Okay, welcome to the 2022 Workiva Investor Analyst Day. We are coming to you live from Las Vegas at the Workiva Amplify Conference. This is our first in-person user conference we've had since 2019. We have both investors and analysts here in the room today. We are also live streaming this and have many joining us via the live stream. Thank you for all those of you out there in the live stream. My name is Mike Rost. I am the Senior Vice President of Corporate Development and Investor Relations at Workiva. We have a great session here today, joined by Marty, Julie, Erik, and Jill, walking through both strategy and some financials to give you an outlook on Workiva. To kick things off here, a couple housekeeping items. First off, for those of you joining via the live stream, there is a Q&A function up on the top right of your screen. That's where you can submit questions online. We will have a Q&A session at the end. For those of you in the room, we will be taking questions live, so be prepared with your questions. I'm assuming we'll have a few here in the room as well. Thank you in advance for that. To kick things off, the obligatory safe harbor statement. This presentation includes forward-looking statements. All statements contained in this presentation, other than the statements of historical facts, including statements regarding our future results of operations, financial position, or business strategy and plans, objectives, and future operations are forward-looking statements. We're gonna be using a lot of words like believe and will and estimate. Just again, please familiarize yourself with the safe harbor statement because we will be making some forward-looking statements that may change in the future. With that, I'm gonna kick things off right out of the gate here to Marty Vanderploeg, our CEO. Marty, welcome to stage. Thank you, Mike. Well, welcome everybody. Great to see familiar faces out there and some that aren't familiar, but thanks for making the trip to Las Vegas. I know that isn't a real heavy lift because there's always something to do here. Welcome to all those virtual. I know there's a lot of other investor conferences going today, so I'm sure a lot of people went virtual and are hopping around. Good to have everybody here. We have a really good day of stuff. I think the part I always look forward to the most is the Q&A. We'll run through a few slides here just to level set, but I think most of you know most of this information. I wanna talk just a little bit about our mission statement because it does play into where we're going and where we think we can get to. You know, this was Julie's masterful. She came up with this mission statement, and why a mission statement is important is a company needs to have a North Star they're always chasing. This is something that really motivates people. It motivates me for many reasons. You know, trying to bring transparency to the world to make it a better place, we'll talk about a lot of things we do that do that, is something that our people really rally behind. When you have something to rally behind, you always get really good performance from your team. The other thing I wanna mention on this slide is that, if you look at most of the things we do, look at the key regulatory, we know there's gonna be more regulation. There's just no way around it. So many people and so many things going on. Reporting financial and ESG data. We know where ESG is going. ESG demand is being driven by the capital flows and by consumers. Consumers are pushing that more than the regulators are. The regulators will catch up, but. You know, non-financial data, performance data, are all things that are up and coming. All this is an up-and-coming list. We really feel good about our position right now in terms of the markets and which way they're going and our TAM that we'll talk about later. One other thing I will mention is, just a very high level, some key takeaways. First off, I just wanna say as a, you know, we're pretty unique as a SaaS company for several things. You'll hear about our product, which is a platform, a true platform that we've invested a lot of dollars in, and it's just coming to maturity now. That's a big thing for us in terms of growth. The second thing is, in many aspects of our growth profile, we're a little bit behind the curve in terms of our, you know, our life cycle. We have big growth opportunity with partners. We started that a little late because we wanted to finish the new platform. We have great growth opportunities international, and we've invested a lot in, you know, getting reference accounts, putting infrastructure in those international markets. I'm very optimistic that between partners and expanding TAM, you know, being able to expand overseas and then having a freshly built platform, we're really well-positioned. The last thing before I move through some of these numbers is that unlike most SaaS companies, I think, we have spent a lot of time and a lot of money investing in our TAM. We bumped our head on our TAM once when we went through the SEC reporting market so fast. That was not a pleasant experience. We've seen lots of other software companies, start to hit their head on their TAM, and you start to get into the late majority. Selling gets a lot harder, growth is more expensive, and stalls out. We're really bullish on the fact that we spent a lot of our dollars, our investment dollars on expanding TAM. Okay. Those are sort of the major takeaways I want everybody to have when they think about Workiva, where we're at in our life cycle. With that, I'll get to some numbers. I think most of these you're all familiar with. I think the one I'm proudest of is the 97.9 revenue retention. That's a hard number even to keep up that high, but it's really world-class in terms of retention. So much cheaper to keep a customer than to go get a new one and onboard them and get them happy. We're very proud of that. Then we've penetrated a lot of big companies. You know, we're 71% of the Fortune 1000. We're gonna make that number higher. That's something that we believe we can do. Really, in the U.S., we see a lot of other expansion opportunities. We'll talk about those as we go, and Julie will talk a lot about our growth initiatives. The 180 companies is interesting. We don't sell in 180 companies. These are all multinational corporations that buy it, and we see lots of seats in countries we've never sold anything like India and places like that. It's really a true, you know, cloud-based application you can access anywhere. Let's see if there's anything else I wanted to mention there. You'll see the partner number. The last one in the corner just talks about usage. That's 21 billion links, you know, across our customers. What did I say? I'm sorry. 2.1 billion links across our customer base. That shows how active our customers use our software. That's a thing we sort of measure even by account to sort of understand how well they're using the high-value features in our platform. This is obviously I talk about this quite a bit. The founders of this company were accountants and engineers, software engineers in general. This company, the culture of this company is a product company. We really are a product company. We take great pride in our product, and we believe, you know, we have a really robust brand-new, you know, platform and a true platform. The thing that you know, you go to a lot of SaaS companies' website, and you scratch your head trying to figure out what they do. We are really good at connecting data into a central location and creating reports, creating textual reports, creating spreadsheets, creating presentations. That's really our strength, integrating with source systems and creating these reports, cutting time out of the process, cutting effort, and cutting risk. The real value drivers of our platform are risk reduction, efficiency, and time. When I talk about time, that sounds like the same thing, but it's not. Some of our management reporting solutions have taken the time to create a report that management teams need to make a decision from three weeks down to overnight. Getting the data overnight, you can actually steer the ship, and you don't have to wait three weeks to know which way to turn. That's what I mean when I talk about time. It's on one single cloud-native platform. You know, the company has been built primarily organically, and we're all on the same platform. Again, these are mostly two things. These come primarily from the fact that we are a platform, number one, and number two, we put a lot of emphasis on security. We have a really strong security team, and obviously, in this day and age, that's becoming more and more important. All the rest of these are just, you know, features of a really well-built platform. One thing I'm also very proud of and the whole company is proud of is our continuous deployment model, where we put out 60, you know, or plus new pieces of software every day out into production. That's something that you see in the biggest B2C software companies. You don't see it in the B2B, not that I'm aware of. That's a huge lever for us when we're building software and deploying to customers. Obviously, I said we spent a lot on our platform, and I wasn't kidding. Those are dollars I never mind spending because it builds a moat, a strong competitive moat, and it creates a very feature-rich platform that, as you saw in the last slide, scales and is secure and all those types of things. When I talk about competitors, you know, most of them are niche suppliers of some of our solutions. We have a lot of solutions we sell, and we'll talk about that more today. Most of those niche providers are on old platforms. The only place we have a modern software competitor is in the GRC, in the integrated risk. We'll talk about that later. That's really the only place we have a modern competitor, if you will, or a modern piece of software being sold by a competitor. XBRL is a big lever for us. XBRL is coming everywhere. Every year there's more mandates, and we expect more and more of those. We're considered the leader in XBRL tagging, and as that's sort of a layer on top of everything we do that just drives demand and gives us competitive advantage, being really good at XBRL. We're seeing those mandates all over the world too. You know, the most recent one we've talked a lot about is ESEF, a lot in Asia, and more and more are coming. That's another growth driver. Let's see if I missed anything else I wanted to mention. No, it's pretty self-explanatory. Solutions, this we'll talk about a lot today. Three general categories, you know, financial reporting. I think you're all familiar with all those there. We've talked about them at length, the different financial reporting solutions. The operational reporting, something maybe we haven't talked about, two of those now really in that category. One is management reporting, which we've been selling for quite some time. We haven't put a lot of distribution focus on that or lots of go-to-market focus on it, but we have a number of customers using it for management reporting. ESG, obviously, which is the new, you know, solution that obviously you've heard me talk about at Amplify. I have some verticals overlaid as well. We haven't verticalized all of our products because we're primarily a horizontal solution. But in some markets, it's made sense. Financial services, we've been vertical there for quite a while, and the public sector as well, and energy, that's sort of a new one we've just started in the last year or two. Let's see. Talk just a little bit about M&A. As you all know, we've done four smaller tuck-in acquisitions lately. We're very active out in the market looking for M&A opportunities. We look at hundreds of companies all the time. Our philosophy has always been, you know, you have to check a lot of the boxes before we'll go down that road. Many M&A activities are unsuccessful, and we believe that you have to have a fit on almost every box to really pull the trigger. You know what? I know