[February 20, 2019] |
|
Workiva Announces Fourth Quarter and Full Year 2018 Financial Results
Workiva (NYSE:WK), the leading cloud provider of connected data,
reporting and compliance solutions, today announced financial results
for its fourth quarter and full year ended December 31, 2018.
"We posted strong results for the fourth quarter and full year 2018,"
said Marty Vanderploeg, CEO of Workiva. "Operating margin improved
significantly in the quarter, and we outperformed our guidance for
revenue, operating loss and loss per share. We remain committed to
achieving profitable growth over time."
"The significant operating efficiencies we gained in 2018 are enabling
us to accelerate growth investments in 2019 in integrated risk, European
financial reporting and compliance, and global statutory reporting,"
said Vanderploeg.
"We expect cash flow from operations to improve significantly in 2019,"
said Stuart Miller, CFO of Workiva. "Our guidance on operating margin
reflects the investments in growth we plan to make in 2019."
"Wdesk is the only cloud platform that provides data assurance and
connected reporting throughout the entire reporting process - from ERP
transactional data to final reports," said Vanderploeg. "As customers
add more use cases in Wdesk, the value of our connected reporting
platform becomes more powerful."
Fourth Quarter 2018 Financial Highlights
-
Revenue: Total revenue for the fourth quarter of 2018 reached
$64.4 million, an increase of 18.2% from $54.5 million in the
fourth quarter of 2017. Subscription and support revenue contributed
$53.8 million, up 18.1% versus the fourth quarter of 2017.
Professional services revenue was $10.7 million, an increase of 19.0%
compared to the same quarter in the prior year.
-
Gross Profit: GAAP gross profit for the fourth quarter of 2018
was $47.0 million compared with $38.4 million in the same quarter of
2017. GAAP gross margin was 73.0% versus 70.5% in the fourth quarter
of 2017. Non-GAAP gross profit for the fourth quarter of 2018 was
$47.4 million, an increase of 22.1% compared with the prior year's
fourth quarter, and non-GAAP gross margin was 73.5% compared to 71.1%
in the fourth quarter of 2017.
-
Loss from Operations: GAAP loss from operations for the fourth
quarter of 2018 was $7.8 million compared with a loss of $14.7 million
in the prior year's fourth quarter. Non-GAAP loss from operations was
$0.3 million, compared with non-GAAP loss from operations of $8.4
million in the fourth quarter of 2017. Adoption of ASC 606 caused loss
from operations to be $4.5 million less for the fourth quarter of 2018
than what would have been recognized under the legacy standard.
-
Net Loss: GAAP net loss for the fourth quarter of 2018 was $7.7
million compared with a net loss of $14.3 million for the prior year's
fourth quarter. GAAP net loss per basic and diluted share was $0.17
compared with a net loss per basic and diluted share of $0.34 in the
fourth quarter of 2017.
-
Non-GAAP net loss for the fourth quarter of 2018 was $0.2 million
compared with a net loss of $8.0 million in the prior year's fourth
quarter. Non-GAAP net loss per basic and diluted share was $0.00
compared with a net loss per basic and diluted share of $0.19 in the
fourth quarter of 2017.
-
Balance Sheet: As of December 31, 2018, Workiva had cash, cash
equivalents and marketable securities totaling $98.3 million, compared
with $97.0 million as of September 30, 2018. Financing obligations
totaled $18.4 million as of December 31, 2018.
Key Metrics and Recent Business Highlights
-
Customers: Workiva had 3,340 customers as of December 31, 2018,
a net increase of 277 customers from December 31, 2017.
-
Revenue Retention Rate: As of December 31, 2018, Workiva's
revenue retention rate (excluding add-on revenue) was 96.1%, and the
revenue retention rate including add-on revenue was 107.1%. Add-on
revenue includes changes for existing customers in new solutions, new
seats and pricing. Revenue retention rates are calculated using the
legacy accounting standard ASC 605. Revenue retention rates will be
calculated using ASC 606 when comparable data becomes available.
-
Large Contracts: As of December 31, 2018, Workiva had 443
customers with an annual contract value (ACV) of more than $100,000,
up 36.7% from 324 customers at December 31, 2017. Workiva had 190
customers with an ACV of more than $150,000, up 30.1% from 146
customers in the fourth quarter of 2017.
