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What changed in WORKIVA INC's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of WORKIVA INC's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+284 added−285 removedSource: 10-K (2024-02-20) vs 10-K (2023-02-21)

Top changes in WORKIVA INC's 2023 10-K

284 paragraphs added · 285 removed · 222 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

65 edited+26 added−15 removed71 unchanged
Biggest changeWorkiva was the first SaaS company to join the United Nations’ CFO Coalition for the SDGs, where we work alongside other global CFOs to guide companies in aligning their sustainability commitments with credible corporate finance strategies to create real world impact.
Biggest changeWe are committing to ESG through innovation and collaboration with a high level of governance, accountability and disclosure. 14 Table of Contents A few examples of our continued action and commitments: • We have made significant progress towards our established ESG targets in innovation, people, environment and philanthropy. • Workiva was the first SaaS company to join the United Nations’ CFO Coalition for the SDGs, where we work alongside other global CFOs to guide companies in aligning their sustainability commitments with credible corporate finance strategies to create real world impact. • Workiva's integrated platform, blending sustainability reporting with financial reporting and GRC, enables seamless team collaboration and automation, ensures data accessibility, aggregation and assurance, and offers highly flexible and integrated reporting capabilities to advance companies’ ESG strategies and impacts.
The performance of the Workiva platform has been tested and proven by some of the largest, most demanding enterprises in the world. Continuous Improvement. Frequent collaboration with customers and development iteration allow us to make continuous improvements by releasing a new version of our platform several times each week. 5 Table of Contents Scales Rapidly.
The performance of the Workiva platform has been tested and proven by some of the largest, most demanding enterprises in the world. 5 Table of Contents Continuous Improvement. Frequent collaboration with customers and development iteration allow us to make continuous improvements by releasing a new version of our platform several times each week. Scales Rapidly.
Financial Reporting Global Statutory Reporting. We see growing demand for our platform in the United States (“U.S.”) and in Europe for statutory reporting, which is a complex process for our multinational customers that are required to report statutory financial information throughout different countries and local jurisdictions where they do business.
We see growing demand for our platform in the United States (“U.S.”) and in Europe for statutory reporting, which is a complex process for our multinational customers that are required to report statutory financial information throughout different countries and local jurisdictions where they do business.
With our platform’s data-linking capabilities, every change is automatically updated in all linked instances—including narrative and numbers—throughout spreadsheets, word-processing documents, charts and graphs, presentation decks and dashboards in our platform. Linking enables data consistency and ensures that collaborators are working with the most current data.
With our platform’s data-linking capabilities, every change is automatically updated in all linked instances—including narrative and numbers—throughout spreadsheets, word-processing documents, charts and graphs, presentation decks and dashboards in our platform. Linking enables data consistency and traceability and ensures that collaborators are working with the most current data.
Features tailored to the SEC reporting process include the capability to concurrently create reports in the HTML format required for filing on the SEC’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system and the ability to perform XBRL tagging as well as to submit SEC reports with Inline XBRL.
Features tailored to the SEC reporting process include the capability to concurrently create reports in the HTML format required for filing on the SEC’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system and the ability to perform XBRL tagging as well as to submit SEC reports with Inline XBRL (“iXBRL”).
Additionally, we offer the only holistic, unified software-as-a-service (“SaaS”) platform that brings customers’ financial reporting, Environmental, Social, and Governance (“ESG”), and Governance, Risk, and Compliance (“GRC”) together in a controlled, secure, audit-ready platform.
Additionally, we offer the only unified software-as-a-service (“SaaS”) platform that brings customers’ financial reporting, Environmental, Social, and Governance (“ESG”), and Governance, Risk, and Compliance (“GRC”) together in a controlled, secure, audit-ready platform.
We cannot assure you that we do not currently infringe, or that we will not in the future infringe, upon any third-party patents, copyrights or other proprietary rights. We have registered a number of trademarks and logos, including “Workiva,” “Wdesk” and “Wdata” with the United States Patent and Trademark Office and in several jurisdictions outside the United States.
We cannot assure you that we do not currently infringe, or that we will not in the future infringe, upon any third-party patents, copyrights or other proprietary rights. We have registered a number of trademarks and logos, including “Workiva,” “Wdesk” and “Wdata” with the United States Patent and Trademark Office and in several jurisdictions outside U.S. States.
We believe that our cloud-based platform has the combination of features and value to our customers that will continue to allow us to compete effectively. 10 Table of Contents Sales and Marketing Sales We sell our subscription contracts and related services globally, primarily through our direct sales organization which employs a combination of field sales, inside sales and partnership channels.
We believe that our cloud-based platform has the combination of features and value to our customers that will continue to allow us to compete effectively. 11 Table of Contents Sales and Marketing Sales We sell our subscription contracts and related services globally, primarily through our direct sales organization which employs a combination of field sales, inside sales and partnership channels.
It may also be more likely that competitors or other third parties will claim that our platform infringes upon their proprietary rights. 12 Table of Contents Our industry is characterized by the existence of a large number of patents and frequent claims and related litigation regarding patent and other intellectual property rights.
It may also be more likely that competitors or other third parties will claim that our platform infringes upon their proprietary rights. 13 Table of Contents Our industry is characterized by the existence of a large number of patents and frequent claims and related litigation regarding patent and other intellectual property rights.
Our marketing team hosts virtual and in-person events to educate prospects and customers and generate demand for our solutions. 11 Table of Contents Customer Success and Professional Services Our customer success and professional services teams help our account managers build relationships with customers by providing advice that enables them to harness the full power of our platform. Customer Success.
Our marketing team hosts virtual and in-person events to educate prospects and customers and generate demand for our solutions. 12 Table of Contents Customer Success and Professional Services Our customer success and professional services teams help our account managers build relationships with customers by providing advice that enables them to harness the full power of our platform. Customer Success.
We believe that our approach to hiring sales people, along with a progressive training, culture and compensation package will allow us to retain sales talent and continue to drive growth. In 2022, we continued to expand our ecosystem of partners, including global consulting firms, systems integration and technology firms, and leading regional consulting firms.
We believe that our approach to hiring sales people, along with a progressive training, culture and compensation package will allow us to retain sales talent and continue to drive growth. In 2023 , we continued to expand our ecosystem of partners, including global consulting firms, systems integration and technology firms, and leading regional consulting firms.
The key driver for ESEF is greater transparency and requires standardized reporting, consistently structured and accessible for stakeholders, thus we believe making it an ideal fit for Workiva . More than 5,000 European issuers are subject to the required taxonomy for their annual financial reports. Management Reporting.
The key driver for ESEF is greater transparency and requires standardized reporting, consistently structured and accessible for stakeholders, thus we believe making it an ideal fit for Workiva . More than 4,000 European issuers are subject to the required taxonomy for their annual financial reports. Management Reporting.
We focus on customer engagement to envision the future of our platform to bring about new capabilities and versions of existing solutions to market quickly in order to remain competitive in the marketplace. 9 Table of Contents Customers Thousands of organizations, including global enterprises with hundreds of thousands of employees, trust Workiva.
We focus on customer engagement to envision the future of our platform to bring about new capabilities and versions of existing solutions to market quickly in order to remain competitive in the marketplace. 10 Table of Contents Customers Thousands of organizations, including global enterprises with hundreds of thousands of employees, trust Workiva.
ESEF is an annual financial reporting regulation specified by the European Securities and Markets Authority (“ESMA”). The ESMA mandate requires all specified issuers on European Union (“E.U.”) regulated markets to file annual account statements in a digital format using iXBRL.
ESEF is an annual financial reporting regulation specified by the European Securities and Markets Authority (“ESMA”). The ESMA mandate requires all specified issuers on European Union (“E.U.”) & United Kingdom regulated markets to file annual account statements in a digital format using iXBRL.
Customers can use the ESG Explorer to review and compare guidelines from multiple frameworks and standards, including Global Reporting Initiative (“GRI”) Standards, Sustainability Accounting Standards Board (“SASB”), Task Force on Climate-related Financial Disclosures (“TCFD”), and the United Nations Sustainable Development Goals (“UNSDGs”).
Customers can use the ESG Explorer to review and compare guidelines from multiple frameworks and standards, including Global Reporting Initiative (“GRI”) Standards, Sustainability Accounting Standards Board (“SASB”), Task Force on Climate-related Financial Disclosures (“TCFD”), and the United Nations Sustainable Development Goals (“SDGs”).
The Workiva Marketplace enables organizations to streamline existing processes and solve new business problems by activating more than 215 ready-made templates, 70+ no-code data connectors, and services from industry experts and trusted partners — all within the Workiva platform’s connected and secure ecosystem. Its offerings include process checklists, carefully organized and linked reports, style guides, perfectly formatted presentations, and more.
The Workiva Marketplace enables organizations to streamline existing processes and solve new business problems by activating more than 200 ready-made templates and no-code data connectors, and services from industry experts and trusted partners — all within the Workiva platform’s connected and secure ecosystem. Its offerings include process checklists, carefully organized and linked reports, style guides, perfectly formatted presentations, and more.
This reduces human error and increases data reliability during financial statement consolidation. Workiva also enables speed through automation which reduces the time-consuming, stressful process of gathering financial data, freeing your time for telling your financial story. European Single Electronic Format (“ESEF”). We believe ESEF is an accelerator for modernization of corporate reporting in Europe.
This reduces human error and increases data reliability during financial statement consolidation. Workiva also enables speed through automation which reduces the time-consuming, stressful process of gathering financial data, freeing your time for telling your financial story. 7 Table of Contents European Single Electronic Format (“ESEF”). We believe ESEF is an accelerator for modernization of corporate reporting in Europe.
Customers can identify and organize the topics that are material to their organization, create automated processes to collect, review, and maintain metrics from systems of records and other data providers, and connect metrics to reports, presentations, and surveys, including submitting responses to CDP (formerly Carbon Disclosure Project). Governance, Risk, and Compliance Controls Management.
Customers can identify and organize the topics that are material to their organization, create automated processes to collect, review, and maintain metrics from systems of records and other data providers, and connect metrics to reports, presentations, and surveys, including submitting responses to CDP (formerly Carbon Disclosure Project). 8 Table of Contents Governance, Risk, and Compliance Controls Management.
We believe growth outside of North America presents an attractive opportunity because the factors that drive demand for our solutions in North America are similar to those in other developed countries, including the need to manage complex datasets, reduce errors and risk, improve efficiency and respond to regulatory requirements.
We believe growth outside of North America presents an attractive opportunity because the factors that drive demand for our solutions in North America are similar to those 4 Table of Contents in other developed countries, including the need to manage complex datasets, reduce errors and risk, improve efficiency and respond to regulatory requirements.
Around the time they go public, many of these customers may then purchase our SEC solution, which enables companies to prepare and file all major SEC reports, and expand the use of our platform to support their audit requirements under the Sarbanes-Oxley Act (“SOX”). Annual & Interim Reporting.
Securities and Exchange Commission. Around the time they go public, many of these customers may then purchase our SEC solution, which enables companies to prepare and file all major SEC reports, and expand the use of our platform to support their audit requirements under the Sarbanes-Oxley Act (“SOX”). Annual & Interim Reporting.
Our primary competitors include: • Status quo, manual business processes that rely on legacy software productivity tools; • Diversified enterprise software providers; • Niche software providers that provide point solutions; • Providers of professional services, including consultants and financial printers; • Governance, risk, and compliance software providers; and • Business intelligence / performance management software providers.
Our primary competitors include: • Status quo, manual business processes that rely on legacy software productivity tools; • Diversified enterprise software providers; • Niche software providers that provide point solutions; • Providers of professional services, including consultants and financial printers; • ESG Reporting and data management software providers; • Governance, risk, and compliance software providers; and • Business intelligence / performance management software providers.
We also sell a solution for ERM to help enterprises identify systemic risks, determine risk probabilities, assess risk magnitude, plan strategic responses, report to boards and other stakeholders and ultimately make real-time ERM decisions. 8 Table of Contents Policy and Procedure Management. Our customers can use our platform to establish a connected, enterprise-wide policy and procedure management process.
We also sell a solution for ERM to help enterprises identify systemic risks, determine risk probabilities, assess risk magnitude, plan strategic responses, report to boards and other stakeholders and ultimately make real-time ERM decisions. Policy and Procedure Management. Our customers can use our platform to establish a connected, enterprise-wide policy and procedure management process.
Our platform allows customers to connect data from ERP, HCM and CRM systems, as well as other third-party cloud and on-premise applications with complete control, context, and clarity. Workiva's drag-and-drop data transformation and preparation capabilities deliver previews and provide insights on the fly.
Our platform allows customers to connect data from multiple ERP, HCM and CRM systems, as well as other third-party cloud and on-premise applications with complete control, context, and clarity. Workiva's drag-and-drop data transformation and preparation capabilities deliver previews and provide insights instantaneously.
The SEC also maintains a website that contains our SEC filings. The address of the site is www.sec.gov. 15 Table of Contents
The SEC also maintains a website that contains our SEC filings. The address of the site is www.sec.gov. 16 Table of Contents
It requires the ingestion, capture, management, and reporting of financial and non-financial data from many disparate sources, and it requires the collaboration of multiple internal stakeholders. 3 Table of Contents Growth Vectors We are focusing our investment on four major growth opportunities: The Workiva Platform, Fit-for-Purpose Solutions, Global Expansion, and our Partner Ecosystem. The Workiva Platform.
It requires the ingestion, capture, management, and reporting of financial and non-financial data from many disparate sources, and it requires the collaboration of multiple internal stakeholders across finance, risk management, and sustainability teams. 3 Table of Contents Growth Vectors We are focusing our investment on four major growth opportunities: The Workiva Platform, Fit-for-Purpose Solutions, Global Expansion, and our Partner Ecosystem.
Our over 200 advisory, technology, and service partners offer a wider range of domain and functional expertise that broadens our platform’s capabilities and promotes Workiva as part of the digital transformation projects they drive for their customers. Workiva Platform The Workiva platform is single instance, multi-tenant software deployed in the cloud.
Our over 200 advisory, technology, and service partners offer a wider range of domain and functional expertise that broadens our platform’s capabilities and promotes Workiva as part of the digital transformation projects they drive for their customers. Workiva Platform The Workiva platform is multi-tenant cloud software deployed in multiple regions worldwide.
We have invested more than $780 million over the last decade to create a differentiated technology platform for our customers. We expect that we will continue to make strategic investments in research and development to broaden our platform capabilities, strengthen our existing solutions, enhance our user experience, and develop new solutions.
We have invested more than $920 million over the last decade to create a differentiated technology platform for our customers. We expect that we will continue to make strategic investments in research and development to broaden our platform capabilities, strengthen our existing solutions, enhance our user experience and ecosystem with integrations, and develop new solutions.
Our platform, built on Amazon Web Services and Google Cloud Platform, is composed of both proprietary and open-source technologies. We believe the following characteristics highlight our platform’s key competitive advantages: Features and Functionality .
Our platform, built primarily on Amazon Web Services (“AWS”), is composed of both proprietary and open-source technologies. We believe the following characteristics highlight our platform’s key competitive advantages: Features and Functionality .
Item 1. Business Overview Workiva’s mission is to power transparent reporting for a better world. We believe that consumers, employees, shareholders, and other stakeholders today expect more from business – more action, transparency, and disclosure of financial and non-financial information.
Item 1. Business Overview Workiva’s mission is to power transparent reporting for a better world. We believe that all stakeholders including consumers, employees, shareholders, and regulators expect more from business – more action, transparency, and disclosure of financial and non-financial information.
People all over the world use our connected, cloud platform to seamlessly enable collaboration and deep integration into existing work streams to simplify their most complex reporting challenges. We offer the only holistic, unified software-as-a-service (“SaaS”) platform that brings customers’ financial reporting, ESG, and GRC together in a controlled, secure, audit-ready platform.
The Workiva Platform. People all over the world use our connected, cloud platform to seamlessly enable collaboration and deep integration into existing work streams to simplify their most complex reporting challenges. We offer the only unified SaaS platform that brings customers’ financial reporting, ESG, and GRC together in a controlled, secure, audit-ready platform.
Workiva’s GRC solution suite enables and excels at identifying, tracking, and managing risk so that customers can operate legally, ethically, and in compliance with regulations. In September 2021, Workiva was named a leader among GRC platforms by independent research firm, Forrester Research. We will continue to leverage our GRC leadership to grow our business. Global Expansion.
Workiva’s GRC solution suite enables and excels at identifying, tracking, and managing risk so that customers can operate legally, ethically, and in compliance with regulations. In December 2023, Workiva was named as a strong performer among GRC platforms by independent research firm, Forrester Research. We will continue to leverage our GRC leadership to grow our business. Global Expansion.
In addition to our regular customer security assessments, we engage in continuous and ongoing penetration and vulnerability testing (manual and automatic, internal and third-party) and adhere to standards established by third parties such as Federal Risk and Authorization Management Program (“FedRAMP”) and ISO 27001.
