10-Q 1 wk-20210930.htm 10-Q wk-20210930
Q3000144530512/312021FALSE0.0124756P2Y00014453052021-01-012021-09-30xbrli:shares0001445305us-gaap:CommonClassAMember2021-10-290001445305us-gaap:CommonClassBMember2021-10-29iso4217:USD00014453052021-09-3000014453052020-12-31iso4217:USDxbrli:shares0001445305us-gaap:CommonClassAMember2021-09-300001445305us-gaap:CommonClassAMember2020-12-310001445305us-gaap:CommonClassBMember2021-09-300001445305us-gaap:CommonClassBMember2020-12-310001445305us-gaap:LicenseAndServiceMember2021-07-012021-09-300001445305us-gaap:LicenseAndServiceMember2020-07-012020-09-300001445305us-gaap:LicenseAndServiceMember2021-01-012021-09-300001445305us-gaap:LicenseAndServiceMember2020-01-012020-09-300001445305wk:ProfessionalServicesMember2021-07-012021-09-300001445305wk:ProfessionalServicesMember2020-07-012020-09-300001445305wk:ProfessionalServicesMember2021-01-012021-09-300001445305wk:ProfessionalServicesMember2020-01-012020-09-3000014453052021-07-012021-09-3000014453052020-07-012020-09-3000014453052020-01-012020-09-300001445305us-gaap:CommonStockMember2020-12-310001445305us-gaap:AdditionalPaidInCapitalMember2020-12-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001445305us-gaap:RetainedEarningsMember2020-12-310001445305us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100014453052021-01-012021-03-310001445305us-gaap:CommonStockMember2021-01-012021-03-310001445305us-gaap:RetainedEarningsMember2021-01-012021-03-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001445305us-gaap:CommonStockMember2021-03-310001445305us-gaap:AdditionalPaidInCapitalMember2021-03-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001445305us-gaap:RetainedEarningsMember2021-03-3100014453052021-03-310001445305us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000014453052021-04-012021-06-300001445305us-gaap:CommonStockMember2021-04-012021-06-300001445305us-gaap:RetainedEarningsMember2021-04-012021-06-300001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001445305us-gaap:CommonStockMember2021-06-300001445305us-gaap:AdditionalPaidInCapitalMember2021-06-300001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001445305us-gaap:RetainedEarningsMember2021-06-3000014453052021-06-300001445305us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001445305us-gaap:CommonStockMember2021-07-012021-09-300001445305us-gaap:RetainedEarningsMember2021-07-012021-09-300001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001445305us-gaap:CommonStockMember2021-09-300001445305us-gaap:AdditionalPaidInCapitalMember2021-09-300001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001445305us-gaap:RetainedEarningsMember2021-09-300001445305us-gaap:CommonStockMember2019-12-310001445305us-gaap:AdditionalPaidInCapitalMember2019-12-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001445305us-gaap:RetainedEarningsMember2019-12-3100014453052019-12-310001445305us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100014453052020-01-012020-03-310001445305us-gaap:CommonStockMember2020-01-012020-03-310001445305us-gaap:RetainedEarningsMember2020-01-012020-03-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001445305us-gaap:CommonStockMember2020-03-310001445305us-gaap:AdditionalPaidInCapitalMember2020-03-310001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001445305us-gaap:RetainedEarningsMember2020-03-3100014453052020-03-310001445305us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-3000014453052020-04-012020-06-300001445305us-gaap:CommonStockMember2020-04-012020-06-300001445305us-gaap:RetainedEarningsMember2020-04-012020-06-300001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001445305us-gaap:CommonStockMember2020-06-300001445305us-gaap:AdditionalPaidInCapitalMember2020-06-300001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001445305us-gaap:RetainedEarningsMember2020-06-3000014453052020-06-300001445305us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001445305us-gaap:CommonStockMember2020-07-012020-09-300001445305us-gaap:RetainedEarningsMember2020-07-012020-09-300001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001445305us-gaap:CommonStockMember2020-09-300001445305us-gaap:AdditionalPaidInCapitalMember2020-09-300001445305us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001445305us-gaap:RetainedEarningsMember2020-09-3000014453052020-09-300001445305us-gaap:MoneyMarketFundsMember2021-09-300001445305us-gaap:CommercialPaperMember2021-09-300001445305us-gaap:USTreasurySecuritiesMember2021-09-300001445305us-gaap:CorporateDebtSecuritiesMember2021-09-300001445305us-gaap:ForeignGovernmentDebtSecuritiesMember2021-09-300001445305us-gaap:CashAndCashEquivalentsMember2021-09-300001445305wk:MarketableSecuritiesMember2021-09-300001445305us-gaap:MoneyMarketFundsMember2020-12-310001445305us-gaap:CommercialPaperMember2020-12-310001445305us-gaap:USTreasurySecuritiesMember2020-12-310001445305us-gaap:CorporateDebtSecuritiesMember2020-12-310001445305us-gaap:ForeignGovernmentDebtSecuritiesMember2020-12-310001445305us-gaap:CashAndCashEquivalentsMember2020-12-310001445305wk:MarketableSecuritiesMember2020-12-310001445305us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001445305us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001445305us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001445305us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001445305us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001445305us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-12-310001445305us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001445305us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001445305us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001445305us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001445305us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001445305us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMember2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMember2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2020-12-310001445305us-gaap:FairValueMeasurementsRecurringMemberwk:MarketableSecuritiesMember2021-09-300001445305us-gaap:FairValueMeasurementsRecurringMemberwk:MarketableSecuritiesMember2020-12-310001445305us-gaap:FairValueInputsLevel2Member2021-09-300001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2019-08-31xbrli:pure0001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026OverAllotmentOptionMember2019-08-310001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2019-08-012019-08-310001445305us-gaap:CommonClassAMember2019-08-31wk:day0001445305wk:DebtConversionTermsOneMemberus-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2019-08-012019-08-310001445305wk:DebtConversionTermsTwoMemberus-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2019-08-012019-08-310001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2021-01-012021-09-300001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2021-09-300001445305us-gaap:ConvertibleDebtMemberwk:OnePointOneTwoFivePercentConvertibleSeniorNotesDue2026Member2020-12-3100014453052021-07-310001445305us-gaap:LicenseAndServiceMemberus-gaap:CostOfSalesMember2021-07-012021-09-300001445305us-gaap:LicenseAndServiceMemberus-gaap:CostOfSalesMember2020-07-012020-09-300001445305us-gaap:LicenseAndServiceMemberus-gaap:CostOfSalesMember2021-01-012021-09-300001445305us-gaap:LicenseAndServiceMemberus-gaap:CostOfSalesMember2020-01-012020-09-300001445305wk:ProfessionalServicesMemberus-gaap:CostOfSalesMember2021-07-012021-09-300001445305wk:ProfessionalServicesMemberus-gaap:CostOfSalesMember2020-07-012020-09-300001445305wk:ProfessionalServicesMemberus-gaap:CostOfSalesMember2021-01-012