-
Fortune's Best Workplaces: Workiva was named one of the FORTUNE
100 Best Companies to Work For® in 2019 by research firm
Great Place to Work and FORTUNE magazine. Workiva was also named to
FORTUNE's 2019 Best Workplaces in Technology list.
Full Year 2018 Financial Highlights
-
Revenue: Total revenue for the full year 2018 was
$244.3 million, an increase of 17.5% compared with $207.9 million in
the prior year. Subscription and support revenue was $200.4 million,
an increase of 18.4% on a year-over-year basis.
-
Gross Profit: GAAP gross profit for 2018 was $178.5 million
compared with $147.6 million in the prior year. GAAP gross margin was
73.0% in 2018. Non-GAAP gross profit was $179.8 million, an increase
of 20.8% compared with the prior year, and non-GAAP gross margin was
73.6%.
-
Loss from Operations: GAAP loss from operations for the full
year 2018 was $49.8 million compared with a loss of $44.3 million in
the prior year. Non-GAAP loss from operations was $13.0 million
compared with a loss of $24.8 million in 2017.
-
Net Loss: GAAP net loss for 2018 was $50.1 million compared
with a net loss of $44.4 million in the prior year. GAAP net loss per
share was $1.15 based on 43.6 million weighted-average shares
outstanding compared with a loss per share of $1.07 based on 41.6
million weighted-average shares outstanding in 2017.
-
Non-GAAP net loss for 2018 was $13.3 million compared with a net loss
of $25.0 million in the prior year. Non-GAAP net loss per share was
$0.31 based on 43.6 million weighted-average shares outstanding
compared with a non-GAAP net loss per share of $0.60 based on 41.6
million weighted-average shares in 2017.
-
Cash Flow: Net cash provided by operating activities was
$6.4 million in 2018, compared to cash provided by operating
activities of $5.5 million in 2017.
Financial Outlook As
of February 20, 2019, Workiva is providing guidance for its first
quarter 2019 and full year 2019 as follows:
First Quarter 2019 Guidance:
-
Total revenue is expected to be in the range of $68.8 million to $69.3
million.
-
GAAP loss from operations is expected to be in the range of $9.5
million to $10.0 million.
-
Non-GAAP loss from operations is expected to be in the range of $1.5
million to $2.0 million.
-
GAAP net loss per basic and diluted share is expected to be in the
range of $0.22 to $0.23.
-
Non-GAAP net loss per basic and diluted share is expected to be in the
range of $0.04 to $0.05.
-
Net loss per basic and diluted share is based on 45.0 million
weighted-average shares outstanding.
Full Year 2019 Guidance:
-
Total revenue is expected to be in the range of $282.5 million to
$284.5 million.
-
GAAP loss from operations is expected to be in the range of $49.5
million to $51.5 million.
-
Non-GAAP loss from operations is expected to be in the range of $15.0
million to $17.0 million.
-
GAAP net loss per basic and diluted share is expected to be in the
range of $1.10 to $1.15.
-
Non-GAAP net loss per basic and diluted share is expected to be in the
range of $0.34 to $0.39.
-
Net loss per basic and diluted share is based on 45.7 million
weighted-average shares outstanding.
Quarterly Conference Call Workiva
will host a conference call today at 5:00 p.m. ET to review the
Company's financial results for the fourth quarter and full year 2018,
in addition to discussing the Company's outlook for the first quarter
and full year 2019. To access this call, dial 833-287-0800 (domestic) or
647-689-4459 (international). The conference ID is 7068028. A live
webcast of the conference call will be accessible in the "Investor
Relations" section of Workiva's website at www.workiva.com.
A replay of this conference call can also be accessed through February
27, 2019 at 800-585-8367 (domestic) or 416-621-4642 (international). The
replay pass code is 7068028. An archived webcast of this conference call
will also be available an hour after the completion of the call in the
"Investor Relations" section of the Company's website at www.workiva.com.
