Workiva Announces Fourth Quarter and Full Year 2017 Financial Results





FOR IMMEDIATE RELEASE

Workiva Announces Fourth Quarter and Full Year 2017 Financial Results
Q4 Total Revenue of $54.5 million, Up 17.5% from Q4 2016
Q4 Subscription and Support Revenue of $45.5 million, Up 18.8% from Q4 2016
Full Year 2017 Total Revenue of $207.9 million, Up 16.4% from 2016
AMES, Iowa - February 22, 2018 -- Workiva Inc. (NYSE: WK), a leading provider of solutions for enterprise productivity, today announced financial results for its fourth quarter ended December 31, 2017.
“We posted strong results for the fourth quarter and full-year 2017,” said Matt Rizai, Chairman and Chief Executive Officer of Workiva. “We are pleased to have surpassed the milestone of $200 million in annual revenue with more than 3,000 customers in 2017.”
“We continue to add new Wdesk users across public and private companies, state and local governments and universities,” said Rizai. “Over the past few quarters, we have accelerated investments in our platform and talent, and we have continued to build our ecosystem. The critical pieces of our enterprise plan are now in place to meet our growing customer demand for a broader-based, enterprise-wide Wdesk platform.”
“We are making solid progress toward selling larger-sized deals as shown by the data we are releasing today on the growing number of customers with larger annual contract values. We are encouraged by this trend and also by our pipeline of larger contracts,” said Rizai.
Fourth Quarter 2017 Financial Highlights
Revenue: Total revenue for the fourth quarter of 2017 reached $54.5 million, an increase of 17.5% from $46.4 million in the fourth quarter of 2016. Subscription and support revenue contributed $45.5 million, up 18.8% versus the fourth quarter of 2016. Professional services revenue was $9.0 million, an increase of 11.3% compared to the same quarter in the prior year.
Gross Profit: GAAP gross profit for the fourth quarter of 2017 was $38.4 million compared with $33.2 million in the same quarter of 2016. GAAP gross margin was 70.5% versus 71.5% in the fourth quarter of 2016. Non-GAAP gross profit for the fourth quarter of 2017 was $38.8 million, an increase of 16.1% compared with the prior year's fourth quarter, and non-GAAP gross margin was 71.1% compared to 72.0% in the fourth quarter of 2016.
Loss from Operations: GAAP loss from operations for the fourth quarter of 2017 was $14.7 million compared with a loss of $7.4 million in the prior year's fourth quarter. Non-GAAP loss from operations was $8.4 million, compared with non-GAAP loss from operations of $3.7 million in the fourth quarter of 2016.
Net Loss: GAAP net loss for the fourth quarter of 2017 was $14.3 million compared with a net loss of $7.5 million for the prior year's fourth quarter. GAAP net loss per basic and diluted share was $0.34, based on 42.1 million weighted-average shares outstanding, compared with a net loss per basic and diluted share of $0.18, based on 40.9 million weighted-average shares outstanding in the fourth quarter of 2016.
Non-GAAP net loss for the fourth quarter of 2017 was $8.0 million compared with a net loss of $3.8 million in the prior year's fourth quarter. Non-GAAP net loss per basic and diluted share was $0.19, based on 42.1 million weighted-average shares outstanding, compared with a net loss per basic and diluted share of $0.09, based on 40.9 million weighted-average shares outstanding in the fourth quarter of 2016.




