Workiva Reports Strong Growth Amid Analyst Optimism

Workiva's recent financial results show promise with accelerating revenue growth and bullish analyst ratings, suggesting potential stock gains ahead.

Date: 02-03-2025

AI Rating: 7

Revenue Growth
Workiva generated $199.9 million in total revenue during Q4, representing a robust 20% increase from the same quarter last year. This marks the second consecutive quarter of accelerating growth, highlighting a positive trajectory for the company. Furthermore, the increase is backed by existing customers spending more and the addition of new customers, contributing to the company's momentum.

Net Income
The company reported a net loss of $55 million in 2024, which is a significant improvement compared to the $127.5 million loss in the previous year. This 56% reduction illustrates Workiva's efforts in revenue enhancement and expense management, indicating a leaner operational model.

Profit Margins
On a non-GAAP basis, Workiva achieved profitability with a net income of $53.5 million, a notable reversal from a loss of $22.8 million in 2023. Although this does not represent traditional profitability due to adjustments, it supports the idea of a positive trend in financial health.

Analyst Ratings
According to the report, 11 analysts cover Workiva, with eight assigning it a buy rating and the rest suggesting overweight positions. The average price target of $119.78 implies a potential 39% upside, reflecting positive market sentiment.

The current stock valuation, with a price-to-sales ratio at 6.5, offers a more attractive entry point compared to its previous peak of above 20. The long-term addressable market for Workiva, valued at $35 billion, suggests a significant growth opportunity, especially given its current market cap of less than $5 billion. This positioning, alongside strong revenue growth and bullish analyst sentiment, positions Workiva favorably for future performance.

Stocks: WK