Workiva (NYSE: WK) reported Q1 EPS of $0.12, $0.05 better than the analyst estimate of $0.07. Revenue for the quarter came in at $102.4 million versus the consensus estimate of $100.44 million.

First Quarter 2021 Financial Highlights

• Revenue: Total revenue for the first quarter of 2021 reached $104.2 million, an increase of 21.5% from $85.8 million in the first quarter of 2020. Subscription and support revenue contributed $84.9 million, up 24.2% versus the first quarter of 2020. Professional services revenue was $19.3 million, an increase of 10.6% compared to the same quarter in the prior year.
• Gross Profit: GAAP gross profit for the first quarter of 2021 was $80.5 million compared with $63.4 million in the same quarter of 2020. GAAP gross margin was 77.3% versus 73.9% in the first quarter of 2020. Non-GAAP gross profit for the first quarter of 2021 was $81.4 million, an increase of 26.7% compared with the prior year's first quarter, and non-GAAP gross margin was 78.1% compared to 74.9% in the first quarter of 2020.
• Results from Operations: GAAP loss from operations for the first quarter of 2021 was $4.1 million compared with a loss of $9.1 million in the prior year's first quarter. Non-GAAP income from operations was $7.5 million, compared with non-GAAP income from operations of $0.9 million in the first quarter of 2020.
• GAAP Net Loss: GAAP net loss for the first quarter of 2021 was $7.3 million compared with a net loss of $10.4 million for the prior year's first quarter. GAAP net loss per basic and diluted share was $0.15 compared with a net loss per basic and diluted share of $0.22 in the first quarter of 2020.
• Non-GAAP Net Income: Non-GAAP net income for the first quarter of 2021 was $6.6 million compared with net income of $1.7 million in the prior year's first quarter. Non-GAAP net income per basic and diluted share was $0.13 and $0.12, respectively, compared with net income per basic and diluted share of $0.04 and $0.03, respectively, in the first quarter of 2020.
• Liquidity: As of March 31, 2021, Workiva had cash, cash equivalents and marketable securities totaling $540.6 million, compared with $530.0 million as of December 31, 2020. Workiva had $345.0 million aggregate principal amount of 1.125% convertible senior notes due in 2026 and $17.9 million of finance lease obligations outstanding as of March 31, 2021.

"We entered 2021 with strong momentum, which continued throughout the first quarter," said Marty Vanderploeg, Chief Executive Officer. "Secular tailwinds from macro business trends, such as digital transformations, changes in the regulatory landscape, and remote workplaces, continue to generate strong demand for our open, intelligent and intuitive platform."

"Last week we announced our newest fit-for-purpose solution, ESG,” added Vanderploeg. “ESG reporting is complex, making it a natural fit for our platform and a compelling market for us to enter. As companies address the rapidly evolving ESG disclosure requirements from company stakeholders, we believe ESG will drive global demand for our cloud platform and lead to an expansion of our total addressable market.”

"Our cloud technology transforms the way people manage and report business data with various collaborators, data sources, documents, and spreadsheets. As a result of improved market demand and an expanding addressable market, we are raising our full-year guidance," said Jill Klindt, Chief Financial Officer.

GUIDANCE:

Workiva sees Q2 2021 EPS of ($0.02)-$0.00, versus the consensus of ($0.10). Workiva sees Q2 2021 revenue of $101-102 million, versus the consensus of $99.14 million.

Workiva sees FY2021 EPS of ($0.19)-($0.15), versus the consensus of ($0.28). Workiva sees FY2021 revenue of $418-420 million, versus the consensus of $410.6 million.

As of May 4, 2021, Workiva is providing guidance as follows:

Second Quarter 2021 Guidance:

• Total revenue is expected to be in the range of $101.0 million to $102.0 million.
• GAAP loss from operations is expected to be in the range of $12.1 million to $11.1 million.
• Non-GAAP income from operations is expected to be in the range of break-even to $1.0 million.
• GAAP net loss per basic and diluted share is expected to be in the range of $0.30 to $0.28.
• Non-GAAP net income per basic share is expected to be in the range of $0.00 to $0.02.
• Net income (loss) per basic share is based on 51.2 million weighted-average shares outstanding.

Full Year 2021 Guidance:

• Total revenue is expected to be in the range of $418.0 million to $420.0 million.
• GAAP loss from operations is expected to be in the range of $53.7 million to $51.7 million.
• Non-GAAP loss from operations is expected to be in the range of $5.0 million to $3.0 million.
• GAAP net loss per basic and diluted share is expected to be in the range of $1.31 to $1.27.
• Non-GAAP net loss per basic and diluted share is expected to be in the range of $0.19 to $0.15.
• Net income (loss) per basic and diluted share is based on 51.4 million weighted-average shares outstanding.

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