Key Metrics and Recent Business Highlights
Customers: Workiva had 3,063 customers as of December 31, 2017, a net increase of 291 customers from December 31, 2016.
Revenue Retention Rate: As of December 31, 2017, Workiva's revenue retention rate (excluding add-on revenue) was 96.0%, and the revenue retention rate including add-on revenue was 107.6%. Add-on revenue includes the change in both seats purchased and seat pricing for existing customers.
Large Contracts: As of December 31, 2017, Workiva had 324 customers with an annual contract value (ACV) of more than $100,000, up 37% from 236 customers at the end of 2016. In 2017, Workiva had 146 customers with an ACV of more than $150,000, up 52% from 96 customers in the fourth quarter of last year. For additional information, see Exhibit C at the end of this press release.
Fortune’s Best Workplaces: Workiva was named number 12 on Fortune Magazine’s Best Workplaces in Technology list for 2018.
Full Year 2017 Financial Highlights
Revenue: Total revenue for the full year 2017 was $207.9 million, an increase of 16.4% compared with $178.6 million in the prior year. Subscription and support revenue was $169.3 million, an increase of 18.3% on a year-over-year basis. Professional services revenue was $38.6 million, an increase of 8.6% on a year-over-year basis.
Gross Profit: GAAP gross profit for 2017 was $147.6 million compared with $127.0 million in the prior year. GAAP gross margin was 71.0% in 2017. Non-GAAP gross profit was $148.8 million, an increase of 16.3% compared with the prior year, and non-GAAP gross margin was 71.6%.
Loss from Operations: GAAP loss from operations for the full year 2017 was $44.3 million compared with a loss of $43.6 million in the prior year. Non-GAAP loss from operations was $24.8 million compared with a loss of $29.3 million in 2016.
Net Loss: GAAP net loss for 2017 was $44.4 million compared with a net loss of $44.0 million in the prior year. GAAP net loss per share was $1.07 based on 41.6 million weighted-average shares outstanding compared with a loss per share of $1.08 based on 40.7 million weighted-average shares outstanding in 2016.
Non-GAAP net loss for 2017 was $25.0 million compared with a net loss of $29.7 million in the prior year. Non-GAAP net loss per share was $0.60 based on 41.6 million weighted-average shares outstanding compared with a non-GAAP net loss per share of $0.73 based on 40.7 million weighted-average shares in 2016.
Balance Sheet: As of December 31, 2017, Workiva had cash, cash equivalents and marketable securities totaling $76.7 million, compared with $77.8 million as of September 30, 2017. Capital lease and financing obligations totaled $19.6 million as of December 31, 2017.
Cash Flow: Net cash provided by operating activities was $5.5 million in 2017, compared to cash used in operating activities of $10.4 million in 2016.
“We are pleased to have generated positive operating cash flow in 2017. We expect operating cash flow to be positive again in 2018,” said Stuart Miller, Executive Vice President and Chief Financial Officer of Workiva.






Financial Outlook
The guidance provided below reflects the impact of ASC 606, which Workiva adopted January 1, 2018 using the modified retrospective transition method. Workiva will report its financial results under both ASC 606 and the previous standard (ASC 605) each quarter in 2018. Workiva's preliminary estimates relating to this accounting change are as follows: a favorable impact of approximately $4.5 million on operating expenses for 2018, an unfavorable impact of approximately $2.0 million on services revenue in the first quarter, and an insignificant impact on total revenue for 2018. These impacts are addressed in the guidance below.
As of February 22, 2018, Workiva is providing guidance for its first quarter 2018 and full year 2018 as follows:
First Quarter 2018 Guidance:
Total revenue is expected to be in the range of $57.3 million to $57.8 million.
GAAP loss from operations is expected to be in the range of $13.7 million to $14.2 million.
Non-GAAP loss from operations is expected to be in the range of $7.8 million to $8.3 million.
GAAP net loss per basic and diluted share is expected to be in the range of $0.33 to $0.34.
Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.19 to $0.20.
Net loss per basic and diluted share is based on 42.6 million weighted-average shares outstanding.
Full Year 2018 Guidance:
Total revenue is expected to be in the range of $234.0 million to $236.0 million.
GAAP loss from operations is expected to be in the range of $57.1 million to $59.1 million.
Non-GAAP loss from operations is expected to be in the range of $32.0 million to $34.0 million.
GAAP net loss per basic and diluted share is expected to be in the range of $1.35 to $1.40.
Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.77 to $0.82.
Net loss per basic and diluted share is based on 43.4 million weighted-average shares outstanding.