021-09-300001445305wk:ProfessionalServicesMemberus-gaap:CostOfSalesMember2020-01-012020-09-300001445305us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300001445305us-gaap:ResearchAndDevelopmentExpenseMember2020-07-012020-09-300001445305us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-300001445305us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-09-300001445305us-gaap:SellingAndMarketingExpenseMember2021-07-012021-09-300001445305us-gaap:SellingAndMarketingExpenseMember2020-07-012020-09-300001445305us-gaap:SellingAndMarketingExpenseMember2021-01-012021-09-300001445305us-gaap:SellingAndMarketingExpenseMember2020-01-012020-09-300001445305us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001445305us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-09-300001445305us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001445305us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-09-3000014453052020-01-012020-12-310001445305us-gaap:RestrictedStockUnitsRSUMember2020-12-310001445305us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001445305us-gaap:RestrictedStockUnitsRSUMember2021-09-300001445305us-gaap:EmployeeStockMemberus-gaap:CommonClassAMember2021-01-012021-09-300001445305us-gaap:EmployeeStockMember2021-09-300001445305us-gaap:EmployeeStockMember2021-01-012021-09-300001445305us-gaap:TechnologySectorMember2021-07-012021-09-300001445305us-gaap:TechnologySectorMember2020-07-012020-09-300001445305us-gaap:TechnologySectorMember2021-01-012021-09-300001445305us-gaap:TechnologySectorMember2020-01-012020-09-300001445305wk:DiversifiedFinancialsSectorMember2021-07-012021-09-300001445305wk:DiversifiedFinancialsSectorMember2020-07-012020-09-300001445305wk:DiversifiedFinancialsSectorMember2021-01-012021-09-300001445305wk:DiversifiedFinancialsSectorMember2020-01-012020-09-300001445305wk:ConsumerDiscretionarySectorMember2021-07-012021-09-300001445305wk:ConsumerDiscretionarySectorMember2020-07-012020-09-300001445305wk:ConsumerDiscretionarySectorMember2021-01-012021-09-300001445305wk:ConsumerDiscretionarySectorMember2020-01-012020-09-300001445305us-gaap:HealthcareSectorMember2021-07-012021-09-300001445305us-gaap:HealthcareSectorMember2020-07-012020-09-300001445305us-gaap:HealthcareSectorMember2021-01-012021-09-300001445305us-gaap:HealthcareSectorMember2020-01-012020-09-300001445305us-gaap:CommercialAndIndustrialSectorMember2021-07-012021-09-300001445305us-gaap:CommercialAndIndustrialSectorMember2020-07-012020-09-300001445305us-gaap:CommercialAndIndustrialSectorMember2021-01-012021-09-300001445305us-gaap:CommercialAndIndustrialSectorMember2020-01-012020-09-300001445305us-gaap:FinancialServicesSectorMember2021-07-012021-09-300001445305us-gaap:FinancialServicesSectorMember2020-07-012020-09-300001445305us-gaap:FinancialServicesSectorMember2021-01-012021-09-300001445305us-gaap:FinancialServicesSectorMember2020-01-012020-09-300001445305wk:InsuranceSectorMember2021-07-012021-09-300001445305wk:InsuranceSectorMember2020-07-012020-09-300001445305wk:InsuranceSectorMember2021-01-012021-09-300001445305wk:InsuranceSectorMember2020-01-012020-09-300001445305wk:EnergySectorMember2021-07-012021-09-300001445305wk:EnergySectorMember2020-07-012020-09-300001445305wk:EnergySectorMember2021-01-012021-09-300001445305wk:EnergySectorMember2020-01-012020-09-300001445305wk:UtilitySectorMember2021-07-012021-09-300001445305wk:UtilitySectorMember2020-07-012020-09-300001445305wk:UtilitySectorMember2021-01-012021-09-300001445305wk:UtilitySectorMember2020-01-012020-09-300001445305us-gaap:RealEstateSectorMember2021-07-012021-09-300001445305us-gaap:RealEstateSectorMember2020-07-012020-09-300001445305us-gaap:RealEstateSectorMember2021-01-012021-09-300001445305us-gaap:RealEstateSectorMember2020-01-012020-09-300001445305wk:MaterialsSectorMember2021-07-012021-09-300001445305wk:MaterialsSectorMember2020-07-012020-09-300001445305wk:MaterialsSectorMember2021-01-012021-09-300001445305wk:MaterialsSectorMember2020-01-012020-09-300001445305wk:OtherSectorMember2021-07-012021-09-300001445305wk:OtherSectorMember2020-07-012020-09-300001445305wk:OtherSectorMember2021-01-012021-09-300001445305wk:OtherSectorMember2020-01-012020-09-300001445305wk:XBRLProfessionalServicesMember2021-07-012021-09-300001445305wk:XBRLProfessionalServicesMember2020-07-012020-09-300001445305wk:XBRLProfessionalServicesMember2021-01-012021-09-300001445305wk:XBRLProfessionalServicesMember2020-01-012020-09-300001445305wk:OtherServicesMember2021-07-012021-09-300001445305wk:OtherServicesMember2020-07-012020-09-300001445305wk:OtherServicesMember2021-01-012021-09-300001445305wk:OtherServicesMember2020-01-012020-09-3000014453052021-10-012021-09-3000014453052022-10-012021-09-300001445305us-gaap:CommonClassAMember2021-07-012021-09-300001445305us-gaap:CommonClassBMember2021-07-012021-09-300001445305us-gaap:CommonClassAMember2020-07-012020-09-300001445305us-gaap:CommonClassBMember2020-07-012020-09-300001445305us-gaap:CommonClassAMember2021-01-012021-09-300001445305us-gaap:CommonClassBMember2021-01-012021-09-300001445305us-gaap:CommonClassAMember2020-01-012020-09-300001445305us-gaap:CommonClassBMember2020-01-012020-09-300001445305us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001445305us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001445305us-gaap:RestrictedStockMember2021-01-012021-09-300001445305us-gaap:RestrictedStockMember2020-01-012020-09-300001445305us-gaap:EmployeeStockMember2021-01-012021-09-300001445305us-gaap:EmployeeStockMember2020-01-012020-09-300001445305us-gaap:ConvertibleDebtSecuritiesMember2021-01-012021-09-300001445305us-gaap:ConvertibleDebtSecuritiesMember2020-01-012020-09-300001445305wk:OneCloudIncMember2021-07-302021-07-3000014453052021-07-3000014453052021-07-302021-07-300001445305wk:OneCloudIncMember2021-07-300001445305wk:OneCloudIncMember2021-01-012021-09-300001445305us-gaap:TechnologyBasedIntangibleAssetsMember2021-01-012021-09-300001445305us-gaap:TechnologyBasedIntangibleAssetsMember2021-09-300001445305us-gaap:TechnologyBasedIntangibleAssetsMember2020-12-310001445305us-gaap:CustomerRelationshipsMember2021-01-012021-09-300001445305us-gaap:CustomerRelationshipsMember2021-09-300001445305us-gaap:CustomerRelationshipsMember2020-12-310001445305us-gaap:TradeNamesMember2021-01-012021-09-300001445305us-gaap:TradeNamesMember2021-09-300001445305us-gaap:TradeNamesMember2020-12-310001445305us-gaap:PatentsMember2021-01-012021-09-300001445305us-gaap:PatentsMember2021-09-300001445305us-gaap:PatentsMember2020-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 10-Q
___________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For transition period from               to
Commission File Number 001-36773
___________________________________
WORKIVA INC.
(Exact name of registrant as specified in its charter)
___________________________________
Delaware
(State or other jurisdiction of incorporation or organization)
47-2509828
(I.R.S. Employer Identification Number)
2900 University Blvd
Ames, IA 50010
(888) 275-3125
(Address of principal executive offices and zip code)
(888) 275-3125
(Registrant's telephone number, including area code)
___________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A common stock, par value $.001WKNew York Stock Exchange
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ý No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer    ý
Accelerated filer o
Non-accelerated filer    o
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes  No ý
As of October 29, 2021, there were approximately 45,151,293 shares of the registrant's Class A common stock and 5,710,181 shares of the registrant's Class B common stock outstanding.



