Workiva Inc. (NYSE:WK) Q4 2023 Earnings Call Transcript

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Jill Klindt: You can see that. I would chime in, Brad, on the guide that implied within that guidance is that, of course, we will be hiring. We’ll focus on, as Julie had talked about before, the best potential for growth and the best potential for success, whether it’s a geography, whether it’s solutions and we’re going to be really thoughtful about where we put those resources, but you will, as you can tell from the guide, you will see us hiring, continuing to hire in 2024.

Brad Reback: That’s great. And then, Julie, maybe higher level, if we think about the 16% sub guide, and I understand the conservatism there, but if we step away from the current period, maybe look a little bit longer term, what do you think the normalized organic sub growth rate is of the business today?

Julie Iskow: I guess you’re asking, will we be getting back to, maybe that 20% growth? Our subscription guide, yes, 16% growth guide of 16% at the midpoint for 2024. And we’re focused on that. We do aspire to get back there. 16% is not the limit to our upside, of course. Therefore, we’re not happy with it. We’re hopeful to see return in cap markets, adoption of ESG software to address the new regulations, and just overall improved software spending environment. So, we, again, see the long term durable growth market, significant TAM, and we’re going to go after it.

Operator: Our final question comes from the line of Adam Hotchkiss with Goldman Sachs. Please go ahead.

Adam Hotchkiss: Great. Thanks for taking the question. Julie, it’s pretty clear you’re making progress on the multi-solution front, but I’d be curious if we could go a layer deeper. How should we think about what your solution penetration looks like in your average customer today and how you think about how that white space evolves either this year or just over time broadly?

Julie Iskow: Sure. I will say we have thousands of customers, and I don’t have the number right in front of me, but we have a lot of white space there with adding additional solutions to the base that we have. Our install base is truly one of our most significant assets today. We just crossed over the 90% of the Fortune 100. We’ve got 85% of the Fortune 500. We have 80% of the Fortune 1000, and there is a lot of room there to have additional solution sales and platform sales to the base that we have. So, very optimistic. We highlighted a number of them on the call today. Our team is, again, getting strengthened when it comes to selling multi-solution and platform. So, when we look at our growth opportunity, this is a huge growth factor for us and, again, that’s how we’re approaching the TAM.

Operator: This does conclude today’s call. You may now disconnect.

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