wk-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________

FORM 10-Q

___________________________________


(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For transition period from to
Commission File Number 001-36773

___________________________________

WORKIVA INC.

(Exact name of registrant as specified in its charter)

___________________________________


Delaware (State or other jurisdiction of incorporation or organization)									47-2509828 (I.R.S. Employer Identification Number)
2900 University Blvd Ames, IA 50010 (888) 275-3125
(Address of principal executive offices and zip code)
(888) 275-3125
(Registrant's telephone number, including area code)
___________________________________


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol	Name of each exchange on which registered
Class A common stock, par value $.001	WK	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ý			Accelerated filer o

Non-accelerated filer o			Smaller reporting company ☐

			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ý

As of April 25, 2025, there were approximately 51,888,191 shares of the registrant's Class A common stock and 3,845,583 shares of the registrant's Class B common stock outstanding.

WORKIVA INC.

TABLE OF CONTENTS


		Page
	Part I. Financial Information
Item 1.	Unaudited Consolidated Financial Statements:	1
	Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024	1
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2025 and 2024	3
	Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2025 and 2024	4
	Consolidated Statements of Changes in Stockholders' Deficit for the Three Months Ended March 31, 2025 and 2024	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024	6
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	32
Item 4.	Controls and Procedures	32

	Part II. Other Information
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 6.	Exhibits	34
	Signatures	S-1

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this Quarterly Report on Form 10-Q are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical facts, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024, in “Item 1A. Risk Factors” in Part II of this Quarterly Report on Form 10-Q and in any subsequent filing we make with the SEC, as well as in any documents incorporated by reference that describe risks and factors that could cause results to differ materially from those projected in these forward-looking statements.

Moreover, we operate in a very competitive and dynamic environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We are under no duty to update any of these forward-looking statements after completion of this Quarterly Report on Form 10-Q to conform these statements to actual results or revised expectations.

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Part I. Financial Information

Item 1. Financial Statements


WORKIVA INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
	As of March 31, 2025		As of December 31, 2024
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	242,024	$	301,835
Marketable securities	525,000		514,585
Accounts receivable, net of allowance for doubtful accounts of $1,244 and $1,220 at March 31, 2025 and December 31, 2024, respectively	118,620		148,433
Deferred costs	51,184		50,914
Other receivables	9,308		10,276
Prepaid expenses and other	28,161		22,199
Total current assets	974,297		1,048,242

Property and equipment, net	21,485		21,825
Operating lease right-of-use assets	12,341		11,786
Deferred costs, non-current	51,456		54,858
Goodwill	199,724		196,844
Intangible assets, net	26,031		27,389
Other assets	8,300		7,525
Total assets	$	1,293,634	$	1,368,469

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WORKIVA INC. CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(in thousands, except share and per share amounts)

	As of March 31, 2025		As of December 31, 2024
	(unaudited)
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable	$	14,761	$	7,747
Accrued expenses and other current liabilities	93,495		126,508
Deferred revenue	438,513		457,608

Finance lease obligations	570		562
Total current liabilities	547,339		592,425

Convertible senior notes, non-current	765,501		764,891
Deferred revenue, non-current	33,104		29,681
Other long-term liabilities	238		227
Operating lease liabilities, non-current	9,845		9,441
Finance lease obligations, non-current	13,342		13,488
Total liabilities	1,369,369		1,410,153

Stockholders’ deficit
Class A common stock, $0.001 par value per share, 1,000,000,000 shares authorized, 51,907,573 and 51,646,053 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively	52		52
Class B common stock, $0.001 par value per share, 500,000,000 shares authorized, 3,845,583 and 3,845,583 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively	4		4
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding	—		—
Additional paid-in-capital	655,377		672,363
Accumulated deficit	(729,054)		(707,683)
Accumulated other comprehensive loss	(2,114)		(6,420)
Total stockholders’ deficit	(75,735)		(41,684)
Total liabilities and stockholders’ deficit	$	1,293,634	$	1,368,469

See accompanying notes.

