Annual Statements Open main menu

WORKIVA INC - Quarter Report: 2019 September (Form 10-Q)


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, 2019
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 November 4, 2019, there were approximately 37,820,028 shares of the registrant's Class A common stock and 8,640,596 shares of the registrant's Class B common stock outstanding.



WORKIVA INC.
TABLE OF CONTENTS
Page
i

Table of Contents
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, 2018, 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

Table of Contents
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, 2019As of December 31, 2018
(unaudited)
ASSETS
Current assets
Cash and cash equivalents$389,124  $77,584  
Marketable securities95,644  20,764  
Accounts receivable, net of allowance for doubtful accounts of $890 and $956 at September 30, 2019 and December 31, 2018, respectively
43,590  65,107  
Deferred commissions12,740  8,178  
Other receivables1,651  1,181  
Prepaid expenses8,148  4,417  
Total current assets550,897  177,231  
Property and equipment, net40,292  41,468  
Operating lease right-of-use assets15,917  —  
Deferred commissions, non-current13,940  10,569  
Intangible assets, net1,795  1,266  
Other assets3,920  577  
Total assets$626,761  $231,111  
1

Table of Contents
WORKIVA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(in thousands, except share and per share amounts)
As of September 30, 2019As of December 31, 2018
(unaudited) 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) 
Current liabilities
Accounts payable
$4,895  $5,461  
Accrued expenses and other current liabilities
47,302  36,353  
Deferred revenue
156,352  148,545  
Current portion of financing obligations
1,295  1,222  
Total current liabilities209,844  191,581  
Convertible senior notes, net278,422  —  
Deferred revenue, non-current
31,467  25,171  
Other long-term liabilities
1,387  6,891  
Operating lease liabilities, non-current19,273  —  
Financing obligations, non-current
16,234  17,208  
Total liabilities556,627  240,851  
Stockholders’ equity (deficit) 
Class A common stock, $0.001 par value per share, 1,000,000,000 shares authorized, 37,780,966 and 34,498,391 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively
38  34  
Class B common stock, $0.001 par value per share, 500,000,000 shares authorized, 8,640,596 and 9,545,596 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively
 10  
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding
—  —  
Additional paid-in-capital
408,656  297,145  
Accumulated deficit
(338,863) (307,027) 
Accumulated other comprehensive income
294  98  
Total stockholders’ equity (deficit) 70,134  (9,740) 
Total liabilities and stockholders’ equity (deficit)$626,761  $231,111  
See accompanying notes.
2

Table of Contents
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,
2019201820192018
Revenue
Subscription and support$63,022  $51,306  $179,617  $146,613  
Professional services11,157  9,567  38,009  33,296  
Total revenue74,179  60,873  217,626  179,909  
Cost of revenue
Subscription and support10,924  8,139  30,935  25,578  
Professional services10,827  7,520  31,029  22,888  
Total cost of revenue21,751  15,659  61,964  48,466  
Gross profit52,428  45,214  155,662  131,443  
Operating expenses
Research and development22,899  19,984  66,705  60,829  
Sales and marketing32,990  24,068  86,568  67,326  
General and administrative12,017  11,864  33,626  45,286  
Total operating expenses67,906  55,916  186,899  173,441  
Loss from operations  (15,478) (10,702) (31,237) (41,998) 
Interest income1,460  341  2,593  843  
Interest expense(1,959) (448) (2,832) (1,347) 
Other income (expense), net 24  (138) (259) 195  
Loss before provision for income taxes  (15,953) (10,947) (31,735) (42,307) 
Provision for income taxes  98  17  101  43  
Net loss  $(16,051) $(10,964) (31,836) (42,350) 
Net loss per common share:  
Basic and diluted$(0.34) $(0.25) $(0.69) $(0.98) 
Weighted-average common shares outstanding - basic and diluted46,731,663  43,973,428  46,048,037  43,359,939  

See accompanying notes.


3

Table of Contents
WORKIVA INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands)
(unaudited)
Three months ended September 30,Nine months ended September 30,
2019201820192018
Net loss  $(16,051) $(10,964) $(31,836) $(42,350) 
Other comprehensive income, net of tax  
Foreign currency translation adjustment, net of income tax expense of $11 and $5 for the three months ended September 30, 2019 and 2018, respectively, and net of income tax expense of $16 and $5 for the nine months ended September 30, 2019 and 2018, respectively
19  (10) 34  21  
Unrealized gain (loss) on available-for-sale securities, net of income tax benefit (expense) of $(10) and $1 for the three months ended September 30, 2019 and 2018, respectively, and net of income tax benefit (expense) of $(51) and $1 for the nine months ended September 30, 2019 and 2018, respectively
43  22  162  (6) 
Other comprehensive income, net of tax  62  12  196  15  
Comprehensive loss  $(15,989) $(10,952) $(31,640) $(42,335) 

See accompanying notes.


4

Table of Contents
WORKIVA INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
(in thousands)
(unaudited)
Common Stock (Class A and B)
SharesAmountAdditional Paid-in-CapitalAccumulated Other Comprehensive IncomeAccumulated DeficitTotal Stockholders' Equity (Deficit)
Balances at December 31, 201844,044$44  $297,145  $98  $(307,027) $(9,740) 
Stock-based compensation expense8,1938,193  
Issuance of common stock upon exercise of stock options961111,05411,055  
Issuance of common stock under employee stock purchase plan1012,1492,149  
Issuance of restricted stock units25—  
Tax withholding related to net share settlements of stock-based compensation awards(10)(390)(390) 
Net loss(7,463)(7,463) 
Other comprehensive income5252  
Balances at March 31, 201945,121$45  $318,151  $150  $(314,490) $3,856  
Stock-based compensation expense8,5138,513  
Issuance of common stock upon exercise of stock options45515,4975,498
Issuance of restricted stock units323
Net loss(8,322)(8,322)
Other comprehensive income8282
Balances at June 30, 201945,899$46  $332,161  $232  $(322,812) $9,627  
Stock-based compensation expense9,2239,223  
Issuance of common stock upon exercise of stock options40115,9395,940  
Issuance of common stock under employee stock purchase plan872,7732,773  
Issuance of restricted stock units35—  
Equity component of convertible senior notes, net58,56058,560  
Net loss(16,051)(16,051) 
Other comprehensive income6262  
Balances at September 30, 201946,422$47  $408,656  $294  $(338,863) $70,134  
5

Table of Contents
WORKIVA INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)(continued)
(in thousands)
(unaudited)
Common Stock (Class A and B)
SharesAmountAdditional Paid-in-CapitalAccumulated Other Comprehensive IncomeAccumulated DeficitTotal Stockholders' Deficit
Balances at December 31, 201742,369$42  $248,289  $72  $(265,337) $(16,934) 
Cumulative-effect adjustment in connection with the adoption of ASU 2014-09—  —  —  8,381  8,381  
Stock-based compensation expense—  5,905  —  —  5,905  
Issuance of common stock upon exercise of stock options296 3,075  —  —  3,076  
Issuance of common stock under employee stock purchase plan80—  1,370  —  —  1,370  
Issuance of restricted stock units9—  —  —  —  —  
Tax withholding related to net share settlements of stock-based compensation awards(61)—  (1,342) —  —  (1,342) 
Net loss—  —  —  (9,618) (9,618) 
Other comprehensive loss—  —  (56) —  (56) 
Balances at March 31, 201842,693  $43  $257,297  $16  $(266,574) $(9,218) 
Stock-based compensation expense—  10,465  —  —  10,465  
Issuance of common stock upon exercise of stock options328—  3,317  —  —  3,317  
Issuance of restricted stock units64—  —  —  —  —  
Tax withholding related to net share settlements of stock-based compensation awards(23)—  (519) —  —  (519) 
Net loss—  —  —  (21,768) (21,768) 
Other comprehensive income—  —  59  —  59  
Balances at June 30, 201843,062  $43  $270,560  $75  $(288,342) $(17,664) 
Stock-based compensation expense—  —  6,949  —  —  6,949  
Issuance of common stock upon exercise of stock options635   7,533  —  —  7,534  
Issuance of common stock under employee stock purchase plan99  —  1,846  —  —  1,846  
Issuance of restricted stock units —  —  —  —  —  
Net loss—  —  —  —  (10,964) (10,964) 
Other comprehensive income—  —  —  12  —  12  
Balances at September 30, 201843,800  $44  $286,888  $87  $(299,306) $(12,287) 

See accompanying notes.

