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What changed in WORKIVA INC's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of WORKIVA INC's 2023 and 2024 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 2024 report.

+264 added−244 removedSource: 10-K (2025-02-25) vs 10-K (2024-02-20)

Top changes in WORKIVA INC's 2024 10-K

264 paragraphs added · 244 removed · 202 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

79 edited+17 added−30 removed53 unchanged
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.
Biggest changeA few examples of our continued action and commitments: • We have made significant progress towards our established sustainability targets in innovation, people, environment and philanthropy. • In 2024, our near-term greenhouse gas emissions reduction targets were validated by the Science Based Targets initiative (SBTi). • 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 was one of the first 130 “early movers” to join the UN’s Forward Faster initiative, which aims to increase accountability and transparency by having companies publicly commit to five action areas where businesses can make the biggest impact by 2030. • Workiva is an Associate Centre Partner of the World Economic Forum, with membership in the Centre for Nature & Climate and the Centre for Financial and Monetary Systems.
Leveraging the expertise of our ESG Advisory Council helps us develop relevant products and take actions that are innovative, socially responsible and meet the demands of our stakeholders. To learn more about Workiva’s ESG efforts, track our progress in developing forward-looking targets and key initiatives, go to https://www.workiva.com/about/our-sustainability.
Leveraging the expertise of our ESG Advisory Council helps us develop relevant products and take actions that are innovative, socially responsible and meet the demands of our stakeholders. To learn more about Workiva’s sustainability efforts, track our progress in developing forward-looking targets and key initiatives, go to https://www.workiva.com/about/our-sustainability.
Customers use our solution to collect quantitative and qualitative values to report for ESG topics, reference ESG frameworks and standards to align with stakeholder interests, request and track the data collection of ESG values, and connect information across reports, from sustainability reports to financial reports and internal presentations, to create a single source of truth for ESG metrics and disclosures.
Customers use our solution to collect quantitative and qualitative values to report for sustainability topics, reference sustainability frameworks and standards to align with stakeholder interests, request and track the data collection of sustainability values, and connect information across reports, from sustainability reports to financial reports and internal presentations, to create a single source of truth for sustainability metrics and disclosures.
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.
Human Capital We believe Workiva is a great place to work and Workiva 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.
Our ESG Task Force is appointed by our President and CEO and is comprised of executives responsible for the oversight of various priority ESG issues. • An external ESG Advisory Council comprised of a group of experts who are knowledgeable about global ESG regulation, strategy, practices, and reporting.
Our Sustainability Task Force is appointed by our President and CEO and is comprised of executives responsible for the oversight of various priority sustainability issues. • An external ESG Advisory Council comprised of a group of experts who are knowledgeable about global sustainability regulation, strategy, practices, and reporting.
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”).
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, sustainability management, and GRC) focusing primarily on the offices of the Chief Financial Officer (“CFO”), Chief Sustainability Officer (“CSO”), and Chief Audit Executive (“CAE”).
ESG Program, the digital hub on workiva.com, creates a connected and collaborative hub for ESG teams and stakeholders to operationalize their ESG initiatives.
ESG Program, the digital hub on workiva.com, creates a connected and collaborative hub for sustainability teams and stakeholders to operationalize their sustainability initiatives.
Workiva’s ESG Reporting solution enables organizations to deliver high-quality disclosures to their most important stakeholders, including investors, regulatory agencies, executive management, and their boards by connecting information directly across sustainability reports, statutory disclosures, annual reports, earnings call scripts, and regulatory filings, with support for XBRL tagging.
Sustainability Management Workiva’s sustainability management solution enables organizations to deliver high-quality disclosures to their most important stakeholders, including investors, regulatory agencies, executive management, and their boards by connecting information directly across sustainability reports, statutory disclosures, annual reports, earnings call scripts, and regulatory filings, with support for XBRL tagging.
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.
Workiva’s sustainability 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 sustainability oversight as applicable to each of our Audit, Compensation, and Nominating and Governance committees.
Having always delivered a cloud native platform, we have assisted many of our clients in adopting our cloud solutions and believe that the market has shifted to a cloud first or in many cases a cloud only set of purchasing requirements. Digital Transformation.
Having always delivered a cloud native platform, we have assisted many of our clients in adopting our cloud solutions and believe that the market has shifted to a cloud first or in many cases a cloud only set of purchasing requirements. Finance Transformation.
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.
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.
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.
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. 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.
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.
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.
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.
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. Scales Rapidly.
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.
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. 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.
Without a standardized process and central oversight, companies face enormous risk and high expenses related to outsourcing to a bevy of consultants and accounting firms, which weakens control and extends review time. Securities and Exchange Commission (“SEC”) and System for Electronic Document Analysis and Retrieval (“SEDAR”) Reporting.
Without a standardized process and central oversight, companies face enormous risk and high expenses related to outsourcing to a bevy of consultants and accounting firms, which weakens control and extends review time. 6 Table of Contents Securities and Exchange Commission (“SEC”) and System for Electronic Document Analysis and Retrieval (“SEDAR”) 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; • ESG Reporting and data management software providers; • 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; • Sustainability and data management software providers; • Governance, risk, and compliance software providers; and • Business intelligence / performance management software providers.
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.
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, 2024, we had more than 6,300 customers.
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.
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, sustainability management, and GRC together in a controlled, secure, audit-ready platform.
We believe this evolution in financial reporting processes will continue, which we expect will drive the need for expanded financial reporting solution capabilities including an increase in source data integrations, enhanced automations, an increase in cross-functional team collaboration, and integrated Gen-AI.
We believe this evolution in financial reporting processes will continue, which we expect will drive the need for expanded financial reporting solution capabilities including an increase in source data integrations, enhanced automations, an increase in cross-functional team collaboration, and integrated GenAI.
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.
We also engage third-party auditors to evaluate our controls against the service organization controls (“SOC”) compliance frameworks. Generative AI. Our GenAI capabilities seek to enhance the way finance, risk, and sustainability teams work, improving content creation, editing, and collaboration.
Our customers continuously find new use cases across their organizations, including Financial Planning and Analysis (“FP&A”), board/committee and quarterly reporting, C-Suite reporting, strategic business plans, financial statements, variance reports, monthly management reports, managing and tracking key performance indicators, data collection for domestic sales, performance reporting, and employee benefit financial statements. Environmental, Social, and Governance Reporting ESG Reporting.
Our customers continuously find new use cases across their organizations, including Financial Planning and Analysis (“FP&A”), board/committee and quarterly reporting, C-Suite reporting, strategic business plans, financial statements, variance reports, monthly management reports, managing and tracking key performance indicators, data collection for domestic sales, performance reporting, and employee benefit financial statements.
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.
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 sustainability management.
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.
We have invested more than $1.1 billion 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.
In addition to developing our platform for ESG reporting, we facilitate broader conversation and promote education and awareness through our ESG professional group, ESG education and training workshops at Amplify, webinars, blogs, an ESG Talk podcast, and our global ESG practitioner survey.
In addition to developing our platform for sustainability management, we facilitate broader conversation and promote education and awareness through our ESG professional group, sustainability education and training workshops at Amplify, webinars, blogs, an ESG Talk podcast, and our global sustainability practitioner survey.
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.
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. 7 Table of Contents Management Reporting.
The SEC also maintains a website that contains our SEC filings. The address of the site is www.sec.gov. 16 Table of Contents
The SEC also maintains a website that contains our SEC filings. The address of the site is www.sec.gov. 15 Table of Contents
We pay for employees to maintain professional certifications and licenses that are important to our customers, and we host regular company-wide employee education sessions on business, industry, technology and workplace topics. Intellectual Property Our intellectual property and proprietary rights are important to our business.
We pay for employees to maintain professional certifications and licenses that are important to our customers, and we host regular company-wide employee education sessions on business, industry, technology and workplace topics. 12 Table of Contents Intellectual Property Our intellectual property and proprietary rights are important to our business.
Detailed descriptions of the duties and responsibilities of each of our committees can be found in our most recent proxy statement. • An ESG Task Force led by our CFO to ensure forward progress of our ESG targets, and committed to alignment with the United Nations SDGs and the TCFD, GRI, SASB, and CDP.
Detailed descriptions of the duties and responsibilities of each of our committees can be found in our most recent proxy statement. 14 Table of Contents • A Sustainability Task Force led by our CFO to ensure forward progress of our sustainability targets, and committed to alignment with the United Nations SDGs and the TCFD, GRI, SASB, and CDP.