About Workiva Workiva, the
leading cloud provider of connected data, reporting and compliance
solutions, is used by thousands of enterprises across 180 countries,
including more than 75 percent of Fortune 500® companies, and by
government agencies. Our customers have linked over five billion data
elements to trust their data, reduce risk and save time. For more
information about Workiva (NYSE:WK), please visit workiva.com.
Read the Workiva blog: www.workiva.com/blog Follow
Workiva on LinkedIn: www.linkedin.com/company/workiva Like
Workiva on Facebook: www.facebook.com/workiva Follow
Workiva on Twitter: www.twitter.com/workiva
Claim not confirmed by FORTUNE or Fortune Media IP Limited. FORTUNE®
and FORTUNE 500® are registered trademarks of Fortune Media
IP Limited and is used under license. FORTUNE and Fortune Media IP
Limited are not affiliated with, and do not endorse products or services
of, Workiva Inc.
Non-GAAP Financial Measures
The non-GAAP adjustments referenced herein relate to the exclusion of
stock-based compensation and CEO separation expense. A reconciliation of
GAAP to non-GAAP historical financial measures has been provided in
Table I at the end of this press release. A reconciliation of GAAP to
non-GAAP guidance has been provided in Table II at the end of this press
release.
Workiva believes that the use of non-GAAP gross profit and gross margin,
non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss
per share is helpful to its investors. These measures, which are
referred to as non-GAAP financial measures, are not prepared in
accordance with generally accepted accounting principles in the United
States, or GAAP. Non-GAAP gross profit is calculated by excluding
stock-based compensation expense attributable to cost of revenues from
gross profit. Non-GAAP gross margin is the ratio calculated by dividing
non-GAAP gross profit by revenues. Non-GAAP loss from operations is
calculated by excluding stock-based compensation expense and CEO
separation expense from loss from operations. Non-GAAP net loss is
calculated by excluding stock-based compensation expense, net of tax,
and CEO separation expense from net loss. Non-GAAP net loss per share is
calculated by dividing non-GAAP net loss by the weighted- average shares
outstanding as presented in the calculation of GAAP net loss per share.
Because of varying available valuation methodologies, subjective
assumptions and the variety of equity instruments that can impact a
company's non-cash expenses, Workiva believes that providing non-GAAP
financial measures that exclude stock-based compensation expense allows
for more meaningful comparisons between its operating results from
period to period. Because of the non-recurring nature of CEO separation
expense, Workiva believes this expense is not representative of ongoing
operating costs. Workiva's management excludes CEO separation expense
when evaluating its ongoing performance and/or predicting its operating
trends and believes that its investors should have access to the same
set of tools that we use in analyzing results. Workiva's management uses
these non-GAAP financial measures as tools for financial and operational
decision making and for evaluating Workiva's own operating results over
different periods of time.
Non-GAAP financial measures may not provide information that is directly
comparable to that provided by other companies in Workiva's industry, as
other companies in the industry may calculate non-GAAP financial results
differently. In addition, there are limitations in using non-GAAP
financial measures because the non-GAAP financial measures are not
prepared in accordance with GAAP, may be different from non-GAAP
financial measures used by other companies and exclude expenses that may
have a material impact on Workiva's reported financial results. Further,
stock-based compensation expense has been and will continue to be for
the foreseeable future a significant recurring expense in Workiva's
business and an important part of the compensation provided to its
employees. The presentation of non-GAAP financial information is not
meant to be considered in isolation or as a substitute for the directly
comparable financial measures prepared in accordance with GAAP.
Investors should review the reconciliation of non-GAAP financial
measures to the comparable GAAP financial measures included below, and
not rely on any single financial measure to evaluate Workiva's business.
Safe Harbor Statement
Certain statements in this press release are "forward-looking
statements" within the meaning of Section 21E of the Securities Exchange
Act of 1934, as amended, and are subject to the safe harbor created
thereby. These statements relate to future events or the Company's
future financial performance and involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
levels of activity, performance or achievements of the Company or its
industry to be materially different from those expressed or implied by
any forward-looking statements. In particular, statements about the
Company's expectations, beliefs, plans, objectives, assumptions, future
events or future performance contained in this press release are
forward-looking statements. In some cases, forward-looking statements
can be identified by terminology such as "may," "will," "could,"
"would," "should," "expect," "plan," "anticipate," "intend," "believe,"
"estimate," "predict," "potential," "outlook," "guidance" or the
negative of those terms or other comparable terminology.
