Slide 1: Workiva Inc. Q2 2023 Investor Presentation
Workiva Inc. Q2 2023 Investor Presentation
Slide 2: Safe Harbor
Safe Harbor This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including any statements regarding our future results of operations and financial position, our business strategy and plans and our objectives f
Slide 3: Workiva mission: power transparent reporting for a better world
Workiva is on a mission to power transparent reporting for a better world. We build and deliver the world’s leading regulatory, financial, and ESG reporting solutions to meet stakeholder demands for action, transparency, and disclosure of financial and non-financial data. 1
Slide 4: Right platform. Right solutions. Right time.
Right platform. Right solutions. Right time. Our market opportunity remains strong Digital Remote & The cloud transformation hybrid work Disparate data Investor Regulations sources scrutiny 2
Slide 5: Winning Strategy
Winning Strategy Fit-for-Purpose Connected Partner Global Solutions Platform Ecosystem Excellence Fit-for-purpose, best of Best in class open, High performing partner Expanded global breed solutions (FR + connected, intelligent, ecosystem extending footprint with excellence ESG + GRC) that are intui
Slide 6: Large and Growing Global TAM
Large and Growing Global TAM $25 Billion $6,300 $4,300 $3,900 A&F $3,200 GRC $1,500 ESG $1,300 $1,200 Industry $1,300 $500 $900 $200 $400 APAC EMEA N.A. 4
Slide 7: Complexity is only growing.
Complexity is only growing. Frameworks SOX Data Entry Emails Financial ESG & Risk Reporting Assessments Sustainability Meetings Data Version Final Requests PBCs 2.7 Fluxes Audit XBRL Reports Board Shared Slack Deck Drives Policies & Procedures Checklists GRC Phone Controls Calls Testing Evidence Pap
Slide 8: FR + ESG + GRC unified platform
The ONLY unified FR + ESG + GRC platform for financial TEAMS reporting, Risk Accounting Finance ESG, and GRC. Sustainability Audit Legal 6
Slide 9: A Platform to Automate Financial Reporting
Financial Reporting A Platform to Automate Financial Reporting Connect Transform Report Automate Financial data that’s Stronger business insights Improved job satisfaction trusted & accessible to executives & the board and reduced turnover Source system integrations Real-time information Easy to use
Slide 10: Chosen by the best Accounting & Finance teams
Chosen by the best Accounting & Finance teams More than 5,700 organizations use the Workiva platform across the globe. Discover more here! I can’t imagine what life As an entry is booked into SAP software, we can rerun our chains and data and We have a lot more trust would be like without [Workiva].
Slide 11: A Market Leading GRC Platform
Audit & Risk A Market Leading GRC Platform Increase trust Save time and focus Drive smarter, and transparency on value-added work data-driven decisions Workflow & Task Management Powerful Data Linking Risk Heatmaps & Dashboards Role-Based Permissions Automated PBC Requests Built-In Audit Analytics U
Slide 12: Chosen by the best Audit & Risk teams across the globe
Chosen by the best Audit & Risk teams across the globe More than 5,700 organizations use the Workiva platform. Discover more here! I don’t think Workiva has a peer as David Gamble I don't know what we would be doing right now without Nancy Jordan far as breadth of vision and Chief Audit Executive Wo
Slide 13: ESG Regulations Gaining Traction Across the Globe
ESG Regulations Gaining Traction Across the Globe United States European Union United Kingdom APAC • SEC Climate Disclosure • CSRD extending ESG scope • Multiple UK • NZ, Singapore, HK, and Rule further clarity in (audit required) Government Regulators Japan have adopted limited October 2023 • July
Slide 14: Chosen by the best ESG & Sustainability teams