6

Table of Contents
WORKIVA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three months ended September 30,Nine months ended September 30,
2019201820192018
Cash flows from operating activities
Net loss  $(16,051) $(10,964) $(31,836) $(42,350) 
Adjustments to reconcile net loss to net cash provided by operating activities:  
Depreciation and amortization1,058  1,133  2,932  2,881  
Stock-based compensation expense9,223  6,949  25,929  23,319  
(Recovery of) provision for doubtful accounts(104) 128  (58) 311  
Amortization (accretion) of premiums and discounts on marketable securities, net 15  (66) (89) (63) 
Amortization of debt discount and issuance costs1,083  —  1,083  —  
Deferred income tax(21) (4) (67) (4) 
Changes in assets and liabilities:
Accounts receivable3,579  (1,691) 21,530  4,615  
Deferred commissions(2,106) (1,939) (7,968) (5,608) 
Operating lease right-of-use asset581  —  1,805  —  
Other receivables(417) (591) (470) (416) 
Prepaid expenses and other(191) 2,501  (3,737) 712  
Other assets(943) (389) (2,349) (557) 
Accounts payable516  616  160  1,999  
Deferred revenue3,830  8,630  14,112  15,032  
Operating lease liability(758) —  (2,226) —  
Accrued expenses and other liabilities5,403  3,269  9,828  6,948  
Net cash provided by operating activities  4,697  7,582  28,579  6,819  
Cash flows from investing activities
Purchase of property and equipment(663) (523) (2,860) (742) 
Purchase of marketable securities(54,749) (6,441) (95,466) (17,724) 
Sale of marketable securities498  —  498  —  
Maturities of marketable securities1,500  4,600  20,390  9,000  
Purchase of intangible assets(51) (46) (712) (174) 
Other investments(1,000) —  (1,000) —  
Net cash used in investing activities  (54,465) (2,410) (79,150) (9,640) 
7

Table of Contents
WORKIVA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in thousands)
(unaudited)
Three months ended September 30,Nine months ended September 30,
2019201820192018
Cash flows from financing activities
Proceeds from option exercises5,940  7,534  22,493  13,927  
Taxes paid related to net share settlements of stock-based compensation awards—  —  (390) (1,861) 
Proceeds from shares issued in connection with employee stock purchase plan2,773  1,846  4,922  3,216  
Proceeds from the issuance of convertible senior notes, net of issuance costs335,899  —  335,899  —  
Principal payments on capital lease and financing obligations(306) (287) (901) (879) 
Proceeds from government grants—  —  —  22  
Net cash provided by financing activities  344,306  9,093  362,023  14,425  
Effect of foreign exchange rates on cash(127) 83  88  (94) 
Net increase in cash and cash equivalents  294,411  14,348  311,540  11,510  
Cash and cash equivalents at beginning of period94,713  57,495  77,584  60,333  
Cash and cash equivalents at end of period$389,124  $71,843  $389,124  $71,843  
Supplemental cash flow disclosure
Cash paid for interest$408  $436  $1,294  $1,304  
Cash paid for income taxes, net of refunds$80  $—  $341  $56  
Supplemental disclosure of noncash investing and financing activities
Allowance for tenant improvements$—  $1,153  $—  $1,280  
Purchases of property and equipment, accrued but not paid$—  $105  $—  $105  
See accompanying notes.


8

Table of Contents
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”) is a leading provider of cloud-based solutions for connected reporting and compliance. Our platform, Wdesk, is used by thousands of public and private companies, government agencies and higher-education institutions. Wdesk offers controlled collaboration, data linking, data integrations, granular permissions, process management and a full audit trail. We sell to customers in the areas of: finance and accounting; risk and controls; regulatory reporting; financial close, management and performance reporting; and statutory and corporate tax reporting. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe, the Asia-Pacific region and Canada.
We updated our accounting policies on the use of estimates, impairment of long-lived assets and leases as a result of our adopting Financial Accounting Standards Board (FASB) guidance issued in accounting standards codification (ASC) 842, Leases, under the Accounting Standards Update (ASU) 2016-02 (collectively the new lease standard). Otherwise, there have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 20, 2019, that have had a material impact on our condensed consolidated financial statements and related notes.
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, 2018 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, 2019 are not necessarily indicative of the results expected for the full year ending December 31, 2019.
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. Sales and marketing expense has been higher in the third quarter due to our annual user conference in September. 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, 2018 filed with the SEC on February 20, 2019.
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. Additionally, certain prior period amounts have been reclassified for consistency with the current year presentation. The reclassification of the prior period amounts were not material to the previously reported consolidated financial statements.
9

Table of Contents
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, 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.
Impairment of Long-Lived Assets
Long-lived assets, such as property, equipment, right-of-use assets and software and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require that a long-lived asset or asset group be tested for possible impairment, we first compare the undiscounted cash flows expected to be generated by that long-lived asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value.
Leases
We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities on our condensed consolidated balance sheets. We currently have no finance leases.
ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Our variable lease payments consist of non-lease services related to the lease. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
We have lease agreements with lease and non-lease components. We have elected to account for these lease and non-lease components as a single lease component. We are also electing not to apply the recognition requirements to short-term leases of 12 months or less and instead will recognize lease payments as expense on a straight-line basis over the lease term.
10

Table of Contents
Recently Adopted Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance codified in ASC 842, Leases, which supersedes the guidance in former ASC 840, Leases, to increase transparency and comparability among organizations by requiring recognition of right-of-use assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements (with the exception of short-term leases).
In July 2018, the FASB issued an update (ASU 2018-11) to the existing transition guidance that allows entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Effective January 1, 2019, we adopted ASC 842 using this new transition guidance. The comparative information has not been restated and continues to be reported under the accounting standard in effect for those periods.
We have elected to use the package of practical expedients, which allows us to not (1) reassess whether any expired or existing contracts are considered or contain leases; (2) reassess the lease classification for any expired or existing leases; and (3) reassess the initial direct costs for any existing leases. We did not elect the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment.
Adoption of the new standard had a material impact on our condensed consolidated balance sheets. The most significant impacts related to the recognition of right-of-use assets and lease liabilities for operating leases. The adoption of ASC 842 had no impact on our condensed consolidated statements of operations or total cash flows from operations.
The cumulative effect of the changes made to our consolidated January 1, 2019 balance sheet for the adoption of ASC 842 were as follows (in thousands):
As of December 31, 2018Adjustments due to ASC 842 adoptionAs of January 1, 2019
Assets
Operating right-of-use asset
$—  $15,694  $15,694  
Liabilities
Accrued expenses and other current liabilities36,353  2,319  38,672  
Other long-term liabilities6,891  (6,007) 884  
Operating lease liabilities, non-current
—  19,382  19,382  
In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation costs in cloud computing arrangements. The update will become effective for interim and annual periods beginning after December 15, 2019 and may be adopted either retrospectively or prospectively. Early adoption is permitted. We adopted this standard prospectively effective April 1, 2019. The adoption of this new guidance did not have a material impact on our consolidated financial statements.
11

Table of Contents
New Accounting Pronouncements Not Yet Adopted
In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, we will be required to use a forward-looking expected loss model that reflects probable losses rather than the incurred loss model for recognizing credit losses. The standard will become effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. We plan to adopt this standard on the effective date and are currently evaluating the impact of this new standard on our consolidated financial statements.
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, 2019As of December 31, 2018
Accrued vacation$8,095  $6,906  
Accrued commissions4,574  7,265  
Accrued bonuses11,348  5,643  
Estimated health insurance claims1,150  1,100  
ESPP employee contributions2,026  2,156  
Customer deposits10,814  7,395  
Operating lease liabilities2,827  —  
Accrued other liabilities6,468  5,888  
$47,302  $36,353  

3. Cash Equivalents and Marketable Securities
At September 30, 2019, marketable securities consisted of the following (in thousands):
Amortized Cost
Unrealized Gains
Unrealized Losses
Aggregate Fair Value
Money market funds$368,634  $—  $—  $368,634  
U.S. treasury debt securities10,284   (1) 10,285  
U.S. corporate debt securities85,216  148  (5) 85,359  
$464,134  $150  $(6) $464,278  
Included in cash and cash equivalents$368,634  $—  $—  $368,634  
Included in marketable securities$95,500  $150  $(6) $95,644  
12

Table of Contents
At December 31, 2018, marketable securities consisted of the following (in thousands):
Amortized Cost
Unrealized Gains
Unrealized Losses
Aggregate Fair Value
Money market funds$52,068  $—  $—  $52,068  
Commercial paper7,448  —  —  7,448  
U.S. treasury debt securities2,494  —  (1) 2,493  
U.S. corporate debt securities10,890  —  (67) 10,823  
$72,900  $—  $(68) $72,832  
Included in cash and cash equivalents$52,068  $—  $—  $52,068  
Included in marketable securities$20,832  $—  $(68) $20,764  
The following table presents gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position as of September 30, 2019, 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, 2019
Less than 12 months
12 months or greater
Fair Value
Unrealized Loss
Fair Value
Unrealized Loss
U.S. treasury debt securities$6,339  $(1) $—  $—  
U.S. corporate debt securities7,691  (3) 3,000  (2) 
Total$14,030  $(4) $3,000  $(2) 
We do not believe any of the unrealized losses represented an other-than-temporary impairment based on our evaluation of available evidence, which includes our intent as of September 30, 2019 to hold these investments until the cost basis is recovered.
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.
13

Table of Contents
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, 2019, 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, 2019Fair Value Measurements as of December 31, 2018
Description
Total
Level 1
Level 2
Total
Level 1
Level 2
Money market funds$368,634  $368,634  $—  $52,068  $52,068  $—  
Commercial paper—  —  —  7,448  —  7,448  
U.S. treasury debt securities10,285  —  10,285  2,493  —  2,493  
U.S. corporate debt securities85,359  —  85,359  10,823  —  10,823  
$464,278  $368,634  $95,644  $72,832  $52,068  $20,764  
Included in cash and cash equivalents$368,634  $52,068  
Included in marketable securities$95,644  $20,764  

Convertible Senior Notes
As of September 30, 2019, the fair value of our convertible senior notes was $314.2 million. The fair value was determined based on the quoted price of the convertible senior notes in an over-the-counter market on the last trading day of the reporting period and has been classified as Level 2 in the fair value hierarchy. See Note 6 to the condensed consolidated financial statements for more information.
14

