Workiva Inc. (WK)

Investor Day 2020

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Nov 19, 2020

Hello, everyone, and welcome to Workiva's virtual investor today. We hope you are staying safe and healthy. For those of you who don't know me, I'm Adam Charisse, Director of Investor Relations And Corporate Development here at Fortiva. We're excited to have you here today, hear from our executive team. Before we get started, here's our safe harbor statement. During phase 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. Warkiva 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 the events that occur after this webcast. Please refer to the company's annual report on Form 10 K in 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, you 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. Atinvestor.workiva.com. Now let's move on to the agenda. We'll start with Marty Vanderplow, our CEO who will dive into our next generation platform followed by Julie Isco, our COO, who will discuss how we think about our growth strategy. Then, Stewart Miller, our CFO, will provide a financial update. To wrap things up, we'll have Mike Ross, our head of partners, and alliances discuss partnerships followed by Paul Volpe, our head of growth solutions, who'll do a deep dive on our global statutory reporting solution. At the end, we'll have a live Q and A session with the presenting team. If you would like to submit a question, please use the Q and A field that appears on your screen. With that, I'll now turn it over to our Chief Executive Officer, Marty Webb 5. 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 gonna 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 gonna talk a lot about it. But before before we do that, I would like to talk a little bit about, our mission statement. This really resonates with our employees than our millennials. And and, you know, everybody lived through 2008 and saw what happened when good information was not available. And, you know, we really, as this says, wanna build trust in our global economy. And, through what we're really good at, transparent data and and connecting reporting. Then what do we do as a company? We actually simplify very complex work. Our platform is designed to connect to back systems, back end systems, It's designed to enable workflow, connect numbers within the system, and collaborate. Over a global collaboration with your teams. So 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 we're very enthused about. We began coding in 2014. It's a big, big undertaking It was born in the cloud as all of our all of our solutions have been. Single instance, multi tenant built on AWS and Google cloud platform. But the big difference was we went to a microservices architecture, and I'll talk about that a lot, but 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 if you go through the APIs, which you must. So that architecture allows rapid deployment of new features, lets you rearchitect 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, but 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. Also, we're opening up more and more APIs for our 3rd party providers initially just for data in and out, but, ultimately, to also develop other applications on top of our platform. And 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. So this innovation thing is really, really huge for us. It just enables us to go so much faster in a much targeted, more targeted fashion and much more efficiently, just extremely important to understand this. It also enables our growth strategy, the connection directly the data is so important in the this 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, and we have 100 of 1000 of users, you know, millions of reports and billions. Billions of links where we link some core number all the way through all the documents and reports that an organization has to produce. And 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. So we're extremely, extremely happy about what our new platform will enable us to do in terms of growth. And like I mentioned, Julie, in the next in the next session here, we'll 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 percent of our ACV, and those customers are on our new platform using our new flat form. Most are not using the old platform at all, and 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. And 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 6 figure deal with recently. A new logo and it was a multi solution deal. And, one thing I wanna 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 US. 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 1 environment, 1 tool, 1 set of data. And that's what really was the one of the largest value components of the transaction. They also wanted to connect to source data. Full audit trail is extremely important, and then the ability to scale. They wanna continue to add other types of use cases in the platform. And, and and and realize what we talk about in terms of efficiency gains. So this is a really typical type of transaction and and the type of customer that we want. And, 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. So we really feel like, they see a high amount of value in this. It was reflective in the time it took us to to do the transaction and and what the ultimate value and dollar amount was. Just in in in summary, I just wanna talk a little bit about why we feel our platform and is gonna really, be a game changer for a lot of companies. Obviously, you know, secular trends are important. And, the shift to the cloud, you know, when we started the company, the there were hardly any cloud companies, and now it's something that especially after the pandemic, everybody is talking about, and that's gonna continue and accelerate. The CFO's office digital transformation. That's a word I hear every day. And finally, the online collaboration that's 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. So thank you very much for, spending time with us today. I'm gonna turn it over to Julie Nick and she's gonna talk about our growth strategy, moving forward with our new platform. So thank you very much. Thank you, Marty, and hello, everyone. Workiva's Investor Day actually marks my 1 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. And it's because what I saw was an innovative company with a powerful unified platform solving real problems for customers. And having run and scaled product and tech organizations at 2 SaaS platform companies prior to Workiva. I saw very clearly significant market upside and potential that I wanted to be a part of realizing. And 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. And I've seen our teams across the company, all working