10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________

FORM 10-Q

___________________________________

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For transition period from               to

Commission File Number 001-36773

___________________________________

WORKIVA INC.

(Exact name of registrant as specified in its charter)

___________________________________

Delaware (State or other jurisdiction of incorporation or organization)	47-2509828 (I.R.S. Employer Identification Number)
2900 University Blvd Ames, IA 50010 (888) 275-3125
(Address of principal executive offices and zip code)
(888) 275-3125
(Registrant's telephone number, including area code)
___________________________________

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer    o	Accelerated filer o
Non-accelerated filer    ý    (Do not check if a smaller reporting company)	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes o No ý

As of May 1, 2015, there were approximately 27,762,714 shares of the registrant's Class A common stock and 12,426,947 shares of the registrant's Class B common stock outstanding.

EXPLANATORY NOTE

On December 10, 2014, Workiva LLC was converted into a Delaware corporation and renamed Workiva Inc. For convenience, except as the context otherwise requires, all information included in this report on Form 10-Q is presented giving effect to the conversion of the company into a corporation.

i

WORKIVA INC.

FORM 10-Q

For the Three Months Ended March 31, 2015

TABLE OF CONTENTS

		Page
	Part I. Financial Information
Item 1.	Unaudited Consolidated Financial Statements:	1
	Condensed Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014	1
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2015 and 2014	2
	Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2015 and 2014	3
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2015 and 2014	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	22
Item 4.	Controls and Procedures	22
	Part II. Other Information
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 6.	Exhibits	25
	Signatures	S-1
	Exhibit Index	E-1

ii

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this Quarterly Report on Form 10-Q are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical facts, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2014, in “Item 1A. Risk Factors” in Part II of this Quarterly Report on Form 10-Q and in any subsequent filing we make with the SEC, as well as in any documents incorporated by reference that describe risks and factors that could cause results to differ materially from those projected in these forward-looking statements.

Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We are under no duty to update any of these forward-looking statements after completion of this Quarterly Report on Form 10-Q to conform these statements to actual results or revised expectations.

iii

Part I. Financial Information

Item 1.     Financial Statements

WORKIVA INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts)
	March 31, 2015			December 31, 2014
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	89,893		$	101,131
Accounts receivable, net of allowance for doubtful accounts of $345 and $274 at March 31, 2015 and December 31, 2014, respectively	11,913			11,120
Deferred commissions	706			852
Other receivables	482			295
Prepaid expenses and other current assets	2,998			3,143
Restricted cash	73			—
Total current assets	106,065			116,541
Restricted cash	—			401
Property and equipment, net	46,838			46,265
Intangible assets, net	625			549
Other assets	736			795
Total assets	$	154,264		$	164,551
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	2,621		$	3,011
Accrued expenses and other current liabilities	12,195			16,765
Deferred revenue	42,976			42,605
Deferred government grant obligation	2,503			2,324
Current portion of capital lease and financing obligations	1,961			1,941
Current portion of long-term debt	59			84
Total current liabilities	62,315			66,730
Deferred revenue	12,539			13,671
Deferred government grant obligation	3,492			3,424
Other long-term liabilities	2,962			2,069
Capital lease and financing obligations	22,233			22,747
Long-term debt	91			91
Total liabilities	103,632			108,732
Commitments and contingencies
Stockholders’ equity
Class A common stock, $0.001 par value per share, 1,000,000,000 shares authorized, 27,758,184 and 27,213,791 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively	28			27
Class B common stock, $0.001 par value per share, 500,000,000 shares authorized, 12,426,947 shares issued and outstanding at both March 31, 2015 and December 31, 2014	12			12
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding	—			—
Additional paid-in-capital	191,358			189,168
Accumulated deficit	(140,982		)	(133,535		)
Accumulated other comprehensive income	216			147
Total stockholders’ equity	50,632			55,819
Total liabilities and stockholders’ equity	$	154,264		$	164,551

See accompanying notes.

1

WORKIVA INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)
	Three months ended March 31,
	2015			2014
Revenue
Subscription and support	$	26,269		$	20,648
Professional services	8,885			7,484
Total revenue	35,154			28,132
Cost of revenue
Subscription and support	5,885			4,669
Professional services	3,777			2,798
Total cost of revenue	9,662			7,467
Gross profit	25,492			20,665
Operating expenses
Research and development	12,008			10,287
Sales and marketing	13,705			10,440
General and administrative	6,734			4,228
Total operating expenses	32,447			24,955
Loss from operations	(6,955		)	(4,290		)
Interest expense	(510		)	(265		)
Other income and (expense), net	(66		)	3
Loss before income tax expense (benefit)	(7,531		)	(4,552		)
Income tax expense (benefit)	(84		)	—
Net loss	$	(7,447	)	$	(4,552	)
Net loss per common share:
Basic and diluted	$	(0.19	)	$	(0.14	)
Weighted average common shares outstanding - basic and diluted	39,593,700			31,767,513

See accompanying notes.

2

WORKIVA INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands) (unaudited)
	Three months ended March 31,
	2015			2014
Net loss	$	(7,447	)	$	(4,552	)
Other comprehensive income, net of tax
Foreign currency translation adjustment, net of taxes of $60 and $0, respectively	69			26
Unrealized gain on available-for-sale securities	—			51
Other comprehensive income, net of tax	69			77
Comprehensive loss	$	(7,378	)	$	(4,475	)

See accompanying notes.

3

WORKIVA INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
	Three months ended March 31,
	2015			2014
Cash flows from operating activities
Net loss	$	(7,447	)	$	(4,552	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization	1,169			768
Stock-based compensation expense	2,174			1,957
Provision for doubtful accounts	74			124
Recognition of deferred government grant obligation	(66		)	—
Changes in assets and liabilities:
Accounts receivable	(911		)	524
Deferred commissions	145			(32		)
Other receivables	(188		)	58
Prepaid expenses and other	144			(826		)
Other assets	56			36
Accounts payable	157			(2,358		)
Deferred revenue	(672		)	7,150
Accrued expenses and other liabilities	(3,892		)	(1,357		)
Change in restricted cash	28			54
Net cash provided by (used in) operating activities	(9,229		)	1,546
Cash flows from investing activities
Purchase of property and equipment	(871		)	(1,750		)
Purchase of intangible assets	(83		)	(18		)
Net cash used in investing activities	(954		)	(1,768		)
Cash flows from financing activities
Payment of equity issuance costs	(1,073		)	—
Proceeds from option exercises	80			18
Changes in restricted cash	300			—
Repayment of other long-term debt	(25		)	(54		)
Principal payments on capital lease and financing obligations	(678		)	(171		)
Proceeds from borrowings on line of credit	—			12
Proceeds from government for training reimbursement	—			134
Government grant awards	313			2,000
Net cash provided by (used in) financing activities	(1,083		)	1,939
Effect of foreign exchange rates on cash	28			25
Net increase (decrease) in cash and cash equivalents	(11,238		)	1,742
Cash and cash equivalents at beginning of period	101,131			15,515
Cash and cash equivalents at end of period	$	89,893		$	17,257
Supplemental cash flow disclosure
Cash paid for interest	$	423		$	253
Supplemental disclosure of noncash investing and financing activities
Fixed assets acquired through financing obligations	$	—		$	3,128
Fixed assets acquired through capital lease arrangements	$	184		$	448
Allowance for tenant improvements	$	698		$	—
Accrued distributions to members	$	60		$	—

See accompanying notes.

4

WORKIVA INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies

Organization

Workiva Inc., a Delaware corporation, and its wholly-owned subsidiaries created Wdesk, a cloud-based platform for enterprises to collect, manage, report and analyze data in real time. Our secure software platform, Wdesk, allows users to integrate and control all of their business data, regardless of format or location, with innovative live-linking technology. We offer our customers solutions for compliance, risk, sustainability, management reporting, data collection, and enterprise risk management that are delivered through our Wdesk platform. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe and Canada.

Basis of Presentation and Principles of Consolidation

The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on March 11, 2015. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three months ended March 31, 2015 are not necessarily indicative of the results expected for the full year ending December 31, 2015.

The unaudited condensed consolidated financial statements include the accounts of Workiva Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the determination of the relative selling prices of our services, self-insurance liability for claims incurred but not yet reported, collectability of accounts receivable, useful lives of intangible assets and property and equipment, income taxes and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates.

Fair Value of Financial Instruments

Our financial assets, which include cash equivalents and marketable securities, are measured and recorded at fair value on a recurring basis. Our other current financial assets and our other current financial liabilities have fair values that approximate their carrying value due to their short-term maturities.

5

New Accounting Pronouncements

In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition - Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition. The effective date of January 1, 2017 is currently under review based on the FASB's recent decision to propose a one-year deferral. We are currently evaluating the impact of the provisions of ASC 606.

In April 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. The amendment is effective for interim and annual periods beginning after December 15, 2015 with early adoption permitted. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The standard will become effective for interim and annual periods beginning after December 15, 2015. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements.

2. Supplemental Consolidated Balance Sheet Information

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities as of March 31, 2015 and December 31, 2014 consisted of (in thousands):

	March 31, 2015		December 31, 2014
Accrued vacation	$	3,274	$	2,949
Accrued commissions	1,566		1,649
Accrued bonuses	2,208		6,336
Self-insurance liability	775		800
Accrued other liabilities	4,372		5,031
	$	12,195	$	16,765

3. Fair Value Measurements

We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:

6

Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.

Level 3 - Inputs are unobservable inputs based on our assumptions.

