Workiva Q2 revenue beats analyst expectations

Overview

• Workiva Q2 2025 revenue grows 21% yr/yr, beating analyst expectations

• Subscription revenue rises 23% yr/yr, driven by demand for solutions

• Co repurchased $10 mln of Class A common stock in Q2 2025

Outlook

• Workiva expects Q3 revenue between $218 mln and $220 mln

• Company projects full-year revenue between $870 mln and $873 mln

• Workiva anticipates Q3 non-GAAP operating margin of 7.0% to 8.0%

• Company sees full-year free cash flow margin at approximately 10.5%

Result Drivers

• SUBSCRIPTION REVENUE - Subscription and support revenue rose 23% yr/yr, driven by demand for Workiva's solutions

• LARGE CONTRACTS - Customers with annual contract value over $500,000 grew 35% yr/yr

• CUSTOMER RETENTION - Gross retention rate at 97% and net retention rate at 114%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for Workiva Inc is $100.00, about 33.5% above its July 30 closing price of $66.50

• The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 62 three months ago

Press Release: ID:nBw1DnpKWa