Financial and compliance reporting software company Workiva (NYSE:WK) will be reporting earnings tomorrow after the bell. Here's what to look for.
Last quarter Workiva reported revenues of $131.5 million, up 24.5% year on year, beating analyst revenue expectations by 4.36%. It was a decent quarter for the company, with accelerating customer growth but an underwhelming revenue guidance for the next quarter. The company added 62 enterprise customers paying more than $100,000 annually to a total of 1,186.
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This quarter analysts are expecting Workiva's revenue to grow 17.5% year on year to $132.5 million, slowing down from the 27.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.26 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.59%.
With Workiva being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 1.66 % over the last month. Workiva is up 0.86% during the same time, and is heading into the earnings with analyst price target of $89.90, compared to share price of $77.81.
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The author has no position in any of the stocks mentioned.