Workiva (WK) 21 Feb 232022 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen. My name is Emma, and I will be your host operator on this call. After the prepared remarks, we will conduct a question-and-answer session. Instructions will be provided at that time. [Operator Instructions] Please note that this call is being recorded on February 21, 2023 at 5:00 PM Eastern.

at to call, meeting President Mike Development Investor like host to of now and today's for Rost, Relations would turn over the your Corporate I Workiva. Senior Vice Please go ahead.

you afternoon, Year Fiscal Call. for Good Conference thank joining for Quarter XXXX Workiva's us and Fourth and

During we discussing will the the announced in closed. today's release the that market call, press was be results issued after

Chief pre-recorded Chief Iskow, been has and Officer; and Executive our Marty call comments Officer. our will Klindt, Today's from Jill Julie Officer, Vanderploeg; President Financial our Operating and include Chief

a then Q&A will open We the call up for live session.

A the the available until replay Investor Relations of on release, February access in webcast listed available to press section. today's Information replay will is which this under XX, website be is XXXX. our

everyone first I today's statements forward-looking XXXX. full regarding and these future These future are Before would during and unknown that will making including remind not performance. uncertainties. performance, quarter subject statements the financial risks Workiva are to like guidance forward-looking cautions that be of begin, for guarantees and events statements to we known call, year we fiscal and

to for to occur that no to All today and the undertake current materially any factors our annual reflect report any obligation differ Company's results the after from and that reflect statement filings to could XX-K expectations forward-looking we events subsequent this call. update refer forward-looking only, statements. our made statements Please actual Form on cause

today's are we GAAP in press and financial Reconciliations to measures. today's included Also, measures during non-GAAP the information additional of course will release. refer certain call, to of certain non-GAAP also

our turning Vanderploeg. the that, Marty With CEO, begin call over by to we'll

April likely exciting us thank on you know that Iskow taking CEO over seen you, for Julie today. I Hello, be will and X. the as news joining have

and performance. the turn to our over discuss full-year I fourth let’s and call Julie Jill, quarter Before

total in XX% and the For revenue support, growth record XX% in in revenue, revenue. Workiva resulted of subscription generated quarter, and which

We the profit guidance margin of operating beating basis also points. delivered X.X%, our of XXX high-end a non-GAAP by

XXXX, of of guidance full-year the exceeded November the the February in target back set in XXXX. we and For XXXX set

in revenue in subscription and revenue. XX% performance and growth a rate strong total in Our resulted XX% support, of

have some terms pressures of seen deal macro cycles. we elongate demand, market In

demonstrating to navigate same our we capital value this of continue is We seeing environment outpacing time, in by the have At we in the QX the slowdowns platform. markets ESG are momentum seen SEC. and the

is paying Our strategy off. ESG and investment in

the XXX marketing generate continue In logos new QX, during companies. pipeline our our total customer to our count net sales grow global quarter, to We business. initiatives and bringing added and new X,XXX

remains gross benchmark. retention Our industry XX.X% revenue rate the of above

are see received pleased they value customers and from appreciate of strong teams. that the to the our continue support facing platform customer our We

of growth our propelled values. strong large delivered multiple growth QX, on by We deals solution multi-solution our in continued driving areas led In focus contract ESG.

and continue risk. showed organization's also increasingly solutions and revenue Our and role their strong year-over-year financial services GRC approach an taking to C-Suites prioritize active shaping to are in growth. Board's

performance in identify, solution businesses. manage risk their organizations suite track drive principled Our GRC and to enables to

and Workiva existing invested unique and services. bank that a that platform offering assured key one us from the brings GRC GRC ESG financial audit-ready only SEC, portfolio global the that Reporting, and secure, quarter offers differentiator added during competition. Financial in platform solution platform included is This large the Customers ESG, separates controlled, unified its a in this that of approach environment. to integrated reporting together

by a added a their This included portfolio chain customer reporting our solution by influenced considered GRC sources ESG management that management X solution supply large assurance existing platform's and ESG. to security, We data Big stringent the were advisory company and only because connect to data and SEC, ability the of the opportunity capabilities, firm. Workiva was multinational

quickly than business. show ESG of solution. returns more our that key has spent ESG on SEC customers a many ESG significantly Early part fastest in on our growing deals. component expansion has solution become become the

we six-figure services company several a for account landmark quarter, reporting. including using a global Workiva ESG global with mid During accounts expansion be the their ESG signed that the platform will

in the business deal win client sustainability Big solutions X their project. a be coordination ESG advisory We company co-sell statutory was has This of deliver with also global This who new will using SEC technology as global core a ESG tenant and provider. strategy. with a solutions. The private had its logo a partner will reporting a with