investors always watch that very carefully. They hate to see big acquisitions that don't look well fit. We try to avoid revenue roll-ups. That's not the game we're in. We always look for leverage if we do an acquisition. The two that are most notable up there is OneCloud, which was a company that we OEM their product. That was the connectors that we connect to all the different source systems. We had some ourselves through APIs, but that was really a play to get more connectivity to source systems. We had been working with them for quite a while, and our software was well integrated, and we were OEM-ing their product, and it became clear that that would be a really strategic piece of technology to own. That's what drove that acquisition. More recently, the ParsePort acquisition was about that was a Denmark company that had done a lot of the bolt-on selling bolt-on solutions for the ESEF tagging market. We added about 900 logos, ESEF logos that we can now access in Europe. It was also partially defensive. We didn't want some of our traditional printers to buy them. It was a really good team of people, and their culture fit really, really well. Just good people. We wanted to keep our XBRL dominance. We wanted access to those ESEF customers, and it was partially defensive to keep it out of other hands, and it's worked out really well so far. The Arelle that was something we'd invested in quite a while in terms of validation, XBRL validator that the SEC uses and a lot of others. It's open source, and we bought that from a company. We had done about half that investment ourselves already, but bought it from a sole owner. We will continue to have that open source, by the way. AuditNet was an older company that had a large set of audit templates. We're selling those in our marketplace currently. I talked about our TAM. We invested a lot in this, and we think this is not an overly aggressive number at all. Again, that's from investing in all these different solutions and our platform and building more and more fit-for-purpose solutions. Sort of the end, I'll just summarize here. You know, I've been talking a lot about growth opportunities. We have a big TAM. We have lots of space out there to sell, lots of white space in our existing customers. We're very bullish on that. Obviously, in the current environment, operating leverage has become more and more focused on. In the last earnings call, I talked about that quite a bit. It's also, in our life cycle, a time for us to focus on that more. You go through different phases as a company, and we will be focusing on operating leverage. We have some really good leverage to pull, frankly. We're optimistic that as we scale and get past that $500 million of recurring revenue. There are levers we plan to pull to increase our operating leverage. Investment highlights. I think I've hit almost all of these. I would comment on one more. We have a fantastic team of people, great culture. The people are very collaborative, work together, and I, you know, I think culture beats out strategy any day. We just have a fantastic culture. You'll feel it all around when you know, when you go around the conference today. Good people working hard, trying to do the right thing and working very hard, and they're very smart. So we just have a great group of people in this company, and that's the horse I always bet on. Just a great group of people, and they trade very, very hard and always deliver. Some of the things they've done, the first time we did FedRAMP, then we moved all our customers, the R&D team building the new platform. Those are just, you know, herculean efforts and stuff you don't see very often. It's all because of the team and the culture. One other thing, we have a great management team. I've said this many times. At this point, I'm happy with every single person on our management team. They're all doing a great job and moving the ball forward, and that's the first time in 14 years I can say that I'm happy with every person that works in the organization on the management end so. With that, I turn it over to Julie, right? Yep. Gotta make sure I got my agenda right. A lot of meetings, so I get lost in my agenda. You don't get the clicker. The clicker goes to- You get the clicker going. Got a clicker. Got a clicker. Oh, boy. Hello. It's so good to see all of you. Hopefully, you got a chance to attend our general session because early this morning, it's only a short walk from here, I told the crowd here at Amplify that transparency and accountability have never mattered more. The efficiency and the accuracy and the integrity of reporting, it matters, and it's regulations or not. That is Workiva's sweet spot, okay? We make it easier for companies around the globe to be more transparent and more accountable to their stakeholders. Our relevance, our impact, and our potential impact has never been greater. With that as a backdrop, I will take you through a picture of where we are today and where we're headed, and it's all in the context of our growth strategy. Without question, 2022 has brought some challenges. Top of mind for us, of course, is capital markets, and it's seen a significant decrease in activity over, let's say, year-over-year. We've also heard, I think in our last earnings call, we talked about our expectation is we're not expecting capital markets to come back in the second half of the year. Even with that, there is this economic uncertainty, there's also challenges like inflation, there's challenges like supply chain, supply chain issues and the war and so forth. The list goes on and on that you have here. The thing that hasn't changed is our opportunity. What also hasn't changed is our positioning. We're beautifully positioned to capitalize on that opportunity. We do have the right platform for the right time. It's risk, regulation, compliance, ESG, digital transformation. I mean, these are the topics of our day. CEOs in boardrooms everywhere, these are the topics being discussed. We see it too. I mean, we see it in the interactions with our customers. We're getting traction with decision-makers and across multiple functions. Here's an example. I was just recently on a call with a $400 billion market cap company to talk about ESG. I expected the head of sustainability to come and one other person, maybe. But who showed up on the call were five executives from five different functions to talk about individual Workiva solutions, but also to talk about how those solutions work across our platform. Three of these people weren't even invited to the call. This customer for a decade has been a happy SEC customer. Just last year, they added GSR to the platform. Now they're looking at expanding three more solutions. Because of who we are today and the power of this platform that we have, this kind of conversation is now possible, and it's happening with more and more frequency. Probably one of the best ways to tell the Workiva story is just to take a look at some of our recent customer wins. The first is a new customer, top 20 European bank, mid-six-figure deal, five solutions. We landed with the platform, ESG, ESEF, GSR, management reporting, and banking risk. The second example, this is an account expansion deal with a leading medical device company. It's another mid-six-figure deal. It's another long-term SEC customer. four solutions. It's the SEC to the platform. This is our playing to win strategy in action. Fit for purpose solutions on our open, intuitive, connected platform with partners and going global. Now, these are just a few of our wins, but let's take a look at the numbers. We continue to see an increase in multi-solution deals, 20% year-over-year. We see the increase in accounts with ACV greater than $150,000, of 28% year-over-year. Basically, we're going after that $25 billion TAM that Marty just spoke about. It's all a part of our strategy, that same strategy that we've been talking about for the last two years. I mean, this strategy is driving results for us. Higher deal size, more multiple solutions, more account expansions, strong retention, increased partner source deals. I mean, we're seeing the value of the platform play out. As we grow and evolve, our strategy grows and evolves as well. In fact, we recently made a change to it. You probably recall we rolled out the marketplace last year. It's now a part of our platform. We've moved the marketplace under our platform pillar. We elevated a new pillar. It's global excellence. Our solutions are global. They serve a global market. Global excellence has become a top priority. Let's dive into this new pillar of ours and our growth strategy. Marty talked about the global TAM, and you can see here what our TAM looks like across the key regions. It's why we continue to drive to be excellent everywhere, in go-to-market, in delivery, and in product. Let's focus on that EMEA piece. I mean, we know we have significant headroom here. There's a strong regulatory environment. They've been doing sustainability for years, and there's significant opportunity still for financial transformation. As Marty mentioned, ParsePort. We have 850 logos from. These logos are now Workiva customers, and they're accessible for upsell and for cross-sell. All of this with less than 10% of revenue in North America. I mean, we have a lot of upside to go after. How are we gonna do it? Well, we've learned a lot since we've expanded into EMEA in the past few years, and we're better at understanding the approach to the market. We intend to apply more focus, more discipline, and more rigor to both our go-to-market strategy and the way we operate. On the EMEA operations front, we just completed centralizing all of our operational functions, sales, marketing, service, customer success, partners. They all report into their global leaders in North America. This will improve efficiency, and it will operationalize best practices across the globe. How are we gonna get this done? Please meet Erik Saito, our new GM for EMEA. Hi, everyone. Thank you, Julie. I'm Erik Saito. As Julie mentioned, I'm responsible for Workiva's business in EMEA and APAC. It's a pleasure to be here and speaking to you. I've been with Workiva for about four and a half years. I was originally hired by Marty to stand up our APAC business from the ground up. Earlier this year, when there was an opportunity to take EMEA to the next level, I jumped at the opportunity. Boy, is there so much upside in EMEA. I'm happy to talk today about what we're gonna do to capture that upside and that TAM that Julie and Marty talked about. Prior to joining Workiva, I spent seven years at a publicly traded Fortune 500 manufacturing company, where I held some leadership roles, and one of the leadership roles I held, the last one I held, was as the CFO of the Asia Pacific division. That, I believe, gives me a unique perspective on Workiva's customers' challenges that we solve at Workiva, because I also experienced firsthand their challenges. In that organization, I went through very, very manual processes similar to the challenges that our customers face across their reporting, compliance, assurance, and planning processes. Because I've been in their shoes, it gives me that empathy to understand exactly why the Workiva solution fits so well to solve their problem. Prior to that company, I also worked as an investment banker and strategic advisor, and that also gives me a unique perspective when Marty and Julie talked about how we're gonna increase operating leverage. Well, as an investment banker, I learned firsthand the importance for a publicly traded company like us to make sure that we're making fact-based, prudent decisions with allocating our shareholders' capital. All right. Thank you, Erik. We'll do a little Q&A here. How's that? Absolutely. We talk about EMEA and our go-to-market strategy, and we're making some changes there. Do you wanna give us a few details? Absolutely. There are three main changes we're making in the EMEA go-to-market strategy. The first change is focus. We're focusing our resources on markets