Cloud reporting platform Workiva (NYSE: WK) will be announcing earnings results this Tuesday after the bell. Here’s what to look for.
Workiva beat analysts’ revenue expectations last quarter, reporting revenues of $238.9 million, up 19.5% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations. It added 135 enterprise customers paying more than $100,000 annually to reach a total of 2,507.
Is Workiva a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Workiva’s revenue to grow 18.8% year on year, improving from the 17.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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.
Looking at Workiva’s peers in the finance and hr software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Paychex delivered year-on-year revenue growth of 19.9%, beating analysts’ expectations by 1.5%, and Asure Software reported revenues up 22.7%, topping estimates by 2.1%. Paychex traded up 3.3% following the results while Asure Software was also up 1.1%.
Read our full analysis of Paychex’s results here and Asure Software’s results here.
There has been positive sentiment among investors in the finance and hr software segment, with share prices up 8.7% on average over the last month. Workiva is down 8.1% during the same time and is heading into earnings with an average analyst price target of $88.27 (compared to the current share price of $54.91).
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