(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
( | ||||||||
(Address of principal executive offices and zip code) | ||||||||
( | ||||||||
(Registrant's telephone number, including area code) | ||||||||
___________________________________ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Exhibit Number | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
WORKIVA INC. | |||||
By: | /s/ Jill Klindt | ||||
Name: | Jill Klindt | ||||
Title: | Executive Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer | ||||
### | ||||||||||||||
Investor Contact: | Media Contact: | |||||||||||||
Mike Rost | Darcie Brossart | |||||||||||||
Workiva Inc. | Workiva Inc. | |||||||||||||
investor@workiva.com | press@workiva.com | |||||||||||||
WORKIVA INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) | |||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Subscription and support | $ | 136,772 | $ | 113,353 | $ | 266,436 | $ | 220,473 | |||||||||||||||
Professional services | 18,250 | 18,196 | 38,775 | 40,750 | |||||||||||||||||||
Total revenue | 155,022 | 131,549 | 305,211 | 261,223 | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Subscription and support (1) | 25,083 | 18,915 | 49,216 | 37,448 | |||||||||||||||||||
Professional services (1) | 14,421 | 13,322 | 28,806 | 25,662 | |||||||||||||||||||
Total cost of revenue | 39,504 | 32,237 | 78,022 | 63,110 | |||||||||||||||||||
Gross profit | 115,518 | 99,312 | 227,189 | 198,113 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Research and development (1) | 42,697 | 39,177 | 88,488 | 75,061 | |||||||||||||||||||
Sales and marketing (1) | 71,882 | 64,219 | 142,592 | 120,319 | |||||||||||||||||||
General and administrative (1) | 23,627 | 24,108 | 65,638 | 48,102 | |||||||||||||||||||
Total operating expenses | 138,206 | 127,504 | 296,718 | 243,482 | |||||||||||||||||||
Loss from operations | (22,688) | (28,192) | (69,529) | (45,369) | |||||||||||||||||||
Interest income | 4,535 | 605 | 8,252 | 885 | |||||||||||||||||||
Interest expense | (1,499) | (1,512) | (3,000) | (3,030) | |||||||||||||||||||
Other (expense) and income, net | (439) | 668 | (1,379) | 503 | |||||||||||||||||||
Loss before provision for income taxes | (20,091) | (28,431) | (65,656) | (47,011) | |||||||||||||||||||
Provision for income taxes | 819 | 430 | 1,404 | 343 | |||||||||||||||||||
Net loss | $ | (20,910) | $ | (28,861) | $ | (67,060) | $ | (47,354) | |||||||||||||||
Net loss per common share: | |||||||||||||||||||||||
Basic and diluted | $ | (0.39) | $ | (0.55) | $ | (1.25) | $ | (0.90) | |||||||||||||||
Weighted-average common shares outstanding - basic and diluted | 54,009,963 | 52,850,470 | 53,850,986 | 52,724,051 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Subscription and support | $ | 1,413 | $ | 912 | $ | 2,485 | $ | 1,702 | |||||||||||||||
Professional services | 667 | 593 | 1,300 | 1,045 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Research and development | 4,825 | 3,148 | 9,522 | 5,873 | |||||||||||||||||||
Sales and marketing | 6,703 | 5,646 | 13,661 | 9,731 | |||||||||||||||||||
General and administrative | 7,002 | 8,148 | 31,684 | 15,405 |
WORKIVA INC. CONSOLIDATED BALANCE SHEETS (in thousands) | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 198,939 | $ | 240,197 | |||||||
Marketable securities | 267,312 | 190,595 | |||||||||
Accounts receivable, net | 84,272 | 106,316 | |||||||||
Deferred costs | 38,471 | 38,350 | |||||||||
Other receivables | 5,472 | 6,674 | |||||||||
Prepaid expenses and other | 25,419 | 17,957 | |||||||||
Total current assets | 619,885 | 600,089 | |||||||||
Property and equipment, net | 25,380 | 27,096 | |||||||||