where we have the highest probability of winning. This means the largest TAM. For example, DACH, Nordics, U.K., Ireland, France, Benelux, Iberia. We have boots on the ground in all those markets, and we have highly engaged partners in the top-tier partnership space. I'll talk about that a little bit later. Finally, it's important that we focus on markets where we have reference customers that are willing to speak on our behalf to other C-level executives about how they went on that finance transformation journey and deployed Workiva to achieve that value. The second change we're making is incorporating the corporate reporting go-to-market play into our playbook. In Europe, companies look at, and their CFOs look at their reporting process in an integrated corporate reporting process. What that means is they look at the reporting process in one continuous workflow, from data gathering to transformation, to compliance against jurisdictional compliance requirements across Europe and other markets, to ensuring that their operations have good corporate governance, to finally providing third-party assurance. All of that in a continuous workflow, not in disjointed, You know, solutions to problems in a disjointed process. By incorporating that into our go-to-market playbook, it enables us to sell the Workiva as a solution, as a true platform. We provide a connected experience to our customers, and that's critical in this corporate reporting play. That means that our solution is able to help our customers in that entire workflow in a connected experience, and that enables us to truly differentiate ourselves in the market. The third change we're making is leveraging our top-tier partners more, not just in deploying our software, which is the traditional way that software companies work with partners, but actually in making Workiva part of the partner's solution for their clients. I call it Workiva, you know, powering our partner solution. How we're doing that is we're training our client relationship partners at these firms on how to position Workiva as part of their solution to solve their clients' corporate reporting challenges. We're also having our solutions architects deploy solutions alongside their project teams until they're self-sufficient. Finally, we're executing a lot of co-marketing activities, CFO forums, webinars, where we're featuring how Workiva is powering the finance transformation journeys for their client base. All these initiatives enables us to increase the pace at which we can capture that TAM in Europe that Marty and Julie talked about. Yes. Well, thank you, Erik. Let's go to operating leverage. We've been talking a lot about that as well. Do you wanna talk about some of the areas we're focusing on in EMEA? Absolutely. Once again, there are three areas. The most important thing to increase our operating leverage is increasing productivity. What we're doing is we're increasing sales productivity, first of all, and reducing our customer acquisition costs. Earlier, I talked about partnerships. When partners source opportunities to us, when they're selling the Workiva solution as part of their toolkit to solve their clients' corporate reporting challenges, it naturally enables us to access the C-level executives that they're trusted advisors to more efficiently and more directly. By doing that, we lower our, you know, we increase our win rate, we increase our deal size with multi-solutions, and also, hopefully, over time, it shortens our sales cycle because we can access directly the decision makers at these European companies. The second thing we're doing is we're also reviewing the productivity across the sales teams to ensure that we're aligning the right resources with the right markets where we have the highest probability to win that we talked about earlier. We're reviewing productivity also from the perspective of raising the bar on results, expectations, and accountability. Aligning our teams against those market opportunities is critical to make sure that we're able to increase our productivity, which in turn allows us to increase the leverage of the resources we invested in Europe to capture that TAM. Excellent. Thank you for that too, Erik. I think one final one. Let's talk about results. Can you highlight a couple of recent wins for us in showing our momentum in EMEA? Absolutely. I actually wrote these down so that I can, you know, capture all the details for you. I'll highlight three deals that capture some of the themes that I talked about earlier that we're implementing across EMEA. The first deal is earlier this year, we won a large managed services partner deal with a Big Four firm around global statutory reporting. We replaced their legacy technology with our platform to help them achieve efficiencies across their client reporting teams while continuing to provide a great service to their clients. We also recently closed a mid-six-figure multi-solution deal at a top 15 European bank. This is a different bank than the one that Julie referred to earlier. This multi-solution deal included SEC, management reporting, and ESEF, all being delivered by a partner. This deal was an example of our corporate reporting go-to-market play at work. Finally, I'm particularly proud of this one, is another example of the corporate reporting playbook paying off is a mid-six-figure deal multi-solution win at an S&P 500 manufacturing company based in Europe. This company purchased ESG, SEC, management reporting, and global statutory reporting solutions all at once. This deal was particularly significant for us because it showcased our investment in a different set of partners. In Europe, I earlier talked about corporate reporting play. In European companies, there's a much greater prevalence of the concept of integrated reports, where companies would have one report that highlights everything from ESG to corporate governance and the traditional financial reporting all in one report. However, in a lot of those, a lot of European companies, different stakeholders and external parties influence different parts of that report. As you know, this, the office of the CFO clearly controls the financial statements and footnotes, the back end of the report. The front end of the report is often controlled by investor relations or corporate secretary and is highly influenced by design agencies. We partnered in this particular multi-solution deal with the design agency, external, that actively influenced that deal to help us win. That was significant. That was another highlight of our partnership strategy and the success of how we're gonna go after it with our strategy. Thank you, Erik. Again, appreciate it. Thank you. You can see why perhaps we're so enthusiastic about our opportunity in EMEA. Let's go to the most talked about solution in our portfolio right now, ESG. As we highlight often, ESG represents a generational opportunity for growth for us. We continue to see momentum, and we are winning landmark accounts early in our journey. I mean, just take a look at some of these wins in our key industries, and this with only one year in with our ESG offering. It's not just regulation that's the driver. Companies are adopting our ESG solution even without regulatory mandates. The mandates are coming. Required ESG disclosures that you can see various stages of maturity across the globe. I mean, most of the proposed regulations include ESG disclosures in the annual report, but along with audit and tagging being required. The platform, this integrated reporting, audit and tagging, that's Workiva. That's our wheelhouse. It's also why our end-to-end platform with ESG is unrivaled. ESG requires the collection, the ingestion, the preparation, the mapping, the assembly of data from disparate sources. It requires the collaboration of multiple stakeholders across many functions, and it requires investor-grade, audit-ready reporting that meets global framework standards. This is what we excel at. It's a natural fit for our platform, and it's a natural fit for Workiva. We'll continue to invest in ESG to remain differentiated and to keep our leadership position. This will drive our long-term growth. Another key driver for growth for Workiva is GRC. Quite simply, risk is rising in terms of importance. There are more risks with greater impact on businesses. I mean, economic volatility, supply chain, climate change, risk around the war, list goes on. Risk management is a priority for CEOs and boards everywhere, and our platform excels at identifying, tracking, and managing risk. This is why we're bullish, and this is why we continue to look positively in the market. We have an industry-leading solution. We're recognized in the Forrester Wave as a leader in GRC, and we're seeing strong growth in number of GRC customers. It's up 26% year-over-year. The product density in GRC is increasing as well. In fact, with GRC, the platform shines. It's our competitive advantage. I mean, when customers want more than just a single solution, we're far more likely to win. In fact, GRC is our top-selling multi-solution combination, and whether that's within the GRC suite of solutions or it's across the broader Workiva platform. We're leveraging this trend in our go-to-market tactics. We're approaching the market with solution bundling and the platform play. I don't need to go into the detail about the enhancements we've made to the GRC portfolio because you've got an opportunity here to see them for yourselves at Amplify. Last area to highlight today, it's partners. Partners is critical for our growth. I mean, when partners are involved, we see higher deal size, increased win rate, and further adoption, just as Erik described as the situation in EMEA. Here are a few large partner source wins for Q2 across our globe, North America, APAC, and EMEA. This is where you see strategic pillars of ours building on each other. It's that multi-solution on the platform and across the globe. We're also seeing an uptick in MSP deals. Now that partners know how to implement and service and support our customers with their on their own, with their own services, they see value in the platform for the customers and for themselves. What I'll leave you with is our market opportunity remains strong. Our TAM, it's intact, and it's significant. Our platform, it's ready for these times. Our strategy, it's driving clear results. Our customer base, it's ripe for expansion. Our partner ecosystem, it's continuing to expand and strengthen. It's on us. It's on Workiva to go after the opportunity. It's all about execution. You'll hear from Jill's financial update. We're focused on operational efficiency and improving our operating leverage as we grow. Thank you, and I'll hand off to Jill. I'll walk through a few financial updates, and then we'll go into, as Julie had talked about, a little bit of the expectations that we have around how we're going to continue to move towards more operating leverage and really just how we're gonna have you all expect to see the results of all the strategy and execution that everybody was talking about in our numbers. We'll start out here with just a few highlights. Nothing new here for any of you, of course. Q2 2022 was a good quarter. Continued to see good revenue growth across both subscription and total revenue. We also had, as Marty had mentioned, our best-in-class gross dollar retention and also still strong net dollar retention with add-ons. We'll go into a little bit more detail on that in a couple slides here. Strong results. We're very pleased, and we're going to continue to grow into the end of the year. Just a quick overview for Q2. Then another overview would be our company total customers logos. This is without ParsePort. We had 15% growth year-over-year in Q2 in our organic customer growth. As both Marty and Julie mentioned, we this doesn't include ParsePort, which was over 850 new ESEF clients that we added as part of that acquisition. We will continue to show those separately and together. I think on Marty's slide, you would've seen the total