Workiva (WK): Beaten Down, But Poised for Growth
Workiva (NYSE: WK) is quietly setting up as a compelling opportunity for investors looking for growth at a discount. The stock is still down 55% from its 2021 highs, yet the company continues to deliver steady results — including a solid first quarter that beat expectations on both revenue and earnings.
In Q1 2025, Workiva reported $206 million in revenue, up 17% year-over-year and above management’s own guidance. Even more impressive, while the company posted a GAAP loss of $0.38 per share, its non-GAAP profit came in at $0.14 per share, double what management had forecast. That kind of execution shows a company balancing growth investments while keeping profitability within reach.
What stands out is Workiva’s traction with its biggest customers. While overall customer count rose modestly to 6,385, the real story is its growing number of high-spending customers, with increasing counts in the $100,000, $300,000, and $500,000 annual contract tiers. That signals strong product-market fit among enterprise clients who are willing to pay more for Workiva’s platform.
The stock sold off after the Q1 report, partly due to softer forward guidance and rising expenses as the company pushes harder on sales and marketing. But we think that’s a short-term reaction. CEO Julie Iskow made it clear the company is leaning into demand across its product portfolio, and with $767 million in cash on hand, Workiva has the resources to stay aggressive without jeopardizing its balance sheet.
Valuation also looks attractive here. The stock trades at a price-to-sales ratio of 4.9, close to its five-year lows and nearly a 50% discount to its average P/S ratio of 9.6 during that period. Analysts agree there’s upside: the average price target is $102, implying a 54% gain from current levels, with the high target sitting at $112 for a potential 70% return over the next year or so.
For investors willing to be patient through near-term volatility, we think Workiva offers a chance to buy a fast-growing software platform at a price that hasn’t been this reasonable in years. The combination of enterprise demand, expanding large contracts, and improving profitability potential makes WK a name worth watching — and one we believe could reward investors as the company scales.