Operating lease right-of-use assets | 11,493 | 13,932 | |||||||||
Deferred costs, non-current | 30,810 | 33,682 | |||||||||
Goodwill | 111,154 | 109,740 | |||||||||
Intangible assets, net | 25,643 | 28,234 | |||||||||
Other assets | 6,430 | 6,847 | |||||||||
Total assets | $ | 830,795 | $ | 819,620 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 5,312 | $ | 6,174 | |||||||
Accrued expenses and other current liabilities | 91,118 | 83,999 | |||||||||
Deferred revenue | 327,365 | 316,263 | |||||||||
Finance lease obligations | 518 | 504 | |||||||||
Total current liabilities | 424,313 | 406,940 | |||||||||
Convertible senior notes, non-current | 340,907 | 340,257 | |||||||||
Deferred revenue, non-current | 39,822 | 38,237 | |||||||||
Other long-term liabilities | 1,527 | 1,518 | |||||||||
Operating lease liabilities, non-current | 9,749 | 12,102 | |||||||||
Finance lease obligations, non-current | 14,320 | 14,583 | |||||||||
Total liabilities | 830,638 | 813,637 | |||||||||
Stockholders’ equity | |||||||||||
Common stock | 54 | 53 | |||||||||
Additional paid-in-capital | 595,693 | 537,732 | |||||||||
Accumulated deficit | (592,176) | (525,116) | |||||||||
Accumulated other comprehensive loss | (3,414) | (6,686) | |||||||||
Total stockholders’ equity | 157 | 5,983 | |||||||||
Total liabilities and stockholders’ equity | $ | 830,795 | $ | 819,620 |
WORKIVA INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net loss | $ | (20,910) | $ | (28,861) | $ | (67,060) | $ | (47,354) | |||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 2,867 | 2,725 | 5,667 | 4,684 | |||||||||||||||||||
Stock-based compensation expense | 20,610 | 18,447 | 58,652 | 33,756 | |||||||||||||||||||
(Recovery of) provision for doubtful accounts | (57) | 20 | 49 | (9) | |||||||||||||||||||
Realized loss on sale of available-for-sale securities, net | 147 | — | 708 | — | |||||||||||||||||||
(Accretion) amortization of premiums and discounts on marketable securities, net | (1,572) | 453 | (2,600) | 1,113 | |||||||||||||||||||
Amortization of issuance costs and debt discount | 325 | 324 | 650 | 648 | |||||||||||||||||||
Deferred income tax | 7 | 63 | (3) | (148) | |||||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | (6,886) | (4,844) | 22,477 | 1,737 | |||||||||||||||||||
Deferred costs | 1,362 | (2,734) | 3,132 | (1,290) | |||||||||||||||||||
Operating lease right-of-use asset | 1,268 | 1,307 | 2,563 | 2,608 | |||||||||||||||||||
Other receivables | (381) | 385 | (286) | 565 | |||||||||||||||||||
Prepaid expenses | (1,705) | (1,591) | (7,437) | (2,723) | |||||||||||||||||||
Other assets | 510 | 12 | 436 | 35 | |||||||||||||||||||
Accounts payable | (1,088) | (2,300) | (881) | 2,064 | |||||||||||||||||||
Deferred revenue | 21,060 | 13,192 | 11,105 | 13,798 | |||||||||||||||||||
Operating lease liability | (1,207) | (1,302) | (2,379) | (2,644) | |||||||||||||||||||
Accrued expenses and other liabilities | 11,629 | 13,388 | 6,749 | 907 | |||||||||||||||||||
Net cash provided by operating activities | 25,979 | 8,684 | 31,542 | 7,747 | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Purchase of property and equipment | (639) | (671) | (837) | (1,203) | |||||||||||||||||||
Purchase of marketable securities | (51,204) | (23,798) | (177,019) | (57,946) | |||||||||||||||||||
Sale of marketable securities | 21,339 | — | 65,052 | 14,981 | |||||||||||||||||||
Maturities of marketable securities | 8,000 | 40,536 | 39,905 | 66,786 | |||||||||||||||||||
Acquisitions, net of cash acquired | — | (99,186) | — | (99,186) | |||||||||||||||||||
Purchase of intangible assets | (40) | (6) | (119) | (46) | |||||||||||||||||||