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WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)
	Three months ended March 31,
	2025		2024
Revenue
Subscription and support	$	185,512	$	154,979
Professional services	20,768		20,688
Total revenue	206,280		175,667
Cost of revenue
Subscription and support	34,062		27,927
Professional services	14,280		13,596
Total cost of revenue	48,342		41,523
Gross profit	157,938		134,144
Operating expenses
Research and development	53,780		45,495
Sales and marketing	101,671		82,633
General and administrative	27,237		24,299
Total operating expenses	182,688		152,427
Loss from operations	(24,750)		(18,283)
Interest income	8,747		10,455
Interest expense	(3,195)		(3,232)
Other (expense) income, net	(233)		86
Loss before provision for income taxes	(19,431)		(10,974)
Provision for income taxes	1,940		713
Net loss	$	(21,371)	$	(11,687)
Net loss per common share:
Basic and diluted	$	(0.38)	$	(0.21)
Weighted-average common shares outstanding - basic and diluted	56,157,533		54,915,852

See accompanying notes.

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WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands) (unaudited)
	Three months ended March 31,
	2025		2024
Net loss	$	(21,371)	$	(11,687)
Other comprehensive income (loss)
Foreign currency translation adjustment	3,937		(2,483)
Unrealized gain (loss) on available-for-sale securities	369		(1,407)
Other comprehensive income (loss)	4,306		(3,890)
Comprehensive loss	$	(17,065)	$	(15,577)

See accompanying notes.

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WORKIVA INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
(in thousands) (unaudited)

Three Months Ended March 31, 2025
	Common Stock (Class A and B)
	Shares	Amount		Additional Paid-in-Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Deficit
Balances at December 31, 2024	55,492	$	56	$	672,363	$	(6,420)	$	(707,683)	$	(41,684)
Stock-based compensation expense	—	—		27,888		—		—		27,888
Issuance of common stock upon exercise of stock options	44	—		631		—		—		631
Issuance of common stock under employee stock purchase plan	119	—		7,535		—		—		7,535
Issuance of restricted stock units	698	—		—		—		—		—
Tax withholding related to net share settlements of stock-based compensation awards	(138)	—		(12,922)		—		—		(12,922)
Repurchases of Class A common stock	(462)	—		(40,118)		—		—		(40,118)
Net loss	—	—		—		—		(21,371)		(21,371)
Other comprehensive income	—	—		—		4,306		—		4,306
Balances at March 31, 2025	55,753	$	56	$	655,377	$	(2,114)	$	(729,054)	$	(75,735)

















Three Months Ended March 31, 2024
	Common Stock (Class A and B)
	Shares	Amount		Additional Paid-in-Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders' Deficit
Balances at December 31, 2023	54,179	$	54	$	562,942	$	255	$	(652,641)	$	(89,390)
Stock-based compensation expense	—	—		23,007		—		—		23,007
Issuance of common stock upon exercise of stock options	19	1		301		—		—		302
Issuance of common stock under employee stock purchase plan	88	—		7,113		—		—		7,113
Issuance of restricted stock units	590	—		—		—		—		—
Tax withholding related to net share settlements of stock-based compensation awards	(91)	—		(8,611)		—		—		(8,611)
Net loss	—	—		—		—		(11,687)		(11,687)
Other comprehensive loss	—	—		—		(3,890)		—		(3,890)
Balances at March 31, 2024	54,785	$	55	$	584,752	$	(3,635)	$	(664,328)	$	(83,156)

See accompanying notes.

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WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
	Three months ended March 31,
	2025		2024
Cash flows from operating activities
Net loss	$	(21,371)	$	(11,687)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
Depreciation and amortization	2,893		2,522
Stock-based compensation expense	27,888		23,007
Provision for (recovery of) doubtful accounts	12		(123)
Accretion of premiums and discounts on marketable securities, net	(1,695)		(3,749)
Amortization of debt discount and issuance costs	610		608



Deferred income tax	(64)		(295)
Changes in assets and liabilities:
Accounts receivable	30,636		36,947
Deferred costs	4,093		1,405
Operating lease right-of-use assets	1,329		1,426
Other receivables	994		194
Prepaid expenses and other	(5,653)		(2,273)
Other assets	(648)		(1,090)
Accounts payable	6,651		4,726
Deferred revenue	(18,438)		(17,526)
Operating lease liabilities	(831)		(987)
Accrued expenses and other liabilities	(33,764)		(8,261)
Net cash (used in) provided by operating activities	(7,358)		24,844