Table of Contents
5. Leases
Operating Leases
We lease certain office and residential space under non-cancelable operating leases with various lease terms through June 2043. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Certain office leases include one or more options to renew, with renewal terms that can extend the lease term from 3 to 5 years. The exercise of lease renewal options is at our sole discretion and is generally excluded from the lease term at lease inception. Our leases generally require us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent.
The components of lease expense were as follows (in thousands):
Three months ended September 30, 2019Nine months ended September 30, 2019
Operating lease cost$837  $2,600  
Short-term lease cost347  885  
Variable lease cost259  691  
$1,443  $4,176  
Supplemental cash flow information related to leases was as follows (in thousands):
Three months ended September 30, 2019Nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$1,031  $3,111  
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$—  $2,033  

Other supplemental information related to leases was as follows:
As of September 30, 2019
Weighted Average Remaining Lease Term (in years)
Operating leases7.9
Weighted Average Discount Rate
Operating leases5.7 %

15

Table of Contents
As of September 30, 2019, future estimated minimum lease payments under non-cancelable operating leases were as follows (in thousands):
Operating Leases
Remainder of 2019$910  
20204,153  
20214,237  
20223,872  
20233,540  
Thereafter11,255  
Total minimum lease payments27,967  
Less: Amount representing interest(5,867) 
Total$22,100  
As of September 30, 2019, we did not have additional operating or financing leases that had not yet commenced.
6. Debt
Other Long-Term Debt
In August 2014, we entered into a credit facility with Silicon Valley Bank, which provided us with a revolving line of credit. Under the agreement, we could borrow up to $15.0 million with interest accrued at the bank's prime lending rate. In August 2019,we terminated our credit facility with Silicon Valley Bank. No amounts were outstanding at the time of termination.
Convertible Senior Notes
In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, including the exercise in full by the initial purchasers of their option to purchase an additional $45.0 million principal amount (the “Notes”). The Notes were issued pursuant to an indenture and are senior, unsecured obligations of the Company. The Notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2020. Proceeds from the issuance of the Notes totaled $335.9 million, net of initial purchaser discounts and issuance costs.
The initial conversion rate is 12.4756 shares of our common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $80.16 per share, subject to adjustment upon the occurrence of specified events. The Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding May 15, 2026 only under the following circumstances:
during any calendar quarter commencing after the calendar quarter ending on September 30, 2019 (and only during such calendar quarter), if the last reported sale price of our Class A common stock, par value $0.001 per share (which we refer to in this offering memorandum as our “Class A common stock”), for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;
16

Table of Contents
during the five consecutive business day period immediately following any ten consecutive trading day period (the “measurement period”) in which the trading price (as defined below) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day;
if we call any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or
upon the occurrence of certain specified corporate events as set forth in the indenture.
On or after May 15, 2026 until the close of business on the business day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances.
Upon conversion, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election, in the manner and subject to the terms and conditions provided in the indenture. It is our current intent to settle conversions through a combination settlement of cash and shares of our Class A common stock with a specified dollar amount per $1,000 principal amount of Notes of $1,000.
If we undergo a fundamental change (as defined in the indenture), holders may require us to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, following certain corporate events that occur prior to the maturity date or if we deliver a notice of redemption, we will increase, in certain circumstances, the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or notice of redemption, as the case may be. During the three months ended September 30, 2019, the conditions allowing holders of the Notes to convert were not met. The Notes were therefore not convertible during the three months ended September 30, 2019 and are classified as long-term debt on our condensed consolidated balance sheets.
We may not redeem the Notes prior to August 21, 2023. We may redeem for cash all or any portion of the Notes, at our option, on or after August 21, 2023 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
In accounting for the issuance of the Notes, we separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar debt instruments that do not have an associated convertible feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability components from the par value of the Notes. The difference represents the debt discount that is amortized to interest expense at an effective interest rate of 4.3% over the term of the Notes. The carrying amount of the equity component was $60.1 million and is recorded in additional paid-in-capital. The equity component is not remeasured as long as it continues to meet the conditions for equity classification.
In accounting for the issuance costs related to the Notes, we allocated the total amount incurred to the liability and equity components of the Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component were $7.5 million. The issuance costs allocated to the liability component are amortized to interest expense under the effective
17

Table of Contents
interest rate method over the contractual term of the Notes. Issuance costs attributable to the equity component of the Notes were $1.6 million and are netted against the equity components representing the conversion option in additional paid-in capital.
The net carrying amount of the liability and equity components of the Notes was as follows (in thousands):
September 30, 2019
Liability component:
Principal$345,000  
Unamortized discount(59,184) 
Unamortized issuance costs(7,394) 
Net carrying amount$278,422  
Equity component, net of purchase discounts and issuance costs$58,560  
Interest expense related to the Notes is as follows (in thousands):
Three and Nine Months Ended September 30, 2019
Contractual interest expense$468  
Amortization of debt discount963  
Amortization of issuance costs120  
Total interest expense$1,551  

7. Commitments and Contingencies
Other Purchase Commitments
During 2019, we entered into certain non-cancelable agreements with third-party providers for our use of cloud services in the ordinary course of business. Under these agreements, we are committed to purchase $18,000 in fiscal year 2019, $1.2 million in fiscal year 2020, $2.3 million in fiscal year 2021, and $1.2 million in fiscal year 2022.
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. We evaluate the development of legal matters on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of any currently pending legal proceedings to which we are a party will not have a material adverse effect on our business, operating results, financial condition or cash flows. 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.
18

Table of Contents
8. Stock-Based Compensation
We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. We utilize stock-based compensation in the form of restricted stock awards, restricted stock units, options to purchase Class A common stock and Employee Stock Purchase Plan (“ESPP”) purchase rights.
As of September 30, 2019, awards outstanding under the 2009 Plan consisted of stock options, and awards outstanding under the 2014 Plan consisted of stock options and restricted stock units.
As of September 30, 2019, 2,295,587 shares of Class A common stock were available for grant under the 2014 Plan.
Our ESPP became effective on June 13, 2017. Under the ESPP, eligible employees are granted options to purchase shares of Class A common stock at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly on or about January 15 and July 15 and are exercisable on or about the succeeding July 14 and January 14, respectively, of each year. As of September 30, 2019, 4,632,233 shares of Class A common stock were available for issuance under the ESPP. No participant may purchase more than $12,500 worth of common stock in a six-month offering period.
Stock-Based Compensation Expense
Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):
Three months ended September 30,Nine months ended September 30,
2019201820192018
Cost of revenue
Subscription and support
$386  $161  $1,142  $560  
Professional services
456  153  1,296  449  
Operating expenses
Research and development
2,265  1,624  6,016  4,140  
Sales and marketing
2,203  1,397  6,199  3,950  
General and administrative
3,913  3,614  11,276  14,220  
Total
$9,223  $6,949  $25,929  $23,319  
19

Table of Contents
Stock Options
The following table summarizes the option activity under the Plans for the nine months ended September 30, 2019:




Options

Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term (Years)
Aggregate Intrinsic Value
(in thousands)
Outstanding at December 31, 20186,400,175  $13.65  6.1$142,340  
Granted—  —  
Forfeited(40,203) 16.79  
Exercised(1,817,243) 12.38  
Outstanding at September 30, 20194,542,729  $14.13  5.7$134,913  
Exercisable at September 30, 20193,786,843  $13.57  5.4$114,571  
Options to purchase Class A common stock generally vest over a three- or four-year period and are generally granted for a term of ten years. The total intrinsic value of options exercised during the nine months ended September 30, 2019 and 2018 was $69.6 million and $22.1 million, respectively.
No options were granted during the nine months ended September 30, 2019 and 2018. The total fair value of options vested during the nine months ended September 30, 2019 and 2018 was approximately $5.0 million and $10.3 million, respectively. Total unrecognized compensation expense of $4.5 million related to options will be recognized over a weighted-average period of 1.5 years.
Restricted Stock Units
Restricted stock units granted to employees generally vest over a three- or four-year period in equal, annual installments or with three-year cliff vesting. Restricted stock units granted to non-employee members of our Board of Directors generally have one-year cliff vesting from the date of grant. The recipient of a restricted stock unit award under the Plan will have no rights as a stockholder until share certificates are issued by us, but, at the discretion of our Compensation Committee, has the right to receive a dividend equivalent payment in the form of additional restricted stock units. Additionally, until the shares are issued, they have no voting rights and may not be bought or sold. The fair value for restricted stock units is calculated based on the stock price on the date of grant. The total fair value of restricted stock units vested during the nine months ended September 30, 2019 and 2018 was approximately $7.3 million and $7.2 million, respectively.
20

Table of Contents
The following table summarizes the restricted stock unit activity under the Plan for the nine months ended September 30, 2019:




Number of Shares
Weighted-
Average
Grant Date Fair Value
Unvested at December 31, 20182,359,261  $23.95  
Granted906,173  43.40  
Forfeited(62,767) 28.56  
Vested(1)
(358,511) 20.35  
Unvested at September 30, 20192,844,156  $30.50  
(1) During the nine months ended September 30, 2019, in accordance with our Nonqualified Deferred Compensation Plan, recipients of 250,750 shares had elected to defer settlement of the vested restricted stock units and 274,079 shares were released from deferral. This resulted in total deferred units of 531,292 as of September 30, 2019. 
Compensation expense associated with unvested restricted stock units is recognized on a straight-line basis over the vesting period. At September 30, 2019, there was approximately $58.3 million of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted-average period of 2.4 years.
Employee Stock Purchase Plan
The fair value of each share issued under the ESPP is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on the historical volatility of our common stock. The expected term represents the period of time the ESPP purchase rights are expected to be outstanding. The expected term for the ESPP purchase rights approximates the offering period. The risk-free interest rate is based on yields on U.S. Treasury STRIPS (Separate Trading of Registered Interest and Principal of Securities) with a maturity similar to the estimated expected term of the ESPP purchase rights.
The fair value of our ESPP purchase rights was estimated assuming no expected dividends and the following weighted-average assumptions:
Nine months ended September 30,
20192018
Expected term (in years)0.50.5
Risk-free interest rate
1.9% - 2.6%
1.8% - 2.4%
Expected volatility
35.2% - 48.6%
22.2% - 36.4%
During the nine months ended September 30, 2019, 188,390 shares of common stock were purchased under the ESPP at a weighted-average price of $26.13 per share, resulting in cash proceeds of $4.9 million.
Compensation expense associated with ESPP purchase rights is recognized on a straight-line basis over the vesting period. At September 30, 2019, there was approximately $681,000 of total unrecognized compensation expense related to the ESPP, which is expected to be recognized over a weighted-average period of 0.3 years.
21

