WORKIVA INC
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 31, 2025
WK$72.76-14.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0001445305-25-000091
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001445305-25-000125
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 88 previous paragraphs and 101 current paragraphs.
54 unchanged; 34 reworded; 9 added; 0 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Cost of revenue increased $15.2 million during the six months ended June 30, 2025 compared to the same period a year ago. Subscription and support cost of revenue increased $13.5 million due primarily to $8.0 million in higher cash-based compensation and benefits costs, $1.4 million of additional stock-based compensation, a $1.4 million increase in the cost of licensed platform content, a $1.0 million increase in intangibles amortization related to Sustain.Life, and a $0.4 million increase in software expense. The increase in compensation was primarily driven by a modest increase in employee headcount. The increases in the cost of licensed platform content and software expense resulted primarily from our continued investment in and support of our platform and solutions. Professional services cost of revenue increased $1.7 million due primarily to $0.9 million in higher cash-based compensation and benefits costs and $0.6 million of additional stock-based compensation, driven by standard compensation increases for existing headcount.
Current report
Operating Expenses
Current report
Research and development expenses increased $14.7 million during the six months ended June 30, 2025 compared to the same period a year ago due primarily to $10.9 million in higher cash-based compensation and benefits, $2.8 million of additional stock-based compensation, and a $1.3 million increase in professional service fees. The increase in compensation was primarily driven by a modest increase in employee headcount. The increase in professional service fees resulted primarily from our continued investment in and support of our platform and solutions.
Current report
General and administrative expenses increased $5.5 million during the six months ended June 30, 2025 compared to the same period a year ago due primarily to $2.7 million in higher cash-based compensation and benefits, $0.2 million of additional stock-based compensation, and a $2.6 million increase in internal event costs. The increase in compensation for the three and six month periods was primarily due to a modest increase in employee headcount. The increase in internal event costs for the three and six month periods was due to a new internal event held in the second quarter.
Current report
Cash provided by operating activities of $50.3 million for the three months ended June 30, 2025 consisted of a net loss of $19.4 million adjusted for non-cash charges of $30.3 million and net cash inflows of $39.4 million from changes in operating assets and liabilities. The change in operating assets and liabilities was driven by an increase in accrued expenses and other liabilities which was due in part to timing of accruals and payments. The increase in deferred revenue was driven by an increase in amounts invoiced during the period. The decreases in accounts payable, other assets, and prepaid expenses as well as the increase in accounts receivable were attributable primarily to the timing of cash payments and collections.
Current report
Cash used in operating activities was flat for the three months ended June 30, 2024 and consisted of a net loss of $17.5 million adjusted for non-cash charges of $25.4 million and net cash outflows of $7.9 million from changes in operating assets and liabilities. Net cash used in operating activities was primarily due to an increase in accounts receivable driven by an increase in large contracts that were signed toward the end of the period and timing of collections from customers. The increase in large contracts also drove an increase in deferred costs, partially offset by the related increase in deferred revenue. The decreases in accounts payable, prepaid expenses, and other receivables as well as the increases in accrued expenses and other liabilities were attributable primarily to the timing of cash payments and collections.
Current report
Cash used in investing activities of $26.3 million for the three months ended June 30, 2024 consisted of $98.3 million for the acquisition of Sustain.Life and $35.0 million in purchases of marketable securities partially offset by $107.1 million from the maturities of marketable securities.
Current report
Cash used in financing activities of $8.9 million for the three months ended June 30, 2025 consisted of $10.0 million in repurchases of our Class A common stock under the 2024 Repurchase Plan and $0.6 million in taxes paid related to net share settlements of stock-based compensation awards partially offset by $1.8 million in proceeds from option exercises.
Current report
Cash used in financing activities of $1.5 million for the three months ended June 30, 2024 consisted of $1.6 million in taxes paid related to net share settlements of stock-based compensation awards partially offset by $0.3 million in proceeds from option exercises.
Reworded paragraphs (34)
Previous wording
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 25, 2025. 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, 2024, 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.
Current wording
The following discussion and analysis of our financial condition and results of our operations should be read in conjunction with the 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 25, 2025. 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, 2024, 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.