The fair value of our money market funds reported in cash and cash equivalents at March 31, 2015 and December 31, 2014 was $85.2 million and $97.1 million, respectively. These assets are classified as Level 1 on the fair value hierarchy.

Other Fair Value Measurements

At March 31, 2015, the fair value of our debt obligations approximated the carrying amount of $0.2 million. The estimated fair value was based in part on our consideration of incremental borrowing rates for similar types of borrowing arrangements. We have generally classified the fair value of our debt obligations as Level 3 due to the lack of relevant observable market data over fair value inputs.

4. Commitments and Contingencies

Lease Commitments

There have been no material changes in our future estimated minimum lease payments under non-cancelable operating, capital and financing leases, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014.

Government Grants

In connection with a February 2011 grant agreement with the Iowa Department of Economic Development, we were awarded a grant that provides for reimbursement of costs incurred in connection with the construction of the first phase of the Ames office building. In March 2015, we received proceeds of $313,000 in connection with this grant which is included in “Deferred government grant obligation” on the consolidated balance sheet at March 31, 2015. At March 31, 2015, this amount is presented as a non-current liability as we anticipate offsetting it against the carrying value of our property and equipment once all contingencies are resolved in December 2015 and the grant is determined to be realized.

Litigation

From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of any currently pending legal proceedings to which we are a party will not have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

7

5. Stock-Based Compensation

We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. Prior to our corporate conversion in December 2014, awards were provided under the 2009 Unit Incentive Plan (the “2009 Plan”). We utilized equity-based compensation in the form of restricted participation units, appreciation units and options to purchase common units. We determined these forms of equity-based compensation were substantive classes of equity for accounting purposes. All outstanding options to purchase common units under the 2009 Plan automatically converted into options to purchase shares of Class A common stock following the corporate conversion. No other unvested award types were outstanding at the time of our corporate conversion.

Immediately prior to our initial public offering, the 2009 Plan was amended to provide that no further awards will be issued thereunder, and our board of directors and stockholders adopted and approved our 2014 Equity Incentive Plan (the “2014 Plan” and, together with the 2009 Plan, the “Plans”).

Subsequent to our corporate conversion, we utilize stock-based compensation in the form of restricted stock and options to purchase Class A common stock. Options to purchase Class A common stock generally vest over a four-year period and are generally granted for a term of ten years.

As of March 31, 2015, awards outstanding under the 2009 Plan consisted of stock options, and awards outstanding under the 2014 Plan consisted of stock options and restricted stock awards.

As of March 31, 2015, 3,332,931 shares of Class A common stock were available for grant under the 2014 Plan.

Stock-based compensation expense for the three months ended March 31, 2015 was $1.6 million and $542,000 for options to purchase common stock and restricted stock, respectively. Stock-based compensation expense for the three months ended March 31, 2014 was $32,000 for restricted participation and appreciation units and $1.9 million for options to purchase common units.

Stock-based compensation expense associated with restricted participation and appreciation units, stock options and restricted stock was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):

	Three months ended March 31,
	2015		2014
Cost of revenue
Subscription and support	$	96	$	230
Professional services	72		170
Operating expenses
Research and development	334		765
Sales and marketing	350		350
General and administrative	1,322		441
Total	$	2,174	$	1,956

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on historical volatilities for publicly traded stock options of comparable companies over the estimated expected life of the options. The expected term represents the period of time the options are expected to be outstanding and is based on the “simplified method.” We use the “simplified method” due to the lack of sufficient historical exercise data to provide a reasonable basis

8

upon which to otherwise estimate the expected life of the options. The risk-free interest rate is based on yields on U.S. Treasury STRIPS with a maturity similar to the estimated expected term of the options. The fair value of our participation and appreciation units and options was estimated assuming no expected dividends and the following weighted-average assumptions:

	Three months ended March 31,
	2015	2014
Expected term (in years)	6.1	5.0 - 10.0
Risk-free interest rate	1.35% - 1.74%	1.52% - 2.68%
Expected volatility	42.35% - 44.08%	45.84% - 52.50%
Forfeiture rate	5.12% - 5.21%	0% - 5.94%

Stock Options

The following table summarizes the option activity under the Plans for the three months ended March 31, 2015:

	Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2014	6,089,938	$	9.63	7.80	$	30,066
Granted	42,719	12.90
Forfeited	26,433	12.99
Exercised	14,393	5.48
Outstanding at March 31, 2015	6,091,831	$	9.65	7.65	$	33,124
Exercisable at March 31, 2015	3,248,657	$	5.28	6.48	$	30,350

The total intrinsic value of options exercised during the three months ended March 31, 2015 and 2014 was $114,000 and $30,000, respectively.

The weighted-average grant-date fair value of options granted during the three months ended March 31, 2015 and 2014 was $5.50 and $7.93, respectively. The total fair value of options vested during the three months ended March 31, 2015 and 2014 was approximately $2.2 million and $1.7 million, respectively. Total unrecognized compensation expense of $16.6 million related to options will be recognized over a weighted-average period of 3.02 years. Total compensation expense recognized during the three months ended March 31, 2015 and 2014 for outstanding options granted to service providers was $77,000 and $228,000, respectively, based on the fair value on the vesting date or the fair value on the reporting date if unvested.

Restricted Stock

During the three months ended March 31, 2015, we granted 530,000 shares of restricted stock to our executive officers with vesting in three equal annual installments from the date of grant. The fair value for restricted stock awards is calculated based on the stock price on the date of grant. The weighted-average grant-date fair value of restricted stock granted during the three months ended March 31, 2015 was $13.40.

9

Compensation expense associated with unvested restricted stock is recognized on a straight-line basis over the vesting period. The expense recognized each period is dependent upon our estimate of the number of shares that will ultimately be issued. At March 31, 2015, there was approximately $7.3 million of total unrecognized compensation expense related to restricted stock, which is expected to be recognized over a weighted-average period of 2.69 years.

Restricted participation and appreciation units

The total fair value of participation and appreciation units vested during the three months ended March 31, 2014 was approximately $51,000. At December 10, 2014, all participation and appreciation units converted into Class A common stock as part of the corporate conversion.

10

6. Net Loss Per Share

Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including our outstanding stock options and stock related to unvested restricted stock awards to the extent dilutive. All historical share counts used in the calculation have been adjusted for the corporate conversion.

The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss attributable to common stockholders is allocated on a proportionate basis.

We consider unvested restricted stock awards granted under the 2014 Equity Incentive Plan to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. In future periods to the extent we are profitable, we will subtract earnings allocated to these participating securities from net income to determine net income attributable to common stockholders.

A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data):

	Three months ended
	March 31, 2015						March 31, 2014
	Class A			Class B			Class A			Class B
Numerator
Net loss	$	(5,110	)	$	(2,337	)	$	(2,776	)	$	(1,776	)
Denominator
Weighted-average common shares outstanding - basic and diluted	27,166,753			12,426,947			19,372,730			12,394,783
Basic and diluted net loss per share	$	(0.19	)	$	(0.19	)	$	(0.14	)	$	(0.14	)

The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows:

	Three months ended
	March 31, 2015	March 31, 2014
Shares subject to outstanding common stock options	2,266,783	2,534,438
Shares subject to unvested appreciation units and participation units	—	20,308
Shares subject to unvested restricted stock awards	584,350	—

11

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of our operations should be read in conjunction with the condensed consolidated financial statements and related notes included elsewhere in this report and in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2015. 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, 2014, in “Item 1A. Risk Factors” in Part II of this Quarterly Report on Form 10-Q and in any subsequent filing we make with the SEC.

Overview

Workiva created Wdesk, a cloud-based platform for enterprises to collect, manage, report and analyze business data in real time. Our secure software platform, Wdesk, allows users to integrate and control all of their business data, regardless of format or location, with innovative live-linking technology. Our proprietary word processing, spreadsheet and presentation applications are fully integrated and built upon the Workiva data management engine, allowing thousands of users to collaborate simultaneously on data-linked reports and documents. Wdesk empowers our customers to dynamically define their business processes and optimize workflows so that critical data can be reported and analyzed more efficiently. Our customers can gain insights based on their trusted data, which enables better real-time decision-making. Additionally, our customers deploy our solutions to serve as a single system of record for critical data, to reduce risk and operational costs, and to increase efficiency in business reporting. As of March 31, 2015, we provided our solutions to more than 2,200 enterprise customers, including more than 65% of both the Fortune 500 and Fortune 100.

Our Wdesk product platform allows multiple users to simultaneously create, review and publish data-linked documents and reports with greater control, accuracy and productivity than ever before. We offer our customers solutions for compliance, risk, sustainability and management reporting, and enterprise risk management. Underlying these solutions is our scalable, enterprise-grade data engine that collects, aggregates and manages our customers’ unstructured and structured data.

We operate our business on a software-as-a-service (SaaS) model. Customers enter into quarterly, annual and multi-year subscription contracts to utilize Wdesk. Our subscription fee includes the use of our service and technical support. Our pricing is based primarily on the number of corporate entities, number of users, level of customer support, and length of contract. Our pricing model is scaled to the number of users, so the subscription price per user typically decreases as the number of users increases. We charge customers additional fees primarily for document setup and XBRL tagging services. We generate sales primarily through our direct sales force and, to a lesser extent, customer success and professional services teams.

Our integrated platform, subscription-based model, and exceptional customer support have contributed to a low rate of customer turnover while achieving strong revenue growth. Our subscription and support revenue retention rate was 95.9% for the twelve months ended March 31, 2015.

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 946 at March 31, 2015 from 825 at March 31, 2014, an increase of 14.7%.