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.
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.
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.
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).
Our platform streamlines the ESG reporting process end-to-end, from data collection and management to final report.
Our platform streamlines the sustainability management 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.
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 CSRD in the E.U., and California’s Climate Corporate Data Accountability Act (SB-253) and Climate-Related Financial Risk Act (SB-261).
To date, such developments have not had a substantial adverse impact on our revenues, earnings or cash flows. However, if new or amended laws or regulations impose significant operational restrictions and compliance requirements upon us or our business, our capital expenditures, results of operations, financial condition and competitive position could be negatively impacted. Refer to Item 1A.
To date, such developments have not had a substantial adverse impact on our capital expenditures, results of operations, or competitive position. However, if new or amended laws or regulations impose significant operational restrictions and compliance requirements upon us or our business, our capital 13 Table of Contents expenditures, results of operations, or competitive position could be negatively impacted.
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. 6 Table of Contents Financial Reporting Global Statutory Reporting.
Fit-for-Purpose Solutions We market and sell over 30 fit-for-purpose solutions that are categorized into four reporting groups: financial reporting; sustainability management; GRC; and industry verticals. Financial Reporting Global Statutory Reporting.
Our platform creates a competitive advantage and positions us to win in the expanding business reporting market. Fit-for-Purpose Solutions. Workiva is the leading provider of cloud-based reporting solutions that are designed to solve financial and non-financial business challenges at the intersection of data, process and people. We are entering into new markets and geographies with an expanded solutions portfolio.
Our platform creates a competitive advantage and positions us to win in the expanding business reporting market. 3 Table of Contents Fit-for-Purpose Solutions. Workiva is the leading provider of cloud-based reporting solutions that are designed to solve financial and non-financial business challenges at the intersection of data, process and people.
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.
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. 5 Table of Contents Secure.
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.
Three solution groups that are part of this growth strategy are financial reporting, sustainability management, 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.
Increased Stakeholder Demands for ESG Data. We believe that stakeholder capitalism is increasing in importance and therefore it is more critical than ever for companies to be transparent and accountable not just to investors but to all stakeholders, including employees, customers, suppliers, partners and communities.
We believe that stakeholder capitalism is increasing in importance and therefore it is increasingly important for companies to be transparent and accountable not just to investors but to other stakeholders, including employees, customers, suppliers, partners and communities. Sustainability management is complex.
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.
We have experienced strong revenue growth since we released our first solution in March 2010. Our revenue grew to $738.7 million in 2024 from $537.9 million in 2022, representing a 17% compound annual growth rate. We incurred net losses of $55.0 million, $127.5 million, and $90.9 million during the years ended December 31, 2024, 2023, and 2022, respectively.
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.
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.
Each of our fit-for-purpose solutions helps in critical aspects of our customers’ digital transformation journeys and simplifies the complex work around reporting and disclosure. Remote and Hybrid Work Environments . We believe that remote and hybrid work are here to stay.
Each of our fit-for-purpose solutions helps in critical aspects of our customers’ finance transformation journeys and simplifies the complex work around reporting and disclosure. Remote and Hybrid Work Environments . To attract and retain talent in the marketplace of knowledge workers, enterprises are adopting more flexible work environments.
To meet these expectations, Workiva uses global compliance and voluntary frameworks as a springboard to move us towards a holistic ESG strategy, including materiality assessment, stakeholder engagement, targets, and initiatives, that connects with financial and sustainability opportunity and risk to drive value.
Refer to Item 1A. Risk Factors for further information. Corporate Sustainability Commitments We are committed to advancing our sustainable business practices. Workiva uses global compliance and voluntary frameworks as a springboard to move us towards a holistic sustainability strategy, including materiality assessment, stakeholder engagement, targets, and initiatives, that connects with financial and sustainability opportunity and risk to drive value.
Our highly skilled advisory and implementation partners offer a wide range of subject-matter expertise that broadens our platform’s capabilities and promotes Workiva as part of the digital transformation projects they implement for their customers. Our technology partners enable powerful data and process integrations that enable our customers to connect their existing ecosystem of solutions directly to our platform.
In 2024 , we continued to expand our ecosystem of partners, including global consulting firms, systems integration and technology firms, and leading regional consulting firms. Our highly skilled advisory and implementation partners offer a wide range of subject-matter expertise that broadens our platform’s capabilities and promotes Workiva as part of the digital transformation projects they implement for their customers.
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.
This assured integrated reporting results in data clarity and accuracy, increased efficiency, and outcomes customers can trust. Workiva provides more than 6,300 organizations across the globe with SaaS platform solutions to help solve some of the most complex reporting and disclosure challenges.
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.
We safeguard these rights through patents, trademarks, copyrights, trade secrets, and contractual protections across the U.S. and other jurisdictions. As of December 31, 2024, we had 86 issued patents and 13 patent applications pending relating to our platform or related technology.
Our customers use our platform to increase efficiency in documenting, implementing and assessing internal controls over financial reporting (“ICFR”) as required by SOX. SOX also requires public company Chief Executive Officers and Chief Financial Officers to individually certify that their annual and quarterly financial reports are accurate and complete and to assess the effectiveness of their ICFR.
SOX also requires public company Chief Executive Officers and Chief Financial Officers to individually certify that their annual and quarterly financial reports are accurate and complete and to assess the effectiveness of their ICFR.
We believe that by expanding our robust financial reporting capabilities and deepening our alignment to our other offerings such as ESG and GRC, there may be additional growth opportunities for Workiva. • 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.
We believe that by expanding our robust financial reporting capabilities and deepening our alignment to our other offerings such as sustainability management and GRC, there may be additional growth opportunities for Workiva. • Sustainability Management.
To attract and retain talent in the marketplace of knowledge workers, enterprises are responding to pressure to adopt more flexible work environments. Companies that manage a growing number of digital workplace employees are implementing collaborative technologies to streamline work processes and automate decision-making, actions and responses. Influx of disparate data sources.
Companies that manage a growing number of digital workplace employees are implementing collaborative technologies to streamline work processes and automate decision-making, actions and responses. Influx of disparate data sources. As organizations capture and collect more data in more systems, the assembly, aggregation, and consolidation of that data becomes more complex.
Our partners help to extend our customer reach through marketing and promotion and help accelerate the sale and delivery of our platform. Marketing Our marketing organization promotes our brand, generates demand for our offerings, and researches and assesses product market needs. Our advance planning team assesses customer needs, conducts industry-based research and identifies new markets.
Marketing Our marketing organization promotes our brand, generates demand for our offerings, and researches and assesses product market needs. Our advance planning team assesses customer needs, conducts industry-based research and identifies new markets. Our product marketing team develops the go-to-market strategy for Workiva solutions and manages pricing and licensing strategies.
Shift to the Cloud. Enterprises around the world have been shifting deployment of data management systems from on-premises to the cloud. A shift to the cloud started more than two decades ago with CRM and other front-office systems.
Shift to the Cloud. Enterprises around the world have been shifting deployment of data management systems from on-premises to the cloud.
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 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 believe the use of AI/ML must be guided by principles of fairness, transparency, accountability, and respect for privacy and security. Customers are using the Gen-AI capabilities to author new content quickly, refine, edit, and rewrite content, generate ideas and perspectives, and research with a thought partner on demand. Marketplace.
Customers are using the GenAI capabilities to author new content quickly, refine, edit, and rewrite content, generate ideas and perspectives, and research with a thought partner on demand. Marketplace.
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.
ISS ESG awards a prime status to companies which, according to their rating process, have been identified as sustainability leaders in their industry. • During 2024, we added 10 new innovation patents, bringing our total to 86. 2 Table of Contents Macro Trends Six macro trends have been driving demand for Workiva's platform: the shift to the cloud; finance transformation; remote and hybrid work; influx of disparate data sources; increased complexity of the regulatory environment; and increased stakeholder demands for sustainability data.
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.
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.
GRC is a broad market segment that can be defined by a number of solution areas including internal audit, internal controls, risk management, policy management, vendor risk, and IT risk. Risk Management is a high priority for CEOs and across boardrooms all over the globe.
We will continue to leverage what we believe is the superior sustainability management solution to grow our business. • Governance, Risk, and Compliance. GRC is a broad market segment that can be defined by a number of solution areas including internal audit, internal controls, risk management, policy management, vendor risk, and IT risk.