We employ stringent data security, reliability, integrity and privacy practices. In addition to our regular customer security assessments, we engage in continuous and ongoing penetration and vulnerability testing (manual and automatic, internal and third-party) and adhere to standards established by third parties such as Federal Risk and Authorization Management Program (“FedRAMP”) and ISO 27001.
Foreign Private Issuers can use our platform to include XBRL tagging in their 20-F and 40-F filings with the SEC. Workiva also enables customers to create earnings press releases, earnings call scripts, presentations and other investor relations materials with data linked to the corresponding filing.
Foreign Private Issuers can use our platform to include XBRL tagging in their 20-F and 40-F filings with the SEC. Workiva also enables customers to create earnings press releases, earnings call scripts, presentations and other investor relations materials with data linked to the corresponding filing. Canadian issuers can use our platform to draft and submit reports through SEDAR. Capital Markets.
Risk Factors for further information. 13 Table of Contents Corporate ESG Commitments We believe society expects more from the business community: authenticity, trust, truth, and transparency. These expectations lie at the heart of what Workiva does for customers and ourselves.
Risk Factors for further information. Corporate ESG Commitments We are committed to transparency in ESG. We believe society expects more from the business community: authenticity, trust, truth, and transparency. These expectations lie at the heart of what Workiva does for customers and ourselves.
Customers include 88% of the top 100 public and private companies that report annual revenue figures to a government agency, as well as 85% of the top 500 companies, and 80% of the top 1,000 companies. As of December 31, 2022, we had more than 5,600 customers.
Customers include over 90% of the top 100 public and private companies that report annual revenue figures to a government agency, as well as over 85% of the top 500 companies, and over 80% of the top 1,000 companies. As of December 31, 2023, we had more than 6,000 customers.
Current key initiatives include Business Employee Resource Groups (“BERG”), learning and development and talent acquisition. The Company maintains its BERG chapters globally across seven communities: Asian, Black, Disabilities, Hispanic & Latino, LGBTQ+, Veterans, and Women.
Current key initiatives include Business Employee Resource Groups (“BERG”), learning and development and talent acquisition. The Company maintains its BERG chapters globally across seven communities: Asian, Black, Disabilities, Hispanic & Latino, LGBTQ+, Veterans, and Women. Each BERG is sponsored and supported by senior leaders across the enterprise.
As of December 31, 2022, women represented 40% of our global workforce and 34% of our leadership (director and above). As of December 31, 2022, 20% of our U.S. employees and 15% of our U.S. leadership (director and above) were from underrepresented racial/ethnic groups. Increasing diversity in our workforce and key operational leadership roles will remain an organizational priority.
As of December 31, 2023, women represented 41% of our global workforce and 34% of our leadership (director and above). As of December 31, 2023, 20% of our U.S. employees and 16% of our U.S. leadership (director and above) were from underrepresented racial/ethnic groups. Increasing diversity in our workforce and key operational leadership roles is an organizational priority.
We focus on innovating and developing new solutions and furthering the openness and extensibility of our platform. We believe that delivering new functionality for our customers is an integral part of our product strategy and provides our customers with access to a broad array of options and information critical to enhancing their reporting, disclosure and digital transformation efforts.
We believe that delivering new functionality for our customers is an integral part of our product strategy and provides our customers with access to a broad array of options and information critical to enhancing their reporting, disclosure and digital transformation efforts.
Our customers are passionate, loyal supporters of our solutions, as demonstrated by our subscription and support revenue retention rate of 97.8% as of the December 2022 measurement date. Our subscription and support revenue retention rate including add-on solutions was 108.5% as of December 31, 2022.
Our customers are passionate, loyal supporters of our solutions, as demonstrated by our subscription and support revenue retention rate of 97.9% as of the December 2023 measurement date. Our subscription and support revenue retention rate including add-on solutions was 110.3% as of December 31, 2023.
To safeguard these rights, we rely on a combination of patent, trademark, copyright and trade secret laws and contractual protections in the United States and other jurisdictions. As of December 31, 2022, we had 68 issued patents and 16 patent applications pending relating to our platform.
To safeguard these rights, we rely on a combination of patent, trademark, copyright and trade secret laws and contractual protections in the U.S. and other jurisdictions. As of December 31, 2023, we had 76 issued patents and 17 patent applications pending relating to our platform or related technology.
The Workiva platform empowers customers by connecting and transforming data from hundreds of enterprise resource planning (“ERP”), human capital management (“HCM”), and customer relationship management (“CRM”) systems, as well as other third-party cloud and on-premise applications. Customers use our platform to create, review and publish data-linked documents and reports with greater control, consistency, accuracy, and productivity.
From data to disclosure, the Workiva platform empowers customers by connecting and transforming data from hundreds of enterprise resource planning (“ERP”), human capital management (“HCM”), and customer relationship management (“CRM”) systems, as well as other third-party cloud and on-premise applications.
While our customers use our platform for more than 100 different use cases, we organize our sales and marketing resources into four purpose-built solution groups focusing primarily on the office of the Chief Financial Officer (“CFO”): financial reporting, ESG, GRC, and industry verticals.
While our customers use our platform for more than 100 different use cases, across dozens of vertical industries, we organize our sales and marketing resources into three purpose-built solution groups (Financial Reporting, ESG, and GRC) focusing primarily on the offices of the Chief Financial Officer (“CFO”), Chief Sustainability Officer (“CSO”), and Chief Audit Executive (“CAE”).
Canadian issuers can use our platform to draft and submit reports through SEDAR. 6 Table of Contents Capital Markets. Workiva offers an end-to-end technology platform supporting our customers throughout their journey as they move from being a privately held company to being publicly traded. We believe that our platform approach and fit-for-purpose solutions provide a competitive differentiation in the market.
Workiva offers an end-to-end technology platform supporting our customers throughout their journey as they move from being a privately held company to being publicly traded. We believe that our platform approach and fit-for-purpose solutions provide a competitive differentiation in the market. Private companies can purchase the Workiva platform for financial reporting, management reporting and controls management.
Our platform also helps organizations proactively confront a complex and rapidly changing regulatory landscape to create integrated and assured reports that will address the disclosure requirements of the Corporate Sustainability Reporting Directive (“CSRD”) in the E.U. and the proposed SEC climate disclosure rule in the U.S. 7 Table of Contents Our platform streamlines the ESG reporting process end-to-end, from data collection and management to final report.
Our platform also helps organizations proactively confront a complex and rapidly changing regulatory landscape to create integrated and assured reports that will address the disclosure requirements of the Corporate Sustainability Reporting Directive (“CSRD”) in the E.U., California’s Climate Corporate Data Accountability Act (SB-253) and Climate-Related Financial Risk Act (SB-261), and the proposed SEC climate disclosure rule in the U.S.
Accounting, sustainability, audit, financial planning and analysis, financial services, and legal teams can easily add templates or connectors directly into an existing Workiva workspace and optimize workflow with process automation, practical examples, and industry best practices. Fit-for-Purpose Solutions We market and sell over 30 fit-for-purpose solutions that are categorized into four reporting groups: Financial Reporting; ESG; GRC; and Industry Verticals.
Accounting, sustainability, audit, financial planning and analysis, financial services, and legal teams can easily add templates or connectors directly into an existing Workiva workspace and optimize workflow with process automation, practical examples, and industry best practices.
For the fiscal year ended December 31, 2022, employee compensation and benefits accounted for approximately 80% of our total operating expense. Corporate Information Workiva Inc. is a Delaware corporation with principal executive offices located at 2900 University Boulevard, Ames, Iowa 50010. Our telephone number is (888) 275-3125 and our website address is www.workiva.com.
Corporate Information Workiva Inc. is a Delaware corporation with principal executive offices located at 2900 University Boulevard, Ames, Iowa 50010. Our telephone number is (888) 275-3125 and our website address is www.workiva.com.
As these companies go through the IPO process, they then have the opportunity to use the capital markets solution on our platform to manage the creation of their Form S-1 to register their securities with the U.S. Securities and Exchange Commission.
They may do this up to a year or two in advance of their target initial public offering (“IPO”) date. As these companies go through the IPO process, they then have the opportunity to use the capital markets solution on our platform to manage the creation of their Form S-1 to register their securities with the U.S.
Workiva provides connected reporting solutions that improve data accuracy for energy and utilities companies across state commission filings, utility rate making documents, SEC filings, financial and performance reports, and SOX documentation. We market our platform to help companies comply with the Federal Energy Regulatory Commission (“FERC”) XBRL mandate.
With our FedRAMP authorization, we can help federal agencies connect, control and report up to 80 percent of their information types. Energy & Utility Sector. Workiva provides connected reporting solutions that improve data accuracy for energy and utilities companies across state commission filings, utility rate making documents, SEC filings, financial and performance reports, and SOX documentation.
Customers can also distribute and track employee attestation of policies and procedures with automated certification reminders and progress dashboards. Industry Verticals Financial Services. We market our platform to address regulatory compliance risk and enterprise risk at banks, insurance companies and other financial services companies.
Customers can also distribute and track employee attestation of policies and procedures with automated certification reminders and progress dashboards. 9 Table of Contents Industry Verticals Financial Services. We market our platform globally to banks, insurance and investment firms with fit-for-purpose solutions to simplify the complexity of regulatory, financial, risk and ESG reporting.
The coveted AAA rating represents MSCI’s highest rating and signifies industry-leader status in managing the most significant ESG risks and opportunities. • During 2022, we added 5 new innovation patents, bringing our total to 68. 2 Table of Contents Macro Trends Six macro trends have been driving demand for Workiva's platform: the shift to the cloud; digital transformation; remote and hybrid work; influx of disparate data sources; increased regulatory environment; and increased stakeholder demands for ESG data.
The hybrid event attracted over 600 customers and prospects and was our largest ever in-person event in Europe. • During 2023, we added 8 new innovation patents, bringing our total to 76. 2 Table of Contents Macro Trends Six macro trends have been driving demand for Workiva's platform: the shift to the cloud; digital transformation; remote and hybrid work; influx of disparate data sources; increased regulatory environment; and increased stakeholder demands for ESG data.
We believe that our ecosystem of partners extends our geographic reach, accelerates the usage and adoption of our platform, and enables more efficient delivery of professional services. We intend to expand and deepen our relationships with global and regional partners, including global consulting firms, systems integrators, large and mid-sized independent software vendors and implementation partners.
We intend to expand and deepen our relationships with global and regional partners, including global consulting firms, systems integrators, large and mid-sized independent software vendors and implementation partners.
Each BERG is sponsored and supported by senior leaders across the enterprise. 14 Table of Contents The health and safety of our colleagues and anyone who enters our workplace around the world is of paramount importance to Workiva. Workiva offers mental health benefits and offers extra paid mental wellness days to all employees worldwide.
The health and safety of our colleagues and anyone who enters our workplace around the world is of paramount importance to Workiva. Workiva offers mental health benefits and offers extra paid mental wellness days to all employees worldwide. None of our U.S. employees are represented by a labor organization or are a party to any collective bargaining arrangement.
Litigation From time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business.
In addition, we intend to expand our international operations, and we cannot assure you that these names will be available for use in all such jurisdictions. Litigation From time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business.
By staying true to our company values, we have become a stronger and even more innovative team. As of December 31, 2022, Workiva employed 2,447 full-time people worldwide. Our headcount as of December 31, 2022 increased 16.2% from 2,106 full-time employees as of December 31, 2021. Innovation thrives when people feel welcomed, valued, respected, and heard.
As of December 31, 2023, Workiva employed 2,526 full-time people worldwide. Our headcount as of December 31, 2023 increased 3.2% from 2,447 full-time employees as of December 31, 2022. 15 Table of Contents Innovation thrives when people feel welcomed, valued, respected, and heard.
We have been on the Fortune 100 Best Companies to Work For® list since 2019 and attribute our success to our values-based culture. Our employee engagement rate is 93% and we have an employee attrition rate of 19% which is lower than the industry average. Workiva offers market-competitive compensation and benefits to attract and retain the best employees.
Our employee engagement rate is 93% and we have an employee attrition rate of 11% which is lower than the industry average. Workiva offers market-competitive compensation and benefits to attract and retain the best employees. By staying true to our company values, we have become a stronger and even more innovative team.
Workiva is focused on growing our business through selling multi-solution deals and account expansions. Two solution groups that are part of this growth strategy are ESG and GRC: • Environmental, Social, Governance Reporting. ESG represents a generational opportunity for growth and we plan to continue to accelerate our investments to meet stakeholders’ growing need for ESG information.
Workiva is focused on growing our business through selling multi-solution deals and account expansions. Three solution groups that are part of this growth strategy are Financial Reporting, ESG, and GRC: • Financial Reporting is our longest-tenured group of solutions and continues to represent a significant global opportunity for Workiva among private and public companies.
Our platform is flexible and scalable, so customers can easily adapt it to define, automate, and change their business processes in real time. Workiva provides more than 4,700 organizations across the globe with SaaS platform solutions to help solve some of the most complex reporting and disclosure challenges.
Workiva provides more than 6,000 organizations across the globe with SaaS platform solutions to help solve some of the most complex reporting and disclosure challenges.
The Workiva platform is designed to support millions of end users as a result of its scalability and our relationship with Amazon Web Services and Google Cloud Platform. A number of our customers have reported millions of links to single sources of data, among multiple documents, spreadsheets and presentations, without any discernible negative effects on performance. Secure.
The Workiva platform is designed to support millions of end users as a result of its scalability and our relationship with AWS. Our customers have created billions of links to seamlessly achieve a single source of data, among multiple documents, spreadsheets and presentations. Secure. Many of the largest enterprises in the world trust us with their most sensitive data.
More than 200 utility, natural gas, oil pipeline and centralized service companies are required to file quarterly and annual reports using XBRL. Research and Development Our research and development organization is responsible for the design, development, testing, and validation of our platform and fit-for-purpose solutions.
We market our platform to help companies comply with the Federal Energy Regulatory Commission (“FERC”) XBRL mandate. More than 200 utility, natural gas, oil pipeline and centralized service companies are required to file quarterly and annual reports using XBRL.
We also engage third-party auditors to evaluate our controls against the service organization controls (“SOC”) compliance frameworks. Marketplace.
We also engage third-party auditors to evaluate our controls against the service organization controls (“SOC”) compliance frameworks. Generative AI. Our Gen-AI capabilities enhance the way finance, risk, and sustainability teams work, improving content creation, editing, and collaboration.
In 2022, we generated approximately 11% of our consolidated revenue from EMEA and the Asia-Pacific region (“APAC”), and we expect these global markets to contribute an increasing percentage of total revenue. 4 Table of Contents Partner Ecosystem.
In 2023, we generated approximately 15% of our consolidated revenue from EMEA and APAC, and we expect these global markets to contribute an increasing percentage of total revenue. Partner Ecosystem. We believe that our ecosystem of partners extends our geographic reach, accelerates the usage and adoption of our platform, and enables more efficient delivery of professional services.
Workiva’s ESG strategy includes a robust governance structure with oversight by and accountability to the Nomination and Governance Committee of the company’s board of directors.
Workiva’s ESG strategy is anchored by a robust governance structure of internal and external stakeholders, including: • General oversight by and accountability to the Nominating and Governance Committee of the company’s Board of Directors (the “Board”). Our Board committee charters include responsibilities relating to ESG oversight as applicable to each of our Audit, Compensation, and Nominating and Governance committees.
None of our U.S. employees are represented by a labor organization or are a party to any collective bargaining arrangement. We have never experienced a strike or similar work stoppage, and we consider our relations with our employees to be good.
We have never experienced a strike or similar work stoppage, and we consider our relations with our employees to be good. For the fiscal year ended December 31, 2023, employee compensation and benefits accounted for approximately 81% of our total operating expense.
Workiva also serves approximately 900 customers with non-platform, XBRL-tagging services, primarily through ParsePort, an XBRL conversion software company Workiva acquired in 2022 We have experienced strong revenue growth since we released our first solution in March 2010. Our revenue increased from $351.6 million in 2020 to $537.9 million in 2022, representing a 24% compound annual growth rate.
We have experienced strong revenue growth since we released our first solution in March 2010. Our revenue increased from $443.3 million in 2021 to $630.0 million in 2023, representing a 19% compound annual growth rate. We incurred net losses of $37.7 million in 2021, $90.9 million in 2022 and $127.5 million in 2023.
To learn more about Workiva’s ESG efforts, track our progress in developing forward-looking commitments and key performance indicators, go to https://www.workiva.com/about/our-sustainability. Human Capital Workiva is a great place to work and has trusted and equipped our employees to work from wherever and whenever is best for them.
Human Capital Workiva is a great place to work and has trusted and equipped our employees to work from wherever and whenever is best for them. We have been on the Fortune 100 Best Companies to Work For® list since 2019 and attribute our success to our values-based culture.
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We incurred net losses of $48.4 million in 2020, $37.7 million in 2021 and $90.9 million in 2022.
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Customers use our platform to create, review and publish data-linked documents, presentations, and reports with greater control, consistency, accuracy, and productivity. Our platform is flexible and scalable, so customers can easily adapt it to define, automate, and change their business processes in real time.