We have achieved significant revenue growth in recent periods. Our revenue grew to $35.2 million in the three months ended March 31, 2015 from $28.1 million in the three months ended March 31, 2014, an increase of 25.0%. We incurred net losses of $7.4 million and $4.6 million during the three months ended March 31, 2015 and 2014, respectively.

We are an “emerging growth company,” as defined in the JOBS Act. We will cease to be an “emerging growth company” upon the earliest of (i) December 31, 2019, (ii) the last day of the first fiscal year in which

12

our annual gross revenue are $1 billion or more, (iii) the date on which we have, during the previous rolling three-year period, issued more than $1 billion in nonconvertible debt securities or (iv) the date on which we qualify as a “large accelerated filer” with at least $700 million of equity securities held by non-affiliates.

Key Factors Affecting Our Performance

New customers. We employ a “land-and-expand” sales strategy that focuses on acquiring new customers through our direct sales model and building our relationships with existing customers over time. Acquiring new customers is a key component of our continued success in the marketplace, growth opportunity and future revenue. We have aggressively invested in and intend to continue to invest in our direct sales force.

Further penetration of existing customers. Our account management teams seek to generate additional revenue from our customers by adding seats to existing subscriptions and by signing new subscriptions for additional business solutions on our platform. We believe a significant opportunity exists for us to sell additional subscriptions to current customers as they become more familiar with our platform and adopt our solutions to address additional business use cases.

Investment in growth. We are expanding our operations, increasing our headcount and developing software to both enhance our current offerings and build new features. We expect our total operating expenses to increase, particularly as we continue to expand our sales operations, marketing activities and development staff. We continue to invest in our sales, marketing and customer success organizations to drive additional revenue and support the growth of our customer base. Investments we make in our sales and marketing and research and development organizations will occur in advance of experiencing any benefits from such investments. In the quarter ended March 31, 2015, we hired additional employees in sales and marketing and plan to continue to do so each of the next several quarters.

Key Performance Indicators

	Three months ended March 31,
	2015			2014
	(dollars in thousands)
Financial metrics
Total revenue	$	35,154		$	28,132
Percentage increase in total revenue	25.0		%	32.1		%
Subscription and support revenue	$	26,269		$	20,648
Percentage increase in subscription and support revenue	27.2		%	53.5		%
Subscription and support as a percent of total revenue	74.7		%	73.4		%

	As of March 31,
	2015		2014
Operating metrics
Number of customers	2,290		1,993
Subscription and support revenue retention rate	95.9	%	97.8	%
Subscription and support revenue retention rate including add-ons	105.8	%	111.3	%

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

13

the measurement date. Our customer is typically a parent company or, in a few cases, a significant subsidiary that works with us directly. Companies with publicly listed securities account for a substantial majority of our customers.

Subscription and support revenue retention rate. We calculate our subscription and support revenue retention rate by annualizing the subscription and support revenue recorded in the first month of the measurement period for only those customers in place throughout the entire measurement period, thereby excluding any attrition. We divide the result by the annualized subscription and support revenue in the first month of the measurement period for all customers in place at the beginning of the measurement period. The measurement period is based on the trailing twelve months.

Our subscription and support revenue retention rate was 95.9% at the March 2015 measurement date, down slightly from March 2014. 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 being acquired or ceasing to file SEC reports has been the largest contributing factor to our revenue attrition.

Subscription and support revenue retention rate including add-ons. Add-on revenue includes the change in both seats purchased and seat pricing for existing customers. We calculate our subscription and support revenue retention rate including add-ons by annualizing the subscription and support revenue recorded in the last month of the measurement period for only those customers in place throughout the entire measurement period. We divide the result by the annualized subscription and support revenue in the first month of the measurement period for all customers in place at the beginning of the measurement period. The measurement period is based on the trailing twelve months.

Our subscription and support revenue retention rate including add-ons was 105.8% at the March 2015 measurement date, down from 111.3% as of March 2014. The launch of our Wdesk platform in March 2013 had a positive impact on add-on revenue for several of the quarters that followed. In 2014, we shifted the focus of our existing customer sales team towards new use cases with larger target deal sizes. As we expected, the time devoted to training and the redirection of the team's attention toward new decision-makers at our customers impacted add-on revenue in 2014 and the first quarter of 2015. 

Components of Results of Operations

Revenue

We generate revenue through the sale of subscriptions to our cloud-based software and the delivery of professional services. We serve a wide range of customers in many industries, and our revenue is not concentrated with any single customer or small group of customers. For the three months ended March 31, 2015 and 2014, no single customer represented more than 2% of our revenue, and our largest ten customers accounted for approximately 5% of our revenue in the aggregate.

We generate sales directly through our sales force. We also identify some sales opportunities with existing customers through our customer success and professional services teams.

Our customer contracts typically range in length from three to 36 months. Our arrangements do not contain general rights of return. We typically invoice our customers for subscription fees in advance on a quarterly, annual, two-year or three-year basis, with payment due at the start of the subscription term. Unpaid invoice amounts for services starting in future periods are excluded from accounts receivable and deferred revenue. Invoiced amounts are reflected as accounts receivable once we have initiated services with an offset to deferred revenue or revenue depending on whether the revenue recognition criteria have been met.

Subscription and Support Revenue. We recognize the aggregate minimum subscription and support fees ratably on a straight-line basis over the subscription term, provided that an enforceable contract has

14

been signed by both parties, access to our SaaS solutions has been granted to the customer, the fee for the subscription and support is fixed or determinable, and collection is reasonably assured.

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 relate to document set up and XBRL tagging, which are activities that we have undertaken hundreds of times. When requested by our new or existing customers, we typically set up their documents by importing a prior version and formatting the document using best practice methods in our solution. Our XBRL tagging services include applying XBRL tagging to a customer filing document using Wdesk XBRL tools, reviewing existing tags for correctness, identifying any necessary revisions to be consistent with newly provided requirements or guidance from the SEC or FASB, as well as rolling forward XBRL tags from a prior filing to a current filing document.

Our professional services are not required for customers to utilize our solution. Our pricing for professional services has been predominantly on a fixed-fee basis, and we recognize revenue after the services have been performed. Document set up services are typically completed in less than two weeks. XBRL tagging services are offered for each filing document, and revenue is recognized upon a successful submission to the SEC.

We are beginning to provide professional services on new solutions, including our risk reporting, data collection and Sarbanes-Oxley compliance solutions, which may involve a different mix of subscription, support and services than we have experienced to date. The contribution of this new revenue mix may impact our gross margins in ways that we cannot predict.

Cost of Revenue

Cost of revenue consists primarily of personnel and related costs directly associated with our professional services, customer success teams and training personnel, including salaries, benefits, bonuses and stock-based compensation; the costs of contracted third-party vendors; the costs of server usage by our customers; information technology costs and facility costs. Costs of server usage are comprised primarily of fees paid to Google Cloud Platform and Amazon Web Services.

Sales and Marketing Expenses

Sales and marketing expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, commissions, travel, and stock-based compensation. Other costs included in this expense are marketing and promotional events, our annual user conference, online marketing, product marketing, information technology costs, and facility costs. We capitalize and amortize sales commissions that are directly attributable to a contract over the lesser of twelve months or the non-cancelable term of the customer contract based on the terms of our commission arrangements.

Research and Development Expenses

Research and development expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, and stock-based compensation; costs of server usage by our developers; information technology costs; and facility costs.

15

General and Administrative Expenses

General and administrative expenses consist primarily of personnel and related costs for our executive, finance, legal, human resources, and administrative personnel, including salaries, benefits, bonuses, and stock-based compensation; legal, accounting, and other professional service fees; other corporate expenses; information technology costs; and facility costs.

Income Taxes

Prior to our conversion to a corporation on December 10, 2014, we were organized as a limited liability company, and therefore, as a pass-through entity for income tax purposes. Effective upon the corporate conversion, we became a corporation subject to federal, state and foreign income taxes.

Results of Operations

The following table sets forth selected consolidated statement of operations data for each of the periods indicated:

	Three months ended March 31,
	2015			2014
	(in thousands)
Revenue
Subscription and support	$	26,269		$	20,648
Professional services	8,885			7,484
Total revenue	35,154			28,132
Cost of revenue
Subscription and support(1)	5,885			4,669
Professional services(1)	3,777			2,798
Total cost of revenue	9,662			7,467
Gross profit	25,492			20,665
Operating expenses
Research and development(1)	12,008			10,287
Sales and marketing(1)	13,705			10,440
General and administrative(1)	6,734			4,228
Total operating expenses	32,447			24,955
Loss from operations	(6,955		)	(4,290		)
Interest expense	(510		)	(265		)
Other income and (expense), net	(66		)	3
Loss before income tax expense (benefit)	(7,531		)	(4,552		)
Income tax expense (benefit)	(84		)	—
Net loss	$	(7,447	)	$	(4,552	)

16

(1)     Stock-based compensation expense included in these line items was as follows:

	Three months ended March 31,
	2015		2014
	(in thousands)
Cost of revenue
Subscription and support	$	96	$	230
Professional services	72		170
Operating expenses
Research and development	334		765
Sales and marketing	350		350
General and administrative	1,322		441
Total stock-based compensation expense	$	2,174	$	1,956

The following table sets forth our consolidated statement of operations data as a percentage of revenue for each of the periods indicated:

	Three months ended March 31,
	2015		2014
Revenue
Subscription and support	74.7	%	73.4	%
Professional services	25.3		26.6
Total revenue	100.0		100.0
Cost of revenue
Subscription and support	16.7		16.6
Professional services	10.7		9.9
Total cost of revenue	27.4		26.5
Gross profit	72.6		73.5
Operating expenses
Research and development	34.2		36.6
Sales and marketing	39.0		37.1
General and administrative	19.2		15.0
Total operating expenses	92.4		88.7
Loss from operations	(19.8	)	(15.2	)
Interest expense	(1.5	)	(0.9	)
Other income and (expense), net	(0.2	)	—
Loss before income tax expense (benefit)	(21.5	)	(16.1	)
Income tax expense (benefit)	(0.2	)	—
Net loss	(21.3	)%	(16.1	)%

17

Comparison of Three Months Ended March 31, 2015 and 2014

Revenue

	Three months ended March 31,				Period-to-period change
	2015		2014		Amount		% Change
	(dollars in thousands)
Revenue
Subscription and support	$	26,269	$	20,648	$	5,621	27.2%
Professional services	8,885		7,484		1,401		18.7%
Total revenue	$	35,154	$	28,132	$	7,022	25.0%

Total revenue increased $7.0 million for the three months ended March 31, 2015 compared to the three months ended March 31, 2014 due primarily to a $5.6 million increase in subscription and support revenue. Of the total increase in subscription and support revenue, 65.4% represented revenue from new customers acquired after March 31, 2014 and 34.6% represented revenue from existing customers at or prior to March 31, 2014. The total number of our customers increased 14.9% from March 31, 2014 to March 31, 2015.

