Will the New Initiatives Improve Workiva (WK)’s Profitability?
TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the quarter the fund returned 9.15% (net), compared to a 12.75% return for the Russell 2000 Growth Index. For the year, the fund returned 15.96% (net) compared to 18.66% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
TimesSquare Capital U.S. Small Cap Growth Strategy featured stocks like Workiva Inc. (NYSE:WK) in the fourth quarter 2023 investor letter. Headquartered in Ames, Iowa, Workiva Inc. (NYSE:WK) provides cloud-based compliance and regulatory reporting solutions. On March 21, 2024, Workiva Inc. (NYSE:WK) stock closed at $84.69 per share. One-month return of Workiva Inc. (NYSE:WK) was -3.18%, and its shares lost 13.93% of their value over the last 52 weeks. Workiva Inc. (NYSE:WK) has a market capitalization of $4.635 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Workiva Inc. (NYSE:WK) in its fourth quarter 2023 investor letter:
"Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, and systems that improve productivity or efficiency for their clients. Posting a 0% return—lagging the benchmark sector average of 14%—was Workiva Inc. (NYSE:WK), a leading cloud-based compliance and regulatory reporting platform. Workiva’s revenues exceeded expectations, though its earnings were lower because of a one-time interest expense. The relative share price weakness stemmed from management’s conservative guidance for its final fiscal quarter that incorporated the uncertain macroeconomic environment and Workiva shedding some low-margin businesses. Meanwhile, the company signed new customers and released updates to current financial reporting systems that should lead to better margins and further improve Workiva’s profitability."
A software engineer debugging a compliance code on a laptop in a modern office setting.
Workiva Inc. (NYSE:WK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Workiva Inc. (NYSE:WK) was held by 20 hedge fund portfolios, compared to 27 in the previous quarter, according to our database.
We discussed Workiva Inc. (NYSE:WK) in another article and shared the list of top most valuable data companies in the world. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
