Workiva Reports 17.4% Revenue Growth, Net Loss Improvement in Q3 2024

Workiva Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $185.6 million for the three months ended September 30, 2024, marking a 17.4% increase from $158.2 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $538.8 million, up 16.3% from $463.4 million year-over-year. Subscription and support revenue also saw substantial growth, increasing by 19.3% to $171.0 million for the third quarter and by 18.8% to $486.7 million for the nine-month period.

Despite the revenue growth, Workiva reported a net loss of $17.0 million for the third quarter, an improvement from a net loss of $56.3 million in the same quarter of the previous year. The net loss for the nine months ended September 30, 2024, was $46.2 million, down from $123.3 million in the prior year. The company’s gross profit for the third quarter was $142.0 million, resulting in a gross profit margin of 76.5%, slightly up from 75.8% in the same period last year.

Workiva's total current liabilities increased to $539.2 million as of September 30, 2024, from $484.5 million at the end of 2023. The company’s total liabilities rose to $1.35 billion, compared to $1.31 billion at the end of the previous fiscal year. The accumulated deficit worsened to $(698.9 million) from $(652.6 million) as of December 31, 2023, although total stockholders’ deficit improved to $(50.8 million) from $(89.4 million).

Strategically, Workiva completed the acquisition of Sustain.Life, Inc. on June 17, 2024, for $98.1 million, aimed at launching Workiva Carbon, an audit-ready carbon accounting solution. This acquisition is expected to enhance the company’s ESG reporting capabilities.

The company also reported a notable increase in operating expenses, which rose to $27.5 million for the third quarter, up from $19.4 million in the same period last year. This increase was driven by higher costs in research and development, sales and marketing, and general and administrative expenses.

Workiva's cash, cash equivalents, and marketable securities totaled $776.4 million as of September 30, 2024, reflecting a strong liquidity position. The company continues to focus on expanding its customer base and enhancing its platform capabilities, particularly in the EMEA and APAC regions, while navigating challenges in the SEC and capital markets solutions due to market volatility.