Workiva Inc (WK, Financial), a leading cloud platform for assured, integrated reporting, announced its financial results for the third quarter ended September 30, 2023, on October 30, 2023. The company reported a solid quarter with a 21% increase in subscription revenue and an operating profit that exceeded their high-end guidance.
Financial Highlights
The total revenue for Q3 2023 reached $158 million, a 19% increase from $133 million in Q3 2022. Subscription and support revenue contributed $143 million, up 21% versus Q3 2022. Professional services revenue was $15 million, a slight increase compared to the same quarter in the prior year.
GAAP gross profit for Q3 2023 was $120 million compared with $100 million in Q3 2022. GAAP gross margin was 75.8% versus 75.6% in Q3 2022. Non-GAAP gross profit for Q3 2023 was $122 million, an increase of 20% compared with Q3 2022, and non-GAAP gross margin was 76.9% compared to 76.6% in Q3 2022.
GAAP loss from operations for Q3 2023 was $16 million compared with a loss of $30 million in Q3 2022. Non-GAAP income from operations was $5 million compared with a loss of $8 million in Q3 2022.
Customer Growth and Retention
Workiva Inc (WK, Financial) reported a net increase of 404 customers from September 30, 2022, bringing the total to 5,945 customers as of September 30, 2023. The company's revenue retention rate (excluding add-on revenue) was 98%, and the revenue retention rate including add-on revenue was 112%.
As of September 30, 2023, Workiva had 1,561 customers with an annual contract value (“ACV”) of more than $100,000, up 24% from 1,257 customers at September 30, 2022. Workiva had 851 customers with an ACV of more than $150,000, up 26% from 676 customers in Q3 2022. Workiva had 296 customers with an ACV of more than $300,000, up 38% from 214 customers in Q3 2022.
Financial Outlook
For Q4 2023, Workiva expects total revenue to be in the range of $164 million to $165 million. GAAP loss from operations is expected to be in the range of $17 million to $16 million. Non-GAAP income from operations is expected to be in the range of $6 million to $7 million.
For the full year 2023, total revenue is expected to be in the range of $627 million to $628 million. GAAP loss from operations is expected to be in the range of $102 million to $101 million. Non-GAAP income from operations is expected to be in the range of $3 million to $4 million.
Explore the complete 8-K earnings release (here) from Workiva Inc for further details.