customer count that was inclusive of ParsePort. Since they are such a different business, different deal size than our normal customers, our more organic customers, we wanna make sure and give you all that information so that we can continue to disaggregate that. They're different enough that we won't really be able to slide them together. Good continued acceleration in logos. The other piece that's helping us to drive that revenue growth and to add more logos is just word of mouth. Of course, everybody continues to be happy customer. This is something you can see on the right of this graph here. You can see excluding capital markets for that net revenue retention. This is something that verbally I've given the past couple quarters, but we thought it would be good to just call this out more graphically. Capital markets is a business for us that makes a lot of sense. We've talked about this with all of you, I feel like probably quite a lot, but I'll go over it again. It makes a lot of sense for us to get in and do those deals, but they do cause some noise in our numbers. Last year, when the capital markets business was doing so well, we had those very large deal sizes for those initial IPOs. They're often accelerating in their revenue in the speed of the recognition. What that does in a year-over-year comparison in this calculation is that it, even though we're keeping that logo, if they complete their transaction, they're definitely using us for at least SEC and hopefully more solutions. It does look like net dollar churn year-over-year in this calculation. We wanna make sure and call that out, that if we were excluding capital markets, we do see still a pretty solid number around our net revenue retention. We'll keep calling this out. It will, as capital markets starts to, you know, as Julie said, we don't expect it to come back in the end of the year, but eventually something will happen. We'll keep talking about that because it does cause some noise in the numbers, and we wanna make sure and call that out to all of you. This is a look at it as you're all very familiar with, the average deal size tranches of our customers. A customer is greater than $100,000, greater than $150,000, and greater than $300,000. We continue to see growth in this. Something else that we wanted to provide to all of you today is a little bit of a more information on these three tranches. What you're seeing here on the left, you see the graph has the average historical ACV of each of these, of the $100,000 and the $150,000 plus tranches. You can see that we have really nice growth in the average deal sizes in each of these customer groupings. You'll note, just to call out, I wanna make sure that the $100,000-plus group is inclusive of everything up through the biggest customers. $150,000 growth up through the biggest customers. They're inclusive. They're additive throughout. On the right, you can see that for that largest tranche of customers with the three that have more than $300,000 in annual contract value, that our average or the average ACV for those customers is greater than $600,000. We have some very large customers, we have some very small customers. They're all just as important to us. We think that we have a lot of room for growth, even in that base of customers that, you know, 75% of our customers that have less than $100,000 in ACV with us. We know that with executing on the strategy, as Julie was talking about, that we have the opportunity to bring them in for more solutions, added usage, and really to drive up that ACV, by having them see the added value that they can get with additional solutions from the product and continuing to be able to use our platform and as our retention numbers have shown, be very pleased with the platform as well. We're definitely solving problems for them, and we know that we can continue to grow this. Thought this would be some good data for you all to have. The next one that we have here is a variation on that theme. Again, back to a lot of what Julie was saying, the execution that we've been able to have around adding more multi-solution customers. In Q2 of 2022, 56% of our total revenue came from customers that had more than one solution. That's total revenue, not number of customers. It's talking about those really some of our biggest customers and that biggest tranche of customers that have multiple solutions. This is something that we want to continue to grow, of course, as well. We think that we can as we are providing additional value within the platform, allowing our customers to get their data in there, use that same data across all of their different solution areas. This is something that we expect to see grow over time. Again, just showing that progress that we're seeing as we do execute on that strategy that Julie so nicely laid out. Also in EMEA, you know, it's smaller there. We have less than 10% of our revenue outside of North America, but that's gonna be one area of growth here too, and a lot of those customers are adding multiple solutions as Erik talked about. The next slide that we're gonna go into, we're gonna talk about our customer cohort revenue. This is a look at our total revenue, SNS revenue, excuse me, total SNS revenue by cohort. Those cohorts are the customers that we're adding each individual year. The bottom sliver in black would be the customers that we added in 2010 and how they're still contributing to revenues, SNS revenue today. If you recall, you might not recall, but we started selling in March of 2010, so that would've been base year, very small, but growing fast and very scrappy at that point. Right, Marty? Scrappy. I call it scrappy. Growing over time, we had some really great growth years around SEC in 2011, 2012, 2013, and really built up that base of revenue for the company. Those are our companies today, our customers today that are adding more solutions. That long-term connection is very strong. I was able to sit in on some of the customer advisory boards. I was able to talk to some of those customers that are on those advisory boards yesterday. Most of them are very long-term customers and very pleased with the platform, very engaged. It's always good conversations to have with them to see how they're continuing to grow with the company and looking to have more control over their data and feel very confident in what they can complete within their jobs using the platform. I think this shows that as well. It's not only our retention numbers, but it's showing here in the annual subscription revenue with these cohorts. Hopefully, this is a good view for you all too. Now, the next thing I know is near and dear to all of your hearts. We're gonna start looking at our long-term historical target operating models. We've done a couple different times put out some long-term models, 2018 at our Investor Day in the fall, and then 2020, we didn't provide an update. Been in this role now for about 18 months, give or take. It's been we've had some ups, the market has come down. There's a lot of different factors. Julie talked about it a lot that we've seen over the last year. I think even over time, over that 18 months, we've grown a lot as a company. I think that the progress that we're making on our partners and how we're moving forward with them, getting used to having the platform complete and all of our customers moved over, which happened in 2020. It's just been a lot going on and you always wanna reflect, okay, is this still what we think makes the most sense? We are going to talk today about an updated long-term operating model. I think that some of the things that continue to ebb and flow, or as you know, Marty even talked about it, was that we're really a platform company. We're driven by development. We're driven by the product. We've made some great investments in that platform, and we know that that's going to be how we execute and win. As we flip over, we can look at our new model. What we're going to move towards is that this is something that in the past we haven't given is a specific timeframe around what that model, around when we would expect to execute against that model. We are saying here that we would expect this as a five-year model. A five-year plan, 2027, we would expect to move towards these results. There's some that's changing here, some that's not as different. We're keeping the same bottom line, but we really think that the mix that we had within those numbers did not make as much sense. Given that we have a lot of different solutions, a lot of different geographies that we thought that the sales and marketing and that go-to-market spend in the old model didn't make as much sense for us. We really thought that that was undercutting what it was going to take for us to move forward and execute in all the areas where we wanted to. We have adjusted that upward. As we look at R&D over time and as our revenue grows, we do think that that will continue to come down as a percentage of revenue. We're still going to see growth, of course, in our R&D team because our platform is very important and we know that's going to be how we execute and win over time, is relying on that platform to deliver to our customers everything that they need. We did bring that down, though, over time because we think that as our revenue growth, as we grow as a company, as we become a larger company, this seems to make more sense for what we thought would be the result that we could expect. A small adjustment on G&A. At the top of the model here, you can see that we really do anticipate that our subscription and support revenue will continue to increase as a percentage of the whole. I think we talked about this a lot with all of you already, but just to reiterate, those partner relationships that we value so much, we also expect that over time, more and more of just the consulting that we would potentially do for customers would go to partners. The services that we're going to keep doing will be those XBRL tagging services, XBRL services of all forms. We think that it makes the most sense for us to keep those in-house. A lot of those other big projects, implementation projects, where we can get a partner engaged, help us to win better, help that implementation to go better, help to get our customers in the platform and using it better, that's going to be a way for us to win in the long term. We do think that professional services revenue as a part of the whole comes down over time. Then we did see a small change in our gross margin as well, related to that. Updated target margin model with a date of, you know, expectation around 2027 would be when we would be moving towards this. Hopefully everybody can take a look at this. I'm expecting a lot of good Q&A. Don't let me down. We can also look at some historical financial review just to see how we progressed over time in a lot of these metrics. You'll recall that, we did throughout the pandemic, lack of travel and just, being more efficient over that period, I would say not, we were really sitting back and we were finishing the platform, working through some things as a company. A lot of what Julie was talking a lot about and Marty was talking about, we did move towards non-GAAP profitability during that timeframe. At the beginning of the year coming into it, we talked about the investments that we were going to be making in ESG, in that go-to-market process, in the platform. We still believe very fully that that was the right investment to make this year. Going into next year, to reiterate what we had said at our last earnings call, we will be moving towards non-GAAP profitability on a quarterly towards the end of next year. All of that's going to start to lead towards this long-term target over time. We understand where to get leverage from our business. Erik talked a lot about it in EMEA, and where we are making some changes to really make that business work for us, and to bring better services, better product to our customers there. It's happening throughout North America and APAC too. We know that we have a lot of ability to