Workiva Delivers Strong Q4 2024 Results, Exceeds Revenue Guidance with 20% Subscription Growth
Workiva, a leading provider of cloud-based software solutions for data management and governance, has reported strong fourth-quarter 2024 results, exceeding revenue guidance with significant growth in subscription revenue.
The company's CEO, Julie Iskow, highlighted the resilience and adaptability of Workiva's business model during an ever-changing environment. Despite market volatility, Workiva's Q4 top line results beat the high end of its guidance, driven by broad-based demand across its portfolio of solutions.
"We're operating in an ever-changing environment," said Iskow. "And while we look forward to discussing sustainability and the regulatory landscape later in the call, we'll first dive into our results."
Key highlights from Workiva's Q4 2024 performance include:
A 22% increase in subscription revenue growth compared to Q4 of 2023, with total revenue growth of 20%;
A non-GAAP operating margin of 4.3%, up from 1.6% in 2023;
A full-year free cash flow margin of 11.7%, exceeding the company's guide of 9.5%; and
Strong underlying business fundamentals, including a net retention rate improvement to 112% and increasing deal sizes.
"Our Q4 results are supported by strong underlying business fundamentals," said Iskow. "We exceeded expectations in our account expansion activity, showcased by our net retention rate improving to 112%."
Workiva's strategic execution also drove growth, with consistent wins of larger deals and a focus on vendor consolidation and efficiency gains through streamlined operations.
"Multi-solution deals are now the expectation, not the exception," Iskow emphasized. "We're winning with our platform, CIOs and CFOs are interested in vendor consolidation and efficiencies gained from streamlined operations."
The company's expansion into global markets also contributed to its success, with 17.5% of its total revenue coming from outside the Americas, up 280 basis points from 2023.
Workiva's strong Q4 performance sets the stage for a promising 2025, with guidance provided for the first quarter and full-year revenue growth.