together, focusing and executing to capitalize on our growth opportunity. Now one of the areas that I've personally invested time and energy and focus on over the past year is work even strategy and how we'll deliver on growth. So 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. And second, I'll talk about where we compete, the markets, and the channels, and the geographies. And third, I'll show you the core of our strategy. What differentiates us and how we'll win? And 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. So let's start with the winning aspiration. Now our winning aspiration is to be the world's leading platform for simplifying complex work. Yes. It's broad, but it's comprehensive, and it aligns with what our customers believe we do for them. And importantly, it's an aspiration that enables us to expand our market. We've been talking a lot about and compliance platform. And, yes, there is an element of reporting across most of the problems that we solve. But 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. And this is what our customers look to work even for, to solve the problems associated with the complexity in their work. No. 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, and it comes from the preparation and the assembly of the very reports that our customers are building on our platform. So 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. And 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. And by that, I mean, the geographies and the verticals and the channels that will target for success. Now we'll continue to put a heavy emphasis on the CFO office. That's our bread and butter. That's our core. But 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, and we've seen some promising early indicators in functions like IT and operations and supply chain. We'll continue to sell directly to customers. But 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. And we'll continue to to invest and expand in EMEA and APAC. And lastly, we'll continue to be a horizontal SaaS company with solutions that can provide high value across all industries and sectors, but 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. Now how will we get there? How will we win? It's by putting more rigor, more focus, and more discipline in four key areas. And these are the 4 key tenets of our growth strategy. Our strategy starts with identifying, building, and delivering fit for purpose solutions. Now several years back, Workiva had a tagline, was one platform and endless possibilities. And while that's still true, at least a lot to the imagination, that 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. And this leads us to the 3rd 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 4th and final tenant 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 market place. We are committed to our partner success in working with Fortiva. Now I'll unpack these 4 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 customer's most urgent needs. And our domain expertise in the office of the CFO has enabled us to expand our solution offerings to play a broader role in our customer's 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, will continue to enhance our modern platform to make it more open, more intelligent, and more intuitive. Being opens about equipping builders on our platform, And 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 work even marketplace so it's easy for customers to discover, to try, and to activate our platform capabilities. We'll start with the offerings like w data connectors and pre built templates, and we'll follow that with digital onboarding capabilities for our solutions. And our APIs and SDKs and configuration tools will pave the way for partners and other SAS 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 longstanding and trusted relationships with customers and prospects, and their influence impacts our cycle time, our deal size, and our win rate. And our partners bring with them significant industry and solution expertise and experience. And 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 Ross, our head of partnerships. And here's an example of the adoption of Workiva's platform by one of our leading financial services customers. Now this customer has been with Workiva for several years, and they've continued to purchase and leverage additional fit for purpose solutions built on our platform. And over the last 18 months, they've increased their spend with us threefold. In fact, they just signed an Eli with us in q 3. This is why we have so much confidence in our strategy because 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. But we're bringing an innovation mindset to almost every function in the organization. And 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. But we reorganized our sales and operations teams earlier in the year. And as part of this reorganization, We up leveled our talent and optimize our commercial functions. And as a result, our go to market teams across marketing and sales and operations are now far more aligned around the commercial success 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, a 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 Martin disclosed on our last earnings call, Warkiva 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 3 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 2nd or third inning now of accounting and finance departments moving from on premise solutions to the cloud. And cloud adoption in the US 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. Finally, 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. Now let's relate to 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. And 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 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 to 30 percent of our revenue. 