grow this company. We have a large TAM to go after. As we execute on the strategy that Julie so nicely laid out, that's my favorite slide, actually, is that strategy slide. As we execute on that, we really feel that we'll move towards these numbers fairly naturally. There'll be some ebbs and flows, but we'll invest where we need to. We're always gonna be a company that if we see something as a great opportunity, we will invest in it because we know that over time, driving that revenue growth, and in the case of ESG in particular, we really still feel like getting in very quickly, finding a solution for customers around that issue, that it's going to lead us to the right results there around that solution. So that's what I had for everybody today. I think with that, well, non-GAAP reconciliation. These are non-GAAP numbers. Let's keep that in mind. If anybody wants to peruse, you can check out the reconciliation. It'll be available on the slides online. I'm not gonna go through that in detail, though. With that, I think we're moving towards Q&A. Is that right? Okay. Erik and I will share a mic, I think. I think we'll get Julie and Marty back up on the stage, and then we'll get going. Yes. Like to welcome everybody back up on stage. Thank you everyone for the fantastic presentation. For those here that are in person, strongly encourage you to go visit the exhibit hall, go to some sessions, go talk to our customers. You know, what you will see is what we presented here today. You know, this is real, right? There's the energy here around our customers. There's a lot of activity. Talk to our business partners. You know, do your own channel checks on that. You'll hear fantastic stories from our customers. For those of you online, please go visit some of our sessions, right? We have a lot of the sessions you can visit on the Amplify site today and tomorrow. Strongly encourage you, go see some of those customer sessions, listen to our partner sessions, see some of the product overviews. Really try to understand the Workiva story. This is fantastic momentum we have going on here. Again, strongly encourage you to go listen to that. With that, we are gonna open it up for Q&A. I see some hands already getting ready to raise in the room. Karen will be walking around with a microphone, so everybody get their chance. For those of you online, there's also a Q&A function on the top right. Submit those online. We'll try to get through those as well. All right, Karen, go for the first question here. Thanks. I guess the sound's still a little off. Andrew DeGasperi at Berenberg. I guess the first question I have, you clearly made a change in your European sales strategy. Yeah, hold just a second. Okay. Jill. Jill. Oh, turn that. Do you need this one? Just turn your log off on your belt. Oh, sorry. All right, try it again. Testing. No. Try this. Okay. Test. There you go. Better. So again, Andrew DeGasperi from Berenberg. The first question was on the European sales strategy. Clearly made a change. I guess the first question is: What didn't work in the previous strategy? Or as well as you thought. The second is, in terms of your plan to make the sales process more efficient using leveraging partners in that region, are you concerned at all about, first of all, any conflicts of interest that may emerge with your partners since a lot of that services business is very lucrative to them, particularly when you look at ESEF and ESG? Marty, you wanna start with the past? Sure. I'll start with the past. There were several factors there, frankly. Most of the issue there was we needed fresh leadership, and so we've changed most of the people out there at the top. You know, the strategy was we were trying to sell everything to everybody, and that was a mistake, and I own that mistake. I would also say that the whole COVID thing had a problem. We couldn't get over there. That was just a factor of what happened the last two years. I didn't go over there for 2.5 years, and so we were relying on a lot of you know, different ways of communicating, and when you get on the ground, it makes a big difference. Erik's been there, how long, Erik? Yes. Month after month now. Yeah. Pretty much 90% of my time there. The other thing that I think we realized is that, and this again was my mistake, is that centralizing things like marketing and sales back to North America, where we just had more track record and more experience, is already showing, you know, dividends already. You know, basically we realigned those people with their North American leadership. We put in a new GM that would orchestrate all that, Erik, and we're much more focused on the products we're selling. We've knocked that number way down in terms of solutions we're trying to sell in Europe. I think those are the major changes. What was the second part of the question? I'm sorry. The second part was really more on the future, efficiency. Are there any conflicts with partners? I'll toss it to Erik maybe on partner distribution. If you're going heavy on that, won't the partners be fighting with each other? Yep. Actually, the way to better coordinate is to actually plan with partners. The way we're going to market with the partnerships is not just enabling them to position Workiva as part of their solution, as we talked about earlier, but also actually doing joint planning. Segmenting the market in terms of where we co-sell with them, and which part of the segment where we deploy them as a managed services partner, where they're using the Workiva platform to deliver services to their clients. By doing so, as long as we're well coordinated, which we're doing right now, you know, there should not be the conflict with our partners. I think they're used to that too. I mean, in North America, they win some, lose some, because, you know, we have the same thing in North America, so we really haven't seen a big issue there. Once in a while, there's some competitive juices flowing, but in general, you know, partners have sort of their turf, and that's where they tend to live. Great. Thank you. Rob Oliver with Baird. Jill, my question's for you and maybe for the rest of you guys as well. Appreciate all the detail in your presentation. I wanna just start with the operating model changes looking out to 2027. Just one thing that struck me was that, you know, what you guys are seeing in terms of the gross margin benefits from the move more towards subscription and away from services, you know, you're not seeing the benefit on the bottom line because of the increase in sales and marketing over the previous target. Just wanted to understand your thought process with the operating margin target unchanged and sales and marketing as a percentage coming up. How should we think about that? Is this ESG opportunity more expensive than you guys initially thought? I know in some cases you've been hiring additional sales people. Just maybe help us understand, the costs associated with that opportunity. Thanks. Yeah. I'll start out, and then if anybody else has any other thoughts. I think that even within the old model, we weren't giving as much of a nod to the way that we were needing to execute on that go-to-market. It's not the same as a lot of other SaaS companies, and I think that we were trying to fit ourselves into that model. We have lots of solutions. We are growing organically, globally, and I think that that will change a little bit as we talked about with bringing more partners in. Honestly, it's not all just one solution. It's not that it's ESG is going to be expensive. I think that in general, just right sizing that cost to how we are going to need to grow as a company was a big piece of it, and thinking about all the solutions that we have to execute on, the different geographies, that's really how we were thinking about that. Good. Is there anything- I'd add some color. We're learning, you know, that's just part of what a management team goes through. Multi-solution, larger dollar deals, you know, take a different type of seller in general. I think that, you know, we're also learning that distribution internationally is a little more expensive. There's also a lot of uncertainty and the fact that, you know, we are trying to build more product-led growth into our product. You've seen those companies, what those numbers look like, right? There's more R&D and less marketing and sales. If you look at the real extreme cases of that, you'll see that profoundly. We're not sure exactly where we're gonna end up. I'll just comment on our R&D team. You know, our R&D team was focused for five years on a new platform. This last year, or in 2021, they were primarily focused on, you know, finishing some gap items, but also customer satisfaction. Now we're pivoting that sales team to all new features, you know, revenue, to reducing gross margin, because you mentioned that, you know, making support more efficient and effective. The last thing is, you know, product-led growth, making the product easier to use and more, you know, viral in terms of in the organization. People can try it easily. It's easy to get up and running, all those types of things. There's a lot of transients in our company that have a lot of potential upside. We like to put out a conservative model and think that over time, with all these things, we can even do better, but that's where we always start. Hey, Matt Stotler from William Blair. Thank you for taking the questions. I guess to start off with, and then I've got a follow-up. In terms of kind of the overall product investment strategy, right? Something you guys have talked about historically has been the expansion of the breadth of what you offer, getting to almost, you know, 20 productized use cases, probably more at this point, with customers using, you know, a lot more than that. In the context of what we're seeing today in terms of the deep investments on ESG and ESEF, the commentary around, you know, not being afraid to invest in incremental opportunities where they exist, and then the, you know, updated long-term R&D target, which is lower as a percentage of revenue, has that changed materially, right? Is it we've identified ESG, ESEF as being massive opportunities, so we're going to, you know, really focus here, and then, you know, continue to look for additional broadening in maybe a more deliberate way than we used to? Or any color around whether that, you know, breadth versus depth change from an R&D perspective will be helpful. Do you wanna take that, or do you want me to take it? Sure. I mean, I'll start out and say, keep in mind, again, we're a platform company. When we make enhancements to ESG, most of that is applicable to all of the solutions or a large number of them. We get a lot of leverage when we put in capability within the platform. That's important, and we're gonna continue to do that. The areas where we have large TAM, where we are successful, similar to Erik's strategy in EMEA, we are going to focus. Much of that R&D is not per solution, it is across the platform. Our platform continues to grow with capability. Again, that brings up all the solutions and keeps us. Yeah, I would add on to that what I just said a minute ago. I'll, you know, emphasize that again. R&D used to have one mission. Let's get the new platform built. Then their second mission was. Let's make sure everybody's happy, and we're not gonna lose any customers. Pretty simple mission, right? Then now the mission is. Okay, gotta keep the customers happy. We have to create more value to charge more for our products. That means more features and identifying how value is seen by the customer. It's about reducing the, or, I mean, increasing our gross margin, meaning reducing support costs. That's part of their OKRs now. Then finally, product-led growth. All that stuff is platform stuff for the most part, to echo what Julie's saying. It's all platform-related things. Now, there are two solutions that, you know, we are tacking toward a little bit in terms of where that R&D spend is. It's ESG and it's GRC, integrated risk. Both of