In 2023, we implemented our policy outlining the guidelines and principles for the responsible and ethical usage of AI and Machine Learning (ML) technologies within Workiva. This policy applies to all employees, contractors, partners, and other third parties who interact with or utilize AI/ML systems on behalf of their organizations.
This policy applies to all employees, contractors, partners, and other third parties who interact with or utilize AI/ML systems on behalf of their organizations. We believe the use of AI/ML must be guided by principles of fairness, transparency, accountability, and respect for privacy and security.
Our account managers work to attract new customers as well as expand our platform into new use cases and departments across our current customers’ organizations. Our customer success and professional services teams also help our account managers build our existing customer relationships by providing advice and best practices that enable users to harness the full power of our platform.
Our customer success and professional services teams also help our account managers build our existing customer relationships by providing advice and best practices that enable users to harness the full power of our platform. 11 Table of Contents We plan to continue strengthening our sales coverage in our current markets, as well as expand our sales footprint in locations where we see a demand for our solutions.
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.
To achieve this growth, we plan to continue hiring motivated sales people with experience in enterprise software sales and in specific geographical regions. 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.
As organizations capture and collect more data in more systems, the assembly, aggregation, and consolidation of that data becomes more complex. Integrating with and connecting to source systems and applications is one of the key requirements to address the technical complexity of reporting and disclosure, and is top of mind for the organizations we serve. Increased Regulatory Environment.
Integrating with and connecting to source systems and applications is a key requirement necessary to address the technical complexity of reporting and disclosure, and is a high priority for the organizations we serve. Increased Complexity of the Regulatory Environment. The global regulatory environment continues to expand in both scope and complexity leading to increasing demands for more data and disclosure.
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.
In 2024, we generated approximately 18% of our consolidated revenue from EMEA and APAC, and we expect these global markets to contribute an increasing percentage of total revenue. 4 Table of Contents Partner Ecosystem.
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.
Our customers are passionate, loyal supporters of our solutions, as demonstrated by our gross retention rate of 97.4% as of December 31, 2024. Our net retention rate was 111.9% as of December 31, 2024.
With the complex and sensitive work associated with financial reporting, ESG reporting, audit, and risk, responsible AI usage is paramount—particularly when it comes to data security, subject-matter expertise, and human oversight. Workiva’s generative AI experience brings productivity gains backed by ethical and responsible implementation.
With the complex and sensitive work associated with financial reporting, sustainability management, audit, and risk, responsible AI usage is paramount—particularly when it comes to data security, subject-matter expertise, and human oversight. In 2024, we refined and expanded our policy outlining the guidelines and principles for the responsible and ethical usage of AI and Machine Learning (“ML”) technologies within Workiva.
Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. Government Regulations We believe that our businesses and operations are in substantial compliance with all applicable government laws and regulations.
Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. Government Regulations Various U.S. federal and state, as well as foreign laws and regulations, including environmental regulations, applicable to us have become effective or are under consideration in many parts of the world.
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 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. 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.
Workiva’s fit-for-purpose ESG solution provides an effective platform to help organizations manage, collaborate, and disclose their ESG information to stakeholders. We will continue to leverage what we believe is the superior ESG reporting solution to grow our business. • Governance, Risk, and Compliance.
Sustainability-related information is beginning to appear in mainstream financial reports and we believe this trend will accelerate in the coming years. Workiva’s fit-for-purpose sustainability management solution provides an effective platform to help organizations manage, collaborate, and disclose their sustainability information to stakeholders.
Our product marketing team develops the go-to-market strategy for Workiva solutions and manages pricing and licensing strategies. The product marketing team also supports our sales team with playbooks that include profiles of typical buyers, key messages, value propositions, competitive analysis and sales strategies.
The product marketing team also supports our sales team with playbooks that include profiles of typical buyers, key messages, value propositions, competitive analysis and sales strategies. Our demand generation programs are categorized by technology solution and industry and are focused on engaging business leaders, process owners and technology teams.
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.
As of December 31, 2024, women represented approximately 43% of our global workforce and 38% of our leadership (director and above), and approximately 22% of our U.S. employees and 16% of our U.S. leadership (director and above) were from underrepresented racial/ethnic groups. Key human capital initiatives include talent acquisition, advancing workforce skills and capabilities, and employee engagement.
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.
Item 1. Business Overview Workiva’s mission is to power transparent reporting for a better world. We build solutions that unite data, processes and people across our customers’ critical business operations within the only unified software-as-a-service (“SaaS”) platform that brings customers’ financial reporting, sustainability management, and governance, risk, and compliance (“GRC”) data together in one controlled, secure, audit-ready platform.
In an increasingly transparent world, organizations across the globe are disclosing non-financial key performance indicators around environmental, social, and governance issues. ESG-related information is beginning to appear in mainstream financial reports and we believe this trend will accelerate in the coming years.
We believe sustainability represents a generational opportunity for growth and we plan to continue to accelerate our investments to meet stakeholders’ growing need for sustainability information. In an increasingly transparent world, organizations across the globe are disclosing non-financial key performance indicators around sustainability issues.
Many regulators have already or will be implementing structured data mandates, requiring companies to tag data in their financial statements using eXtensible Business Reporting Language (“XBRL”), which is a royalty-free, international standard designed specifically for digital reporting of financial, performance, risk and compliance information. XBRL provides a unique, machine-readable tag for individual disclosures within business reports.
Regulators are also demanding greater use of structured, machine-readable data in companies’ disclosures. Many regulators have already or will be implementing structured data mandates, requiring companies to tag data in their financial statements using eXtensible Business Reporting Language (“XBRL”). The Workiva platform has supported XBRL disclosures for more than 15 years. Increased Stakeholder Demands for Sustainability Data.
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.
Workiva offers market-competitive compensation and benefits to attract and retain highly motivated and effective employees. As of December 31, 2024, Workiva employed approximately 2,828 full-time people worldwide. Our headcount as of December 31, 2024 increased 12.0% from 2,526 full-time employees as of December 31, 2023. We strive to create a workplace where people feel welcomed, valued, respected, and heard.
Our demand generation programs are categorized by technology solution and industry and are focused on engaging business leaders, process owners and technology teams. We use a variety of marketing programs across traditional and social channels to target current and prospective customers.
We use a variety of marketing programs across traditional and social channels to target current and prospective customers. Our marketing team hosts virtual and in-person events to educate prospects and customers and generate demand for our solutions.
We control access to and use of our proprietary software and other confidential information through the use of internal and external controls, including contractual protections with employees, contractors, end-customers, and partners, and our software is protected by U.S. and international copyright laws.
We secure access to proprietary software and confidential information through internal controls and contracts with employees, contractors, and partners. Our software is protected under U.S. and international copyright laws. Despite these measures, unauthorized parties may still misuse our intellectual property. Protection outside the U.S. may also be limited, particularly as we expand internationally.
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 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. Third parties, including leading enterprise software companies, could accuse us of infringement or misappropriation. Our agreements often require us to indemnify customers in such cases.
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.
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.
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 the second quarter of 2024, Workiva was named a “Best of Breed” provider among GRC platforms by independent research firm, Chartis Research. We will continue to leverage our GRC leadership to grow our business. Global Expansion.
While the importance of digital transformation has been increasing in recent years, we believe that the pandemic accelerated that need and underscored the critical importance of collaborative cloud platforms for reporting and disclosure. As the world economy underwent increasing disruption, we believe that those companies that have embraced digital transformation were better able to maintain business continuity and improve productivity.
While the importance of finance transformation has been increasing in recent years, we believe that regulatory requirements such as the CSRD and other climate related regulations that require integrated reporting and the ERP upgrade cycle underscore the critical importance of collaborative cloud platforms for reporting and disclosure.
Workiva fosters a work environment that encourages fairness, teamwork, and respect among all employees. We value all backgrounds, beliefs and interests, and we recognize this diversity as an important source of our innovation and success. We believe that our culture of diversity, equity and inclusion increases employee engagement, empowerment, and satisfaction.
To promote innovation and employee excellence, Workiva fosters a work environment that encourages fairness, teamwork, and respect among all employees.
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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.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf 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.
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.
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. • 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.
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. • 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. 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 loss carryforwards to offset future taxable income may be subject to certain limitations.