25 percent 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. Orkiva's customers use our platform for more than a 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 2000 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 1st 3 quarters of 2020, non SCC 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 as soon it will be time for us to revisit the breakpoints we've been disclosing. We published a 2 factor TAM of $16,000,000,000. Just over a 100,000 companies in North America and Avia have 250 or more employees. Oracle and SAP each claim over 400,000 customer globally. If enterprises can afford SAP or Oracle, they can afford Warkiva and they need Warkiva. Our TAM targets an average annual contract value of a $150,000. Given our success developing 7 figure and high 6 figure relationships with early adopters, we are optimistic. We think Warkiva can be a big company. Because some of the audience today are newer to receive a story, we wanna 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 is 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 contribute 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 4th consecutive year where Kiva has posted positive free cash flow. The part of the right shows just the 1st 9 months of 2020. Our highest priority is growth in subscription revenue. Our second priority is positive cash flow. Now I wanna 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 form 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, but we're very pleased with where we are with the new platform. Regarding the acceleration of innovation, by q12021, 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 ESF. We also have a more straightforward capital allocation process because R and 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 and consolidation and budgeting and planning. The scalability of the new platform means we can serve the largest companies. These attributes translate into more opportunity for partners to make money. Property. Our new platform is all about partner enablement. Finally, regarding operating leverage, I'm gonna walk through a percentage of revenue statement that outlines the opportunity in cost of revenue, r and d, and g and 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, but 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 and 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 in 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 wanna share our updated targets with you today. We expect subscription revenue to continue to grow faster than services revenue. In addition, we expect our partners to take an increasing share of consulting services, We're targeting a mix of 88 percent subscription revenue and 12% services. Due to a shift in mix, the 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 and D as a percentage of revenue Investment in R&D is at the core of our product differentiation and competitive mode. We intend to stay ahead of the path. 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 R and D spend over time to 23 percent 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 at 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 And 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. So 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 We will continue to invest in sales and marketing and work with our partners to pursue the most attractive opportunity And with that, I'd like to pass the torch to Mike Ross who will provide an overview of our partner ecosystem and strategy Mike. Thank you, Stewart. I am Mike Ross, 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 Stewart 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 the future, Our partners will deliver on expanded distribution, new sales opportunities, and domain and delivery expertise Let's roll into some more details and 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 play in 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 PwBC and more than 15 other advisory service or PPO relationship. 8 firms, including 2 of the big 4, are currently using the Warkiva platform to deliver services to their clients. Us cases include SOX, M And A, accounting advisory, and global statutory reporting. As Stewart highlighted, our P and L target for professional services revenue is decreasing in percentage. One of the ways we will accomplish this for our part 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 future alliances with 3 of the big 4. The one absent being Waukeva's auditor. This also includes many regional advisory firms, specialty firms, integrators, and technology ecosystem partners. This past year, we added P2BC to the list with the signing of a formal agreement in July. This is 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 Fortiva platform. We do have a few reseller relationships or markets where we do not go to market direct. We also have the 8 firms who have standardized number to the platform that I mentioned earlier as part of our managed service offering. We continue to expand our pursuit of firms looking to use Warkiva for both BPO or managed service purposes. Warkiba has been recognized as a leader in a Gartner Magic Quadrant the past 4 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, closed 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 In fact, Warkiva partners with many of the vendors in this Magic Quadrant and also the Gartner Cloud FPNA Magic Quadrant. For example, reconciliation management vendors, such as BlackLine, Trintech, and Flowcast, are all complimentary 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 complimentary to Workiva. Workiva has partner relationships with Workday, Anaplan, SAP, Oracle, on other planning, consolidation, and system of record providers. The Warkiva role of being a system of reporting is highly complimentary to technology providers who primarily serve the role of being a system of record. We will continue 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 for Microsoft or Tableau. Workiva can utilize these systems as both the data source and also push connecting the Warkiva 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 client's existing solutions related to accounting, financial reporting, consolidations, reconciliation, and tax. For example, our consulting brings with them specific expertise and integrating to NetSuite. Clear Consulting is one of BlackLine's most successful implementers and has plans to build a large Waukiva practice. CFO solutions and integral have expertise in the Oracle ecosystem including Hyperion Financial Management And Hyperion Espace. Interroll has been a Hyperion Espace implementer for well over 20 years and supported over a 1000 clients in Hyperion Solutions. Column 5, intelligence, and integration 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 client's use of Workiva to support high volume data management with our W Data 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's 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 the long term contracts at specific agencies requires a technology provider like Warkiva to connect with the ecosystem. For the past 12 months, we have had success with both Deloitte and Guy House. For example, Deloitte was involved with the $9,000,000 deal at the Department of Justice. In the state and local market, we are working with a firm called FH Black. FH Black has significant relationships with local government agencies. FH Black will be deploying Warkiva for these agencies. In the utility space where we are expanding into FERC reporting, that is Federal Energy Regulatory Commission, we are working both both delivery partners, and technology providers. For example, Utigration is an SAP specialist in the utility space. Who is partnered with Akiva 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 is 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 2 different countries and had 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, LVTI, insurance staff, 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 and 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 will build a strong foundation of Global Advisory Firm, Technology Partner, Regional Advisory Firm, And Technology Integrator Partners. We look at the strong foundation as helping to accelerate momentum of our partner program as you roll into 2021. Now let's turn things over to global statutory reporting. Paul, over to you. Thanks, Mike. 