Hello everyone, and welcome to Workiva's Virtual Investor Day. We hope you are staying safe and healthy. For those of you who don't know me, I'm Adam Terese, Director of Investor Relations and Corporate Development here at Workiva. We're excited to have you here today to hear from our executive team. Before we get started, here's our safe harbor statement. During today's event, we'll be making forward-looking statements regarding future events and financial performance. These forward-looking statements are subject to known and unknown risks and uncertainties. Workiva cautions that these statements are not guarantees of future performance. All forward-looking statements made today reflect our current expectations only. We undertake no obligation to update any statement to reflect the events that occur after this webcast.
Please refer to the company's annual report on Form 10-K and subsequent filings for factors that could cause our actual results to differ materially from any forward-looking statements. During the course of today's call, we will refer to certain non-GAAP financial measures. Reconciliations of non-GAAP to GAAP measures may be found in the presentation posted to our investor relations website at investor.workiva.com. Let's move on to the agenda.
We'll start with Marty Vanderploeg, our CEO, who will dive into our next generation platform, followed by Julie Iskow, our COO, who will discuss how we think about our growth strategy. Stuart Miller, our CFO, will provide a financial update. To wrap things up, we'll have Mike Rost, our Head of Partners and Alliances, discuss partnerships, followed by Paul Volpe, our Head of Growth Solutions, who will do a deep dive on our Global Statutory Reporting solution. At the end, we'll have a live Q&A session with the presenting team. If you would like to submit a question, please use the Q&A field that appears on your screen. With that, I'll now turn it over to our Chief Executive Officer, Marty Vanderploeg.
Thank you, Adam, and thank you all for attending our Investor Day today. We're really excited about what we have on today's agenda and appreciate you being here. I'm going to focus on our next generation platform. You've heard me talk about that in the past, in passing, but in the last call, we really leaned in, and today we're going to talk a lot about it. Before we do that, I would like to talk a little bit about our mission statement.
This really resonates with our employees and our millennials. Everybody lived through 2008 and saw what happened when good information was not available. We really, as this says, want to build trust in our global economy and through what we're really good at, transparent data and connecting reporting. What do we do as a company? We actually simplify very complex work.
Our platform is designed to connect to back-end systems. It's designed to enable workflow, connect numbers within the system, and collaborate over a global collaboration with your teams. It's really what we feel is the next generation of doing complex work. We'll talk about that. Julie will allude to that in the growth sector of this conversation. Our next generation solution we're very enthused about. We began coding in 2014. It's a big undertaking. It was born in the cloud, as all of our solutions have been. Single instance, multi-tenant, built on AWS and Google Cloud Platform. The big difference was we went to a microservices architecture, and I'll talk about that a lot. Microservices architecture lets you interact with the system through APIs.
You can design pieces of functionality or pieces of software, plug it into the system without disturbing the rest of the system if you go through the APIs, which you must. That architecture allows rapid deployment of new features, lets you re-architect single microservices. We currently have 170 microservices managed on our platform through Kubernetes, all interconnected. We also have open APIs, so we can obviously get data in and out of the system.
We have some out-of-the-box system integrations for some of the more common back-end systems. We're extremely excited about what we can do with this. The first thing it enables is our innovation. The containers, like I mentioned, enable fast deployment. A developer can create another service and just interact with all the other services through open APIs. That means we can deploy new solutions faster, more efficiently, without disturbing the rest of the system.
We're opening up more and more APIs for our third-party providers. Initially, just for data in and out, but ultimately to also develop other applications on top of our platform. Finally, we've heavily instrumented the platform so we can understand how our users are using it, how they're interacting with it. Enables us to streamline areas that are heavily used, create new features to facilitate any areas where customers spend a lot of time, and really understand where customers are getting the value out of all of our different solutions that sit on our platform. This innovation thing is really huge for us. It just enables us to go so much faster in a more targeted fashion, and much more efficiently. Just extremely important to understand this. It also enables our growth strategy.
The connection directly to data is so important these days, and we can integrate directly with most of the systems of record. If not, we have APIs to get into other systems of record. The platform is scalable. All those microservices can run on multiple CPUs. We have hundreds of thousands of users, millions of reports, and billions of links, where we link some core number all the way through all the documents and reports that an organization has to produce. Then finally, our new platform is much more feature-rich. We have many more features, high-value features in areas we've identified that really help our user base. We're extremely happy about what our new platform will enable us to do in terms of growth. Like I mentioned, Julie, in the next session here, will talk about that.
In terms of our transition, I talked about that in the call as well. This is a huge feat. I just can't talk enough about this. We've transitioned 90% of our ACV, and those customers are on our new platform, using our new platform. Most are not using the old platform at all. We believe that we will have the lion's share, over 99% of our customers, on the new platform by year-end, and we're on track to accomplish that.
That is a feat that's taken the entire organization, not just product development, but all of our customer support people, services people, everybody's been in the trenches helping to get these customers moved. I'd like to talk about one case study, a leading global investment firm who we did a mid-six-figure deal with recently, a new logo, and it was a multi-solution deal. One thing I want to talk about in that whole process was how one of the highest value things they talked about was they had users over the entire globe.
One of the calls I got in had users from Singapore, from obviously the U.S. There were users in New York City, one of the executives in New York City, and we had leadership and users also on EMEA to talk about this, and they all wanted to collaborate, use one environment, one tool, one set of data. That's what really was one of the largest value components of the transaction. They also wanted to connect to source data. Full audit trail was extremely important. The ability to scale. They want to continue to add other types of use cases in the platform and realize what we talk about in terms of efficiency gains.
This is a really typical type of transaction and the type of customer that we want. This is something that we're unaware of any other way to do. It's been traditionally done through spreadsheets, emailing spreadsheets to one another, same way with text documents, files mailed around. We really feel like they see a high amount of value in this. It was reflective in the time that it took us to actually do the transaction and what the ultimate value and dollar amount was. In summary, I just want to talk a little bit about why we feel our platform is going to really be a game changer for a lot of companies. The secular trends are important and the shift to the cloud.
When we started the company, there were hardly any cloud companies, and now it's something that, especially after the pandemic, everybody is talking about, and that's going to continue and accelerate. The CFO's office, digital transformation, that's a word I hear every day. Finally, the online collaboration has sort of been obviously accelerated by the work-from-home environment. I think that in the future, we'll go back to our offices, but I think there'll be a large work-from-home component for all employees in the future just because of the efficiency and the time savings going in and out of the office. Thank you very much for spending time with us today. I'm going to turn it over to Julie next, and she's going to talk about our growth strategy moving forward with our new platform. Thank you very much.
Thank you, Marty. Hello, everyone. Workiva's Investor Day actually marks my one-year anniversary with our company. Last year, I only got to watch from the sidelines because Investor Day was a week or so before I joined Workiva. I do remember, though, I couldn't wait to get started. It's because what I saw was an innovative company with a powerful, unified platform solving real problems for customers. Having run and scaled product and tech organizations at two SaaS platform companies prior to Workiva, I saw very clearly significant market upside and potential that I wanted to be a part of realizing. I have to say, there's been no disappointment for me so far. In fact, in the year that I've been with Workiva, the potential I see continues to grow as Workiva grows.
I've seen our teams across the company all working together, focusing and executing to capitalize on our growth opportunity. One of the areas that I've personally invested a lot of time and energy and focus on over the past year is Workiva's strategy and how we'll deliver on growth. Today, I'd like to take you through some of the key components of our practical, actionable, multi-year growth strategy. I'll first cover our winning aspiration, our ambition. Second, I'll talk about where we compete, the markets and the channels and the geographies. Third, I'll show you the core of our strategy, what differentiates us, and how we'll win. I'll finish by talking to some of the capabilities we're strengthening that we need and are critical for us to execute on our strategy. Let's start with the winning aspiration.