Cost of Revenue

	Three months ended March 31,				Period-to-period change
	2015		2014		Amount		% Change
	(dollars in thousands)
Cost of revenue
Subscription and support	$	5,885	$	4,669	$	1,216	26.0%
Professional services	3,777		2,798		979		35.0%
Total cost of revenue	$	9,662	$	7,467	$	2,195	29.4%

Cost of revenue increased $2.2 million during the three months ended March 31, 2015 compared to the three months ended March 31, 2014, attributable primarily to increased employee compensation, benefits and travel costs of $2.4 million, offset partially by a decrease of stock-based compensation of $0.2 million. Headcount growth in the customer success and professional services teams was the primary driver of these personnel-related costs. In anticipation of seasonal demand for professional services in the first quarter of 2015, we increased hiring and training in the second half of 2014 with the goal of maintaining a more sustainable utilization rate. The decrease in stock-based compensation was attributable primarily to a one-time grant of stock options with immediate vesting in January 2014.

18

Operating Expenses

	Three months ended March 31,				Period-to-period change
	2015		2014		Amount		% Change
	(dollars in thousands)
Operating expenses
Research and development	$	12,008	$	10,287	$	1,721	16.7%
Sales and marketing	13,705		10,440		3,265		31.3%
General and administrative	6,734		4,228		2,506		59.3%
Total operating expenses	$	32,447	$	24,955	$	7,492	30.0%

Research and Development

Research and development expenses increased $1.7 million during the three months ended March 31, 2015 compared to the three months ended March 31, 2014, due primarily to increased employee compensation, benefits, and travel costs of $2.2 million offset by a decrease in stock-based compensation of $0.4 million. The increase in personnel-related costs was driven primarily by an increase in headcount in research and development, while the decrease in stock-based compensation was attributable primarily to a one-time grant of stock options with immediate vesting in January 2014.

Sales and Marketing

Sales and marketing expenses increased $3.3 million during the three months ended March 31, 2015 compared to the three months ended March 31, 2014, due primarily to the expansion of our sales and marketing team and increases in marketing programs. Employee compensation, benefits, and travel costs rose $2.5 million due primarily to higher headcount in sales and marketing. In addition, other costs to support our salesforce accounted for $0.5 million of the increase.

General and Administrative

General and administrative expenses increased $2.5 million during the three months ended March 31, 2015 compared to the three months ended March 31, 2014, due primarily to an increase in employee compensation, benefits, and travel costs of $0.7 million and additional stock-based compensation of $0.8 million. The increase in personnel-related costs was driven primarily by a rise in total headcount in general and administrative to support the growth of our business. In addition, outside service fees increased $0.8 million due primarily to increased accounting fees and insurance coverage requirements due to operating as a public company.

19

Liquidity and Capital Resources

	Three months ended March 31,
	2015			2014
	(in thousands)
Cash flow provided by (used in) operating activities	$	(9,229	)	$	1,546
Cash flow used in investing activities	(954		)	(1,768		)
Cash flow provided by (used in) financing activities	(1,083		)	1,939
Net increase (decrease) in cash and equivalents, net of impact on exchange rates	$	(11,238	)	$	1,742

As of March 31, 2015, our cash and cash equivalents totaled $89.9 million. To date, we have financed our operations primarily through the proceeds of our initial public offering, private placements of preferred units, debt that was settled in preferred units and cash from operating activities. We have generated significant operating losses and negative cash flows from operating activities as reflected in our accumulated deficit and consolidated statements of cash flows. We expect to continue to incur operating losses and have negative cash flows from operations in the future and may require additional capital resources to continue to grow our business. We believe that current cash and cash equivalents, cash to be received from existing and new customers, and availability under our credit facility will be sufficient to fund our operations for at least the next twelve months.

In August 2014, we entered into a $15.0 million credit facility with Silicon Valley Bank. Borrowing capacity is equal to the most recent month’s subscription and support revenue multiplied by a percentage that adjusts based on the prior quarter’s customer retention rate. The credit facility can be used to fund working capital and general business requirements and matures in August 2016. The credit facility is secured by all of our assets, has first priority over our other debt obligations, and requires us to maintain certain financial covenants, including the maintenance of at least $5.0 million of cash on hand or unused borrowing capacity. The credit facility contains certain restrictive covenants that limit our ability to transfer or dispose of assets, merge with other companies or consummate certain changes of control, acquire other companies, pay dividends, incur additional indebtedness and liens, experience changes in management and enter into new businesses. We amended the credit facility in February 2015 to reduce the borrowing rate to prime. No amount was outstanding under the credit facility as of March 31, 2015.

Pursuant to the credit facility, letters of credit totaling $2.3 million and $4.3 million were outstanding at March 31, 2015 and December 31, 2014, respectively. These letters of credit, which do not reduce availability under the credit facility, were issued as security for a forgivable loan. A $2.0 million letter of credit was canceled in the first quarter of 2015, as one of the forgivable loans was repaid in December 2014 with the proceeds of our initial public offering.

Operating Activities

For the three months ended March 31, 2015, cash used in operating activities was $9.2 million. The primary factors affecting our operating cash flows during the period were our net loss of $7.4 million, adjusted for non-cash charges of $1.2 million for depreciation and amortization of our property and equipment and intangible assets and $2.2 million of stock-based compensation. The primary drivers of the changes in operating assets and liabilities were a $0.7 million decrease in deferred revenue, a $3.9 million decrease in accrued expenses and other liabilities and a $0.9 million increase in accounts receivable. The decrease in deferred revenue was attributable in part to recognition of professional services upon completion during the three months ended March 31, 2015 that were previously deferred at December 31, 2014. In addition, reduced incentives for customers to sign multi-year prepayment agreements resulted in an expected decline in cash

20

generated from long term prepayments, a trend that we expect to continue. The increase in accounts receivable was primarily attributable to the timing of our billings and cash collections, while the decrease in accrued expenses and other was attributable primarily to the timing of our cash payments including payment of annual bonuses and remaining fees related to our initial public offering.

For the three months ended March 31, 2014, cash provided by operating activities was $1.5 million. The primary factors affecting our operating cash flows during this period were our net loss of $4.6 million, adjusted for non-cash charges of $0.8 million for depreciation and amortization of our property and equipment and intangible assets and $2.0 million of stock-based compensation. The primary drivers of the changes in operating assets and liabilities were a $1.4 million decrease in accrued expenses and other liabilities, a $0.8 million increase in prepaid expenses and other assets and a $2.4 million decrease in accounts payable, offset by a $7.2 million increase in deferred revenue. The increase in deferred revenue was attributable primarily to overall increases in the average length of our customer contracts. The decrease in accounts payable and accrued expenses and other liabilities were attributable primarily to the timing of our cash payments including payment of annual bonuses. The increase in prepaid expenses and other assets was attributable primarily to purchasing additional subscriptions to cloud-based software to support business growth.

Investing Activities

Cash used in investing activities of $1.0 million for the three months ended March 31, 2015 was due primarily to $0.9 million of capital expenditures. Our capital expenditures were associated primarily with leasehold improvements and furniture and fixtures in support of expanding our infrastructure and work force.

Cash used in investing activities of $1.8 million for the three months ended March 31, 2014 was due primarily to $1.8 million of capital expenditures. Our capital expenditures were associated primarily with leasehold improvements, building costs under our build-to-suit lease arrangement, computer equipment, and furniture and fixtures in support of expanding our infrastructure and work force.

Financing Activities

Cash used in financing activities of $1.1 million for the three months ended March 31, 2015 was due primarily to $1.1 million in payments of issuance costs related to our initial public offering and $0.7 million in repayments on long-term debt and payments on capital lease and financing obligations.

Cash provided by financing activities of $1.9 million for the three months ended March 31, 2014 was due primarily to $2.0 million in proceeds from a government grant awarded in December 2013.

21

Contractual Obligations and Commitments

There were no material changes in our contractual obligations and commitments from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 11, 2015.

Off-Balance Sheet Arrangements

During the three months ended March 31, 2015 we did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As a result, we are not exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in those types of relationships.

Critical Accounting Policies and Estimates

Our condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, income taxes and related disclosures. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions.

During the three months ended March 31, 2015, there were no significant changes to our critical accounting policies and estimates as described in financial statements contained in the Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 11, 2015.