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. So just to introduce myself on 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 to 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 So, we've gotten into this market because our user community that we saw logging into our platform across 180 different countries And we started to ask our customers, what they were doing and and and looking into the global reporting challenges that they had for their teams. So just to define what global statutory reporting means, it's really about the mandatory legal entity to satisfy country specific reporting requirements to tax authorities and regulatory bodies. Right? They're producing documentation and reports financial statements and disclosures, and, according to different accounting standards and rules in different languages. These things are also audited they're scrutiny around the preparation and review in support of that, as well as, the more entities that a company has, the more complexity that they have So 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 Warkiva's core value is very applicable to the miss market, right, We've got customers themselves that have a system of record, whether it's the the large ERP vendors, like Oracle SAP Workday, and they're having to submit and, provide reports and information to the different stakeholders, whether it be investors, regulators, uh-uh, internal and externally. And they've got these challenges about going from their system of record to their, 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. And 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 read the lead to some public disclosures. When at the same time, this this problem is exacerbated by the fact that it's done all around the world. You've got each 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 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, And that process of gathering, reviewing, organizing, and submitting is happening on a at a country by country basis, And it's really something that as companies mature, they're looking to to, that they can tackle a very distributed process and they wanna 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, And if we were to look at this from the bottom up, it's really about how do we bring data, people, and processes, and connected together as a as a single component, as a system of work as it were. Customers are struggling to bring together their business, and legal information together, their general ledger and financial information, and increasingly as the regulations change and companies want to 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, but all more importantly, folks like you all who wanna understand the environmental, social, and governance impact of, 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, you know, 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. And, whether you're doing this in a 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 need a technology that can bring that all together. And additionally, the external auditors are 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 this new world of work. And the last piece is is that the process of this, of of global statuary 1, 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 that include 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 it to meet the regulatory requirements because all of that stuff cannot always be managed in the system of record, as well as supporting documentation in one place. And then how do we go from review approval to actual audit? And how do we think about all of that from beginning to end and and manage it efficiently and reducing risk. And on top of that, if you really wanna deal with the complexity of this global problem, you're gonna 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 the the the global governance and standardization. Instead of letting everybody doing things as one offs, how do you create some, governance and auditability about that. And the third thing is 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 to the mix of these processes? And that's where our partner network is is terrifically positioned to be able to augment our platform with with their knowledge and domain expertise. But at the at the baseline of this, you need a global connected platform to bring all of these things together cohesively and, and repeatedly. What we've also finding is there there really aren't, terrific alternatives to a global connected platform like Warkiva. Large ERP vendors have produced disclosure management software for the last 10 years. They oftentimes try to give it away, but it's not it's not purpose built. It doesn't solve the business needs. And 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 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 with the complexity of this in one place, meaning, it doesn't matter if they're, if if they're 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're looking to a cloud based, platform like Warkiva enabled some of the transformation that they're looking to to undertake. The first is that that digital transformation of finance, companies are spending tens of 1,000,000 of dollars or millions anyways on that system of record trying to consolidate to 1 ERP or or reduce the number of, of systems. And, at the same time, they're looking at new operating models in terms of their, how do they structure their organizations to be able to take advantage of that technology investment, whether it's we're moving to a a shared service center model where you have some of your business operations regionally located to support your your operations, your leveraging third parties for part of it, or, trying to keep your your business expertise, but your, your preparation, that can if you standardize, you can reduce your risk, and you can also have some 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 your, about how multinationals are doing