Previous wording
The Workiva platform is built for transparency, accountability, and trust. We believe that all stakeholders, including consumers, employees, shareholders, and regulators expect more from business – more action, transparency, and disclosure of financial and non-financial information. We build solutions to meet that demand and streamline processes, connect data and teams, and ensure consistency – all within the Workiva platform. Our leading unified software-as-a-service (“SaaS”) platform brings customers’ financial reporting, sustainability management, and Governance, Risk, and Compliance (“GRC”) together in a controlled, secure, audit-ready platform.
Current wording
The Workiva platform ensures transparency, accountability, and trust. Finance, accounting, sustainability, risk, and audit teams from more than 6,400 organizations worldwide, including more than 80% of FORTUNE® 1,000 companies, depend on Workiva for their mission-critical work. We build solutions that streamline processes, connect data and teams, and ensure consistency, all within our leading unified software-as-a-service (“SaaS”) platform. It brings financial reporting, sustainability management, and governance, risk, and compliance (“GRC”) together in a controlled, secure, and audit-ready environment.
Previous wording
Workiva provides more than 6,300 organizations across the globe with SaaS platform solutions to help solve some of the most complex reporting and disclosure challenges. While our customers use our platform for more than 100 different use cases, across dozens of vertical industries, we organize our sales and marketing resources into three purpose-built solution groups (financial reporting, sustainability management, and GRC) focusing primarily on the office of the Chief Financial Officer (“CFO”), Chief Sustainability Officer (“CSO”), and Chief Audit Executive (“CAE”).
Current wording
While our customers use our platform for more than 100 different use cases, across dozens of vertical industries, we organize our sales and marketing resources into three purpose-built solution groups (financial reporting, sustainability management, and GRC) focusing primarily on the office of the Chief Financial Officer (“CFO”), Chief Sustainability Officer (“CSO”), and Chief Audit Executive (“CAE”).
Previous wording
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 2,873 at March 31, 2025 from 2,561 at March 31, 2024, an increase of 12.2%.
Current wording
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 2,896 at June 30, 2025 from 2,680 at June 30, 2024, an increase of 8.1%.
Previous wording
We have achieved significant revenue growth in recent periods. Our revenue grew to $206.3 million during the three months ended March 31, 2025 from $175.7 million during the three months ended March 31, 2024. We incurred net losses of $21.4 million during the three months ended March 31, 2025 compared to $11.7 million during the three months ended March 31, 2024.
Current wording
We have achieved significant revenue growth in recent periods. Our revenue grew to $215.2 million and $421.5 million during the three and six months ended June 30, 2025 from $177.5 million and $353.2 million during the three and six months ended June 30, 2024. We incurred net losses of $19.4 million and $40.8 million during the three and six months ended June 30, 2025 compared to $17.5 million and $29.2 million during the three and six months ended June 30, 2024.
Previous wording
Sales of our sustainability management solutions, including Workiva Carbon, could be materially impacted by domestic and global policy uncertainties. Risks relating to shifts in regulatory priorities and newly emerging trends due to changes in the U.S. presidential administration, and the outcome of other global elections, and risks relating to legal challenges to sustainability-related rules and regulations, may affect our market expansion opportunities in the U.S. and abroad. For example, amendments to the European Union’s Corporate Sustainability Reporting Directive (“CSRD”) standards used to identify and collect the information and data, with different implementation dates depending on the company size and geographic location, are still developing and uncertain. That regulatory uncertainty has limited or delayed compliance obligations or requirements, could slow market adoption and may reduce or delay the growth of our sustainability solutions. The extent of this policy uncertainty, and its potential impact on our growth trajectory, cannot be accurately predicted.
Current wording
Sales of our sustainability management solutions have been, and may continue to be, materially impacted by domestic and global policy uncertainties. Shifts in regulatory priorities, market sentiment and legal challenges to sustainability-related rules and regulations are affecting our market expansion opportunities in the U.S. and abroad. For example, the European Union’s Corporate Sustainability Reporting Directive (“CSRD”) standards used to identify and collect sustainability information and data are still developing and uncertain. In particular, the CSRD's "stop-the-clock" directive delayed reporting requirements for Wave 2 and Wave 3 companies. This has delayed compliance obligations and requirements. The extent of this global policy uncertainty, and its potential impact on our growth trajectory, cannot be accurately predicted.