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.
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. • Legislative and regulatory changes could adversely affect our business. • 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.
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.
In general, weakened global economic conditions, including those from inflation, tariffs, 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.
Since our customers use our solutions for important aspects of their business, any errors, defects, disruptions in access, security flaws, viruses, data corruption or other performance problems associated with our solutions could hurt our reputation and may damage our customers’ businesses.
Since our customers use our solutions for important aspects of their business, any errors, defects, bugs, disruptions in access, security flaws, viruses, data corruption or other performance problems associated with our solutions could hurt our reputation and may damage our customers’ businesses.
The trading price for shares of our Class A common stock has been, and is likely to continue to be, volatile for the foreseeable future. The market price of our Class A common stock may fluctuate in response to many risk factors listed in this section, and others beyond our control.
The trading price for shares of our Class A common stock has been, and is likely to continue to be, volatile for the foreseeable future. The trading price of our Class A common stock may fluctuate in response to many risk factors listed in this section, and others beyond our control.
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.
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.
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.
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 sustainability management, 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.
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.
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. 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. • 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.
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.
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. 35 Table of Contents Determining our income tax rate is complex and subject to uncertainty.
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.
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. 31 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.
Furthermore, as digital transformation accelerates across a customer’s enterprise, capabilities such as AI, machine learning, hyper automation, low-code/no-code application development, database scalability, consumer-grade user experiences, and collaboration become increasingly relevant to the customer’s evolving needs. The uncertainties about the timing and nature of new technologies, or modifications to existing platforms or technologies, could increase our research and development expenses.
Furthermore, as digital transformation accelerates across a customer’s enterprise, capabilities such as AI, ML, hyper automation, low-code/no-code application development, database scalability, consumer-grade user experiences, and collaboration become increasingly relevant to the customer’s evolving needs. The uncertainties about the timing and nature of new technologies, or modifications to existing platforms or technologies, could increase our research and development expenses.
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 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. 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.
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.
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. Risks Related to our Indebtedness The conditional conversion feature of our convertible senior notes may adversely affect our financial condition and operating results.
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.
Accordingly, the effect of any significant downturns in sales, 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. From time to time, we may be involved in disputes or regulatory inquiries that arise in the ordinary course of business.
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.
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.
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.
We have experienced, and may in the future experience, website disruptions, outages and other performance 30 Table of Contents 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.
New investors in subsequent transactions could gain rights, preferences and privileges senior to those of holders of our Class A common stock. The dual class structure of our common stock concentrates voting control with certain of our executives. Our Class B common stock has ten votes per share, and our Class A common stock has one vote per share.
New investors in subsequent transactions could gain rights, preferences and privileges senior to those of holders of our Class A common stock. The dual class structure of our common stock concentrates voting control with certain of our founding shareholders. Our Class B common stock has ten votes per share, and our Class A common stock has one vote per share.
These changes to the legal bases for transferring data from E.U. to the U.S. could affect the manner in which we provide our services or adversely affect our financial results. In addition to government activity, the technology industry and other industries are considering various new, additional or different self-regulatory standards that may place additional burdens on us.
These changes to the legal bases for transferring data from E.U. to the U.S. could affect the manner in which we provide our services or adversely affect our financial results. 32 Table of Contents In addition to government activity, the technology industry and other industries are considering various new, additional or different self-regulatory standards that may place additional burdens on us.
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 of our solutions to keep pace with technological changes or operate effectively with future network platforms and technologies could reduce the demand for our solutions, result in customer dissatisfaction and adversely affect our business.
Servicing our debt requires a significant amount of cash. Our ability to make scheduled payments of the principal of, to pay interest on or to refinance our current and future indebtedness, including our convertible senior notes, depends on our future performance.
Servicing our debt requires a significant amount of cash. Our ability to make scheduled payments of the principal of, to pay interest on or to refinance our current and future indebtedness, including our convertible senior notes, depends on our future 39 Table of Contents performance.
While we have historically maintained a subscription and support revenue retention rate of greater than 94%, we may be unable to maintain this historical rate and we may be unable to accurately predict our subscription and support revenue retention rate. In addition, our customers may renew for shorter contract lengths, lower prices or a reduced scope of service.
While we have historically maintained a gross retention rate of greater than 94%, we may be unable to maintain this historical rate and we may be unable to accurately predict our gross retention rate. In addition, our customers may renew for shorter contract lengths, lower prices or a reduced scope of service.
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.
We experienced revenue growth rates of 17% , 17% and 21% in fiscal 2024, 2023 and 2022, respectively. Our historical revenue growth rates are not indicative of future growth, and we may not achieve similar revenue growth rates in future periods.
Additionally, while we do not have material operations in 25 Table of Contents the Middle East, the current conflict in the Middle East and escalating tensions in the region may further disrupt global markets and impact the supply chains of our customers, leading to disruptions in our customers’ ability to conduct business and affecting their ability to pay for our solutions.
Additionally, while we do not have material operations in the Middle East, the ongoing 25 Table of Contents conflicts in the Middle East and escalating or persistent tensions in the region may further disrupt global markets and impact the supply chains of our customers, leading to disruptions in our customers’ ability to conduct business and affecting their ability to pay for our solutions.
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.
Any failure to offer high-quality technical support services may adversely affect our relationships with our customers. Once our solutions are deployed, our customers depend on our customer success organization to resolve technical issues relating to our solutions.
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 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 $55.0 million in fiscal 2024 , $127.5 million in fiscal 2023 and $90.9 million in fiscal 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.
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 2,526 employees as of December 31, 2023 to more than 2,800 employees as of December 31, 2024.
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.
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. 36 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, including due to factors outside of our control.
In addition, evolving market standards regarding ESG compliance and reporting may impact the demand for our solutions.
In addition, evolving market standards regarding sustainability compliance and reporting may also impact the demand for our solutions.
Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.
Our ability to use our net operating loss carryforwards to offset future taxable income may be subject to certain limitations.
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.
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 AI and ML), frequent product and service innovation and evolving industry standards.
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.
Although non-SEC solutions generated more than 75% of new solution and new customer bookings in 2024, it is uncertain whether they will achieve the level of market acceptance we have achieved in the SEC market.
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.
Any factor adversely affecting sales of our platform or solutions, including release cycles, market acceptance, competition, performance, information security, data protection or privacy concerns, reliability, reputation, regulatory developments, and political, 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.
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.
As of December 31, 2024, the Class B common stock beneficially owned by certain of our former executive officers collectively represented approximately 43% of the voting power of our 37 Table of Contents outstanding capital stock.
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.
New legislation, or a significant change in rules, regulations, directives, executive orders or standards, including as a result of legal challenges to proposed regulations, may pose challenges in responding quickly and effectively and could reduce demand for our products and services, increase 20 Table of Contents 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.
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.
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.
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.
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 ongoing conflict between Russia and Ukraine is continuing to weigh on global capital markets. Countries across the globe are continuing their sanctions and other penalties against Russia.
Furthermore, while our errors and omissions insurance policies include liability coverage for these matters, if we experienced a widespread security breach that impacted a significant number of our customers for whom we have these indemnity obligations, we could be subject to indemnity claims that exceed such coverage or increased costs for such insurance.
Furthermore, while our errors and omissions insurance policies include liability coverage for these matters, if we experienced a widespread security breach that impacted a significant number of our customers for whom we have these indemnity obligations, we could be subject to indemnity claims that exceed such coverage or increased costs for such insurance. 28 Table of Contents The success of our cloud-based software largely depends on our ability to provide reliable solutions to our customers .
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.
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.
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.
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.
Some companies, including some of our competitors, own large numbers of patents, copyrights and trademarks, which they may use to assert claims against us. As we grow and enter new markets, we will face a growing number of competitors.
In addition, our success depends upon our ability to refrain from infringing upon the intellectual property rights of others. Some companies, including some of our competitors, own large numbers of patents, copyrights and trademarks, which they may use to assert claims against us. As we grow and enter new markets, we will face a growing number of competitors.
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. • If there are substantial sales of shares of our Class A common stock or some or all of our convertible senior notes are converted and sold, the price of our Class A common stock could decline. • The dual class structure of our common stock concentrates voting control with certain of our executives. • 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. • We do not intend to pay dividends for the foreseeable future.