Net cash used in investing activities | (22,544) | (83,125) | (73,018) | (76,614) | |||||||||||||||||||
WORKIVA INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Proceeds from option exercises | 747 | 1,145 | 2,204 | 1,970 | |||||||||||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | (1,212) | (1,344) | (8,440) | (9,914) | |||||||||||||||||||
Proceeds from shares issued in connection with employee stock purchase plan | — | — | 5,546 | 5,218 | |||||||||||||||||||
Principal payments on finance lease obligations | (125) | (446) | (249) | (888) | |||||||||||||||||||
Net cash used in financing activities | (590) | (645) | (939) | (3,614) | |||||||||||||||||||
Effect of foreign exchange rates on cash | 609 | (1,737) | 1,157 | (1,652) | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 3,454 | (76,823) | (41,258) | (74,133) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 195,485 | 303,076 | 240,197 | 300,386 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 198,939 | $ | 226,253 | $ | 198,939 | $ | 226,253 |
TABLE I WORKIVA INC. RECONCILIATION OF NON-GAAP INFORMATION (in thousands, except share and per share) | |||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Gross profit, subscription and support | $ | 111,689 | $ | 94,438 | $ | 217,220 | $ | 183,025 | |||||||||||||||
Add back: Stock-based compensation | 1,413 | 912 | 2,485 | 1,702 | |||||||||||||||||||
Gross profit, subscription and support, non-GAAP | $ | 113,102 | $ | 95,350 | $ | 219,705 | $ | 184,727 | |||||||||||||||
Gross profit, professional services | $ | 3,829 | $ | 4,874 | $ | 9,969 | $ | 15,088 | |||||||||||||||
Add back: Stock-based compensation | 667 | 593 | 1,300 | 1,045 | |||||||||||||||||||
Gross profit, professional services, non-GAAP | $ | 4,496 | $ | 5,467 | $ | 11,269 | $ | 16,133 | |||||||||||||||
Gross profit | $ | 115,518 | $ | 99,312 | $ | 227,189 | $ | 198,113 | |||||||||||||||
Add back: Stock-based compensation | 2,080 | 1,505 | 3,785 | 2,747 | |||||||||||||||||||
Gross profit, non-GAAP | $ | 117,598 | $ | 100,817 | $ | 230,974 | $ | 200,860 | |||||||||||||||
Cost of revenue, subscription and support | $ | 25,083 | $ | 18,915 | $ | 49,216 | $ | 37,448 | |||||||||||||||
Less: Stock-based compensation | 1,413 | 912 | 2,485 | 1,702 | |||||||||||||||||||
Cost of revenue, subscription and support, non-GAAP | $ | 23,670 | $ | 18,003 | $ | 46,731 | $ | 35,746 | |||||||||||||||
Cost of revenue, professional services | $ | 14,421 | $ | 13,322 | $ | 28,806 | $ | 25,662 | |||||||||||||||
Less: Stock-based compensation | 667 | 593 | 1,300 | 1,045 | |||||||||||||||||||
Cost of revenue, professional services, non-GAAP | $ | 13,754 | $ | 12,729 | $ | 27,506 | $ | 24,617 | |||||||||||||||
Research and development | $ | 42,697 | $ | 39,177 | $ | 88,488 | $ | 75,061 | |||||||||||||||
Less: Stock-based compensation | 4,825 | 3,148 | 9,522 | 5,873 | |||||||||||||||||||
Less: Amortization of acquisition-related intangibles | 891 | 869 | 1,777 | 1,364 | |||||||||||||||||||
Research and development, non-GAAP | $ | 36,981 | $ | 35,160 | $ | 77,189 | $ | 67,824 | |||||||||||||||
Sales and marketing | $ | 71,882 | $ | 64,219 | $ | 142,592 | $ | 120,319 | |||||||||||||||
Less: Stock-based compensation | 6,703 | 5,646 | 13,661 | 9,731 | |||||||||||||||||||
Less: Amortization of acquisition-related intangibles | 606 | 586 | 1,207 | 786 | |||||||||||||||||||
Sales and marketing, non-GAAP | $ | 64,573 | $ | 57,987 | $ | 127,724 | $ | 109,802 | |||||||||||||||
General and administrative | $ | 23,627 | $ | 24,108 | $ | 65,638 | $ | 48,102 | |||||||||||||||
Less: Stock-based compensation | 7,002 | 8,148 | 31,684 | 15,405 | |||||||||||||||||||
General and administrative, non-GAAP | $ | 16,625 | $ | 15,960 | $ | 33,954 | $ | 32,697 | |||||||||||||||
