Workiva (NYSE: WK) reported Q4 EPS of $0.09, $0.09 better than the analyst estimate of $0.00. Revenue for the quarter came in at $93.8 million versus the consensus estimate of $90.55 million.

"We are pleased with our fourth quarter and full year 2020 results, which beat guidance for revenue and operating income," said Marty Vanderploeg, Chief Executive Officer.

"We have successfully upgraded all of our customers to our new platform, which is more open and scalable," added Vanderploeg. "With the upgrade now complete, we are prioritizing three areas where we see opportunities for revenue growth: development and deployment of fit-for-purpose solutions, global expansion and our partner ecosystem."

"On the strength of record subscription bookings in the fourth quarter, we are raising guidance for fiscal 2021 revenue," said Stuart Miller, Chief Financial Officer.

Fourth Quarter 2020 Financial Highlights

• Revenue: Total revenue for the fourth quarter of 2020 reached $93.8 million, an increase of 16.9% from $80.3 million in the fourth quarter of 2019. Subscription and support revenue contributed $81.0 million, up 22.4% versus the fourth quarter of 2019. Professional services revenue was $12.9 million, a decrease of 8.9% compared to the same quarter in the prior year.
• Gross Profit: GAAP gross profit for the fourth quarter of 2020 was $70.2 million compared with $57.2 million in the same quarter of 2019. GAAP gross margin was 74.8% versus 71.3% in the fourth quarter of 2019. Non-GAAP gross profit for the fourth quarter of 2020 was $71.0 million, an increase of 22.2% compared with the prior year\'s fourth quarter, and non-GAAP gross margin was 75.6% compared to 72.3% in the fourth quarter of 2019.
• Results from Operations: GAAP loss from operations for the fourth quarter of 2020 was $5.1 million compared with a loss of $14.4 million in the prior year\'s fourth quarter. Non-GAAP income from operations was $5.2 million, compared with non-GAAP loss from operations of $4.6 million in the fourth quarter of 2019.
• GAAP Net Loss: GAAP net loss for the fourth quarter of 2020 was $8.0 million compared with a net loss of $16.1 million for the prior year\'s fourth quarter. GAAP net loss per basic and diluted share was $0.16 compared with a net loss per basic and diluted share of $0.34 in the fourth quarter of 2019.
• Non-GAAP Net Income/Loss: Non-GAAP net income for the fourth quarter of 2020 was $4.6 million compared with a net loss of $4.1 million in the prior year\'s fourth quarter. Non-GAAP net income per basic and diluted share was $0.09 and $0.09, respectively, compared with a net loss per basic and diluted share of $0.09, in the fourth quarter of 2019.
• Liquidity: As of December 31, 2020, Workiva had cash, cash equivalents and marketable securities totaling $530.0 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 in 2026 and $18.4 million of other financing obligations outstanding as of December 31, 2020.

GUIDANCE:

Workiva sees Q1 2021 EPS of $0.06-$0.08, versus the consensus of ($0.01). Workiva sees Q1 2021 revenue of $100-101 million, versus the consensus of $97.85 million.

Workiva sees FY2021 EPS of ($0.30)-($0.26), versus the consensus of ($0.11). Workiva sees FY2021 revenue of $409-411 million, versus the consensus of $402.82 million.

As of February 17, 2021, Workiva is providing guidance as follows:

First Quarter 2021 Guidance:

• Total revenue is expected to be in the range of $100.0 million to $101.0 million.
• GAAP loss from operations is expected to be in the range of $8.5 million to $7.5 million.
• Non-GAAP income from operations is expected to be in the range of $4.0 million to $5.0 million.
• GAAP net loss per basic and diluted share is expected to be in the range of $0.23 to $0.21.
• Non-GAAP net income per basic share is expected to be in the range of $0.06 to $0.08.
• Net income (loss) per basic share is based on 50.2 million weighted-average shares outstanding.

Full Year 2021 Guidance:

• Total revenue is expected to be in the range of $409.0 million to $411.0 million.
• GAAP loss from operations is expected to be in the range of $71.0 million to $69.0 million.
• Non-GAAP loss from operations is expected to be in the range of $12.0 million to $10.0 million.
• GAAP net loss per basic and diluted share is expected to be in the range of $1.63 to $1.59.
• Non-GAAP net loss per basic share is expected to be in the range of $0.30 to $0.26.
• Net income (loss) per basic share is based on 51.4 million weighted-average shares outstanding.

Workiva has factored into its guidance the expected impacts of COVID-19 on its business and results of operations based on currently available information. Significant variation from these assumptions could cause the company to change its guidance, and it undertakes no obligation to update its assumptions, expectations or guidance.

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