Workiva (WK) risk factors, FY2024 10-K

Risks Related to Our Business and Industry

1. 01We derive more than 40% of our total revenue from customers using our platform for SEC filings
2. 02We cannot accurately predict subscription renewal or upgrade rates
3. 03Failure to manage our growth may adversely affect our business or operations
4. 04Our revenue growth rate in recent periods may not be indicative of our future performance
5. 05We have not been profitable historically and may not achieve or maintain profitability in the future
6. 06Our quarterly results may fluctuate significantly
7. 07Legislative and regulatory changes could adversely affect our business
8. 08Recent executive orders and actions, and potential forthcoming executive orders, including orders regarding government contracting requirements, affirmative action compliance, and other requirements, may increase our compliance costs and risks and could impact our and our customers’ businesses
9. 09Our solutions face intense competition in the marketplace
10. 10Our revenue growth will depend in part on the success of our efforts to augment our direct-sales channels by developing relationships with third parties
11. 11Adverse economic conditions or reduced technology spending may adversely impact our business
12. 12If we cannot maintain our corporate culture as we grow, we could lose the innovation, teamwork, passion and focus on execution that we believe contribute to our success
13. 13We depend on our senior management team and other key employees
14. 14Our workforce is our primary operating expense and subjects us to risks associated with increases in the cost of labor
15. 15Operations outside the United States expose us to risks inherent in international sales
16. 16A significant fluctuation between the U.S. Dollar and other currencies could adversely impact our operating results
17. 17Geopolitical conflicts, including the conflict between Russia and Ukraine and the conflict in the Middle East, may adversely affect our business and results of operations
18. 18Fixed-fee engagements with customers may not meet our expectations if we underestimate the cost of these engagements
19. 19If we fail to continue to develop our brand, our business may suffer
20. 20We may need to raise additional capital, which may not be available to us
21. 21We have acquired, and may continue to acquire, other companies or technologies, which could divert our management’s attention, result in additional dilution to our stockholders and otherwise disrupt our operations and adversely affect our operating results
22. 22Because we recognize revenue over the term of each subscription, downturns or upturns in sales may not be immediately reflected in our operating results
23. 23We are subject to general litigation that may materially adversely affect us
24. 24A failure to maintain adequate internal controls over our financial and management systems could cause errors in our financial reporting
25. 25Our relatively limited operating history makes it difficult to predict our future operating results

Risks Related to Technology and Intellectual Property

1. 26We face continually evolving cybersecurity risks, which could result in the loss, theft, misuse, unauthorized disclosure, access, or destruction of confidential information or data, disruption of our solutions, damage to our brands, reputation and relationships with customers, legal exposure and financial losses
2. 27The success of our cloud-based software largely depends on our ability to provide reliable solutions to our customers
3. 28Any failure to offer high-quality technical support services may adversely affect our relationships with our customers
4. 29Failure to establish and maintain partnerships that can provide complementary technology offerings and software integrations could limit our ability to grow our business
5. 30If we do not keep pace with technological changes, our solutions may become less competitive
6. 31Issues relating to the development of AI, machine learning and other technological capabilities in our solutions and offerings may result in reputational harm, liability and adverse financial results
7. 32If we fail to manage our technical operations infrastructure, our existing customers may experience service outages, and our new customers may experience delays in the deployment of our solutions
8. 33The inability to maintain software licenses, or the existence of errors in the software we license could result in increased costs or reduced service levels
9. 34Any failure or interruptions in the internet infrastructure, bandwidth providers, data center providers, other third parties or our own systems could negatively impact our business
10. 35Changes in laws and regulations related to technology, the internet or changes in the internet infrastructure itself may diminish the demand for our solutions
11. 36We are subject to U.S. and foreign data privacy and protection laws and regulations as well as contractual privacy obligations
12. 37Any failure to protect our intellectual property rights or defend against accusations of infringement of third-party intellectual property rights could impair our ability to protect our proprietary technology and our brand
13. 38Some of our solutions utilize open source software, and any failure to comply with the terms of one or more of these open source licenses could negatively affect our business

Risks Related to Taxes

1. 39The adoption of new tax legislation could adversely affect our business and financial condition
2. 40Determining our income tax rate is complex and subject to uncertainty
3. 41Our ability to use our net operating loss carryforwards to offset future taxable income may be subject to certain limitations

Risks Related to Ownership of Our Securities

1. 42Our stock price has been and will likely continue to be volatile or may decline regardless of our operating performance, including due to factors outside of our control
2. 43If there are substantial sales of shares of our Class A common stock or some or all of our convertible senior notes are converted and sold, the price of our Class A common stock could decline
3. 44The dual class structure of our common stock concentrates voting control with certain of our founding shareholders
4. 45Anti-takeover provisions in our charter documents, our convertible senior notes and Delaware law could make an acquisition of us more difficult, limit attempts by our stockholders to replace or remove our current management and may negatively affect the market price of our Class A common stock
5. 46We do not intend to pay dividends for the foreseeable future

Risks Related to our Indebtedness

1. 47The conditional conversion feature of our convertible senior notes may adversely affect our financial condition and operating results