Please see the Company's documents filed or to be filed with the
Securities and Exchange Commission, including the Company's annual
reports filed on Form 10-K and quarterly reports on Form 10-Q, and any
amendments thereto for a discussion of certain important risk factors
that relate to forward-looking statements contained in this report. The
Company has based these forward-looking statements on its current
expectations, assumptions, estimates and projections. While the Company
believes these expectations, assumptions, estimates and projections are
reasonable, such forward-looking statements are only predictions and
involve known and unknown risks and uncertainties, many of which are
beyond the Company's control. These and other important factors may
cause actual results, performance or achievements to differ materially
from those expressed or implied by these forward-looking statements. Any
forward-looking statements are made only as of the date hereof, and
unless otherwise required by applicable securities laws, the Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
|
WORKIVA INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS (in thousands, except share and per share
amounts)
|
|
|
|
|
Three months ended December 31,
|
|
|
Year ended December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and support
|
|
|
$
|
53,779
|
|
|
|
$
|
45,549
|
|
|
|
$
|
200,392
|
|
|
|
$
|
169,283
|
|
Professional services
|
|
|
10,656
|
|
|
|
8,957
|
|
|
|
43,952
|
|
|
|
38,586
|
|
Total revenue
|
|
|
64,435
|
|
|
|
54,506
|
|
|
|
244,344
|
|
|
|
207,869
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and support (1)
|
|
|
8,637
|
|
|
|
8,779
|
|
|
|
34,215
|
|
|
|
32,646
|
|
Professional services (1)
|
|
|
8,757
|
|
|
|
7,310
|
|
|
|
31,645
|
|
|
|
27,599
|
|
Total cost of revenue
|
|
|
17,394
|
|
|
|
16,089
|
|
|
|
65,860
|
|
|
|
60,245
|
|
Gross profit
|
|
|
47,041
|
|
|
|
38,417
|
|
|
|
178,484
|
|
|
|
147,624
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development (1)
|
|
|
20,773
|
|
|
|
18,870
|
|
|
|
81,602
|
|
|
|
68,172
|
|
Sales and marketing (1)
|
|
|
23,011
|
|
|
|
21,949
|
|
|
|
90,337
|
|
|
|
84,161
|
|
General and administrative (1)
|
|
|
11,047
|
|
|
|
12,271
|
|
|
|
56,333
|
|
|
|
39,594
|
|
Total operating expenses
|
|
|
54,831
|
|
|
|
53,090
|
|
|
|
228,272
|
|
|
|
191,927
|
|
Loss from operations
|
|
|
(7,790
|
)
|
|
|
(14,673
|
)
|
|
|
(49,788
|
)
|
|
|
(44,303
|
)
|
Interest expense
|
|
|
(480
|
)
|
|
|
(451
|
)
|
|
|
(1,827
|
)
|
|
|
(1,845
|
)
|
Other income, net
|
|
|
753
|
|
|
|
797
|
|
|
|
1,791
|
|
|
|
1,783
|
|
Loss before provision (benefit) for income taxes
|
|
|
(7,517
|
)
|
|
|
(14,327
|
)
|
|
|
(49,824
|
)
|
|
|
(44,365
|
)
|
Provision (benefit) for income taxes
|
|
|
204
|
|
|
|
(6
|
)
|
|
|
247
|
|
|
|
61
|
|
Net loss
|
|
|
$
|
(7,721
|
)
|
|
|
$
|
(14,321
|
)
|
|
|
$
|
(50,071
|
)
|
|
|
$
|
(44,426
|
)
|
Net loss per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
$
|
(0.17
|
)
|
|
|
$
|
(0.34
|
)
|
|
|
$
|
(1.15
|
)
|
|
|
$
|
(1.07
|
)
|
Weighted-average common shares outstanding - basic and diluted
|
|
|
44,472,672
|
|
|
|
42,108,764
|
|
|
|
43,640,408
|
|
|
|
41,618,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
|
Year ended December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and support
|
|
|
$
|
140
|
|
|
$
|
216
|
|
|
$
|
700
|
|
|
$
|
738
|
|
Professional services
|
|
|
170
|
|
|
136
|
|
|
619
|
|
|
465
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
1,702
|
|
|
658
|
|
|
5,842
|
|
|
2,224
|
|
Sales and marketing
|
|
|
1,466
|
|
|
842
|
|
|
5,416
|
|
|
2,983
|
|
General and administrative
|
|
|
4,044
|
|
|
4,424
|
|
|
18,264
|
|
|
13,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORKIVA INC.