Table of Contents
9. Revenue Recognition
Disaggregation of Revenue
The following table presents our revenues disaggregated by industry (in thousands). Certain prior year amounts have been reclassified to conform with current period presentation. These reclassifications have no impact on total revenue.
Three months ended September 30,Nine months ended September 30,
2019201820192018
Information technology$9,734  $7,698  $28,897  $22,843  
Consumer discretionary8,324  7,248  24,632  20,918  
Industrials8,190  6,890  24,194  20,706  
Diversified financials8,570  6,847  24,271  20,198  
Banks7,476  6,044  21,099  17,628  
Healthcare6,949  5,347  20,463  15,786  
Energy5,515  4,805  16,605  14,303  
Other19,421  15,994  57,465  47,527  
Total revenues
$74,179  $60,873  $217,626  $179,909  
The following table presents our revenues disaggregated by type of good or service (in thousands):
Three months ended September 30,Nine months ended September 30,
2019201820192018
Subscription and support$63,022  $51,306  $179,617  $146,613  
XBRL professional services7,767  6,312  28,699  23,080  
Other services3,390  3,255  9,310  10,216  
Total revenues
$74,179  $60,873  $217,626  $179,909  
Deferred Revenue
We recognized $59.0 million and $47.2 million of revenue during the three months ended September 30, 2019 and 2018, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. We recognized $114.4 million and $93.9 million of revenue during the nine months ended September 30, 2019 and 2018, respectively, that was included in the deferred revenue balances at the beginning of the respective periods.
Transaction Price Allocated to the Remaining Performance Obligations
As of September 30, 2019, we expect revenue of approximately $212.9 million to be recognized from remaining performance obligations for subscription contracts. We expect to recognize approximately $162.6 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.
22

Table of Contents
10. Net Loss Per Share
Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including convertible senior notes, outstanding stock options, stock related to unvested restricted stock units, and common stock issuable pursuant to the ESPP to the extent dilutive. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive.
The net loss per share is allocated based on the participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis.
A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data):
Three months ended
September 30, 2019September 30, 2018
Class A
Class B
Class A
Class B
Numerator
Net loss$(12,978) $(3,073) $(8,532) $(2,432) 
Denominator
Weighted-average common shares outstanding - basic and diluted37,785,850  8,945,813  34,221,118  9,752,310  
Basic and diluted net loss per share$(0.34) $(0.34) $(0.25) $(0.25) 

Nine months ended
September 30, 2019September 30, 2018
Class A
Class B
Class A
Class B
Numerator
Net loss$(25,422) $(6,414) $(32,616) $(9,734) 
Denominator
Weighted-average common shares outstanding - basic and diluted36,771,232  9,276,805  33,393,426  9,966,513  
Basic and diluted net loss per share$(0.69) $(0.69) $(0.98) $(0.98) 
The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows:
As of
September 30, 2019September 30, 2018
Shares subject to outstanding common stock options4,542,729  6,693,724  
Shares subject to unvested restricted stock units3,375,448  2,215,129  
Shares issuable pursuant to the ESPP77,788  108,929  

23

Table of Contents
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of our operations should be read in conjunction with the condensed consolidated financial statements and related notes included elsewhere in this report and in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 20, 2019. In addition to historical consolidated financial information, this discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to these differences include, but are not limited to, those identified below, and those discussed in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2018, 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.
Overview
Workiva is a leading provider of cloud-based solutions for connected reporting and compliance. Our platform, Wdesk, is used by thousands of public and private companies, government agencies and higher-education institutions. Wdesk offers controlled collaboration, data linking, data integrations, granular permissions, process management and a full audit trail. Wdesk users are able to combine narrative with their data, which greatly improves insight in their financial, regulatory and management reporting processes. As of September 30, 2019, 3,454 organizations, including more than 75% of Fortune 500® companies, subscribed to our Wdesk platform.(1)
(1) Claim not confirmed by FORTUNE or Fortune Media IP Limited. FORTUNE® and FORTUNE 500® are registered trademarks of Fortune Media IP Limited and are used under license. FORTUNE and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Workiva Inc.
Our customers can connect Wdesk with data in more than 100 cloud and on-premise applications. In June 2018, we expanded our Wdesk platform with Wdata, which combines new data preparation capabilities with existing connectors and Application Programming Interfaces (APIs) to help our customers more easily capture, enrich and connect large datasets to Wdesk. Integrating enterprise business systems with our platform eliminates manual steps in the reporting and analysis process after the data leaves our customers' Enterprise Resource Planning (ERP) and other data systems and enables data assurance throughout the entire reporting process with an immutable audit trail. Wdata also enables a broader set of business users to explore complex data at scale and better manage data transformations in the office of the CFO.
We market our solutions under six broad categories: SEC Reporting, Management Reporting, Integrated Risk, Capital Markets, Global Statutory Reporting, and Regulated Reporting. Within those categories, Workiva offers the following solutions: SEC Reporting, SEDAR Reporting, Financial Reporting, Connected Financials, Management Reporting, Audit Management, Controls Management, Enterprise Risk Management, Policies and Procedures, Capital Markets, Prospectus Fund, Shareholder Reports, Insurance Statutory Reporting, Insurance Prospectus, CAFR/AFR, Stress Testing, Living Will, Tax Reporting, CASS Compliance, Global Statutory Reporting, and IFRS 17.
We operate our business on a Software-as-a-Service (SaaS) model. Customers enter into annual or multi-year subscription contracts to gain access to Wdesk. Our subscription fee includes the use of our software and technical support. Prior to the third quarter of 2018, our subscription pricing was based primarily on the number of corporate entities, number of users, level of customer support and length of contract. Thereafter, we began converting existing customer orders to, and signing new orders primarily based on, a solution-based licensing model. Under this new model, operating metrics related to a customer's expected use of each solution determine the price. The solution-based model has a higher contract value than the seat-based model because it typically offers customers unlimited seats per solution and a reduced administrative workload. We expect a substantial majority of our subscription revenue will
24

Table of Contents
be priced on the solution-based licensing model by year-end 2019. We charge customers additional fees primarily for document setup and XBRL tagging services.
We generate sales primarily through our direct sales force and, to a lesser extent, our customer success and professional services teams. In addition, we augment our direct sales channel with partnerships. Our advisory and service partners offer a wider range of domain and functional expertise that broadens the capabilities of Wdesk, bringing scale and support to customers and prospects. Our technology partners enable more data and process integrations to help customers connect critical transactional systems directly to Wdesk, which becomes a central repository of trusted data, with powerful linking, auditability and control features.
Our integrated platform, subscription-based model and exceptional customer support have contributed to a low rate of customer turnover while achieving strong revenue growth. Our subscription and support revenue retention rate was 94.5% (excluding add-on seats) for the twelve months ended September 30, 2019.
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 1,512 at September 30, 2019 from 1,293 at September 30, 2018, an increase of 16.9%.
We have achieved significant revenue growth in recent periods. Our revenue grew to $74.2 million and $217.6 million during the three and nine months ended September 30, 2019, respectively, from $60.9 million and $179.9 million during the three and nine months ended September 30, 2018, respectively. We incurred net losses of $16.1 million and $31.8 million during the three and nine months ended September 30, 2019, respectively, compared to $11.0 million and $42.4 million during the three and nine months ended September 30, 2018, respectively.
Converting existing customer orders to a solution-based licensing model has contributed to the acceleration of growth in our subscription revenue year-to-date, and we expect it to continue to do so through the remainder of 2019. This conversion has also contributed to the improvement in our subscription and support revenue retention rate including add-ons for the same periods. We expect the benefit of this contribution to wane beginning in the last quarter of 2019. Accordingly, we will need to find new sources of revenue to sustain our growth rate beyond 2019. To maintain our revenue growth for the longer term, we have been accelerating our investments in talent, processes and technology, particularly for expansion in EMEA, integrated risk, statutory reporting and Wdata. If these investments do not meet our expectations, we may be unable to sustain our revenue growth rate. We expect these investments to increase operating losses in absolute terms and as a percentage of revenue at least through the fourth quarter of 2019, ahead of any incremental revenue contribution they may generate after 2019.
Key Factors Affecting Our Performance
Generate Growth From Existing Customers. Wdesk can exhibit a powerful network effect within an enterprise, meaning that the usefulness of our platform attracts additional users and more data. Since solution-based licensing offers our customers an unlimited number of seats for each solution purchased, we expect customers to add more seats in Wdesk over time. As more employees in an enterprise use Wdesk, additional opportunities for collaboration and automation drive demand among their colleagues for additional solutions. Furthermore, converting customer orders to solution-based licensing typically generates a one-time increase in contract value for each solution.
Pursue New Customers. Our first software solution enabled customers to streamline and automate their SEC regulatory filing process. In 2013, we began expanding into adjacent markets challenged with managing large, complex processes with many contributors and disparate sets of business data. We currently sell to new customers in the areas of finance and accounting; risk and controls; regulatory
25