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Approximately 86% of our revenue in 2022 was derived from subscription and support fees, with the remainder from professional services. 1 Table of Contents 2022 Company Highlights and Milestones • In February 2022, Julie Iskow was promoted to President and Chief Operating Officer. • In the first quarter of 2022, we reorganized our business in Europe, the Middle East and Africa (“EMEA”) to globally align our operations, sales, and marketing functions. • In April 2022, we completed the acquisition of Denmark-based ParsePort, which helped strengthen our position as a leader in transparent reporting by expanding our platform, increasing our capabilities and growing our customer base. • In April 2022, we were named among the 100 Best Companies to Work For by Great Place to Work and Fortune magazine.
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Approximately 89% of our revenue in 2023 was derived from subscription and support fees, with the remainder from professional services. 1 Table of Contents 2023 Company Highlights and Milestones • In April 2023, Julie Iskow, the previous President and Chief Operating Officer, succeeded Marty Vanderploeg as Chief Executive Officer (“CEO”).
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Workiva ranked 20th on the list. • In June 2022, we opened up a sales office in Tokyo, Japan. • In the first half of 2022, Workiva launched ESG Explorer, the tool that gives Workiva customers the ability to browse multiple frameworks and standards to identify the disclosures that matter—or are material—for ESG reporting in one location.
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Vanderploeg transitioned from CEO to the role of Non-Executive Chair of the Board of Directors. • In Q2, we promoted experienced executives into the roles of Chief Technology Officer, Chief Customer Officer, and Chief Marketing Officer. • In April 2023, we were named among the 100 Best Companies to Work For by Fortune magazine and Great Place to Work. • In the first half of 2023, we hired three new sales executives to lead our global sales regions: (i) the Americas, (ii) Europe, Middle East, and Africa (“EMEA”), and (iii) Asia-Pacific (“APAC”). • In the first half of 2023, Workiva launched enhancements to our ESG solution including expanded data collection, integration with the Carbon Disclosure Project (“CDP”), support for additional ESG frameworks and support for the European Sustainability Reporting Standards (“ESRS”). • In August 2023, we released Generative Artificial Intelligence (“Gen-AI”) on the Workiva platform.
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Workiva also launched ESG Hub on workiva.com, which gives customers a one-stop shop for ESG news, ideas, and resources. • In September 2022, we hosted the first hybrid Workiva Amplify conference. Over 7,000 customers and prospects joined us either virtually or in-person. In October 2022, Workiva hosted its first-ever Amplify conference in EMEA.
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Our approach will enable customers to decide which industry-leading large language model, including those from Google Cloud and Microsoft Azure, best fit their needs. • In August 2023, we issued $702 million of 1.250% convertible senior notes due 2028.
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The hybrid event attracted over 800 customers and prospects. • In December 2022, we received a AAA rating in the 2022 MSCI ESG Ratings assessment.
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We used $396.9 million of the net proceeds to repurchase $273.8 million principal amount, together with accrued and unpaid interest thereon, of our 1.125% convertible senior notes due 2026.
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Many of the largest enterprises in the world trust us with their most sensitive data. We employ stringent data security, reliability, integrity and privacy practices.
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We intend to use the balance of proceeds for working capital, general corporate purposes, and strategic investments and acquisitions. • In September 2023, we hosted our hybrid Workiva Amplify conference which included over 5,700 customers, partners and prospects representing over 2,000 companies joining us either virtually or in-person. • In September 2023, we received a rating of AAA in the MSCI ESG Ratings assessment for the second year in a row.
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Private companies can purchase the Workiva platform for financial reporting, management reporting and controls management. They may do this up to a year or two in advance of their target initial public offering (“IPO”) date.
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The coveted AAA rating represents MSCI’s highest rating and signifies industry-leader status in managing the most significant ESG risks and opportunities. • In Q3, we hired three experienced SaaS leaders in the roles of Chief Information Officer, Chief Accounting Officer, and Chief Product Officer. • In November 2023, Workiva hosted its second annual Amplify conference in Europe.
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Examples of regulations facing our customers include the Dodd-Frank Act, Basel III, Capital Requirements Regulation, Capital Requirements Directive, Resolution and Recovery Plans, Comprehensive Capital Analysis and Review, and Dodd-Frank Stress Testing. We also help investment management companies streamline industry-specific compliance and capital markets transactions.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeRisks Related to Technology and Intellectual Property • If we or our service providers fail to keep our customers’ information confidential or otherwise handle their information improperly, our business and reputation could be adversely affected. • The success of our cloud-based software largely depends on our ability to provide reliable solutions to our customers. • Any failure to offer high-quality technical support services may adversely affect our relationships with our customers. • Failure to establish and maintain partnerships that can provide complementary technology offerings and software integrations could limit our ability to grow our business. • If we do not keep pace with technological changes, our solutions may become less competitive. • If we fail to manage our technical operations infrastructure, our existing customers may experience service outages, and our new customers may experience delays in the deployment of our solutions. • The inability to maintain software licenses, or the existence of errors in the software we license could result in increased costs or reduced service levels. • Any failure or interruptions in the internet infrastructure, bandwidth providers, data center providers, other third parties or our own systems could negatively impact our business. • Changes in laws and regulations related to the internet or changes in the internet infrastructure itself may diminish the demand for our solutions. • We are subject to U.S. and foreign data privacy and protection laws and regulations as well as contractual privacy obligations. • Any failure to protect our intellectual property rights or defend against accusations of infringement of third-party intellectual property rights could impair our ability to protect our proprietary technology and our brand. • Some of our solutions utilize open source software, and any failure to comply with the terms of one or more of these open source licenses could negatively affect our business. 17 Table of Contents Risks Related to Taxes • The adoption of new tax legislation could adversely affect our business and financial condition. • Determining our income tax rate is complex and subject to uncertainty. • Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.
Biggest changeRisks Related to Technology and Intellectual Property • We face continually evolving cybersecurity risks, which could result in the loss, theft, misuse, unauthorized disclosure, access, or destruction of confidential information or data, disruption of our solutions, damage to our brands, reputation and relationships with customers, legal exposure and financial losses. • The success of our cloud-based software largely depends on our ability to provide reliable solutions to our customers. • Any failure to offer high-quality technical support services may adversely affect our relationships with our customers. • Failure to establish and maintain partnerships that can provide complementary technology offerings and software integrations could limit our ability to grow our business. • If we do not keep pace with technological changes, our solutions may become less competitive. • Issues relating to the development of AI, machine learning and other technological capabilities in our solutions and offerings may result in reputational harm, liability and adverse financial results. • If we fail to manage our technical operations infrastructure, our existing customers may experience service outages, and our new customers may experience delays in the deployment of our solutions. • The inability to maintain software licenses, or the existence of errors in the software we license could result in increased costs or reduced service levels. • Any failure or interruptions in the internet infrastructure, bandwidth providers, data center providers, other third parties or our own systems could negatively impact our business. • Changes in laws and regulations related to technology, the internet or changes in the internet infrastructure itself may diminish the demand for our solutions. • We are subject to U.S. and foreign data privacy and protection laws and regulations as well as contractual privacy obligations. • Any failure to protect our intellectual property rights or defend against accusations of infringement of third-party intellectual property rights could impair our ability to protect our proprietary technology and our brand. • Some of our solutions utilize open source software, and any failure to comply with the terms of one or more of these open source licenses could negatively affect our business. 18 Table of Contents Risks Related to Taxes • The adoption of new tax legislation could adversely affect our business and financial condition. • Determining our income tax rate is complex and subject to uncertainty. • Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.
The holders of Class B common stock may also have interests that differ from those of Class A common stock holders and may vote in a way that may be adverse to the interests of holders of Class A common stock. 36 Table of Contents Anti-takeover provisions in our charter documents, our convertible senior notes and Delaware law could make an acquisition of us more difficult, limit attempts by our stockholders to replace or remove our current management and may negatively affect the market price of our Class A common stock.
The holders of Class B common stock may also have interests that differ from those of Class A common stock holders and may vote in a way that may be adverse to the interests of holders of Class A common stock. 38 Table of Contents Anti-takeover provisions in our charter documents, our convertible senior notes and Delaware law could make an acquisition of us more difficult, limit attempts by our stockholders to replace or remove our current management and may negatively affect the market price of our Class A common stock.
Failure to effectively manage growth could result in difficulty or delays in deploying customers, declines in quality or customer satisfaction, increases in costs, difficulties in introducing new features or other operational difficulties, and any of these difficulties could adversely impact our business performance and results of operations. 19 Table of Contents Our revenue growth rate in recent periods may not be indicative of our future performance.
Failure to effectively manage growth could result in difficulty or delays in deploying customers, declines in quality or customer satisfaction, increases in costs, difficulties in introducing new features or other operational difficulties, and any of these difficulties could adversely impact our business performance and results of operations. 20 Table of Contents Our revenue growth rate in recent periods may not be indicative of our future performance.
In addition, many companies have chosen to invest in their own internal reporting solutions and therefore may be reluctant to switch to solutions such as ours. 20 Table of Contents We compete with many types of companies, including diversified enterprise software providers; providers of professional services, such as consultants and business and financial printers; governance, risk and compliance software providers; business intelligence/corporate performance management software providers; and business reporting software providers.
In addition, many companies have chosen to invest in their own internal reporting solutions and therefore may be reluctant to switch to solutions such as ours. 21 Table of Contents We compete with many types of companies, including diversified enterprise software providers; providers of professional services, such as consultants and business and financial printers; governance, risk and compliance software providers; business intelligence/corporate performance management software providers; and business reporting software providers.
Consequently, stockholders must rely on sales of their Class A common stock after price appreciation as the only way to realize any future gains on their investment. 37 Table of Contents Risks Related to Our Indebtedness The conditional conversion feature of our convertible senior notes may adversely affect our financial condition and operating results.
Consequently, stockholders must rely on sales of their Class A common stock after price appreciation as the only way to realize any future gains on their investment. 39 Table of Contents Risks Related to Our Indebtedness The conditional conversion feature of our convertible senior notes may adversely affect our financial condition and operating results.
For these reasons, we may not be able to realize a tax benefit from the use of our NOLs, whether or not we attain profitability. 35 Table of Contents Risks Related to Ownership of Our Securities Our stock price has been and will likely continue to be volatile or may decline regardless of our operating performance.
For these reasons, we may not be able to realize a tax benefit from the use of our NOLs, whether or not we attain profitability. 37 Table of Contents Risks Related to Ownership of Our Securities Our stock price has been and will likely continue to be volatile or may decline regardless of our operating performance.
In addition, new or emerging technologies and technological trends or changes in customer requirements may result in certain third parties de-emphasizing their dealings with us or becoming potential competitors in the future. 21 Table of Contents Adverse economic conditions or reduced technology spending may adversely impact our business.
In addition, new or emerging technologies and technological trends or changes in customer requirements may result in certain third parties de-emphasizing their dealings with us or becoming potential competitors in the future. 22 Table of Contents Adverse economic conditions or reduced technology spending may adversely impact our business.
Additionally, as our employees continue to work remotely from geographic locations across the U.S. and internationally, we may become subject to additional taxes and our compliance burdens with respect to the tax laws of additional jurisdictions may be increased. 34 Table of Contents Determining our income tax rate is complex and subject to uncertainty.
Additionally, as our employees continue to work remotely from geographic locations across the U.S. and internationally, we may become subject to additional taxes and our compliance burdens with respect to the tax laws of additional jurisdictions may be increased. 36 Table of Contents Determining our income tax rate is complex and subject to uncertainty.
Any factor adversely affecting sales of our platform or solutions, including release cycles, market acceptance, competition, performance and reliability, reputation and regulatory, economic and market conditions, could adversely affect our business and operating results. 18 Table of Contents We cannot accurately predict subscription renewal or upgrade rates.
Any factor adversely affecting sales of our platform or solutions, including release cycles, market acceptance, competition, performance and reliability, reputation and regulatory, economic and market conditions, could adversely affect our business and operating results. 19 Table of Contents We cannot accurately predict subscription renewal or upgrade rates.
Labor is our primary operating expense. We may face labor shortages or increased labor costs because of increased competition for employees, higher employee turnover rates, or increases in employee benefit costs. If labor-related expenses increase, our operating expense could increase, which would adversely affect our business, financial condition and results of operations.
We may face labor shortages or increased labor costs because of increased competition for employees, higher employee turnover rates, or increases in employee benefit costs. If labor-related expenses increase, our operating expense could increase, which would adversely affect our business, financial condition and results of operations.
Any failure of our solutions to keep pace with technological changes or operate effectively with future network platforms and technologies 29 Table of Contents could reduce the demand for our solutions, result in customer dissatisfaction and adversely affect our business.
Any failure of our solutions to keep pace with technological changes or operate effectively with 30 Table of Contents future network platforms and technologies could reduce the demand for our solutions, result in customer dissatisfaction and adversely affect our business.
Any failure to secure, protect and enforce our intellectual property rights could seriously adversely affect our brand and adversely impact our business. 33 Table of Contents In addition, our success depends upon our ability to refrain from infringing upon the intellectual property rights of others.
Any failure to secure, protect and enforce our intellectual property rights could seriously adversely affect our brand and adversely impact our business. 35 Table of Contents In addition, our success depends upon our ability to refrain from infringing upon the intellectual property rights of others.
Our business may not continue to generate cash flow from operations in the future sufficient to service our debt and make necessary capital expenditures. 38 Table of Contents Item 1B. Unresolved Staff Comments None.
Our business may not continue to generate cash flow from operations in the future sufficient to service our debt and make necessary capital expenditures. 40 Table of Contents Item 1B. Unresolved Staff Comments None.
Similar lawsuits may be threatened or instituted against us from time to time, and we may incur substantial damages and expenses resulting from lawsuits of this type, which could have a material adverse effect on our business, financial condition or results of operations. 23 Table of Contents Operations outside the United States expose us to risks inherent in international sales.
Similar lawsuits may be threatened or instituted against us from time to time, and we may incur substantial damages and expenses resulting from lawsuits of this type, which could have a material adverse effect on our business, financial condition or results of operations. Operations outside the United States expose us to risks inherent in international sales.
In addition, we face risks in doing business internationally that could adversely affect our business, including: • the need to localize and adapt our solutions for specific countries, including translation into foreign languages and associated expenses; • increased management, travel, infrastructure, legal compliance and regulation costs associated with having multiple international operations; • sales and customer service challenges associated with operating in different countries; • data privacy laws that require customer data to be stored and processed in a designated territory; • inadequate local infrastructure and difficulties in staffing and managing foreign operations; • different pricing environments and longer sales and collection cycles; • new and different sources of competition; • difficulties in enforcing intellectual property and other rights outside of the United States; • laws and business practices favoring local competitors; • compliance challenges related to the complexity of multiple, conflicting and changing governmental laws and regulations; • increased financial accounting and reporting burdens and complexities; • restrictions on the transfer of funds; • an uncertain trade environment; • adverse tax consequences; • unstable regional economic and political conditions, including political unrest and armed conflicts (such as the Russia and Ukraine conflict); • liquidity issues, including due to political actions by sovereign nations with a controlled currency environment, which could result in decreased values of cash balances or potential difficulties protecting our foreign assets or satisfying local obligations; • difficulties in obtaining export licenses for certain technology, tariffs, quotas and other trade barriers; • issues resulting from operations in locations with a higher incidence of corruption and fraudulent business practices; 24 Table of Contents • challenges in integrating acquisitions with foreign operations; and • natural disasters, acts of war, terrorism, security breaches, pandemics or other health crises, including the ongoing COVID-19 pandemic.
In addition, we face risks in doing business internationally that could adversely affect our business, including: • the need to localize and adapt our solutions for specific countries, including translation into foreign languages and associated expenses; • increased management, travel, infrastructure, legal compliance and regulation costs associated with having multiple international operations; • sales and customer service challenges associated with operating in different countries; • data privacy laws that require customer data to be stored and processed in a designated territory; • inadequate local infrastructure and difficulties in staffing and managing foreign operations, including compliance with local labor and employment laws and regulations; • different pricing environments and longer sales and collection cycles; • new and different sources of competition; • difficulties in enforcing intellectual property and other rights outside of the U.S.; • laws and business practices favoring local competitors; • compliance challenges related to the complexity of multiple, conflicting and changing governmental laws and regulations; • increased financial accounting and reporting burdens and complexities; 24 Table of Contents • restrictions on the transfer of funds; • an uncertain trade environment; • adverse tax consequences; • unstable regional economic and political conditions, including political unrest and armed conflicts (such as the Russia and Ukraine conflict and the conflict in the Middle East); • liquidity issues, including due to political actions by sovereign nations with a controlled currency environment, which could result in decreased values of cash balances or potential difficulties protecting our foreign assets or satisfying local obligations; • difficulties in obtaining export licenses for certain technology, tariffs, quotas and other trade barriers; • issues resulting from operations in locations with a higher incidence of corruption and fraudulent business practices; • challenges in integrating acquisitions with foreign operations; and • natural disasters, acts of war, terrorism, security breaches, pandemics or other health crises.
