Workiva (WK) AI Stock Analysis

• Market Cap: $3.70B
• Dividend Yield: N/A
• Average Volume (3M): 854.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: 17.24%
• EPS Growth: 57.87%
• Country: US
• Employees: 2,828
• Sector: Technology
• Sector Strength: 49
• Industry: Software - Application
• EPS (TTM): -0.99
• Shares Outstanding: 51,907,420
• 10 Day Avg. Volume: 1,262,815
• 30 Day Avg. Volume: 854,708
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.63
• Price to Cash Flow (P/CF): 27.80
• P/FCF Ratio: 22.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $112.00
• Price Target Upside: 68.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Workiva's strong financial performance, highlighted by impressive revenue growth and cash flow, is moderated by ongoing net losses and financial stability concerns. The stock's bearish technical indicators and challenging valuation further weigh on the score. While the earnings call showcases promising growth and strategic positioning, external uncertainties present risks.

Positive Factors

Market Position

Strength is most apparent in the high-end of Workiva's market with growth in high-value contracts improving and overall net retention ticking higher to 112%, the best in six quarters.

Product Strategy

The platform sales strategy appears to be resonating with multi-product sales driving 70% of revenue.

Revenue Growth

Workiva finished the year on a generally solid note with the biggest revenue beat in two years and a strong guide for 20% subscription revenue growth during FY25.

Negative Factors

Profitability Concerns

FY25 profitability guidance came in light of expectations, particularly in Q1, but FY27 margin targets remain intact.

Regulatory Risks

Bears will argue WK faces headline risk from ESG regulation updates and estimate risk given limited visibility into deal cycles.

Regulatory Uncertainty

Concern about the fate of sustainability reporting mandates, particularly in Europe, threatens to potentially overshadow the company's reacceleration.

Workiva Business Overview & Revenue Model

Company Description

Workiva Inc. (WK) is a leading provider of cloud-based solutions that simplify complex business reporting processes. Operating primarily in the technology sector, Workiva offers its flagship platform, the Workiva platform, which is designed to help organizations streamline data collection, management, and reporting across various regulatory and compliance requirements. The platform is utilized by enterprises, government agencies, and educational institutions to improve accuracy, efficiency, and transparency in financial, regulatory, and performance reporting.

How the Company Makes Money

Workiva makes money through a subscription-based revenue model, where customers pay recurring fees to access its cloud-based platform and services. The company's key revenue streams include software subscriptions, professional services, and customer support. Workiva’s platform is used by organizations for SEC filings, SOX compliance, and other regulatory reporting, which drives demand for its solutions. Additionally, Workiva partners with consulting firms, advisory companies, and technology vendors to expand its reach and enhance its services, further contributing to its revenue. The company's growth is supported by its ability to upsell additional features and services to existing customers, as well as by acquiring new clients across various industries.

Workiva Financial Statement Overview

Summary

Workiva shows robust revenue growth and strong cash flow management, indicating a positive operational outlook. However, net losses and negative equity raise concerns about financial stability and profitability, necessitating strategic cost management.

Income Statement

Workiva has demonstrated solid revenue growth, increasing from $297.9M in 2019 to $738.7M in 2024, indicating strong demand for its software solutions. However, the company remains unprofitable at the net income level, with a net loss of $55M in 2024, despite improving gross profit margins from 71.5% in 2019 to 76.7% in 2024. EBIT and EBITDA margins remain negative, reflecting ongoing operational challenges and the need for cost control.

Balance Sheet

Workiva's balance sheet shows a negative stockholders' equity of $41.7M in 2024, raising concerns about financial stability. The debt-to-equity ratio is not applicable due to negative equity, but the company's total debt increased significantly over the years. The equity ratio turned negative, reflecting potential solvency issues. Despite this, the company's cash position is strong with $816.4M in cash and equivalents, providing liquidity.

Cash Flow

Workiva has shown a strong improvement in free cash flow, growing from $26.7M in 2019 to $86.3M in 2024, reflecting better cash management. The operating cash flow to net income ratio is positive, indicating that the company generates cash from operations despite net losses. The free cash flow to net income ratio is also favorable, highlighting effective capital expenditure management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
738.68M	630.04M	537.88M	443.29M	351.59M
	Gross Profit
566.63M	475.82M	407.99M	339.45M	261.42M
	EBIT
-76.53M	-94.53M	-88.76M	-29.36M	-37.80M
	EBITDA
-25.57M	-59.32M	-72.75M	-19.84M	-30.43M
	Net Income Common Stockholders
-55.04M	-127.53M	-90.95M	-37.73M	-48.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
816.42M	813.72M	430.79M	530.45M	530.04M
	Total Assets
1.37B	1.22B	819.62M	786.76M	707.01M
	Total Debt
788.38M	793.18M	367.45M	331.73M	325.07M
	Net Debt
486.55M	537.08M	127.25M	31.34M	2.23M
	Total Liabilities
1.41B	1.31B	813.64M	713.78M	642.73M
	Stockholders Equity
-41.68M	-89.39M	5.98M	72.98M	64.28M
Cash Flow		Free Cash Flow
86.34M	68.52M	7.72M	46.09M	31.07M
	Operating Cash Flow
87.71M	70.88M	11.33M	49.84M	33.24M
	Investing Cash Flow
-45.25M	-357.25M	-68.01M	-68.63M	-103.75M
	Financing Cash Flow
6.74M	301.26M	-1.59M	-3.39M	11.12M

Workiva Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 66.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WK, the sentiment is Negative. The current price of 66.41 is below the 20-day moving average (MA) of 77.75, below the 50-day MA of 85.22, and below the 200-day MA of 86.06, indicating a bearish trend. The MACD of -3.28 indicates Positive momentum. The RSI at 26.97 is Positive, neither overbought nor oversold. The STOCH value of 9.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WK.

Workiva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOX	72 Outperform	$4.34B	22.49	189.40%	―	5.05%	103.11%
PYCR	68 Neutral	$4.09B	―	-1.66%	―	15.72%	74.59%
BILL	65 Neutral	$4.24B	443.76	2.11%	―	16.42%	―
FRSH	63 Neutral	$3.78B	―	-8.63%	―	20.79%	32.50%
INTA	61 Neutral	$4.15B	―	-5.29%	―	18.58%	63.63%
WK	60 Neutral	$3.70B	―	99.24%	―	17.24%	57.87%
Sector *	57 Neutral	$19.95B	9.66	-12.09%	2.76%	5.40%	-24.89%

Workiva Corporate Events

Workiva Announces Changes in Board of Directors

On April 2, 2025, Brigid Bonner, a member of Workiva Inc.’s Nominating and Governance Committee and Chair of the Compensation Committee, announced she will not seek re-election as a Class II director at the company’s 2025 annual meeting. Her decision was not due to any disagreements with the company’s operations or management. The Board has approved a slate of nominees for the meeting, including a new nominee, Ms. Astha Malik, Chief Business Officer of Braze, Inc., who is expected to bring valuable skills and experience to the Board.