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Earnings To Watch: Workiva (WK) Reports Q4 Results Tomorrow

WK Cover Image

financial and compliance reporting software company Workiva (NYSE: WK) will be announcing earnings results tomorrow afternoon. Here’s what to look for.

Workiva beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $185.6 million, up 17.4% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ billings estimates but EPS guidance for next quarter missing analysts’ expectations significantly. It added 158 enterprise customers paying more than $100,000 annually to reach a total of 1,926.

Is Workiva a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Workiva’s revenue to grow 17.2% year on year to $195.3 million, improving from the 15.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.

Workiva Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Workiva has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.4% on average.

Looking at Workiva’s peers in the finance and HR software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Paycor delivered year-on-year revenue growth of 13.1%, beating analysts’ expectations by 1.9%, and Bill.com reported revenues up 13.9%, in line with consensus estimates. Paycor’s stock price was unchanged after the resultswhile Bill.com was down 35.6%.

Read our full analysis of Paycor’s results here and Bill.com’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the finance and HR software stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.8% on average over the last month. Workiva is down 12.6% during the same time and is heading into earnings with an average analyst price target of $123.84 (compared to the current share price of $85.10).

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