business, the taxes they're paying, the the way they're representing their operations in each country. There's a lot of, pressure from the regulators to ensure that you're you're being truthful and honest, and companies want to, ensure they're both, compliant, but also consistent and how they're disclosing their operations globally. The third thing is really balancing in sourcing and outsourcing. Many companies, look to outsource certain tax functions or regulatory reporting functions. But as they get, as they have technologies that could allow them to co source where they where they do some outsourcing to third parties and advisors or, you know, keep parts of the regulatory compliance that they have expertise and capacity to handle. They can they can handle it themselves. That the core of that or of all of these things is is having a technology platform that allows you to drive some standards and, consistency across these these areas. All of this leads to a significant opportunity for a global platform like Warkiva. When we got into this market, we were excited about the, the, 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 for visit customers in in different parts of, of the world, got the same reaction from those users that I had in 2011 when I was showing off our SCC platform. These users are really connecting with the ease of use, the simplicity, but also the impact that where Kiva's platform can have on, on them as user communities. And there are there are millions of accountants around the world that have no exposure to to to, Warkiva today. And and global statutory reporting is an opportunity for us to introduce ourselves to all those geographies, whether it be in the Americas and E 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're 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. And, you know, companies that are headquartered outside the US, 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 US, private companies, companies that are not SCC customers This is a great landing spot for us to attach to a big global problem that they all have. And and the the 4th thing that I think is really, really exciting is that This is really center of mass for, us to to help our partners, you know, build a business and expand their connection to customers, both in terms of the accounting firms having global, net networks of people that can help customers on on these global issues. But also in the domain and advisory expertise that that they're naturally gonna be able to offer our customers in the context of a cloud platform where they can actually deliver that through 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 for our partners to monetize, our our capabilities. Just to give one specific example of where, a there was a case study published recently, the Fexco. They're a global financial technology company with, that operates in 29 countries. They have 2500 employees. They're headquartered in the EU, and they have many of the challenges that we've helped public large companies solve but it's a but it's a new logo and a new a new opportunity for us. When when they saw our technology and saw that they could do the the results of spoken for themselves. They've been delighted with what our platform is able to offer them. And, in terms of efficiency, time savings, and also to refocus their, their folks on business problems that can help Fexco grow. So 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 to the Q and a portion of our, presentation and back to our moderator. Thank you for staying with us, and welcome to the Q And A portion of the event. As a reminder, you can submit your questions to the Q and A box on our on your screen. We have Marty, Julie Stewart, 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 into your question, we will plan to pop up with you after the call. So 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 that? Also, what kind of revenue growth rates do you expect in your long term model? Sure. So I'll take that. This is Stewart. The long term targets, just like they were long term targets, that we promulgated at the time of our IPO. And, you know, if we knew certainty, when we achieved them, you can bet that that, commentary would have, than in the prepared remarks. So we're, you know, we're we're laying them out here for now because we're we have some confidence in our ability to, to reach them, but, the timeline is, is certainly gonna be a few years. Okay. Next question. How will the app exchange be monetized? I'm happy to take Ellen. That one, Julie. Thank you. Okay. I think important to point out is that the initial initial goal of a good place is to give our partners customers and users access to capability that will allow them to more more easily interact with us, adopt our capabilities more quickly and really just get faster time to value. So, that's our our focus. The the monetization will be the next phase of that, but initially we wanna, widen the wide in the adoption so that more indirectly, the, the monetization comes. So, 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. So it's important to clarify that that we're, almost a 100% direct now And when we talk about partners, we're talking about partner influence for the most part. We have, we have resellers in, in APAC, and depending on how you view it with federal government. But, we are substantially direct, and we will continue to be substantially direct on the sales and, you know, don't see that, don't see that changing, materially. I mean, what we, 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, and there's, there's quite a bit of upside. And 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. And so it's, more natural for them to be, helping find, sales opportunities for us. Yeah. We we typically see, larger deal sizes faster, sales cycles and, and almost as important as all those is they do the delivery for us and maintain the, you know, the quality control over time. So it's, It's obviously something we have to continue to build on and and, we're making great progress, but we have a lot of upside there too. Alright. Can you provide examples of specific problem areas or new for purse purpose solutions we'll address? Well, I'll, you know, the a couple things, first off, the The ones we've talked about, publicly are the the FERC solution, the ESF solution as the European. The FERC is the, is the, energy company disclosure they're responsible for in the US. ESEP is the, EXPAREL tagging, mandate in Europe that got delayed 1 year. And finally, the g the global statutory reporting, which we've been talking about quite a bit. Sufficed 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, but, you know, we're there's no advantage in this, and