Previous wording
In the U.S., volatility in the public markets led to a decrease in the number of initial public offerings (“IPOs”) and special-purpose acquisition companies (“SPACs”) since fiscal 2022. New sales of our SEC and capital markets solutions were adversely affected by this decline in the IPO and SPAC markets. We expect reduced valuation multiples caused by higher interest rates, inflation, global trade conflicts, and geopolitical instability to create an uncertain impact on the number of IPOs in fiscal year 2025. Whether and to what extent the IPO and SPAC markets will moderate cannot be accurately predicted.
Current wording
In the U.S., volatility in the public markets has led to a decrease in the number of initial public offerings (“IPOs”) and special-purpose acquisition companies (“SPACs”) since fiscal 2022. New sales of our SEC and capital markets solutions were adversely affected by this decline in the IPO and SPAC markets. We expect reduced valuation multiples caused by higher interest rates, inflation, global trade conflicts, and geopolitical instability to continue to create uncertain impacts on the number of IPOs in fiscal year 2025. Whether and to what extent the IPO and SPAC markets will moderate cannot be accurately predicted.
Previous wording
Pursue New Customers. We sell to organizations that manage large, complex processes with distributed teams of contributors and disparate sets of business data. We market our platform to professionals and executives in the areas of financial and non-financial reporting, including regulatory, multi-entity and performance reporting. In addition, we market to teams responsible for sustainability management and GRC programs. We intend to continue to build our sales and marketing organization and leverage our brand equity to attract new customers.
Current wording
Pursue New Customers. We sell to organizations that manage large, complex processes with distributed teams of contributors and disparate sets of business data. We market our platform to professionals and executives in the areas of financial and non-financial reporting, including regulatory, multi-entity and management reporting. In addition, we market to teams responsible for sustainability management and GRC programs. We intend to continue to build our sales and marketing organization and leverage our brand equity to attract new customers.
Previous wording
Offer More Solutions. We intend to introduce new solutions to continue to meet growing demand for our 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.
Current wording
Offer More Solutions. We intend to introduce new solutions to continue to meet growing demand for our 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, together with a strong value proposition and 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.
Previous wording
Expand Across Enterprises. Our success in delivering multiple solutions has created demand from customers for a broader-based, enterprise-wide Workiva 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.
Current wording
Expand Across Enterprises. Our success in delivering multiple solutions has created demand from customers for a broader-based, enterprise-wide Workiva 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 new users, increase 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.
Previous wording
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 expenses have historically 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.
Current wording
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 expenses have historically been higher in the third quarter due to our annual user conference typically held 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.
Previous wording
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. As customers acquired through our Sustain.Life acquisition in 2024 renew their contracts with Workiva, they are added to our customer count above.
Current wording
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. We define a customer as a separate and distinct buying entity, such as a company, a government institution, or a distinct business unit of a large company that has an active contract with us or one of our partners to access our platforms. Companies with publicly-listed securities account for a majority of our customers. As customers acquired through our Sustain.Life acquisition in 2024 renew their contracts with Workiva, they are added to our customer count above.
Previous wording
Our gross retention rate was 97.3% as of March 31, 2025, down slightly from 97.8% as of March 31, 2024. 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. Customers whose securities were deregistered due to merger or acquisition or financial distress accounted for over half of our revenue attrition in the latest quarter.
Current wording
Our gross retention rate was 97.5% as of June 30, 2025, down marginally from 97.6% as of June 30, 2024. 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. Customers whose securities were deregistered due to merger or acquisition or financial distress accounted for over half of our revenue attrition in the latest quarter.
Previous wording
Our net retention rate including add-ons was 110.1% as of the quarter ended March 31, 2025, down slightly from 110.6% as of March 31, 2024.
Current wording
Our net retention rate including add-ons was 113.7% as of the quarter ended June 30, 2025, up from 109.2% as of June 30, 2024.
Previous wording
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 three months ended March 31, 2025 and 2024, no single customer represented more than 1% of our revenue, and our largest 10 customers accounted for less than 10% of our revenue in the aggregate.
Current wording
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 six months ended June 30, 2025 and 2024, no single customer represented more than 1% of our revenue, and our largest 10 customers accounted for less than 10% of our revenue in the aggregate.
Previous wording
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 to help our customers with business processes and best practices for using our platform. Our professional services are not required for customers to utilize our solution. We recognize revenue for document set up 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.
Current wording
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 to help our customers with business processes and best practices for using our platform. Our professional services are not required for customers to utilize our solution. We recognize revenue for document set up when the service is complete and control has transferred to the customer. Revenue from XBRL tagging and consulting services are recognized as the services are performed.