was solution. This quarter a during purchased project. be our will the enterprise advised will that ESG company logo who Big along new partner with Another the X private an EU-based also manufacturing reporting win deliver annual by

source, many we and partner deals in year. engage deliver each advisory of Our influence, the

win when In are involved, a have larger higher rate. addition, size partners we consistently deal and

a market. rapidly the new into ESG passed expanding Directive Corporate is In Sustainability November, European law. Reporting

over EU beginning a new be are required positioned to XX capture value be years, we will directive, market to including with governance, report against XX,XXX It climate, and standards year reporting uniquely workforce. XXXX annual in believe chain, As outlined We multiple companies over this the fiscal will expanded opportunity. in phased process.

of XXXX regulatory be mandates AAA U.S., a our In year. corporate the is which ESG first SEC clarified ESG rule, as well to in climate expected assessment. to half the MSCI December, the Ratings the In of efforts see continue this such strong we earned in rating disclosure ahead demand proposed us specific

risks most the of We rating. SaaS significant status in only signifies leader and that This has public are one opportunities. managing our industry this companies achieved ESG four U.S. in the

the of like behalf global our employees. dedicated entire team to thank of On I'd team, leadership

helped throughout financial strong strengthen advance efforts and XXXX results. produce our focused Workiva culture Your

of are unrivaled. out has our CEO. launching in the the our We last companies. It first XXXX reporting, include Workiva customers our first of the integrator our five platform honor Workiva an capacities solution the the technology, XXXX, cloud XX% now years, leading Fortune started and people SEC X,XXX products, offers XX% Today, lead XX Our soon and last and XXX to been assured in thereafter. over world's for many Fortune as

thoughtfully champion support executive of better. is company; people the our so of have achieved we best customers will great accomplish best I an Non-Executive creating building our than the it of made has Julie excellence. with the strategy. on three Chair Workiva the leadership our we about are organization a her in the as Workiva's be shaping still and products CEO. always what built we the hands just focused future. to about role has Collectively, serving In and and she I'm employee continue be and great and to continue past together. executing days as proud culture will years been software team new Board, team. and spent remarkable more ahead, our day-one my has things She and arrival, have Since continue energized to on together with

hand to call like Julie. now would I the to over

you, companies consider privilege the our Thank of to of innovative time. most is and distinct I it Marty. Workiva technology a relevant succeed you. one

next to We future. transformative platform, unbridled phase our potential, an And Workiva's continuing legacy into and our team a incredibly build forward which talented move forward have and to as of growth we impact. our looking on with enduring I'm work foundation to

continue success; and core in we of experience impact. a aligned the through our and on These people-first commitment will be greater innovation; as I our prioritization to focused to of continuous culture; values: execution initiatives. productivity a the operations principles Workiva's drive and cornerstones are and Marty customer of performance strategic

about prepared few Before remarks highlights summarize over to the to quarter the a I turn from key call Jill, Marty's full-year. like and I'd

and revenue we guidance First, the margin. finished and we strong year on operating our beat full-year

Second, go-to-market to ESG of our market on strategy fastest made in order technology, was we capitalize a this This that the significant and growing solutions is of in investments talent, opportunity. partners, result our in one XXXX.

we one Reporting, that the company Third, in together audit-ready GRC brings controlled, and are platform. secure, only ESG, Financial

these our our differentiated retention technology continue opportunities higher large address stakeholder remain our have of leads capabilities. $XX of increasing value and relevant been to future further platform and our global revenue we as values, to loyal This expansion, more and strong We to continues and platform TAM. never realize account bullish rates. given customer billion on untapped our the finally, contract And customer base scrutiny. Our times our

over the With you, to that, now Jill. I'll call turn

to Julie, to alongside Workiva drive advance you, partners, and Workiva the and for to team of and I'm rest continue working strategy as customers, the and our you shareholders. Thank congratulations. on our excited value execute we employees,

guidance fourth for results. before our provide Today, I to line opening will turn XXXX full-year and Let's and our the for performance QX financial questions. review quarter the

full-year XXXX. and for As XXXX of a beat strong on with on Marty to both year a operating Julie ended a Workiva, for discussed, was positive healthy solid revenue by the a highlighted and finish margin QX note performance what and we

