WK Earnings Prediction
The chart below shows how WK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WK sees a +3.47% change in stock price 10 days leading up to the earnings, and a -1.10% change 10 days following the report. On the earnings day itself, the stock moves by -2.54%. This data can give you a slight idea of what to expect for the next quarter's release.
WK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
185.62M
17.35%
4.57%
Gross Margin
76.47%
0.95%
-0.43%
Operating Margin
-11.73%
19.45%
-10.05%
Net Margin
-9.15%
-74.28%
-7.48%
EPS
-0.31
-70.19%
-3.13%
No Data Available
WK Earnings Analysis
Workiva Inc. Corporation (WK.N) Earnings Conference Call
Positive
Subscription Revenue Surge: 1. Strong Subscription Revenue Growth: Subscription revenue grew by 19% year-over-year, reaching $171 million in Q3 2024, contributing significantly to the overall revenue increase.
Revenue Surge Q3 2024: 2. Total Revenue Increase: Total revenue for Q3 2024 was $185.6 million, reflecting a 17% growth compared to Q3 2023, exceeding the high end of revenue guidance by $2.6 million.
Operating Margin Improvement: 3. Improved Operating Margins: The company achieved a 70 basis point improvement in operating margin, resulting in an operating profit of $7.6 million for Q3 2024, compared to $5.3 million in Q3 2023.
Customer Acquisition Success: 4. Customer Growth: Workiva added 292 new customers in the last year, bringing the total customer count to 6,237, with a gross revenue retention rate of 97.5%.
Rising Contract Values: 5. Increased Contract Values: The number of contracts valued over $500,000 increased by 28% year-over-year, indicating strong demand for Workiva's solutions among larger clients.
Negative
Professional Services Revenue Decline: 1. Decline in Professional Services Revenue: Professional services revenue decreased to $14.6 million, down slightly from Q3 2023, indicating challenges in transitioning setup and consulting services to partners.
Services Revenue Decline: 2. Decrease in Services Revenue Guidance: For Q4 2024, services revenue is expected to decline slightly compared to Q4 2023, reflecting ongoing challenges in the setup and consulting services segment.
Cautious Capital Markets Outlook: 3. Limited Growth in Capital Markets: The company has not built any return to capital markets into their models, indicating a cautious outlook for growth in this area.
Hiring Quota Challenges: 4. Ongoing Hiring Challenges: The company is still in the process of hiring quota-bearing representatives, suggesting that they may not be fully staffed to meet the upcoming demand driven by regulatory changes.
Regulatory Uncertainty Impact: 5. Uncertain Impact of SEC Regulations: The company remains cautious about the potential changes in SEC regulations under the new administration, which could affect their growth strategy and market opportunities.
WK FAQs
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WK Earning Call Sentiment
Workiva Inc. (WK) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WK.N
-2.58%Positive
The earnings call summary and Q&A session indicate strong financial performance with revenue and subscription growth, improved margins, and positive guidance. The launch of Workiva Carbon and the share repurchase program further boost sentiment. Despite competitive pressures and some uncertainties, the overall tone is optimistic. The market cap of approximately $4 billion suggests a moderate reaction, leading to a predicted positive stock price movement of 2% to 8% over the next two weeks.