CONSOLIDATED BALANCE SHEETS (in
thousands)
|
|
|
|
|
|
|
As of December 31,
|
|
|
|
|
|
2018
|
|
|
2017
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
77,584
|
|
|
|
$
|
60,333
|
|
Marketable securities
|
|
|
|
|
20,764
|
|
|
|
16,364
|
|
Accounts receivable, net
|
|
|
|
|
65,107
|
|
|
|
28,800
|
|
Deferred commissions
|
|
|
|
|
8,178
|
|
|
|
2,376
|
|
Other receivables
|
|
|
|
|
1,181
|
|
|
|
975
|
|
Prepaid expenses and other
|
|
|
|
|
4,417
|
|
|
|
6,444
|
|
Total current assets
|
|
|
|
|
177,231
|
|
|
|
115,292
|
|
Property and equipment, net
|
|
|
|
|
41,468
|
|
|
|
40,444
|
|
Deferred commissions, non-current
|
|
|
|
|
10,569
|
|
|
|
-
|
|
Intangible assets, net
|
|
|
|
|
1,266
|
|
|
|
1,118
|
|
Other assets
|
|
|
|
|
577
|
|
|
|
861
|
|
Total assets
|
|
|
|
|
$
|
231,111
|
|
|
|
$
|
157,715
|
|
Liabilities and Stockholders' Deficit
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
5,461
|
|
|
|
$
|
3,060
|
|
Accrued expenses and other current liabilities
|
|
|
|
|
36,353
|
|
|
|
20,429
|
|
Deferred revenue
|
|
|
|
|
148,545
|
|
|
|
104,684
|
|
Current portion of capital lease and financing obligations
|
|
|
|
|
1,222
|
|
|
|
1,168
|
|
Total current liabilities
|
|
|
|
|
191,581
|
|
|
|
129,341
|
|
Deferred revenue, non-current
|
|
|
|
|
25,171
|
|
|
|
22,709
|
|
Other long-term liabilities
|
|
|
|
|
6,891
|
|
|
|
4,174
|
|
Capital lease and financing obligations
|
|
|
|
|
17,208
|
|
|
|
18,425
|
|
Total liabilities
|
|
|
|
|
240,851
|
|
|
|
174,649
|
|
Stockholders' deficit
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
44
|
|
|
|
42
|
|
Additional paid-in-capital
|
|
|
|
|
297,145
|
|
|
|
248,289
|
|
Accumulated deficit
|
|
|
|
|
(307,027
|
)
|
|
|
(265,337
|
)
|
Accumulated other comprehensive income
|
|
|
|
|
98
|
|
|
|
72
|
|
Total stockholders' deficit
|
|
|
|
|
(9,740
|
)
|
|
|
(16,934
|
)
|
Total liabilities and stockholders' deficit
|
|
|
|
|
$
|
231,111
|
|
|
|
$
|
157,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORKIVA INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS (in thousands)
|
|
|
|
|
Three months ended December 31,
|
|
|
Year ended December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(7,721
|
)
|
|
|
$
|
(14,321
|
)
|
|
|
$
|
(50,071
|
)
|
|
|
$
|
(44,426
|
)
|
Adjustments to reconcile net loss to net cash (used in) provided by
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
900
|
|
|
|
934
|
|
|
|
3,781
|
|
|
|
3,546
|
|
Stock-based compensation expense
|
|
|
7,522
|
|
|
|
6,276
|
|
|
|
30,841
|
|
|
|
19,476
|
|
Provision for (recovery of) doubtful accounts
|
|
|
239
|
|
|
|
(258
|
)
|
|
|
550
|
|
|
|
(517
|
)
|
(Accretion) amortization of premiums and discounts on marketable
securities, net
|
|
|
(78
|
)
|
|
|
18
|
|
|
|
(141
|
)
|
|
|
101
|
|
Recognition of deferred government grant obligation
|
|
|
-
|
|
|
|
(635
|
)
|
|
|
-
|
|
|
|
(1,578
|
)
|
Deferred income tax
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
-