QX We demand at revenue revenue solution We the continued portfolio. XXXX accounted to guidance services Both see across higher million. the by broad-based $X.X midpoint We contribution revenue for S&S with on beat. results operating the our and at lower QX beat. $XX the with million. employee-related revenue along beat expenses majority The performance of and by to guidance income T&E midpoint the led operating beat

through showing from QX $XXX.X highlights for XX.X% key in some We go XX.X% growth QX. XXXX. the let's Now results of was $XXX.X generated and million, XXXX. of revenue and from support million, Subscription quarter fourth QX total revenue up

last came increase helps QX New drive growth the of logos both in strong in revenue the expansion from and XX months. customers QX revenue added in new XX% account XXXX. S&S in

Professional of for by increase customers was in net QX QX driven a up last $XX.X services customer was X.X% new X,XXX, XBRL The We growth revenue services million the higher count XXXX, QX of quarter from added X,XXX in XXX year. total from customers XXXX. a same revenue.

count customers. customer XXX includes total ParsePort Our

our XXX increase the retention subscription same our of of fourth points for period revenue revenue rate year. rate for With This of add-ons, was rate quarter QX XXX% XX.X% to support XXXX XXXX, XX% to last a XXXX. XXX.X% mentioned, Marty and to an to the quarter As XXXX. support quarter is subscription the up best-in-class compared third compared fourth for retention compared basis and the in declined

purchased have impacted solution to but XXXX the customers have during the is QX transitioned this metric discussed, XXXX, being capital ACV As market lower of in by a cost our we lifecycle who ongoing our calculation.

have our of higher full-year data. quarter. note we Please customers the the capital fourth comparable a in rate of this in be calculations included points metric basis be ParsePort the not will Excluding until XXX impact markets, retention will

Marty the quarter, over valued contracts over number $XXX,XXX, $XXX,XXX, XXXX. The from QX of totaled QX fourth XX% XX% customers XX% number XXX, XXX expansion prior totaled continuing subscription year. our As valued quarter fourth year, valued to deals In up number over of multi-solution we growth. XXXX, has the focus contracts noted, of show $XXX,XXX account the per led X,XXX and up to larger from of in The QX had contracts from contracts the at at XXXX. on up

QX, year-ago. Gross profit in Gross same was expenses the versus increased XX.X% XX.X% margin QX Operating from hiring labor to in investment totaled $XXX.X XXXX quarter million return quarter a XX% up QX XX% due in travel. XXXX. to in latest from third-party and the

XXXX. led to We results. continued QX operating QX totaled to December leverage. talk operating securities posted have marketable compared operating million a of an in profit QX $X.X We and our Those of to XXXX $X.X our in cash, strong of focus XX, At an profit about XX, $X.X XXXX, balance on efforts XXXX. operating compared at decrease $XXX to million September the million, million cash equivalents,

same in in the an quarter increase cash million activities of operating from cash of $X.X flows compared $X.X with XXXX year-ago. a resulted in million in adhesive Cash QX

of sixth cash from XXXX, delivering positive were million full-year in $XX.X the activities. cash For year, operating the we for consecutive flow

turn now guidance. to Let's our

believe current assumptions environment. continue are for macro the guidance We our to prudent

we range million. revenue quarter first total to XXXX, expect $XXX from $XXX the to For million of

range non-GAAP net $XX $XX to operating $X.XX per a on $X.XX basis. from of million expect loss We a loss million, share to to

count weighted $XX.X average be shares. share will approximately Our million

timing flat. and decline expect QX significant annual with coupled events in a in-person of operating be expenses the increase growth in nearly drove services We to employee The sequential seasonal results. return

For million. from to million to XXXX, range $XXX $XXX we full-year revenue expect total the

$X.XX or a setting for non-GAAP guidance $X to loss from of $X million to share to per net basis. are $X.XX million, loss on a We operating range our

be count will share million shares. weighted Our approximately $XX average

expect post We seventh single-digit a services and cash low for full-year free the for be to the year. percent, flow growth we consecutive expect full-year positive to XXXX,

improved in for year. are operating While we we projecting loss a margins to of remainder guiding are the the QX,

committed outlined With post that, to QX, be be be to and in a non-GAAP second smaller remain margins half to QX. profitable and XXXX. Investor expect loss model of are Day. QX, in at XXXX will operating long-term XXXX, We committed the in for in breakeven the significantly in our We the we full-year improved profitable September

and and I summary, thank for our work In all continued XXXX. customers, the want in hard support partners employees, to

to important continues to to focused growth expanding on a multiple points. would Before our market. One, long-term that have levers. and includes customers. reiterate opportunity like I and Q&A, rapidly our the Two, are we deliver we turn new highly for platform we value ESG three significant differentiated This

As in in three, Marty we one only platform. Financial highlighted, margin together we Reporting, expect sequential operating that are GRC and strong audit-ready company QX. quarter XXXX in and And ESG, Julie in the improvement controlled, secure, each beginning brings

We operating long-term are committed our to model.