“Our plans to capture larger enterprise deals and achieve our long-term financial targets remain unchanged. Our 2018 non-GAAP operating loss guidance reflects the necessary investments to execute our strategy. As we stated last quarter, we expect to see progress from our enterprise strategy in bookings in the second half of 2018 and in revenue in 2019,” said Miller.
Quarterly Conference Call
Workiva will host a conference call today at 5:00 p.m. ET to review the Company’s financial results for the fourth quarter and full year 2017, in addition to discussing the Company’s outlook for the first quarter and full year 2018. To access this call, dial 866-393-4306 (domestic) or 734-385-2616 (international). The conference ID is 6689369. A live webcast of the conference call will be accessible in the “Investor Relations” section of Workiva’s website at www.workiva.com. A replay of this conference call can also be accessed through March 1, 2018 at 855-859-2056 (domestic) or 404-537-3406 (international). The replay pass code is 6689369. An archived webcast of this conference call will also be available an hour after the completion of the call in the “Investor Relations” section of the Company’s website at www.workiva.com.
About Workiva
Workiva (NYSE:WK) delivers Wdesk, an intuitive cloud platform that modernizes how people work within thousands of organizations, including over 70 percent of the FORTUNE 500®. Wdesk is built upon a data management engine, offering controlled collaboration, data connections, granular permissions and a full audit trail. Wdesk helps mitigate risk, improves productivity and gives users confidence in their data-driven decisions. Workiva employs more than 1,300 people with offices in 16 cities. The company is headquartered in Ames, Iowa. For more information, visit workiva.com.

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Non-GAAP Financial Measures
The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in Exhibit A at the end of this press release. A reconciliation of GAAP to non-GAAP guidance has been provided in Exhibit B at the end of this press release.

Workiva believes that the use of non-GAAP gross profit and gross margin, non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Non-GAAP gross profit is calculated by excluding stock-based compensation expense attributable to cost of revenues from gross profit. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by revenues. Non-GAAP loss from operations is calculated by excluding stock-based compensation expense from loss from operations. Non-GAAP net loss is calculated by excluding stock-based compensation expense, net of tax, from net loss. Non-GAAP net loss per share is calculated by dividing non-GAAP net loss by the weighted- average shares outstanding as presented in the calculation of GAAP net loss per share. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Workiva believes that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between its operating results from period to period. Workiva’s management uses these non-GAAP financial measures as tools for financial and operational decision making and for evaluating Workiva’s own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Workiva’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Workiva’s reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Workiva’s business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Workiva’s business.

Safe Harbor Statement
Certain statements in this press release 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. These statements relate to future events or the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company’s expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “outlook,” “guidance” or the negative of those terms or other comparable terminology.

Please see the Company’s documents filed or to be filed with the Securities and Exchange Commission, including the Company’s annual reports filed on Form 10-K and quarterly reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many




of which are beyond the Company’s control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.



WORKIVA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)

 
Three months ended December 31,
 
Year ended December 31,
 
2017
 
2016
 
2017
 
2016
 
(unaudited)
 
 
 
 
Revenue
 
 
 
 
 
 
 
Subscription and support
$
45,549

 
$
38,329

 
$
169,283

 
$
143,120

Professional services
8,957

 
8,045

 
38,586

 
35,526

Total revenue
54,506

 
46,374

 
207,869

 
178,646

Cost of revenue
 
 
 
 
 
 
 
Subscription and support (1)
8,779

 
7,244

 
32,646

 
27,895

Professional services (1)
7,310

 
5,964

 
27,599

 
23,730

Total cost of revenue
16,089

 
13,208

 
60,245

 
51,625

Gross profit
38,417

 
33,166

 
147,624

 
127,021

Operating expenses
 
 
 
 
 
 
 
Research and development (1)
18,870

 
14,533

 
68,172

 
57,438

Sales and marketing (1)
21,949

 
18,196

 
84,161

 
80,466

General and administrative (1)
12,271

 
7,845

 
39,594

 
32,695

Total operating expenses
53,090

 
40,574

 
191,927

 
170,599

Loss from operations
(14,673
)
 
(7,408
)
 
(44,303
)
 
(43,578
)
Interest expense
(451
)
 
(455
)
 
(1,845
)
 
(1,875
)
Other income, net
797

 
348

 
1,783

 
1,500

Loss before (benefit) provision for income taxes
(14,327
)
 
