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Matt Rizai, Chairman & CEOWorkiva [NYSE:WK] addresses these concerns with its cloud-based platform, Wdesk, which helps insurance firms mitigate enterprise risk. “With Wdesk, collecting data and preparing risk and compliance reports can be streamlined and automated,” says Matt Rizai, Chairman and CEO, Workiva.
Wdesk is a proprietary data management engine hosted on the cloud, which comes with the full package of productivity applications— word processor, spreadsheet, and presentation decks. Wdesk gives users the ability to link data in text or numbers so that any change, anywhere is automatically updated throughout all instances of that data. With features like audit trail and permissions, Wdesk users can collaborate with control in real time, in data-linked documents.
“Wdesk enables users to see document progress, assign tasks, and maintain communication with directed comments,” explains Rizai. This ensures transparency for effective risk management through a single working environment.
Moreover, Workiva understands the need for security when managing and reporting risk data. “Many large corporations entrust us with their most sensitive data, and we take that responsibility very seriously,” says Rizai.
Many large corporations entrust us with their most sensitive data and we take that responsibility very seriously
For uninterrupted workflows, Workiva provides continuous process optimization support through linked KRI (Key Risk Indicator) and KPI (Key Performance Indicator) dashboards that allow management teams and boards to clearly see if risk levels are within acceptable tolerances.
Wdesk helps organizations to alleviate enterprise risk, improve productivity and give users confidence to make decisions with real-time data. Extolling the manifold proficiency of Workiva’s client base, Rizai notes that Wdesk is currently being used by more than 65 percent of Fortune 500 companies for a wide variety of risk management and compliance processes. On one instance, a major airline carrier was using multiple office productivity products and a service provider to aggregate and create financial reports, which proved to be cumbersome. They approached Workiva to make their business operations more efficient by mitigating risks. By implementing Wdesk, the airliner experienced a 187 percent return of investment, which over the course of three years, cumulated to more than $400,000 in cost savings.
Staying relevant to enterprise risk management ecosystems, Workiva’s focus is on helping their customers become more productive and efficient. “We are at the forefront of providing compliance and risk management software to help insurers control risks,” says Rizai.
"The Workiva team delivered a solid quarter and continued to execute at a high level, resulting in subscription revenue growth of 21%," said Julie Iskow, President & Chief Executive Officer. "Accelerating subscription growth drove revenue above the high end of our first quarter guidance and contributed to our beat at the high end of our operating results guidance by $3.7 million."
"Our focus on multi-solution deals and account expansions led to the increase in the number of larger subscription contracts. In the first quarter, contracts valued at over $100K, $150K, and $300K per year were up 21%, 24%, and 33%, respectively from the first quarter of 2022," said Jill Klindt, Chief Financial Officer. "Additionally, our subscription and support revenue retention rate remained best-in-class at 98% for the first quarter of 2023."
"We continued to see healthy market demand for our platform and best-of-breed solutions, even in an uncertain macro environment," said Iskow. "We believe this is a result of the rapidly evolving market trend of increased stakeholder scrutiny of both financial data and non-financial data, which has made our product offerings more relevant than ever."
First Quarter 2023 Financial Highlights
• Revenue: Total revenue for the first quarter of 2023 reached $150.2 million, an increase of 16% from $129.7 million in the first quarter of 2022. Subscription and support revenue contributed $129.7 million, up 21% versus the first quarter of 2022. Professional services revenue was $20.5 million, a decrease of 9% compared to the same quarter in the prior year.
• Gross Profit: GAAP gross profit for the first quarter of 2023 was $111.7 million compared with $98.8 million in the same quarter of 2022. GAAP gross margin was 74.3% versus 76.2% in the first quarter of 2022. Non-GAAP gross profit for the first quarter of 2023 was $113.4 million, an increase of 13.3% compared with the prior year's first quarter, and non-GAAP gross margin was 75.5% compared to 77.1% in the first quarter of 2022.
• Loss from Operations: GAAP loss from operations for the first quarter of 2023 was $46.8 million compared with a loss of $17.2 million in the prior year's first quarter. Non-GAAP loss from operations was $7.3 million compared with a loss of $1.2 million in the first quarter of 2022.
• GAAP Net Loss: GAAP net loss for the first quarter of 2023 was $46.2 million compared with a net loss of $18.5 million for the prior year's first quarter. GAAP net loss per basic and diluted share was $0.86 compared with a net loss per basic and diluted share of $0.35 in the first quarter of 2022.
• Non-GAAP Net Loss: Non-GAAP net loss for the first quarter of 2023 was $6.6 million compared with a loss of $2.5 million in the prior year's first quarter. Non-GAAP net loss per basic and diluted share was $0.12 compared with a net loss per basic and diluted share of $0.05 in the first quarter of 2022.
• Liquidity: As of March 31, 2023, Workiva had cash, cash equivalents, and marketable securities totaling $439.8 million, compared with $430.8 million as of December 31, 2022. Workiva had $345.0 million aggregate principal amount of 1.125% convertible senior notes due in 2026 and $15.0 million of finance lease obligations outstanding as of March 31, 2023.