Operator, will the We your Q&A we session. are questions. begin now to ready take

with of Instructions] Thank the first from you. Your Rob line Oliver question [Operator comes today Baird.

is Your line now open.

questions. Great. taking Good Thanks afternoon. for my

And success soon. great and Julie, maybe for guys, with I it's to Marty, the been both guess is you you question to of start. all, the working congratulations. see and you over again of hope every years First you wish

the there things on that on. in with like a of are your sound prepared macro remarks going couple kind Just really environment, of

hand, On cycles one you companies called the software out uncommon Marty, nowadays. for elongated not deal

I offset of some think that that slowdown. mentioned other helping ESG of the is the you to pace On

macro? what So And and a could you start I in that little your bit continued ESG guide? here Has then played the a macro that quick pace year, you're for into Thanks. the new in follow-up. how talk seeing had the of about

our this, we regulatory, little there. on some. platform also mission-critical the I occasionally definitely say But stuff. and feel and We focused extending said I'll see is is Thanks. Sure. it's we're a macro the out prepared bit. deals – in remarks, very do Like

all So two pleased our cap from markets back based that ESG macro us. with way on it the platform us. and very on all customers we really beat November I performance made We're off. And down on of even has when XXXX, this, hit was I'm SEC ESG our having the markets. performance. we the were resonate think dinged thing really death taken sort actually capability of really and one and platform to that was for to Those starting forecast this the

were planned and we like number our over XX% quarter, Fourth bookings.

Boards we're said, it's really opportunity the always Europe and real. like – is know there's knows generational real, seeing, for ESG a So us. I've

So is macro and us other there. that doesn't the It markets affect SEC. much than cap

next about frankly. year, bullish pretty we're So

Great.

a remarks things to on? that model. there I know you return a be I of the prepared have of Are a – know commentary throughout reconfiguring more And below, – full-year in Jill, guys follow-up events. income The variance to just the are the just little relative in relative for whole mentioned deal was you in-person Is been And there Okay. put on there. wanted Appreciate some Thanks, And a Marty. that. does other one come year. to you. I expectations. appreciating a finer of to going your our Europe bit trajectory the point – the operating of know a get I bit think, call-out Street partner-led.

you expenses around the year first this in to year thinking relative year the Just Thanks. would and the you're about losses and great. could that, provide how be overall it the of half any color the

definitely. for question. the Yes, Thanks

in a So QX we events we of, And I well in remember, hybrid XXXX still move you we're not fairly great amount during together. to we remarks, locked as do our some making mentioned get – the teams if see have we because as down did were certain during prepared care taking XXXX. into that environment,

marketing last kickoff in And forward And kickoff all be development And an be going event, also we to it's event are things that going to a XXXX. of event in-person together, in-person but sales QX holding year, sales them – in expect do so we bring QX. team an in not and teams we're us. to for as way it's those important were really had

is the into And that that XXXX, guidance. it's of we're piece so T&E a spend in seeing so

of the briefly about talked we in that, expenses. of employee piece other some The seasonality

we making about we the were that hired, in As XXXX. investments talked we all

go some in until so don't XXXX. those the happen of you – the impact you of that Some hiring later into see full-year hiring year,

being we're careful long-term our moving opportunity. we very And that's and we But that, and forward very from need another still we're there And the I we're very what in this is that invested to otherwise, you'll our hear to leverage business. those And model using that on in execute operating numbers. to the there amount resources have business. use order still on is of so going piece in our our some we in believe in that And Julie it. return in much know towards travel of strategy

I just XXXX. slowed at that In XXXX, of we general – we reasons of community. back QX everyone invest beaten and November investment to that we we little think to a QX down, our investor in actually we've that want and to request stuff macro to some were – one obvious of about told had QX in sort ESG. the going In businesses of over resource reduce streamlined of sorry, that to a investment, pulled the we of that I for while I'm actually core that We add death. the response whole and We moved on bit. sentiment, ESG we've did investment third

But has very we Julie and created big tremendous showing in there. job just of demand doing the TAM matter we're been SaaS fact a and wonderful So we're of very that not all piece streamlining all and happened the equal, a early are is companies putting just success in. the and efficiency upon days, –

than continue in starting events QX. of made we to We're good to But have is that And profitable return investments plan to demand things. QX a go to the and desire back profit. and one-time because XXXX worse way, show then in the towards just looks understand it place let other heading So we also tack we some their put growth. and in more

comfortable We all we plug right didn't away people. are. after hiring just to So very where want those training we're and pull the just