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, including due to factors outside of our control. • If there are substantial sales of shares of our Class A common stock or some or all of our convertible senior notes are converted and sold, the price of our Class A common stock could decline. • The dual class structure of our common stock concentrates voting control with certain of our founding shareholders. • 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 amount and frequency of our share repurchases may fluctuate, and we cannot guarantee that we will fully consummate our share repurchase authorization, or that it will enhance long-term shareholder value.
While we expect our professional services revenue to become less seasonal as our non-SEC offerings grow, a significant portion of our revenue may continue to reflect seasonality, which makes it difficult to predict our future operating results. Our solutions face intense competition in the marketplace.
While we expect our professional services revenue to become less seasonal as our non-SEC offerings grow, a significant portion of our revenue may continue to reflect seasonality, which makes it difficult to predict our future operating results. Legislative and regulatory changes could adversely affect our business.
In addition, we are a Delaware corporation and governed by the provisions of Section 203 of the Delaware General Corporation Law, which generally prohibits a Delaware corporation from engaging in any of a broad range of business combinations with any “interested” stockholder, in particular those owning 15% or more of our outstanding voting stock, for a period of three years following the date on which the stockholder became an “interested” stockholder.
In addition, we are a Delaware corporation and governed by the provisions of Section 203 of the Delaware General Corporation Law, which generally prohibits a Delaware corporation from engaging in any of a broad range of business combinations with any “interested” stockholder, in particular those owning 15% or more of our outstanding voting stock, for a period of three years following the date on which the stockholder became an “interested” stockholder. 38 Table of Contents The amount and frequency of our share repurchases may fluctuate, and we cannot guarantee that we will fully consummate our share repurchase authorization, or that it will enhance long-term shareholder value.
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.
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.
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.
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.
Furthermore, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property rights.
Furthermore, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property rights. Any failure to secure, protect and enforce our intellectual property rights could seriously adversely affect our brand and adversely impact our business.
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.
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.
If we are unable to provide enhancements and new features for our existing solutions or new solutions that achieve market acceptance or that keep pace with these technological developments, our business could be adversely affected. For example, we focus on enhancing the features of our platform to improve its utility for larger customers with complex, dynamic and global operations.
If we are unable to provide enhancements and new features for our existing solutions or new solutions that achieve market acceptance or that keep pace with these technological developments, our business could be adversely affected.
Even if we were to prevail in such a dispute, any litigation regarding our intellectual property could be costly and time-consuming and divert the attention of our management and key personnel from our business operations.
Even if we were to prevail in such a dispute, any litigation regarding our intellectual property could be costly and time-consuming and divert the attention of our management and key personnel from our business operations. 34 Table of Contents 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.
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. Some of our solutions include software covered by open source licenses, which may include, by way of example, GNU General Public License and the Apache License.
Some of our solutions include software covered by open source licenses, which may include, by way of example, GNU General Public License and the Apache License.
The success of our cloud-based software largely depends on our ability to provide reliable solutions to our customers. Because our solutions are complex and we continually release new features, our solutions could have errors, defects, viruses or security flaws that could result in unanticipated downtime for our subscribers and harm our reputation and our business.
Because our solutions are complex and we continually release new features, our solutions could have errors, defects, viruses or security flaws that we may not be able to detect and correct before customers begin to use our solutions. This could result in unanticipated downtime or issues with our solutions for our subscribers, which could harm our reputation and our 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. In addition, if the public becomes aware of a security breach of our solutions, our future business prospects could be adversely impacted.
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.
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.
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. 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.
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.
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.
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.
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.
The success of enhancements, new features and solutions depends on several factors, including the timely completion, introduction and market acceptance of the enhancements or new features or solutions.
For 29 Table of Contents example, we focus on enhancing the features of our platform to improve its utility for larger customers with complex, dynamic and global operations. The success of enhancements, new features and solutions depends on several factors, including the timely completion, introduction and market acceptance of the enhancements or new features or solutions.
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.
Moreover, investigations into our compliance with privacy-related obligations could increase our costs and divert management attention. 33 Table of Contents 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.
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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.
Added
Share repurchases could also increase the volatility of the trading price of our stock and will diminish our cash reserves. • We do not intend to pay dividends for the foreseeable future.
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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.
Added
Uncertainty caused by political change in the U.S. and Western Europe heightens regulatory uncertainty in these areas. In particular, the outcome of recent and upcoming elections in the U.S. and other jurisdictions may lead to changes in regulations or de-regulation, which could impact demand for our solutions.
Removed
However, unauthorized parties may attempt to copy or obtain and use our technology to develop products with the same functionality as our solutions.
Added
Recent executive orders and actions, and potential forthcoming executive orders, including orders regarding government contracting requirements, affirmative action compliance, and other requirements, may increase our compliance costs and risks and could impact our and our customers’ businesses.
Removed
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.
Added
If the company is deemed to have violated these executive orders and any related laws or regulations, it may jeopardize our revenue derived from government contracts. Government contracts generally can present risks and challenges not present in private commercial agreements.
Added
For instance, we may be subject to government audits and investigations relating to these contracts, we could be suspended or debarred as a governmental contractor, we could incur civil, criminal, and administrative fines and penalties, and under certain circumstances contracts may be rescinded.
Added
Some agreements may allow a government to terminate without cause and provide for higher liability limits for certain losses. Some contracts may be subject to periodic funding approval, reductions, cancellations, non-renewals, or delays which could adversely impact public-sector demand for our products and services.
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These events could negatively impact our financial condition, results of operations, reputation, and ability to procure other government contracts in the future. Various legislative bodies, regulators and administrative agencies around the world are putting into place regulatory disclosure requirements regarding climate change and sustainability reporting derived from standard frameworks.
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At the same time, U.S. regulators have increasingly expressed or pursued opposing views, legislation, and investment expectations with respect to sustainability initiatives, including through recent executive orders.
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A lack of harmonization of sustainability-related legal and regulatory environments across the jurisdictions in which we operate and failure to prepare for and meet evolving standards and expectations may create additional compliance risks and costs. Timing, and in particular, enforcement, of these disclosure requirements, including the level of third party assurance that will be required of companies, is uncertain.
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This uncertainty could affect the buying decisions of our prospects and customers, and therefore our revenue growth could be negatively impacted.
Added
In particular, the implementation by member states of the E.U.’s Corporate Sustainability Reporting Directive, which establishes extensive sustainability-related disclosure requirements based on the European Sustainability Reporting Standards, is still developing and uncertain, and this lack of certainty could have a material adverse effect on our business, financial condition and results of operations. Our solutions face intense competition in the marketplace.
Added
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.
Added
Even if we are able to implement corrections and bug fixes in a timely manner, any history of solution outages or defects, or the loss, damage or inadvertent release of confidential data could hurt our reputation. In addition, if the public becomes aware of a security breach of our solutions, our future business prospects could be adversely impacted.
Added
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. In particular, the European Union has implemented the General Data Protection Regulation (“GDPR”).
Added
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. As of December 31, 2024, we had 86 issued patents and 13 patent applications pending, and we expect to seek additional patents in the future.
Added
Additionally, the trading price of our Class A common stock may be significantly affected by the opinions, ratings, and reports issued by analysts, investors, media outlets or other market participants, including market sentiment, trends, or speculation, which can be difficult to predict or control.
Added
These opinions may be based on factors unrelated to our business fundamentals or may not fully reflect the complexities of our financial performance, strategic direction, or long-term prospects. Negative reports or downgrades by influential analysts or large institutional investors could result in downward pressure on our stock price, regardless of the underlying performance of our business.
Added
Conversely, while positive analyst opinions or upgrades may boost our stock price, they may not be sustainable or indicative of the company’s actual performance, potentially leading to additional volatility.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeRisk Factors, including in the risk factor entitled “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.” Governance The Board of Directors (the “Board”) has established oversight mechanisms designed to manage risks associated with cybersecurity threats. 41 Table of Contents Board of Directors Oversight The Board is composed of members who have diverse expertise including, risk and financial management, technology, cybersecurity and finance, equipping the Board to oversee cybersecurity risks effectively.
Biggest changeRisk Factors, including in the risk factor entitled “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.” Governance The Board of Directors (the “Board”) has established oversight mechanisms designed to manage risks associated with cybersecurity threats. 41 Table of Contents Board of Directors Oversight The Board is composed of members who have diverse expertise including, risk and financial management, technology, cybersecurity and finance, equipping the Board with the necessary skill set to effectively oversee cybersecurity risks.