Table of Contents
reporting; financial close, management and performance reporting; and statutory and corporate tax reporting. 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 Wdesk platform. Our close and trusted relationships with our customers are a source for new use cases, features and solutions. We have a disciplined process for tracking, developing and releasing new solutions that are designed to have immediate, broad applicability; a strong value proposition; and a high return on investment for both Workiva and our customers. Our advance planning team assesses customer needs, conducts industry-based research and defines new markets. This vetting process involves our sales, product marketing, customer success, professional services, research and development, finance and senior management teams.
Expand Across Enterprises. Our success in delivering multiple solutions has created demand from customers for a broader-based, enterprise-wide Wdesk platform. In response, we have been improving our technology and realigning sales and marketing to capitalize on our growing enterprise-wide opportunities. 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.
Add Partners. We continue to expand our relationships with partners, including consulting and advisory firms, technology partners, and implementation partners. Our global partners, including global strategic consulting and advisory firms, identify opportunities for our platform to help companies transform financial reporting and integrated risk processes. We also partner with regional accounting, consulting and implementation partners. These highly skilled regional partners provide subject-matter expertise in the implementation of specific solutions and extend our direct sales force by referring opportunities to us. Technology partners expand the ecosystem of our connected reporting and compliance platform and enable data connections and process integrations to further transform critical business functions, as we capitalize on growing demand for enterprise-wide opportunities. We believe that our partner ecosystem extends our global reach, accelerates the usage and adoption of our platform, and enables more efficient delivery of professional services.
Investment in growth. We plan to continue to invest in the development of our Wdesk platform to enhance our current offerings and build new features. In addition, we expect to continue to invest in our sales, marketing, professional services and customer success organizations to drive additional revenue and support the needs of our growing customer base and to take advantage of opportunities that we have identified in EMEA, as well as use cases for integrated risk, statutory reporting and Wdata.
Seasonality. Our revenue from professional services 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. Our sales and marketing expense also has some degree of seasonality. Sales and marketing expense is generally higher in the third quarter since we hold our annual user conference in September. 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.
26

Table of Contents
Key Performance Indicators
Three months ended September 30,Nine months ended September 30,
2019201820192018
(dollars in thousands)
Financial metrics
Total revenue
$74,179  $60,873  $217,626  $179,909  
Percentage increase in total revenue
21.9 %16.9 %21.0 %17.3 %
Subscription and support revenue
$63,022  $51,306  $179,617  $146,613  
Percentage increase in subscription and support revenue
22.8 %18.7 %22.5 %18.5 %
Subscription and support as a percent of total revenue
85.0 %84.3 %82.5 %81.5 %

As of September 30,
20192018
Operating metrics
Number of customers
3,454  3,289  
Subscription and support revenue retention rate
94.5%  95.9%  
Subscription and support revenue retention rate including add-ons
112.8%  104.7%  
Number of customers with annual contract value $100k+
611  398  
Number of customers with annual contract value $150k+
261  173  
Total customers. We believe total number of customers is a key indicator of our financial success and future revenue potential. We define a customer as an entity with an active subscription contract as of the measurement date. Our customer is typically a parent company or, in a few cases, a significant subsidiary that works with us directly. 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 begin by annualizing the subscription and support revenue recorded in the same calendar quarter of the prior year for those base customers who are still 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.
Our subscription and support revenue retention rate was 94.5% as of September 30, 2019, down slightly compared to the rate as of September 30, 2018. 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.
Subscription and support revenue retention rate including add-ons. Add-on revenue includes the change in both solutions and seats purchased and pricing for existing customers. 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 divide the result by the annualized subscription and support revenue in the same quarter of the prior year for all base customers.
27

Table of Contents
Our subscription and support revenue retention rate including add-ons was 112.8% as of the quarter ended September 30, 2019, up from 104.7% as of September 30, 2018.
In the first quarter of 2019, we began calculating revenue retention rates using quarterly ASC 606 revenue instead of our prior method using monthly ASC 605 revenue. We expect quarterly measurements will be less variable than the single month measurements we previously reported.
Annual contract value. 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 Wdesk.
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. We serve a wide range of customers in many industries, and our revenue is not concentrated with any single customer or small group of customers. For the nine months ended September 30, 2019 and 2018, no single customer represented more than 1% of our revenue, and our largest 10 customers accounted for less than 5% of our revenue in the aggregate.
We generate sales directly through our sales force and partners. We also identify some sales opportunities with existing customers through our customer success and professional services teams.
Our customer contracts typically range in length from twelve to 36 months. We typically invoice our customers for subscription fees in advance, with payment due at the start of the subscription term. From time to time, we offer limited incentives for customers to enter into contract terms of more than one year, typically for terms of two or three years. Our arrangements do not contain general rights of return.
Subscription and Support Revenue. 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. To date, most of our professional services have consisted of document set up, XBRL tagging, and consulting with our customers on business processes and best practices for using Wdesk. Our professional services are not required for customers to utilize our solution. 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.
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. Costs of server usage are comprised primarily of fees paid to Google Cloud Platform and Amazon Web Services.
28

Table of Contents
Sales and Marketing Expenses
Sales and marketing expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, commissions, travel, and stock-based compensation. Other costs included in this expense are marketing and promotional events, our annual user conference, online marketing, product marketing, information technology costs, and facility costs. Sales commissions paid where the amortization period is one year or less are expensed as incurred. All other sales commissions are considered incremental costs of obtaining a contract with a customer and are deferred and amortized on a straight-line basis over a period of benefit that we have determined to be three years.
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.
General 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.
29

Table of Contents
Results of Operations
The following table sets forth selected consolidated statement of operations data for each of the periods indicated:
Three months ended September 30,Nine months ended September 30,
2019201820192018
(in thousands)
Revenue
Subscription and support$63,022  $51,306  $179,617  $146,613  
Professional services11,157  9,567  38,009  33,296  
Total revenue74,179  60,873  217,626  179,909  
Cost of revenue
Subscription and support(1)
10,924  8,139  30,935  25,578  
Professional services(1)
10,827  7,520  31,029  22,888  
Total cost of revenue21,751  15,659  61,964  48,466  
Gross profit52,428  45,214  155,662  131,443  
Operating expenses
Research and development(1)
22,899  19,984  66,705  60,829  
Sales and marketing(1)
32,990  24,068  86,568  67,326  
General and administrative(1)
12,017  11,864  33,626  45,286  
Total operating expenses67,906  55,916  186,899  173,441  
Loss from operations(15,478) (10,702) (31,237) (41,998) 
Interest income1,460  341  2,593  843  
Interest expense(1,959) (448) (2,832) (1,347) 
Other income and (expense), net 24  (138) (259) 195  
Loss before provision for income taxes(15,953) (10,947) (31,735) (42,307) 
Provision for income taxes  98  17  101  43  
Net loss$(16,051) $(10,964) $(31,836) $(42,350) 
(1)  Stock-based compensation expense included in these line items was as follows:
Three months ended September 30,Nine months ended September 30,
2019201820192018
(in thousands)
Cost of revenue
Subscription and support
$386  $161  $1,142  $560  
Professional services
456  153  1,296  449  
Operating expenses
Research and development
2,265  1,624  6,016  4,140  
Sales and marketing
2,203  1,397  6,199  3,950  
General and administrative
3,913  3,614  11,276  14,220  
Total stock-based compensation expense
$9,223  $6,949  $25,929  $23,319  
30

Table of Contents
The following table sets forth our consolidated statement of operations data as a percentage of revenue for each of the periods indicated:
Three months ended September 30,Nine months ended September 30,
2019201820192018
Revenue
Subscription and support85.0 %84.3 %82.5 %81.5 %
Professional services15.0  15.7  17.5  18.5  
Total revenue100.0  100.0  100.0  100.0  
Cost of revenue
Subscription and support14.7  13.4  14.2  14.2  
Professional services14.6  12.4  14.3  12.7  
Total cost of revenue29.3  25.8  28.5  26.9  
Gross profit70.7  74.2  71.5  73.1  
Operating expenses
Research and development30.9  32.8  30.7  33.8  
Sales and marketing44.5  39.5  39.8  37.4  
General and administrative16.2  19.5  15.5  25.2  
Total operating expenses91.6  91.8  86.0  96.4  
Loss from operations(20.9) (17.6) (14.5) (23.3) 
Interest income2.0  0.6  1.2  0.5  
Interest expense(2.6) (0.7) (1.3) (0.7) 
Other expense, net  —  (0.2) (0.1) 0.1  
Loss before provision for income taxes(21.5) (17.9) (14.7) (23.4) 
Provision for income taxes0.1  —  —  —  
Net loss(21.6)%(17.9)%(14.7)%(23.4)%
Comparison of Three and Nine Months Ended September 30, 2019 and 2018
Revenue
Three months ended September 30,Nine months ended September 30,
20192018
% Change
20192018
% Change
(dollars in thousands)
Revenue
Subscription and support
$63,022  $51,306  22.8%  $179,617  $146,613  22.5%  
Professional services
$11,157  $9,567  16.6%  $38,009  $33,296  14.2%  
Total revenue
$74,179  $60,873  21.9%  $217,626  $179,909  21.0%  
Total revenue increased $13.3 million for the three months ended September 30, 2019 compared to the same quarter a year ago due primarily to a $11.7 million increase in subscription and support revenue. Growth in subscription and support revenue in the third quarter was attributable to strong demand for a broad range of solutions and the continued conversion of existing customer accounts to a solution-based licensing model. Additionally, professional services revenue increased $1.6 million due in part to $0.9 million in certain XBRL professional services that we do not expect to continue in the next quarter. The total number of our customers expanded 5.0% from September 30, 2018 to September 30, 2019.
31