TAM, of thoughtful win. careful, we're just to And at beginning opportunity we but the a we're where the and right the very greenfield right have large

significant using winning We Fortune have we – I and ESG. the part think the we're in the for solution, U.S. a of XXXX best our solution already have very

we're operating to more why model, really back bullish couple we're really, pack. going of to compared So a we definitely quarters go are the that's of the rest of to profitable but delayed and a sort

Very it. guys. Appreciate you, Thank Got helpful. it.

question Your line with of DeGasperi Berenberg. next comes the Andrew from

Your line is now open.

Thanks Marty, for the to taking me my as the And planned this is was of you guess, congratulations I to – I kind specific Julie, hope for congratulations. mean like lead to the sound it question, And I I'm that my questions. sounds around a maybe next I obvious, that that. one is change while. well. drove what top? wondering timing at led if was just to there guess, would something

to XXX% investors. way outcomes really more do so, almost complex business taking And X.X hired It's of intention No. on when years. confidence been and Julie about I protecting in a X.X certainly felt I years orderly the that with of had, transition, really I don't company was me. think her all making and she's and operations She's It it. with good is that. felt we ready. she from protecting we She about very the us an handle has the was whole and really have Andrew. doing got ready, a mean been over good ability in the and

really precipitated right So we time. it. Nothing just think the it's

can Europe, particularly wanted That's there, put ask, what's an side. you of helpful. just update go-to-market terms terms of And on you in the give us leadership I to in in region. sounds Maybe there? that anything making want the but the on like wondering all to year if just for are And that elaborate investments that, from going it unrelated to you're there's you then on

new I get out a the think ago. would of slow, couldn't existing Europe say contract, I we in ago, Sales he hired month Well, just of VP our this, is there months right? several this hiring started

feel both we've some And streamlined beast. done sales different in the Europe Europe We about APAC. teams we our have is a and new good really We've in changes So there. leadership it.

have hang they're starting team, We under get the it leadership. a of really his to and good

And have we've But for So last to whole huge work with in sustainability that good here we'll had the And the we pretty ESG has CSRD, doubt. do of quarters. been we Europe, be couple ready reporting, it's some no there, reporting quarters mandated a opportunity. think that.

very still bullish And so overall, Europe. I'm on

get thanks. in I'll queue. back Well, the

comes Goldman from Hotchkiss of next with line Your Sachs. question the Adam

Your line is open. now

Julie on a wanted for your Marty Good all I taking new question. role the Europe my finer to the I afternoon. just back congratulations echo questions. going of on on and forward. to point put wishing Thanks really best Andrew's the

share I pretty I like last to you've clear the there, about think perspective made in year looks from investments a that been with those there's and that consistent the out? sort of of has play model. a relatively progress lot few And how ParsePort what thinking investments you CSRD over long there takes rev of it are the it's think and number years. ultimately a for and the How upside this

expect starting good now, to in CSRD That's latter we a becoming time that's has see right we're half see see is real. And leadership really out there. but figure We the had of when year the year. of everything growth this growth latter I accelerated and mean to good there to growth seeing accelerated question. the half very

lot things going a there's So on then. of

ESG our and bit of building year ESG distribution A have still. working go left did we're distribution team certainly, we to with we account all hiring and is So the little owners. lot last a around

So right in that's all progress now.

of next quarter this – we'll I'm start and that see return year And a year, for third so sorry. to of fourth

that. just the on of perspective, world, you competitors, what helpful. competitive or seeing then a do it's regulation? the as guys? from the that on the for just really buckets flip there ahead you sort there of that's for That's for on point, side, two sort sort Thanks the from are ESG this seeing whether see cause you And Oracles No. SAPs, back you a an of being the of Or of you're opportunity? disruptors of concern Anything the

focused carbon more carbon I are accounting markets. itself, huge a there'll accounting. in on and mean guys big Carbon has, of The TAM. be

still focus and again. primarily now new And them them The so we're seeing we accounts disruptors, there. see in

issue rate in like against or of haven't I terms lost win we them had them. mean some each of And one for that. have We usually, something to might pre-relations. one it's

mean up. the been we're this. straight I pretty just platform, winning against the all We of a have We've for competitors. was much less big advantage made terms in or more

why the rest to on far, of had distribution are I was was continues said, – rapidly. the to paying while little bit go it in So pipeline really it's that's product. felt important lead off. overperformance phase And big expand strong this not we're had us the terms year out disruptors and we investment the but a we the so Like We of disrupting, I the surprised when why world. an of and with did

bullish really on So we're it.

