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 $132.8 million, up 17.8% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth. The company added 71 enterprise customers paying more than $100,000 annually to a total of 1,257.
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 15.4% year on year to $139.3 million, slowing down from the 28.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 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 3.09%.
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. Paylocity delivered top-line growth of 39.2% year on year, beating analyst estimates by 5.13% and Paycor reported revenues up 28.9% year on year, exceeding estimates by 4.33%. Paylocity traded flat on the results, Paycor was up 2.0%. Read our full analysis of Paylocity's results here and Paycor's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 7.77% over the last month. Workiva is down 4.67% during the same time, and is heading into the earnings with analyst price target of $88.00, compared to share price of $88.24.
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The author has no position in any of the stocks mentioned.