Legislative and regulatory changes could adversely affect our business. The market for our solutions depends in part on the requirements of the SEC, the Federal Reserve System, the Federal Deposit Insurance Corporation and other regulatory bodies.
Legislative and regulatory changes could adversely affect our business. The market for our solutions depends in part on the requirements of the SEC, the Federal Reserve System, the Federal Deposit Insurance Corporation and other domestic and foreign regulatory bodies.
As a result, our failure to maintain effective financial and management systems and internal controls could result in errors in our financial reporting, us being subject to regulatory action and a loss of investor confidence in the reliability of our financial statements. 27 Table of Contents Our relatively limited operating history makes it difficult to predict our future operating results.
As a result, our failure to maintain effective financial and management systems and internal controls could result in errors in our financial reporting, us being subject to regulatory action and a loss of investor confidence in the reliability of our financial statements. Our relatively limited operating history makes it difficult to predict our future operating results.
Dollars, a portion of our sales and operating costs are realized in other currencies, with the largest concentration of foreign sales occurring in Europe . We anticipate that over time, an increasing portion of our international contracts may be denominated in local currencies. Therefore, fluctuations in the value of the U.S.
Dollars, a portion of our sales and operating costs are, and will continue to be, realized in other currencies, with the largest concentration of foreign sales occurring in Europe . We anticipate that over time, an increasing portion of our international contracts may be denominated in local currencies. Therefore, fluctuations in the value of the U.S.
Our ability to deliver our solutions is dependent on the development and maintenance of the internet and other telecommunications services by third parties. Such services include maintenance of a 30 Table of Contents reliable network backbone with the necessary speed, data capacity and security for providing reliable internet access and services and reliable telecommunications systems that connect our operations.
Our ability to deliver our solutions is dependent on the development and maintenance of the internet and other telecommunications services by third parties. Such services include maintenance of a reliable network backbone with the necessary speed, data capacity and security for providing reliable internet access and services and reliable telecommunications systems that connect our operations.
In addition, we have historically experienced seasonal variations in our revenue from professional services as many of our customers employ our professional services just before they file their Form 10-K with the SEC in the first calendar quarter. The majority of our SEC customers report their financials on a calendar year basis.
In addition, we have historically experienced seasonal variations in our revenue from professional services as many of our customers employ our professional services just before they file their Form 10-K with the SEC in the first calendar quarter. A significant percentage of our SEC customers report their financials on a calendar year basis.
We believe that continuing to develop and maintain awareness of our brand is critical to achieving widespread acceptance of our solution and is an important element in attracting and retaining customers.
We believe that continuing to develop and maintain awareness of our brand is critical to achieving widespread acceptance of our solutions and is an important element in attracting and retaining customers.
Risks Related to our Indebtedness • The conditional conversion feature of our convertible senior notes may adversely affect our financial condition and operating results. • Servicing our debt requires a significant amount of cash. Risks Related to Our Business and Industry We derive a majority of our total revenue from customers using our platform for SEC filings.
Risks Related to our Indebtedness • The conditional conversion feature of our convertible senior notes may adversely affect our financial condition and operating results. • Servicing our debt requires a significant amount of cash. Risks Related to Our Business and Industry We derive more than 40% of our total revenue from customers using our platform for SEC filings.
We derive a majority of our total revenue from customers using our platform for SEC filings. We sell a variety of other solutions, including ESG, global statutory reporting, SOX, capital markets, enterprise risk management and audit management, but the introduction of new solutions beyond the SEC market may not be successful.
We derive more than 40% of our total revenue from customers using our platform for SEC filings. We sell a variety of other solutions, including ESG, global statutory reporting, SOX, capital markets, enterprise risk management and audit management, but the introduction of new solutions beyond the SEC market may not be successful.
Risks Related to Our Business and Industry • We derive a majority of our total revenue from customers using our platform for SEC filings. • We cannot accurately predict subscription renewal or upgrade rates. • Failure to manage our growth may adversely affect our business or operations. • Our revenue growth rate in recent periods may not be indicative of our future performance. • We have not been profitable historically and may not achieve or maintain profitability in the future. • Our quarterly results may fluctuate significantly. • Our solutions face intense competition in the marketplace. • Our revenue growth will depend in part on the success of our efforts to augment our direct-sales channels by developing relationships with third parties. • Adverse economic conditions or reduced technology spending may adversely impact our business. • If we cannot maintain our corporate culture as we grow, we could lose the innovation, teamwork, passion and focus on execution that we believe contribute to our success. • We depend on our senior management team and other key employees. • The COVID-19 pandemic has impacted our business, and its ultimate impact on our business and financial results is uncertain. • Our workforce is our primary operating expense and subjects us to risks associated with increases in the cost of labor. • Operations outside the United States expose us to risks inherent in international sales. • A significant fluctuation between the U.S.
Risks Related to Our Business and Industry • We derive more than 40% of our total revenue from customers using our platform for SEC filings. • We cannot accurately predict subscription renewal or upgrade rates. • Failure to manage our growth may adversely affect our business or operations. • Our revenue growth rate in recent periods may not be indicative of our future performance. • We have not been profitable historically and may not achieve or maintain profitability in the future. • Our quarterly results may fluctuate significantly. • Our solutions face intense competition in the marketplace. • Our revenue growth will depend in part on the success of our efforts to augment our direct-sales channels by developing relationships with third parties. • Adverse economic conditions or reduced technology spending may adversely impact our business. • If we cannot maintain our corporate culture as we grow, we could lose the innovation, teamwork, passion and focus on execution that we believe contribute to our success. • We depend on our senior management team and other key employees. • Our workforce is our primary operating expense and subjects us to risks associated with increases in the cost of labor. • Operations outside the United States expose us to risks inherent in international sales. • A significant fluctuation between the U.S.
Dollar and other currencies could adversely impact our operating results. • Geopolitical conflicts, including the conflict between Russia and Ukraine, may adversely affect our business and results of operations. 16 Table of Contents • Fixed-fee engagements with customers may not meet our expectations if we underestimate the cost of these engagements. • If we fail to continue to develop our brand, our business may suffer. • Legislative and regulatory changes could adversely affect our business. • We may need to raise additional capital, which may not be available to us. • We have acquired, and may continue to acquire, other companies or technologies, which could divert our management’s attention, result in additional dilution to our stockholders and otherwise disrupt our operations and adversely affect our operating results. • Because we recognize revenue over the term of each subscription, downturns or upturns in sales may not be immediately reflected in our operating results. • We are subject to general litigation that may materially adversely affect us. • A failure to maintain adequate internal controls over our financial and management systems could cause errors in our financial reporting, which could cause a loss of investor confidence and result in a decline in the price of our Class A common stock. • Our relatively limited operating history makes it difficult to predict our future operating results.
Dollar and other currencies could adversely impact our operating results. • Geopolitical conflicts, including the conflict between Russia and Ukraine and the conflict in the Middle East, may adversely affect our business and results of operations. • Fixed-fee engagements with customers may not meet our expectations if we underestimate the cost of these engagements. 17 Table of Contents • If we fail to continue to develop our brand, our business may suffer. • Legislative and regulatory changes could adversely affect our business. • We may need to raise additional capital, which may not be available to us. • We have acquired, and may continue to acquire, other companies or technologies, which could divert our management’s attention, result in additional dilution to our stockholders and otherwise disrupt our operations and adversely affect our operating results. • Because we recognize revenue over the term of each subscription, downturns or upturns in sales may not be immediately reflected in our operating results. • We are subject to general litigation that may materially adversely affect us. • A failure to maintain adequate internal controls over our financial and management systems could cause errors in our financial reporting. • Our relatively limited operating history makes it difficult to predict our future operating results.
The terms of various open source licenses have not been interpreted by United States courts, and there is a risk that such licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to market our solutions.
The terms of various open source licenses have not been interpreted by U.S. courts, and there is a risk that such licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to market our solutions.
We may move or transfer our data and our customers’ data to other cloud hosting providers and any unsuccessful data transfers may impair the delivery of our service. Changes in laws and regulations related to the internet or changes in the internet infrastructure itself may diminish the demand for our solutions.
We may move or transfer our data and our customers’ data to other cloud hosting providers and any unsuccessful data transfers may impair the delivery of our service. 32 Table of Contents Changes in laws and regulations related to technology, the internet or changes in the internet infrastructure itself may diminish the demand for our solutions.
United States federal and state intellectual property laws offer limited protection, and the laws of some countries provide even less protection. Moreover, changes in intellectual property laws, such as changes in the law regarding the patentability of software, could also impact our ability to obtain protection for our solutions.
U.S. federal and state intellectual property laws offer limited protection, and the laws of some countries provide even less protection. Moreover, changes in intellectual property laws, such as changes in the law regarding the patentability of software, could also impact our ability to obtain protection for our solutions.
In addition, if we are unable to provide these professional services, we may lose sales or incur customer dissatisfaction, and our business and operating results could be significantly harmed. 25 Table of Contents If we fail to continue to develop our brand, our business may suffer.
In addition, if we are unable to provide these professional services, we may lose sales or incur customer dissatisfaction, and our business and operating results could be significantly harmed. If we fail to continue to develop our brand, our business may suffer.
Because of our limited experience with international operations, our international expansion efforts may not be successful in creating additional demand for our solutions outside of the United States or in effectively selling subscriptions to our solutions in all of the international markets we enter.
Because of our limited experience with international operations, our international expansion efforts may not be successful in creating additional demand for our solutions outside of the U.S. or in effectively selling subscriptions to our solutions in all of the international markets we enter.
We could be adversely affected by changes to these contracts in ways that are inconsistent with our practices or in conflict with the laws and regulations of the United States, foreign or international regulatory authorities.
We could be adversely affected by changes to these contracts in ways that are inconsistent with our practices or in conflict with the laws and regulations of the U.S., foreign or international regulatory authorities.
The authorities in these jurisdictions in which we operate or otherwise conduct business, including state and local taxing authorities in the United States, could successfully assert that we are obligated to pay additional taxes, interest and penalties.
The authorities in these jurisdictions in which we operate or otherwise conduct business, including state and local taxing authorities in the U.S., could successfully assert that we are obligated to pay additional taxes, interest and penalties.
We also cannot assure you that we will be able to continue to expand our market presence in the United States, Europe, Asia Pacific region and other current markets or successfully establish our presence in other markets.
We also cannot assure you that we will be able to continue to expand our market presence in the U.S., Europe, Asia Pacific region and other current markets or successfully establish our presence in other markets.
Although non-SEC solutions generated 66% of new solution and new customer bookings in 2022, it is uncertain whether they will achieve the level of market acceptance we have achieved in the SEC market.
Although non-SEC solutions generated 70% of new solution and new customer bookings in 2023, it is uncertain whether they will achieve the level of market acceptance we have achieved in the SEC market.
As of December 31, 2022, the Class B common stock beneficially owned by certain of our current and former executive officers collectively represented approximately 44% of the voting power of our outstanding capital stock.
As of December 31, 2023, the Class B common stock beneficially owned by certain of our current and former executive officers collectively represented approximately 43% of the voting power of our outstanding capital stock.
The tax authorities in the United States and other countries where we do business regularly examine our income and other tax returns, and these examinations could result in the assessment of material additional taxes.
The tax authorities in the U.S. and other countries where we do business regularly examine our income and other tax returns, and these examinations could result in the assessment of material additional taxes.
We have not been profitable historically and may not achieve or maintain profitability in the future. We have posted a net loss in each fiscal year since we began operations in 2008, including net losses of approximately $90.9 million in fiscal 2022 , $37.7 million in fiscal 2021 and $48.4 million in fiscal 2020.
We have not been profitable historically and may not achieve or maintain profitability in the future. We have posted a net loss in each fiscal year since we began operations in 2008, including net losses of approximately $127.5 million in fiscal 2023 , $90.9 million in fiscal 2022 and $37.7 million in fiscal 2021.
We experienced revenue growth rates of 21% , 26% and 18% in fiscal 2022, 2021 and 2020, respectively. Our historical revenue growth rates are not indicative of future growth, and we may not achieve similar revenue growth rates in future periods.
We experienced revenue growth rates of 17% , 21% and 26% in fiscal 2023, 2022 and 2021, respectively. Our historical revenue growth rates are not indicative of future growth, and we may not achieve similar revenue growth rates in future periods.
It is hosted pursuant to service agreements on servers by third-party service providers, including those with Amazon Web Services and Google Cloud Platform. We do not control the operation of these providers or their facilities, and the facilities are vulnerable to damage, interruption or misconduct. We also do not maintain redundant systems for some of these services.
It is hosted pursuant to service agreements on servers by third-party service providers, including with AWS. We do not control the operation of these providers or their facilities, and the facilities are vulnerable to damage, interruption or misconduct. We also do not maintain redundant systems for some of these services.
Dollar and foreign currencies may impact our operating results when translated into U.S. Dollars. Such fluctuations may be materially impacted by the ongoing COVID-19 pandemic, increases in inflation, fluctuations in interest rates, and any global events, wars or conflicts, including the current Russia and Ukraine conflict.
Dollar and foreign currencies may impact our operating results when translated into U.S. Dollars. Such fluctuations have been, and may continue to be materially impacted by, increases in inflation, fluctuations in interest rates, and any global events, wars or conflicts, including the current Russia and Ukraine conflict and the conflict in the Middle East.
These laws and regulations, as well as any associated inquiries or investigations or any other government actions, may be costly to comply with and may delay or impede the development of new products, result in negative publicity, increase our 31 Table of Contents operating costs, require significant management time and attention, and subject us to remedies that may harm our business, including fines or demands or orders that we modify or cease existing business practices.
These laws and regulations, as well as any associated inquiries or investigations or any other government actions, may be costly to comply with and may delay or impede the development of new products, result in negative publicity, increase our operating costs, require significant management time and attention, and subject us to remedies that may harm our business, including fines or demands or orders that we modify or cease existing business practices. 33 Table of Contents In addition, as we expand our operations internationally, compliance with regulations that differ from jurisdiction to jurisdiction may also impose substantial burdens on our business.
To manage our future growth, we must continue to scale our business functions, improve our financial and management controls and our reporting systems and procedures and expand and train our work force. In particular, we grew from 2,106 employees as of December 31, 2021 to more than 2,400 employees as of December 31, 2022.
To manage our future growth, we must continue to scale our business functions, improve our financial and management controls and our reporting systems and procedures and expand and train our work force. For example, we grew from 2,447 employees as of December 31, 2022 to more than 2,500 employees as of December 31, 2023.
We completed an offering of convertible senior notes in August 2019. In the event the conditional conversion feature of our convertible senior notes is triggered, holders of such notes will be entitled to convert the convertible senior notes at any time during specified periods at their option.
We completed offerings of convertible senior notes in August 2019 and August 2023. In the event the conditional conversion features of our convertible senior notes are triggered, holders of such notes will be entitled to convert the convertible senior notes at any time during specified periods at their option.
In general, weakened global economic conditions, including those from the ongoing COVID-19 pandemic, inflation, interest rates, and armed conflicts (such as Russia and Ukraine conflict) make it difficult for our customers, prospective customers and us to forecast and plan future business activities accurately.
In general, weakened global economic conditions, including those from inflation, interest rates, and armed conflicts (including between Russia and Ukraine, and in the Middle East) make it difficult for our customers, prospective customers and us to forecast and plan future business activities accurately.
If we do not keep pace with technological changes, our solutions may become less competitive. Our market is characterized by rapid technological change, frequent product and service innovation and evolving industry standards.
If we do not keep pace with technological changes, our solutions may become less competitive. Our market is characterized by rapid technological change (such as the use of artificial intelligence (“AI”) and machine learning), frequent product and service innovation and evolving industry standards.
New legislation, or a significant change in rules, regulations, directives or standards could reduce demand for our products and services, increase expenses as we modify our products and services to comply with new requirements and retain relevancy, impose limitations on our operations, and increase compliance or litigation expense, each of which could have a material adverse effect on our business, financial condition and results of operations.
New legislation, or a significant change in rules, regulations, directives or standards, including as a result of legal challenges to proposed regulations, could reduce demand for our products and services, increase expenses as we modify our products and services to comply with new requirements and retain relevancy, impose limitations on our operations, and increase compliance or litigation expense, each of which could have a material adverse effect on our business, financial condition and results of operations. 26 Table of Contents We may need to raise additional capital, which may not be available to us.
While we have security measures in place to protect customer information and prevent data loss and other security breaches, these measures may be breached as a result of third-party action, employee error, malfeasance or otherwise.
While we have security measures in place to protect customer information and prevent data loss and other security breaches, these measures have been in the past, and may in the future be, breached as a result of third-party action, employee error, malfeasance or otherwise, including cyber attacks, account takeover attacks, denial of service attacks and other cyber security threats.
We may need to raise additional capital, which may not be available to us. Our future liquidity and capital requirements are difficult to predict as they depend upon many factors, including the success of our solutions and competing technological and market developments.
Our future liquidity and capital requirements are difficult to predict as they depend upon many factors, including the success of our solutions and competing technological and market developments.
The loss of one or more of our executive officers or key employees could have a material adverse effect on our business. 22 Table of Contents Further, to execute our growth plan, we must attract and retain highly qualified personnel.