Thank Marty. helpful. really all It's you,

next comes with Stotler question of Matt Your William Blair. from the line

line now is Your open.

comps. see It's great that to you question from Jill, everybody. net start so. to the the Marty, up to with Maybe here by in do Obviously, Julie the questions. Thank Congratulations, looking taking forward continuing who the the and far. quarter. nice year-over-year retention. tick asked I'll gave sequentially working color big on around Julie. it's first echoing and both you so Hey, off sentiment you, Marty for questions everyone been

right? key how would within would role of of forward seems that NRR be ultimate ESG, in growth and of is components you going the the some of kind helpful. any some think thoughts going guidance, and factors but you are it then and frame there key in XXXX going terms to GRC forward, maybe there love in up be kind to like the rate what's included into that get As NRR other to more there, color play Obviously,

customer – impact Yes. We we intend impact expect with expand how expect of for levels, but teams of we peaceful keep our be of our that customers it happy, some we thinking metrics. really all can to course, to add-ons ability cap market's retention teams then keep We maintaining that to our customers. retention by the base can relevant to And that development and maintain historical to do on able our success the platform our especially and and encouraged best-in-class related to, keep returning think metric. to our about to we're our to keep very of our do that

add is the working. or for talked vision and would you mean, adds explain I it and that I we're and how where really future value I them, play customers the prospects, resonates. investing platform day a our several when to that more for

using lot we're have. everything see, going to and deals for we a as platform did so And much this add-on pretty quarter, customers the more almost that we

up. So that's – I number think that that is what's bring going to help

enablement partner helpful. it. then front. one maybe the It's Got And very on all

to case that the couple motion prepared your just X observations consulting with We'd to and then seeing wins in use moving love the You're a maybe any are? to at how get enablement broader forward. point firms. look getting And remarks mentioned you partner effort in where as on forward partners XXXX? key of partners creation You a terms Big update is of

acquisition they're I'll integral that while Partners continue both a Sure. in our take part customer we our to strategy. about relationships and one. for sourcing in us work of And deep talking deal wherever an now. it co-sell and higher They prospects. we be leverage value sizes to higher proposition the the win communicate And rates. their involved, help to motions. have deal with our of C-suite importantly, with We've growth us been customers

implementation services our relationships. focused on very advisory partner in invest I to would say continuing And we're they're So services. with also along the

more also So our they help even which help value retention from with customers that our rate. platform, recognize can

them to engagement S&S the leverage partnerships. So have, and and to accelerated we're to continue we for we're of solutions levels partners looking stronger forward allow the across us, going all for portfolio in of

that, sign this is deals that that, seeing Julie reduced. as terms I think like of but said, well, burden services everybody in bigger deals, may also I The we're our understands Yes. the platform, like thing being – broader is I sounds

our of off growth because, part is several reason is points fact, took in we're And on almost growth down That margins. In QX that's revenue flat a as quarter-over-quarter. services be we think our the services I work, in that lot help QX. a terms in good of our thing concerned. us partners, really Once supporting I'm far as we'll but of that obviously will rate retire

you much. Thank Great. very

Your Joe the from of line Truist. next with question comes Meares

now is line open. Your

a what's congrats, level, and Great. Marty Thanks the profitability else? it XXXX? maybe Is for question your Julie, taking Julie. biggest for growth focus high and something at or for A or question

I question. the didn't hear

Well, profitability for XXXX?

biggest focus growth? your What's Yes.

We to growth four are about on Those continue our that executing levers purpose are we for talk strategy. solutions. fit going

Marty course, platform, play partners’ excellence platform that just our ecosystem Our the across and we globe described. of and as the described

those are ESG at for of for four the the GRC along focus areas and financial and with reporting So looking selling integrated that We're, with reporting. ESG trio us course, along of growth. our of assured

implies kind commentary is full-year. XX% the customers Is large? any Is guess growth revenue helpful. of believe plus from ESG that for that half of very that from coming still I much. like think, then customer That's then versus How ESG the X,XXX much around coming subscription growth? around ParsePort? about services runway customers? I so current within the regarding And And I growth base commentary the Thanks of and new

Yes.

have portfolio demand So our contribution we all across revenue. broad-based really our growth do solutions across have continue and and solution in to

about it our talk and in solution QX ESG, growing was fastest to we related QX. As