Item 3.    Quantitative and Qualitative Disclosures about Market Risk    

For quantitative and qualitative disclosures about market risk, see Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of our Annual Report on Form 10-K for the year ended December 31, 2014. Our exposures to market risk have not changed materially since December 31, 2014.

Item 4.    Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our principal executive officer and principal financial officer, our management conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report. Our disclosure controls and procedures are intended to provide assurance at a reasonable level that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

In designing and evaluating our disclosure controls and procedures, management recognizes that any disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

22

Based on management’s evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures are designed to, and are effective to, provide assurance at a reasonable level that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014, our management evaluated and concluded that our disclosure controls and procedures were ineffective as of December 31, 2014 due to the identification of a material weakness in our internal controls over financial reporting related to our accounting for government grants.

Since December 31, 2014, with the oversight of senior management and our audit committee, we have taken steps to remediate the underlying causes of the identified material weakness, primarily through the performance of a risk assessment process; the development and implementation of formally documented policies and procedures; improved processes and control activities; and the hiring of additional finance personnel.

We believe that our remediation measures and our continuing plan have remediated the material weakness and management concluded that our disclosure controls and procedures are effective as of March 31, 2015.

23

Part II. Other Information

Item 1.    Legal Proceedings

From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently a party to any legal proceedings that in the opinion of our management, if determined adversely to us, would have a material adverse effect on our business, financial condition, operating results or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 2014 Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. Other than the item noted below, there have been no material changes during fiscal 2015 to the risk factors that were included in the Form 10-K.

Risks Related to Ownership of Our Class A Common Stock

We have previously identified material weaknesses in our internal control over financial reporting, and any inability to maintain effective internal control over financial reporting could have a material adverse effect on our business.

During the course of preparing for our initial public offering, we determined that it was appropriate to restate our audited consolidated financial statements for the year ended December 31, 2013 to revise our method of accounting for a forgivable loan arrangement. In connection with this restatement, we, in conjunction with our independent registered public accounting firm, concluded that a lack of adequate controls surrounding the review and recognition of forgivable loan arrangements constituted a material weakness in our internal control over financial reporting. Subsequently, during the course of preparing our audited consolidated financial statements for the year ended December 31, 2014, we identified and corrected an immaterial error in our prior period accounting for reimbursements received pursuant to a government jobs training program. In connection with the correction of this immaterial error, we, in conjunction with our independent registered public accounting firm, concluded that a lack of adequate controls surrounding the review and evaluation of accounting for government grant arrangements constituted a material weakness in our internal control over financial reporting. As a result of the identification of these material weaknesses, we have implemented measures designed to improve our internal control over financial reporting. While we believe that these measures have remediated the previously identified material weaknesses and our management has concluded that our disclosure controls and procedures are effective as of March 31, 2015, we cannot be certain that these efforts will be sufficient to prevent future material weaknesses or significant deficiencies from occurring.

24

Item 2.    Unregistered Sales of Securities and Use of Proceeds

Sales of Unregistered Securities

Not applicable.

Use of Proceeds from Public Offerings of Common Stock

On December 17, 2014, we closed our initial public offering of 7,200,000 shares of Class A common stock at a price to the public of $14.00 per share. The offer and sale of all of the shares in the initial public offering were registered under the Securities Act pursuant to a registration statement on Form S-1 (File No. 333-199459), which was declared effective by the SEC on December 11, 2014. The offering commenced on December 12, 2014 and closed on December 17, 2014. Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Robert W. Baird & Co. Incorporated, Raymond James & Associates, Inc., and Stifel, Nicolaus & Company, Incorporated acted as the underwriters. The aggregate offering price for shares sold in the offering was approximately $100.8 million. We raised approximately $90.4 million in net proceeds from the offering, after deducting underwriter discounts and commissions of approximately $7.1 million and other offering expenses of approximately $3.3 million.

There has been no material change in the planned use of proceeds from our initial public offering as described in our final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act on December 12, 2014. Pending the uses described in our prospectus, we have invested the net proceeds in money market funds. We have also repaid a $2.0 million forgivable loan with proceeds from our initial public offering, allowing us to cancel letters of credit totaling that served as security for the forgivable loan.

Item 6.    Exhibits

See the Exhibit Index immediately following the signature page of this Quarterly Report on Form 10-Q.

25

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 5th day of May, 2015.

WORKIVA INC.
By:	/s/ Matthew M. Rizai, Ph.D.
Name:	Matthew M. Rizai, Ph.D.
Title:	Chairman and Chief Executive Officer
By:	/s/ J. Stuart Miller
Name:	J. Stuart Miller
Title:	Executive Vice President, Treasurer and Chief Financial Officer
By:	/s/ Jill Klindt
Name:	Jill Klindt
Title:	Vice President and Chief Accounting Officer

S-1

EXHIBIT INDEX

Exhibit Number	Description
10.1	Third Amendment to Loan and Security Agreement dated February 26, 2015 by and among Workiva Inc., Workiva International LLC and Silicon Valley Bank.
31.1	Certification of the Chief Executive Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Chief Financial Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of the Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of the Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

E-1

EX-10.1

THIRD AMENDMENT

TO

LOAN AND SECURITY AGREEMENT

This ThirdAmendment to Loan and Security Agreement (this“Amendment”) is entered into this 26th day of February, 2015, by and between (i) SILICON VALLEY BANK (“Bank”) and (ii) WORKIVA INC., a Delaware corporation (f/k/a Workiva LLC, “Workiva”) and WORKIVA INTERNATIONAL LLC, a Delaware limited liability company (“International”, and together with Workiva, each and together, jointly and severally, “Borrower”) whose address is 55 West Monroe Street, Suite 3490, Chicago, Illinois 60603.

RECITALS

A.    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of August 22, 2014, as affected by a First Amendment to Loan and Security Agreement, dated as of October 16, 2014, as further affected by a Second Amendment to Loan and Security Agreement dated as of November 25, 2014 (as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”).

B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

C.    Borrower has requested that Bank amend the Loan Agreement to (i) amend the interest rate, and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein.

D.    Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

1.Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

2.Amendments to Loan Agreement.

2.1Section 2.4(a) (Payment of Interest on the Credit Extensions; Advances). Section 2.4(a) is amended in its entirety and replaced with the following:

“(a)    Advances. Subject to Section 2.4(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the Prime Rate, which interest shall be payable monthly in accordance with Section 2.4(d) below.”

2.2Section 6.2 (Financial Statements, Reports, Certificates). Sections 6.2(a), (b), (c) and (d) are amended in their entirety and replaced with the following:

“(a)     a Transaction Report which includes, among other things, Annualized Customer Retention Rate, Borrowing Base, Quarterly Churn and Recurring Revenue (and any schedules related thereto) (i) with each request for an Advance, and (ii) within forty-five (45) days after the end of each fiscal quarter (thirty (30) days after the end of each month when there are Credit Extensions outstanding);

(b)    within forty-five (45) days after the end of each fiscal quarter, (A) quarterly accounts receivable agings, aged by invoice date, (B) quarterly accounts payable agings, aged by invoice date, and outstanding or held check registers, if any, and (C) quarterly reconciliations of accounts receivable agings (aged by invoice date), transaction reports, Deferred Revenue report, and general ledger;

(c)    as soon as available, but no later than forty-five (45) days after the last day of each fiscal quarter, a company prepared consolidated and consolidating balance sheet, cash flow and income statement covering Borrower’s and each of its Subsidiary’s operations for such quarter certified by a Responsible Officer and in a form acceptable to Bank (the “Quarterly Financial Statements”);

(d)    within forty-five (45) days after the last day of each fiscal quarter and together with the Quarterly Financial Statements, a duly completed Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such quarter, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants set forth in this Agreement and such other information as Bank may reasonably request, including, without limitation, a statement that at the end of such quarter there were no held checks;”

2.3Section 13.1 (Definitions). The definition of “Monthly Financial Statements” appearing in Section 13.1 is amended in its entirety and replaced with the following, to be inserted in its applicable alphabetical order:

“Quarterly Financial Statements” is defined in Section 6.2(c).

2.4Section 13.1 (Definitions). The definition of “Permitted Indebtedness” appearing in Section 13.1 is amended by inserting the following clause (j) immediately following clause (i) thereof:

“(j)    Indebtedness of Subsidiaries to the extent permitted pursuant to clause (j) of the definition of “Permitted Investments.”

2.5Section 13.1 (Definitions). The definition of “Permitted Investments” appearing in Section 13.1 is amended by inserting the following clause (j) immediately following clause (i) thereof:

“(j)    Investments in Subsidiaries of Borrower (including, without limitation, Investments consisting of loans to Subsidiaries), in an aggregate amount for all such Investments not to exceed Five Million Dollars ($5,000,000) at any time.”

2.6Compliance Certificate. The Compliance Certificate attached as Exhibit B to the Loan Agreement is amended in its entirety and replaced with Exhibit A attached hereto.

3.Limitation of Amendments.

3.1The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.

3.2This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

4.Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

4.1Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;

4.2Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

4.3Except for the Certificate of Conversion and Certificate of Formation of Workiva filed with the Secretary of State of Delaware on September 17, 2014 and the Certificate of Conversion and Certificate of Incorporation of Workiva filed with the Secretary of State of Delaware on December 10, 2014, the organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

4.4The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized;

4.5The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting

Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

4.6The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on either Borrower, except as already has been obtained or made; and

4.7This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

5.Ratification of Perfection Certificate. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of the Effective Date between Borrower and Bank, and acknowledges, confirms and agrees, except as noted in Section 4.3 above, the disclosures and information above Borrower provided to Bank in said Perfection Certificate have not changed, as of the date hereof.