Cash flows from investing activities
Purchase of property and equipment	(763)		(203)
Purchase of marketable securities	(102,965)		(116,567)
Maturities of marketable securities	94,614		129,640
Sale of marketable securities	—		4,609

Purchase of intangible assets	(19)		(31)

Net cash (used in) provided by investing activities	(9,133)		17,448

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WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in thousands) (unaudited)
	Three months ended March 31,
	2025		2024

Cash flows from financing activities
Proceeds from option exercises	631		302
Taxes paid related to net share settlements of stock-based compensation awards	(12,922)		(8,611)
Proceeds from shares issued in connection with employee stock purchase plan	7,535		7,113
Repurchases of Class A common stock	(40,118)		—


Principal payments on finance lease obligations	(138)		(129)
Net cash used in financing activities	(45,012)		(1,325)
Effect of foreign exchange rates on cash	1,889		(1,107)

Net (decrease) increase in cash, cash equivalents, and restricted cash	(59,614)		39,860
Cash, cash equivalents, and restricted cash at beginning of period	302,350		256,721
Cash, cash equivalents, and restricted cash at end of period	$	242,736	$	296,581

Supplemental cash flow disclosure
Cash paid for interest	$	4,979	$	4,906
Cash paid for income taxes, net of refunds	$	3,029	$	952

Noncash investing and financing activities

Purchases of property and equipment, accrued but not paid	$	442	$	—

Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents at end of period	$	242,024	$	296,066
Restricted cash included within prepaid expenses and other at end of period	712		515
Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows	$	242,736	$	296,581

See accompanying notes.

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WORKIVA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies

Organization

Workiva Inc., a Delaware corporation, and its wholly-owned subsidiaries (the “Company” or “we” or “us”) build and deliver the platform that powers transparency, accountability, and trust. Finance, accounting, sustainability, risk and audit teams worldwide rely on Workiva for their mission-critical work. We transform how customers connect data, unify processes, and empower teams in a secure, audit-ready, AI-powered collaborative platform. Our operational headquarters are located in Ames, Iowa. We also lease office facilities or contract with flexible workspace providers throughout the U.S. and internationally.

Basis of Presentation and Principles of Consolidation

The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet data as of December 31, 2024 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three months ended March 31, 2025 are not necessarily indicative of the results expected for the full year ending December 31, 2025.

Seasonality affects our revenue, expenses and cash flows from operations. Revenue from professional services is generally higher in the first quarter of our calendar year as many of our customers file their Form 10-K in the first calendar quarter. Our sales and marketing expense also has some degree of seasonality. Sales and marketing expenses have historically been higher in the third quarter due to our annual user conference in September. In addition, the timing of cash bonus payments to employees during the first and fourth calendar quarters may result in some seasonality in operating cash flow. The condensed consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on February 25, 2025.

The unaudited condensed consolidated financial statements include the accounts of Workiva Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

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Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, goodwill, income taxes, discount rates used in the valuation of right-of-use assets and lease liabilities, and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The standard is effective for annual periods beginning after December 15, 2023, with early adoption permitted. We adopted this standard for the annual period beginning on January 1, 2024. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures.

New Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently assessing the effect of this update on our related disclosures and plan to adopt this update as effective during the annual period ending December 31, 2025.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive and Income - Expense Disaggregation Disclosures (Subtopic 220-40), requiring public business entities (PBEs) to provide disaggregated disclosures of relevant income statement expenses. The amendments aim to improve financial reporting by enhancing transparency in the notes to financial statements, specifically regarding expense categories. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. We are assessing the effect of this update on our consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-04, Induced Conversions of Convertible Debt Instruments, which amends the guidance in ASC 470-20 for induced conversions of convertible debt instruments. The update clarifies the accounting treatment for debt conversion wherein inducement offers are made, regardless of whether the settlement is in equity, cash, or a combination of both. Previously, induced conversions were limited to equity settlements. The amendments in this update are effective for annual reporting periods beginning after December 15, 2025. We are assessing the effect of this update on our consolidated financial statements and related disclosures.

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2. Supplemental Consolidated Balance Sheet Information

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


			As of March 31, 2025<

SEC Form 10-Q filed by Workiva Inc.