 | $486,749 | 18.8% |
| 9M 2023 | $409,857 |
Professional Services Revenue
Workiva's professional services revenue was $14.6 million for Q3 2024, a slight decrease of 1.1% from $14.8 million in Q3 2023. For the nine-month period, professional services revenue totaled $52.0 million, down 2.8% from $53.5 million in the previous year.
| Period | Professional Services Revenue (in thousands) | % Change |
|---|---|---|
| Q3 2024 | $14,586 | (1.1%) |
| Q3 2023 | $14,754 | |
| 9M 2024 | $52,042 | (2.8%) |
| 9M 2023 | $53,529 |
Cost of Revenue
For the three months ended September 30, 2024, the total cost of revenue was $43.7 million, compared to $38.4 million in Q3 2023, reflecting a 13.9% increase. The cost of subscription and support services increased to $30.6 million, up 23.2% from $24.9 million in the same quarter of the previous year.
| Period | Cost of Revenue (in thousands) | % Change |
|---|---|---|
| Q3 2024 | $43,671 | 13.9% |
| Q3 2023 | $38,355 | |
| 9M 2024 | $126,366 | 8.6% |
| 9M 2023 | $116,377 |
Operating Expenses
Operating expenses for Q3 2024 amounted to $163.7 million, representing a 21.0% increase compared to $135.3 million in Q3 2023. Major components included:
- Research and Development: $48.4 million (up 16.0% from $41.7 million)
- Sales and Marketing: $89.8 million (up 23.7% from $72.6 million)
- General and Administrative: $25.6 million (up 21.5% from $21.0 million)
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Research and Development | $48,425 | $41,747 | 16.0% |
| Sales and Marketing | $89,756 | $72,576 | 23.7% |
| General and Administrative | $25,551 | $21,022 | 21.5% |
Net Loss
For the three months ended September 30, 2024, Workiva reported a net loss of $17.0 million, improving from a net loss of $56.3 million in the same period of 2023. The net loss per share for Q3 2024 was $(0.31).
| Period | Net Loss (in thousands) | Net Loss Per Share |
|---|---|---|
| Q3 2024 | $(17,000) | $(0.31) |
| Q3 2023 | $(56,269) | $(1.04) |
| 9M 2024 | $(46,227) | $(0.84) |
| 9M 2023 | $(123,329) | $(2.28) |
Key Performance Metrics
As of September 30, 2024, Workiva had:
- Number of customers: 6,237
- Subscription and support revenue retention rate: 97.5%
- Customers with annual contract value of $100k+: 1,926
- Customers with annual contract value of $300k+: 383
- Customers with annual contract value of $500k+: 166
These metrics indicate a strong demand for Workiva's services and a stable customer base committed to renewing their subscriptions, which is crucial for sustaining revenue growth.
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Resources:
- Workiva Inc. (WK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Workiva Inc. (WK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Workiva Inc. (WK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.