Workiva (NYSE: WK) reported Q4 EPS of ($0.09), $0.07 better than the analyst estimate of ($0.16). Revenue for the quarter came in at $80.3 million versus the consensus estimate of $75.69 million.

Fourth Quarter 2019 Financial Highlights

• Revenue: Total revenue for the fourth quarter of 2019 reached $80.3 million, an increase of 24.6% from $64.4 million in the fourth quarter of 2018. Subscription and support revenue contributed $66.1 million, up 23.0% versus the fourth quarter of 2018. Professional services revenue was $14.1 million, an increase of 32.5% compared to the same quarter in the prior year.
• Gross Profit: GAAP gross profit for the fourth quarter of 2019 was $57.2 million compared with $47.0 million in the same quarter of 2018. GAAP gross margin was 71.3% versus 73.0% in the fourth quarter of 2018. Non-GAAP gross profit for the fourth quarter of 2019 was $58.1 million, an increase of 22.6% compared with the prior year\'s fourth quarter, and non-GAAP gross margin was 72.3% compared to 73.5% in the fourth quarter of 2018.
• Loss from Operations: GAAP loss from operations for the fourth quarter of 2019 was $14.5 million compared with a loss of $7.8 million in the prior year\'s fourth quarter. Non-GAAP loss from operations was $4.6 million, compared with non-GAAP loss from operations of $0.3 million in the fourth quarter of 2018.
• Net Loss: GAAP net loss for the fourth quarter of 2019 was $16.3 million compared with a net loss of $7.7 million for the prior year\'s fourth quarter. GAAP net loss per basic and diluted share was $0.35 compared with a net loss per basic and diluted share of $0.17 in the fourth quarter of 2018.
• Non-GAAP net loss for the fourth quarter of 2019 was $4.3 million compared with a net loss of $0.2 million in the prior year\'s fourth quarter. Non-GAAP net loss per basic and diluted share was $0.09, compared with a net loss per basic and diluted share of $0.00 in the fourth quarter of 2018.
• Liquidity: As of December 31, 2019, Workiva had cash, cash equivalents and marketable securities totaling $488.0 million, compared with $98.3 million as of December 31, 2018. In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026. In addition, financing obligations totaled $17.2 million as of December 31, 2019.

"We are pleased with our fourth quarter and full year 2019 results that beat guidance for revenue, operating loss and loss per share," said Marty Vanderploeg, Chief Executive Officer of Workiva.

"We are encouraged by our progress in bookings and pipeline from our growth vectors: Europe, Wdata and our platform solutions for integrated risk and global statutory reporting," said Stuart Miller, Chief Financial Officer of Workiva. "Our Q4 results and 2020 guidance reflect our investments in these vectors."

"One of our top priorities this year is upgrading customers to the next generation of our technology, which is an end-to-end platform," said Vanderploeg. "Our customers now have the power to connect and manage all of their data – from initial systems of record to final reports – in our secure, cloud platform."

"Our advisory and service partners can also combine their domain expertise with our new, more open platform to create higher-value solutions for their clients," said Vanderploeg. "We see our partners as a catalyst for growth in 2020."

GUIDANCE:

Workiva sees Q1 2020 EPS of ($0.13)-($0.12), versus the consensus of ($0.08). Workiva sees Q1 2020 revenue of $82.8-83.8 million, versus the consensus of $81.39 million.

Workiva sees FY2020 EPS of ($0.67)-($0.63), versus the consensus of ($0.31). Workiva sees FY2020 revenue of $341.5-343.5 million, versus the consensus of $341.69 million.

First Quarter 2020 Guidance:

• Total revenue is expected to be in the range of $82.8 million to $83.3 million.
• GAAP loss from operations is expected to be in the range of $17.6 million to $18.1 million.
• Non-GAAP loss from operations is expected to be in the range of $7.0 million to $7.5 million.
• GAAP net loss per basic and diluted share is expected to be in the range of $0.39 to $0.40.
• Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.12 to $0.13.
• Net loss per basic and diluted share is based on 47.8 million weighted-average shares outstanding.

Full Year 2020 Guidance:

• Total revenue is expected to be in the range of $341.5 million to $343.5 million.
• GAAP loss from operations is expected to be in the range of $79.7 million to $81.7 million.
• Non-GAAP loss from operations is expected to be in the range of $36.0 million to $38.0 million.
• GAAP net loss per basic and diluted share is expected to be in the range of $1.72 to $1.76.
• Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.63 to $0.67.
• Net loss per basic and diluted share is based on 48.9 million weighted-average shares outstanding.

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