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(24,831
|
)
|
|
|
(4,247
|
)
|
|
|
(20,216
|
)
|
|
|
(5,546
|
)
|
Deferred commissions
|
|
|
(5,547
|
)
|
|
|
(168
|
)
|
|
|
(11,155
|
)
|
|
|
(498
|
)
|
Other receivables
|
|
|
211
|
|
|
|
134
|
|
|
|
(205
|
)
|
|
|
577
|
|
Prepaid expenses
|
|
|
1,308
|
|
|
|
(145
|
)
|
|
|
2,020
|
|
|
|
2,952
|
|
Other assets
|
|
|
833
|
|
|
|
692
|
|
|
|
276
|
|
|
|
618
|
|
Accounts payable
|
|
|
(300
|
)
|
|
|
1,198
|
|
|
|
1,699
|
|
|
|
2,206
|
|
Deferred revenue
|
|
|
25,112
|
|
|
|
4,969
|
|
|
|
40,144
|
|
|
|
29,367
|
|
Accrued expenses and other liabilities
|
|
|
1,938
|
|
|
|
(675
|
)
|
|
|
8,886
|
|
|
|
(758
|
)
|
Net cash (used in) provided by operating activities
|
|
|
(419
|
)
|
|
|
(6,228
|
)
|
|
|
6,400
|
|
|
|
5,520
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(380
|
)
|
|
|
(54
|
)
|
|
|
(1,122
|
)
|
|
|
(1,188
|
)
|
Purchase of marketable securities
|
|
|
(6,935
|
)
|
|
|
(3,002
|
)
|
|
|
(24,659
|
)
|
|
|
(14,369
|
)
|
Maturities of marketable securities
|
|
|
11,400
|
|
|
|
1,600
|
|
|
|
20,400
|
|
|
|
9,281
|
|
Purchase of intangible assets
|
|
|
(77
|
)
|
|
|
(53
|
)
|
|
|
(251
|
)
|
|
|
(197
|
)
|
Net cash provided by (used in) investing activities
|
|
|
4,008
|
|
|
|
(1,509
|
)
|
|
|
(5,632
|
)
|
|
|
(6,473
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from option exercises
|
|
|
2,735
|
|
|
|
5,816
|
|
|
|
16,662
|
|
|
|
12,485
|
|
Taxes paid related to net share settlements of stock-based
compensation awards
|
|
|
-
|
|
|
|
(189
|
)
|
|
|
(1,861
|
)
|
|
|
(1,125
|
)
|
Proceeds from shares issued in connection with employee stock
purchase plan
|
|
|
-
|
|
|
|
-
|
|
|
|
3,216
|
|
|
|
-
|
|
Repayment of other long-term debt
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(73
|
)
|
Principal payments on capital lease and financing obligations
|
|
|
(284
|
)
|
|
|
(300
|
)
|
|
|
(1,163
|
)
|
|
|
(1,435
|
)
|
Proceeds from government grants
|
|
|
-
|
|
|
|
29
|
|
|
|
22
|
|
|
|
51
|
|
Payments of issuance costs on line of credit
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(81
|
)
|
Net cash provided by financing activities
|
|
|
2,451
|
|
|
|
5,356
|
|
|
|
16,876
|
|
|
|
9,822
|
|
Effect of foreign exchange rates on cash
|
|
|
(299
|
)
|
|
|
(4
|
)
|
|
|
(393
|
)
|
|
|
183
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
5,741
|
|
|
|
(2,385
|
)
|
|
|
17,251
|
|
|
|
9,052
|
|
Cash and cash equivalents at beginning of period
|
|
|
71,843
|
|
|
|
62,718
|
|
|
|
60,333
|
|
|
|
51,281
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
77,584
|
|
|
|
$
|
60,333
|
|
|
|
$
|
77,584
|
|
|
|
$
|
60,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE I WORKIVA INC. RECONCILIATION OF
NON-GAAP INFORMATION (in thousands, except share and per
share)
|
|
|
|
|
Three months ended December 31,
|
|
|
Year ended December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Gross profit, subscription and support
|
|
|
$
|
45,142
|
|
|