Our risk management team works closely with our Information Technology and Information Security ( “ InfoSec ” ) departments to evaluate and address cybersecurity risks in alignment with our business objectives and operational needs. Our information security program incorporates data encryption and access control, single sign-on and multi-factor authentication, vulnerability management, and malware protection for both laptops and servers.
Our risk management team works closely with our Business Technology and Information Security ( “ InfoSec ” ) departments to evaluate and address cybersecurity risks in alignment with our business objectives and operational needs. Our information security program incorporates data encryption and access control, single sign-on and multi-factor authentication, vulnerability management, and malware protection for both laptops and servers.
In addition to our scheduled meetings, the CISO and Chief Executive Officer (“CEO”) inform and consult as appropriate with the Board regarding any significant developments in the cybersecurity domain. The CISO is continually informed about the latest developments in cybersecurity, including potential threats and innovative risk management techniques.
In addition to our scheduled meetings, the CISO and Chief Executive Officer inform and consult as appropriate with the Board regarding any significant developments in the cybersecurity domain. The CISO is continually informed about the latest developments in cybersecurity, including potential threats and innovative risk management techniques.
Our collaboration with these third-parties includes regular audits, threat assessments, and consultation on security enhancements. Overseeing Third-party Risk We require that all third-party vendors that have access to or handle sensitive information undergo a risk-based vendor security assessment.
Our collaboration with these third-parties includes regular audits, risk and vulnerability assessments, and consultation on security enhancements. Overseeing Third-Party Risk We require that all third-party vendors that have access to or handle sensitive information undergo a risk-based vendor security assessment.
During committee reports, the Audit Committee would apprise the full Board of any significant cybersecurity updates. These briefings encompass a broad range of topics, including: • Current cybersecurity landscape and emerging threats; • Status of ongoing cybersecurity initiatives and strategies; • Incident reports and knowledge gleaned from any cybersecurity events; and • Compliance with regulatory requirements and industry standards.
During committee reports, the Audit Committee apprises the full Board of any significant cybersecurity updates. These briefings encompass a broad range of topics, including: • Current cybersecurity landscape and emerging threats; • Status of ongoing cybersecurity initiatives and strategies; • Incident reports and knowledge gleaned from any cybersecurity events; and • Compliance with regulatory requirements and industry standards.
Item 1C. Cybersecurity Risk management and strategy We are subject to various cybersecurity risks that could adversely affect our business, financial condition, results of operation and reputation.
Item 1C. Cybersecurity Risk Management and Strategy We are subject to various cybersecurity risks that could adversely affect our business, financial condition, results of operations, and reputation.
The CISO implements and oversees processes for the regular monitoring of our information systems. This includes the deployment of security measures and regular system audits to identify potential vulnerabilities. In the event of a cybersecurity incident, the CISO is equipped with an incident response plan.
The CISO implements and oversees processes for the regular monitoring of our information systems. This includes the deployment of security controls and regular system audits to identify potential risks. In the event of a cybersecurity incident, the CISO is equipped with an incident response plan.
Added
Our CISO and other dedicated cybersecurity personnel are certified and experienced information systems security professionals and information security managers with decades of experience and industry certifications, including Certified Information Systems Security Professional; Offensive Security Certified Professional; Global Information Assurance Certification; Security Strategic Planning, Policy, and Leadership; and Certified Information Security Manager, among others.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 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.
Biggest changeItem 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 or contract with flexible workspace providers throughout the U.S. and internationally. We believe that our properties are generally suitable to meet our needs for the foreseeable future.
Removed
Internationally, 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 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeCompany/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
Biggest changeCompany/Index 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Workiva Inc. $ 100.00 $ 217.88 $ 310.32 $ 199.69 $ 241.45 $ 260.40 S&P 500 Index 100.00 118.48 152.59 125.01 157.88 197.47 NASDAQ Computer Index 100.00 151.35 209.81 135.68 227.23 311.42 Issuer Purchases of Equity Securities None. Item 6. [Reserved] 45 Table of Contents
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.
The chart assumes $100 was invested at the close of market on December 31, 2019, 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.
Stockholders 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.
Stockholders As of December 31, 2024, there were approximately 55 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.

Item 7. Management's Discussion & Analysis

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

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Biggest changeGeneral 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.
Biggest changeGeneral 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, travel 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, 2024 2023 2022 (in thousands) Revenue Subscription and support $ 667,646 $ 558,645 $ 464,935 Professional services 71,034 71,394 72,940 Total revenue 738,680 630,039 537,875 Cost of revenue Subscription and support (1) 118,697 99,193 77,711 Professional services (1) 53,358 55,029 52,174 Total cost of revenue 172,055 154,222 129,885 Gross profit 566,625 475,817 407,990 Operating expenses Research and development (1) 192,935 172,790 151,716 Sales and marketing (1) 347,243 287,035 245,260 General and administrative (1) 102,981 110,519 99,778 Total operating expenses 643,159 570,344 496,754 Loss from operations (76,534) (94,527) (88,764) Interest income 39,395 25,882 4,880 Interest expense (12,865) (53,639) (6,042) Other income and (expense), net 563 (1,814) 926 Loss before provision for income taxes (49,441) (124,098) (89,000) Provision for income taxes 5,601 3,427 1,947 Net loss $ (55,042) $ (127,525) $ (90,947) (1) Stock-based compensation expense included in these line items was as follows: Year ended December 31, 2024 2023 2022 (in thousands) Cost of revenue Subscription and support $ 7,979 $ 5,030 $ 3,437 Professional services 3,221 2,540 2,128 Operating expenses Research and development 21,036 18,441 12,554 Sales and marketing 35,339 27,774 19,323 General and administrative 34,575 44,980 33,218 Total stock-based compensation expense $ 102,150 $ 98,765 $ 70,660 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, 2024 2023 2022 Revenue Subscription and support 90.4% 88.7% 86.4% Professional services 9.6 11.3 13.6 Total revenue 100.0 100.0 100.0 Cost of revenue Subscription and support 16.1 15.7 14.4 Professional services 7.2 8.7 9.7 Total cost of revenue 23.3 24.4 24.1 Gross profit 76.7 75.6 75.9 Operating expenses Research and development 26.1 27.4 28.2 Sales and marketing 47.0 45.6 45.6 General and administrative 13.9 17.5 18.6 Total operating expenses 87.0 90.5 92.4 Loss from operations (10.3) (14.9) (16.5) Interest income 5.3 4.1 0.9 Interest expense (1.7) (8.5) (1.1) Other income and (expense), net 0.1 (0.3) 0.2 Loss before provision for income taxes (6.6) (19.6) (16.5) Provision for income taxes 0.8 0.5 0.4 Net loss (7.4) % (20.1) % (16.9) % Revenue Comparison of Years Ended December 31, 2024 and 2023 Year ended December 31, Period-to-period change 2024 2023 Amount % Change (dollars in thousands) Revenue Subscription and support $ 667,646 $ 558,645 $ 109,001 19.5% Professional services 71,034 71,394 (360) (0.5)% Total revenue $ 738,680 $ 630,039 $ 108,641 17.2% Total revenue increased $108.6 million in 2024 compared to 2023 due primarily to a $109.0 million increase in subscription and support revenue.
Research and Development Expenses Research and development expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, and stock-based compensation; costs of server usage by our developers; information technology costs; and facility costs.
Research and Development Expenses Research and development expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, travel and stock-based compensation; costs of server usage by our developers; information technology costs; and facility costs.
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”).
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, sustainability management, and GRC) focusing primarily on the office of the Chief Financial Officer (“CFO”), Chief Sustainability Officer (“CSO”), and Chief Audit Executive (“CAE”).
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.
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, 2024, 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.
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.
For each of the years ended December 31, 2024, 2023 and 2022, 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.
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.
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 the 2028 Notes, net of issuance costs, $12.5 million in proceeds from shares issued in connection with our ESPP, 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.
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.
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. 50 Table of Contents Professional Services Revenue . We believe our professional services facilitate the sale of our subscription service to certain customers.
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.
Workiva provides more than 6,300 organizations across the globe with SaaS platform solutions to help solve some of the most complex reporting and disclosure challenges.
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.
Cash used in investing activities of $357.3 million for the year ended December 31, 2023 consisted of $573.3 million in purchases of marketable securities and $2.1 million in purchases of fixed assets primarily for computer equipment in support of expanding our infrastructure and work force.