Previous wording
Comparison of Three Months Ended March 31, 2025 and 2024
Current wording
Comparison of Three and Six Months Ended June 30, 2025 and 2024
Previous wording
Total revenue increased $30.6 million for the three months ended March 31, 2025 compared tothe same quarter a year ago due primarily to a $30.5 million increase in subscription and support revenue. Growth in subscription and support revenue in the first quarter was attributable mainly to strong demand and continued solution expansion across our customer base. Revenue from professional services was relatively flat for the three months ended March 31, 2025 compared to the same quarter a year ago. We continue to transition consulting and other services to our partners and expect the revenue growth rate from subscription and support to continue to outpace revenue growth from professional services on an annual basis.
Current wording
Total revenue increased $68.3 million for the six months ended June 30, 2025 compared to the same period a year ago due primarily to a $68.0 million increase in subscription and support revenue. Growth in subscription and support revenue was attributable mainly to strong demand and continued solution expansion across our customer base. Revenue from professional services increased $0.3 million for the six months ended June 30, 2025 compared to the same period a year ago. We continue to transition consulting and other services to our partners and expect the revenue growth rate from subscription and support to continue to outpace revenue growth from professional services on an annual basis.
Previous wording
Cost of revenue increased $6.8 million during the three months ended March 31, 2025 compared to the same quarter a year ago. Subscription and support cost of revenue increased $6.1 million due primarily to $4.1 million in higher cash-based compensation and benefits costs, $0.8 million of additional stock-based compensation, and a $0.5 million increase in the cost of licensed platform content. The increase in compensation was primarily driven by an increase in employee headcount. The cost of licensed platform content increased primarily from our continued investment in and support of our platform and solutions. Amortization of acquired intangible assets for Sustain.Life was $0.5 million. Professional services cost of revenue increased $0.7 million due primarily to a $0.5 million increase in cash-based compensation and benefits costs driven by a slight increase in headcount.
Current wording
Cost of revenue increased $8.4 million during the three months ended June 30, 2025 compared to the same quarter a year ago. Subscription and support cost of revenue increased $7.3 million due primarily to $3.9 million in higher cash-based compensation and benefits costs, $0.6 million of additional stock-based compensation, a $0.9 million increase in the cost of licensed platform content, a $0.5 million increase in intangibles amortization related to Sustain.Life., a $0.4 million increase in travel expense, and a $0.3 million increase in software expense. The increase in compensation and travel was primarily driven by an increase in employee headcount. The increases in the cost of licensed platform content and software expense resulted primarily from our continued investment in and support of our platform and solutions. Professional services cost of revenue increased $1.0 million due primarily to $0.4 million in higher cash-based compensation and benefits costs and $0.3 million of additional stock-based compensation, driven by standard compensation increases for existing headcount.
Previous wording
Research and development expenses increased $8.3 million during the three months ended March 31, 2025 compared to the same quarter a year ago due primarily to $5.4 million in higher cash-based compensation and benefits, $1.4 million of additional stock-based compensation, a $0.7 million increase in professional service fees, and a $0.6 million increase in internal event costs. The increase in compensation was primarily driven by an increase in employee headcount. The increase in professional service fees resulted primarily from our continued investment in and support of our platform and solutions. The increase in internal event costs relate to our annual research and development event which spanned the first quarter and second quarter of 2025 but was held in the second quarter of 2024.
Current wording
Research and development expenses increased $6.4 million during the three months ended June 30, 2025 compared to the same quarter a year ago due primarily to $5.5 million in higher cash-based compensation and benefits, $1.4 million of additional stock-based compensation, and a $0.6 million increase in professional service fees partially offset by a $0.4 million decrease in internal event costs. The increase in compensation was primarily driven by an increase in employee headcount. The increase in professional service fees resulted primarily from our continued investment in and support of our platform and solutions. The decrease in internal event costs relates to our annual research and development event which spanned the first quarter and second quarter of 2025 but was held in the second quarter of 2024.
Previous wording
Sales and marketing expenses increased $19.0 million during the three months ended March 31, 2025 compared to the same quarter a year ago due primarily to $13.2 million in higher cash-based compensation and benefits, $1.7 million of additional stock-based compensation, a $0.8 million increase in travel expense, a $1.2 million increase in internal event costs, a $1.0 million increase in marketing and advertising, and a $0.6 million increase in professional service fees. During the first quarter of 2025 we recognized an additional $0.7 million in cash-based and stock-based compensation pursuant to certain severance obligations. The increases in compensation, travel, internal event costs and marketing and advertising were primarily due to an increase in employee headcount and our continued investment in our go-to-market activities. The increase in professional service fees was the result of our continued investment in and support of our platform and solutions.
