Stifel raised its price target on Workiva Inc. to $95 from $70 while maintaining a Buy rating, citing accelerating revenue growth and expanding AI capabilities across the company’s reporting and governance, risk and compliance platform.
Workiva reported second-quarter revenue of $255.29 million, up 19% year-over-year and ahead of the $251.15 million consensus. Adjusted earnings reached $0.77 per share, surpassing estimates of $0.64 per share. For the last twelve months, revenue totaled $965.7 million, a nearly 20% increase, with gross profit margin steady at 80%.
Stifel highlighted a multi-year high in new-customer activity and pointed to cross-sell and up-sell opportunities driven by a growing suite of AI tools integrated into Workiva’s product line. Capital markets demand also improved, according to management, which hosted a fireside chat with the CFO and SVP of Corporate Development this week.
The firm noted Workiva’s continued focus on operational efficiency, which has supported profitability improvements alongside ongoing investments in development and infrastructure. Stifel anticipates modest financial updates at the company’s upcoming user conference and analyst day.
Despite the earnings beat and upward revisions from 10 analysts tracked by InvestingPro, Workiva shares declined in after-hours trading, as investors focused on forward guidance rather than the quarterly outperformance.