WORKIVA INC.
TABLE OF CONTENTS
Page
i

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this Quarterly Report on Form 10-Q are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical facts, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020, in “Item 1A. Risk Factors” in Part II of this Quarterly Report on Form 10-Q and in any subsequent filing we make with the SEC, as well as in any documents incorporated by reference that describe risks and factors that could cause results to differ materially from those projected in these forward-looking statements.
Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We are under no duty to update any of these forward-looking statements after completion of this Quarterly Report on Form 10-Q to conform these statements to actual results or revised expectations.
ii

Part I. Financial Information
Item 1.     Financial Statements
    
WORKIVA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
As of September 30, 2021As of December 31, 2020
(unaudited)
ASSETS
Current assets
Cash and cash equivalents$291,125 $322,831 
Marketable securities231,224 207,207 
Accounts receivable, net of allowance for doubtful accounts of $555 and $717 at September 30, 2021 and December 31, 2020, respectively
64,099 68,922 
Deferred commissions28,021 21,923 
Other receivables3,354 3,155 
Prepaid expenses and other13,092 9,047 
Total current assets630,915 633,085 
Property and equipment, net28,490 29,365 
Operating lease right-of-use assets14,536 15,844 
Deferred commissions, non-current29,234 23,421 
Goodwill34,279  
Intangible assets, net8,193 1,583 
Other assets4,568 3,708 
Total assets$750,215 $707,006 
1

WORKIVA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(in thousands, except share and per share amounts)
As of September 30, 2021As of December 31, 2020
(unaudited)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable
$4,018 $2,843 
Accrued expenses and other current liabilities
78,799 68,256 
Deferred revenue
235,754 208,990 
Convertible senior notes, current296,341  
Finance lease obligations1,776 1,705 
Total current liabilities616,688 281,794 
Convertible senior notes, net 289,490 
Deferred revenue, non-current
31,463 35,894 
Other long-term liabilities
1,335 1,680 
Operating lease liabilities, non-current15,231 17,209 
Finance lease obligations, non-current15,320 16,662 
Total liabilities680,037 642,729 
Stockholders’ equity
Class A common stock, $0.001 par value per share, 1,000,000,000 shares authorized, 45,094,257 and 40,719,189 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively
45 41 
Class B common stock, $0.001 par value per share, 500,000,000 shares authorized, 5,710,181 and 8,069,610 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively
6 8 
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding
  
Additional paid-in-capital
508,025 478,698 
Accumulated deficit
(438,106)(414,700)
Accumulated other comprehensive income
208 230 
Total stockholders’ equity70,178 64,277 
Total liabilities and stockholders’ equity$750,215 $707,006 
See accompanying notes.
2

WORKIVA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Three months ended September 30,Nine months ended September 30,
2021202020212020
Revenue
Subscription and support$98,912 $75,850 $275,053 $214,907 
Professional services13,781 12,249 47,449 42,853 
Total revenue112,693 88,099 322,502 257,760 
Cost of revenue
Subscription and support15,606 12,013 42,906 36,264 
Professional services10,799 9,873 31,766 30,262 
Total cost of revenue26,405 21,886 74,672 66,526 
Gross profit86,288 66,213 247,830 191,234 
Operating expenses
Research and development29,841 23,956 84,305 70,458 
Sales and marketing46,026 35,487 128,586 106,874 
General and administrative18,390 13,642 52,795 46,564 
Total operating expenses94,257 73,085 265,686 223,896 
Loss from operations(7,969)(6,872)(17,856)(32,662)
Interest income219 471 834 2,832 
Interest expense(3,508)(3,500)(10,495)(10,467)
Other income (expense), net3,805 (387)3,265 263 
Loss before (benefit) provision for income taxes(7,453)(10,288)(24,252)(40,034)
(Benefit) provision for income taxes(885)67 (846)351 
Net loss$(6,568)$(10,355)$(23,406)$(40,385)
Net loss per common share:
Basic and diluted$(0.13)$(0.21)$(0.46)$(0.84)
Weighted-average common shares outstanding - basic and diluted51,441,688 48,840,131 50,921,612 48,188,183 

See accompanying notes.

3

WORKIVA INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands)
(unaudited)
Three months ended September 30,Nine months ended September 30,
2021202020212020
Net loss$(6,568)$(10,355)$(23,406)$(40,385)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment, net of tax22 30 226 (51)
Unrealized (loss) gain on available-for-sale securities, net of tax(18)(211)(248)251 
Other comprehensive income (loss), net of tax4 (181)(22)200 
Comprehensive loss$(6,564)$(10,536)$(23,428)$(40,185)

See accompanying notes.

