What To Expect From Workiva’s Q4 Earnings

Radek Strnad /
2022/02/21 6:12 am EST
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Financial and compliance reporting software company Workiva (NYSE:WK) will be reporting earnings tomorrow after market hours. Here's what to expect.

Last quarter Workiva reported revenues of $112.6 million, up 27.9% year on year, beating analyst revenue expectations by 3.99%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter and accelerating customer growth. The company added 91 enterprise customers paying more than $100,000 annually to a total of 1,043.

Is Workiva buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Workiva's revenue to grow 24.7% year on year to $117 million, improving on the 16.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 per share.

Workiva Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing 5 upwards revisions over the last thirty days. 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 4.23%.

Looking at Workiva's peers in the finance and HR software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Bill.com (NYSE:BILL) delivered top-line growth of 189% year on year, beating analyst estimates by 19.3% and Ceridian (NYSE:CDAY) reported revenues up 26.6% year on year, exceeding estimates by 2.56%. Bill.com traded up 36.3% on results, Ceridian was down 5.13%. Read our full analysis of Bill.com's results here and Ceridian 's results here.

Tech stocks have had a rocky start in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.78% over the last month. Workiva is down 8.77% during the same time, and is heading into the earnings with analyst price target of $153.8, compared to share price of $104.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.