Slide 1: Workiva Inc. Q1 2023 Investor Presentation
Workiva Inc. Q1 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: Mission to 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: $25 Billion
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: The only unified FR + ESG + GRC 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 • AU, NZ, Singapore, HK, and Rule (proposed) (audit required) Government Regulators Japan have adopted limited • EFRAG (EU specific • T
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 Large Big Box Retailer 4 solutions in use including SEC, GRC, ACCOUNT Management Reporting Existing GRC & SEC Customer + ESG EXPANSION Assured Integrated Reporting ESG deal with Big Four firm with joint GTM & Delivery, Climate Accounting Tech Partner integration Fortune® 100 3 Solutions in
Slide 17: New Logo Deal / Platform Account Expansion
NEW LOGO European based Global Airline 1 solution Competitive DEAL Landed with the controls GRC win replacing a legacy GRC platform GRC management solution Joint sales pursuit with a regional partner who will be providing advisory and implementation services British Multinational Bank 5 Solutions in
Slide 18: Q1 2023 Highlights
Q1 2023 Highlights Total Revenue 16% $150M = 21% Q1 '23 Subscription revenue growth $130M = 16% Q1 '23 Total revenue $104M growth $86M $70M = 98% $60M Q1 '23 Gross dollar retention* = 109% Q1 '23 Net dollar retention with add-ons* Q1 '18 Q1 '19 Q1 '20 Q1 '21 Q1 '22 Q1 '23 *Retention calc excludes Pa
Slide 19: Accelerating Growth in New Customer Logos
Accelerating Growth in New Customer Logos 6,000 5,754 5,500 5,000 919 4,500 Customer Count 4,000 3,500 4,835 4,408 3,000 3,800 3,366 3,507 2,500 3,119 2,000 Q1 '18 Q1 '19 Q1 '20 Q1 '21 Q1 '22 Q1 '23 Workiva Customer Count Parseport Customer Count 17
Slide 20: Revenue Retention Remains Strong
Revenue Retention Remains Strong * Revenue retention w/add-ons 115.0% (Net revenue retention) Excl Cap Markets 110.0% 105.0% 100.0% Revenue retention rate (Gross revenue retention) 95.0% '16 '16 '16 '16 '17 '17 '17 '17 '18 '18 '18 '18 '19 '19 '19 '19 '20 '20 '20 '20 '21 '21 '21 '21 '22 '22 '22 '22 '
Slide 21: Growth in Large ACV Customers
Growth in Large ACV Customers > $100k ACV > $150k ACV > $300k ACV 746 1,363 247 1,124 603 186 884 457 131 Q1 '21 Q1 '22 Q1 '23 Q1 '21 Q1 '22 Q1 '23 Q1 '21 Q1 '22 Q1 '23 19
Slide 22: Solution Expansion by Revenue
Solution Expansion by Revenue % of Total Revenue* 70% 65% 63% 60% 60% 56% 55% 55% 50% 50% 50% 50% 45% 50% 45% 44% 40% 40% 37% 35% 30% Q1 '16 Q1 '17 Q1 '18 Q1 '19 Q1 '20 Q1 '21 Q1 '22 Q1 '23 Single Solution Customers Multi-Solution Customers *Excludes ParsePort 20
Slide 23: 2023 Guidance Summary
2023 Guidance Summary* Revenue Growth Rate Non-GAAP Operating Profit/Loss 20.0% $10M 15.0% $5M $5.8 10.0% $0M 15.8% 16.7% 16.9% 16.6% $(4.5) $(6.0) $(7.3) 5.0% $(5)M —% $(10)M Q1 '23 Actual Q2 '23 Q3 - Q4 '23 FY '23 Q1 '23 Actual Q2 '23 Q3-Q4 '23 FY '23 Guidance Guidance Guidance Guidance Guidance G
Slide 24: Operating Model
Operating Model 2027- Percentage of Revenue 2019-A 2020-A 2021-A 2022-A 2023 YTD Target Subscription & services revenue 83% 84% 86% 86% 86% ~92% Professional services revenue 17% 16% 14% 14% 14% ~8% Consolidated gross margin* 73% 75% 78% 77% 75% ~82% Research & development* 27% 25% 24% 25% 27% ~19%
Slide 25: Non-GAAP Reconciliation
Non-GaaP Reconciliation yy”
Slide 26: Reconciliation of GAAP to Non-GAAP - 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% 74% Add back: Stock-based compensation 1% 1% 1% 1% 1% Gross margin, non-GAAP 73% 75% 78% 77% 75% Research and development 30% 27% 26% 28% 31% Less: Stock-based compensa
Slide 27: Reconciliation of GAAP to Non-GAAP Guidance
Reconciliation of GAAP to Non-GAAP Guidance - (in Thousands) Q1 '23 Q2 '23 Q3 - Q4 '23 2023 Loss from Operations, GAAP* $(46,841) $(26,500) $(38,659) $(112,000) Add back: Stock-based compensation 38,042 20,500 41,658 100,200 Add back: Amortization of acquisition- 1,487 1,500 2,813 5,800 related inta