4

WORKIVA INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(in thousands)
(unaudited)
Common Stock (Class A and B)
SharesAmountAdditional Paid-in-CapitalAccumulated Other Comprehensive IncomeAccumulated DeficitTotal Stockholders' Equity
Balances at December 31, 202048,789 $49 $478,698 $230 $(414,700)$64,277 
Stock-based compensation expense— — 11,623 — — 11,623 
Issuance of common stock upon exercise of stock options312 1 4,137 — — 4,138 
Issuance of common stock under employee stock purchase plan93 — 4,237 — — 4,237 
Issuance of restricted stock units803 — — — — — 
Tax withholding related to net share settlements of stock-based compensation awards(70)— (7,146)— — (7,146)
Net loss— — — — (7,324)(7,324)
Other comprehensive loss— — — (49)— (49)
Balances at March 31, 202149,927 $50 $491,549 $181 $(422,024)$69,756 
Stock-based compensation expense— — 11,052 — — 11,052 
Issuance of common stock upon exercise of stock options117  1,480 — — 1,480 
Issuance of restricted stock units318 — — — — — 
Tax withholding related to net share settlements of stock-based compensation awards(8)— (731)— — (731)
Net loss— — — — (9,514)(9,514)
Other comprehensive income— — — 23 — 23 
Balances at June 30, 202150,354 $50 $503,350 $204 $(431,538)$72,066 
Stock-based compensation expense12,68712,687 
Issuance of common stock upon exercise of stock options20013,1733,174 
Issuance of common stock under employee stock purchase plan564,6244,624 
Issuance of restricted stock units305— 
Tax withholding related to net share settlements of stock-based compensation awards(111)(15,809)(15,809)
Net loss(6,568)(6,568)
Other comprehensive income44 
Balances at September 30, 202150,804$51 $508,025 $208 $(438,106)$70,178 
5

WORKIVA INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (continued)
(in thousands)
(unaudited)
Common Stock (Class A and B)
SharesAmountAdditional Paid-in-CapitalAccumulated Other Comprehensive IncomeAccumulated DeficitTotal Stockholders' Equity
Balances at December 31, 201946,639 $47 $420,170 $287 $(366,302)$54,202 
Stock-based compensation expense— — 9,936 — — 9,936 
Issuance of common stock upon exercise of stock options225 2,794 — — 2,794 
Issuance of common stock under employee stock purchase plan94 — 3,660 — — 3,660 
Issuance of restricted stock units117 — — — — — 
Tax withholding related to net share settlements of stock-based compensation awards(30)— (1,379)— — (1,379)
Net loss— — — — (10,418)(10,418)
Other comprehensive loss— — — (9)— (9)
Balances at March 31, 202047,045 $47 $435,181 $278 $(376,720)$58,786 
Stock-based compensation expense— — 14,894 — — 14,894 
Issuance of common stock upon exercise of stock options443  6,664 — — 6,664 
Issuance of restricted stock units153 — — — — — 
Tax withholding related to net share settlements of stock-based compensation awards(21)— (732)— — (732)
Net loss— — — — (19,612)(19,612)
Other comprehensive income— — — 390 — 390 
Balances at June 30, 202047,620 $47 $456,007 $668 $(396,332)$60,390 
Stock-based compensation expense— — 10,601 — — 10,601 
Issuance of common stock upon exercise of stock options371 1 4,794 — — 4,795 
Issuance of common stock under employee stock purchase plan93 — 3,567 — — 3,567 
Issuance of restricted stock units47 — — — — — 
Net loss— — — — (10,355)(10,355)
Other comprehensive income— — — (181)— (181)
Balances at September 30, 202048,131 $48 $474,969 $487 $(406,687)$68,817 