(7,515
)
 
(44,365
)
 
(43,953
)
(Benefit) provision for income taxes
(6
)
 
1

 
61

 
24

Net loss
$
(14,321
)
 
$
(7,516
)
 
$
(44,426
)
 
$
(43,977
)
Net loss per common share:
 
 
 
 
 
 
 
Basic and diluted
$
(0.34
)
 
$
(0.18
)
 
$
(1.07
)
 
$
(1.08
)
Weighted-average common shares outstanding - basic and diluted
42,108,764

 
40,872,772

 
41,618,838

 
40,671,133


(1) Includes stock-based compensation expense as follows:
 
Three months ended December 31,
 
Year ended December 31,
 
2017
 
2016
 
2017
 
2016
 
(unaudited)
 
 
 
 
Cost of revenue
 
 
 
 
 
 
 
Subscription and support
$
216

 
$
128

 
$
738

 
$
493

Professional services
136

 
96

 
465

 
411

Operating expenses
 
 
 
 
 
 
 
Research and development
658

 
578

 
2,224

 
2,365

Sales and marketing
842

 
604

 
2,983

 
2,075

General and administrative
4,424

 
2,279

 
13,066

 
8,903






WORKIVA INC.

CONSOLIDATED BALANCE SHEETS
(in thousands)
 
As of December 31,
 
2017
 
2016
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
60,333

 
$
51,281

Marketable securities
16,364

 
11,435

Accounts receivable, net
28,800

 
22,535

Deferred commissions
2,376

 
1,864

Other receivables
975

 
1,545

Prepaid expenses
6,444

 
9,382

Total current assets
115,292

 
98,042

Property and equipment, net
40,444

 
42,590

Intangible assets, net
1,118

 
1,012

Other assets
861

 
1,499

Total assets
$
157,715

 
$
143,143

Liabilities and Stockholders’ Deficit
Current liabilities
 
 
 
Accounts payable
$
3,060

 
$
849

Accrued expenses and other current liabilities
20,212

 
20,695

Deferred revenue
104,684

 
76,016

Deferred government grant obligation
217

 
1,022

Current portion of capital lease and financing obligations
1,168

 
1,285

Current portion of long-term debt

 
20

Total current liabilities
129,341

 
99,887

Deferred revenue
22,709

 
21,485

Deferred government grant obligation
278

 
1,000

Other long-term liabilities
3,896

 
4,100

Capital lease and financing obligations
18,425

 
19,743

Long-term debt

 
53

Total liabilities
174,649

 
146,268

Stockholders’ deficit
 
 
 
Common stock
42

 
41

Additional paid-in-capital
248,289

 
217,454

Accumulated deficit
(265,337
)
 
(220,911
)
Accumulated other comprehensive income
72

 
291

Total stockholders’ deficit
(16,934
)
 
(3,125
)
Total liabilities and stockholders’ deficit
$
157,715

 
$
143,143






WORKIVA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 
Three months ended December 31,
 
Year ended December 31,
 
2017
 
2016
 
2017
 
2016
 
(unaudited)
 
 
 
 
Cash flows from operating activities
 
 
 
 
 
 
 
Net loss
$
(14,321
)
 
$
(7,516
)
 
$
(44,426
)
 
$
(43,977
)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
 
 
 
 
 
 
 
Depreciation and amortization
934

 
904

 
3,546

 
3,820

Stock-based compensation expense
6,276

 
3,685

 
19,476

 
14,247

(Recovery of) provision for doubtful accounts
(258
)
 
107

 
(517
)
 
185

Realized gain on sale of available-for-sale securities, net

 

 

 
(6
)
Amortization of premiums and discounts on marketable securities, net
18

 
36

 
101

 
147

Recognition of deferred government grant obligation
(635
)
 
(231
)
 
(1,578
)
 
(1,141
)
Deferred income tax

 
(25
)
 

 
(32
)
Changes in assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable
(4,247
)
 
(367
)
 
(5,546
)
 
(7,101
)
Deferred commissions
(168
)
 
(233
)
 
(498
)
 
(497
)
Other receivables
134

 
(285
)
 