Our winning aspiration is to be the world's leading platform for simplifying complex work. Yes, it's broad, but it's comprehensive, it aligns with what our customers believe we do for them. Importantly, it's an aspiration that enables us to expand our market. We've been talking a lot about Workiva as a connected reporting and compliance platform. Yes, there is an element of reporting across most of the problems that we solve. It isn't the final deliverable, the report that we're disrupting. It's the complex work that goes into creating the report that we're simplifying. This is what our customers look to Workiva for. To solve the problems associated with the complexity in their work. Now, there are several sources of work complexity.
Complexity comes from working with data, the handling and the sharing and the collaborating with data across geographies and across teams and across documents. Complexity also comes from processes and workflows that are dispersed and unwieldy. It comes from the preparation and the assembly of the very reports that our customers are building on our platform. Our mutual customers look to the Workiva platform to handle complexity so they can have confidence in the integrity, the transparency, and the availability of their data. They look to us, too, to help us gain control over their processes. Simply put, Workiva exists to simplify complex work. Having defined our winning aspiration, it's important for us to identify and define where we'll compete. By that, I mean the geographies and the verticals and the channels that we'll target for success.
We'll continue to put a heavy emphasis on the CFO office. That's our bread and butter. That's our core. There's nothing in the Workiva platform today that limits us from simplifying complex work outside of the office of the CFO. In fact, we're already incubating our capabilities to expand across the enterprise. We've seen some promising early indicators in functions like IT and operations and supply chain. We'll continue to sell directly to customers, we also intend to put a far heavier emphasis on working with our partners. We see far greater success with our partners, with their market understanding, their network and distribution channels, and the delivery expertise that they offer. We'll continue to serve our customers worldwide. We'll continue too, to invest and expand in EMEA and APAC.
Lastly, we'll continue to be a horizontal SaaS company with solutions that can provide high value across all industries and sectors. We'll also focus on winning in some key verticals where we can easily extend our platform to provide value-solving industry-specific challenges, like in financial services, in energy, public sector, potentially even in life sciences. How will we get there? How will we win? It's by putting more rigor, more focus, and more discipline in four key areas. These are the four key tenets of our growth strategy. Our strategy starts with identifying, building, and delivering fit-for-purpose solutions. Several years back, Workiva had a tagline. It was one platform and endless possibilities. While that's still true, it leaves a lot to the imagination, and it puts a lot of burden on our customers to figure out what those possibilities are.
We'll address this by building fit-for-purpose solutions that solve very specific problems and leave a lot less to the imagination. We'll continue to modernize our platform to make it open, intelligent, and intuitive so our customers can connect to it quickly, build on top of it simply, and interact with it easily. This leads us to the third key tenet of our strategy, the Workiva Marketplace.
It's a marketplace or an app exchange of templates and connectors, integrations, and applications that make using and expanding our platform faster and easier. This marketplace will bring our partners, our third parties, and our customers together, and it'll allow them to extend the value of our platform to our users. We're targeting our initial launch for mid-2021. The fourth and final tenet of our winning equation is about our partners. We're continuing to build and leverage a strong partner ecosystem.
Partners have the opportunity to expand our solution portfolio and extend the use of our platform with our mutual clients. They can build a strong portfolio of their own offerings on our marketplace. We are committed to our partners' success in working with Workiva. I'll unpack these four components of our growth strategy. To help our customers maximize the benefit and value from our platform, we've become proficient at understanding our markets and configuring our platform to address our customers' most urgent needs. Our domain expertise in the office of the CFO has enabled us to expand our solution offerings to play a broader role in our customers' financial and digital transformation initiatives.
As Marty highlighted, our new platform architecture enables us to create and configure fit-for-purpose solutions as extensions of our platform and deliver them with high velocity, often with low to no code. We've also now formalized our idea to commercialization process. We've got defined stages and criteria all the way through incubation. It's a systematic way for us to evaluate and prioritize investment opportunities with some discipline, with speed, and with agility. Some examples of our recent fit-for-purpose solutions include Global Statutory Reporting, our Management Reporting use cases, and our FERC reporting solution. To accelerate the delivery of our fit-for-purpose offerings, we'll continue to enhance our modern platform to make it more open, more intelligent, and more intuitive. Being open is about equipping builders on our platform. Today, those builders are primarily our own development teams and solution engineers.
Our strategy is to go further by enabling partners and third parties, and even our customers, to create new solutions powered by Workiva. Our openness will enable our platform to be extended in new and unexpected ways and to be integrated with other applications in a broader customer ecosystem. We'll incorporate intelligence into our platform so our customers get more of their time back to do meaningful work. A first step for us in this direction is to provide customers auto recommendations and forecasting. Our intelligent platform will learn how our customers work and help them identify data anomalies and inconsistencies, for example, faster and with less effort. Finally, our efforts to simplify complex work come down to intuitive experiences. We'll continue to enable powerful solutions that are familiar and delight our users.
Customers and partners will see our platform as easy to onboard, easy to use, and easy to grow with. The modernization of the platform leads us directly to the next component of our growth strategy, the marketplace. We'll be launching the Workiva Marketplace so it's easy for customers to discover, to try, and to activate our platform capabilities. We'll start with the offerings like Wdata connectors and pre-built templates, and we'll follow that with digital onboarding capabilities for our solutions. Our APIs and SDKs and configuration tools will pave the way for partners and other SaaS players to build and deliver new offerings on our platform. We're looking forward to the role the marketplace will play in extending the value of our platform and accelerating its adoption. The last component of our growth strategy is our partner ecosystem.
As we expand our solution reach, partners give us the opportunity to elevate our engagement with decision-makers. Our partners, in most cases, have long-standing and trusted relationships with customers and prospects, and their influence impacts our cycle time, our deal size, and our win rate. Our partners bring with them significant industry and solution expertise and experience. This gives them the ability to both deliver our existing fit-for-purpose solutions at scale and create new solutions and services on the Workiva platform. With our partners, we're looking forward to playing an even more important role in the financial and digital transformation of our joint customers. You'll hear far more about our partner focus today from Mike Rost, our head of partnerships. Now, here's an example of the adoption of Workiva's platform by one of our leading financial services customers.
This customer has been with Workiva for several years, they've continued to purchase and leverage additional fit-for-purpose solutions built on our platform. Over the last 18 months, they've increased their spend with us threefold. In fact, they just signed an ELA with us in Q3. This is why we have so much confidence in our strategy. We're already seeing its effectiveness. Our strategy is fit-for-purpose solutions, open, intelligent, intuitive platform, a marketplace, and a high-performing partner ecosystem. As I close, I'll leave you with a few words about the capabilities we need to execute on our growth strategy. We talked earlier about ideating and creating and delivering new solutions. We're bringing an innovation mindset to almost every function in the organization.
Although you'll see our product and platform innovation in the market, we're also building innovation muscle to work and think differently internally for efficiency as we scale. Also critical to our success is our ability to deliver with agility. Our operating model now enables us to quickly pivot when needed so we can jump on opportunities and react to the changing market. Now, we reorganized our sales and operations teams earlier in the year. As part of this reorganization, we upleveled our talent and optimized our commercial functions. As a result, our go-to-market teams across marketing and sales and operations are now far more aligned around the commercial success of our solutions. Lastly, we're prioritizing work and building teams that directly relate to our strategy, so we're laser-focused on the things that matter most.
These capabilities, combined with our strategy of fit-for-purpose solution, a modern, open, intelligent, intuitive platform, a marketplace, and a high-performing partner ecosystem, set Workiva up for increasing growth and commercial success as we simplify complex work for our customers. I'll hand you off now to Stuart Miller, our CFO, for a financial update.