$
|
36,770
|
|
|
$
|
166,177
|
|
|
$
|
136,637
|
Add back: Stock-based compensation
|
|
|
140
|
|
|
216
|
|
|
700
|
|
|
738
|
Gross profit, subscription and support, non-GAAP
|
|
|
$
|
45,282
|
|
|
$
|
36,986
|
|
|
$
|
166,877
|
|
|
$
|
137,375
|
As a percentage of subscription and support revenue, non-GAAP
|
|
|
84.2%
|
|
|
81.2%
|
|
|
83.3%
|
|
|
81.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, professional services
|
|
|
$
|
1,899
|
|
|
$
|
1,647
|
|
|
$
|
12,307
|
|
|
$
|
10,987
|
Add back: Stock-based compensation
|
|
|
170
|
|
|
136
|
|
|
619
|
|
|
465
|
Gross profit, professional services, non-GAAP
|
|
|
$
|
2,069
|
|
|
$
|
1,783
|
|
|
$
|
12,926
|
|
|
$
|
11,452
|
As a percentage of professional services revenue, non-GAAP
|
|
|
19.4%
|
|
|
19.9%
|
|
|
29.4%
|
|
|
29.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
$
|
47,041
|
|
|
$
|
38,417
|
|
|
$
|
178,484
|
|
|
$
|
147,624
|
Add back: Stock-based compensation
|
|
|
310
|
|
|
352
|
|
|
1,319
|
|
|
1,203
|
Gross profit, non-GAAP
|
|
|
$
|
47,351
|
|
|
$
|
38,769
|
|
|
$
|
179,803
|
|
|
$
|
148,827
|
As percentage of revenue, non-GAAP
|
|
|
73.5%
|
|
|
71.1%
|
|
|
73.6%
|
|
|
71.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
$
|
20,773
|
|
|
$
|
18,870
|
|
|
$
|
81,602
|
|
|
$
|
68,172
|
Less: Stock-based compensation
|
|
|
1,702
|
|
|
658
|
|
|
5,842
|
|
|
2,224
|
Research and development, non-GAAP
|
|
|
$
|
19,071
|
|
|
$
|
18,212
|
|
|
$
|
75,760
|
|
|
$
|
65,948
|
As percentage of revenue, non-GAAP
|
|
|
29.6%
|
|
|
33.4%
|
|
|
31.0%
|
|
|
31.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
$
|
23,011
|
|
|
$
|
21,949
|
|
|
$
|
90,337
|
|
|
$
|
84,161
|
Less: Stock-based compensation
|
|
|
1,466
|
|
|
842
|
|
|
5,416
|
|
|
2,983
|
Sales and marketing, non-GAAP
|
|
|
$
|
21,545
|
|
|
$
|
21,107
|
|
|
$
|
84,921
|
|
|
$
|
81,178
|
As percentage of revenue, non-GAAP
|
|
|
33.4%
|
|
|
38.7%
|
|
|
34.8%
|
|
|
39.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
$
|
11,047
|
|
|
$
|
12,271
|
|
|
$
|
56,333
|
|
|
$
|
39,594
|
Less: Stock-based compensation
|
|
|
4,044
|
|
|
4,424
|
|
|
14,643
|
|
|
13,066
|
Less: CEO separation expense(1)
|
|
|
-
|
|
|
-
|
|
|
9,527
|
|
|
-
|
General and administrative, non-GAAP
|
|
|
$
|
7,003
|
|
|
$
|
7,847
|
|
|
$
|
32,163
|
|
|
$
|
26,528
|
As percentage of revenue, non-GAAP
|
|
|
10.9%
|
|
|
14.4%
|
|
|
13.2%
|
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
$
|
(7,790)
|
|
|
$
|
(14,673)
|
|
|
$
|
(49,788)
|
|
|
$
|
(44,303)
|
Add back: Stock-based compensation
|
|
|
7,522
|
|
|
6,276
|
|
|
27,220
|
|
|
19,476
|
Add back: CEO separation expense(1)
|
|
|
-
|
|
|
-
|
|
|
9,527
|
|
|
-
|
Loss from operations, non-GAAP
|
|
|
$
|
(268)
|
|
|
$
|
(8,397)
|
|
|
$
|
(13,041)
|
|
|
$
|
(24,827)
|
As percentage of revenue, non-GAAP
|
|
|
(0.4)%
|
|
|
(15.4)%
|
|
|
(5.3)%
|
|
|
(11.9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(7,721)
|
|
|
$
|
(14,321)
|
|
|
$
|
(50,071)
|
|