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.
During 2024 we recognized an additional $2.2 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 and travel, were primarily due to an increase in employee headcount as we continue to invest in our go-to-market activities.
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.
We intend to continue to build our sales and marketing organization and leverage our brand equity to attract new customers. 47 Table of Contents 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.
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.
We believe this expansion will add seats and revenue and continue to support our high retention rates. However, we expect that enterprise-wide deals will be larger and more complex, which tend to lengthen the sales cycle. Add Partners.
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.
We incurred net losses of $55.0 million and $127.5 million in 2024 and 2023, 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.
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.
We enter into certain non-cancelable agreements with third-party providers in the ordinary course of business. Our total commitments under these agreements are $156.4 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, 2022, filed with the SEC on February 21, 2023.
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, 2023, filed with the SEC on February 20, 2024.
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.
Additionally, we offer the only unified software-as-a-service (“SaaS”) platform that brings customers’ financial reporting, sustainability management, and Governance, Risk, and Compliance (“GRC”) together in a controlled, secure, audit-ready 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 2,526 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.
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 2,828 at December 31, 2024 from 2,526 at December 31, 2023, an increase of 12.0%. We have achieved significant revenue growth in recent periods.
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 expect reduced valuation multiples caused by higher interest rates, inflation, and geopolitical instability to create an uncertain impact on the number of IPOs in fiscal year 2025. 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.
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.
Growth in subscription and support revenue in 2024 was attributable mainly to strong demand and continued solution expansion across our customer base. The total number of our customers increased 4.5% from December 31, 2023 to December 31, 2024. Revenue from professional services was relatively flat in 2024 compared to 2023.
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.
Year ended December 31, 2024 2023 2022 Subscription and support revenue from customers with annual contract value of $100k+ as a percent of total subscription and support revenue 71.2% 66.3% 62.1% Subscription and support revenue from customers with annual contract value of $300k+ as a percent of total subscription and support revenue 35.7% 31.7% 27.6% Subscription and support revenue from customers with annual contract value of $500k+ as a percent of total subscription and support revenue 23.9% 21.5% 9.6% 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.
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.
Other income and (expense), net increased $2.4 million in 2024 compared to 2023 due primarily to gains on foreign currency transactions as well as losses on the sale of available-for-sale securities from 2023 which did not recur in 2024. 55 Table of Contents Results of Operations for Fiscal 2023 Compared to 2022 For a comparison of our results of operations for the fiscal years ended December 31, 2023 and 2022, see “Part II, Item 7.
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.
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.
As of December 31, 2023, we had outstanding debt relating to our 2026 Notes and 2028 Notes of $70.5 million and $691.9 million, with corresponding maturity dates of August 15, 2026 and August 15, 2028, respectively.
As of December 31, 2024, we had outstanding debt relating to our 2026 Notes and 2028 Notes of $70.8 million and $694.1 million, with corresponding maturity dates of August 15, 2026 and August 15, 2028, respectively.
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.
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, travel 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.
Cash provided by operating activities of $70.9 million for the year ended December 31, 2023 consisted of a net loss of $127.5 million adjusted for non-cash charges of $105.0 million, net cash inflows of $48.2 million from changes in operating assets and liabilities, and a $45.1 million adjustment for induced conversion expense associated with the repurchase of our convertible senior notes.
Cash provided by operating activities of $70.9 million for the year ended December 31, 2023 consisted of a net loss of $127.5 million adjusted for non-cash charges of $105.0 million and net cash inflows of $48.2 million from changes in operating assets and liabilities.
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 .
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, 2024 2023 2022 (dollars in thousands) Financial metrics Total revenue $ 738,680 $ 630,039 $ 537,875 Year-over-year percentage increase in total revenue 17.2% 17.1% 21.3% Subscription and support revenue $ 667,646 $ 558,645 $ 464,935 Year-over-year percentage increase in subscription and support revenue 19.5% 20.2% 22.6% Subscription and support as a percent of total revenue 90.4% 88.7% 86.4% As of December 31, 2024 2023 2022 Operating metrics Number of customers 6,305 6,034 5,664 Gross retention rate 97.4% 97.9% 97.8% Net retention rate 111.9% 110.3% 108.5% Number of customers with annual contract value $100k+ 2,055 1,631 1,345 Number of customers with annual contract value $300k+ 416 311 236 Number of customers with annual contract value $500k+ 181 137 101 Total customers .
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 accounts receivable, other assets, accounts payable, and accrued expenses and other liabilities, as well as the decreases in other receivables and prepaid expenses and other assets were attributable primarily to the timing of our billings, cash collections, and cash payments.
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.
Liquidity and Capital Resources Overview of Sources and Uses of Cash As of December 31, 2024, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $816.4 million, which were held for working capital purposes. We have financed our operations primarily through cash generated from operations and issuances of convertible debt.
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.
As of December 31, 2024, we have not made any repurchases under the 2024 Repurchase Plan. 56 Table of Contents Cash Flows The following table summarizes cash flow activity during the years ended December 31, 2024, 2023 and 2022 (in thousands): Year ended December 31, 2024 2023 2022 Cash flow provided by operating activities $ 87,706 $ 70,875 $ 11,334 Cash flow used in investing activities (45,249) (357,253) (68,012) Cash flow provided by (used in) financing activities 6,741 301,265 (1,587) Net increase (decrease) in cash, cash equivalents, and restricted cash, net of impact of exchange rates $ 45,629 $ 16,524 $ (60,189) Operating Activities Our largest source of operating cash is cash collections from customers for subscription and support access to our platform.
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 calculate our net retention rate 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.
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.
The increases in accounts receivable, other receivables and accrued expenses and other liabilities, and prepaid expenses and other assets were attributable primarily to the timing of our billings, cash collections, and cash payments.
We recognize revenue for document set ups when the service is complete and control has transferred to the customer.
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.
Our revenue grew to $630.0 million in 2023 from $537.9 million in 2022, an increase of 17.1%.
Our revenue grew to $738.7 million in 2024 from $630.0 million in 2023, an increase of 17.2%.
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”).
We calculate our gross retention rate based on all customers that were active at the end of the same calendar quarter of the prior year (“base customers”).
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.
Investing Activities Cash used in investing activities of $45.2 million for the year ended December 31, 2024 consisted of $402.2 million in purchases of marketable securities, $98.1 million for the acquisition of Sustain.Life, and $1.4 million in purchases of fixed assets partially offset by $452.0 million from the maturities of marketable securities and $4.6 million from the sale of marketable securities.
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.
The increases in professional service fees and marketing and advertising were the result of our continued investment in and support of our platform and solutions.
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.
The increases in professional service fees resulted primarily from our continued investment in and support of our platform and solutions. 54 Table of Contents Sales and Marketing Sales and marketing expenses increased $60.2 million in 2024 compared to 2023 due primarily to $36.0 million in higher cash-based compensation and benefits costs, $7.6 million of additional stock-based compensation, a $4.9 million increase in travel expense, a $5.5 million increase in professional service fees, and a $5.4 million increase in marketing and advertising.
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.
Operating Expenses Comparison of Years Ended December 31, 2024 and 2023 Year ended December 31, Period-to-period change 2024 2023 Amount % Change (dollars in thousands) Operating expenses Research and development $ 192,935 $ 172,790 $ 20,145 11.7% Sales and marketing 347,243 287,035 60,208 21.0% General and administrative 102,981 110,519 (7,538) (6.8)% Total operating expenses $ 643,159 $ 570,344 $ 72,815 12.8% Research and Development Research and development expenses increased $20.1 million in 2024 compared to 2023 due primarily to $13.9 million in higher cash-based compensation and benefits costs, $2.6 million of additional stock-based compensation, and a $3.0 million increase in professional service fees.
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.
Sales and marketing expense has historically been higher in the third quarter due to our annual user conference in September.
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.
Non-Operating Income (Expenses) Comparison of Years Ended December 31, 2024 and 2023 Year ended December 31, Period-to-period change 2024 2023 Amount (dollars in thousands) Interest income $ 39,395 $ 25,882 $ 13,513 Interest expense (12,865) (53,639) 40,774 Other income and (expense), net 563 (1,814) 2,377 Interest income increased $13.5 million in 2024 compared to 2023 due primarily to an increase in our investment balance, facilitated by the issuance of our 2028 convertible notes (the "2028 Notes"), coupled with higher interest rates.