Thank you, Julie. I plan to touch on our market opportunity, review our track record, and then spend most of my time discussing new operating targets enabled by our new platform. As Marty disclosed on our last earnings call, Workiva posted record bookings in Q3. The most common follow-up question from investors about our record bookings has been, what's changed? The best answer to what's changed from a macro perspective is an acceleration of three secular trends that are driving demand for our solutions. The shift to the cloud started years ago with front-office applications, but the accounting and finance communities are late adopters. We're probably in the second or third inning now of accounting and finance departments moving from on-premise solutions to the cloud. Cloud adoption in the U.S. and Canada is well ahead of EMEA.
The pandemic has clearly accelerated the trend toward cloud adoption to support online collaboration of remote workers. We're hearing from customers that they need to support a hybrid work environment with more employees working from home permanently. The commitment of the consulting firms, large and small, to digital transformation of the office of the CFO is a growing force in our markets. The pandemic motivated the consulting firms to assign more personnel to these practices because the consulting work can be delivered remotely, and previously reluctant customers now accept the value proposition. Let's relate the secular demand drivers to our business. The connectedness and scalability of our new platform stand in stark contrast to that of our classic platform. Our new platform is system-agnostic, permitting connection to any system of record or system of work with an API.
Our new platform can handle terabytes of data through our cloud partners. A subscription to Workiva's platform is a commitment to the entire ecosystem available to the office of the CFO, an open system. We believe our position in the ecosystem gives us a competitive advantage. We think about growth in terms of solutions, geography, and partners. Our existing portfolio of solutions has a long runway.
With the heavy lifting on our new platform completed, our dev team is shifting resources to build functionality specific to existing solutions to enhance their value. As Julie Iskow indicated, our dev team is also devoting significant resources to new solutions through our incubation efforts. North America continues to offer huge growth opportunities for us. Ultimately, we expect EMEA to contribute 25%-30% of our revenue. 25% of our quota-carrying sales reps are now in EMEA, which is a greenfield for us.
Our APAC team has had success with limited resources. APAC is an outstanding opportunity for us in the long run. Partners are a force multiplier for Workiva. Our head of partnerships will discuss our partnership opportunity immediately following my presentation. Workiva's customers use our platform for more than 140 use cases. We study the large number of use cases to find candidates for incubation. That's how we found Global Statutory Reporting. We actively market the solutions listed here with a specific go-to-market plan and pricing and packaging strategy. Each relates to a slice on the wheel. Some are specific to a vertical market like insurance or energy, others are horizontal. We started with SEC reporting in 2010, and 10 years on, we're still pursuing 2,000 prospects in that market, mostly in the category of accelerated and large accelerated filers.
SEC SEDAR is still an attractive market, but it continues to be a smaller contributor to our bookings. For the first three quarters of 2020, non-SEC SEDAR solutions accounted for 75% of our bookings of new solutions and new logos, up from 72% for all of 2019. The number of large contracts is growing at a fast pace. We are both landing larger deals and having success selling add-on solutions. We started disclosing these statistics in Q4 2017. We now have so many customers paying as high six figures and low seven figures that soon it will be time for us to revisit the breakpoints we've been disclosing. We published a two-factor TAM of $16 billion. Just over 100,000 companies in North America and EMEA have 250 or more employees. Oracle and SAP each claim over 400,000 customers globally.
If enterprises can afford SAP or Oracle, they can afford Workiva, and they need Workiva. Our TAM targets an average annual contract value of $150,000. Given our success developing seven-figure and high six-figure relationships with early adopters, we are optimistic. We think Workiva can be a big company. Because some in the audience today are newer to Workiva's story, we want to highlight a few accomplishments since our IPO in December 2014. We communicate our revenue retention rates each quarter. The green line shows our revenue retention rate, which has hovered consistently around 95% since our IPO. Despite a change in our pricing model to solution-based licensing from Q3 2018 to Q1 2020, despite upgrading our customers to a new platform from Q2 2019 to date, and despite the pandemic.
The blue line shows our revenue retention rate with add-ons, which has been more variable but still bounded by a reasonably tight range. We believe the quality of our software and customer support contributes significantly to the resiliency of our revenue retention rates. We've posted financials and conducted follow-up conference calls for 24 quarters as a public company. The nature of our business model and high revenue retention rates provide excellent visibility for forecasting the forward quarter.
The blue line represents our revenue guidance at the midpoint for the forward quarter. The green line shows our actual results for that quarter. We endeavor to underpromise and overdeliver. A graph of our guidance on non-GAAP operating loss and income shows a similar pattern. We're proud of this track record of success. 2020 will be the fourth consecutive year Workiva has posted positive free cash flow. The board had arrived shows just the first nine months of 2020. Our highest priority is growth and subscription revenue. Our second priority is positive cashflow.
I want to pivot toward a discussion of our target operating model. At our IPO, we promulgated long-term targets for our operating model expressed as a percentage of revenue. We're updating those targets today. My intent here is to relate Marty's and Julie's commentary about our new platform and growth strategy to our income statement targets. On the first point, we believe that successfully upgrading 90% of our customer ACV to our new platform while maintaining our revenue retention rates has substantially alleviated risk for our company. You should still read the risk factor sections of our filings, we're very pleased with where we are with the new platform.
Regarding the acceleration of innovation, by Q1 2021, we expect to have half of our dev team shifted to building enhanced solution-specific functionality for current offerings and solutions for new markets in partnership with our incubation team. We expect a faster product release cycle, as we demonstrated with FERC and W for ESEF. We also have a more straightforward capital allocation process because R&D resources are now associated with development of specific functionality and solutions.
Regarding partners, the new platform connects to systems of record and upstream applications in, for example, accounting reconciliation and consolidation and budgeting and planning. The scalability of the new platform means we can serve the largest companies. These attributes translate into more opportunities for partners to make money, to advise on business process reengineering on many solutions, to run managed services with their brand and their intellectual property.
Our new platform is all about partner enablement. Finally, regarding operating leverage, I'm going to walk through a percentage of revenue statement that outlines the opportunity and cost of revenue, R&D, and G&A. The margin discussion is based on non-GAAP numbers. We'll provide a reconciliation to GAAP numbers at the end of the day. Subscription revenue has been growing faster than revenue from professional services. A high percentage of revenue from professional services, 69% year to date, is XBRL tagging. These services provide high value to our customers, and most of it is recurring. It has been growing at a single-digit rate. Subscription revenue has been growing much faster. Consolidated gross margin has been progressively approaching our 75% target, benefiting from the shift in mix towards higher margin subscription revenue.
R&D expense as a percentage of revenue has been steadily approaching our target of 25%, despite significant investment in our new platform. We've been investing in sales and marketing above our target to exploit opportunities for growth. Our original goal of 20% was too ambitious and needs adjusting. General and administrative expense as a percentage of revenue has been steadily approaching our target of 10%. Our original targets yielded an operating margin of 20%.
Given our experience the last few years, we asked ourselves if we could do better. We did some analysis and decided it's time to update our targets. We want to share our updated targets with you today. We expect subscription revenue to continue to grow faster than services revenue. We expect our partners to take an increasing share of consulting services. We're targeting a mix of 88% subscription revenue and 12% services.
Due to a shift in mix to higher margin subscription revenue, absorption of headcount we expanded to help upgrade customers to our new platform, and some expected savings on servers and other items, we're now targeting a consolidated gross margin of 80%. We've already made substantial progress on reducing R&D as a percentage of revenue. Investment in R&D is at the core of our product differentiation and competitive moat. We intend to stay ahead of the pack. We run a horizontal platform addressing a large TAM, so our benchmark comes from SaaS companies that run platforms, not applications focused on a single solution. Nevertheless, we believe we can reduce our R&D spend over time to 23% of revenue. At our IPO in 2014, we were too optimistic about how much we needed to invest in sales and marketing.
