Earnings To Watch: Workiva (WK) Reports Q2 Results Tomorrow

WK Cover Image

financial and compliance reporting software company Workiva (NYSE: WK) will be reporting earnings this Thursday after market close. Here’s what to look for.

Workiva beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $206.3 million, up 17.4% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly. It added 24 enterprise customers paying more than $100,000 annually to reach a total of 2,079.

Is Workiva a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Workiva’s revenue to grow 17.7% year on year to $208.9 million, improving from the 14.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.

Workiva Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Workiva has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.4% on average.

Looking at Workiva’s peers in the finance and hr software segment, only Paychex has reported results so far. It missed analysts’ revenue estimates by 1.1%, delivering year-on-year sales growth of 10.2%. The stock was down 7.4% on the results.

Read our full analysis of Paychex’s earnings results here.

There has been positive sentiment among investors in the finance and hr software segment, with share prices up 2.4% on average over the last month. Workiva is down 1.7% during the same time and is heading into earnings with an average analyst price target of $97.10 (compared to the current share price of $67.31).

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