Financial and compliance reporting software company Workiva (NYSE:WK) will be reporting earnings tomorrow after market hours. Here's what you need to know.
Last quarter Workiva reported revenues of $120.7 million, up 28.7% year on year, beating analyst revenue expectations by 3.14%. Despite the solid revenue growth, it was a mixed quarter for the company, with a decent beat of analyst estimates but decelerating customer growth. The company added 78 enterprise customers paying more than $100,000 annually to a total of 1,121.
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This quarter analysts are expecting Workiva's revenue to grow 22.2% year on year to $127.4 million, in line with the 21.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.15 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 3.86%.
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 the technology segment has been facing declining investor sentiment following the fears around raising interest rates, with the stocks down on average 18.4% over the last month. Workiva is down 19.4% during the same time, and is heading into the earnings with analyst price target of $132, compared to share price of $96.51.
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The author has no position in any of the stocks mentioned.