|
$
|
(44,426)
|
Add back: Stock-based compensation
|
|
|
7,522
|
|
|
6,276
|
|
|
27,220
|
|
|
19,476
|
Add back: CEO separation expense(1)
|
|
|
-
|
|
|
-
|
|
|
9,527
|
|
|
-
|
Net loss, non-GAAP
|
|
|
$
|
(199)
|
|
|
$
|
(8,045)
|
|
|
$
|
(13,324)
|
|
|
$
|
(24,950)
|
As percentage of revenue, non-GAAP
|
|
|
(0.3)%
|
|
|
(14.8)%
|
|
|
(5.5)%
|
|
|
(12.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per basic and diluted share:
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.34)
|
|
|
$
|
(1.15)
|
|
|
$
|
(1.07)
|
Add back: Stock-based compensation
|
|
|
0.17
|
|
|
0.15
|
|
|
0.62
|
|
|
0.47
|
Add back: CEO separation expense(1)
|
|
|
-
|
|
|
-
|
|
|
0.22
|
|
|
-
|
Net loss per basic and diluted share, non-GAAP
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.19)
|
|
|
$
|
(0.31)
|
|
|
$
|
(0.60)
|
Weighted-average common shares outstanding - basic and diluted,
non-GAAP
|
|
|
44,472,672
|
|
|
42,108,764
|
|
|
43,640,408
|
|
|
41,618,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) CEO separation expense in the year ending December 31, 2018
includes stock-based compensation of $3.6 million related to the
acceleration of eligible stock awards and separation payment expense
of $5.9 million pursuant to the former CEO's employment agreement.
Included as separation payment expense are cash payments made in
excess of the related bonus accrual recorded through the date of
separation.
|
|
|
TABLE II WORKIVA INC. RECONCILIATION OF
NON-GAAP GUIDANCE (in thousands, except share and per
share data)
|
|
|
|
|
|
|
Three months ending March 31, 2019
|
|
|
Year ending December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations, GAAP range
|
|
|
|
|
$
|
(9,500
|
)
|
|
-
|
|
$
|
(10,000
|
)
|
|
|
$
|
(49,500
|
)
|
|
-
|
|
$
|
(51,500
|
)
|
Add back: Stock-based compensation
|
|
|
|
|
8,000
|
|
|
|
|
8,000
|
|
|
|
34,500
|
|
|
|
|
34,500
|
|
Loss from operations, non-GAAP range
|
|
|
|
|
$
|
(1,500
|
)
|
|
-
|
|
$
|
(2,000
|
)
|
|
|
$
|
(15,000
|
)
|
|
-
|
|
$
|
(17,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, GAAP range
|
|
|
|
|
$
|
(0.22
|
)
|
|
-
|
|
$
|
(0.23
|
)
|
|
|
$
|
(1.10
|
)
|
|
-
|
|
$
|
(1.15
|
)
|
Add back: Stock-based compensation
|
|
|
|
|
0.18
|
|
|
|
|
0.18
|
|
|
|
0.76
|
|
|
|
|
0.76
|
|
Net loss per share, non-GAAP range
|
|
|
|
|
$
|
(0.04
|
)
|
|
-
|
|
$
|
(0.05
|
)
|
|
|
$
|
(0.34
|
)
|
|
-
|
|
$
|
(0.39
|
)
|
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Weighted-average common shares outstanding - basic and diluted
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45,000,000
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45,000,000
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|
|
|
45,700,000
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|
|
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45,700,000
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190220005845/en/
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