Loss from operations | $ | (22,688) | $ | (28,192) | $ | (69,529) | $ | (45,369) | |||||||||||||||
Add back: Stock-based compensation | 20,610 | 18,447 | 58,652 | 33,756 | |||||||||||||||||||
Add back: Amortization of acquisition-related intangibles | 1,497 | 1,455 | 2,984 | 2,150 | |||||||||||||||||||
Loss from operations, non-GAAP | $ | (581) | $ | (8,290) | $ | (7,893) | $ | (9,463) | |||||||||||||||
TABLE I WORKIVA INC. RECONCILIATION OF NON-GAAP INFORMATION (in thousands, except share and per share) | |||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net loss | $ | (20,910) | $ | (28,861) | $ | (67,060) | $ | (47,354) | |||||||||||||||
Add back: Stock-based compensation | 20,610 | 18,447 | 58,652 | 33,756 | |||||||||||||||||||
Add back: Amortization of acquisition-related intangibles | 1,497 | 1,455 | 2,984 | 2,150 | |||||||||||||||||||
Net income (loss), non-GAAP | $ | 1,197 | $ | (8,959) | $ | (5,424) | $ | (11,448) | |||||||||||||||
Net loss per basic and diluted share: | $ | (0.39) | $ | (0.55) | $ | (1.25) | $ | (0.90) | |||||||||||||||
Add back: Stock-based compensation | 0.38 | 0.35 | 1.09 | 0.64 | |||||||||||||||||||
Add back: Amortization of acquisition-related intangibles | 0.03 | 0.03 | 0.06 | 0.04 | |||||||||||||||||||
Net income (loss) per basic share, non-GAAP | $ | 0.02 | $ | (0.17) | $ | (0.10) | $ | (0.22) | |||||||||||||||
Net income (loss) per diluted share, non-GAAP | $ | 0.02 | $ | (0.17) | $ | (0.10) | $ | (0.22) | |||||||||||||||
Weighted-average common shares outstanding - basic, non-GAAP | 54,009,963 | 52,850,470 | 53,850,986 | 52,724,051 | |||||||||||||||||||
Weighted-average common shares outstanding - diluted, non-GAAP | 55,793,636 | 52,850,470 | 53,850,986 | 52,724,051 |
TABLE II WORKIVA INC. RECONCILIATION OF NON-GAAP GUIDANCE (in thousands, except share and per share data) | |||||||||||||||||||||||
Three months ending September 30, 2023 | Year ending December 31, 2023 | ||||||||||||||||||||||
Loss from operations, GAAP range | $ | (24,000) | - | $ | (23,000) | $ | (109,000) | - | $ | (107,000) | |||||||||||||
Add back: Stock-based compensation | 21,500 | 21,500 | 100,100 | 100,100 | |||||||||||||||||||
Add back: Amortization of acquisition-related intangibles | 1,500 | 1,500 | 5,900 | 5,900 | |||||||||||||||||||
Net loss from operations, non-GAAP range | $ | (1,000) | - | $ | — | $ | (3,000) | - | $ | (1,000) | |||||||||||||
Net loss per share, GAAP range | $ | (0.40) | - | $ | (0.38) | $ | (1.88) | - | $ | (1.85) | |||||||||||||
Add back: Stock-based compensation | 0.40 | 0.40 | 1.86 | 1.86 | |||||||||||||||||||
Add back: Amortization of acquisition-related intangibles | 0.03 | 0.03 | 0.11 | 0.11 | |||||||||||||||||||
Net income per share, non-GAAP range | $ | 0.03 | - | $ | 0.05 | $ | 0.09 | - | $ | 0.12 | |||||||||||||
Weighted-average common shares outstanding - basic | 54,100,000 | 54,100,000 | 54,000,000 | 54,000,000 |
Cover Page |
Aug. 03, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Aug. 03, 2023 |
Entity Registrant Name | WORKIVA INC |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-36773 |
Entity Tax Identification Number | 47-2509828 |
Entity Address, Address Line One | 2900 University Blvd |
Entity Address, City or Town | Ames |
Entity Address, State or Province | IA |
Entity Address, Postal Zip Code | 50010 |
City Area Code | 888 |
Local Phone Number | 275-3125 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A common stock, par value $.001 |
Trading Symbol | WK |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001445305 |
Amendment Flag | false |
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