Workiva Inc. Class A

Good afternoon, ladies and gentlemen. My name is Kellyanne. I'll be your host operator on this call. After the prepared comments, we will conduct a question and answer session. Instructions will be provided at that time. If any time during the conference you need to reach an operator, please press the star key followed by the digit zero. Please note that this call is being recorded on May 3rd, 2022 at 5 p.m. Eastern time. I would now like to turn the meeting over to your host for today's call, Mike Rost, Senior Vice President of Corporate Development and Investor Relations at Workiva. Please go ahead.

Good afternoon, and thank you for joining us for Workiva's first quarter conference call. During today's call, we will review our first quarter 2022 results and discuss our guidance for the second quarter and full year 2022. Today's call has been prerecorded and will include comments from our Chief Executive Officer, Marty Vander Plauw, followed by our Chief Financial Officer, Jill Clint. We will then open the call up for a live Q&A session. Julie Isco, our President and Chief Operating Officer, is also on the call. A replay of this webcast will be available until May 12, 2022. Information to access the replay is listed in today's press release, which is available on our website under the Investor Relations section. Before we begin, I would like to remind everyone that during today's call, we will be making forward-looking statements regarding future events and financial performance, including guidance for the second quarter and full fiscal year 2022. These forward-looking statements are subject to known and unknown risks and uncertainties. Workiva cautions that these statements are not guarantees of future performance. All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call. Please refer to the company's annual report on Form 10-K and subsequent filings for factors that could cause our actual results to differ materially from any forward-looking statements. Also, during the course of today's call, we will refer to certain non-GAAP financial measures. Reconciliations of non-GAAP-to-GAAP measures and certain additional information are also included in today's press release. With that, we'll begin by turning the call over to our CEO, Marty Vander Plauw.

Hello, and thank you for joining today's call. The Rekiva team delivered a solid quarter and continued to execute at a high level, once again delivering financial results above our guidance. We beat the high end of our Q1 guidance in revenue and operating results. In Q1, we outperformed in multiple solution areas, including our GRC, GSR, and ESG solutions. For the quarter, subscription and support revenue grew 26.1%, and total revenue grew 24.4%. We had strong new logo growth, adding 93 net new logos and delivering a 27% increase from Q1 2021 in the number of customers with contract values over $100,000. We also achieved our highest revenue retention rate of 97.7%. The current global macroeconomic and geopolitical environment has led to volatility in the public markets. We did see a significant reduction in the number of IPOs in Q1. As a result, new sales of our capital markets and SEC solutions were impacted. Even with these global challenges, we are still on track to meet our guidance for this year, which Jill will talk about later in the call. We remain confident in the resiliency of our business and the future growth opportunities across our solution portfolio. Workiva's mission is to power transparent reporting for a better world, and we believe that we have the team and the technology to expand in our large and relatively unaddressed TAM. The SEC's new proposed climate-related disclosure requirements is a perfect example of our growing opportunity. The proposed mandate would require the following. The disclosure of climate-related risks, governance, financial impacts, and greenhouse gas emissions. Assurance for greenhouse gas emissions for accelerated and large accelerated filers and an inline XPREL tagging requirement. The addition of a financial statement footnote for climate related financial statement metrics and climate disclosures that would be subject to assurance and external audit review. These proposed regulations send a strong signal that investors and regulators want accurate, transparent investor grade disclosures. The Workiva platform enables our SEC and ESG solutions to work in tandem so customers can easily create audit-ready disclosures and file directly with the SEC. At Workiva, we use a continuous release cycle and deliver new enhancements across our single-instance multi-tenant platform. This enables our R&D teams to remain focused on rapidly developing technology and capabilities that create customer value and deeper customer engagement. A few of our recent platform enhancements include an ESG Explorer for framework management. Reporting teams can now quickly access and explore disclosure guidelines from internationally recognized ESG frameworks such as SASB, TCFD, and the UN SDGs and GRI to make informed decisions and identify material disclosures and metrics. We also recently made multiple enhancements to our GRC solutions to extend Workiva's leadership position. We released new capabilities for GRC data management and data connectivity that better enable GRC teams to evaluate account adjustments and manage risk-related data modifications, all with real-time data. Our partners continue to make investments to expand their Workiva practices. We had a number of large partner-related wins during the quarter. The European division of a Big Four advisory firm invested in the Workiva GSR solution to support their managed service that delivers statutory reporting services to their clients. This was a replacement of a legacy technology vendor. Another example is a large European energy service provider that engaged with both a Big Four firm and a regional partner in their selection of Workiva to support a financial reporting transformation project. This new Workiva client purchased multiple solutions, including ESF, GSR, and management reporting. These two deals are examples of the trends we see across our growing partner ecosystem. The purchase of multiple solutions, larger deal sizes, and the delivery of services by our partners. On April 1st, we acquired Parsport, a leading ESF financial reporting provider, that has been delivering XBRL conversion software in Europe for more than a decade. Their solutions help organizations quickly and efficiently file XBRL reports. We are excited to welcome this talented team to Workiva and extend our global XBRL leadership. Last month, Workiva was named the Fortune's 100 Best Companies to Work For for the fourth consecutive year. This year, we moved up 41 spots, coming in at number 20. This award celebrates the world-class culture we've created at Workiva. It is a testament to our employees' commitment to our values and the way they support our customers, communities, and each other. In closing, we are pleased with our first quarter performance. We believe we have the right team, the right technology at the right time to capitalize on the increasing global opportunities to power transparent reporting for a better world. With that, I will turn the call over to Jill.