The 500 basis point adjustment here to 25% is a recognition of what we've learned and is closer to what some of the large SaaS companies spend. Our 10% target for G&A expense as a percentage of revenue has not changed. It is a best-in-class number among peer B2B SaaS companies. Our new target non-GAAP operating margin is 22%, 200 basis points better than our old model. We're introducing a target for stock compensation as a percentage of revenue, and we're targeting 12%. We operate on a talent business, and stock compensation is an important component of our cost of doing business. Our target for GAAP operating income is now 10%. We hope to achieve these targets, but there's no guarantee that we will. In any case, we don't expect that progress towards these targets will be linear.
We're quite likely to make progress toward each target at a different pace. For example, reaching our target for sales and marketing is likely to take the longest time. We have a robust effort around incubating new solutions and new markets. We will continue to invest in sales and marketing and work with our partners to pursue the most attractive opportunities. With that, I'd like to pass the torch to Mike Rost, who will provide an overview of our partner ecosystem and strategy. Mike?
Thank you, Stuart. I am Mike Rost, Vice President of Partners and Alliances. I am pleased today to share with you an update on the Workiva Partner Program. As both Julie and Stuart have highlighted, our partners have and will continue to play an important role in the Workiva strategy. As we look at our Partner Program today and in our future, our partners will deliver on expanded distribution, new sales opportunities, and domain and delivery expertise.
Let's roll into some more details on the slides. Clicking through to this one level deeper. In the area of market engagement, our partners provide the go-to-market alignment and efficient expansion into new geographies and industries. For example, our current EMEA expansion has significant involvement with partners. We also see partners playing a critical role in the growth of our federal, financial services, utilities, and other industry use cases.
Our partners are bringing us new business. Deloitte, KPMG, and PwC, and more than 15 other advisory firms have all built Workiva service lines as part of their practices. These opportunities are also delivered in the form of a managed service or BPO relationship. Eight firms, including two of the Big Four, are currently using the Workiva platform to deliver services to their clients.
Use cases include SOX, M&A, accounting advisory, and Global Statutory Reporting. As Stuart highlighted, our P&L target for professional service revenue is decreasing in percentage. One of the ways we will accomplish this is for our partners to be more involved in delivery. We have partners with trained benches of Workiva experts who are delivering on implementations. We were also engaged with joint implementations where our partners are bringing their domain and technology expertise and finance transformation skills.
We currently have over 200 partners in our ecosystem. This includes strategic alliances with three of the Big Four, the one absent being Workiva's auditor. This also includes many regional advisory firms, specialty firms, integrators, and technology ecosystem partners. This past year, we added PwC to the list with the signing of a formal agreement in July. This is a representative sample of our partner ecosystem.
For all of our partners, we primarily work with them in joint deal pursuits and with partners providing delivery on the Workiva platform. We do have a few reseller relationships for markets where we do not go to market direct. We also have the eight firms who have standardized the Workiva platform that I mentioned earlier as part of our managed service offering. We continue to expand our pursuit of firms looking to use Workiva for both BPO or managed service purposes.
Workiva has been recognized as a leader in a Gartner Magic Quadrant the past four years. In my role in working directly with these Gartner analysts, I have had many conversations around the definition of these Magic Quadrants and the criteria for inclusion of vendors. It is interesting looking at the broad scope of solutions that they put into the current cloud financial close quadrant.
This quadrant covers the broad requirements for financial consolidation, financial reporting, reconciliation management, close management, and intercompany transactions. As it relates to our technology partner strategy, we look at many of these vendors who provide system of record applications as value-added ecosystem partners for the Workiva platform, which is used by many of our clients as a system of information assembly and reporting. In fact, Workiva partners with many of the vendors in this Magic Quadrant and also the Gartner Cloud FP&A Magic Quadrant.
For example, reconciliation management vendors such as BlackLine, Trintech, and FloQast are all complementary to the Workiva platform. We have integrations and go-to-market activities with all three of these firms. Other vendors that provide planning and consolidation capabilities are also complementary to Workiva. Workiva has partner relationships with Workday, Anaplan, SAP, Oracle, and other planning, consolidation, and system of record providers.
The Workiva role of being a system of reporting is highly complementary to technology providers who primarily serve the role of being a system of record. We will continue this strategy as we look at solutions outside of the office of the CFO. Even today, we have integration with solutions such as Salesforce or other aspects of SAP, for example, in the supply chain area. We can also integrate with standard BI tools such as Power BI from Microsoft or Tableau.
Workiva can utilize these systems as both a data source and also push data to these BI-type tools. As we look at connecting the Workiva platform to these partners and other technology providers in the ecosystem, we have taken a deliberate approach of expanding our list of application-specific systems integrators. This slide highlights new partners added the past year who are experts in working with our clients' existing solutions related to accounting, financial reporting, consolidations, reconciliation, and tax.
For example, ARC Consulting brings with them specific expertise in integrating to NetSuite. Clearsulting is one of BlackLine's most successful implementers and has plans to build a large Workiva practice. CFO Solutions and interRel have expertise in the Oracle ecosystem, including Hyperion Financial Management and Hyperion Essbase. interRel has been a Hyperion Essbase implementer for well over 20 years and has supported over 1,000 clients in Hyperion solutions.
Column5, itelligence and Utegration all have expertise with SAP and the broader SAP ecosystem of solutions. These partners are playing a critical role as we expand the delivery capabilities of our partner network and expand our clients' use of Workiva to support high-volume data management with our Wdata platform. For many of our advisory firm relationships, we go to market with an industry-specific focus. This slide highlights just a few examples. In financial services, we have been very active with Deloitte on insurance and are expanding into banking. KPMG has been a great partner, working with some of our key banking clients as well. For most of our deals in the federal space, we have partners involved. The nature of long-term contracts at specific agencies requires a technology provider like Workiva to connect with the ecosystem.
For the past 12 months, we have had success with both Deloitte and Guidehouse. For example, Deloitte was involved with a $9 million deal at the Department of Justice. In the state and local market, we are working with a firm called F.H. Black. F.H. Black has significant relationships with local government agencies. F.H. Black will be deploying Workiva for these agencies.
In the utility space, where we are expanding into FERC reporting, that is Federal Energy Regulatory Commission, we are working with both delivery partners and technology providers. For example, Utegration is an SAP specialist in the utility space who is partnering with Workiva to deliver overall reporting to their joint clients. PowerPlan is a system of record utilized by many utility companies. PowerPlan also sees the connectivity to Workiva as being critical in driving value to their clients to support the FERC initiative.
Looking at a couple partner-specific examples, let's start off with the work we are doing with a large global advisory firm. This firm has engaged with Workiva in 12 different countries and has played a significant role in influencing some of our larger deals. They operate as a reseller in two different countries and have built a bench of delivery experts in North America and with their India operations. They have also worked alongside Workiva in building out insurance-specific expertise in actuarial memo, LDTI, insurance stat, and IFRS 17. Most recently, this firm has made the commitment to deploy a managed service for Global Statutory Reporting. When we look at that use case or many of the use cases around financial services, we are typically engaged with global firms.
Having a partnership, executive connections, technology expertise, and transformation capabilities of a large global advisory firm significantly increases our deal size, deal win rate, and delivery capacity for these types of global opportunities. Another example is the work we are doing with KPMG. A couple of years ago, the KPMG risk advisory team made the decision to standardize on the Workiva platform for delivery of their co-source, outsource SOX services, an offering which they call SOX on Demand.
KPMG has been a great partner in influencing and delivery on opportunities in the integrated risk space. This past year, KPMG has expanded the use of the Workiva platform into their accounting advisory service. This is the team that works with companies on M&A, bankruptcy, and other complex financial transactions. We look forward to further business with KPMG and, for that matter, all of our partners.