those have what we feel to be very large TAMs and are just perfect opportunities for us right now. There is a slight tacking toward that, those two. In general, we're trying to build a platform, you know, and not build 10 solutions that sit by themselves. You know, I think that would be the very wrong thing to do. Julie's guidance on just building a platform is the right way to go. Yeah, that's very helpful. Then maybe just one follow-up and something, you know, we've talked about a little bit before, but, you know, we also get a lot of inbound on it from from investors, is how to think about, you know, how some of these new opportunities layer into the, you know, layer into revenue, layer into the model over time. I'd imagine that if you look at something like ESEF, you could probably use SEC as a little bit of an allegory for, you know, kind of penetrating that market or how that could play out. When you think about, you know, ESG or, you know, GRC, how is that different? How is that similar? And, you know, could things ramp structurally faster given that you now are a platform rather than being more of a single product solution? You wanna take that, or you want me to take it? Why don't you get started? I like to throw them to you as often as I can. You know, the ESG. Every human organization is gonna have to be concerned about that, not just public companies, not just private companies, not just government, NGOs, and everyone is gonna have to be worried about that. It's a really big TAM, and it's hard to predict how fast or slow that's gonna go. I think it's gonna go at a pretty good clip. The integrated risk one is a little different. Those tend to be bigger deals. We sell to bigger companies in general. You know, I think we'll get a good steady growth out of that. I don't think it's gonna be something that just explodes on us, if you will. Now remember, you know, we have one product line where we're at maturity for the most part. It's growing slower, and that's SEC. That's why we, you know, model the growth the way we do. Some of these new solutions are gonna grow much faster, some are gonna grow slower. We're always looking for stability from having those different solutions and the different, you know, operating margins in each solution, the different growth rates. When you have enough of them, you can, you know, predict pretty much what the blend's gonna look like. That's really the strategy in general. I think ESG and IR are the two that we're most bullish on in terms of getting substantial growth. ESEF as well, but and GSR, but those two are the bigger TAM and the longer runway. All right. Now weave in an online question quick here. This question comes from Mike Grondahl from Northland, and the question is: What should our takeaways on macro outlook be? You've mentioned global economy, capital markets, war in Ukraine. In general, what is your real look on macro outlook right now? Well, if I could see that, I wouldn't be sitting here, right? No, I mean, you tell me. I don't know what's gonna happen. Today was a surprise for me as well. I thought, you know, we were sort of over that hump, but apparently not. I will say this about our. First off, we have really reduced our expectations on cap markets, even into 2023. We're not expecting cap markets to come back. I know that eventually it'll be very, very strong again. There's so much backlog of private companies needing liquidity for their investors and their employees. There will be a day when we're smiling about cap markets again. I don't. You know, we haven't baked that into our plans at all for this year or next. We're assuming a very modest number there. Take that out of the formula. Anything there is upside from my point of view. The macro stuff, we're not seeing a lot of effect yet on the buying cycles of these different businesses. That doesn't mean if it gets worse, it won't happen. So far, there's been, like, one or two companies out of all the companies we deal with where we've heard, "Oh, we're gonna have a six-month pause on software buys," or something like that. When those start happening, the salespeople are screaming, you know, and you hear about it. I can only think of one or two that's happened since this whole thing. I think companies are still committed to transformation. They're committed to trying to lower their cost structure and reduce their risk. I think they are, and it hasn't gotten to the point where we've seen a big, you know, pull on the reins to stop that. Capital markets did have an outsized effect on us because it went from a big number, one of the biggest in history, to almost zero in about that much time. You know, that did hit us hard, but the good news is all the other solutions are doing well. Deal size is going up. We're seeing, you know, good opportunity out in the market. You know, I'm still optimistic and feel good about where the company is near term and long term, especially long term, you know, once we get through this economic situation right now. Even near term, I'm optimistic. Hi. Thanks. John Messina from Raymond James. Just two from me. First on the platform. From the slides, it looked like multi-solution customer growth was really strong in 2016 through 2018, and then again in 2020 through 2022. Can you maybe talk about what drove that growth in those two-year periods versus 2018 through 2020? I don't know. Do you have a good explanation for that, Jill? Yeah. SBL. Yeah. During the timeframe, that 2018, 2019, 2020, we were working through our solution-based licensing transition, and so that wasn't as much growth from multiple solutions, but growth just within the way that we were making sure that we were measuring value to our customers. If you look back at that timeframe, you'll hear a lot of the conversations that we had were around how we moved from user-based licensing to solution-based licensing during that time, and really focusing on the value drivers for each of our individual solutions for the customer base. It wasn't specifically called out as a price increase, but it did bring up the standard value of individual contracts without adding another solution or adding multiple solutions because it was a rebalancing of that overall pricing model during that timeframe. Yeah, there were a couple factors there. One was what Jill just alluded to, and when salespeople have an easy avenue, that's where they always go, you know. We were pushing and managing the customer through that new pricing, which has proved to be very good for us, value-based pricing or solution-based pricing has done a world of good for us because, you know, our value was not correlated to number of seats at all. It just wasn't. So we get some that were way undervalued, some way overvalued solutions. So that even though you can look at as a price increase, structurally, it actually did a lot of long-term good for us. The second thing was, remember, we were coming up on a customer transition. We're gonna be moving all of our customers, so we're telling the customer, "Get ready. We're gonna move all of you to a new platform. By the way, buy a couple more solutions." They all go, "Pfft. What are you talking about?" You know? You know, you have these structural things in your life cycle that you work through and get through. Trust me, building the new platform, moving all our customers without hardly any churn and, you know, our NPS is right back where it was before, that was a huge value add for the company long term. Even though you see the perturbations in those numbers you're looking at, we weren't trying to sell multi-solution deals then as much with a platform change coming, and we were managing that change to value-based or solution-based pricing. Correct? Yeah. A lot of big things happened the last five years, and that's why there's a lot of choppiness in a lot of things. Yeah. Yeah. Thank you. That's very helpful color there. I appreciate all the color on the new operating margin targets, but as we think about those 2027 target model there, does that still factor in the prior 2026 $1 billion revenue target? We still believe that, you know, we talked a lot about our expected long-term revenue growth. I mean, if you run the numbers, we do believe that that would still be directionally where we're headed from top line. Yeah. Obviously, the economy has something to do with this, right? I mean, if we come out of this in the next six months to a year, you know, we're in really good shape to reach the goals we've talked about. If not, it might take a year longer. I don't know. Yeah, we're still directionally wanting to grow as fast as we can and get bigger as fast as we can. You know, one of our goals now is to get over $1 billion. You know, when you're a SaaS company, this life cycle thing, you know, first goal is to get over $100 million. You feel like you're in rare air, you get over $100 million. Then the next goal is $500 million. You know, we feel really good. We got there in our run rate right now, and we're very proud of having achieved that through all the crap we went through. Sorry, that was not a very technical term, but you know what I mean. Now we're at a different point in our life cycle. We have our new platform, you know, and $1 billion is the next step. You know, when you get to $1 billion in revenue as a SaaS company, you're in rare air. That motivates everybody in our company. We wanna be viewed as this Midwest SaaS software company that always had the Rodney Dangerfield point of view, you know, 'cause we're from the Midwest, and we wanna kick butt and show we can be as good as any of them. Yeah, $1 billion is a target that we talk about all the time. When we get there, we're gonna pick the next target. There's always a target in our people's minds of where we're trying to get to. While we're waiting here, I got a question for online. Jill, this is specific to you. There is no specific name given for the person asking the question, but the question is: In 2021 Investor Day, you outlined stock-based comp would be 12% of sales in your long-term target. For your 2027 goals, what would be stock-based comp? We think that'll still drive towards that, around 12%. That's not really gonna change. We didn't reiterate it on the model. Yeah, we do think that that's still in line with where we expect long term that to sit. Yeah. The only color I'd add there. Sorry to cut you off. The only color I would add there is that, you know, this software industry is a very lucrative industry. You know, and because of that, and everyone's seen the wealth that's been created there, retaining high-level talent is just structural now. You have to have a, you know, a RSU program to keep the very best people in the company. It's just the way it is now. To Jill's point, I don't think we're gonna see a lot of change there, in the industry as a whole, you know. That's a pretty typical number, I think, across. That's what I've been told. That's a pretty typical number across most software companies now at our point in our life cycle. Andrew DeGasperi from Berenberg again. I guess I wanted to discuss ParsePort a little more. I don't know if this question is better for Julie or Erik, but when you think about the customer base is obviously relatively smaller relative to the organic Workiva, and I was just wondering, you mentioned upselling and cross-selling as part of the strategy. Do you have any specific products in mind that you're attempting to push into that cohort of customers? And are you gonna potentially change your pricing strategy when it comes to that customer base? Go for it. Yeah. Actually, that's part of the alignment, the global excellence and the alignment across our sales teams that Julie talked about earlier, and we're applying between ParsePort and Workiva. The roughly 900 logos that Marty talked about earlier with ParsePort, we have a prime opportunity to upsell the Workiva platform because ParsePort has opened the door already with the public disclosure for those European companies. Public disclosure, as we talked about earlier, with the corporate