Slide 1: Workiva Inc. Q3 2023 Investor Presentation
Workiva Inc. Q3 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: 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, Untapped Global TAM
Large, Untapped Global TAM $25 Billion $11.6 B $7.5 B $5.9 B A&F GRC ESG Industry 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 5,900 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 5,900 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 • July 31st, EU approved Government Regulators Japan have adopted limited October 2023
Slide 14: Chosen by the best ESG & Sustainability teams
Chosen by the best ESG & Sustainability teams More than 5,900 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
Fortune® 500 Energy PLATFORM company 11 year long loyal SEC customer ACCOUNT EXPANSION Existing SEC + Management Reporting + ESG customer Assured Integrated Reporting Purchased 3 GRC solutions - Audit + Internal Controls + Risk Management North American based Airline PLATFORM 5 solution expansion -
Slide 17: Q3 2023 Highlights
Q3 2023 Highlights Subscription Revenue = 21% Q3 '23 Subscription 21% Revenue Growth $143M = 98% $119M Q3 '23 Gross $99M dollar retention $76M = 112% Q3 '23 Net dollar $63M $51M retention with add-ons Q3 '18 Q3 '19 Q3 '20 Q3 '21 Q3 '22 Q3 '23 15
Slide 18: Accelerating Growth in New Customer Logos
Accelerating Growth in New Customer Logos 6,000 7% 5,945 5,500 5,541 5,000 4,500 Customer Count 4,000 4,146 3,500 3,583 3,454 3,289 3,000 2,500 2,000 Q3 '18 Q3 '19 Q3 '20 Q3 '21 Q3 '22 Q3 '23 Total Customer Count 16
Slide 19: Revenue Retention Remains Strong
Revenue Retention Remains Strong 115% 110% 105% 100% 95% '18 '18 '18 '18 '19 '19 '19 '19 '2 0 ' 20 ' 20 ' 20 '2 1 '2 1 '2 1 '2 1 '2 2 ' 22 '2 2 ' 22 '2 3 ' 23 '2 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Gross Retention Rate Net Retention Rate 17
Slide 20: Growth in Large ACV Customers
Growth in Large ACV Customers > $100k ACV > $150k ACV > $300k ACV 24% 1,561 26% 851 38% 296 1,257 676 1,043 214 541 103 Q3 '21 Q3 '22 Q3 2023 Q3 '21 Q3 '22 Q3 '23 Q3 '20 Q3 '22 Q3 '23 18
Slide 21: Subscription Revenue by Customer Type
Subscription Revenue by Customer Type 65% 64% 61% 59% 60% 58% 58% 57% 55% 54% 52% 50% 48% 46% 45% 43% 42% 42% 41% 40% 39% 36% 35% Q3 '16 Q3 '17 Q3 '18 Q3 '19 Q3 '20 Q3 '21 Q3 '22 Q3 '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 25.0% $10M 20.0% $5M $5.3 $6.1 15.0% $3.5 $0M $(0.6) 10.0% 19.1% 17.8% 16.7% 15.8% $(7.3) 14.1% $(5)M 5.0% —% $(10)M Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23 Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY '23 Actual Actual Actual Guidance Gui
Slide 23: Operating Model
Operating Model 2027- Percentage of Revenue 2019-A 2020-A 2021-A 2022-A 2023 YTD Target Subscription revenue 83% 84% 86% 86% 88% ~92% Professional services revenue 17% 16% 14% 14% 12% ~8% Consolidated gross margin* 73% 75% 78% 77% 76% ~82% Research & development* 28% 25% 24% 25% 25% ~19% Sales & mar
Slide 24: Non-GAAP Reconciliation
Non-GaaP Reconciliation yy”
Slide 25: 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% 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% 28% Less: Stock-based compensa
Slide 26: Reconciliation of GAAP to Non-GAAP Guidance
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) $(15,525) $(16,446) $(101,500) Add back: Stock-based compensation 38,042 20,610 19,377 21,071 99,100 Add back: Amortization of acquisition- 1,487 1,497 1,489