As highlighted in these slides, there has been a lot of acceleration in the Workiva partner program over the past 12 months. We have built a strong foundation of global advisory firm, technology partner, regional advisory firm, and technology integrator partners. We look at this strong foundation as helping to accelerate momentum of our partner program as we roll into 2021. Let's turn things over to Global Statutory Reporting. Paul, over to you.
Thanks, Mike. Hey, I appreciate the opportunity to update you all on Global Statutory Reporting since we last shared a year ago. It's fitting that I'm following Mike, as we really see this as a significant opportunity for our partners, and there's tremendous interest, both in terms of deployment opportunities and the services that go along with the global problem, as well as the advisory services, due to the regulatory nature of this stuff that can complement our technology. Just to introduce myself, I'm Paul Volpe, Vice President of Global Growth Solutions. Our team's really focused on incubating new use cases and solutions. We evaluate and grow new businesses for us as well as for our partners here on the Workiva platform.
I've been with Workiva for nearly 10 years, both in sales and solution engineering capacities. I've got experience both with large and small accounts, different industries, and across geographies. I've really been pleased with the market's interest in our Global Statutory Reporting solution, as it really hits on some of the key issues that companies have been struggling with at a time when global collaboration has become even more important.
We've gotten into this market because our user community that we saw logging into our platform across 180 different countries. We started to ask our customers what they were doing and looking into the global reporting challenges that they had for their teams. Just to define what Global Statutory Reporting means, it's really about the mandatory legal entity reporting to satisfy country-specific reporting requirements to tax authorities and regulatory bodies. Right?
They're producing documentation and reports, financial statements, and disclosures, and they're according to different accounting standards and rules in different languages. These things are also audited, so there's scrutiny around the preparation and review and support of that, as well as, the more entities that a company has, the more complexity that they have.
As companies adapt to the changing regulations and legal structures to do business internationally, this leads to issues that Workiva can really help with. Now, if we look at this problem today, what we found is that Workiva's core value is very applicable to this market, right? We've got customers themselves that have a system of record, whether it's the large ERP vendors like Oracle, SAP, Workday. They're having to submit and provide reports and information to the different stakeholders, whether it be investors, regulators, internal and external.
They've got these challenges about going from their system of record to their stakeholders through that system of work. This is where they're really gathering the information, assembling it, having to go through reviews, actually involve third parties for the audits and actually submit it. The core challenges are in the process, is that the process is really inefficient, it's error-prone, it's costly, but it's also risky and can lead to some public disclosures. At the same time, this problem is exacerbated by the fact that it's done all around the world. You've got each country that you do business in has a legal entity report. You've got individual audits that happen there, and multinationals have to deal with this on a regional basis. They have the complexity of different accounting standards, different datasets.
Their companies have grown up over time by having people distributed around the world, that process of gathering, reviewing, organizing, and submitting is happening on a country-by-country basis. It's really something that as companies mature, they're looking to that they can tackle a very distributed process, and they want to wrap their arms around it in a meaningful way as they look to the future. Workiva's platform has become a multinational system of work. If we were to look at this from the bottom up, it's really about how do we bring data, people, and processes connected together as a single component, as a system of work as it were. Customers are struggling to bring together their business and legal information, their general ledger and financial information.
Increasingly, as the regulations change and companies want to provide more transparency, information about their operations and their people, as well as the ESG data, the environmental, social, and governance data that many regulators are asking for. More importantly, folks like you all who want to understand the environmental, social, and governance impact of a company's operations. That information doesn't exist in the ERP. That exists from many different places, and they need to try to drive governance around that, because that governance is what gives it credibility. Additionally, the people that are involved in this process, the business units, the departmental folks, either regionally or in-country that understand the business, have to combine together with the people that are doing the preparation, the ones that are reviewing and managing it.
Whether you're doing this in a country-by-country basis, whether companies are using service centers or in many cases trying to have third-party providers help them with some of this business process, they need a technology that can bring that all together. Additionally, the external auditors are looking for ways to get engaged in the process and look at the details without always showing up at the offices to go through those things, especially in this new world of work. The last piece is that the process of these the preparation review process, it's not just about the output of the report. It's not just about putting financials into numbers.
It's about showing the integrity of the process, the planning, identifying the changes to our business or to the regulations, and how do we take what we did last year and update it for this year? How do we collect all that financial and non-financial information with assurance? How do we make the adjustments that we need to account for to meet the regulatory requirements? All of that stuff cannot always be managed in the system of record, as well as supporting documentation in one place. How do we go from review, approval to actual audit? How do we think about all of that from beginning to end, and manage it efficiently and reducing risk?
On top of that, if you really want to deal with the complexity of this global problem, you're going to need a system that understands tracking and dashboards about where you're at in the process, where the issues are. That's what we can help with, the global governance and standardization. Instead of letting everybody doing things as one-offs, how do you create some governance and auditability about that?
The third thing is where you don't have expertise, or you need to capture it from other parts of the world, how do you bring advisory into the mix of these processes? That's where our partner network is terrifically positioned to be able to augment our platform with their knowledge and domain expertise. At the baseline of this, you need a global connected platform to bring all of these things together cohesively and repeatedly.
What we've also finding is there really aren't terrific alternatives to a global connected platform like Workiva. Large ERP vendors have produced disclosure management software for the last 10 years. They oftentimes try to give it away, but it's not purpose-built. It doesn't solve the business needs. If you're not solving the entire problem, rather than just being able to punch out one report, customers recognize that free is not valuable. The second thing is there's legacy vendors that focus more on can they bring some sort of standardized templates to the game, but their inability to deliver a global platform means they can't bring the people, the data, and deal with the complexity of this in one place. Meaning it doesn't matter if they're pricing it lower, customers want a valuable global platform. That's what we're offering.
All of this comes at a time when multinationals are reassessing their business processes. There's a number of trends that are making this the perfect time for companies to prioritize Global Statutory Reporting and why they are looking to a cloud-based platform like Workiva to enable some of the transformation that they're looking to undertake. The first is that digital transformation of finance.
Companies are spending tens of millions of dollars or millions anyways on that system of record, trying to consolidate to one ERP or reduce the number of systems. At the same time, they're looking at new operating models in terms of how do they structure their organizations to be able to take advantage of that technology investment. Whether it's moving to a shared service center model where you have some of your business operations regionally located to support your operations.
You're leveraging third parties for part of it or trying to keep your business expertise, but your preparation. If you standardize, you can reduce your risk, and you can also have some additional efficiencies. A global platform where you can set standards and governance really allows you to do that. The second thing is around increasing regulatory oversight. There is pressure from regulators to make more information about how multinationals are doing business, the taxes they're paying, the way they're representing their operations in each country. Companies want to ensure they're both compliant but also consistent in how they're disclosing their operations globally. The third thing is really balancing insourcing and outsourcing. Many companies look to outsource certain tax functions or regulatory reporting functions.
As they have technologies that could allow them to co-source where they do some outsourcing to third parties and advisors or keep parts of the regulatory compliance that they have expertise and capacity to handle, they can handle it themselves. At the core of all of these things is having a technology platform that allows you to drive some standards and consistency across these areas.
All of this leads to a significant opportunity for a global platform like Workiva. When we got into this market, we were excited about the nature of connecting with more of our core audience, our core accounting and finance users. I personally, as I was traveling around the world connecting and going to visit customers in different parts of the world, I got the same reaction from those users that I had in 2011 when I was showing off our SEC platform.
These users are really connecting with the ease of use, the simplicity, but also the impact that Workiva's platform can have on them as user communities. There are millions of accountants around the world that have no exposure to Workiva today. Global Statutory Reporting is an opportunity for us to introduce ourselves to all those geographies, whether it be in the Americas, EMEA, or APAC. For us to go and expand our value proposition to our existing customers and connect with their accounting and finance staff that increasingly are globally distributed, we have a natural reference within our existing customer base to talk to them about the value, and that's what's led to so many opportunities for us to engage existing customers.