Table of Contents
Total revenue increased $37.7 million for the nine months ended September 30, 2019 compared to the same period a year ago due primarily to a $33.0 million increase in subscription and support revenue. Growth in professional services revenue was attributable primarily to an increase in XBRL tagging services. Professional services revenue increased at a slower rate than subscription and support revenue for the nine months ended September 30, 2019 compared to the same period a year ago. As our customers become familiar with our platform, they typically become more self sufficient and require fewer professional services. We expect the revenue growth rate from subscription and support to continue to outpace revenue growth from professional services on an annual basis.
Cost of Revenue
Three months ended September 30,Nine months ended September 30,
20192018% Change20192018% Change
(dollars in thousands)
Cost of revenue
Subscription and support
$10,924  $8,139  34.2%  $30,935  $25,578  20.9%  
Professional services
10,827  7,520  44.0%  31,029  22,888  35.6%  
Total cost of revenue
$21,751  $15,659  38.9%  $61,964  $48,466  27.9%  
Cost of revenue increased $6.1 million during the three months ended September 30, 2019 compared to the same quarter a year ago due primarily to $4.0 million in higher cash-based compensation, benefits and travel costs due mostly to increased headcount, $0.5 million of additional stock-based compensation, a $0.7 million increase in consulting fees and $0.6 million rise in the cost of cloud-based software and infrastructure services. Continued investment in and support of our new platform and solutions drove increases in headcount, consulting fees and cloud computing costs.
Cost of revenue increased $13.5 million during the nine months ended September 30, 2019 compared to the same period a year ago, due primarily to an increase in cash-based compensation, benefits and travel costs of $8.6 million due mostly to higher headcount, $1.4 million of additional stock-based compensation, a $1.7 million increase in consulting fees and a $1.5 million rise in the cost of cloud-based software and infrastructure services to support our expanding customer base. The increases in headcount and consulting fees were the result of our continued investment in and support of our new platform and solutions.
Operating Expenses
Three months ended September 30,Nine months ended September 30,
20192018
% Change
20192018% Change
(dollars in thousands)
Operating expenses
Research and development
$22,899  $19,984  14.6%  $66,705  $60,829  9.7%  
Sales and marketing
32,990  24,068  37.1%  86,568  67,326  28.6%  
General and administrative
12,017  11,864  1.3%  33,626  45,286  (25.7)% 
Total operating expenses
$67,906  $55,916  21.4%  $186,899  $173,441  7.8%  
32

Table of Contents
Research and Development
Research and development expenses increased $2.9 million in the three months ended September 30, 2019 compared to the same quarter a year ago due primarily to $1.4 million in higher cash-based compensation and benefits, $0.6 million in additional stock-based compensation and a $0.7 million increase in the cost of cloud infrastructure services. We continue to dedicate resources to developing the next generation of Wdesk, which has resulted in an increased investment in research and development.
Research and development expenses increased $5.9 million in the nine months ended September 30, 2019 compared to the same period a year ago due primarily to higher cash-based compensation, benefits, and travel costs of $2.3 million, additional stock-based compensation of $1.9 million and a $1.7 million increase in the cost of cloud-based software and infrastructure services.
Sales and Marketing
Sales and marketing expenses increased $8.9 million during the three months ended September 30, 2019 compared to the three months ended September 30, 2018 due primarily to $6.3 million in higher cash-based compensation, benefits, travel costs, $0.8 million in additional stock-based compensation, a $0.9 million increase in the cost of marketing programs and a $0.7 million increase related to consulting and recruiting. Headcount in sales and marketing increased 25.5% in the quarter ended September 30, 2019 compared to the same quarter a year ago. We expect to continue to invest in sales and marketing employees for future revenue growth. The increase in the cost of marketing programs is due to increased partnership and international expansion activity as well as costs related to our annual user conference.
Sales and marketing expenses increased $19.2 million during the nine months ended September 30, 2019 compared to the same period a year ago due primarily to higher cash-based compensation, benefits, and travel costs of $13.9 million, additional stock-based compensation of $2.2 million, an increase in professional service fees of $1.2 million related to consulting and recruiting, and an increase in the cost of marketing programs of $1.4 million. The increase in marketing programs was due to increased partnership and international marketing activities as well as an increase in costs related to our annual user conference.
General and Administrative
General and administrative expenses remained relatively flat in the three months ended September 30, 2019 compared to the same quarter a year ago. General and administrative expense as a percentage of revenue improved to 16.2% in the latest quarter from 19.5% the same quarter last year due primarily to a reduction of expenses for executive compensation. We expect a higher level of executive compensation expense beginning in the fourth quarter as a result of hiring a chief operating officer and associated staff.
General and administrative expenses decreased $11.7 million during the nine months ended September 30, 2019 compared to the same period a year ago. This decrease was due primarily to $8.5 million in lower cash-based compensation, benefits and travel as well as a $3.2 million decrease in stock-based compensation.

33

Table of Contents
Non-Operating Income (Expenses)
Three months ended September 30,Nine months ended September 30,
20192018% Change20192018% Change
(dollars in thousands)
Interest income$1,460  $341  328.2%  $2,593  $843  207.6%  
Interest expense
(1,959) (448) 337.3%  (2,832) (1,347) 110.2%  
Other income and (expense), net 24  (138) (117.4)% (259) 195  (232.8)% 
Interest Income, Interest Expense and Other Income and (Expense), Net
During the three months ended September 30, 2019, interest income increased $1.1 million compared to the same quarter a year ago due to increases in our investment accounts. Interest expense increased $1.5 million during the same time period because of the issuance of our senior convertible notes.
During the nine months ended September 30, 2019, interest income increased $1.8 million compared to the same quarter a year ago due to increases in our investment accounts. Interest expense increased $1.5 million during the same time period due to the issuance of our senior convertible notes.
Liquidity and Capital Resources
Three months ended September 30,Nine months ended September 30,
2019201820192018
(in thousands)
Cash flow provided by operating activities  $4,697  $7,582  $28,579  $6,819  
Cash flow used in investing activities  (54,465) (2,410) (79,150) (9,640) 
Cash flow provided by financing activities  344,306  9,093  362,023  14,425  
Net increase in cash and cash equivalents, net of impact of exchange rates  $294,411  $14,348  $311,540  $11,510  
As of September 30, 2019, our principal sources of liquidity were cash, cash equivalents and marketable securities totaling $484.8 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. We have generated significant operating losses and negative cash flows from operating activities as reflected in our accumulated deficit and consolidated statements of cash flows. While we expect to continue to incur operating losses in the future, we believe that current cash and cash equivalents and cash flow from operating activities will be sufficient to fund our operations for at least the next twelve months. We also may choose to seek additional equity or debt financing.
In August 2014, we entered into a credit facility with Silicon Valley Bank, which provided us with a revolving line of credit. Under the agreement, we could borrow up to $15.0 million with interest accrued at the bank's prime lending rate. In August 2019, we terminated the credit facility with Silicon Valley Bank. No amounts were outstanding at the time of termination.
We filed a universal shelf registration statement on Form S-3 with the SEC, which became effective August 10, 2017. Under the shelf registration statement, we may offer and sell, from time to time in the future in one or more public offerings, our Class A common stock, preferred stock, debt
34

Table of Contents
securities, warrants, rights and units. The aggregate initial offering price of all securities sold by us under the shelf registration statement will not exceed $250.0 million.
In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026, including the exercise in full by the initial purchasers of their option to purchase an additional $45.0 million principal amount (the "Notes"). The Notes are senior, unsecured obligations and bear interest at a fixed rate of 1.125% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2020. Proceeds from the issuance of the Notes totaled $335.9 million, net of initial purchaser discounts and issuance costs.
Operating Activities
For the three months ended September 30, 2019, cash provided by operating activities was $4.7 million. The primary factors affecting our operating cash flows during the period were our net loss of $16.1 million, adjusted for non-cash charges of $1.1 million for depreciation and amortization of our property and equipment and intangible assets, $9.2 million of stock-based compensation expense, $1.1 million for the amortization of our debt discount and issuance costs and a $9.5 million net change in operating assets and liabilities. The primary drivers of the changes in operating assets and liabilities were a $3.6 million decrease in accounts receivable, a $3.8 million increase in deferred revenue, and a $5.4 million increase in accrued expenses and other liabilities partially offset by a $2.1 million increase in deferred commissions and a $0.9 million increase in other assets. Customer growth and contract renewals for longer terms accounted for most of the increase in deferred revenue. We offer limited incentives for customers to enter into contract terms for more than one year. Deferred commissions increased due primarily to payments made to our sales force related to the direct and incremental costs of obtaining a customer contract. The decrease in accounts receivable and the increase in other assets were attributable primarily to the timing of our billings, cash collections, and cash payments. The increase in accrued expenses and other liabilities were attributable primarily to the timing of our payment of annual bonuses.
For the three months ended September 30, 2018, cash provided by operating activities was $7.6 million. The primary factors affecting our operating cash flows during the period were our net loss of $11.0 million, adjusted for non-cash charges of $1.1 million for depreciation and amortization of our property and equipment and intangible assets, $6.9 million of stock-based compensation expense, and a $10.4 million net change in operating assets and liabilities. The primary drivers of the changes in operating assets and liabilities were a $8.6 million increase in deferred revenue, a $3.3 million increase in accrued expenses and other liabilities, a $0.6 million increase in accounts payable, and a $2.5 million decrease in prepaid expenses partially offset by a $1.9 million increase in deferred commissions and a $1.7 million increase in accounts receivable. Customer growth accounted for most of the increase in deferred revenue. We offer limited incentives for customers to enter into contract terms for more than one year. Deferred commissions increased primarily due to additional payments made to our sales force related to the direct and incremental costs of obtaining a customer contract. The increases in accounts receivable and accounts payable were primarily attributable to the timing of our billings, cash collections, and cash payments. The increase in accrued expenses and other liabilities was attributable primarily to the timing of our payment of annual bonuses. The decrease in prepaid expenses was attributable primarily to the timing of payments for our annual user conference.
35