Any significant leadership change or senior management transition involves inherent risk, and the loss of one or more of our executive officers or key employees could have a material adverse effect on our business. Further, to execute our growth plan, we must attract and retain highly qualified personnel.
Any legislation or rulemaking substantially affecting the content or method of delivery of documents to be filed with these regulatory bodies could have an adverse effect on our business. Uncertainty caused by political change in the United States and Western Europe (including Brexit) heightens regulatory uncertainty in these areas.
Any legislation or rule making substantially affecting the content or method of delivery of documents to be filed with these regulatory bodies could have an adverse effect on our business. Uncertainty caused by political change in the U.S. and Western Europ e h eightens regulatory uncertainty in these areas.
Slower sales cycles may limit our ability to grow and create focus on compliance points as opposed to new sales. 32 Table of Contents Any failure by us or a third-party contractor providing services to us to comply with applicable privacy and data protection laws, regulations, self-regulatory requirements or industry guidelines, our contractual privacy obligations or our own privacy policies, may result in fines, statutory or contractual damages, litigation or governmental enforcement actions.
Any failure by us or a third-party contractor providing services to us to comply with applicable privacy and data protection laws, regulations, self-regulatory requirements or industry guidelines, our contractual privacy obligations or our own privacy policies, may result in fines, statutory or contractual damages, litigation or governmental enforcement actions.
In addition, we need to properly manage our technological operations infrastructure in order to support changes in hardware and software parameters and the evolution of our solutions, all of which require significant lead time.
We also seek to maintain excess capacity to facilitate the rapid provision of new customer deployments and the expansion of existing customer deployments. In addition, we need to properly manage our technological operations infrastructure in order to support changes in hardware and software parameters and the evolution of our solutions, all of which require significant lead time.
If the use of the internet is adversely affected by these issues, demand for our solutions could suffer. We are subject to U.S. and foreign data privacy and protection laws and regulations as well as contractual privacy obligations. We manage private and confidential information and documentation related to our customers’ finances and transactions, often prior to public dissemination.
If the use of the internet or technology generally is adversely affected by these issues, demand for our solutions could suffer. We are subject to U.S. and foreign data privacy and protection laws and regulations as well as contractual privacy obligations.
If we raise additional funds through further issuances of equity, convertible debt securities or other securities convertible into equity, our existing stockholders could suffer significant dilution in their percentage ownership of our company, and any new equity securities we issue could have rights, preferences and privileges senior to those of holders of our Class A common stock. 26 Table of Contents We have acquired, and may continue to acquire, other companies or technologies, which could divert our management’s attention, result in additional dilution to our stockholders and otherwise disrupt our operations and adversely affect our operating results.
If we raise additional funds through further issuances of equity, convertible debt securities or other securities convertible into equity, our existing stockholders could suffer significant dilution in their percentage ownership of our company, and any new equity securities we issue could have rights, preferences and privileges senior to those of holders of our Class A common stock.
The GDPR includes more robust obligations on data processors and heavier documentation requirements for data protection compliance programs by companies that process personal data of residents of the E.U., and imposes significant penalties for non-compliance.
In particular, the European Union has implemented the General Data Protection Regulation (“GDPR”), which came into force in May 2018. The GDPR includes more robust obligations on data processors and heavier documentation requirements for data protection compliance programs by companies that process personal data of residents of the E.U., and imposes significant penalties for non-compliance.
Failure to establish and maintain partnerships that can provide complementary technology offerings and software integrations could limit our ability to grow our business. Our growth strategy includes expanding the use of our platform through complementary technology offerings and software integrations, such as third-party application programming interfaces, or APIs.
Our growth strategy includes expanding the use of our platform through complementary technology offerings and software integrations, such as third-party application programming interfaces, or APIs.
These proceedings or violations could force us to spend significant amounts in defense or settlement of these proceedings, result in the imposition of monetary liability, distract our management, increase our costs of doing business, and adversely affect our reputation and the demand for our solutions.
These proceedings or violations could force us to spend significant amounts in defense or settlement of these proceedings, result in the imposition of monetary liability, distract our management, increase our costs of doing business, and adversely affect our reputation and the demand for our solutions. 34 Table of Contents Furthermore, government agencies may seek to access sensitive information that our customers upload to our service providers or restrict customers’ access to our service providers.
Specifically, the current conflict between Russia and Ukraine is creating substantial uncertainty about the future impact on global capital markets. Countries across the globe are instituting sanctions and other penalties against Russia.
As a result, our global operations are affected by economic, political and other conditions in the foreign countries in which we do business. Specifically, the current conflict between Russia and Ukraine is creating substantial uncertainty about the future impact on global capital markets. Countries across the globe are instituting sanctions and other penalties against Russia.
While our agreements with customers limit our liability for damages arising from our solutions, we cannot assure you that these contractual provisions will protect us from liability for damages in the event we are sued.
We expect that the number and significance of these potential disputes may increase as our business expands domestically and internationally and our company grows larger. While our agreements with customers limit our liability for damages arising from our solutions, we cannot assure you that these contractual provisions will protect us from liability for damages in the event we are sued.
Our senior management and key employees are generally employed on an at-will basis, which means that they could terminate their employment with us at any time.
From time to time, there are changes in our management team resulting from the hiring or departure of executives or other key employees, which could disrupt our business. Our senior management and key employees are generally employed on an at-will basis, which means that they could terminate their employment with us at any time.
These problems may be caused by a variety of factors, including infrastructure changes, human or software errors, viruses, security attacks, fraud, spikes in customer usage and denial of service issues. In some instances, we may not be able to identify the cause or causes of these performance problems within an acceptable period of time.
We have experienced, and may in the future experience, website disruptions, outages and other performance problems. These problems may be caused by a variety of factors, including infrastructure changes, human or software errors, viruses, security attacks, fraud, spikes in customer usage and denial of service issues.
In addition, integration of the software used in our solutions with new third-party software may require significant work and require substantial investment of our time and resources.
There may not be commercially reasonable alternatives to the third-party software we currently use, or it may be difficult or costly to replace. In addition, integration of the software used in our solutions with new third-party software may require significant work and require substantial investment of our time and resources.
Moreover, investigations into our compliance with privacy-related obligations could increase our costs and divert management attention. Any failure to protect our intellectual property rights or defend against accusations of infringement of third-party intellectual property rights could impair our ability to protect our proprietary technology and our brand. Our success substantially depends upon our proprietary methodologies and other intellectual property rights.
Any failure to protect our intellectual property rights or defend against accusations of infringement of third-party intellectual property rights could impair our ability to protect our proprietary technology and our brand. Our success substantially depends upon our proprietary methodologies and other intellectual property rights. Unauthorized use of our intellectual property by third parties may damage our brand and our reputation.
The inability to maintain software licenses, or the existence of errors in the software we license could result in increased costs or reduced service levels. Our solutions incorporate certain third-party software that may be licensed to or hosted by or on behalf of Workiva, or may be hosted by a licensor and accessed by Workiva on a Software-as-a-Service basis.
Our solutions incorporate certain third-party software that may be licensed to or hosted by or on behalf of Workiva, or may be hosted by a licensor and accessed by Workiva on a Software-as-a-Service basis. We anticipate that we will continue to rely on third-party software and development tools from third parties in the future.
Geopolitical conflicts, including the conflict between Russia and Ukraine, may adversely affect our business and results of operations. We have operations or activities in numerous countries and regions outside the United States, including in Europe. As a result, our global operations are affected by economic, political and other conditions in the foreign countries in which we do business.
Geopolitical conflicts, including the conflict between Russia and Ukraine and the conflict in the Middle East, may adversely affect our business and results of operations. We have operations or activities in numerous countries and regions outside the U.S., including in Europe.
Accordingly, the effect of any significant downturns in sales, including changes as a result of the ongoing COVID-19 pandemic, may not be fully reflected in our results of operations until future periods. We are subject to general litigation that may materially adversely affect us.
Accordingly, the effect of any significant downturns in sales, may not be fully reflected in our results of operations until future periods. 27 Table of Contents We are subject to general litigation that may materially adversely affect us. From time to time, we may be involved in disputes or regulatory inquiries that arise in the ordinary course of business.
If that occurs, customers could elect not to renew their subscriptions, could delay or withhold payment to us or may make warranty or other claims against us.
If that occurs, customers could elect not to renew their subscriptions, could delay or withhold payment to us or may make warranty or other claims against us. In addition, if the public becomes aware of a security breach of our solutions, our future business prospects could be adversely impacted.
Privacy laws restrict our storage, use, processing, disclosure, transfer and protection of personal information that may be placed in our platform by our customers or collected from visitors while visiting our websites. The regulatory framework for privacy and data protection issues worldwide is evolving, and new or proposed legislation and regulations could also significantly affect our business.
In addition, we are subject to the data privacy and protection laws and regulations adopted by federal, state and foreign legislatures and governmental agencies. Privacy laws restrict our storage, use, processing, disclosure, transfer and protection of personal information that may be placed in our platform by our customers or collected from visitors while visiting our websites.
As we grow and develop the infrastructure of a public company, we may find it difficult to maintain our corporate culture. Any failure to preserve our culture could negatively affect our future success, including our ability to retain and recruit personnel and effectively focus on and pursue our corporate objectives.
Any failure to preserve our culture could negatively affect our future success, including our ability to retain and recruit personnel and effectively focus on and pursue our corporate objectives. We depend on our senior management team and other key employees. We rely on the stability of our leadership team and other key employees.
A key element of our growth strategy is to expand our international operations and develop a worldwide customer base. A growing portion of our revenue is from customers headquartered outside the United States.
A key element of our growth strategy is to expand our international operations and develop a worldwide customer base. A growing portion of our revenue is from customers headquartered outside the U.S.. Operating in international markets requires significant resources and management attention and subjects us to regulatory, economic and political risks that are different from those in the U.S..
Furthermore, government agencies may seek to access sensitive information that our customers upload to our service providers or restrict customers’ access to our service providers. Laws and regulations relating to government access and restrictions are evolving, and compliance with such laws and regulations could limit adoption of our services by customers and create burdens on our business.
Laws and regulations relating to government access and restrictions are evolving, and compliance with such laws and regulations could limit adoption of our services by customers and create burdens on our business. Moreover, investigations into our compliance with privacy-related obligations could increase our costs and divert management attention.
Once our solutions are deployed, our customers depend on our customer success organization to resolve technical issues relating to our solutions. We may be unable to respond quickly enough to accommodate short-term increases in customer demand for support services without incurring additional expenses or at all.
We may be unable to respond quickly enough to accommodate short-term increases in customer demand for support services without incurring additional expenses or at all. Increased customer demand for these services, without corresponding revenue, could increase costs and adversely affect our operating results.
If our assumptions regarding these risks and uncertainties (which we use to plan our business) are incorrect or change due to changes in our markets, or if we do not address these risks successfully, our operating and financial results could differ materially from our expectations and our business could suffer.
If our assumptions regarding these risks and uncertainties (which we use to plan our business) are incorrect or change due to changes in our markets, or if we do not address these risks successfully, our operating and financial results could differ materially from our expectations and our business could suffer. 28 Table of Contents Risks Related to Technology and Intellectual Property We face continually evolving cybersecurity risks, which could result in the loss, theft, misuse, unauthorized disclosure, access, or destruction of confidential information or data, disruption of our solutions, damage to our brands, reputation and relationships with customers, legal exposure and financial losses.
We do not control the operation of these providers or their facilities, and the facilities are vulnerable to damage, interruption or misconduct, which could result in interruptions in our services. We have experienced, and may in the future experience, website disruptions, outages and other performance problems.
Our platform interacts with and depends on technology provided by AWS and other third-party providers, and our data is hosted pursuant to service agreements with these providers. We do not control the operation of these providers or their facilities, and the facilities are vulnerable to damage, interruption or misconduct, which could result in interruptions in our services.
In addition, we rely on a combination of copyright, trademark and trade secret laws, employee and third-party non-disclosure and non-competition agreements and other methods to protect our intellectual property. However, unauthorized parties may attempt to copy or obtain and use our technology to develop products with the same functionality as our solutions.
As of December 31, 2023, we had 76 issued patents and 17 patent applications pending, and we expect to seek additional patents in the future. In addition, we rely on a combination of copyright, trademark and trade secret laws, employee and third-party non-disclosure and non-competition agreements and other methods to protect our intellectual property.
If we fail to manage our technical operations infrastructure, our existing customers may experience service outages, and our new customers may experience delays in the deployment of our solutions. We have experienced significant growth in the number of users, projects and data that our operations infrastructure supports.
We have experienced significant growth in the number of users, projects and data that our operations infrastructure supports. We seek to maintain sufficient excess capacity in our operations infrastructure to meet the needs of all of our customers.
If we do not accurately predict our infrastructure requirements, our existing customers may experience service outages that may subject us to financial penalties, financial liabilities and customer losses. If our operations infrastructure fails to keep pace with increased sales, customers may experience delays as we seek to obtain additional capacity, which could adversely affect our reputation and our revenue.
If our operations infrastructure fails to keep pace with increased sales, customers may experience delays as we seek to obtain additional capacity, which could adversely affect our reputation and our revenue. 31 Table of Contents The inability to maintain software licenses, or the existence of errors in the software we license could result in increased costs or reduced service levels.
If we fail to attract new personnel or fail to retain and motivate our current personnel, our business and future growth prospects could be adversely affected. The COVID-19 pandemic has impacted our business, and its ultimate impact on our business and financial results is uncertain.
If we fail to attract new personnel or fail to retain and motivate our current personnel, our business and future growth prospects could be adversely affected. 23 Table of Contents Our workforce is our primary operating expense and subjects us to risks associated with increases in the cost of labor. Labor is our primary operating expense.
The use of insider information is highly regulated in the United States and abroad, and violations of securities laws and regulations may result in civil and criminal penalties. In addition, we are subject to the data privacy and protection laws and regulations adopted by federal, state and foreign legislatures and governmental agencies.
We manage private and confidential information and documentation related to our customers’ finances and transactions, often prior to public dissemination. The use of insider information is highly regulated in the U.S. and abroad, and violations of securities laws and regulations may result in civil and criminal penalties.
In addition, if the public becomes aware of a security breach of our solutions, our future business prospects could be adversely impacted. 28 Table of Contents Any failure to offer high-quality technical support services may adversely affect our relationships with our customers.
Any failure to offer high-quality technical support services may adversely affect our relationships with our customers. 29 Table of Contents Once our solutions are deployed, our customers depend on our customer success organization to resolve technical issues relating to our solutions.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeInternationally, we lease offices in Canada, the Netherlands, the United Kingdom, Germany, France, Denmark, Hong Kong, Australia, Japan, and Singapore. We believe that our properties are generally suitable to meet our needs for the foreseeable future. In addition, to the extent we require additional space in the future, we believe that it would be readily available on commercially reasonable terms.
Biggest changeInternationally, we lease offices or contract with flexible workspace providers in Canada, the Netherlands, the United Kingdom, Germany, France, Denmark, Sweden, Hong Kong, Australia, Japan, and Singapore. We believe that our properties are generally suitable to meet our needs for the foreseeable future.
Item 2. Properties Our corporate headquarters is located in Ames, Iowa, where we lease approximately 120,000 square feet of office space. We also lease office facilities in seven U.S. cities located in Arizona, Colorado, Illinois, Montana, New York, and South Carolina.
Item 2. Properties Our corporate headquarters is located in Ames, Iowa, where we lease approximately 120,000 square feet of office space. We also lease office facilities in six U.S. cities located in Arizona, Colorado, Montana, New York, and South Carolina.
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In addition, to the extent we require additional space in the future, we believe that it would be readily available on commercially reasonable terms. 42 Table of Contents

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeRegardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. Item 4. Mine Safety Disclosure Not applicable. 39 Table of Contents Part II.
Biggest changeRegardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. Item 4. Mine Safety Disclosure Not applicable. 43 Table of Contents Part II.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeStockholders As of December 31, 2022, there were approximately 68 stockholders of record of our Class A common stock, as well as 10 stockholders of record of our Class B common stock. Dividends We have never declared or paid cash dividends on our capital stock.
Biggest changeStockholders As of December 31, 2023, there were approximately 63 stockholders of record of our Class A common stock, including The Depository Trust Company, which holds shares of our common stock on behalf of an indeterminate number of beneficial owners, as well as 10 stockholders of record of our Class B common stock.
The chart assumes $100 was invested at the close of market on December 31, 2017, in the Class A common stock of Workiva Inc., the S&P 500 Index and the Nasdaq Computer Index, and assumes the reinvestment of any dividends. 40 Table of Contents The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our Class A common stock.
The chart assumes $100 was invested at the close of market on December 31, 2018, in the Class A common stock of Workiva Inc., the S&P 500 Index and the Nasdaq Computer Index, and assumes the reinvestment of any dividends. 44 Table of Contents The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our Class A common stock.
We currently intend to retain any future earnings and do not expect to pay any dividends on our capital stock.