At the same time, this market isn't just about public large multinationals. Companies that are headquartered outside the U.S., this becomes a natural landing spot for us to attach to big problems that they have and for them to understand. We're seeing even in the U.S., private companies that are not SEC customers, this is a great landing spot for us to attach to a big global problem that they all have.
The fourth thing that I think is really, really exciting is that this is really center of mass for us to help our partners build a business and expand their connection to customers, both in terms of the accounting firms having global networks of people that can help customers on these global issues, but also in the domain and advisory expertise that they're naturally going to be able to offer our customers in the context of a cloud platform where they can actually deliver that through Workiva.
That's leading to this being a really big priority for quite a number of them, and we think there's just tremendous upside for our partners to monetize our capabilities. Just to give one specific example of where there was a case study published recently with Fexco. They're a global financial technology company that operates in 29 countries. They have 2,500 employees. They're headquartered in the EU. They have many of the challenges that we've helped public large companies solve.
It's a new logo and a new opportunity for us. When they saw our technology and saw what they could do, the results have spoken for themselves. They've been delighted with what our platform's able to offer them. In terms of efficiency, time savings, and also to refocus their folks on business problems that can help Fexco grow. We're really excited about the market opportunity and the ability to connect both with our existing customers as well as opportunities to expand into new accounts. With that, I'm going to turn it over to the Q&A portion of our presentation and back to our moderator.
Thank you for staying with us. Welcome to the Q&A portion of the event. As a reminder, you can submit your questions to the Q&A box on your screen. We have Marty, Julie, Stuart, Paul, and Mike here to answer your questions. We'll do our best to get to as many questions as possible. If we don't get to your question, we will plan to follow up with you after the call. With that, let's get started. The first question, could you lay out the cadence of the different OpEx targets, and what is a realistic timeline for achieving them? Also, what kind of revenue growth rates do you expect in your long-term model?
Sure. I'll take that. This is Stuart. These are long-term targets, just like they were long-term targets that we promulgated at the time of our IPO. If we knew with certainty when we'd achieve them, you can bet that that commentary would have been in the prepared remarks. We're laying them out here for now because we have some confidence in our ability to reach them. The timeline is certainly going to be a few years.
Okay, next question. How will the App Exchange be monetized?
I'm happy to take that one.
Take that one, Julie. Thank you.
Okay. I think important to point out is that the initial goal of a good place is to give our partners, customers, and users access to capability that will allow them to more easily interact with us, adopt our capabilities more quickly, and really just get faster time to value. That's our focus. The monetization will be the next phase of that, but initially, we want to widen the adoption so that more indirectly, the monetization comes.
Okay, next question. Can you quantify as a percentage of revenue what you think will be the mix of partner versus direct sales in the long run versus today?
Yeah.
Sure
It's important to clarify that we're almost 100% direct now. When we talk about partners, we're talking about partner influence for the most part. We have resellers in APAC, depending on how you view it with the federal government. We are substantially direct. We will continue to be substantially direct on sales and don't see that changing materially. What we do see changing, though, is the percentage of bookings that is going to be partner-influenced. It's been rising steadily here for the last couple of years. There's quite a bit of upside. Now that we've got the new platform in shape with the scalability and the connectedness there, we think there are more opportunities for partners to make money. It's more natural for them to be helping find sales opportunities for us.
Yeah. We typically see larger deal sizes, faster sales cycles, and almost as important as all those is they do the delivery for us and maintain the quality control over time. It's obviously something we have to continue to build on, and we're making great progress, but we have a lot of upside there, too.
All right. Can you provide examples of specific problem areas your new fit-for-purpose solutions will address?
A couple of things. First off, the ones we've talked about publicly are the FERC solution, the ESEF solution, that's the European. The FERC is the energy company disclosure they're responsible for in the U.S. ESEF is the XBRL tagging mandate in Europe that got delayed one year, and finally, the Global Statutory Reporting, which we've been talking about quite a bit.
Suffice to say, we have several in the pipeline. We have several that we feel can be on the order of another Global Statutory Reporting type size. There's no advantage in us, and I really don't want to get out over our skis and talk about those before we've validated the willingness to pay, market size, go-to-market strategies. All those things have to be validated before we're going to talk about them. We do have some things we're really excited about.
Could you give us an update on percent of revenue coming from international now versus last year in terms of reaching the target?
You want to start, Stuart?
Yeah. We'll do that at the end of the year in our K. As the group knows, we disclosed that on a consolidated basis, that international was only 5% of our revenue last year, we'll update that again with the K.
Obviously, it's a much bigger percentage of our bookings more recently because of the recent investments. That takes a while to be reflected in the revenue, especially with the denominator we're dealing with.
Can you talk about the business momentum with Wdata in terms of customer adoption and how customer feedback has been from those who have adopted the solution?
Sure. Wdata has done well. The attaching to back-end systems is obviously something that customers ultimately want to do. A number of our customers have adapted Wdata as a data collection and data management tool prior to their reporting without directly connecting. We've had real good success getting customers to adopt Wdata. The connectors are also coming behind that. We're still very optimistic. That being said, we have a lot of runway there, too. Obviously, connecting directly to back-end systems takes time, and so we're seeing really good attachment rates, but a lot of runway.
Okay, this is a Global Stat question. Of your customers today, how many use Global Statutory Reporting? What percent of the installed base is a viable candidate to select Global Stat over the next three or four years?
Yeah. We have not disclosed the number of customers using Global Stat. Again, it was launched more or less in an orchestrated way last year. We're very pleased with the growth there, but we've not disclosed individuals or number of customers in that group.
I would just add that we've done enough of these deals that we have a real good feel for what the market looks like. It's beginning to contribute to our bookings, obviously, every quarter in a significant way. Again, the good news is we've barely touched that market. It's going to be a significant growth driver for us for several years. In terms of eligibility, Paul, maybe you can comment on that.
Sure
Very roughly what percentage our customers might be, in terms of actually be candidates for that.
Sure. There are some order of 80,000 multinationals that are candidates for our solution. We think our platform's a fit for potentially all of them, because if you're a multinational company, whether you have five entities or some of them in the thousands, our offering can complement and can help you solve that problem. We're seeing large and small customers need this. When we look across all of our customers that operate internationally, that's all significant opportunity for us to have a conversation with.
Okay.
If we go back to last year's Analyst Day and some of the strategic priorities you talked about, seems like you've executed really well on SOX, integrated risk, Global-Stat, Federal, and expanding partner relationships, but we haven't heard as much about Wdata. Can you talk about how those conversations are going? Are there certain solutions that the customers are buying Wdata for more than other solutions?
That's definitely true that different solutions have different usages of Wdata. There's two classes. Our new customers are attaching Wdata at a high rate. Certainly, our Global Statutory reporting customers, almost have to have it to be successful. There, the attachment rate is high. On our existing customer base, SEC and others, we're seeing a nice gradual adoption. Just about what we'd like to see in terms of the rates that we can satisfy those customers, do the integrations, and move forward. Again, we're very bullish on Wdata, not only from a sort of ultimately offering connections, but also just loading in flat files, which a lot of our customers do, and then actually manipulating their data, doing different queries against it into different spreadsheets, and it just provides a lot of value in that mode, too.
We're seeing good attachment rates, but most of it's ahead of us, which is really good news.
How long does the incubation period usually take for a new product?
Paul, I'll let you take that one.
It really depends. One of the great disciplines that Julie's brought to the team is looking at stages. It depends on the size of the opportunity. We're getting very deliberate at thinking about stages and the gates that we put in place, what we decide to invest in, the resources we allocate. We really don't allocate much resource until we've validated that product market fit. The timing really depends on the opportunity. We're not looking for large quantities of solutions, but really good ones and profitable ones.