Current wording
Sales and marketing expenses increased $38.4 million during the six months ended June 30, 2025 compared to the same period a year ago due primarily to $25.6 million in higher cash-based compensation and benefits, $3.1 million of additional stock-based compensation, a $4.7 million increase in marketing and advertising, a $1.9 million increase in professional service fees, a $1.6 million increase in internal event costs, and a $0.7 million in software expense. The increases in compensation and internal event costs were primarily due to an increase in employee headcount as we continue to invest in our go-to-market activities. The increases in marketing and advertising, professional service fees, and software expense were the result of our continued investment in and support of our platform and solutions.
Previous wording
General and administrative expenses increased $2.9 million during the three months ended March 31, 2025 compared to the same quarter a year ago due primarily to a $1.4 million increase in cash-based compensation and benefits, $0.7 million of additional stock-based compensation, and a $0.3 million increase in professional service fees. The increase in stock-based compensation was primarily due to performance-based restricted stock awards and changes in the assumptions associated with the attainment of company-specific performance targets. The remaining increase in compensation was due to a modest increase in employee headcount.
Current wording
General and administrative expenses increased $2.5 million during the three months ended June 30, 2025 compared to the same quarter a year ago due primarily to a $1.2 million increase in cash-based compensation and benefits and a $2.6 million increase in internal event costs partially offset by a $0.6 million decrease in stock-based compensation and a $0.3 million decrease in professional service fees.
Previous wording
During the three months ended March 31, 2025, interest income decreased $1.7 million compared to the same quarter a year ago due primarily to a decrease in our investment balance, coupled with lower interest rates. Interest expense remained relatively flat compared to the same quarter a year ago. Other expense, net increased $0.3 million compared to the same quarter a year ago due primarily to losses on foreign currency transactions.
Current wording
During the three months ended June 30, 2025, interest income decreased $2.0 million compared to the same quarter a year ago due primarily to a decrease in our investment balance, coupled with lower interest rates. Interest expense remained relatively flat compared to the same quarter a year ago. Other expense, net increased $0.7 million compared to the same quarter a year ago due primarily to losses on foreign currency transactions.
Previous wording
As of March 31, 2025, our principal sources of liquidity were cash, cash equivalents and marketable securities totaling $767.0 million, which were held for working capital purposes. We have financed our operations primarily through cash generated from operations and issuances of convertible debt. We have generated significant operating losses as reflected in our accumulated deficit on our condensed consolidated balance sheets. While we expect to continue to incur operating losses and may incur negative cash flows from operations in the future, we believe that current cash and cash equivalents and cash flows from operating activities will be sufficient to fund our operations for at least the next twelve months.
Current wording
As of June 30, 2025, our principal sources of liquidity were cash, cash equivalents and marketable securities totaling $813.7 million, which were held for working capital purposes. We have financed our operations primarily through cash generated from operations and issuances of convertible debt. We have generated significant operating losses as reflected in our accumulated deficit on our consolidated balance sheets. While we expect to continue to incur operating losses and may incur negative cash flows from operations in the future, we believe that current cash and cash equivalents and cash flows from operating activities will be sufficient to fund our operations for at least the next twelve months.
Previous wording
In August 2023, we issued $702.0 million aggregate principal amount of our 1.250% 2028 Notes. Proceeds from the issuance of the 2028 Notes totaled $691.1 million, net of initial purchaser discounts and issuance costs. We used $396.9 million of the net proceeds from the 2028 Notes offering to repurchase $273.8 million principal amount, together with accrued and unpaid interest thereon, of our 1.125% 2026 Notes in separate and individually negotiated transactions with certain holders. As of March 31, 2025, we had outstanding debt relating to our 2026 Notes and 2028 Notes of $70.9 million and $694.6 million, with corresponding maturity dates of August 15, 2026 and August 15, 2028, respectively.
