Managing a large-scale organization is no easy feat, particularly for leaders responsible for supervising hybrid teams spread across the globe. Gathering essential information for executive or regulatory reports often means sifting through data from numerous digital tools, turning the process into a lengthy and complex ordeal.
Workiva ( WK -3.58%) has introduced an innovative platform that integrates a wide range of productivity, storage, and financial tools used by employees daily, allowing managers to conveniently access all required data in a single location. The company is now enhancing this platform with artificial intelligence (AI) to further boost its capabilities.
Workiva’s shares have dropped 49% from their all-time high in 2021, a period when tech stocks were valued at unsustainable levels. Yet, considering the company’s latest performance and its vast potential market, here’s why investors may want to consider buying at current prices.
Image credit: Getty Images.
Meet Workiva AI
After managers import data into the Workiva dashboard, they can quickly assemble reports using a variety of pre-built templates. However, since each organization has unique needs, these templates often need some customization. Previously, managers would make these changes by hand, but now they can rely on Workiva AI, a new assistant powered by artificial intelligence, to handle much of this work.
For instance, if a compliance manager needs to prepare a cybersecurity disclosure for their company’s quarterly SEC filing, they can type a custom prompt for Workiva AI to instantly generate the required statement, or browse Workiva’s prompt library for a template they can adapt to their requirements.
Managers are also able to use the Workiva AI chat feature from anywhere within the platform whenever they need assistance with a particular task. Since the chatbot is already familiar with all the organization’s uploaded documents and data, it can offer helpful insights on demand.
Workiva’s revenue growth picked up last quarter
In the second quarter of 2025 (ending June 30), Workiva reported total revenue of $215 million. This marked a 21% year-over-year increase, up from the 17% growth seen in the previous quarter.
This performance was fueled by two key factors:
- Workiva’s net revenue retention rate climbed to a multi-year peak of 114% for the quarter, indicating that existing clients spent 14% more on the platform compared to the previous year.
- The number of customers with annual contracts worth at least $100,000, $300,000, and $500,000 rose by 27%, 37%, and 35%, respectively.
Over the past four years, the count of customers with annual contracts of $100,000 or more has grown at a compound annual rate of 30%, underscoring the platform’s value to large, complex enterprises. Workiva now serves 2,241 such clients, making up over a third of its total 6,467 customers.
On the heels of its strong second-quarter results, Workiva raised its full-year revenue outlook from $866 million to $871.5 million (at the midpoint).
Workiva shares are attractively priced
At its 2021 peak, Workiva’s price-to-sales (P/S) ratio hovered near 20, a level that couldn’t be maintained. Since then, the stock has fallen 49%, and with steady revenue growth, the P/S ratio has dropped to a more reasonable 6.1.
This is actually below Workiva’s average P/S ratio of 7.3 since its 2014 IPO:
WK PS Ratio data provided by YCharts
Given Workiva’s current momentum, I expect its P/S ratio to rise from here, potentially surpassing its historical average if revenue growth continues to accelerate. Additionally, Workiva has only begun to tap into its estimated $35 billion total addressable market.
Therefore, this stock could be a smart addition to investors’ portfolios at this time.