ESG, to smaller a solutions, the portfolio compared really contributions And to long from continued have but the more solutions. throughout so some it's on but will looking tenured we're forward of base growth

again. Thanks

of Steve Enders the from with comes Citi. question next line Your

Your line now open. is

Okay, I guess for great. the the how ESG side going we about the new for and here? parts questions again should think the to taking on here. quarter the really I commentary maybe the everybody the and appreciate the into roles guess, on executed on our Thanks other congrats the maybe start, in quarter. performance they how your expectations versus portfolio of bookings,

Sure.

when Especially, fruition. year surprise that come booking the was the ESG mentioned, make solution you to sure. QX, and you we love pleasant QX really As and it see top outperforming to of investment, in for

quarter. the risk play. that the that also other just investments the product, And it. reversed continued create better had to value. risk. We selling low enhance in They that's gotten and more up and they level We've we've wanted of at Integrated And key the deals made is very at platform We had got one part partially platform on a because integrated had it. levels. won everything whole competitors to senior good

So that really is resonating.

had And quarter, really financial good good a had quarter. services a

a without really and it's stability play. very us is approach. large on reason And platform so overall as TAM And that's we very a have is a always of lot we're large gives say, I creates competitor Its it’s really so the TAM. the a a portfolio that bullish focused

days there. just it's so early And

So of very from view. we're point fortunate that

are on the that to are Okay, great. to you beginning I funnel? the provided follow-up, appreciate still you're on opportunities I of thinking as new. to contributor still kind the point about top a and coming But guess the answer Is think of regulations deals guess there. CSRD fairly for meaningful the maybe have pipeline about side? new [guidance] ESG mean, does know XXXX? I Or primarily impact here what how I are executing that the at preexisting against that having this in we I

head, infrastructure just better we – earlier. go-to-market I that's team we North then inquiries alluded out of lots the start America. on its the we sure. for out it, getting a Well, have days. later, as And nail early to little about there of the Europe the We're ESG in because building And it's building cheaper here. you the in ESG started Also, started hit and better

in to good of The And to team up interest. we're very coming I there start making do countries, I terms is the everybody Australia, EU same you're committed going thing. going speed. regulations is happen. to CSRD mandating type So other happen. of going it gearing traction reporting. the the seeing seeing mean we're the Switzerland, this to countries And is different all studying the that UK, up think to are from is

about talking keep the I why that's so And TAM.

is and it it. even that funnel has started see they But early have feed Yes, days do funnel? still in in And Now, to to North our and feed what it's the program. how the they that that SEC this we But all buy to and in the whole North the started political has and to ESG people has it America doing. Europe. the become know and U.S. know show and coming continue is in willingness Board’s America, to bantering, the invest

whole the we're started fortuitous about optimistic said, meeting, in company obviously the I this been like I've years bullish today, really events. company is on, Workiva I XX the that's yes, so was most since we ago, So, reason so the the telling

hear. Perfect. here. I the questions you to taking That's great appreciate

next Jester of the Your line Daniel BMO. comes question from with

open. line Your is now

Great. Good for everyone. my evening, Thanks question. taking

just for clear for from capture for distribution that a technology make go-to-market? XXXX year to and of in how be order the be in investment was of I it's I here? front need Or XXXX, your been do and more investments wonder we think us? it ESG. sort more should Is the need on looking many things to commentary, to XXXX place truly side, all in opportunity that's of

off, about let this first me say R&D. Well,

In terms percentage to It's spend, going it's peaked, coming of of okay? now. down start

have for time. really sustain to a robust of our able and some they're to terms team good goals products in going We be

the we opportunities, of So the forward distribution. thousands moving bulk is of tens mean, targets. have I potential investment of

APAC we're XX,XXX and U.S. even. in America, demand in I seeing think EMEA it's in in North a some the there's and lot too,

with I there. going have, for ESG resources we have ESG be product, to and platform, good the most going we're think we do just fine all to ultimately, roadmap where it's coverage and the that's for remains. But account So investment for to be about the of able GRC, a the

you then And $XX maybe gone helpful. the little we've That's the Jill, on in in a guide. Thanks. here, to comp, it. million over million maybe now stock-based million bit but Got for $XX weeds quickly, from to $XX

should growing the to Anything that's outsized some Is revenue. of be helpful? there faster stock-based this? kind in help something about there Thanks. cyclicality comp? would than Is be to so we there thinking of And size growth terms way sort of

Sure.

that we way of and will to general, and put our important together believe stock-comp So sometimes compensate reward adjustments compensation stock-comp employees. guess, within is transitions one-time continue continue we we But I an incent team. the we packages. that within we, part to have And how be if do it our a have in

you will to so there. it one-time there would sometimes items But to – there sometimes say. that can load, your through continue And see question, in a growth similar be run can be I