See accompanying notes.
6

WORKIVA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three months ended September 30,Nine months ended September 30,
2021202020212020
Cash flows from operating activities
Net loss$(6,568)$(10,355)$(23,406)$(40,385)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization1,429 1,080 3,580 3,195 
Stock-based compensation expense12,687 10,601 35,362 35,431 
Recovery of doubtful accounts(61)(550)(162)(191)
Amortization of premiums and discounts on marketable securities, net811 106 2,199 319 
Gain on settlement of equity securities(3,698) (3,698) 
Amortization of debt discount and issuance costs2,301 2,231 6,851 6,641 
Deferred income tax(930)63 (914)(68)
Changes in assets and liabilities:
Accounts receivable2,074 (13,307)5,233 4,805 
Deferred commissions(2,027)(4,818)(12,104)(6,381)
Operating lease right-of-use asset985 1,019 2,906 2,992 
Other receivables(628)224 (204)29 
Prepaid expenses and other(1,024)(211)(4,049)(3,056)
Other assets(514)83 (1,197)(600)
Accounts payable478 (181)1,214 (3,255)
Deferred revenue9,949 16,182 22,028 11,314 
Operating lease liability(1,112)(1,115)(3,390)(3,438)
Accrued expenses and other liabilities2,161 6,822 10,327 12,538 
Net cash provided by operating activities16,313 7,874 40,576 19,890 
Cash flows from investing activities
Purchase of property and equipment(771)(379)(2,431)(1,763)
Purchase of marketable securities(48,213)(7,980)(143,085)(45,269)
Sale of marketable securities  250 11,423 
Maturities of marketable securities45,579 16,300 116,371 42,337 
Business combinations, net of cash acquired(35,067) (35,067) 
Purchase of intangible assets(64)(102)(187)(253)
Other investments  (750) 
Net cash (used in) provided by investing activities(38,536)7,839 (64,899)6,475 
7

WORKIVA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in thousands)
(unaudited)
Three months ended September 30,Nine months ended September 30,
2021202020212020
Cash flows from financing activities
Proceeds from option exercises3,174 4,795 8,792 14,253 
Taxes paid related to net share settlements of stock-based compensation awards(15,809) (23,686)(2,111)
Proceeds from shares issued in connection with employee stock purchase plan4,624 3,567 8,861 7,227 
Principal payments on finance lease obligations(430)(410)(1,271)(1,212)
Net cash (used in) provided by financing activities(8,441)7,952 (7,304)18,157 
Effect of foreign exchange rates on cash(405)346 (79)(132)
Net (decrease) increase in cash and cash equivalents(31,069)24,011 (31,706)44,390 
Cash and cash equivalents at beginning of period322,194 402,121 322,831 381,742 
Cash and cash equivalents at end of period$291,125 $426,132 $291,125 $426,132 
Supplemental cash flow disclosure
Cash paid for interest$2,177 $2,240 $4,607 $4,787 
Cash paid for income taxes, net of refunds$36 $84 $(30)$469 
Supplemental disclosure of noncash investing and financing activities
Allowance for tenant improvements$ $ $ $149 

See accompanying notes.

8

WORKIVA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies
Organization
Workiva Inc., a Delaware corporation, and its wholly-owned subsidiaries (the “Company” or “we” or “us”) simplifies complex work for thousands of organizations worldwide. We are a leading provider of cloud-based compliance and regulatory reporting solutions that are designed to solve business challenges at the intersection of data, process and people. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe, the Asia-Pacific region and Canada.
Basis of Presentation and Principles of Consolidation
The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2020 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results expected for the full year ending December 31, 2021.
Seasonality has affected our revenue, expenses and cash flows from operations. Revenue from professional services has been higher in the first quarter as many of our customers file their Form 10-K in the first calendar quarter. Our sales and marketing expense also has some degree of seasonality. Sales and marketing expense has historically been higher in the third quarter due to our annual user conference in September. Our transition to a virtual event in September 2020 and September 2021 has mostly mitigated this trend. 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. The condensed consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC on February 17, 2021.
The unaudited condensed consolidated financial statements include the accounts of Workiva Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
9

Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, goodwill, income taxes, discount rates used in the valuation of right-of-use assets and lease liabilities, the fair value of the liability and equity components of the convertible senior notes, and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates.
Recently Adopted Accounting Pronouncements
In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which was issued to simplify the accounting for income taxes by removing certain exceptions for recognizing deferred taxes, performing intraperiod allocation, and calculating income taxes in interim periods. Further, ASU 2019-12 adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax basis goodwill and allocating taxes to members of a consolidated group. The standard became effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The standard provides different transition methods for the various provisions. Effective January 1, 2021, we adopted this standard. The adoption of this new standard did not have a material impact on our consolidated financial statements.
New Accounting Pronouncements Not Yet Adopted
In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity's own equity, and modifies the guidance on diluted earnings per share (“EPS”) calculations as a result of these changes. The standard will be effective for us beginning January 1, 2022 and can be applied on either a fully retrospective or modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 15, 2020. We intend to adopt this standard using the modified retrospective method on January 1, 2022 and are currently evaluating its impact on our consolidated financial statements.
10