Dividends We have never declared or paid cash dividends on our capital stock. We currently intend to retain any future earnings and do not expect to pay any dividends on our capital stock.
Removed
Company/Index 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 Workiva Inc.
Added
Company/Index 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 Workiva Inc. $ 100.00 $ 108.57 $ 232.63 $ 282.29 $ 206.52 $ 222.51 S&P 500 Index 100.00 131.54 155.85 200.68 164.39 207.63 NASDAQ Computer Index 100.00 151.95 229.98 318.81 206.17 345.27 Issuer Purchases of Equity Securities None. Item 6. [Reserved] 45 Table of Contents
Removed
(WK) $ 100.00 $ 167.71 $ 196.50 $ 428.13 $ 609.77 $ 392.38 S&P 500 Index (SPX) 100.00 95.67 125.86 149.12 192.06 157.33 NASDAQ Computer Index (IXK) 100.00 97.36 147.94 223.91 310.41 186.49 41 Table of Contents Issuer Purchases of Equity Securities The following table provides information about purchases of shares of our Class A Common Stock during the three months ended December 31, 2022 related to shares withheld upon vesting of restricted stock units for tax withholding obligations: Date Total Number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Program Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under Program October 2022 24,285 $ 77.80 — — November 2022 — — — — December 2022 — — — — Total 24,285 $ 77.80 — — (1) Total number of shares delivered to us by employees to satisfy the mandatory tax withholding requirement upon vesting of stock-based compensation awards.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

62 edited+16 added−28 removed37 unchanged
Biggest changeCash used in financing activities of $3.4 million for the year ended December 31, 2021 was due primarily to $16.6 million in proceeds from option exercises and $8.9 million in proceeds from shares issued in connection with our employee stock purchase plan, offset by $27.1 million in taxes withheld related to net share settlement of our stock-based compensation awards and an aggregate $1.7 million in payments on finance lease obligations.
Biggest changeCash used in financing activities of $1.6 million for the year ended December 31, 2022 consisted of $12.5 million in taxes paid related to net share settlements of stock-based compensation awards and $1.6 million in principal payments on finance lease obligations partially offset by $9.3 million in proceeds from shares issued in connection with our employee stock purchase plan and $3.3 million in proceeds from option exercises. 57 Table of Contents Contractual Obligations and Commitments The following table represents our contractual obligations as of December 31, 2023, aggregated by type: Payments due by period Total Less than 1 year 1-3 years 3-5 years More than 5 years (in thousands) Convertible senior notes $ 819,441 $ 9,496 $ 90,395 $ 719,550 $ — Operating leases including imputed interest 18,830 6,048 7,198 3,220 2,364 Finance leases, including interest 22,605 1,315 2,630 2,630 16,030 Other contractual commitments 28,137 24,298 3,839 — — Total contractual obligations $ 889,013 $ 41,157 $ 104,062 $ 725,400 $ 18,394 Total future payments related to our convertible senior notes shown in the table above includes $773.2 million aggregate principal amount and future interest payments associated with the Notes of $46.2 million.
The increase in deferred contract costs was primarily due to additional payments made to our sales force related to the direct and incremental costs of obtaining a customer contract.
The increase in deferred costs was primarily due to additional payments made to our sales force related to the direct and incremental costs of obtaining a customer contract.
With the exception of September 2020 and September 2021 when we transitioned to a virtual event, sales and marketing expense has historically been higher in the third quarter due to our annual user conference in September, which was held as a hybrid in-person/virtual event in 2022.
With the exception of September 2021 when we transitioned to a virtual event, sales and marketing expense has historically been higher in the third quarter due to our annual user conference in September, which was held as a hybrid in-person/virtual event in 2022.
Professional service agreements that do not contain a material right are accounted for when the customer exercises its option to purchase additional services. 58 Table of Contents Revenue is recognized for document set ups when the service is complete and control has transferred to the customer. Revenues from XBRL tagging and consulting services are recognized as the services are performed.
Professional service agreements that do not contain a material right are accounted for when the customer exercises its option to purchase additional services. 59 Table of Contents Revenue is recognized for document set ups when the service is complete and control has transferred to the customer. Revenues from XBRL tagging and consulting services are recognized as the services are performed.
Many of our customers employ our professional services just before they file their Form 10-K, often in the first calendar quarter. As of December 31, 2022, the majority of our SEC customers reported their financials on a calendar-year basis. Our sales and marketing expense also has some degree of seasonality.
Many of our customers employ our professional services just before they file their Form 10-K, often in the first calendar quarter. As of December 31, 2023, the majority of our SEC customers reported their financials on a calendar-year basis. Our sales and marketing expense also has some degree of seasonality.
We have generated significant operating losses and negative cash flows as reflected in our accumulated deficit and consolidated statements of cash flows.
We have generated significant operating losses as reflected in our accumulated deficit and consolidated statements of cash flows.
For more information on our convertible senior notes, refer to Note 8 of our accompanying Notes to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K. 56 Table of Contents We lease certain office space, residential space, buildings and land with various lease terms which are primarily accounted for as operating leases.
For more information on our convertible senior notes, refer to Note 8 of our accompanying notes to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K. We lease certain office space, residential space, buildings and land with various lease terms which are primarily accounted for as operating leases.
We recognize subscription and support revenue on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Amounts that are invoiced are initially recorded as deferred revenue. 48 Table of Contents Professional Services Revenue . We believe our professional services facilitate the sale of our subscription service to certain customers.
We recognize subscription and support revenue on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Amounts that are invoiced are initially recorded as deferred revenue. Professional Services Revenue . We believe our professional services facilitate the sale of our subscription service to certain customers.
For each of the years ended December 31, 2022, 2021 and 2020, no single customer represented more than 1% of our revenue, and our largest 10 customers accounted for less than 5% of our revenue in the aggregate. We generate sales directly through our sales force and partners.
For each of the years ended December 31, 2023, 2022 and 2021, no single customer represented more than 1% of our revenue, and our largest 10 customers accounted for less than 10% of our revenue in the aggregate. We generate sales directly through our sales force and partners.
Recent Accounting Pronouncements Refer to Note 1 of the notes to consolidated financial statements for a full description of recent accounting pronouncements. 59 Table of Contents
Recent Accounting Pronouncements Refer to Note 1 of the notes to consolidated financial statements for a full description of recent accounting pronouncements. 60 Table of Contents
Our subscription and support revenue retention rate was 97.8% as of December 31, 2022, up from 97.0% as of December 31, 2021. We believe that our success in maintaining a high rate of revenue retention is attributable primarily to our robust technology platform and strong customer service.
Our subscription and support revenue retention rate was 97.9% as of December 31, 2023, up from 97.8% as of December 31, 2022. We believe that our success in maintaining a high rate of revenue retention is attributable primarily to our robust technology platform and strong customer service.
Investing Activities Cash used in investing activities of $68.0 million for the year ended December 31, 2022 was due primarily to $130.8 million in purchases of marketable securities, $99.2 million for the acquisition of ParsePort, and $3.5 million in purchases of fixed assets partially offset by $150.6 million from the maturities of marketable securities as well as $15.0 million from the sale of marketable securities.
Cash used in investing activities of $68.0 million for the year ended December 31, 2022 consisted of $130.8 million in purchases of marketable securities, $99.2 million for the acquisition of ParsePort, and $3.5 million in purchases of fixed assets partially offset by $150.6 million from the maturities of marketable securities as well as $15.0 million from the sale of marketable securities.
We enter into certain non-cancelable agreements with third-party providers in the ordinary course of business. Our total commitments under these agreements are $40.0 million and are primarily for cloud infrastructure and cloud services.
We enter into certain non-cancelable agreements with third-party providers in the ordinary course of business. Our total commitments under these agreements are $28.1 million and are primarily for cloud infrastructure and cloud services.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our annual report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on February 22, 2022.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our annual report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 21, 2023.
Liquidity and Capital Resources Overview of Sources and Uses of Cash As of December 31, 2022, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $430.8 million, which were held for working capital purposes. We have financed our operations primarily through the proceeds of offerings of equity, convertible debt, and cash from operating activities.
Liquidity and Capital Resources Overview of Sources and Uses of Cash As of December 31, 2023, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $813.7 million, which were held for working capital purposes. We have financed our operations primarily through the proceeds of offerings of equity, convertible debt, and cash from operating activities.
Year ended December 31, 2022 2021 2020 Subscription and support revenue from customers with annual contract value of $100k+ as a percent of total subscription and support revenue 62.1% 60.5% 53.3% Subscription and support revenue from customers with annual contract value of $150k+ as a percent of total subscription and support revenue 47.4% 45.2% 37.3% Subscription and support revenue from customers with annual contract value of $300k+ as a percent of total subscription and support revenue 27.6% 26.1% 19.3% Components of Results of Operations Revenue We generate revenue through the sale of subscriptions to our cloud-based software and the delivery of professional services.
Year ended December 31, 2023 2022 2021 Subscription and support revenue from customers with annual contract value of $100k+ as a percent of total subscription and support revenue 66.3% 62.1% 60.5% Subscription and support revenue from customers with annual contract value of $150k+ as a percent of total subscription and support revenue 51.7% 47.4% 45.2% Subscription and support revenue from customers with annual contract value of $300k+ as a percent of total subscription and support revenue 31.7% 27.6% 26.1% Components of Results of Operations Revenue We generate revenue through the sale of subscriptions to our cloud-based software and the delivery of professional services.
Effects of Volatility in the IPO/SPAC Markets In the United States, volatility in the public markets led to a decrease in the number of initial public offerings (“IPOs”) and special-purpose acquisition companies (“SPACs”) in 2022. New sales of our SEC and capital markets solutions were adversely affected by this decline in the IPO and SPAC markets.
Effects of Volatility in the IPO/SPAC Markets In the U.S., volatility in the public markets led to a decrease in the number of initial public offerings (“IPOs”) and special-purpose acquisition companies (“SPACs”) since fiscal 2022. New sales of our SEC and capital markets solutions were adversely affected by this decline in the IPO and SPAC markets.
We calculate our subscription and support revenue retention rate including add-ons by annualizing the subscription and support revenue recorded in the current quarter for our base customers that were active at the end of the current quarter. We divide the result by the annualized subscription and support revenue in the same quarter of the prior year for all base customers.
We calculate our subscription and support revenue retention rate including add-ons by annualizing the subscription and support revenue recorded in the current quarter for our base customers that were active at the end of the current quarter.
Customers use our platform to create, review and publish data-linked documents and reports with greater control, consistency, accuracy and productivity. Customers collaborate in the same document simultaneously, which improves efficiency and version control. Our platform is flexible and scalable, so customers can easily adapt it to define, automate and change their business processes in real time.
Customers use our platform to create, review and publish data-linked documents, presentations, and reports with greater control, consistency, accuracy, and productivity. Our platform is flexible and scalable, so customers can easily adapt it to define, automate, and change their business processes in real time.
In addition, the timing of the payments of cash bonuses to employees during the first and fourth calendar quarters may result in some seasonality in operating cash flow. 46 Table of Contents Key Performance Indicators Year ended December 31, 2022 2021 2020 (dollars in thousands) Financial metrics Total revenue $ 537,875 $ 443,285 $ 351,594 Year-over-year percentage increase in total revenue 21.3% 26.1% 18.0% Subscription and support revenue $ 464,935 $ 379,340 $ 295,877 Year-over-year percentage increase in subscription and support revenue 22.6% 28.2% 20.4% Subscription and support as a percent of total revenue 86.4% 85.6% 84.2% As of December 31, 2022 2021 2020 Operating metrics Number of customers 5,664 4,315 3,723 Subscription and support revenue retention rate 97.8% 97.0% 95.0% Subscription and support revenue retention rate including add-ons 108.5% 110.0% 109.5% Number of customers with annual contract value $100k+ 1,345 1,121 847 Number of customers with annual contract value $150k+ 718 578 419 Number of customers with annual contract value $300k+ 236 183 119 Total customers .
In addition, the timing of the payments of cash bonuses to employees during the first and fourth calendar quarters may result in some seasonality in operating cash flow. 48 Table of Contents Key Performance Indicators Year ended December 31, 2023 2022 2021 (dollars in thousands) Financial metrics Total revenue $ 630,039 $ 537,875 $ 443,285 Year-over-year percentage increase in total revenue 17.1% 21.3% 26.1% Subscription and support revenue $ 558,645 $ 464,935 $ 379,340 Year-over-year percentage increase in subscription and support revenue 20.2% 22.6% 28.2% Subscription and support as a percent of total revenue 88.7% 86.4% 85.6% As of December 31, 2023 2022 2021 Operating metrics Number of customers 6,034 5,664 4,315 Subscription and support revenue retention rate 97.9% 97.8% 97.0% Subscription and support revenue retention rate including add-ons 110.3% 108.5% 110.0% Number of customers with annual contract value $100k+ 1,631 1,345 1,121 Number of customers with annual contract value $150k+ 915 718 578 Number of customers with annual contract value $300k+ 311 236 183 Total customers .
Cost of Revenue Cost of revenue consists primarily of personnel and related costs directly associated with our professional services, customer success teams and training personnel, including salaries, benefits, bonuses, and stock-based compensation; the costs of contracted third-party vendors; the costs of server usage by our customers; information technology costs; and facility costs.
Revenues from XBRL tagging and consulting services are recognized as the services are performed. 50 Table of Contents Cost of Revenue Cost of revenue consists primarily of personnel and related costs directly associated with our professional services, customer success teams and training personnel, including salaries, benefits, bonuses, and stock-based compensation; the costs of contracted third-party vendors; the costs of server usage by our customers; information technology costs; and facility costs.
We calculate our subscription and support revenue retention rate based on all customers that were active at the end of the same calendar quarter of the prior year (“base customers”).
Companies with publicly-listed securities account for a substantial majority of our customers. Subscription and support revenue retention rate . We calculate our subscription and support revenue retention rate based on all customers that were active at the end of the same calendar quarter of the prior year (“base customers”).
These amounts are included in the table above under “other contractual commitments”. 57 Table of Contents Critical Accounting Policies and Estimates Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States.
These amounts are included in the table above under other contractual commitments. 58 Table of Contents Critical Accounting Policies and Estimates Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S.
General and Administrative Expenses General and administrative expenses consist primarily of personnel and related costs for our executive, finance and accounting, legal, human resources, and administrative personnel, including salaries, benefits, bonuses, and stock-based compensation; legal, accounting, and other professional service fees; other corporate expenses; information technology costs; and facility costs. 49 Table of Contents Results of Operations The following table sets forth selected consolidated statement of operations data for each of the periods indicated: Year ended December 31, 2022 2021 2020 (in thousands) Revenue Subscription and support $ 464,935 $ 379,340 $ 295,877 Professional services 72,940 63,945 55,717 Total revenue 537,875 443,285 351,594 Cost of revenue Subscription and support (1) 77,711 60,551 49,503 Professional services (1) 52,174 43,282 40,674 Total cost of revenue 129,885 103,833 90,177 Gross profit 407,990 339,452 261,417 Operating expenses Research and development (1) 151,716 115,735 94,844 Sales and marketing (1) 245,260 178,785 144,687 General and administrative (1) 99,778 74,287 59,688 Total operating expenses 496,754 368,807 299,219 Loss from operations (88,764) (29,355) (37,802) Interest income 4,880 1,041 3,282 Interest expense (6,042) (14,015) (13,964) Other income and (expense), net 926 3,229 (205) Loss before provision for income taxes (89,000) (39,100) (48,689) Provision (benefit) for income taxes 1,947 (1,370) (291) Net loss $ (90,947) $ (37,730) $ (48,398) (1) Stock-based compensation expense included in these line items was as follows: Year ended December 31, 2022 2021 2020 (in thousands) Cost of revenue Subscription and support $ 3,437 $ 2,868 $ 1,709 Professional services 2,128 1,729 1,434 Operating expenses Research and development 12,554 9,590 8,100 Sales and marketing 19,323 13,901 11,062 General and administrative 33,218 20,545 23,466 Total stock-based compensation expense $ 70,660 $ 48,633 $ 45,771 The following table sets forth our consolidated statement of operations data as a percentage of revenue for each of the periods indicated: 50 Table of Contents Year ended December 31, 2022 2021 2020 Revenue Subscription and support 86.4% 85.6% 84.2% Professional services 13.6 14.4 15.8 Total revenue 100.0 100.0 100.0 Cost of revenue Subscription and support 14.4 13.7 14.1 Professional services 9.7 9.8 11.6 Total cost of revenue 24.1 23.5 25.7 Gross profit 75.9 76.5 74.3 Operating expenses Research and development 28.2 26.1 27.0 Sales and marketing 45.6 40.3 41.2 General and administrative 18.6 16.8 17.0 Total operating expenses 92.4 83.2 85.2 Loss from operations (16.5) (6.7) (10.9) Interest income 0.9 0.2 0.9 Interest expense (1.1) (3.2) (4.0) Other income and (expense), net 0.2 0.7 (0.1) Loss before provision for income taxes (16.5) (9.0) (14.1) Provision (benefit) for income taxes 0.4 (0.3) (0.1) Net loss (16.9) % (8.7) % (14.0) % Revenue Comparison of Years Ended December 31, 2022 and 2021 Year ended December 31, Period-to-period change 2022 2021 Amount % Change (dollars in thousands) Revenue Subscription and support $ 464,935 $ 379,340 $ 85,595 22.6% Professional services 72,940 63,945 8,995 14.1% Total revenue $ 537,875 $ 443,285 $ 94,590 21.3% Total revenue increased $94.6 million in 2022 compared to 2021 due primarily to the increase in subscription and support revenue of $85.6 million.