Current wording
In August 2023, we issued $702.0 million aggregate principal amount of our 1.250% 2028 Notes. Proceeds from the issuance of the 2028 Notes totaled $691.1 million, net of initial purchaser discounts and issuance costs. We used $396.9 million of the net proceeds from the 2028 Notes offering to repurchase $273.8 million principal amount, together with accrued and unpaid interest thereon, of our 1.125% 2026 Notes in separate and individually negotiated transactions with certain holders. As of June 30, 2025, we had outstanding debt relating to our 2026 Notes and 2028 Notes of $70.9 million and $695.2 million, with corresponding maturity dates of August 15, 2026 and August 15, 2028, respectively.
Previous wording
On July 30, 2024, our board of directors authorized a share repurchase plan for up to $100.0 million of our outstanding Class A common stock (the “2024 Repurchase Plan”). The repurchases may be made in the open market or through privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means, each in compliance with Rule 10b-18 under the Exchange Act. The timing, manner, price, and amount of the repurchase will be subject to the discretion of the Company’s management, and it may be suspended or discontinued at any time. As of March 31, 2025, we have repurchased $40.1 million of our Class A common stock under the 2024 Repurchase Plan.
Current wording
On July 30, 2024, our board of directors authorized a share repurchase plan for up to $100.0 million of our outstanding Class A common stock (the “2024 Repurchase Plan”). The repurchases may be made in the open market or through privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means, each in compliance with Rule 10b-18 under the Exchange Act. The timing, manner, price, and amount of the repurchase will be subject to the discretion of the Company’s management, and it may be suspended or discontinued at any time. As of June 30, 2025, we have repurchased $50.1 million of our Class A common stock under the 2024 Repurchase Plan.
Previous wording
Cash used in operating activities of $7.4 million for the three months ended March 31, 2025 consisted of a net loss of $21.4 million adjusted for non-cash charges of $29.6 million and net cash outflows of $15.6 million from changes in operating assets and liabilities. The change in operating assets and liabilities was primarily driven by a decrease in accrued expenses and other liabilities which was due in part to a reduction in accrued commissions as we experience higher bookings at year-end driving a reduction the following quarter. The decrease in deferred revenue was driven by the deduction of bookings and timing of billings in the current period. Deferred costs decreased primarily due to amortization of incremental costs associated with obtaining customer contracts. The decreases in accounts receivable and other receivables as well as the increases in accounts payable and prepaid expenses and other were attributable primarily to the timing of cash payments and collections.
Current wording
Cash provided by operating activities of $43.0 million for the six months ended June 30, 2025 consisted of a net loss of $40.8 million adjusted for non-cash charges of $59.9 million and net cash inflows of $23.8 million from changes in operating assets and liabilities. The change in operating assets and liabilities was primarily driven by a decrease in accounts receivable due to timing of billings and collections. The decrease in accrued expenses and other liabilities was due in part to timing of accruals and payments. Deferred revenue decreased due in part by the timing of bookings and billings in the current period. The decrease in deferred costs was primarily due to amortization of incremental costs associated with obtaining customer contracts. The increases in accounts payable and prepaid expenses as well as the decreases in other receivables and other assets were attributable primarily to the timing of our billings, cash collections, and cash payments.
Previous wording
Cash provided by operating activities of $24.8 million for the three months ended March 31, 2024 consisted of a net loss of $11.7 million adjusted for non-cash charges of $22.0 million and net cash inflows of $14.6 million from changes in operating assets and liabilities. The change in operating assets and liabilities was driven by a decrease in deferred revenue which was due in part to a reduction of multi-year prepaid customer contracts and timing of contract negotiations. The decreases in accounts receivable and accrued expenses and other liabilities as well as the increases in accounts payable and prepaid expenses were attributable primarily to the timing of our billings, cash collections, and cash payments.
Current wording
Cash provided by operating activities of $24.8 million for the six months ended June 30, 2024 consisted of a net loss of $29.2 million adjusted for non-cash charges of $47.4 million and net cash inflows of $6.7 million from changes in operating assets and liabilities. The change in operating assets and liabilities was driven by a decrease in deferred revenue which was due in part to a reduction of multi-year prepaid customer contracts and timing of contract negotiations. The increase in deferred costs was primarily due to growth in subscription bookings. The increases in other assets, accounts payable, and accrued expenses and other liabilities as well as the decreases in accounts receivable, prepaid expenses, and other receivables were attributable primarily to the timing of our billings, cash collections, and cash payments.