I really don't wanna get out of our skis and talk about those before we validated the willingness to pay, market size, go to market strategies. All those things have to be validated before we're gonna talk about them, but We do have some things we're really, 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 the target? Yeah. So so we'll do that at the end of the year in our in our K. As the group knows, we disclosed that, on a consolidated basis that, international was, only 5% of our revenue, last year, and we'll we'll update that again, with with the K. Obviously, it's a much bigger percentage of our bookings more recently because of the recent investments. But that takes a while to be reflected in the revenue, especially with the with the denominator we're dealing with. Can you talk about the business momentum with W Data in terms of customer adoption and how customer feedback has been from those who have adopted the solution? Sure. W data has, done well. You know, the the the the attaching to back end systems is obviously something that customers ultimately wanna do. A number of our customers have adapted w data as a data collection and, data management tool prior to their reporting without directly connecting. So we've had, real good success, getting customers to adopt W data. The connectors are also coming behind that. So we're 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, 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 3 or 4 years? Yeah. So we're not we have not disclosed sort of the number of customers, using global stat it's, you know, again, it was launched more or less in a, orchestrated way last year, and we're very pleased with the growth there, but, we're not disclosed, individuals or a number of customers in that group. I I would just add that, you know, we've we've, done enough of these deals that we have a real good feel for, you know, what the market looks like and, it's beginning to contribute to our bookings, obviously, every quarter in a significant way. But again, the good news is we barely touched that market. It's gonna be a a significant growth driver for us for several years. In terms of eligibility, Paul, maybe you can, comment on that in terms of, you know, very roughly what percent of our customers might be you know, in terms of actually be candidates for that? Sure. You know, there there are, you know, some order of 80,000 multinationals of are candidates for a solution. So we think our platforms are fit for for potentially all of them because if you're a multinational company, whether you have whether you have 5 entities or some of them in the thousands, our offering can can complement and can can help you solve that problem. So we're seeing large and small customers, need need this. So, you know, when we look across all of our customers that operate Internationally, that's that's all significant opportunity for us to, to have a conversation with. K. If we go back to last year's Analyst Day and some of the strategic priorities you talked about, it seems like you've executed really well in stocks, integrated risks, Global Stat federal and expanding partner relationships, but we haven't heard as much about W Data. Can you talk about how those conversations are going? Are there certain solutions that are that customers are buying W data for more than other solutions? I you know, the that's definitely true that different solutions have, you know, different usages of W data and, you know, there's there's 2 classes. Our new customers are attaching w data to high rate cert certainly our, goal is to our reporting customers, almost have to have it to be successful. So there, the attachment rate is high. On our existing customer base, SCC and others, you know, we're seeing a nice gradual adoption, just about what we'd like to see in terms of, the rates that, you know, we can satisfy those customers do the do the integrations and move forward. So, again, we're very, bullish on w data, not only from a, sort of a, ultimately offering connections, but also, you know, just loading in flat files, which a lot of our customers doing and actually manipulating their data doing different queries against it into different spreadsheets, and it just provides a lot of value in that mode too. So we're seeing we're seeing good attachment rates, but most of it's ahead of us, which is a really good news. How long does the incubation period usually take for a new product? Paul, let you take that one. It really depends. I mean, one of the great disciplines that Julie brought to the team is is, looking at stages and it depends on the size of the opportunity. So, you know, we're 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, and we really don't allocate much resource until we validated that product market fit. And so the timing really depends on the opportunity. We're not looking for large quantities of solutions, but really good ones and profitable ones. So we have things like FERC that, came to market very quickly as an opportunity where our technology was a natural fit, and we and then there's some drivers behind it to go out to get into that market and then expand in energy. That, that's been able to monetize really, really quickly. And other things that become longer term, global stat, we've been talking about it a while and the investment there, but and that has a much bigger market, also a nice natural product fit. So we're gonna look at those on a, on a case by case basis, but, the important thing is we've got some metrics and, and it's a discipline, and that and that's really paying off. Last quarter, you won 20 percent of your new logos in Europe tied to EastF. 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 I apologize. Yes. Last quarter, you won 20 percent of your new logos in Europe tied to ESAP. That's the pipeline and sales capacity support a similar mix in the future. Or is it a reflection of pent up demand? You know, that there's been a lot of talk about the the pent up demand, and I I think there was some of that in the past quarter. I think the bulk of it was, customers, you know, following the drivers we've talked about, the the the, sectors and, In terms of, ESF, we continue to close ESF deals. 