Table of Contents
For the nine months ended September 30, 2019, cash provided by operating activities was $28.6 million. The primary factors affecting our operating cash flows during the period were our net loss of $31.8 million, adjusted for non-cash charges of $2.9 million for depreciation and amortization of our property and equipment and intangible assets, $25.9 million of stock-based compensation expense, $1.1 million for amortization of our debt discount and issuance costs and a $30.7 million net change in operating assets and liabilities. The primary drivers of the changes in operating assets and liabilities were a $14.1 million increase in deferred revenue, a $9.8 million increase in accrued expenses and other liabilities, a $21.5 million decrease in accounts receivable and a $1.8 million decrease in our operating right-of-use asset partially offset by a $8.0 million increase in deferred commissions, a $3.7 million increase in prepaid expenses and other, a $2.3 million increase in other assets and a $2.2 million decrease in our operating lease liability. Customer growth and contract renewals for longer terms accounted for most of the increase in deferred revenue. The increase in deferred commissions was primarily due to payments made to our sales force related to the direct and incremental costs of obtaining a customer contract. The increase in accrued expenses and other liabilities and decrease in accounts receivable were primarily attributable to the timing of our billings, cash collections, and cash payments. The increases in other assets and prepaid expenses was attributable primarily to timing of payments relating to cloud infrastructure services and our annual user conference.
For the nine months ended September 30, 2018, cash used in operating activities was $6.8 million. The primary factors affecting our operating cash flows during the period were our net loss of $42.4 million, adjusted for non-cash charges of $2.9 million for depreciation and amortization of our property and equipment and intangible assets, $23.3 million of stock-based compensation expense and a $22.7 million net change in operating assets and liabilities. Included in our net loss during the nine months ended September 30, 2018 was a $6.6 million cash payment made to our former CEO pursuant to a separation agreement. The primary drivers of the changes in operating assets and liabilities were a $15.0 million increase in deferred revenue, a $6.9 million increase in accrued expenses and other liabilities, a $2.0 million increase in accounts payable, a $4.6 million decrease in accounts receivable and a $0.7 million decrease in prepaid expenses partially offset by a $5.6 million increase in deferred commissions. Customer growth accounted for most of the increase in deferred revenue. The increase in deferred commissions was primarily due to additional payments made to our sales force related to the direct and incremental costs of obtaining a customer contract. The increases in accounts payable and decrease in accounts receivable were primarily attributable to the timing of our billings, cash collections, and cash payments. The increase in accrued expenses and other liabilities was attributable primarily to the timing of our payment of annual bonuses. The decrease in prepaid expenses was attributable primarily to timing of payments for our annual user conference.
Investing Activities
Cash used in investing activities of $54.5 million for the three months ended September 30, 2019 was due primarily to $54.7 million in purchases of marketable securities partially offset by $1.5 million from maturities of marketable securities.
Cash used in investing activities of $2.4 million for the three months ended September 30, 2018 was due primarily to $6.4 million in purchases of marketable securities and $0.5 million of capital expenditures partially offset by proceeds of $4.6 million from maturities of marketable securities. Our capital expenditures were associated primarily with computer equipment in support of expanding our infrastructure and work force.
36

Table of Contents
Cash used in investing activities of $79.2 million for the nine months ended September 30, 2019 was due primarily to $95.5 million in purchases of marketable securities, $2.9 million in capital expenditures and $0.7 million in purchases of intangible assets partially offset by proceeds of $20.4 million from maturities of marketable securities. Our capital expenditures were associated primarily with computer and technology purchases in support of expanding our workforce.
Cash used in investing activities of $9.6 million for the nine months ended September 30, 2018 was due primarily to $17.7 million in purchases of marketable securities and $0.7 million of capital expenditures partially offset by proceeds of $9.0 million from maturities of marketable securities. Our capital expenditures were associated primarily with computer equipment in support of expanding our infrastructure and work force.
Financing Activities
Cash provided by financing activities of $344.3 million for the three months ended September 30, 2019 was due primarily to $335.9 million in proceeds from the issuance of our senior convertible notes, $5.9 million in proceeds from option exercises and $2.8 million in proceeds from shares issued in connection with our employee stock purchase plan.
Cash provided by financing activities of $9.1 million for the three months ended September 30, 2018 was due primarily to $7.5 million in proceeds from option exercises and $1.8 million in proceeds from shares issued in connection with our employee stock purchase plan.
Cash provided by financing activities of $362.0 million for the nine months ended September 30, 2019 was due primarily to $335.9 million in proceeds from the issuance of our senior convertible notes, $22.5 million in proceeds from option exercises and $4.9 million in proceeds from shares issued in connection with our employee stock purchase plan partially offset by $0.9 million in payments on financing obligations.
Cash provided by financing activities of $14.4 million for the nine months ended September 30, 2018 was due primarily to $13.9 million in proceeds from option exercises and $3.2 million in proceeds from shares issued in connection with our employee stock purchase plan partially offset by $1.9 million in taxes paid related to the net share settlements of stock-based compensation awards and $0.9 million in payments on capital lease and financing obligations.
Contractual Obligations and Commitments
During 2019, we entered into certain non-cancelable agreements with third-party providers for our use of cloud services in the ordinary course of business.
In August 2019, we issued $345.0 million aggregate principal amount of 1.125% Convertible Senior Notes due 2026 (the "2026 Notes"). The 2026 Notes will mature on August 15, 2026, unless earlier redeemed, repurchased or converted.
During 2019, we entered into certain non-cancelable agreements with third-party providers for our use of cloud services in the ordinary course of business. Under these agreements, we are committed to purchase $18,000 in fiscal year 2019, $1.2 million in fiscal year 2020, $2.3 million in fiscal year 2021, and $1.2 million in fiscal year 2022.
Other than the convertible senior notes and cloud services purchase commitments, there were no material changes in our contractual obligations and commitments from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on February 20, 2019.
37

Table of Contents
Off-Balance Sheet Arrangements
During all periods presented, we did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As a result, we are not exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in those types of relationships.
Critical Accounting Policies and Estimates
Our condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. U.S. GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, income taxes and related disclosures. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions.
During the nine months ended September 30, 2019, there were no significant changes to our critical accounting policies and estimates as described in the financial statements contained in the Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on February 20, 2019.
Item 3. Quantitative and Qualitative Disclosures about Market Risk 
For quantitative and qualitative disclosures about market risk, see “Item 7A., Quantitative and Qualitative Disclosures About Market Risk” of our Annual Report on Form 10-K for the year ended December 31, 2018. Other than the items described below, our exposures to market risk have not changed materially since December 31, 2018.
Interest Rate Sensitivity
We had cash, cash equivalents and marketable securities totaling $484.8 million as of September 30, 2019. The cash, cash equivalents and marketable securities are held for working capital purposes, including the acquisition of, or investment in, complementary products, technologies, assets, solutions, or businesses. Our investments are made primarily for capital preservation purposes. We do not enter into investments for trading or speculative purposes.
Our cash and cash equivalents consist primarily of cash and money market funds. Our exposure to market risk for changes in interest rates is limited because our cash and cash equivalents have a short-term maturity and are used primarily for working capital purposes.
Our portfolio of marketable securities was invested primarily in commercial paper and U.S. corporate and U.S. treasury debt securities and is subject to market risk due primarily to changes in interest rates. Fixed rate securities may have their market value adversely affected due to a rise in interest rates. Accordingly, our future investment income may fluctuate as a result of changes in interest rates, or we may suffer losses in principal if we are forced to sell securities that decline in market value as a result of changes in interest rates. 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 determined to be other-than-temporary.
An immediate increase of 100 basis points in interest rates would have resulted in an $853,000 market value reduction in our investment portfolio as of September 30, 2019. This estimate is based on a sensitivity model that measures market value changes when changes in interest rates occur. Fluctuations in the value of our investment securities caused by a change in interest rates (gains or losses on the
38

Table of Contents
carrying value) are recorded in other comprehensive income, and are realized only if we sell the underlying securities.
In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026. As these Notes have a fixed annual interest rate, we have no financial or economic interest exposure associated with changes in interest rates. However, the fair value of fixed rate debt instruments fluctuates when interest rates change. Additionally, the fair value can be affected when the market price of our common stock fluctuates. We carry the Notes at face value less unamortized discount on our balance sheet, and we present the fair value for required disclosure purposes only.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our principal executive officer and principal financial officer, our management conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report. Our disclosure controls and procedures are intended to provide assurance at a reasonable level that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.
In designing and evaluating our disclosure controls and procedures, management recognizes that any disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Based on management’s evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures are designed to, and are effective to, provide assurance at a reasonable level that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.
Changes in Internal Control Over Financial Reporting
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during our most recently completed fiscal quarter. Based on that evaluation, our principal executive officer and principal financial officer concluded that there has not been any material change in our internal control over financial reporting during the quarter covered by this report that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
39

