Workiva Inc. Q3 FY2025 earnings call

• Q3 2025 saw strong financial performance with 23% growth in subscription revenue and 21% total revenue growth, beating revenue guidance. Increased full year 2025 revenue and non-GAAP operating margin guidance. - Highlighted significant deal wins across various segments including global pharmaceutical, telecommunications, energy services, financial reporting, GRC, and sustainability. - Hosted Amplify user conference in September, launching agentic AI extensions like Intelligent Finance, Intelligent Sustainability, and Intelligent GRC. - Outlined productivity initiatives focusing on organizational/operating model redesign, process streamlining/automation, optimizing product/go-to-market resources, and fiscal discipline. - Leadership change: Michael Hawkins stepped down as Chief Sales Officer, Michael Pinto appointed as new Chief Revenue Officer. CFO search ongoing.

In Q3 2025, Workiva generated total revenue of $224 million, up 21% from Q3 2024. Subscription revenue was $210 million, a 23% increase. Professional services revenue was $15 million, flat compared to Q3 2024. Non-GAAP operating margin was 12.7%, a 470 basis point beat on the high end of guidance. At the end of Q3 2025, there were 6,541 customers, a growth of 304 from Q3 2024. Gross retention rate was 97%, exceeding the 96% target, and net retention rate was 114% for the quarter. Large contract metrics were strong: contracts over $100,000 increased 23%, over $300,000 increased 41%, and over $500,000 increased 42% compared to Q3 2024.

• For Q4 2025, total revenue is expected to range from $234 million to $236 million, services revenue down compared to Q4 2024, non-GAAP operating margin in range of 16.7% to 17.4%. - For full year 2025, total revenue guidance increased to $880 million to $882 million, subscription revenue growth at least 21% year-over-year, non-GAAP operating margin range 9.2% to 9.4%, free cash flow margin approximately 12%. - In 2026, expect continued progress towards medium-term goals, XBRL services revenue to grow at low single-digit rate, setup/consulting revenue to decline, relatively flat total services revenue, with operating margin stronger in back half.

Q: Rob Oliver asked about platform sales consolidations and pricing change.

A: Julie Iskow responded that the trend of consolidation continues due to platform efficiency and data leverage, and pricing change is not disclosed but plays a positive role in expansions.

Q: Steven Enders asked about operating margin expansion and PTO impact.

A: Jill Klindt said margin expansion will continue with seasonality, and PTO transition will reduce accrued balance but no one-time cash impact.

Q: John Messina asked about capital markets pipeline and international momentum.

A: Julie Iskow noted increased IPO activity with momentum to continue post-shutdown, and international revenue at over 19% of total, with healthy demand and broad-based growth.

Q: Jacob Roberge asked about demand environment and GRC momentum.

A: Julie Iskow said demand has consistent uncertainty but Workiva's value proposition resonates, and GRC growth is due to cloud move and multi-solution deals.

Q: Brett Huff asked about SEC reporting base and nonregulatory FSG drivers.

A: Julie Iskow mentioned strong account expansion in SEC base and sustainability has nonregulatory drivers like business performance and risk management.

Q: Greyson Sklba asked about sustainability demand and free cash flow margin.

A: Jill Klindt said sustainability has consistent demand not tied to regulation, and free cash flow margin improved due to op margin and Q3 performance.

Q: Andrew DeGasperi asked about Michael Pinto's appointment.

A: Julie Iskow said Michael Pinto is brought in for next-level go-to-market growth, focusing on sales organization, partnerships, and driving growth to multibillions scale.