At Workiva, the financial landscape is evolving in 2024. In this article, we’ll focus on Workiva net worth, financial growth, and their revenue from professional services.
As the market cap sits at $4.52 billion, Ando Money dives into what drives this success and how the company’s subscription services contribute to its overall growth.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Workiva Inc. |
| Full Name | Workiva Inc. |
| Website | www.workiva.com |
| Industry | Cloud-based Software, Financial Reporting, ESG, GRC |
| Traded as | NYSE: WK |
| ISIN | N/A |
| Founded | 2008 |
| Founders | Matt Rizai, Joseph Howell, Dan Murray |
| Country/Territory | United States |
| Headquarters | Ames, Iowa, U.S. |
| Chief Executive Officer | Julie Iskow |
| Number of Employees | N/A |
| Market Cap | $4.52 billion |
| Total Assets | $1.24 billion |
| Total Equity | -77.7 million |
| Revenue | $178 million (Q2 2024) |
| Net Income | $9 million (Non-GAAP, Q2 2024) |
What is the Net Worth/Market Cap Of Workiva in 2024?
Workiva’s market cap in 2024 is estimated to be around $4.52 billion. This places it as one of the notable companies in the cloud-based software and financial reporting industry.
To put this in perspective, it sits alongside other industry players, many of which have seen varying levels of market growth over the past year.
Here are some related competitors and brands that share the space:
- ServiceNow
- Docusign
- Coupa Software
- Anaplan
- Smartsheet
- Box
- BlackLine
- Tableau
- Splunk
- Salesforce
Workiva’s positioning within these companies showcases its impact in financial reporting and SaaS.
Explore more details about companies leading in finances in our largest firms in the world analysis.
Workiva Financial Performance Overview
Subscription Services Drive Financial Growth
Workiva’s subscription services remain a key contributor to its success. In Q2 2024, subscription revenue grew by 18% YoY, reaching $161 million.
The platform’s ability to attract and retain clients has played a pivotal role. Customers with an annual contract value (ACV) over $100K have grown to 1,768, indicating a substantial trust in their services.
By offering scalable, cloud-based solutions, Workiva continues to foster relationships with enterprises seeking to streamline their financial and ESG reporting.
Revenue from Professional Services
Although subscription revenue is rising, professional services revenue has seen a slight dip. In Q2 2024, professional services generated $17 million, a decline of 8% from the previous year.
While this has been a challenge, the dip can be attributed to the shifting focus toward subscription models.
However, professional services still provide essential implementation and consultation support, helping clients fully integrate Workiva’s solutions.
Customer Acquisition and Contract Value Growth
One of Workiva’s greatest strengths lies in its growing customer base.
As of June 2024, Workiva had a total of 6,147 customers, a net increase of 287 from the previous year.
Larger contracts have also been a significant factor in revenue growth.
Customers with contracts worth over $300K increased by 31%, signaling the company’s ability to secure and expand long-term commitments with major clients.
Importance of Gross Profit Margins in Financial Health
In terms of profitability, Workiva’s gross profit has shown notable growth. GAAP gross profit for Q2 2024 was $136 million, with a 76.8% gross margin.
On a non-GAAP basis, the gross margin improved further to 78.3%.
This improvement reflects both an increase in revenue and tighter control over operational costs, enabling Workiva to maintain profitability even in competitive market conditions.
Operating Losses and Strategies for Improvement
Despite these gains, Workiva has continued to report operating losses under GAAP. In Q2 2024, Workiva recorded a $23 million loss from operations, though this was flat compared to last year.
The company has made strides toward improving its financial standing, achieving a $4 million non-GAAP income from operations, compared to a $1 million loss in the previous year.
These improvements reflect effective cost control and the positive impact of subscription growth.
Cash Reserves and Liquidity Management
Workiva’s liquidity remains strong. As of June 30, 2024, the company had $741 million in cash, cash equivalents, and marketable securities.
This substantial reserve ensures that Workiva has enough flexibility to navigate market changes and invest in future growth.
However, with $763 million in convertible senior notes outstanding, debt management remains a critical factor in long-term financial stability.
The Role of Stock Repurchase Programs in Shareholder Value
In 2024, Workiva announced a $100 million share repurchase program aimed at enhancing shareholder value.
This strategic move signals confidence in the company’s future and aims to boost stockholder returns.
While there is no minimum repurchase commitment, the plan allows Workiva to adjust based on market conditions and further strengthen equity over time.
Financial Guidance and Revenue Outlook for 2024
Looking forward, Workiva has projected its 2024 revenue to fall between $727 million and $729 million.
This optimistic forecast is driven by the continued demand for subscription services and enterprise-level contracts.
Despite ongoing GAAP losses, the company expects non-GAAP income from operations to range between $29 million and $31 million by the end of the year, indicating further improvements in profitability.
FAQs About Workiva
How has Workiva’s subscription revenue grown in 2024?
Its subscription revenue increased by 18% in Q2 2024, contributing $161 million to the company’s overall financials. This growth highlights the success of its SaaS model.
What role do professional services play in Workiva’s revenue?
Although its professional services revenue decreased by 8% YoY, they still provided $17 million in Q2 2024, playing a crucial role in supporting customers through implementations.
How many customers does Workiva have as of 2024?
It had a total of 6,147 customers by June 30, 2024, which is a net increase of 287 customers compared to the previous year.
What is Workiva’s operating loss in 2024?
The company reported a $23 million operating loss in Q2 2024, though the non-GAAP income from operations was $4 million.
What is Workiva’s financial outlook for the full year 2024?
Its projected revenue for 2024 is estimated to range between $727 million and $729 million, with an expected non-GAAP income from operations between $29 million and $31 million.
Conclusion
Workiva continues to show steady financial progress, balancing growth with operational improvements.
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