Workiva Inc (WK)

Workiva Inc.: A Comprehensive Overview

Company Profile:

History and Background:

Workiva Inc. (NYSE: WK), formerly Wdesk, Inc., was founded in 2008 by Matt Rizai with a vision to simplify and modernize the way companies report and manage data. Headquartered in Ames, Iowa, Workiva has quickly grown to serve over 7,200 clients across various industries, including Fortune 500 companies, large enterprises, and government agencies.

Core Business Areas:

Workiva primarily focuses on providing cloud-based solutions for:

• Reporting: Workiva's flagship product, Wdesk, is a cloud platform that helps organizations automate and streamline the reporting process. This includes financial reporting, regulatory reporting, internal audits, and ESG reporting.
• Data Management: Workiva also offers a range of data management tools, including Data Connectors for seamless integration with various data sources and Workiva Data for secure and efficient data storage and collaboration.
• Compliance: Additionally, Workiva provides solutions for compliance management, including Internal Controls, a tool for assessing and mitigating internal control risks, and Workiva Connect, a platform for managing external audits.

Leadership and Corporate Structure:

• Matt Rizai: Founder and CEO of Workiva, with over 20 years of experience in technology and finance.
• Andrew Dickinson: Chief Technology Officer, leading the development and innovation of Workiva's cloud platform.
• Marty Vanderploeg: Chief Financial Officer, overseeing the company's financial strategy and operations.
• Rick Osterlind: General Counsel and Corporate Secretary, responsible for legal and compliance matters.

Top Products and Market Share:

Top Products:

• Wdesk: The core reporting platform used by over 7,200 clients globally.
• Data Connectors: A growing suite of connectors for seamless integration with various data sources.
• Internal Controls: A tool for assessing and mitigating internal control risks.
• Workiva Connect: A platform for managing external audits.

Market Share:

• While Workiva's exact market share is difficult to determine, it is estimated to hold a significant portion of the market for cloud-based reporting and compliance solutions. Some sources estimate that Workiva holds around 20-30% of the market share for SEC reporting solutions.
• The company faces competition from established players like SAP, Oracle, and IBM, as well as emerging players like Trintech and BlackLine.

Total Addressable Market:

• The global market for enterprise performance management (EPM) software, which includes reporting and compliance solutions, is estimated to be worth around $20 billion. This market is expected to grow at a CAGR of around 9% over the next five years.
• This indicates a large potential market for Workiva to expand its reach and further solidify its position as a leader in the cloud-based reporting and compliance space.

Financial Performance:

Recent Financial Performance:

• Workiva's revenue has been growing steadily in recent years. In 2022, the company reported revenue of $460.9 million, an increase of 20% year-over-year.
• The company's net income in 2022 was $18.1 million, compared to $36.3 million in 2021. The decrease in net income was primarily due to increased investments in sales and marketing.
• Workiva's gross profit margin in 2022 was 86%, and its operating margin was 9%.
• The company's EPS in 2022 was $0.41.

Year-over-Year Comparison:

• Revenue growth: 20%
• Net income growth: -50%
• Gross profit margin: 86% (flat year-over-year)
• Operating margin: 9% (compared to 10% in 2021)
• EPS growth: -54%

Cash Flow and Balance Sheet Health:

• Workiva has a strong cash flow position. In 2022, the company generated $66.1 million in operating cash flow.
• The company also has a healthy balance sheet, with $240.1 million in cash and equivalents and $207.8 million in total debt.

Dividends and Shareholder Returns:

Dividend History:

• Workiva does not currently pay a dividend.

Shareholder Returns:

• Workiva's stock has performed well over the past few years. Since its IPO in 2014, the stock has returned over 500%.
• However, the stock has been volatile in recent months, declining from its 52-week high of $155.13 in September 2022 to its current level of around $95.