Yes.

about you too. we're top-notch of now. all layoffs availability day me people most the mean give this to and keep we them have, I have the the people The you part. that, incentives. in comment and age, Let employed labor hearing are on want for And these to

a doing, fluctuate leadership Now had depending two last over year-to-year lot but to it's we the going years. changes we're of what on

I think it. that had a with lot to do

accounting, be you And larger. in I is very affect have first in and it's leaving general, But age them The that incentive competitive. you typically, important. day just do to give people also the this so. think And to

Julie, good Marty, Great. luck. you. Thank

Northland Grondahl line the Mike Securities. Your of next from with comes question

now Your line open. is

a have down in me of little bit Could deals I win directionally secondly, Marty, for markets And guidance? think quantify was channel, deals. both. you you then the why XXXX to Congratulations what's higher bigger Thanks. year-over-year. in partner you a for and you bit understand rate And embedded they're that when win mentioned sort little then capital SEC a lastly, us? just you help maybe

– can't was question I I of is the that first They so bigger but I that. material. question? some get I'm Mike Well, haven't that from don't is, can the really part the you – what material, answer weight the data, color sorry we is and increase looked the are in of It maybe win at but later, – directionally, next

down. being SEC

just takeaways you traditional printers being as on SEC well targets, from have foreign really new and less many We're essentially. public doing in don't you but fewer companies still it's public have the coming companies. new filers, there's just down, and

year-over-year. Let were just still me revenue the is clear, growing. bookings down It's the be

my any was then retention Our too there, and growth sales brain. results are for the question? almost. Three last questions is much what so high And

guidance. Capital markets

We have last from lesson there. in little my comment. very time learned I've a made I the

say last few markets Capital is capital very We a days. closed little upside. will this, I markets. IPOs we in have the few

investors always you to it's I wrote So not give like us, about someone this. the hope, guidance. a that to built have know the right, The baseline. but We guidance, prior into

beat. numbers people Some invest going people really they call confident it in or to can conservative. We make we're that like feel to

way, we that And and leaving markets we're behave always cap so yes, out.

lot. Hey, it. thanks a Got

the of comes James. with question Alex next line Your Sklar from Raymond

I is the to great with all on color and This congratulations And to Julie. it's to Alex. activities. wanted hear John start ESG, ESG for just on

the Really call XX%? question, Marty within the but great. we in earlier or where like two-year an a there for alluded Is be any think adoption get to outlook the I curve would terms look that adoption just then five-year? installed one, to color of or base? to, ESG solution it, are XX% And what's a

Well, in we're in very days. – the early

something that. many how the We in in logos have have believe, we in I how – U.S., U.S., but I the And like the logos. several X,XXX many U.S., hundred now? track lose

you to years, to now. I is guessing going under probably XX%, So That's we're a read we the I'm XX%? plan go Julie XX months, and will if two faster. back because that XX% it's But out guys that. rulings well will and long get poor do withstand lot SEC to it it penetrated. But take the come this to us hard half, a two later. How hate they on to say XX%, don't litigation, to

demand of plenty seeing We're SEC without rigs. the

the SEC going stuff. a – another to their come they report just to existing SEC your way environment. to going to in we're regulatory with it ESG know. on don't – for with in – their company I the think And very be to natural We're not do to it's add hard I and also it's say, just So they thing

seasonal. Perfect. here follow-up That to there ask bit They you'd one that was duration in Thank billings to with timing impacted call out helpful want you. color quick regard seemed there. stronger that or number? on Anything just the a And than I XQ.

Sure.

and there, the we results nice our QX. about, help that Very QX. by for billings pleased drive did see, did we bookings in So as up really talked

with about So excited that. us we XXXX and going leads what we're where into do that can

record really the and We amount. had significant billings were the We demand with QX Yes. a by in activity. pleased

Thank you very much.

Stifel. of Reback line from Brad with comes question next Your the

Your line now is open.

very to? that on XQ, Great. what's a on related seasonal much. of The Jill, clarification. Thanks quick point employees commentary

Payroll things of taxes, match, QX. XXX(k) those heavier tend in to be types

year, it last recall, U.S. the might You in match first was had XXX(k) we year that a the

starts and just – And to for just so you. start the to build to something wanted plan that – that need call of that is into is out to we that all

then, last they a bit think we I this added that ParsePort, forward? down How should going And taking Julie, customers year. about out versus look were at Great. if year,

about You can drop our was about think due – capital markets that think that. as the to business, primarily

That’s great. Thank you very much.

Sure.

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