577

 
(732
)
Prepaid expenses
(145
)
 
(4,415
)
 
2,952

 
(5,513
)
Other assets
692

 
187

 
618

 
(654
)
Accounts payable
1,198

 
(4,310
)
 
2,206

 
(3,930
)
Deferred revenue
4,969

 
18,799

 
29,367

 
34,211

Accrued expenses and other liabilities
(675
)
 
3,616

 
(758
)
 
604

Net cash (used in) provided by operating activities
(6,228
)
 
9,952

 
5,520

 
(10,369
)
Cash flows from investing activities
 
 
 
 
 
 
 
Purchase of property and equipment
(54
)
 
(801
)
 
(1,188
)
 
(1,901
)
Purchase of marketable securities
(3,002
)
 
(499
)
 
(14,369
)
 
(1,301
)
Maturities of marketable securities
1,600

 

 
9,281

 

Sale of marketable securities

 

 

 
7,197

Purchase of intangible assets
(53
)
 
(38
)
 
(197
)
 
(190
)
Net cash (used in) provided by investing activities
(1,509
)
 
(1,338
)
 
(6,473
)
 
3,805

Cash flows from financing activities
 
 
 
 
 
 
 
Proceeds from option exercises
5,816

 
237

 
12,485

 
1,597

Taxes paid related to net share settlements of stock-based compensation awards
(189
)
 

 
(1,125
)
 
(761
)
Repayment of other long-term debt

 

 
(73
)
 
(18
)
Principal payments on capital lease and financing obligations
(300
)
 
(417
)
 
(1,435
)
 
(1,863
)
Proceeds from government grants
29

 

 
51

 
183

Payments of issuance costs on line of credit

 

 
(81
)
 
(33
)
Net cash provided by (used in) financing activities
5,356

 
(180
)
 
9,822

 
(895
)
Effect of foreign exchange rates on cash
(4
)
 
5

 
183

 
(10
)
Net (decrease) increase in cash and cash equivalents
(2,385
)
 
8,439

 
9,052

 
(7,469
)
Cash and cash equivalents at beginning of period
62,718

 
42,842

 
51,281

 
58,750

Cash and cash equivalents at end of period
$
60,333

 
$
51,281

 
$
60,333

 
$
51,281





EXHIBIT A
WORKIVA INC.
RECONCILIATION OF NON-GAAP INFORMATION
(in thousands, except share and per share)


Three months ended December 31,

Year ended December 31,

2017

2016

2017

2016
Gross profit, subscription and support
$
36,770


$
31,085


$
136,637

 
$
115,225

Add back: Stock-based compensation
216


128


738

 
493

Gross profit, subscription and support, non-GAAP
$
36,986


$
31,213


$
137,375

 
$
115,718

As a percentage of subscription and support revenue, non-GAAP
81.2
 %

81.4
 %

81.2
 %
 
80.9
 %
 




 
 
 
Gross profit, professional services
$
1,647


$
2,081


$
10,987

 
$
11,796

Add back: Stock-based compensation
136


96


465

 
411

Gross profit, professional services, non-GAAP
$
1,783


$
2,177


$
11,452

 
$
12,207

As a percentage of professional services revenue, non-GAAP
19.9
 %

27.1
 %

29.7
 %
 
34.4
 %
 




 
 
 
Gross profit, as reported
$
38,417


$
33,166


$
147,624

 
$
127,021

Add back: Stock-based compensation
352


224


1,203

 
904

Gross profit, non-GAAP
$
38,769


$
33,390


$
148,827

 
$
127,925

As percentage of revenue, non-GAAP
71.1
 %

72.0
 %

71.6
 %
 
71.6
 %
 




 
 
 
Research and development, as reported
$
18,870


$
14,533


$
68,172

 
$
57,438

Less: Stock-based compensation
658


578


2,224

 
2,365

Research and development, non-GAAP
$
18,212


$
13,955


$
65,948

 
$
55,073

As percentage of revenue, non-GAAP
33.4
 %

30.1
 %

31.7
 %
 
30.8
 %
 
 
 
 
 
 
 