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 and how to do it, and they don't wanna stop and restart. So, we continue to close these F deals and, when I talk about EMEA in general, I know, there's a lot of other things we saw in the EMEA, the SaaS, Sef is a fairly small portion of the bookings we we generate in Europe each quarter. So I see, the, adding new logos continue. Stewart, you wanna add anything? Or Oh, yeah. So I would just say, you know, remember that the the point of ESAF is to initiate conversations with the right people about selling the broader platform. And so, you know, we're continuing to do that. And, as Marty said, we're continuing to sell some ESF logos, but it's more about selling the broader platform, and we're having some success with that, in EMEA. K. Next question. Can you deal can you talk about the deal sizes and sales cycles in global statutory reporting? So I was yeah. I I'll go ahead, Marty. Go ahead, Stuart. Go ahead. Well, I'm just gonna say, I think that the deal sizes, have a wide range. You know, we've certainly seen, you know, low 6 figures to to, mid 6 figures, high 6 figures, for a number of our customers already. But there is there's 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, you know, 180 days or so, but it, accelerated a little bit in the third quarter in part because what was going on with, with the work from home, dynamic. And as a fault to that, does this require does the solution require buy in from multiple entities within the organization as part of the sale? Paul? One of the great things about it is that customers can, they can buy globally. Typically customers, depending on where they are in their maturity curve, want to set global standards. So sometimes you see that coming out of head quartered where they're, where they're headquartered. And that companies are making commitments and driving a a large transformational project. But other times, it can be regional and customers want to start with groups of countries or regions. And so, you know, those teams can can, influence the the the buying cycle. So 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? Features are you missing to close the gap versus planning tools like Anaplan? You know, you know, thing is 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. So we think that there's a huge tam for us as it exists right now and and going into a crowded market like planning doesn't make a lot of sense. Stuart, you want to add anything? Well, that that bank might have something to stay there. Yeah. I mean, I think, you know, on that, you know, we've had a a relationship example, the Anaplan and plan full for for 3 plus years now. And, you know, we have some some great use cases in around, joint clients we have with Anaplan where you know, there's obviously complex data and models that sit inside of a a Connected Planning solution like Anaplan. There's also a number of complex reporting, elements that come off of that and, you know, are very well aligned, I believe, with the with the Anaplan leadership team on on talking about that value proposition. So again, we see that as as opportunity for both of us to, to expand and, again, we see that Anaplan base as a a great market for us to really show our value proposition of a connector reporting platform. You provide an updated deal on a new deal look like 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. So the new, new logo basis, the new logos were up about in the third quarter, we're up about 18%, relative to, Q3 of 2019, So they're, the new logos were, on average, were just under, they're about $95,000 or so. So it was up pretty considerably for the year before. The add on sales are are are all over the place, as you might expect. But, you know, we're certainly, you know, solution based licensing both raise the floor. And and and did help us with with momentum there. But, you know, the, the, the breadth, the broadening of the platform, has, has helped bring, more solutions in play for existing customers who were were waiting for the connectedness and scalability. In terms of your future product roadmap, how many products do you expect to release over the next 12 months? That's that's really hard for us to stay. Like I said in terms of our incubation So Julie's brought a lot of discipline and, you know, I'm sure there'll be several not gonna speculate on that because, you know, like I said, we have a disciplined process. We have some really exciting ones going through the pipe now in terms of incubation and and, you know, 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, you know, a reasonable go to market cost. And so we're we're very careful and we will see some more in the next year in my opinion. Anyone wanna add on? I would say as Paul mentioned, some of the some of the capabilities, take less time if they are easy extensions of our platform form of little low to no code or others that are, more complex, and we'll take longer for some, incubation and development. But depending on which ones we select, we'll do more or less over the coming coming year. I might also add our our partners bringing stuff to us, and we see them as a a key stakeholder there. And as we, and as those partnerships make sure we're we're excited about the opportunity for for them to, to create those new solutions with us. Alright. Can you talk about the time frame for reaching 25 to 30 percent of revenue coming from EMEA? There anything you're seeing in the pipeline that makes you more or less optimistic about the EMEA opportunity, versus, this time last year? Stewart? Yeah. So, you know, EMEA is, has been growing, today, you know, at a faster rate, but, US has been North America has been growing nicely as well. So, it's, they're gonna have to mean, they're gonna, reach it eventually, but it's, they're chasing a growing number as well. So we haven't set a particular, date there, but we, you know, we're putting our money when our mouth is when we tell you that 25% of our quota carrying reps are are in, are in EMEA. So we're we're confident that they're gonna get there. Can you talk about the enhanced speed to market you've seen when introducing new capabilities as a result of the micro serve new microservices architecture, for an example of how long I'm gonna take to build a solution like that with the old architecture before. Well, yeah, I'd I'd I'll I'll definitely comment on that and but you know, the goal of what we were trying to build a true platform. And that means that own development people, are more practice for when we on from outside companies to build their products. And some of the questions about W Data is, you know, who the whole platform is is one entity. And, W Data is part of that. And when we build like, Ferg or 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 doesn't become part of the core platform. And in in that case, it did turn out that way. So that's sort of the 3rd angle, but you know, in term, you know, the specific example of FERC or or east sprint, these different things we've done. I mean, we've greatly increased the time to market. The old platform was so large. One large piece of software, and anytime you touched it, it was very, very brittle, and you see that with any softwares at ages and when pieces like microservices does. So you know, 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. So, Julie, you wanna add anything? I think you've covered it, Marty. Perfectly. K. 