General and Administrative Expenses General and administrative expenses consist primarily of personnel and related costs for our executive, finance and accounting, legal, human resources, and administrative personnel, including salaries, benefits, bonuses, and stock-based compensation; legal, accounting, and other professional service fees; other corporate expenses; information technology costs; and facility costs. 51 Table of Contents Results of Operations The following table sets forth selected consolidated statement of operations data for each of the periods indicated: Year ended December 31, 2023 2022 2021 (in thousands) Revenue Subscription and support $ 558,645 $ 464,935 $ 379,340 Professional services 71,394 72,940 63,945 Total revenue 630,039 537,875 443,285 Cost of revenue Subscription and support (1) 99,193 77,711 60,551 Professional services (1) 55,029 52,174 43,282 Total cost of revenue 154,222 129,885 103,833 Gross profit 475,817 407,990 339,452 Operating expenses Research and development (1) 172,790 151,716 115,735 Sales and marketing (1) 287,035 245,260 178,785 General and administrative (1) 110,519 99,778 74,287 Total operating expenses 570,344 496,754 368,807 Loss from operations (94,527) (88,764) (29,355) Interest income 25,882 4,880 1,041 Interest expense (53,639) (6,042) (14,015) Other (expense) income, net (1,814) 926 3,229 Loss before provision for income taxes (124,098) (89,000) (39,100) Provision (benefit) for income taxes 3,427 1,947 (1,370) Net loss $ (127,525) $ (90,947) $ (37,730) (1) Stock-based compensation expense included in these line items was as follows: Year ended December 31, 2023 2022 2021 (in thousands) Cost of revenue Subscription and support $ 5,030 $ 3,437 $ 2,868 Professional services 2,540 2,128 1,729 Operating expenses Research and development 18,441 12,554 9,590 Sales and marketing 27,774 19,323 13,901 General and administrative 44,980 33,218 20,545 Total stock-based compensation expense $ 98,765 $ 70,660 $ 48,633 The following table sets forth our consolidated statement of operations data as a percentage of revenue for each of the periods indicated: 52 Table of Contents Year ended December 31, 2023 2022 2021 Revenue Subscription and support 88.7% 86.4% 85.6% Professional services 11.3 13.6 14.4 Total revenue 100.0 100.0 100.0 Cost of revenue Subscription and support 15.7 14.4 13.7 Professional services 8.7 9.7 9.8 Total cost of revenue 24.4 24.1 23.5 Gross profit 75.6 75.9 76.5 Operating expenses Research and development 27.4 28.2 26.1 Sales and marketing 45.6 45.6 40.3 General and administrative 17.5 18.6 16.8 Total operating expenses 90.5 92.4 83.2 Loss from operations (14.9) (16.5) (6.7) Interest income 4.1 0.9 0.2 Interest expense (8.5) (1.1) (3.2) Other (expense) income, net (0.3) 0.2 0.7 Loss before provision (benefit) for income taxes (19.6) (16.5) (9.0) Provision (benefit) for income taxes 0.5 0.4 (0.3) Net loss (20.1) % (16.9) % (8.7) % Revenue Comparison of Years Ended December 31, 2023 and 2022 Year ended December 31, Period-to-period change 2023 2022 Amount % Change (dollars in thousands) Revenue Subscription and support $ 558,645 $ 464,935 $ 93,710 20.2% Professional services 71,394 72,940 (1,546) (2.1)% Total revenue $ 630,039 $ 537,875 $ 92,164 17.1% Total revenue increased $92.2 million in 2023 compared to 2022 due primarily to a $93.7 million increase in subscription and support revenue.
Growth in subscription and support revenue in 2022 was attributable mainly to strong demand and continued solution expansion across our customer base. The total number of our customers increased 31.3% from December 31, 2021 to December 31, 2022.
Growth in subscription and support revenue in 2023 was attributable mainly to strong demand and continued solution expansion across our customer base. The total number of our customers increased 6.5% from December 31, 2022 to December 31, 2023. Professional services revenue decreased $1.5 million in 2023 compared to 2022.
We continue to invest for future growth and are focused on several key drivers, including focusing on multi-solution adoption by new and existing customers, further developing our partner program, accelerating international expansion and our fit-for-purpose solutions.
We incurred net losses of $127.5 million and $90.9 million in 2023 and 2022, respectively. 46 Table of Contents We continue to invest for future growth and are focused on several key drivers, including focusing on multi-solution adoption by new and existing customers, further developing our partner program, accelerating international expansion and our fit-for-purpose solutions.
Customer growth accounted for most of the increase in deferred revenue. The increases in accounts receivable, prepaid expenses, other assets and account payable as well as the decrease in accrued expenses and other liabilities were attributable primarily to the timing of our billings, cash collections, and cash payments.
The increases in accounts receivable, prepaid expenses, other assets and account payable as well as the decrease in accrued expenses and other liabilities were attributable primarily to the timing of our billings, cash collections, and cash payments. The increase in other receivables was attributable primarily to an increase in our refundable research and development tax credit.
The increases in headcount, cloud infrastructure services, and outsourced service fees resulted primarily from our continued investment in and support of our platform and solutions. The increase in travel expense was due to a return to travel as travel restrictions and company policies originally implemented in response to the COVID-19 pandemic ease.
The increases in compensation, cloud infrastructure services, software expense, and outsourced service fees resulted primarily from our continued investment in and support of our platform and solutions. The increase in travel expense was due to a modest continued return to travel.
We recognize revenue for document set ups when the service is complete and control has transferred to the customer. Revenues from XBRL tagging and consulting services are recognized as the services are performed.
We recognize revenue for document set ups when the service is complete and control has transferred to the customer.
Our advance planning team assesses customer needs, conducts industry-based research and defines new markets. This vetting process involves our sales, product marketing, customer success, professional services, research and development, finance and senior management teams. Expand Across Enterprises. Our success in delivering multiple solutions has created demand from customers for a broader-based, enterprise-wide Workiva platform.
This vetting process involves our sales, product marketing, customer success, professional services, research and development, finance and senior management teams. Expand Across Enterprises. Our success in delivering multiple solutions has created demand from customers for a broader-based, enterprise-wide Workiva platform. In response, we have been improving our technology and realigning sales and marketing to capitalize on our growing enterprise-wide opportunities.
Financing Activities Cash used in financing activities of $1.6 million for the year ended December 31, 2022 was due primarily to $12.5 million in taxes paid related to net share settlements of stock-based compensation awards and $1.6 million in principal payments on finance lease obligations partially offset by $9.3 million in proceeds from shares issued in connection with our employee stock purchase plan and $3.3 million in proceeds from option exercises.
Financing Activities Cash provided by financing activities of $301.3 million for the year ended December 31, 2023 consisted of $691.1 million in proceeds from the issuance of our 2028 Notes, net of issuance costs, $12.5 million in proceeds from shares issued in connection with our employee stock purchase plan, and $4.5 million in proceeds from option exercises, partially offset by $396.9 million paid for the partial repurchase of our 2026 Notes and $9.5 million in taxes paid related to net share settlements of stock-based compensation awards.
Customers whose securities were deregistered due to merger or acquisition or financial distress accounted for just over half of our revenue attrition in the latest quarter.
Customers whose securities were deregistered due to merger or acquisition or financial distress accounted for just over half of our revenue attrition in the latest quarter. Subscription and support revenue retention rate including add-ons . Add-on revenue includes the change in both solutions and pricing for existing customers.
General and Administrative General and administrative expenses increased $25.5 million in 2022 compared to 2021, due primarily to $3.4 million in higher cash-based compensation and benefits, $12.5 million of additional stock-based compensation, a $1.8 million increase in travel expense, a $0.9 million increase in software expense, and a $4.9 million increase related to consulting, recruiting, and professional services fees.
General and Administrative General and administrative expenses increased $10.7 million in 2023 compared to 2022, due primarily to $1.4 million in higher cash-based compensation and benefits, $11.6 million of additional stock-based compensation, and a $0.9 million increase in public relations expense, partially offset by a $3.1 million decrease related to consulting, recruiting and professional services fees and a $1.4 million decrease in goods and service tax expense.
The increases in accounts receivable and accrued expenses and other liabilities were attributable primarily to the timing of our billings, cash collections, and cash payments. The increase in prepaid expenses was attributable primarily to the timing of annual contracts.
The change in operating assets and liabilities was driven by an increase in deferred revenue which was primarily due to customer growth. The increases in accounts receivable, other receivables and accrued expenses and other liabilities prepaid expenses and other assets were attributable primarily to the timing of our billings, cash collections, and cash payments.
Our platform lets our customers connect data from Enterprise Resource Planning (“ERP”), Governance, Risk and Compliance (“GRC”), Human Capital Management (“HCM”) and Customer Relationship Management (“CRM”) systems, as well as other third-party cloud and on-premise applications.
From data to disclosure, the Workiva platform empowers customers by connecting and transforming data from hundreds of enterprise resource planning (“ERP”), human capital management (“HCM”), and customer relationship management (“CRM”) systems, as well as other third-party cloud and on-premise applications.
Our close and trusted relationships with our customers are a source for new use cases, features and solutions. We have a disciplined process for tracking, developing and releasing new solutions that are designed to have immediate, broad applicability; a strong value proposition; and a high return on investment for both Workiva and our customers.
We have a disciplined process for tracking, developing and releasing new solutions that are designed to have immediate, broad applicability; a strong value proposition; and a high return on investment for both Workiva and our customers. Our advance planning team assesses customer needs, conducts industry-based research and defines new markets.
Cash Flows The following table summarizes cash flow activity during the years ended December 31, 2022, 2021 and 2020 (in thousands): Year ended December 31, 2022 2021 2020 Cash flow provided by operating activities $ 11,334 $ 49,844 $ 33,243 Cash flow used in investing activities (68,012) (68,631) (103,750) Cash flow (used in) provided by financing activities (1,587) (3,388) 11,118 Net decrease in cash and cash equivalents, net of impact of exchange rates $ (60,189) $ (22,445) $ (58,911) 54 Table of Contents Operating Activities For the year ended December 31, 2022, cash provided by operating activities was $11.3 million.
Cash Flows The following table summarizes cash flow activity during the years ended December 31, 2023, 2022 and 2021 (in thousands): Year ended December 31, 2023 2022 2021 Cash flow provided by operating activities $ 70,875 $ 11,334 $ 49,844 Cash flow used in investing activities (357,253) (68,012) (68,631) Cash flow provided by (used in) financing activities 301,265 (1,587) (3,388) Net increase (decrease) in cash and cash equivalents, net of impact of exchange rates $ 16,524 $ (60,189) $ (22,445) 56 Table of Contents Operating Activities Our largest source of operating cash is cash collections from customers for subscription and support access to our platform.
Our subscription fee includes the use of our software and technical support. Our subscription pricing is based primarily on a solution-based licensing model. Under this model, operating metrics related to a customer’s expected use of each solution determine the price. We charge customers additional fees primarily for document setup and XBRL tagging services.
Under this model, operating metrics related to a customer’s expected use of each solution determine the price. We charge customers additional fees primarily for document setup and XBRL tagging services. We generate sales primarily through our direct sales force. In addition, we augment our direct sales channel with partnerships.
We believe the increase in the number of larger contracts shows our progress in expanding our customers’ adoption of our platform. Our ACV metrics as of December 31, 2022 include information related to ParsePort.
Our annual contract value (“ACV”) for each customer is calculated by annualizing the subscription and support revenue recognized during each quarter. We believe the increase in the number of larger contracts shows our progress in expanding our customers’ adoption of our platform. Our ACV metrics as of December 31, 2023 include information related to ParsePort.
Non-Operating Income (Expenses) Comparison of Years Ended December 31, 2022 and 2021 Year ended December 31, Period-to-period change 2022 2021 Amount (dollars in thousands) Interest income $ 4,880 $ 1,041 $ 3,839 Interest expense (6,042) (14,015) 7,973 Other income and (expense), net 926 3,229 (2,303) Interest income increased $3.8 million in 2022 compared to 2021 due primarily to higher interest rates on investments.
Non-Operating Income (Expenses) Comparison of Years Ended December 31, 2023 and 2022 Year ended December 31, Period-to-period change 2023 2022 Amount (dollars in thousands) Interest income $ 25,882 $ 4,880 $ 21,002 Interest expense (53,639) (6,042) (47,597) Other (expense) income, net (1,814) 926 (2,740) Interest income increased $21.0 million in 2023 compared to 2022 due primarily to larger investment balances coupled with higher interest rates.
Professional services revenue increased $9.0 million due primarily to growth in revenue from XBRL professional services. 51 Table of Contents Cost of Revenue Comparison of Years Ended December 31, 2022 and 2021 Year ended December 31, Period-to-period change 2022 2021 Amount % Change (dollars in thousands) Cost of revenue Subscription and support $ 77,711 $ 60,551 $ 17,160 28.3% Professional services 52,174 43,282 8,892 20.5% Total cost of revenue $ 129,885 $ 103,833 $ 26,052 25.1% Cost of revenue increased $26.1 million in 2022 compared to 2021 due primarily to $18.0 million in higher cash-based compensation and benefits due in part to increased headcount, $1.0 million of additional stock-based compensation, a $3.4 million increase in the cost of cloud infrastructure services, a $1.4 million increase in travel expense, $0.8 million increase in outsourced service fees, and a $1.4 million increase in information technology and facility costs in support of our employees.
We expect the revenue growth rate from subscription and support to continue to outpace revenue growth from professional services on an annual basis. 53 Table of Contents Cost of Revenue Comparison of Years Ended December 31, 2023 and 2022 Year ended December 31, Period-to-period change 2023 2022 Amount % Change (dollars in thousands) Cost of revenue Subscription and support $ 99,193 $ 77,711 $ 21,482 27.6% Professional services 55,029 52,174 2,855 5.5% Total cost of revenue $ 154,222 $ 129,885 $ 24,337 18.7% Cost of revenue increased $24.3 million in 2023 compared to 2022 due primarily to $16.1 million in higher cash-based compensation and benefits costs due in part to increased headcount, $2.0 million of additional stock-based compensation, a $3.2 million increase in the cost of cloud infrastructure services, a $1.1 million increase in travel expense, a $0.7 million increase in software expense, and a $0.5 million increase in outsourced service fees.
Our technology partners enable more data and process integrations to help customers connect critical transactional systems directly to our platform. We continue to invest in the development of our solutions, infrastructure and sales and marketing to drive long-term growth. Our full-time employee headcount expanded to 2,447 at December 31, 2022 from 2,106 at December 31, 2021, an increase of 16.2%.
We continue to invest in the development of our solutions, infrastructure and sales and marketing to drive long-term growth. Our full-time employee headcount expanded to 2,526 at December 31, 2023 from 2,447 at December 31, 2022, an increase of 3.2%. We have achieved significant revenue growth in recent periods.
In addition, we market to teams responsible for environmental, social and governance reporting, and governance, risk and compliance programs. We intend to continue to build our sales and marketing organization and leverage our brand equity to attract new customers. Offer More Solutions. We intend to introduce new solutions to continue to meet growing demand for our platform.
We intend to continue to build our sales and marketing organization and leverage our brand equity to attract new customers. Offer More Solutions. We intend to introduce new solutions to continue to meet growing demand for our platform. Our close and trusted relationships with our customers are a source for new use cases, features and solutions.
However, we expect that enterprise-wide deals will be larger and more complex, which tend to lengthen the sales cycle. 45 Table of Contents Add Partners. We continue to expand and deepen our relationships with global and regional partners, including consulting firms, system integrators, large and mid-sized independent software vendors, and implementation partners.
We continue to expand and deepen our relationships with global and regional partners, including consulting firms, system integrators, large and mid-sized independent software vendors, and implementation partners.
Other income, net decreased $2.3 million in 2022 compared to 2021 due primarily to a $3.7 million gain recognized upon the settlement of our equity interest in OneCloud in 2021 which did not recur in 2022. 53 Table of Contents Results of Operations for Fiscal 2021 Compared to 2020 For a comparison of our results of operations for the fiscal years ended December 31, 2021 and 2020, see “Part II, Item 7.
Other expense increased $2.7 million in 2023 compared to 2022 due primarily to losses on the sale of available-for-sale securities and losses on foreign currency transactions. 55 Table of Contents Results of Operations for Fiscal 2022 Compared to 2021 For a comparison of our results of operations for the fiscal years ended December 31, 2022 and 2021, see “Part II, Item 7.
