Strong subscription growth in the middle of careful market

Appearance date: May 1, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Subscription sales rose by 20% compared to the previous year, and total sales rose by 17% compared to the previous year and exceeded the upper instructions.

• The number of contracts worth over $ 100,000 increased by 23%and those over 300,000 US dollars and $ 500,000.

• The gross margin improved by 100 basis points compared to the previous year and rose to 79%.

• The company included a high gross retirement rate of 97%, which exceeds the internal target of 96%.

• Workiva Inc (NYSE: WK) will continue to determine a strong demand for its sustainability solutions that remain a top booking solution.

• There are signs of a more careful purchase environment, especially towards the end of Q1.

• The uncertainties of the regulatory changes and the new US administration policy have had pressure on the booking of the dynamics.

• The income from the professional services was flat compared to the first quarter of 2024 with a decline in furnishing and consulting services.

• The net retention rate was affected by the headwind of the exchange rate and the effects of the year of the year of the year of the year.

• The company has not increased its expectations of the entire year 2025 despite a strong quarter, which indicates potential caution in future quarters.

Q: Can you explain why Workiva, despite a cautious purchase environment, retained his income for the overall year? A: Jill Clint, CFO, said that Workiva had a strong quarter with a turnover of 20% with sales growth of 20% and expected to maintain this growth for the whole year. The company is confident in its long-term market chances and growth strategy, which is supported by a large, relatively untouched entire addressable market (tam).

Q: How was the demand for ESG and sustainability solutions influenced by the latest changes in the law? A: Julie Isko, CEO, found that sustainability remains a top booking solution for Workiva. The latest legislation of EU omnibus has brought clarity, and large companies that are the target market of work continues to report as required. Sustainability initiatives will not only take part in the global supply chain and improve business performance not only through regulation, but also by the desire of the companies.

Q: What does Workiva look at the opportunity in the Federal Financial Consolidation Order for CFO Actors? A: Julie Isko emphasized that Workiva is well positioned to benefit from the federal mandate that requires CFO laws to modernize its financial systems. This represents a multi -year opportunity that focuses on trust, transparency and accountability with the focus of work.