Interest expense increased in 2023 compared to 2022 due primarily to a $45.1 million loss on induced conversion from the partial repurchase of our convertible senior notes due in 2026.
We recorded a $45.1 million loss on induced conversion from the partial repurchase of our 2026 Notes in the third quarter of 2023 which did not recur in 2024 and contributed primarily to the decrease in interest expense compared to the same period a year ago.
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.
During 2024 we recognized an additional $1.0 million in cash-based and stock-based compensation pursuant to certain severance obligations. The remaining increase in compensation was primarily due to a modest increase in employee headcount.
Cash provided by operating activities of $11.3 million for the year ended December 31, 2022 consisted of a net loss of $90.9 million offset by non-cash charges of $83.9 million and net cash inflows of $18.3 million from changes in operating assets and liabilities. Customer growth accounted for most of the increase in deferred revenue.
Cash provided by operating activities of $87.7 million for the year ended December 31, 2024 consisted of a net loss of $55.0 million adjusted for non-cash charges of $103.2 million and net cash inflows of $39.6 million from changes in operating assets and liabilities.
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.
The increases in compensation and software expense resulted primarily from our continued investment in and support of our platform and solutions. The increase in travel expense was due to a general increase in travel driven by an increase in employee headcount. Amortization of acquired intangible assets for Sustain.Life was $1.1 million.
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.
General and Administrative General and administrative expenses decreased $7.5 million in 2024 compared to 2023, due primarily to a $10.5 million decrease in stock-based compensation partially offset by a $2.9 million increase in professional service fees.
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.
We continue to transition consulting and other services to our partners and 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, 2024 and 2023 Year ended December 31, Period-to-period change 2024 2023 Amount % Change (dollars in thousands) Cost of revenue Subscription and support $ 118,697 $ 99,193 $ 19,504 19.7% Professional services 53,358 55,029 (1,671) (3.0)% Total cost of revenue $ 172,055 $ 154,222 $ 17,833 11.6% Cost of revenue increased $17.8 million in 2024 compared to 2023.
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.
We believe that our success in maintaining a high rate of retention is attributable primarily to our robust technology platform and strong customer service. Customers whose securities were deregistered due to merger or acquisition or financial distress accounted for just under half of our revenue attrition in the latest quarter. 49 Table of Contents Net retention rate .
Cash 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.
Contractual Obligations and Commitments The following table represents our contractual obligations as of December 31, 2024, 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 $ 809,944 $ 9,576 $ 89,593 $ 710,775 $ — Operating leases including imputed interest 16,723 5,577 5,956 3,102 2,088 Finance leases, including interest 21,290 1,315 2,630 2,630 14,715 Other contractual commitments 156,408 46,601 55,807 54,000 — Total contractual obligations $ 1,004,365 $ 63,069 $ 153,986 $ 770,507 $ 16,803 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 $36.7 million.
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.
The decrease in stock-based compensation is primarily due to the recognition of $1.4 million and $18.1 million in cash-based and stock-based compensation, respectively, pursuant to certain transition agreements with former executives during the first quarter of 2023 which did not recur in 2024, partially offset by a modest increase in employee headcount and an increase in performance-based restricted stock expense driven by additional performance-based restricted stock awards issued to executives in 2024 and changes in the assumptions associated with the attainment of company-specific performance targets.
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 believe our net retention rate is an important metric to measure the long-term value of customer agreements and our ability to retain our customers. Our net retention rate was 111.9% as of the year ended December 31, 2024, up from 110.3% as of December 31, 2023. Annual contract value.
Removed
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.
Added
Effects of Policy Uncertainty on Sales of Sustainability Solutions Sales of our sustainability management solutions, including Workiva Carbon Reporting, could be materially impacted by domestic and global policy uncertainties.
Removed
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.
Added
Risks relating to shifts in regulatory priorities and newly emerging trends due to changes in the U.S. presidential administration, and the outcome of other global elections, and risks relating to legal challenges to sustainability-related rules and regulations, may affect our market expansion opportunities in the U.S. and abroad.
Removed
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.
Added
For example, amendments to the European Union’s Corporate Sustainability Reporting Directive (“CSRD”) standards used to identify and collect the information and data, with different implementation dates depending on the company size and geographic location, are still developing and uncertain.
Removed
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.
Added
That regulatory uncertainty could limit compliance obligations or requirements, could slow market adoption and may reduce or delay the growth of our sustainability solutions. The extent of this policy uncertainty, and its potential impact on our growth trajectory, cannot be accurately predicted.
Removed
The decrease in sales tax expense was related to a goods and services tax refund which is not expected to recur.
Added
Companies with publicly-listed securities account for a substantial majority of our customers. As customers acquired through our Sustain.Life acquisition in 2024 renew their contracts with Workiva, they are added to our customer count above. Gross retention rate . Our gross retention rate is based on subscription and support revenue.
Removed
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.
Added
We believe gross retention rates are an important metric to track how the Company retains its base revenue for each year. Our gross retention rate was 97.4% as of December 31, 2024, down from 97.9% as of December 31, 2023.
Removed
These uses of cash were partially offset by $153.4 million from the maturities of marketable securities and $65.1 million from the sale of marketable securities.
Added
Our net retention rate is based on subscription and support revenue, and includes revenue from up-selling or cross-selling additional solutions, and pricing changes for existing customers and securing multi-year contracts renewals containing periodic pricing term increases.
Added
As customers acquired through our Sustain.Life acquisition in 2024 renew their contracts with Workiva, they are incorporated into our ACV metrics in the following table.
Added
Subscription and support cost of revenue increased $19.5 million due primarily to $12.6 million in higher cash-based compensation and benefits costs due in part to increased headcount, $3.0 million of additional stock-based compensation, a $0.6 million increase in travel expense, and a $1.5 million increase in software expense.
Added
Professional services cost of revenue decreased $1.7 million due primarily to a $1.8 million decrease in cash-based compensation and benefits costs and a $0.6 million decrease in professional service fees, partially offset by $0.7 million of additional stock-based compensation as we continue to transition consulting and other services to our partners.
Added
In addition, during 2023 we recorded a one-time benefit of $1.0 million related to a goods and services tax refund as well as one-time fees of $0.6 million related to event cancellations which did not recur in 2024.
Added
The increase in professional service fees was primarily due to costs incurred to acquire Sustain.Life.
Added
Share Repurchase Plan On July 30, 2024, our board of directors authorized a share repurchase program for up to $100.0 million of our outstanding Class A common stock (the “2024 Repurchase Plan”).
Added
The repurchases may be made in the open market or through privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means, each in compliance with Rule 10b-18 under the Exchange Act.
Added
The timing, manner, price, and amount of the repurchase will be subject to the discretion of the Company’s management, and it may be suspended or discontinued at any time.
Added
The change in operating assets and liabilities was driven by an increase in deferred revenue which was primarily due to timing of billings and growth in our customer base. The increase in deferred costs was primarily due to growth in subscription bookings and commission plan achievement at year-end.
Added
The adjustments for non-cash charges included a $45.1 million loss on induced conversion from the partial repurchase of our 2026 Notes. The change in operating assets and liabilities was driven by an increase in deferred revenue which was primarily due to customer growth.
Added
These uses of cash were partially offset by $153.4 million from the maturities of marketable securities as well as $65.1 million from the sale of marketable securities. 57 Table of Contents Financing Activities Cash provided by financing activities of $6.7 million for the year ended December 31, 2024 consisted of $13.8 million in proceeds from shares issued in connection with our Employee Stock Purchase Plan (“ESPP”) and $4.9 million in proceeds from option exercises partially offset by $11.5 million in taxes paid related to net share settlements of stock-based compensation awards.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+0 added−0 removed14 unchanged
Biggest changeForeign 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.
Biggest changeForeign currency transaction gains (losses) are included in net loss and were $551,000, $(1,154,000), and $835,000 in the years ended December 31, 2024, 2023 and 2022, respectively.
A 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.
A 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 Sterling, 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. 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.
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 $3.9 million market value reduction in our investment portfolio as of December 31, 2024.
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.
Interest Rate Sensitivity We had cash, cash equivalents and marketable securities totaling $816.4 million as of December 31, 2024. 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.

Other WK 10-K year-over-year comparisons