reporting as end-to-end. It's just one part of that reporting, corporate reporting process for European companies. It gives us, with partners, a great opportunity to sell the platform with ParsePort as part of the Workiva family of solutions. We are working together closely with the ParsePort team to segment that market, to make sure that we can actually go after that together and figure out where, which part of their logo base is primed for upselling the platform. I was gonna say, we also expect ESEF to get more complex over time. As we do see that, we'll see potentially some transitions to our broader platform as well. The platform ESEF and certainly ESG, along with ESEF, will come together as well. That's another one that we'll be moving towards sooner rather than later. You know, it's with GDPR, it's just harder to get into European companies than it is. I wish we had something like that when I look at my inbox of emails every day. Having access to those companies. We'll try to sell everything to them, but the most natural thing we're gonna see is a platform solution for ESEF, as Julie mentioned, and ESG is right behind it. That's the primary thing we see. We're also going to, if people stick with a bolt-on solution, we're gonna slowly raise that price, too. That initial price was a logo grab price like we did when we were starting, and ParsePort, you know, was early in their life cycle. There's opportunity to just even the bolt-on solution to raise that price as well. You know, when XBRL tagging is required for ESG, you know, they. What is it? 40,000 companies left to report in Europe, Mike? Yeah. Most of those will look for a bolt-on solution day one, so that's another part of the strategy there. Hi. Great. Thanks. Steve Enders with Citi. I guess if we think about the GRC and ESG investments that you're making, how does the personas that you're targeting, you know, kind of change versus the more traditional audit and accounting side? And how do you kinda think about this augmenting the go-to-market strategy to better target those individuals? Whatever. Well, we are with partners with our own go-to-market strategy. We're going broader within the organization, certainly within the office of CFO, as I mentioned on the conversation I was just in. We're going across the organization. When you think about the solutions together, like ESG and controls, those things go together. We're targeting the specific buyers, but we're also looking more broader across the organization. They're entering those conversations themselves. I mean, we had an ESG executive summit here, and there are people who are in the sustainability, but they're also the controller's office. They're also heads of compliance. We're seeing multiple functions looking at our platform, not just single buyers for a specific solution. We're seeing that with more and more frequency. You know, I think that, as you mentioned, the go-to-market, to Julie's point, I mean, remember, we started selling a $25,000 a year product on a quarterly subscription. That's where we started. Now we have half our customers on a three-year contract. Our deal size is, what? 80-ish, mid-70s. So we went from $25,000 - $70,000. Another goal is to get our average deal size in the six figures. Different sellers, different motions, but, you know, we're learning and we're getting better. To Julie's point, she's really pushed the multi-solution, get as many people in as a meeting as you can, and they start to see that they should all use the same platform. You know, there's an industry trend right now. I feel it. We have over 200 SaaS apps in our company. Drives me crazy. I would love to have that be 20 or 30 platforms and just do everything on. You know, then you don't have to have so many people maintaining SaaS. You don't have to have so many people learning it and training everybody. We're seeing that trend when we're selling, you know. Oh, an IR platform? Instead of having point solutions to do all my GRC, that's attractive. We're learning to sell to a roadmap. We're learning to sell, you know, bigger visions. It's a work in progress. Some sales. So- Go ahead. Sorry. Go ahead. No. I was just gonna say, it's also one of the reasons partners is so important and critical to us. Yeah. When we're with partners, we expand our solutions to the accounts, and we also sell broader. That's a big part of our go-to-market strategy. While we wait for the next question here in the room, I have a question. It's a product question online here. Erik Saito, I'm actually gonna direct this to you. Question is, in many countries, PDFs are the primary format for financial document submission. What technology challenges do you face when trying to work with static formats like PDFs, and how much do you rework your U.S.-based solution based on submission either in PDF or HTML? How are you dealing with all the design reports in Europe and all the different formats you see in those countries? Yep. There's two things there. One is now that we have the ParsePort solution, they're able to tag the finished report, right? The PDF finished report. That's one big advantage that we have now that we have ParsePort as part of our product family. The other thing is you mentioned design agencies. As I mentioned earlier in the corporate reporting, there's the front end of the integrated report in for European companies that are heavily designed, particularly for the larger companies, where the ESG report and the corporate governance report is reported in the company. We're continuing to invest in our product, the design capabilities of our product to not only within the platform for companies to be able to utilize our platform for more of the design capabilities, but also with integrating with design platforms that the design agencies use. We're continuing to invest in that, and that ability will make it easier- and- easier for the stakeholders that control the front end of the integrated report and the design agencies that they work with to use Workiva as an end-to-end platform. Hi. Great. Thanks. Rob Oliver from Baird again. I have two questions. The first one, Erik, will be for you, and the next will be for Marty and Julie. Erik, so just really appreciated all the color in your presentation around not just revenue but also on operating leverage. You talked about some of the changes you made to the sales force, and I think implied in that was quota changes as well. Just be curious to hear from you, what is the state of the sales force over there in Europe, in EMEA right now? Is the headcount right? Is it what it needs to be, and has there been any turnover related to the new regime and the operational changes that you have brought in? I can pause on the second one or just I'll wait. Yeah. I think the more important thing about the changes that we're making is, to Julie's point about global excellence, we centralized the functions, including sales. What that did is it enabled us to be much more efficient in leveraging the global resources and processes so that we're not reinventing the wheel in EMEA. That's one big change already. And then the second thing is we're making a lot of changes in Europe not just the sales team, but the solution sales, account ownership teams to make sure that we're actually able to get more efficiency, more productivity out of the sales team in how we go- to- market. That's where the partnership go-to-market comes in, so that we can actually increase. When we co-sell with partners, when we're sourcing opportunities from partners, we're able to sell at a higher win rate, larger more, you know, larger deal size, multi-solution plays. That in itself will increase our leverage, right? The existing resources, we can get more top-line growth out of that. Great. Thanks. The other question is for you, Julie, and for Marty. Just around the acquisition strategy, Marty, I think you said maybe you were very active in the market right now, looking for solutions, and it's still a relatively new motion for you guys, but it's one I think you now have four under your belt, and it's been a bit of a mix. You know, to give it, there's no pattern. I think it's some have been, you know, enhancing capabilities you have, others have been sort of either defensive or sort of geographic acquisition, acceleration type buys. How should we think about being that you're so active in the market? Is there a way for us to think about how that acquisition strategy may evolve? Thanks. Primarily, we're looking still for tuck-ins. I mean, we're looking for technology and teams, potentially access to customers. I think the reality of, you know, buying a company with substantial revenues, you know, in terms of our ability to do that, both from a capital point of view, having the money to buy them, and from an operational point of view, knowing how to integrate them, I just don't think we're ready for that yet. We're gonna continue to do small things and primarily along the same lines we have, increase, you know, increase our technology, maybe look at access to logos, things like that are more strategic with high leverage and not, you know, trying to roll up revenue with some leverage associated with that. Our pure platform right now is such an advantage, and if you buy a big chunk of revenue, all of a sudden, a whole bunch of your time is spent trying to integrate two products or support two products or, you know. I would be very happy if we get to $1 billion and everything's still running on our same platform. That's a huge operational long-term advantage. I was going to add, our corporate development team, Mike, continues to scour for, you know, what's out there for, acquisition targets. I do think there might be a capability we might acquire. Something like the OneCloud that brought the platform up is something we might find too. In addition to the logos Marty's talking about or, I do think there's a chance we might do that. We again, the capabilities we wanna be able to integrate, we want it to be, something that levels up the entire platform, or it closes a particular gap or brings in a feature. Yeah. I just wanted to clarify on the word active. That is the other half of my job, is in the corp dev side. I mean, active, you know, it's interesting as you're probably well aware, right, given, you know, valuation changes like that, there's a lot of inbound activity we're now seeing. Part of that, just to let the investment community know, right, we review everything, right? We will look at everything. We will take a first pass look at everything to see if there's a fit. We will run it against our screening criteria. That is a lot of what the activity is now. We also do go and look at the outbound as well, right? There are, you know, with our solution owners, we We'll have a list for each of them and go look and figure and have conversations and get involved early and, you know, and all sorts of things. Activity is not so much, you know, 10 deals sitting in the pipeline. It is really us scouring the market to make sure that we're not missing anything, that we're always looking at a thing, and we're gonna be on top of, you know, finding that right opportunity. I think the one other thing that we often talk about is, you know, from a strategy perspective, you know, as you saw in the TAM, right? We're not looking for TAM expansion necessarily from an acquisition. We don't believe we need that. We are looking for TAM accelerators. That's really kind of the guiding principle for us in everything we look. Now, that being said, if some fantastic opportunity, you know, crossed our plate that we thought was adjacent enough and made sense, obviously, we're gonna take a look at it, but right now the focus is really on TAM accelerators. Hey, Matt Stotler. One more from me. You talked a lot about the average ACV, and I thought that, you know, what you showed in terms of how it's progressed over time and each cohort is very helpful. Obviously, looking at the 300,000+ ACV cohort and the average there being actually 600 kinda speaks to the upside opportunity. I