We have things like FERC that came to market very quickly as an opportunity where our technology was a natural fit. There's some drivers behind it to get into that market and then expand in energy. That's been able to monetize really quickly. Other things that become longer term, GlobalStat, we've been talking about it a while and the investment there, but that has a much bigger market. Also a nice natural product fit. We're going to look at those on a case-by-case basis, but the important thing is we've got some metrics and some discipline, and that's really paying off.
Last quarter, you won 20% of your new logos in Europe tied to ESEF. Does the pipeline and sales capacity support a similar mix in the future, or is this more of a reflection of pent-up demand after deal slippage in the spring?
I'm sorry. I had a video cut out. Can you read that again, Adam? I apologize.
Yes. Last quarter, you won 20% of your new logos in Europe tied to ESEF. Does the pipeline and sales capacity support a similar mix in the future, or is it a reflection of pent-up demand?
There's been a lot of talk about the pent-up demand, and I think there was some of that in the past quarter. I think the bulk of it was customers following the drivers we've talked about, the sectors. In terms of ESEF, we continue to close ESEF deals. Our customers realize that the pandemic has delayed some things. They know they still have to do it. They're already in the cycle of learning how to do it, and they don't want to stop and restart. We continue to close ESEF deals. When I talk about EMEA in general, there's a lot of other things we sell in EMEA besides ESEF. ESEF is a fairly small portion of the bookings we generate in Europe each quarter. I see the adding new logos continue. Stuart, you want to add anything?
Yeah. I would just say, remember that the point of ESEF is to initiate conversations with the right people about selling the broader platform. We're continuing to do that. As Marty said, we're continuing to sell some ESEF logos, but it's more about selling the broader platform. We're having some success with that in EMEA.
Okay, next question. Can you talk about the deal sizes and sales cycles in Global Statutory Reporting?
So I would-
Yeah.
Oh, go ahead, Marty.
Go ahead, Stuart. Go ahead.
I was going to say, I think that the deal sizes have a wide range. We've certainly seen low six figures to mid-six figures, high six figures for a number of our customers already. There's definitely a wide range, and I would say that the sales cycle probably follows our normal path for newer solutions, which has been 180 days or so. It accelerated a little bit in the third quarter, in part because what was going on with the work from home dynamic.
As a follow-up to that, does the solution require buy-in from multiple entities within the organization as part of the sale?
Paul?
Well, another one of the great things about it is, customers can buy globally. Typically customers, depending on where they are in their maturity curve, want to set global standards. Sometimes you see that coming out of where they're headquartered, and companies are making commitments and driving a large transformational project. Other times it can be regional, and customers want to start with groups of countries or regions. Those teams can influence the buying cycle. We kind of have a couple of vectors that we can go after and meet customers where they are.
Do you see the Workiva platform expanding to connected planning across things like sales, finance, supply chain? What features are you missing to close the gap versus planning tools like Anaplan?
Planning is a pretty crowded market, and even though we have customers that use our product for that from time to time, we're really focused on partnering with planning solutions just like we are with reconciliation solutions, and really trying to be as neutral as we can in terms of dealing with those partners. We think that there's a huge TAM for us as it exists right now, and going into a crowded market like planning doesn't make a lot of sense. Stuart, you want to add anything?
Well, Mike might have something to say there.
Yeah, I think, on that, we've had a relationship, for example, with Anaplan and Planful for three-plus years now. We have some great use cases in and around joint clients we have with Anaplan where there's obviously complex data and models that sit inside of a connected planning solution like Anaplan. There's also a number of complex reporting elements that come off of that, and are very well aligned, I believe, with the Anaplan leadership team on talking about that value proposition. Again, we see that as opportunity for both of us to expand and, again, we see that Anaplan base as a great market for us, to really show our value proposition of a connected reporting platform.
Can you provide an updated view on what a new deal looks like from an ACV perspective, given the new platform release and your solutions-based licensing model? What's the average land size today?
Yeah.
Stuart.
The new logo basis, the new logos in the third quarter were up about 18% relative to Q3 of 2019. The new logos on average were about $95,000 or so. It was up pretty considerably from the year before. The add-on sales are all over the place, as you might expect. Solution-based licensing both raises the floor and did help us with momentum there. The broadening of the platform has helped bring more solutions in play for existing customers who were waiting for the connectedness and the scalability.
In terms of your future product roadmap, how many products do you expect to release over the next 12 months?
That's really hard for us to say. Like I said, in terms of our incubation process, Julie's brought a lot of discipline and I'm sure there'll be several. I'm not going to speculate on that because, like I said, we have a disciplined process. We have some really exciting ones going through the pipe now in terms of incubation and we expect several to come out. Obviously, as Paul mentioned, we want to be really careful that we get applications that can fuel our growth with a reasonable go-to-market cost. We're very careful, and you will see some more in the next year, in my opinion. Anyone want to add on?
I would say, as Paul mentioned, some of the capabilities take less time if they are easy extensions of our platform of little, low to no code. There are others that are more complex and will take longer for some incubation and development. Depending on which ones we select, we'll do more or less over the coming year.
I might also add our partners are bringing stuff to us, and we see them as a key stakeholder there. As those partnerships mature, we're excited about the opportunity for them to create those new solutions with us.
All right. Can you talk about the timeframe for reaching 25%-30% of revenue coming from EMEA? Is there anything you're seeing in the pipeline that makes you more or less optimistic about the EMEA opportunity, versus this time last year?
Sure.
Yeah. EMEA has been growing to date at a faster rate. North America has been growing nicely as well. They're going to reach it eventually, but they're chasing a growing number as well. We haven't set a particular date there, but we're putting our money where our mouth is when we tell you that 25% of our quota-carrying reps are in EMEA. We're confident that they're going to get there.
Can you talk about the enhanced speed to market you've seen when introducing new capabilities as a result of the new microservices architecture? With FERC as an example, how long would it take to build a solution like that with the old architecture before?
Well, yeah. I'll definitely comment on that. The goal of what we are trying to build a true platform, that means that our own development people are more best practice for when we design from outside companies to build their products. Some of the questions about Wdata, the whole platform is one entity, Wdata's part of that. When we build solutions like FERC or Global Statutory Reporting, we're really focused on what do those solutions bring to the platform as well as the market size. If we have to develop some capability for statutory reporting, does it become part of the core platform? In that case, it did turn out that way.
That's sort of the third angle. In terms the specific example of FERC or these different things we've done, we've greatly increased the time to market. The old platform was so large, it was one large piece of software, and anytime you touched it was very brittle. You see that with any software as it ages and when pieces like microservices does. It enables us to bring products to market much faster, and we can talk about bringing products to market in months as opposed to years. Julie , you want to add anything?
I think you've covered it, Marty, perfectly.
Okay. Should free cash flow margin expand in line with adjusted operating margin? Are there free cash flow impacts that we should consider over the next several years?
Yeah, I'll take that. Going forward, the two biggest influences on free cash flow margin are certainly operating income and change in deferred revenue. You could expect that the stock compensation number is going to stay about where we had been, and we've given you pretty good guidance on that. Our progress toward improving margins will be the biggest impact, but so will change in deferred revenue. On the deduction side, CapEx is trivial for us, and so is our investment in intellectual property. It's all at the cash from operations line where you'll see the action, and then the two bigger ones would be the change in deferred and then the change in income.
Okay. Given the approximately 100,000 companies in your TAM and the international opportunity in front of you, how should we think about the balance of growth between logos versus existing customers over the next few years? Could the mix shift back towards 50/50 as you lap SBL?
Yeah. If you look at over the long term, it has been 50/50 between new logos and add-on sales. We have some teams in sales that are naturally more focused on new logos, such as EMEA, SEC, and then there's a private company team in the U.S. They'll continue to do their good work. On the other hand, we've got the account management team, which does tend to lean more toward add-on sales. We have no reason to believe that it won't continue to be around 50/50.