Previous wording
Cash used in investing activities of $9.1 million for the three months ended March 31, 2025 consisted of $103.0 million in purchases of marketable securities and $0.8 million in purchases of fixed assets partially offset by $94.6 million from the maturities of marketable securities. Our capital expenditures were associated primarily with computer equipment in support of expanding our infrastructure and work force.
Current wording
Cash used in investing activities of $4.3 million for the three months ended June 30, 2025 consisted of $103.0 million in purchases of marketable securities and $1.0 million in purchases of fixed assets partially offset by $99.7 million from the maturities of marketable securities. Our capital expenditures were associated primarily with computer equipment in support of our work force.
Previous wording
Cash provided by investing activities of $17.4 million for the three months ended March 31, 2024 consisted of $129.6 million from the maturities of marketable securities and $4.6 million from the sale of marketable securities partially offset by $116.6 million in purchases of marketable securities.
Current wording
Cash used in investing activities of $8.9 million for the six months ended June 30, 2024 consisted of $98.3 million for the acquisition of Sustain.Life and $151.6 million in purchases of marketable securities partially offset by $236.7 million from the maturities of marketable securities and $4.6 million from the sale of marketable securities.
Previous wording
Cash used in financing activities of $45.0 million for the three months ended March 31, 2025 consisted of $40.1 million in repurchases of our Class A common stock under the 2024 Repurchase Plan and $12.9 million in taxes paid related to net share settlements of stock-based compensation awards partially offset by $7.5 million in proceeds from shares issued in connection with our Employee Stock Purchase Plan ("ESPP") and $0.6 million in proceeds from option exercises.
Current wording
Cash used in financing activities of $53.9 million for the six months ended June 30, 2025 consisted of $50.1 million in repurchases of our Class A common stock under the 2024 Repurchase Plan and $13.5 million in taxes paid related to net share settlements of stock-based compensation awards partially offset by $7.5 million in proceeds from shares issued in connection with our ESPP and $2.4 million in proceeds from option exercises.
Previous wording
Cash used in financing activities of $1.3 million for the three months ended March 31, 2024 consisted of $8.6 million in taxes paid related to net share settlements of stock-based compensation awards partially offset by $7.1 million in proceeds from shares issued in connection with our ESPP and $0.3 million in proceeds from option exercises.
Current wording
Cash used in financing activities of $2.8 million for the six months ended June 30, 2024 consisted of $10.3 million in taxes paid related to net share settlements of stock-based compensation awards partially offset by $7.1 million in proceeds from shares issued in connection with our ESPP and $0.6 million in proceeds from option exercises.
Previous wording
Our condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. 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.
Current wording
Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of these 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.
Previous wording
During the three months ended March 31, 2025, 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, 2024 filed with the SEC on February 25, 2025.
Current wording
During the six months ended June 30, 2025, 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, 2024 filed with the SEC on February 25, 2025.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Total revenue increased $37.7 million for the three months ended June 30, 2025 compared to the same quarter a year ago due primarily to a $37.5 million increase in subscription and support revenue. Growth in subscription and support revenue in the second quarter was attributable mainly to strong demand and continued solution expansion across our customer base. Revenue from professional services increased $0.2 million for the three months ended June 30, 2025 compared to the same quarter a year ago.
Current report — wording carried from elsewhere
Sales and marketing expenses increased $19.3 million during the three months ended June 30, 2025 compared to the same quarter a year ago due primarily to $12.4 million in higher cash-based compensation and benefits, $1.4 million of additional stock-based compensation, a $3.7 million increase in marketing and advertising, and a $1.5 million increase in professional service fees. The increases in compensation and marketing and advertising were primarily due to an increase in employee headcount and our continued investment in our go-to-market activities. The increase in professional service fees was the result of our continued investment in and support of our platform and solutions.
Current report — wording carried from elsewhere
During the six months ended June 30, 2025, interest income decreased $3.7 million compared to the same period a year ago due primarily to a decrease in our investment balance, coupled with lower interest rates. Interest expense remained relatively flat compared to the same period a year ago. Other expense, net increased $1.0 million compared to the same period a year ago due primarily to losses on foreign currency transactions.
Current report — wording carried from elsewhere
Cash used in investing activities of $13.4 million for the six months ended June 30, 2025 consisted of $206.0 million in purchases of marketable securities and $1.8 million in purchases of fixed assets partially offset by $194.4 million from the maturities of marketable securities. Our capital expenditures were associated primarily with computer equipment in support of our work force.