Financial News

Workiva (WK) Reports Q3: Everything You Need To Know Ahead Of Earnings

WK Cover Image

Financial and compliance reporting software company Workiva (NYSE:WK) will be reporting results tomorrow afternoon. Here’s what to look for.

Workiva beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $177.5 million, up 14.5% year on year. It was a strong quarter for the company, with accelerating customer growth and an impressive beat of analysts’ EBITDA estimates. It added 72 enterprise customers paying more than $100,000 annually to reach a total of 1,768.

Is Workiva a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Workiva’s revenue to grow 15.4% year on year to $182.6 million, slowing from the 19.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.

Workiva Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Workiva has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.3% on average.

Looking at Workiva’s peers in the finance and HR software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Marqeta delivered year-on-year revenue growth of 17.5%, meeting analysts’ expectations, and Paylocity reported revenues up 14.3%, topping estimates by 1.9%. Paylocity’s stock price was unchanged following the results.

Read our full analysis of Marqeta’s results here and Paylocity’s results here.

There has been positive sentiment among investors in the finance and HR software segment, with share prices up 5.8% on average over the last month. Workiva is up 5% during the same time and is heading into earnings with an average analyst price target of $98.88 (compared to the current share price of $81.05).

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