Okay. Can Julie talk about the improvements she's made in sales and marketing? How much of it is around sales productivity, and are there additional improvements that are still expected moving forward?
Sure. We made a number of changes. I would categorize them as upleveling skills and talent and reorganizing. One thing we did is we bifurcated the sales organization. One part of the organization is seller-focused, sales only. The other side is all of our commercial operations teams, our pre-sales and readiness and sales operations, et cetera, and we have a new leader in that organization, and we have a lead that's been here for a while in the organization that does the selling, and he's on that side of the organization. They work hand in hand, two in a box, and can focus most effectively on what they bring to the organization. That is one thing. The leadership part is the other. We brought in some new outside leadership with expertise and experience from SaaS organizations and larger companies.
I would add on to that we definitely see more sales efficiency opportunity. That's something that takes time to grow. We've seen it improving recently. We expect that we still have runway there as well.
Okay.
Will there be any cost efficiencies associated with the sunsetting of the legacy platform once you get to more adoption by year-end? Is it just on the repurposing of resources? Also, any timing would be helpful.
There are some efficiencies. I would say they're not enormous, but the efficiencies will play out over the next couple of years, specifically on the cloud provider side. The other efficiencies are just absorbing the headcount that we had built up to help upgrade customers. That's all baked into our new target for gross margin.
Okay. You gave your acquisition dimensions last year at the Investor Day. Have those priorities shifted, or are you seeing opportunities that are changing at all over the last 12 months? We'll start with that.
Yeah. The most important thing to understand is we've got so many great, so much outstanding growth opportunities organically, that it is hard for acquisitions to compete with those from a resource perspective. Secondly, raising the capital definitely helped us get in the flow of opportunities that were represented by bankers and made us more credible when we were going directly out to potential targets. We continue that effort on both levels, but we have yet to find anything that meets our stringent criteria. We're continuing to look, though.
Yeah, I would just echo that. We are looking very aggressively for things that would provide a lot of leverage and synergies. We just haven't found one yet, and we are going to be very picky. We have enough growth opportunities. We want to look for things that add more growth, and not rolling up revenue or anything like that. It's really looking for synergies and leverage that we get from acquisition.
Our criteria has not changed relative to last year's communication.
Okay. What percent of total bookings came from non-SEDAR, non-SEC products?
So-
Or-
As I indicated in my prepared comments there, 75% year to date on new solutions and new logos was non-SEC, non-SEDAR. The reason that denominator is limited to new solutions and new logos is because we're excluding services from that number. As we said, the price increases, price optimization would be excluded from that denominator, too. Price optimization was sort of trivial in Q3. We exclude services from the denominator because it's not as helpful a measure for you. We think that the 75% number is up from 72% in 2019. Is non-SEC.
Are you incentivizing your sales team to go after either new logos or upsells to existing customers?
Stuart, you want to?
Yeah. We don't incentivize salespeople differently for new logos or for upsells to new solutions. As I indicated earlier, we have some teams such as SEC, capital markets, EMEA, our private company team, who basically all they do is new logos. There are other teams that have the opportunity to do both upsells and new logos. We have not found the need to incentivize, to change the incentives. We do provide incentives for multiple solution sales, for example.
Can you discuss your TAM and the $150,000 target for contract value for your customer base? What does that mean from a solutions perspective or add-on products? What percent of the customer base is that target applicable to today?
We disclose our progress on the growth of the larger deal sizes. It was in the slide deck that we provided, the number of large contracts is growing is the title of it. As we indicated, 783 out of our 3,500 odd customers are paying us greater than $100K. A subset within that 383 are paying us over $150,000. As I indicated, our success in selling high six-figure and low seven-figure, but developing those relationships indicate that we'll need to rethink those breakpoints here in the future.
Originally, when we set that up, we were on the classic platform, the original platform, and we didn't really have great visibility on how customers were using the platform. This was a proxy for telling you the number of solutions that they were buying. With the new platform, with dedicated workspaces that are tied to specific solutions, we will have better visibility on the number of solutions that customer purchasing. Reaching the 90% mark is a big deal for us.
Can you talk about your capital markets business with the recent surge in equity and debt financing activity? Do you expect that to contribute meaningfully to your growth?
We have just a few sellers in that space, and we've had really good luck with information technology companies, because they understand the value proposition easily. They tend to be early adopters of new technology, more so than in companies in other verticals. We really haven't pursued the SPAC market, which has created a lot of growth in that market. We do think that the companies that have used us for either their direct listing or their Form 10 for spinoff or their S-1 for an IPO, are pleased with the value proposition and roll into additional solutions after they've had that experience.
There's some strategic value there because, it's an opportunity for us to display what we can do to the CFO and the CEO, at a critical juncture of their company's development. It's a strategic aspect to the business. It's not a large part of our business. It's in the order of a couple of million dollars in bookings. It is also a cyclical business, and we're well aware of the risks and opportunities with cyclical businesses.
Okay. Are there any partners that you're excited about as you move into Europe? Would you say that partnerships are necessary for the Europe opportunity?
I'm going to have Mike answer that. I just want to say one comment first. Partners are necessary for every region now geographically. A big key to what the new platform enables is much more complex solutions for customers like Global Statutory Reporting. In these scenarios, we need the partners for access to people to begin with in the selling process, then more importantly, actually implementing. We don't want to do that. As a SaaS company, we want to focus on software. They're essential in every region we're in, but I'll let Mike answer the question specifically about EMEA.
Thanks, Adam. I think there's several ways to look at this. First off is with our global advisory firms, we have great momentum in working with them. When you look at the three of the Big Four accounting firms that we work with, we actually have a great foundation of established contracts now with many of their in-country member firms. Based on the franchise nature of those advisory firms, we need to establish relationships with each of the in-country member firms in order to go into business.
Again, we have a great foundation there in play and have seen good momentum already with those firms. I think it is interesting with EMEA, with ESEF, a lot of those clients that are prospects that we're going to look to their advisory firm for advice, and we've seen great momentum with our ESEF opportunities with partners there. I think the convergence of having established relationship with accounting firms and the nature of the ESEF use case really makes that an interesting connection. Finally, I say to me, it's all about velocity, right? I think we've seen increased velocity with our deals that have partners related to them in EMEA. As Marty highlighted, that kind of goes globally, but I think for EMEA expansion, absolutely, especially going to new countries and new regions, partners will increase the velocity.
Okay. Can you talk about the percent of revenue from private companies in the public sector? What do you expect this to be in the next three to five years or so?
Yeah. We have about 800 customers who are not publicly traded. That includes private companies, governmental entities, and some quasi-governmental entities, public pension funds and state lotteries and that sort of thing. We've seen really good growth on both the private company side, particularly around Management Reporting, which is a motion that we've gotten down now to generate good revenue, good contracts.
More recently, we've disclosed this success that we had with the Department of Justice and Bureau of Alcohol, Tobacco and Firearms. That plus our relationships with the TVA and the post office and so forth, and the General Services Administration gives us confidence that we'll see higher contribution of bookings from the federal government following on our approval on FedRAMP moderate from about this time last year. There are great opportunities in state and local government and public universities.
Yeah, I would just add that all of our new solutions cross that line. FERC, a large percentage of our targets in the energy space are private companies. Global Statutory Reporting, same thing. We're dealing with very large companies that are private in terms of our pipeline. As we continue to build new solutions, you're going to see most of those solutions will cross that private-public divide, if you will. Some may be more vertical in terms of the industry verticals, I think that line will get fuzzier and fuzzier for us as we create new solutions.
All right. Well, I think that's as good a point as any to cut things off here. That's all the time we have for questions today. We've shared the slides from today's presentation on our IR website, investor.workiva.com. Thank you all again for your time, for joining us today, and we'll see you all soon.