6.No Defenses of Borrower. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder.

7.Integration. This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

8.Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

9.Effectiveness. This Amendment shall be deemed effective upon the following:

9.1the due execution and delivery to Bank of this Amendment by each party hereto;

9.2Borrower’s payment of Bank’s legal fees and expenses incurred in connection with this Amendment; and

9.3such other documents as Bank may reasonably request.

10.Post-Closing Conditions. Notwithstanding the terms and conditions of the Loan Agreement, on or before May 31, 2015, either (i) the Borrower’s existing account at Morgan Stanley will be closed, with all proceeds thereof transferred to an account of Borrower maintained at Bank; or (ii) Borrower shall deliver to Bank duly executed signature pages to a Control Agreement in favor of Bank, in form and substance acceptable to Bank, from Morgan Stanley. The failure by Borrower to comply with the foregoing requirement shall constitute an immediate Event of Default for which no grace or cure period shall apply.

[Signature page follows.]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

BANK	BORROWER
Silicon Valley Bank By: /s/ Matt Kelty Name: Matt Kelty Title: Vice President	Workiva Inc. By: /s/ Matthew M. Rizai Name: Matthew M. Rizai Title: Chairman & CEO
	Workiva International LLC By: /s/ Matthew M. Rizai Name: Matthew M. Rizai Title: President

[Signature Page to Third Amendment to Loan and Security Agreement]

1

Exhibit A to Third Amendment

EXHIBIT B

COMPLIANCE CERTIFICATE

TO:        SILICON VALLEY BANK                    Date:

FROM:     WORKIVA INC.

WORKIVA INTERNATIONAL LLC

The undersigned authorized officer of Workiva INC. and Workiva International LLC (each and together, jointly and severally, “Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (as amended, the “Agreement”), (1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries, if any, relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

2

Please indicate compliance status by circling Yes/No under “Complies” column.
Reporting Covenant	Required	Complies
Quarterly financial statements with Compliance Certificate	Quarterly within 45 days	Yes No
Annual financial statement (CPA Audited) + CC	FYE within 150 days	Yes No
10‑Q, 10‑K and 8-K	Within 5 days after filing with SEC	Yes No
A/R & A/P Agings & Deferred Revenue	Quarterly within 45 days	Yes No
Transaction Reports	Monthly within 30 days (Quarterly within 45 days if no outstanding Credit Extensions)	Yes No
Projections	FYE within 60 days	Yes No
The following Intellectual Property was registered after the Effective Date (if no registrations, state “None”) ____________________________________________________________________________

Financial Covenant	Required	Actual	Complies
Maintain as indicated:
Minimum Liquidity	$5,000,000	$	Yes No
Minimum Recurring Revenue	See Sec 6.9(b)	$	Yes No

The following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to note.”)

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

WORKIVA INC. WORKIVA INTERNATIONAL LLC By: Name: Title: BANK USE ONLY Received by: _____________________ AUTHORIZED SIGNER Date: _________________________ Verified: ________________________ AUTHORIZED SIGNER Date: _________________________ Compliance Status: Yes No

3

Schedule 1 to Compliance Certificate

Financial Covenants of Borrower

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.

I. Liquidity (Section 6.9(a))

Required:    $5,000,000

A.	Unrestricted cash and Cash Equivalents at Bank or in Deposit Accounts or Securities Accounts subject to a Control Agreement in favor of Bank	$
B.	Availability Amount	$
C.	Liquidity (line A plus line B)	$

Is line C equal to or greater than $5,000,000?

  No, not in compliance                      Yes, in compliance

1

II.    Minimum Recurring Revenue to Plan (Section 6.9 (b))

Required: As of the last day of each quarter on a trailing three (3) month basis, Borrower’s Recurring Revenue for such quarter shall not be less than the greater of (i) eighty percent (80%) of Borrower’s Recurring Revenue for such quarter as outlined in Borrower’s business plan approved by its board of directors or (ii) Borrower’s Recurring Revenue for the prior quarter.

Actual:

A. Recurring Revenue $

Is the value of lines A at least equal to the greater of (i) 80% of the value projected for Recurring Revenue in Borrower’s business plan or (ii) Borrower’s Recurring Revenue for the prior quarter?

  No, not in compliance                      Yes, in compliance

EX-31.1

CERTIFICATION UNDER SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002

I, Matthew M. Rizai, Ph.D., certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of Workiva Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a.     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.     Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

c.     Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.     The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2015 /s/ Matthew M. Rizai, Ph.D. Matthew M. Rizai, Ph.D.
Chairman and Chief Executive Officer (Principal Executive Officer)

EX-31.2

CERTIFICATION UNDER SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002

I, J. Stuart Miller, certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of Workiva Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a.     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.     Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

c.     Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.     The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2015 /s/ J. Stuart Miller J. Stuart Miller Executive Vice President, Treasurer and Chief Financial Officer (Principal Financial Officer)

EX-32.1

CERTIFICATION UNDER SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

I, Matthew M. Rizai, Chairman and Chief Executive Officer of Workiva Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1. the Quarterly Report on Form 10-Q of the Company for the period ending March 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

Date: May 5, 2015 /s/ Matthew M. Rizai, Ph.D. Matthew M. Rizai, Ph.D.
Chairman and Chief Executive Officer (Principal Executive Officer)

EX-32.2

CERTIFICATION UNDER SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

I, J. Stuart Miller, Chief Financial Officer of Workiva Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1. the Quarterly Report on Form 10-Q of the Company for the period ending March 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

Date: May 5, 2015 /s/ J. Stuart Miller J. Stuart Miller
Executive Vice President, Treasurer and Chief Financial Officer (Principal Financial Officer)

XML

Stock-Based Compensation - Restricted Stock (Details) (Restricted Stock, Executive Officer, USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Restricted Stock | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	530,000
Award vesting period	3 years
Grants in period, weighted average grant date fair value (in dollars per share)	$ 13.40
Unrecognized compensation expense	$ 7.3
Unrecognized compensation expense, period for recognition	2 years 8 months 9 days

XML

Supplemental Consolidated Balance Sheet Information

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Consolidated Balance Sheet Information

Supplemental Consolidated Balance Sheet Information

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities as of March 31, 2015 and December 31, 2014 consisted of (in thousands):

	March 31, 2015		December 31, 2014
Accrued vacation	$	3,274	$	2,949
Accrued commissions	1,566		1,649
Accrued bonuses	2,208		6,336
Self-insurance liability	775		800
Accrued other liabilities	4,372		5,031
	$	12,195	$	16,765

XML

Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Shares subject to outstanding common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,266,783	2,534,438
Shares subject to unvested appreciation units and participation units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	20,308
Shares subject to unvested restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	584,350	0

XML

Organization and Significant Accounting Policies

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Significant Accounting Policies

Organization and Significant Accounting Policies

Organization

Workiva Inc., a Delaware corporation, and its wholly-owned subsidiaries created Wdesk, a cloud-based platform for enterprises to collect, manage, report and analyze data in real time. Our secure software platform, Wdesk, allows users to integrate and control all of their business data, regardless of format or location, with innovative live-linking technology. We offer our customers solutions for compliance, risk, sustainability, management reporting, data collection, and enterprise risk management that are delivered through our Wdesk platform. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe and Canada.

Basis of Presentation and Principles of Consolidation

The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on March 11, 2015. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three months ended March 31, 2015 are not necessarily indicative of the results expected for the full year ending December 31, 2015.

The unaudited condensed consolidated financial statements include the accounts of Workiva Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the determination of the relative selling prices of our services, self-insurance liability for claims incurred but not yet reported, collectability of accounts receivable, useful lives of intangible assets and property and equipment, income taxes and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates.

Fair Value of Financial Instruments

Our financial assets, which include cash equivalents and marketable securities, are measured and recorded at fair value on a recurring basis. Our other current financial assets and our other current financial liabilities have fair values that approximate their carrying value due to their short-term maturities.

New Accounting Pronouncements

In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition - Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition. The effective date of January 1, 2017 is currently under review based on the FASB's recent decision to propose a one-year deferral. We are currently evaluating the impact of the provisions of ASC 606.

In April 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. The amendment is effective for interim and annual periods beginning after December 15, 2015 with early adoption permitted. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The standard will become effective for interim and annual periods beginning after December 15, 2015. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements.

