Workiva (NYSE: WK) reported Q1 EPS of $0.03, $0.18 better than the analyst estimate of ($0.15). Revenue for the quarter came in at $85.8 million versus the consensus estimate of $82.31 million.

First Quarter 2020 Financial Highlights

• Revenue: Total revenue for the first quarter of 2020 reached $85.8 million, an increase of 22.6% from $70.0 million in the first quarter of 2019. Subscription and support revenue contributed $68.4 million, up 21.8% versus the first quarter of 2019. Professional services revenue was $17.4 million, an increase of 26.0% compared to the same quarter in the prior year.
• Gross Profit: GAAP gross profit for the first quarter of 2020 was $63.4 million compared with $50.4 million in the same quarter of 2019. GAAP gross margin was 73.9% versus 72.1% in the first quarter of 2019. Non-GAAP gross profit for the first quarter of 2020 was $64.3 million, an increase of 25.5% compared with the prior year\'s first quarter, and non-GAAP gross margin was 74.9% compared to 73.2% in the first quarter of 2019.
• Results from Operations: GAAP loss from operations for the first quarter of 2020 was $9.2 million compared with a loss of $7.3 million in the prior year\'s first quarter. Non-GAAP income from operations was $0.8 million, compared with non-GAAP income from operations of $0.9 million in the first quarter of 2019.
• GAAP Net Loss: GAAP net loss for the first quarter of 2020 was $10.6 million compared with a net loss of $7.5 million for the prior year\'s first quarter. GAAP net loss per basic and diluted share was $0.22 compared with a net loss per basic and diluted share of $0.17 in the first quarter of 2019.
• Non-GAAP Net Income: Non-GAAP net income for the first quarter of 2020 was $1.6 million compared with a net income of $0.7 million in the prior year\'s first quarter. Non-GAAP net income per basic and diluted share was $0.03, compared with a net income per basic and diluted share of $0.02 and $0.01, respectively, in the first quarter of 2019.
• Liquidity: As of March 31, 2020, Workiva had cash, cash equivalents and marketable securities totaling $496.0 million, compared with $488.0 million as of December 31, 2019. Workiva had $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026 and other financing obligations totaled $16.9 million outstanding as of March 31, 2020.

"We are pleased with our first quarter 2020 financial results, which exceeded guidance for revenue and operating results," said Marty Vanderploeg, Chief Executive Officer of Workiva.

"Despite challenges from COVID-19, we believe we are in a stronger, more flexible financial position now than ever before, including nearly $500 million in unrestricted cash and short-term investments," said Vanderploeg.

"The depth and duration of the economic disruption from COVID-19 is unknown," said Stuart Miller, Chief Financial Officer of Workiva. "While we have a large pipeline of new deals, we have limited visibility on when the deals will close. We are providing guidance for the second quarter but suspending specific guidance for full year 2020. We are providing directional commentary for the remainder of the year."

"Working from anywhere in a safe and secure, online environment is becoming the new baseline," said Vanderploeg. "We believe that this shift to remote work will drive increased demand for our cloud platform for years to come."

"We are continuing to hire talent and focus investments on our growth vectors – Europe, Wdata, integrated risk, global statutory reporting and the U.S. government – as they provide enormous opportunities for us to grow and prosper," said Vanderploeg.

GUIDANCE:

Workiva sees Q2 2020 EPS of ($0.15)-($0.14), versus the consensus of ($0.17). Workiva sees Q2 2020 revenue of $80.3-80.8 million, versus the consensus of $82.83 million.

As of April 30, 2020, Workiva is providing guidance as follows:

Second Quarter 2020 Guidance:

• Total revenue is expected to be in the range of $80.3 million to $80.8 million.
• GAAP loss from operations is expected to be in the range of $22.1 million to $22.6 million.
• Non-GAAP loss from operations is expected to be in the range of $6.8 million to $7.3 million.
• GAAP net loss per basic and diluted share is expected to be in the range of $0.50 to $0.51.
• Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.14 to $0.15.
• Net loss per basic and diluted share is based on 48.2 million weighted-average shares outstanding.

Full Year 2020 Commentary

"Relative to the guidance that we provided in February, we now expect full year 2020 revenue to grow at a slower pace and operating margin to improve," said Miller.

For earnings history and earnings-related data on Workiva (WK) click here.