2. Supplemental Consolidated Balance Sheet Information
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
As of September 30, 2021As of December 31, 2020
Accrued vacation$11,876 $10,294 
Accrued commissions6,975 12,678 
Accrued bonuses16,579 6,573 
Accrued payroll3,013 2,631 
Estimated health insurance claims1,605 1,224 
Accrued interest485 1,455 
ESPP employee contributions2,941 4,269 
Customer deposits24,592 18,283 
Operating lease liabilities4,233 4,541 
Accrued other liabilities6,500 6,308 
$78,799 $68,256 

3. Cash Equivalents and Marketable Securities
At September 30, 2021, cash equivalents and marketable securities consisted of the following (in thousands):
Amortized Cost
Unrealized Gains
Unrealized Losses
Aggregate Fair Value
Money market funds$253,079 $— $— $253,079 
Commercial paper12,487   12,487 
U.S. treasury debt securities52,755 4 (28)52,731 
Corporate debt securities160,945 64 (41)160,968 
Foreign government debt securities5,037 1  5,038 
$484,303 $69 $(69)$484,303 
Included in cash and cash equivalents$253,079 $— $— $253,079 
Included in marketable securities$231,224 $69 $(69)$231,224 
At December 31, 2020, cash equivalents and marketable securities consisted of the following (in thousands):
Amortized Cost
Unrealized Gains
Unrealized Losses
Aggregate Fair Value
Money market funds$265,578 $— $— $265,578 
Commercial paper21,489   21,489 
U.S. treasury debt securities51,731 80 (2)51,809 
Corporate debt securities147,715 214 (47)147,882 
Foreign government debt securities1,025 2  1,027 
$487,538 $296 $(49)$487,785 
Included in cash and cash equivalents$280,578 $— $— $280,578 
Included in marketable securities$206,960 $296 $(49)$207,207 

11

The contractual maturities of the investments classified as marketable securities are as follows (in thousands):
As of September 30, 2021
Due within one year$134,115 
Due in one to two years95,098 
Due in three to five years2,011 
$231,224 
The following table presents gross unrealized losses and fair values for those cash equivalents and marketable securities that were in an unrealized loss position as of September 30, 2021, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands):
As of September 30, 2021
Less than 12 months
12 months or greater
Fair Value
Unrealized Loss
Fair Value
Unrealized Loss
U.S. treasury debt securities$34,768 $(28)$ $ 
Corporate debt securities73,864 (41)  
Total$108,632 $(69)$ $ 
We do not believe the unrealized losses represent credit losses based on our evaluation of available evidence as of September 30, 2021, which includes an assessment of whether it is more likely than not we will be required to sell the investment before recovery of the investment's amortized cost basis.
4. Fair Value Measurements
We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:
Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.
Level 3 - Inputs are unobservable inputs based on our assumptions.
12

Financial Assets
Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets.
When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. As of September 30, 2021, all of our marketable securities were valued using quoted prices for comparable instruments in active markets and are classified as Level 2.
Based on our valuation of our money market funds and marketable securities, we concluded that they are classified in either Level 1 or Level 2, and we have no financial assets measured using Level 3 inputs. The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands):
Fair Value Measurements as of September 30, 2021Fair Value Measurements as of December 31, 2020
Description
Total
Level 1
Level 2
Total
Level 1
Level 2
Money market funds$253,079 $253,079 $ $265,578 $265,578 $ 
Commercial paper12,487  12,487 21,489  21,489 
U.S. treasury debt securities52,731  52,731 51,809  51,809 
Corporate debt securities160,968  160,968 147,882  147,882 
Foreign government debt securities5,038  5,038 1,027  1,027