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 89,893	$ 101,131
Accounts receivable, net of allowance for doubtful accounts of $345 and $274 at March 31, 2015 and December 31, 2014, respectively	11,913	11,120
Deferred commissions	706	852
Other receivables	482	295
Prepaid expenses and other current assets	2,998	3,143
Restricted cash	73	0
Total current assets	106,065	116,541
Restricted cash	0	401
Property and equipment, net	46,838	46,265
Intangible assets, net	625	549
Other assets	736	795
Total assets	154,264	164,551
Current liabilities
Accounts payable	2,621	3,011
Accrued expenses and other current liabilities	12,195	16,765
Deferred revenue	42,976	42,605
Deferred government grant obligation	2,503	2,324
Current portion of capital lease and financing obligations	1,961	1,941
Current portion of long-term debt	59	84
Total current liabilities	62,315	66,730
Deferred revenue	12,539	13,671
Deferred government grant obligation	3,492	3,424
Other long-term liabilities	2,962	2,069
Capital lease and financing obligations	22,233	22,747
Long-term debt	91	91
Total liabilities	103,632	108,732
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding	0	0
Additional paid-in-capital	191,358	189,168
Accumulated deficit	(140,982)	(133,535)
Accumulated other comprehensive income	216	147
Total stockholders’ equity	50,632	55,819
Total liabilities and stockholders’ equity	154,264	164,551
Class A Common Stock
Stockholders’ equity
Common stock	28	27
Class B Common Stock
Stockholders’ equity
Common stock	$ 12	$ 12

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax	$ 60	$ 0

XML

Stock-Based Compensation - Expense (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 2,174	$ 1,956
Subscription and support
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	96	230
Professional services
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	72	170
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	334	765
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	350	350
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 1,322	$ 441

XML

Stock-Based Compensation - Stock Options (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Options (in shares):
Outstanding beginning of the period	6,089,938
Granted	42,719
Forfeited	26,433
Exercised	14,393
Outstanding end of the period	6,091,831		6,089,938
Exercisable at end of the period	3,248,657
Weighted-Average Exercise Price (in dollars per share):
Outstanding beginning of the period	$ 9.63
Granted	$ 12.90
Forfeited	$ 12.99
Exercised	$ 5.48
Outstanding end of the period	$ 9.65		$ 9.63
Exercisable at the end of the period	$ 5.28
Outstanding, weighted-average remaining contractual term (years)	7 years 7 months 24 days		7 years 9 months 18 days
Exercisable, weighted-average remaining contractual term (years)	6 years 5 months 23 days
Outstanding, aggregate intrinsic value	$ 33,124,000		$ 30,066,000
Exercisable, aggregate intrinsic value	30,350,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options exercised intrinsic value	114,000	30,000
Options grants in period, weighted average grant date fair value (in dollars per share)	$ 5.50	$ 7.93
Options vested in period fair value	2,200,000	1,700,000
Share-based compensation expense	2,174,000	1,956,000
Employee and Nonemployee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options unrecognized compensation expense	16,600,000
Options unrecognized compensation expense, period for recognition	3 years 7 days
Share-based compensation expense	1,600,000	1,900,000
Nonemployee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Share-based compensation expense	$ 77,000	$ 228,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities
Net loss	$ (7,447)	$ (4,552)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization	1,169	768
Stock-based compensation expense	2,174	1,957
Provision for doubtful accounts	74	124
Recognition of deferred government grant obligation	(66)	0
Changes in assets and liabilities:
Accounts receivable	(911)	524
Deferred commissions	145	(32)
Other receivables	(188)	58
Prepaid expenses and other	144	(826)
Other assets	56	36
Accounts payable	157	(2,358)
Deferred revenue	(672)	7,150
Accrued expenses and other liabilities	(3,892)	(1,357)
Change in restricted cash	28	54
Net cash provided by (used in) operating activities	(9,229)	1,546
Cash flows from investing activities
Purchase of property and equipment	(871)	(1,750)
Purchase of intangible assets	(83)	(18)
Net cash used in investing activities	(954)	(1,768)
Cash flows from financing activities
Payment of equity issuance costs	(1,073)	0
Proceeds from option exercises	80	18
Changes in restricted cash	300	0
Repayment of other long-term debt	(25)	(54)
Principal payments on capital lease and financing obligations	(678)	(171)
Proceeds from borrowings on line of credit	0	12
Proceeds from government for training reimbursement	0	134
Government grant awards	313	2,000
Net cash provided by (used in) financing activities	(1,083)	1,939
Effect of foreign exchange rates on cash	28	25
Net increase (decrease) in cash and cash equivalents	(11,238)	1,742
Cash and cash equivalents at beginning of period	101,131	15,515
Cash and cash equivalents at end of period	89,893	17,257
Supplemental cash flow disclosure
Cash paid for interest	423	253
Supplemental disclosure of noncash investing and financing activities
Fixed assets acquired through financing obligations	0	3,128
Fixed assets acquired through capital lease arrangements	184	448
Allowance for tenant improvements	698	0
Accrued distributions to members	$ 60	$ 0

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Allowance for doubtful accounts	$ 345	$ 274
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, share authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	27,758,184	27,213,791
Common stock, shares outstanding	27,758,184	27,213,791
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, share authorized	500,000,000	500,000,000
Common stock, shares issued	12,426,947	12,426,947
Common stock, shares outstanding	12,426,947	12,426,947

XML

Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data):

	Three months ended
	March 31, 2015						March 31, 2014
	Class A			Class B			Class A			Class B
Numerator
Net loss	$	(5,110	)	$	(2,337	)	$	(2,776	)	$	(1,776	)
Denominator
Weighted-average common shares outstanding - basic and diluted	27,166,753			12,426,947			19,372,730			12,394,783
Basic and diluted net loss per share	$	(0.19	)	$	(0.19	)	$	(0.14	)	$	(0.14	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows:

	Three months ended
	March 31, 2015	March 31, 2014
Shares subject to outstanding common stock options	2,266,783	2,534,438
Shares subject to unvested appreciation units and participation units	—	20,308
Shares subject to unvested restricted stock awards	584,350	—

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 01, 2015
Entity Information [Line Items]
Entity Registrant Name	WORKIVA INC
Entity Central Index Key	0001445305
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Amendment Flag	false
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		27,762,714
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		12,426,947

XML

Supplemental Consolidated Balance Sheet Information - Accrued Expenses and Other Current Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Accrued Liabilities and Other Liabilities [Abstract]
Accrued vacation	$ 3,274	$ 2,949
Accrued commissions	1,566	1,649
Accrued bonuses	2,208	6,336
Self-insurance liability	775	800
Accrued other liabilities	4,372	5,031
Accrued expenses and other current liabilities	$ 12,195	$ 16,765

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenue
Subscription and support	$ 26,269	$ 20,648
Professional services	8,885	7,484
Total revenue	35,154	28,132
Cost of revenue
Subscription and support	5,885	4,669
Professional services	3,777	2,798
Total cost of revenue	9,662	7,467
Gross profit	25,492	20,665
Operating expenses
Research and development	12,008	10,287
Sales and marketing	13,705	10,440
General and administrative	6,734	4,228
Total operating expenses	32,447	24,955
Loss from operations	(6,955)	(4,290)
Interest expense	(510)	(265)
Other income and (expense), net	(66)	3
Loss before income tax expense (benefit)	(7,531)	(4,552)
Income tax expense (benefit)	(84)	0
Net loss	$ (7,447)	$ (4,552)
Net loss per common share:
Basic and diluted (in dollars per share)	$ (0.19)	$ (0.14)
Weighted average common shares outstanding - basic and diluted (in shares)	39,593,700	31,767,513

XML

Stock-Based Compensation

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. Prior to our corporate conversion in December 2014, awards were provided under the 2009 Unit Incentive Plan (the “2009 Plan”). We utilized equity-based compensation in the form of restricted participation units, appreciation units and options to purchase common units. We determined these forms of equity-based compensation were substantive classes of equity for accounting purposes. All outstanding options to purchase common units under the 2009 Plan automatically converted into options to purchase shares of Class A common stock following the corporate conversion. No other unvested award types were outstanding at the time of our corporate conversion.

Immediately prior to our initial public offering, the 2009 Plan was amended to provide that no further awards will be issued thereunder, and our board of directors and stockholders adopted and approved our 2014 Equity Incentive Plan (the “2014 Plan” and, together with the 2009 Plan, the “Plans”).

Subsequent to our corporate conversion, we utilize stock-based compensation in the form of restricted stock and options to purchase Class A common stock. Options to purchase Class A common stock generally vest over a four-year period and are generally granted for a term of ten years.

As of March 31, 2015, awards outstanding under the 2009 Plan consisted of stock options, and awards outstanding under the 2014 Plan consisted of stock options and restricted stock awards.

As of March 31, 2015, 3,332,931 shares of Class A common stock were available for grant under the 2014 Plan.

Stock-based compensation expense for the three months ended March 31, 2015 was $1.6 million and $542,000 for options to purchase common stock and restricted stock, respectively. Stock-based compensation expense for the three months ended March 31, 2014 was $32,000 for restricted participation and appreciation units and $1.9 million for options to purchase common units.

Stock-based compensation expense associated with restricted participation and appreciation units, stock options and restricted stock was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):

	Three months ended March 31,
	2015		2014
Cost of revenue
Subscription and support	$	96	$	230
Professional services	72		170
Operating expenses
Research and development	334		765
Sales and marketing	350		350
General and administrative	1,322		441
Total	$	2,174	$	1,956

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on historical volatilities for publicly traded stock options of comparable companies over the estimated expected life of the options. The expected term represents the period of time the options are expected to be outstanding and is based on the “simplified method.” We use the “simplified method” due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the options. The risk-free interest rate is based on yields on U.S. Treasury STRIPS with a maturity similar to the estimated expected term of the options. The fair value of our participation and appreciation units and options was estimated assuming no expected dividends and the following weighted-average assumptions:

	Three months ended March 31,
	2015	2014
Expected term (in years)	6.1	5.0 - 10.0
Risk-free interest rate	1.35% - 1.74%	1.52% - 2.68%
Expected volatility	42.35% - 44.08%	45.84% - 52.50%
Forfeiture rate	5.12% - 5.21%	0% - 5.94%

Stock Options

The following table summarizes the option activity under the Plans for the three months ended March 31, 2015:

	Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2014	6,089,938	$	9.63	7.80	$	30,066
Granted	42,719	12.90
Forfeited	26,433	12.99
Exercised	14,393	5.48
Outstanding at March 31, 2015	6,091,831	$	9.65	7.65	$	33,124
Exercisable at March 31, 2015	3,248,657	$	5.28	6.48	$	30,350

The total intrinsic value of options exercised during the three months ended March 31, 2015 and 2014 was $114,000 and $30,000, respectively.