Chosen by the best ESG & Sustainability teams More than 5,700 organizations use the Workiva platform across the globe. Discover more here! Our leadership really demonstrated that ESG is a top-level priority. Aya Kiy Associate Director, ESG–Legal It’s an end-to-end solution. I didn’t see anyone who c
Slide 15: A Platform for ESG & Sustainability
Con ESG & A Platform for ESG & Sustainability Re Trans Auto Sustainability nec por form mate t Drive transformation and Enhance consistency and trust t Increase core team efficiency agility with value-added work with a single source of truth with a successful on ramp Real time collaboration Framewor
Slide 16: Platform Account Expansion
PLATFORM Fortune® 100 Aerospace 10 year long loyal SEC customer ACCOUNT and defense company EXPANSION Assured Integrated Reporting Existing SEC + GRC + Global statutory reporting customer Privately held IT infrastructure services Purchased - Private company provider PLATFORM reporting + Global statu
Slide 17: Q2 2023 Highlights
Q2 2023 Highlights Subscription Revenue = 21% Q2 '23 Subscription 21% $137M Revenue Growth $113M $71M $91M = 98% Q2 '23 Gross dollar retention $60M $49M = 111% Q2 '23 Net dollar retention with add-ons Q2 '18 Q2 '19 Q2 '20 Q2 '21 Q2 '22 Q2 '23 15
Slide 18: Accelerating Growth in New Customer Logos
Accelerating Growth in New Customer Logos 6,000 9% 5,860 5,500 5,381 5,000 4,500 Customer Count 4,000 3,949 3,500 3,512 3,421 3,222 3,000 2,500 2,000 Q2 '18 Q2 '19 Q2 '20 Q2 '21 Q2 '22 Q2 '23 Total Customer Count 16
Slide 19: Revenue Retention Remains Strong
Revenue Retention Remains Strong Revenue retention w/add-ons 115.0% (Net revenue retention) 110.0% 105.0% Revenue retention rate 100.0% (Gross revenue retention) 95.0% '18 '18 ' 18 '18 '19 '19 '19 '19 '20 '20 '20 '20 '21 '21 '21 '21 '22 '22 '22 '22 '23 '23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 20: Growth in Large ACV Customers
Growth in Large ACV Customers > $100k ACV > $150k ACV > $300k ACV 823 272 28% 40% 24% 1,470 642 1,186 194 952 500 159 Q2 '21 Q2 '22 Q2 '23 Q2 '21 Q2 '22 Q2 '23 Q2 '21 Q2 '22 Q2 '23 18
Slide 21: Solution Expansion by Revenue
Solution Expansion by Revenue % of Total Revenue* 65% 63% 62% 60% 58% 56% 56% 55% 54% 55% 51% 49% 50% 45% 46% 44% 44% 45% 42% 40% 37% 38% 35% Q2 '16 Q2 '17 Q2 '18 Q2 '19 Q2 '20 Q2 '21 Q2 '22 Q2 '23 Single Solution Customers Multi-Solution Customers 19
Slide 22: 2023 Guidance Summary
2023 Guidance Summary* Total Revenue Growth Rate Non-GAAP Operating Profit/Loss 20.0% $10M 15.0% $5M $6.4 10.0% $0M $(0.6) $(0.5) 17.8% 17.1% $(2.0) 15.8% 15.6% 16.6% $(7.3) 5.0% $(5)M —% $(10)M Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23 Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23 Actual Actual Guidance Implied Guid
Slide 23: Operating Model
Operating Model 2027- Percentage of Revenue 2019-A 2020-A 2021-A 2022-A 2023 YTD Target Subscription & support revenue 83% 84% 86% 86% 87% ~92% Professional services revenue 17% 16% 14% 14% 13% ~8% Consolidated gross margin* 73% 75% 78% 77% 76% ~82% Research & development* 27% 25% 24% 25% 25% ~19% S
Slide 24: Non-GAAP Reconciliation
Non-GaaP Reconciliation yy”
Slide 25: Reconciliation of GAAP to Non-GAAP - presented as a percentage of revenue
Reconciliation of GAAP to Non-GAAP - presented as a percentage of revenue 2019 2020 2021 2022 2023-YTD Gross margin 72% 74% 77% 76% 75% Add back: Stock-based compensation 1% 1% 1% 1% 1% Gross margin, non-GAAP 73% 75% 78% 77% 76% Research and development 30% 27% 26% 28% 29% Less: Stock-based compensa
Slide 26: Reconciliation of GAAP to Non-GAAP Guidance - (in Thousands)
Reconciliation of GAAP to Non-GAAP Guidance - (in Thousands) Q1 '23 Q2 '23 Q3 '23 Q4 '23 2023 Loss from Operations, GAAP* $(46,841) $(22,688) $(23,500) $(14,971) $(108,000) Add back: Stock-based compensation 38,042 20,610 21,500 19,948 100,100 Add back: Amortization of acquisition- 1,487 1,497 1,500