Table of Contents
Part II. Other Information
Item 1. Legal Proceedings
From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently a party to any legal proceedings that in the opinion of our management, if determined adversely to us, would have a material adverse effect on our business, financial condition, operating results or cash flows. 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.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 2018 Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. Other than the item noted below, there have been no material changes during fiscal 2019 to the risk factors that were included in the Form 10-K.
Risks Related to Our Business and Industry
Our reported financial results may be adversely affected by changes in accounting principles generally accepted in the United States, including those related to leases.
Generally accepted accounting principles in the United States are subject to interpretation by the Financial Accounting Standards Board (FASB), the SEC, and various bodies formed to promulgate and interpret appropriate accounting principles. A change in these principles or interpretations could have a significant effect on our reported financial results and could affect the reporting of transactions completed before the announcement of a change.
In February 2016, the FASB issued guidance codified in ASC 842, Leases (ASU 2016-02), which amends the guidance in former ASC 840, Leases. We adopted this new standard on the effective date of January 1, 2019. The application of this guidance resulted in the addition of right-of-use assets and lease liabilities on the consolidated balance sheet. We have implemented changes to our accounting processes, internal controls and disclosures to support the new standard. See Note 1 to our accompanying condensed consolidated financial statements for information about ASU 2016-02.
Any difficulties in implementing new or revised accounting principles could cause us to fail to meet our financial reporting obligations, which could result in regulatory discipline, harm investors’ confidence in us, and adversely affect our stock price.
Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.
In general, under Section 382 of the United States Internal Revenue Code of 1986, as amended (the "Code"), a corporation that undergoes an ownership change within the meaning of Section 382 of the Code and the underlying regulations is subject to limitations on its ability to utilize its pre-change net operating losses ("NOLs"), to offset future taxable income. If our existing NOLs are subject to limitations arising from previous ownership changes, our ability to utilize NOLs could be limited by Section 382 of the Code. Future changes in our stock ownership, some of which are outside of our control, could result in an ownership change under Section 382 of the Code. Furthermore, our ability to utilize the NOLs of companies that we may acquire in the future may be subject to limitations. There is also a risk that either under prior regulations or other unforeseen reasons, our prior year NOLs could expire or otherwise be
40

Table of Contents
unavailable to offset future income tax liabilities. 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.
We have broad discretion to use the net proceeds from the offering of our convertible senior notes, which we may not use effectively.
We intend to use the net proceeds from our convertible note offering for working capital and other general corporate purposes, as well as the acquisition of, or investment in, complementary products, technologies, solutions, or businesses, although we currently have no commitments or agreements to enter into any such transactions. The net proceeds from that offering may be invested with a view towards long-term benefits for our stockholders and this may not increase our results of operations or market value. The failure by our management to apply those funds effectively may adversely affect our operations or business prospects.
The conditional conversion feature of our convertible senior notes, if triggered, may adversely affect our financial condition and operating results.
In the event the conditional conversion feature of our convertible senior notes is triggered, holders of notes will be entitled to convert the notes at any time during specified periods at their option. If one or more holders elect to convert their notes, unless we elect to satisfy our conversion obligation by delivering solely shares of our Class A common stock (other than paying cash in lieu of delivering any fractional share), we would be required to settle a portion or all of our conversion obligation through the payment of cash, which could adversely affect our liquidity. In addition, even if holders do not elect to convert their notes, we could be required under applicable accounting rules to reclassify all or a portion of the outstanding principal of the notes as a current rather than long-term liability, which would result in a material reduction of our net working capital.
Conversion of our convertible senior notes may dilute the ownership interest of our stockholders or may otherwise depress the price of our Class A common stock.
The conversion of some or all of our convertible senior notes may dilute the ownership interests of our stockholders. Upon conversion of the notes, we have the option to pay or deliver, as the case may be, cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock. If we elect to settle our conversion obligation in shares of our Class A common stock or a combination of cash and shares of our Class A common stock, any sales in the public market of our Class A common stock issuable upon such conversion could adversely affect prevailing market prices of our Class A common stock. In addition, the existence of the notes may encourage short selling by market participants that engage in hedging or arbitrage activity, and anticipated conversion of the notes into shares of our Class A common stock could depress the price of our Class A common stock.
Certain provisions in the indenture governing the notes offered in our convertible note offering may delay or prevent an otherwise beneficial takeover attempt of us.
Certain provisions in the indenture governing our convertible senior notes may make it more difficult or expensive for a third party to acquire us. For example, the indenture governing the notes will require us to repurchase the notes for cash upon the occurrence of a fundamental change (as defined in the indenture governing the notes) of us and, in certain circumstances, to increase the conversion rate for a holder that converts its notes in connection with a make-whole fundamental change. A takeover of us may trigger the requirement that we repurchase the notes and/or increase the conversion rate, which could make it more costly for a potential acquirer to engage in such takeover. Such additional costs may have the effect of delaying or preventing a takeover of us that would otherwise be beneficial to investors.
41

Table of Contents
Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt.
Our ability to make scheduled payments of the principal of, to pay interest on or to refinance our indebtedness, including our convertible senior notes, depends on our future performance, which is subject to economic, financial, competitive and other factors beyond our control. In addition, holders of the notes will have the right to require us to repurchase their notes for cash upon the occurrence of certain fundamental changes. Upon conversion of the notes, unless we elect to deliver solely shares of our Class A common stock to settle such conversion (other than paying cash in lieu of delivering any fractional share), we will be required to make cash payments in respect of the notes being converted. Our business may not continue to generate cash flow from operations in the future sufficient to service our debt and make necessary capital expenditures. If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as selling assets, restructuring debt or obtaining additional equity capital on terms that may be onerous or highly dilutive. Our ability to refinance our indebtedness will depend on the capital markets and our financial condition at such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in a default on our debt obligations.
The accounting method for convertible debt securities that may be settled in cash, such as our convertible senior notes, could have a material effect on our reported financial results.
Under FASB Accounting Standards Codification 470-20, Debt with Conversion and Other Options, (ASC 470-20), an entity must separately account for the liability and equity components of convertible debt instruments (such as our convertible senior notes) that may be settled entirely or partially in cash upon conversion in a manner that reflects the issuer’s economic interest cost. ASC 470-20 requires the value of the conversion option of the notes, representing the equity component, to be recorded as additional paid-in capital within stockholders’ equity in our consolidated balance sheet and as a discount to the notes, which reduces their initial carrying value. The carrying value of the notes, net of the discount and issuance costs, will be accreted up to the principal amount of the notes from the issuance date until maturity, which will result in non-cash charges to interest expense in our consolidated statement of operations. Accordingly, we will report lower net income or higher net loss in our financial results because ASC 470-20 requires interest to include both the current period’s accretion of the debt discount and issuance costs and the instrument’s coupon interest, which could adversely affect our reported or future financial results, the trading price of our Class A common stock and the trading price of the notes.
In addition, under certain circumstances, convertible debt instruments (such as the notes) that may be settled entirely or partly in cash are currently accounted for utilizing the treasury stock method, the effect of which is that the shares issuable upon conversion of the notes are not included in the calculation of diluted earnings per share except to the extent that the conversion value of the notes exceeds their principal amount, and the effect of the conversion on diluted earnings per share is not antidilutive. Under the treasury stock method, for diluted earnings per share purposes, the transaction is accounted for as if the number of shares of Class A common stock that would be necessary to settle such excess, if we elected to settle such excess in shares, are issued. We cannot be sure that the accounting standards in the future will continue to permit the use of the treasury stock method. If we are unable to use the treasury stock method in accounting for the shares issuable upon conversion of the notes, then our diluted earnings per share would be adversely affected.
We may still incur substantially more debt or take other actions which would intensify the risks discussed above or in our Annual Report on Form 10-K.
We and our subsidiaries may incur substantial additional debt in the future, some of which may be secured debt. We will not be restricted under the terms of the indenture governing the notes from
42

Table of Contents
incurring additional debt, securing existing or future debt, recapitalizing our debt, repurchasing our stock, pledging our assets, making investments, paying dividends, guaranteeing debt, or taking a number of other actions that are not limited by the terms of the indenture governing the notes that could have the effect of diminishing our ability to make payments on the notes when due.
Item 2. Unregistered Sales of Securities and Use of Proceeds
Sales of Unregistered Securities
Not applicable.
Use of Proceeds from Public Offerings of Common Stock
There has been no material change in the planned use of proceeds from our initial public offering as described in our final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act on December 12, 2014.
43

Table of Contents
Item 6. Exhibits
The following exhibits are being filed herewith or incorporated by reference herein:
Exhibit
Number
Description
4.1
Indenture, dated August 16, 2019, between Workiva Inc. and U.S. Bank National Association (incorporated by reference from Exhibit 4.1 to the Company's Current Report on Form 8-K filed on August 16,2019).
4.2
Form of 1.125% Convertible Senior Note due 2026 (incorporated by reference from Exhibit A to the Indenture filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed on August 16, 2019).
10.1
31.1
31.2
32.1  
32.2  
101
The following financial information from Workiva Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Loss, (iv) the Consolidated Statements of Changes in Stockholders Equity (Deficit), (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements.
104Cover Page Interactive Data File - (formatted as Inline XBRL and contained in Exhibit 101)

44

Table of Contents
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 6th day of November, 2019.
WORKIVA INC.
By:
/s/ Martin J. Vanderploeg, Ph.D.
Name:
Martin J. Vanderploeg, Ph.D.
Title:
President and Chief Executive Officer
By:
/s/ J. Stuart Miller
Name:
J. Stuart Miller
Title:
Executive Vice President and Chief Financial Officer
By:
/s/ Jill Klindt
Name:
Jill Klindt
Title:
Senior Vice President, Treasurer and Chief Accounting Officer

S-1