 
Sales and marketing, as reported
$
21,949


$
18,196


$
84,161

 
$
80,466

Less: Stock-based compensation
842


604


2,983

 
2,075

Sales and marketing, non-GAAP
$
21,107


$
17,592


$
81,178

 
$
78,391

As percentage of revenue, non-GAAP
38.7
 %

37.9
 %

39.1
 %
 
43.9
 %
 
 
 
 
 
 
 
 
General and administrative, as reported
$
12,271


$
7,845


$
39,594

 
$
32,695

Less: Stock-based compensation
4,424


2,279


13,066

 
8,903

General and administrative, non-GAAP
$
7,847


$
5,566


$
26,528

 
$
23,792

As percentage of revenue, non-GAAP
14.4
 %

12.0
 %

12.8
 %
 
13.3
 %
 
 
 
 
 
 
 
 
Loss from operations
$
(14,673
)

$
(7,408
)

$
(44,303
)
 
$
(43,578
)
Add back: Stock-based compensation
6,276


3,685


19,476

 
14,247

Loss from operations, non-GAAP
$
(8,397
)

$
(3,723
)

$
(24,827
)
 
$
(29,331
)
As percentage of revenue, non-GAAP
(15.4
)%

(8.0
)%

(11.9
)%
 
(16.4
)%
 
 
 
 
 
 
 
 
Net loss
$
(14,321
)

$
(7,516
)

$
(44,426
)
 
$
(43,977
)
Add back: Stock-based compensation
6,276


3,685


19,476

 
14,247

Net loss, non-GAAP
$
(8,045
)

$
(3,831
)

$
(24,950
)
 
$
(29,730
)
As percentage of revenue, non-GAAP
(14.8
)%

(8.3
)%

(12.0
)%
 
(16.6
)%
 
 
 
 
 
 
 
 
Net loss per basic and diluted share:
$
(0.34
)
 
$
(0.18
)
 
$
(1.07
)
 
$
(1.08
)
Add back: Stock-based compensation
0.15


0.09

 
0.47

 
0.35

Net loss per basic and diluted share, non-GAAP
$
(0.19
)
 
$
(0.09
)
 
$
(0.60
)
 
$
(0.73
)
Weighted-average common shares outstanding - basic and diluted, non-GAAP
42,108,764

 
40,872,772

 
41,618,838

 
40,671,133





EXHIBIT B
WORKIVA INC.
RECONCILIATION OF NON-GAAP GUIDANCE
(in thousands, except share and per share data)

 
Three months ending March 31, 2018
 
Year ending December 31, 2018
 
 
 
 
 
 
 
 
Loss from operations, GAAP range
$
(13,700
)
-
$
(14,200
)
 
$
(57,100
)
-
$
(59,100
)
Add back: Stock-based compensation
5,900

 
5,900

 
25,100

 
25,100

Loss from operations, non-GAAP range
$
(7,800
)
-
$
(8,300
)
 
$
(32,000
)
-
$
(34,000
)
 
 
 
 
 
 
 
 
Net loss per share, GAAP range
$
(0.33
)
-
$
(0.34
)
 
$
(1.35
)
-
$
(1.40
)
Add back: Stock-based compensation
0.14

 
0.14

 
0.58

 
0.58

Net loss per share, non-GAAP range
$
(0.19
)
-
$
(0.20
)
 
$
(0.77
)
-
$
(0.82
)
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
42,600,000

 
42,600,000

 
43,400,000

 
43,400,000




EXHIBIT C
WORKIVA INC.
Customer Count by Annual Contract Value


2014
2015
2016
2017
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Annual Contract Value $100k+
45

55

67

73

85

111

125

144

166

183

205

236

250

275

302

324

Annual Contract Value $150k+
14

18

24

27

29

36

49

56

72

85

93

96

101

121

131

146


Annual contract value (“ACV”) for each customer is calculated by annualizing the subscription and support revenue recognized during each quarter.
Investor Relations Contact 
Adam Rogers
Workiva Inc.
investor@workiva.com
1.515.663.4471
Media Contact 
Kevin McCarthy
Workiva Inc.
press@workiva.com
1.515.663.4471