The weighted-average grant-date fair value of options granted during the three months ended March 31, 2015 and 2014 was $5.50 and $7.93, respectively. The total fair value of options vested during the three months ended March 31, 2015 and 2014 was approximately $2.2 million and $1.7 million, respectively. Total unrecognized compensation expense of $16.6 million related to options will be recognized over a weighted-average period of 3.02 years. Total compensation expense recognized during the three months ended March 31, 2015 and 2014 for outstanding options granted to service providers was $77,000 and $228,000, respectively, based on the fair value on the vesting date or the fair value on the reporting date if unvested.

Restricted Stock

During the three months ended March 31, 2015, we granted 530,000 shares of restricted stock to our executive officers with vesting in three equal annual installments from the date of grant. The fair value for restricted stock awards is calculated based on the stock price on the date of grant. The weighted-average grant-date fair value of restricted stock granted during the three months ended March 31, 2015 was $13.40.

Compensation expense associated with unvested restricted stock is recognized on a straight-line basis over the vesting period. The expense recognized each period is dependent upon our estimate of the number of shares that will ultimately be issued. At March 31, 2015, there was approximately $7.3 million of total unrecognized compensation expense related to restricted stock, which is expected to be recognized over a weighted-average period of 2.69 years.

Restricted participation and appreciation units

The total fair value of participation and appreciation units vested during the three months ended March 31, 2014 was approximately $51,000. At December 10, 2014, all participation and appreciation units converted into Class A common stock as part of the corporate conversion.

XML

Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Lease Commitments

There have been no material changes in our future estimated minimum lease payments under non-cancelable operating, capital and financing leases, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014.

Government Grants

In connection with a February 2011 grant agreement with the Iowa Department of Economic Development, we were awarded a grant that provides for reimbursement of costs incurred in connection with the construction of the first phase of the Ames office building. In March 2015, we received proceeds of $313,000 in connection with this grant which is included in “Deferred government grant obligation” on the consolidated balance sheet at March 31, 2015. At March 31, 2015, this amount is presented as a non-current liability as we anticipate offsetting it against the carrying value of our property and equipment once all contingencies are resolved in December 2015 and the grant is determined to be realized.

Litigation

From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of any currently pending legal proceedings to which we are a party will not have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

XML

Stock-Based Compensation - Assumptions (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term (in years)	6 years 1 month 6 days
Risk-free interest rate, min	1.35%	1.52%
Risk-free interest rate, max	1.74%	2.68%
Expected volatility, min	42.35%	45.84%
Expected volatility, max	44.08%	52.50%
Forfeiture rate, min	5.12%	0.00%
Forfeiture rate, max	5.21%	5.94%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term (in years)		5 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term (in years)		10 years

XML

Fair Value Measurements - (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt fair value	$ 0.2
Recurring | Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents - money market funds	$ 85.2	$ 97.1

XML

Supplemental Consolidated Balance Sheet Information (Tables)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities as of March 31, 2015 and December 31, 2014 consisted of (in thousands):

	March 31, 2015		December 31, 2014
Accrued vacation	$	3,274	$	2,949
Accrued commissions	1,566		1,649
Accrued bonuses	2,208		6,336
Self-insurance liability	775		800
Accrued other liabilities	4,372		5,031
	$	12,195	$	16,765

XML

Net Loss Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss Per Share

Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including our outstanding stock options and stock related to unvested restricted stock awards to the extent dilutive. All historical share counts used in the calculation have been adjusted for the corporate conversion.

The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss attributable to common stockholders is allocated on a proportionate basis.

We consider unvested restricted stock awards granted under the 2014 Equity Incentive Plan to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. In future periods to the extent we are profitable, we will subtract earnings allocated to these participating securities from net income to determine net income attributable to common stockholders.

A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data):

	Three months ended
	March 31, 2015						March 31, 2014
	Class A			Class B			Class A			Class B
Numerator
Net loss	$	(5,110	)	$	(2,337	)	$	(2,776	)	$	(1,776	)
Denominator
Weighted-average common shares outstanding - basic and diluted	27,166,753			12,426,947			19,372,730			12,394,783
Basic and diluted net loss per share	$	(0.19	)	$	(0.19	)	$	(0.14	)	$	(0.14	)

The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows:

	Three months ended
	March 31, 2015	March 31, 2014
Shares subject to outstanding common stock options	2,266,783	2,534,438
Shares subject to unvested appreciation units and participation units	—	20,308
Shares subject to unvested restricted stock awards	584,350	—

XML

Organization and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Principles of Consolidation

The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on March 11, 2015. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three months ended March 31, 2015 are not necessarily indicative of the results expected for the full year ending December 31, 2015.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the determination of the relative selling prices of our services, self-insurance liability for claims incurred but not yet reported, collectability of accounts receivable, useful lives of intangible assets and property and equipment, income taxes and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates.

Fair Value of Financial Instruments

Our financial assets, which include cash equivalents and marketable securities, are measured and recorded at fair value on a recurring basis. Our other current financial assets and our other current financial liabilities have fair values that approximate their carrying value due to their short-term maturities.

New Accounting Pronouncements

In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition - Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition. The effective date of January 1, 2017 is currently under review based on the FASB's recent decision to propose a one-year deferral. We are currently evaluating the impact of the provisions of ASC 606.

In April 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. The amendment is effective for interim and annual periods beginning after December 15, 2015 with early adoption permitted. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The standard will become effective for interim and annual periods beginning after December 15, 2015. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements.

XML

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock-based Compensation Expense

Stock-based compensation expense associated with restricted participation and appreciation units, stock options and restricted stock was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):

	Three months ended March 31,
	2015		2014
Cost of revenue
Subscription and support	$	96	$	230
Professional services	72		170
Operating expenses
Research and development	334		765
Sales and marketing	350		350
General and administrative	1,322		441
Total	$	2,174	$	1,956

Schedule of Share-based Payment Award, Valuation Assumptions

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on historical volatilities for publicly traded stock options of comparable companies over the estimated expected life of the options. The expected term represents the period of time the options are expected to be outstanding and is based on the “simplified method.” We use the “simplified method” due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the options. The risk-free interest rate is based on yields on U.S. Treasury STRIPS with a maturity similar to the estimated expected term of the options. The fair value of our participation and appreciation units and options was estimated assuming no expected dividends and the following weighted-average assumptions:

	Three months ended March 31,
	2015	2014
Expected term (in years)	6.1	5.0 - 10.0
Risk-free interest rate	1.35% - 1.74%	1.52% - 2.68%
Expected volatility	42.35% - 44.08%	45.84% - 52.50%
Forfeiture rate	5.12% - 5.21%	0% - 5.94%

Schedule of Stock-Option Activity

The following table summarizes the option activity under the Plans for the three months ended March 31, 2015:

	Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2014	6,089,938	$	9.63	7.80	$	30,066
Granted	42,719	12.90
Forfeited	26,433	12.99
Exercised	14,393	5.48
Outstanding at March 31, 2015	6,091,831	$	9.65	7.65	$	33,124
Exercisable at March 31, 2015	3,248,657	$	5.28	6.48	$	30,350

XML

Stock-Based Compensation - Narrative (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 2,174	$ 1,956
Employee and Nonemployee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,600	1,900
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	542
Restricted Participation and Appreciation Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 32
Class A Common Stock | 2014 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	3,332,931
Class A Common Stock | 2014 Equity Incentive Plan | Employee and Nonemployee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years
Expiration period	10 years

XML

Stock-Based Compensation - Restricted Participation and Appreciation Units (Details) (Restricted Participation and Appreciation Units, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Restricted Participation and Appreciation Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 51

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (7,447)	$ (4,552)
Other comprehensive income, net of tax
Foreign currency translation adjustment, net of taxes of $60 and $0, respectively	69	26
Unrealized gain on available-for-sale securities	0	51
Other comprehensive income, net of tax	69	77
Comprehensive loss	$ (7,378)	$ (4,475)

XML

Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:

Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.

Level 3 - Inputs are unobservable inputs based on our assumptions.

The fair value of our money market funds reported in cash and cash equivalents at March 31, 2015 and December 31, 2014 was $85.2 million and $97.1 million, respectively. These assets are classified as Level 1 on the fair value hierarchy.

Other Fair Value Measurements

At March 31, 2015, the fair value of our debt obligations approximated the carrying amount of $0.2 million. The estimated fair value was based in part on our consideration of incremental borrowing rates for similar types of borrowing arrangements. We have generally classified the fair value of our debt obligations as Level 3 due to the lack of relevant observable market data over fair value inputs.

XML

Net Loss Per Share - Earnings Per Share Basic and Diluted (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Class of Stock [Line Items]
Net loss	$ (7,447)	$ (4,552)
Weighted average common shares outstanding - basic and diluted (in shares)	39,593,700	31,767,513
Basic and diluted net loss per share (in dollars per share)	$ (0.19)	$ (0.14)
Class A Common Stock
Class of Stock [Line Items]
Net loss	(5,110)	(2,776)
Weighted average common shares outstanding - basic and diluted (in shares)	27,166,753	19,372,730
Basic and diluted net loss per share (in dollars per share)	$ (0.19)	$ (0.14)
Class B Common Stock
Class of Stock [Line Items]
Net loss	$ (2,337)	$ (1,776)
Weighted average common shares outstanding - basic and diluted (in shares)	12,426,947	12,394,783
Basic and diluted net loss per share (in dollars per share)	$ (0.19)	$ (0.14)

XML

Commitments and Contingencies - Government Grants (Details) (USD $) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2015	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Government grant awards	$ 313	$ 313	$ 2,000