Operating Expenses Comparison of Years Ended December 31, 2022 and 2021 Year ended December 31, Period-to-period change 2022 2021 Amount % Change (dollars in thousands) Operating expenses Research and development $ 151,716 $ 115,735 $ 35,981 31.1% Sales and marketing 245,260 178,785 66,475 37.2% General and administrative 99,778 74,287 25,491 34.3% Total operating expenses $ 496,754 $ 368,807 $ 127,947 34.7% Research and Development Research and development expenses increased $36.0 million in 2022 compared to 2021 due primarily to $21.5 million in higher cash-based compensation and benefits, $3.0 million of additional stock-based compensation, a $2.8 million increase in the cost of cloud infrastructure services, a $2.8 million increase in travel expense, a $2.4 million increase related to the amortization of acquisition-related intangible assets, a $1.9 million increase in information technology and facility costs in support of our research development organization, and a $1.6 million increase related to consulting fees.
Operating Expenses Comparison of Years Ended December 31, 2023 and 2022 Year ended December 31, Period-to-period change 2023 2022 Amount % Change (dollars in thousands) Operating expenses Research and development $ 172,790 $ 151,716 $ 21,074 13.9% Sales and marketing 287,035 245,260 41,775 17.0% General and administrative 110,519 99,778 10,741 10.8% Total operating expenses $ 570,344 $ 496,754 $ 73,590 14.8% Research and Development Research and development expenses increased $21.1 million in 2023 compared to 2022 due primarily to $14.4 million in higher cash-based compensation and benefits, $5.9 million of additional stock-based compensation, and a $0.7 million increase in travel expense.
The increase in cash-based compensation and stock-based compensation were due primarily to an increase in employee headcount. The increase in cloud infrastructure services and consulting fees resulted primarily from our continued investment in and support of our platform and solutions.
The increase in compensation resulted primarily from our continued investment in and support of our platform and solutions. During 2023 we recognized an additional $3.1 million in cash-based and stock-based compensation pursuant to certain severance obligations.
Since solution-based licensing offers our customers an unlimited number of seats for each solution purchased, we expect customers to add more seats over time. As more employees in an enterprise use our platform, additional opportunities for collaboration and automation drive demand among their colleagues for additional solutions. Pursue New Customers .
As more employees in an enterprise use our platform, additional opportunities for collaboration and automation drive demand among their colleagues for additional solutions. Pursue New Customers . We sell to organizations that manage large, complex processes with distributed teams of contributors and disparate sets of business data.
Our subscription and support revenue retention rate including add-ons was 108.5% as of the year ended December 31, 2022, down from 110.0% as of December 31, 2021.
We divide the result by the annualized subscription and support revenue in the same quarter of the prior year for all base customers. 49 Table of Contents Our subscription and support revenue retention rate including add-ons was 110.3% as of the year ended December 31, 2023, up from 108.5% as of December 31, 2022. Annual contract value.
We sell to organizations that manage large, complex processes with distributed teams of contributors and disparate sets of business data. We market our platform to professionals and executives in the areas of financial and non-financial reporting, including regulatory, multi-entity and performance reporting.
We market our platform to professionals and executives in the areas of financial and non-financial reporting, including regulatory, multi-entity and performance reporting. In addition, we market to teams responsible for environmental, social and governance reporting, and governance, risk and compliance programs.
The increase in cash-based compensation was due primarily to an increase in employee headcount. During 2022, we recognized an additional $1.4 million in stock-based compensation pursuant to certain severance obligations. The increase in the cost of marketing programs was due to an increase in-person events as well as costs related to our annual user conference.
During 2023, we recognized an additional $2.9 million in cash-based and stock-based compensation pursuant to certain severance obligations. The remaining increase in compensation, as well as the increase in software expense, were primarily due to an increase in employee headcount as we continue to invest in our go-to-market activities.
We expect reduced valuation multiples caused by higher interest rates, inflation, and geopolitical instability to continue to negatively impact the number of IPOs and SPACs in fiscal year 2023. Accordingly, we expect this volatility to continue to apply pressure to new sales of our SEC and capital markets solutions.
We expect reduced valuation multiples caused by higher interest rates, inflation, and geopolitical instability to continue to negatively impact the number of IPOs and SPACs in fiscal year 2024. Whether and to what extent the IPO and SPAC markets will moderate cannot be accurately predicted. Key Factors Affecting Our Performance Generate Growth From Existing Customers.
We have achieved significant revenue growth in recent periods. Our revenue grew to $537.9 million in 2022 from $443.3 million in 2021, an increase of 21.3%.
Our revenue grew to $630.0 million in 2023 from $537.9 million in 2022, an increase of 17.1%.
The increase in travel expense was due to a return to travel as travel restrictions and company policies originally implemented in response to the COVID-19 pandemic ease. 52 Table of Contents Sales and Marketing Sales and marketing expenses increased $66.5 million in 2022 compared to 2021 due primarily to $42.7 million in higher cash-based compensation and benefits, $5.4 million of additional stock-based compensation, a $5.5 million increase in the cost of marketing programs, a $5.7 million increase in travel expense, a $1.9 million increase related to the amortization of acquisition-related intangible assets, and a $3.8 million increase in information technology and facility costs in support of sales and marketing.
The increase in travel expense was primarily due to our annual internal research and development event and a modest continued return to travel. 54 Table of Contents Sales and Marketing Sales and marketing expenses increased $41.8 million in 2023 compared to 2022 due primarily to $24.9 million in higher cash-based compensation and benefits, $8.4 million of additional stock-based compensation, a $4.3 million increase in travel expense, a $1.5 million increase in professional service fees, a $1.1 million increase in marketing and advertising, and a $1.0 million increase in software expense.
Our capital expenditures were associated primarily with computer equipment in support of expanding our infrastructure and work force. 55 Table of Contents Cash used in investing activities of $68.6 million for the year ended December 31, 2021 was due primarily to $170.1 million for the purchase of marketable securities, $37.5 million for acquisitions, net of cash acquired, and $3.5 million of capital expenditures, partially offset by $143.2 million from the maturities of marketable securities.
Investing Activities Cash used in investing activities of $357.3 million for the year ended December 31, 2023 consisted of investing $573.3 million in various marketable securities, as well as purchases of fixed assets of $2.1 million primarily for computer equipment in support of expanding our infrastructure and work force.
While our customers use our platform for dozens of different use cases, our sales and marketing resources are organized into four solution groups: Financial Reporting, ESG, GRC and Industry Verticals. We operate our business on a Software-as-a-Service (“SaaS”) model. Customers enter into annual and multi-year subscription contracts to gain access to our platform.
We operate our business on a SaaS model. Customers enter into annual and multi-year subscription contracts to gain access to our platform. Our subscription fee includes the use of our software and technical support. Our subscription pricing is based primarily on a solution-based licensing model.
We generate sales primarily through our direct sales force and, to a lesser extent, our customer success and professional services teams. In addition, we augment our direct sales channel with partnerships. Our advisory and service partners offer a wider range of domain and functional expertise that broadens the capabilities of our platform, bringing scale and support to customers and prospects.
Our advisory and service partners offer a wider range of domain and functional expertise that broadens the capabilities of our platform, bringing scale and support to customers and prospects. Our technology partners enable more data and process integrations to help customers connect critical transactional systems directly to our platform.
The increases in software, consulting, recruiting and professional service fees were the result of our continued investment in and support of our platform and solutions. The increase in travel expense was due to a return to travel as travel restrictions and company policies originally implemented in response to the COVID-19 pandemic ease.
The increase in professional service fees was the result of our continued investment in and support of our platform and solutions. The increase in marketing and advertising expenses are primarily due to increased events and advertising activities.
In response, we have been improving our technology and realigning sales and marketing to capitalize on our growing enterprise-wide opportunities. We believe this expansion will add seats and revenue and continue to support our high revenue retention rates.
We believe this expansion will add seats and revenue and continue to support our high revenue retention rates. However, we expect that enterprise-wide deals will be larger and more complex, which tend to lengthen the sales cycle. 47 Table of Contents Add Partners.
The increase in cash-based compensation was due to an increase in employee headcount. During 2022 we recognized an additional $3.8 million in stock-based compensation pursuant to certain severance agreements. The remaining increase in stock-based compensation was due primarily to increased employee headcount in addition to the issuance of performance-based stock units to our executives.
The remaining decrease in stock-based compensation is primarily due to a reduction in employee headcount in 2023 and $2.5 million in stock-based compensation pursuant to certain severance agreements executed in 2022 which did not recur in 2023. Public relations expense increased during 2023 as we continue to execute on our brand strategy.
Whether and to what extent the IPO and SPAC markets will moderate cannot be accurately predicted. Key Factors Affecting Our Performance Generate Growth From Existing Customers. The Workiva platform can exhibit a powerful network effect within an enterprise, meaning that the usefulness of our platform attracts additional users.
The Workiva platform can exhibit a powerful network effect within an enterprise, meaning that the usefulness of our platform attracts additional users. Since solution-based licensing offers our customers an unlimited number of seats for each solution purchased, we expect customers to add more seats over time.
Convertible Debt In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026, including the exercise in full by the initial purchasers of their option to purchase an additional $45.0 million principal amount.
Convertible Debt In August 2023, we issued $702.0 million aggregate principal amount of 1.250% convertible senior notes due 2028 (the “2028 Notes”). Proceeds from the issuance of the 2028 Notes totaled $691.1 million, net of initial purchaser discounts and issuance costs.
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Overview Workiva simplifies complex work for thousands of organizations worldwide. We are a leading provider of cloud-based compliance and regulatory reporting solutions that are designed to solve business challenges at the intersection of data, process and people. Workiva changes the way enterprises manage and report business data.
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Overview Workiva’s mission is to power transparent reporting for a better world. We believe that all stakeholders including consumers, employees, shareholders, and regulators expect more from business – more action, transparency, and disclosure of financial and non-financial information.
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Our open, intelligent and intuitive platform is based on single instance, multi-tenant software applications deployed in the cloud. Our platform connects data, documents and teams, which results in improved efficiency, greater transparency and reduced risk of errors. We offer customers controlled collaboration, data linking, data integrations, granular permissions, process management and a full audit trail on our proprietary platform.
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We build solutions to meet that demand and streamline processes, connect data and teams, and ensure consistency – all within the Workiva platform, the world’s leading cloud platform for assured integrated reporting.
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We incurred net losses of $90.9 million and $37.7 million in 2022 and 2021, respectively. 43 Table of Contents While we continue to see growth in our total revenues, macroeconomic factors have impacted our business and our customers’ businesses in ways that are difficult to isolate and quantify.
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Additionally, we offer the only unified software-as-a-service (“SaaS”) platform that brings customers’ financial reporting, Environmental, Social, and Governance (“ESG”), and Governance, Risk, and Compliance (“GRC”) together in a controlled, secure, audit-ready platform.
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During the course of 2022, we have seen more measured buying behavior from our customers resulting in elongated sales cycles. Slower growth in new business in any given period could negatively affect our revenues or operating margins in future periods, particularly if experienced on a sustained basis.
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Workiva provides more than 6,000 organizations across the globe with SaaS platform solutions to help solve some of the most complex reporting and disclosure challenges.
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In addition, the expanding international scope of our business and the heightened volatility of global markets, expose us to the risk of fluctuations in foreign currency markets. Foreign currency fluctuations have negatively impacted year over year revenue growth.
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While our customers use our platform for more than 100 different use cases, across dozens of vertical industries, we organize our sales and marketing resources into three purpose-built solution groups (Financial Reporting, ESG, and GRC) focusing primarily on the office of the Chief Financial Officer (“CFO”), Chief Sustainability Officer (“CSO”), and Chief Audit Executive (“CAE”).
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Recently the United States Dollar has strengthened against certain foreign currencies in the markets in which we operate, particularly against the Euro and British Pound Sterling. If these conditions continue throughout fiscal 2023, they could have a material adverse impact on our near-term results and our ability to accurately predict our future results and earnings.
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The decrease was driven primarily by the continued transition of consulting and other services to our partners and the timing of performance of XBRL services.
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Recent Business Developments On April 1, 2022, we acquired all of the issued and outstanding equity interests in ParsePort ApS, a leading solution provider for the ESEF financial reporting mandate, which complements Workiva's cloud platform.
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The increase in travel expense was primarily due to a modest continued return to travel and our annual internal sales and marketing event which was held in person in the first half of 2023. The event was held virtually in the prior year.
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On December 29, 2021, we acquired all of the equity interest in Mark V Systems Limited, a California corporation (“Mark V Systems”) and owner of Arelle, the leading open-source XBRL validation engine. As the global standard, Arelle is used by a community of over 50 global regulators, banks and technology companies that depend on it for data quality and comparison.
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In addition, during 2023 we recorded one-time fees of $0.6 million related to the cancellation of certain events. During 2023 we recognized an additional $1.4 million and $18.1 million in cash-based compensation and stock-based compensation, respectively, pursuant to certain transition agreements with former executives.
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Workiva is committed to working with the XBRL community to keep Arelle open-sourced and collaborating for the advancement of this important validation engine. On December 10, 2021, we acquired all of the membership interests in AuditNet, LLC (“AuditNet”), a global audit content and services provider, which strengthens Workiva’s risk and assurance offerings.
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The decrease in sales tax expense was related to a goods and services tax refund which is not expected to recur.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

7 edited+2 added−0 removed9 unchanged
Biggest changeThese operating expenses are also subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Canadian dollar, Euro, British pound, Danish krone, Singapore dollar, Australian dollar, Hong Kong dollar and Japanese yen. Additionally, fluctuations in foreign currency exchange rates may cause us to recognize transaction gains and losses in our statement of operations.
Biggest changeA portion of our operating expenses are incurred outside the U.S. and are denominated in foreign currencies. These operating expenses are also subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Canadian dollar, Euro, British pound, Danish krone, Singapore dollar, Australian dollar, Hong Kong dollar and Japanese yen.
However, because we classify our marketable securities as “available for sale,” no gains or losses are recognized due to changes in interest rates unless such securities are sold prior to maturity or declines in fair value are caused by expected credit losses. 60 Table of Contents An immediate increase of 100-basis points in interest rates would have resulted in an $1.3 million market value reduction in our investment portfolio as of December 31, 2022.
However, because we classify our marketable securities as “available for sale,” no gains or losses are recognized due to changes in interest rates unless such securities are sold prior to maturity or declines in fair value are caused by expected credit losses. 61 Table of Contents An immediate increase of 100-basis points in interest rates would have resulted in an $4.0 million market value reduction in our investment portfolio as of December 31, 2023.
Interest Rate Sensitivity We had cash, cash equivalents and marketable securities totaling $430.8 million as of December 31, 2022. The cash, cash equivalents and marketable securities are held for working capital purposes. Our investments are made primarily for capital preservation purposes. We do not enter into investments for trading or speculative purposes.
Interest Rate Sensitivity We had cash, cash equivalents and marketable securities totaling $813.7 million as of December 31, 2023. The cash, cash equivalents and marketable securities are held for working capital purposes. Our investments are made primarily for capital preservation purposes. We do not enter into investments for trading or speculative purposes.
Foreign currency transaction gains (losses) are included in net loss and were $835,000, $(503,000), and $(329,000) in the years ended December 31, 2022, 2021 and 2020, respectively.
Foreign currency transaction gains (losses) are included in net loss and were $1,154,000, $835,000, and $(503,000) in the years ended December 31, 2023, 2022 and 2021, respectively.
Additionally, the fair value can be affected when the market price of our common stock fluctuates. We carry the Notes at face value less unamortized discount on our balance sheet, and we present the fair value for required disclosure purposes only. 61 Table of Contents
However, the fair value of fixed rate debt instruments fluctuates when interest rates change. Additionally, the fair value can be affected when the market price of our common stock fluctuates. We carry the Notes at face value less unamortized discount on our balance sheet, and we present the fair value for required disclosure purposes only.
Foreign Currency Risk Our sales contracts are denominated predominantly in U.S. dollars and, to a lesser extent, the Canadian dollar, Euro, British Pound Sterling, and Danish krone. Consequently, our customer billings denominated in foreign currency are subject to foreign currency exchange risk. A portion of our operating expenses are incurred outside the United States and are denominated in foreign currencies.
Foreign Currency Risk Our sales contracts are denominated predominantly in U.S. dollars and, to a lesser extent, the Canadian dollar, Euro, British Pound Sterling, Danish krone, and Japanese yen. Consequently, our customer billings denominated in foreign currency are subject to foreign currency exchange risk.
In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026. As these Notes have a fixed annual interest rate, we have no financial or economic interest exposure associated with changes in interest rates. However, the fair value of fixed rate debt instruments fluctuates when interest rates change.
In August 2019, we issued $345.0 million aggregate principal amount of our 2026 Notes. In August 2023, we issued $702.0 million aggregate principal amount of our 2028 Notes. These Notes have a fixed annual interest rate and therefore we have no financial or economic interest exposure associated with changes in interest rates.
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Additionally, fluctuations in foreign currency exchange rates may cause us to recognize transaction gains and losses in our statement of operations.
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For more information on our convertible senior notes, refer to Note 8 of our accompanying notes to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K. 62 Table of Contents

Other WK 10-K year-over-year comparisons