think the punchline here to the question I'm about to ask is probably that, you know, 75% of the customer base is still under 100,000. How do you think about, you know, especially at the enterprise level with these larger customers, potential customers, what is the upside there in terms of ACV? What's kinda the fully baked potential opportunity there, if you will? Within that 75%? Within, I guess, across the customer base. Okay. I can start on that. Julie, if you have any thoughts, feel free. We think that we have a very large opportunity at many companies. Certainly with our larger companies, we do tend to have the. That's what's really driving that 300,000 +, that's the 600,000 average ACV metric that you mentioned. But we think that across our customer base, even for companies that are maybe not that large, they can still take advantage of a very wide swath of our solutions within their business. It's just a matter of us finding the right message to show them what that value would look like. I think that our average deal size or average revenue per customer continues to grow. We think that will continue to happen because of all this multi-solution activity that we're driving, because of the new logos that we're pulling in with that have multiple solutions, larger deal sizes. I don't know that we would provide a specific target per the question, but I mean, I do think that you'll continue to see that grow. I don't. Julie, did you have anything else you wanted to No. I mean, that is the strategy, right? We wanna have five solutions in each of the customers that we have. That is, that is it. Just expanding accounts, you know. That's what it is. We see a lot of headroom for growth on ACV. On the Fortune 500, let's say, I expect us to at maturation be, you know, over seven figures and sometimes multiple seven figures. The really, you know, the Fortune 50 would be multiple seven figures, and I can see some of the big banks getting, you know, bigger than that. Yeah- I was just gonna say, we, you know, but, you know, the long-term strategy, that's, you know, that's what it's all about. We wanna get into IT. We wanna sell platforms to whole organizations. We wanna get ELAs that are, you know, re-upped every two years based on some metric. Have, you know, product-led growth living inside those organizations, so more and more people jump on it to do more and more stuff, and that's how you grow your ACV and those big customers. That's, you know, we're just at the beginning of that journey. We do have an online question here from Brad Reback at Stifel. The question, I'll throw this one to you, Jill. As we think about the progression to the 22% 2027 operating margin target, will it be fairly linear over the next four and a half years or more back and loaded? I would say that we will not move towards any one of those numbers in a direct line. That's just not how the economies, I'm sure, across globally will go. We will certainly have, in the next five years, other opportunities for investment that might have us, you know, look at some different things. I would say that, to the question, it won't be linear just because we're living in a world of change, and we will, I think Marty, Julie, everybody's already said this, but we'd like to learn as we go, and we will certainly learn things throughout those five years that will have us continue to ebb and flow as needed, but still moving towards those long-term goals. I wouldn't say that we would expect it would be a direct line. I think that we'll get there over time, and we'll continue to make good progress. We will take advantage of opportunities as they arise. Marty, did you have anything else you wanted to Yeah. I would just say we are focused on those numbers, and we're gonna try to drive to get there. Whether it's straight line or not, it's not some bunch of numbers we're throwing out there in the five-year thesis that we're gonna ignore. We're gonna try to get to those numbers. That's our internal goal, and I'm not sure how long it'll take, but we're looking at margin every quarter, every year, every two years. You know, it's gonna be something we work on all the time. Hey, Kyle Aberasturi, BMO. Thanks for the question. Another question on the long-term targets. Do you have any insights around the revised 8% growth rate on the professional services? Hopefully I didn't miss it, but was there a change in strategy or I guess why isn't this growing as fast as previously forecasted? The 8% would be that we think that over time we'll move towards professional services being 8% of revenue. That does, we think, trend downward just because we're continuing to grow that top line, growing that SNS revenue. A lot of what we talked about otherwise with partners, we do think that more of our implementation and consulting and set up revenue will start to go towards partners as they develop their programs, they get up to speed. We do think that more of that business will move towards those partners. We actually want them to do that because it helps us to, as I think I mentioned this before, but it helps it be a better sale. It helps the customers be more engaged. It helps their using the product, and it's a good relationship with those partners. Yeah, I mean, we have a funny piece of. Not funny, a really good piece of recurring service revenue. That's our XBRL tagging. That's almost different than the other revenue, which is, you know, more about standing up new customers and doing projects for them around our platform. That second part, not the XBRL, because that reoccurs and has a real nice margin. The second part, I would just assume went to zero. I mean, because that means I'm stealing Julie's thunder here. That means partners are doing it all. That means we're getting more dollars. We're focusing more of our investment in our software and building SNS off the software. So, yeah, I mean, I'm seeing that decline as growth rate decline, doesn't bother me in the least. It makes me feel better. Yeah. Thanks. Joe Meares from Truist. Yesterday, one of the breakout sessions, the head of ESG at one of your customers mentioned that among the Fortune 500, she believed that about 25% were actively working on ESG, 50% were in kind of like a wait-and-see what the regulation is gonna be like, and then, 25% were like, not gonna do it until they were dragged kicking and screaming. Do you believe in that breakdown? If you do you see like a step function of growth when the regulation comes from that 50%? Just curious how you're thinking about that. I don't believe in those percentages per se, because we've been in on sales cycle, you know, talking to our customers. We've talked to more than half our customers, let me put it that way, already about ESG or right around half. I know the number that the decisions being driven by the board and the capital flows and the consumers, that's where the pressure is coming from right now. That number is bigger. There is a percentage that will be the kicking and screaming. There is a percentage that is gonna wait and see. There's no doubt. When that regulation comes in, yeah, that will be an uptick for us. When there's a hard regulation, we always see, you know, very good growth in that, whatever that regulation is. I think that's there. I have no idea when it'll happen. You know, the court system is even in play now, right? Anything that does come out the SEC will be in front of the courts within a few months, and we sort of know where that ends up. But luckily, I know this. We're a tech company. We don't have a big greenhouse footprint. I'm getting so much pressure from my board to get to net zero, you wouldn't believe it. That's happening in many, many boardrooms. Boards are worried about the reputation of the organization. They're worried about, you know, being a good corporate citizen. You know, they're worried about a lot of things. Most of this pressure is gonna come from you know, capital flows, boards, and then ultimately consumers. There's a big group of consumers that aren't gonna buy stuff from bad corporate citizens. That's just clear. Andrew from Berenberg again. I just one question on multiyear contracts versus annual. Just wondering, where do you see that mix moving to, particularly towards these targets that you laid out? Secondly, on a free cash flow basis, just wondering, should we expect free cash flow to move ahead of operating margins like you've done in the past? Thanks. I would say on the. Go ahead. The first question was around the length of contracts. We would like to move more customers towards that three-year contract length. Generally, and we've talked a little bit about this, but it's three years with annual payments. We think that locking in the customer for those longer deals makes a lot of sense for us. It gives us room to move. It gets us in the door and able to have conversations with more users at those customers. We think that it gives us more ability to execute on that strategy, actually. We would prefer to move towards those three-year agreements. Anything on that before we step into. Yeah, I would add that, we're starting to see the rate of acceptance dropping. So I think we'll get to, you know, we'll be well over 50%, but I know we're not gonna get, you know, we're not gonna get near 100% either. There's just a certain amount of companies that wanna do a one-year deal, and that's it. I can't project where it's gonna be. Could it be 75%, 70%? I don't know. Jill hit it spot on. We just like the stability of a three-year contract. There's no buying moments for the customer until, you know, you have plenty of time to. It's all good. What was the second part? That's back to me. Second question was free cash flow margin. The way that you know the customers are paying up front, so yes, we will still get ahead of cash will still be very positive for us. We continue to focus on cash flows as something that we take very seriously, keeping cash flow positive. I would expect that you'll see this similar trend into that model period as what we already have because it's a similar flow of the cash flows related to the contract so. We are reaching the top of the hour. Maybe room for one final question in the room if there's any? Final question in the back. Hi, John Messina from Raymond James again. You gave some color around the strong GRC customer growth. Can you maybe put some numbers behind that, what you're seeing or expecting from integrated risk, given that you've called it out as being one of your larger opportunities there? Can you maybe talk about the main use cases that you're seeing for integrated risk? It's yours first. Certainly, SOX has been one that is our largest selling solution now. We are also seeing audit. As I mentioned earlier in the comments, GRC is the top selling bundle that we sell within that suite that we offer, the multiple solutions within the GRC suite. Those are the top selling three solutions, probably SOX, audit, ERM, enterprise risk management within the suite. I would add that's where we wanna go. I mean, yeah, SOX and audit has been a strong solution, but where we wanna go is selling a platform with a roadmap and saying, "You can do all your GRC stuff in this eventually," and have that single platform and have a high dollar, you know, total coming out of that customer around IR. And I think that's becoming what the customer wants, you know. In terms of numbers, we don't talk about that by solutions. That would be a can of worms that would never end for us. You guys are so good at asking questions, it would never end. It is gonna be in terms of, you know, new sales, it's gonna be one of the top two, moving forward every quarter, in my opinion. I believe it'll be the top two. I gotta always use that believe word, right? Okay. Well, that concludes our Q&A session. Thank you very much for everyone here in person. Thank you to all those that joined us online. We will have the slides posted later today, so please look out for those on the Investor Relations website. With that, this concludes our live stream. Thank you.