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. So, you know, the the going forward, the 2 biggest, influences on free cash flow margin are certainly, operating income and, change in deferred revenue. The you know, you could expect that the stock compensation number is gonna stay about where, you know, we we have been and we've given you a pretty good guidance on that. And so our progress toward, improving margins will be the biggest impact, but so will change in deferred revenue on the, the, deduction side, you know, CapEx is trivial for us. And, and, and so is our investment in intellectual property. So it's it's all at the operating, cash from operations line where you'll see the the action and then the 2 bigger ones would be the change in deferred and then the change in income. K. 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 5050 as you lap SBL? Yeah. I mean, it it is look at, over the long term, it has been 5050 between new logos and and add on sales. And we have some teams, in sales that are naturally more focused on new logos, such as EMEA, SCC, and then there's a private company team in the US. And so, you know, they'll they'll continue to do their good work. But the, you know, on the other hand, we've got the, the account management team, which does tend to lean more toward, add on sales. So we do expect it. We have no reason to believe that it won't continue to be around 5050. K. Can you can Julie talk about the improvements she's made in sales and marketing? How much of it is around sales productivity that are are there additional improvements that are still expected that are still expected moving forward? Sure. We made a number of change I would categorize them as, up leveling and up leveling, skills and talent and reorganizing. One thing we did is we bifurcated the sales organization. We put, one part of the organization is seller focused sales only. The other side is all of our commercial operations teams, our our presales and, readiness and sales operations, etcetera. And we have a a new leader in that organization. We have a a lead student here for a while in the organization that knows the selling, and he's on that side of the organization. So they work hand it on to in a box and can focus most effectively on what what they bring to the organization. So that is one thing. And the the leadership part is the other. We brought in some new, outside leadership with expertise and experience from SAS organizations, and larger, companies? I I would add on to that that, we definitely see, more sales efficiency opportunity. You know, that's a something that takes time to grow. We've seen it improving recently, and we expect that we still have runway there as well. K. Will there be any cost of this cost efficiencies associated with the sun setting of the legacy platform once you get to more adoption by your end, or is it just on the repurposing of resources? Also, anytime they would be helpful. So there 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, I mean, on, on the cloud provider side. You know, the other efficiencies are just absorbing the headcount that we had built up to help, upgrade customers And so that that's, all, baked into our new target for gross margin. K. 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? I'll start with that. Yeah. So, you know, most important thing to understand is we've got so many great, so it's outstanding, growth opportunities organically that it is hard for acquisitions to, to compete, with those from a resource perspective. Secondly, you know, 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, and we continue that effort, on, on both levels. But we, we have yet to find anything that meets our, stringent, criteria. We're continuing to look, though. Yeah. I I would just echo that. I mean, we are looking very aggressively for things that would, you know, provide a lot of leverage and synergies. We just haven't found one yet. And, you know, we are gonna be very picky. We we have enough growth opportunities. We wanna look for things that add more growth. And, you know, not rolling up revenue or anything like that. It's it's really looking for synergies and leverage that we get from position. But our criteria has not changed relative to to last year's communication. What percent of total bookings came from non cedar, non SCC products? So, as I indicated in my prepared comments, they're, 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. The, as we said, the price is price increases, but price optimization would be excluded from that and on there too, but price optimizations were trivial in Q3. We exclude service we exclude services for the denominator because it's it's not, you know, not as helpful a measure for you, So we think that, you know, the 75% number is up from 72% in 2019. Is not SCC. Are you incentivizing your sales team, to go after either new logos or or upsells to existing customers. Stuart, do you wanna Yeah. So we don't, you know, 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, and then our private company team, who basically all they do is new logos. And then there are other teams that have the opportunity to do both upsells and new logos. So we have not found the need to incentivize to change the incentives. We do provide incentives for, you know, multiple solution sales, for example. Can you discuss your canned and the 150 k target, for contract value for your customer base? What does that mean from a solutions perspective? Add on products, and what percent of the customer base is that that is that target applicable to today? Yeah. So, you know, we disclose our progress on the, growth of the, larger deal sizes. It was in the slide deck that we provided a number of large contracts is growing is the title of it. So, as we indicated, 783 out of our 3500 odd customers are paying us greater than a 100 k. And, you know, subset within that 383 or us over 150,000. As I indicated, our success in selling high 6 figure and low 7 figure, developing those relationships, indicate that, you know, we'll need to rethink those break points, here in the future. But 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. And so this was a proxy, for telling you that the number of solutions that they were buying. With the new platform, with, dedicated workspaces that are tied to specific solutions you know, we have, we will have better visibility on the number of solutions, that, that customer purchasing. And, and reaching the 90% mark is, is a big deal for us. Ken. 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? Yeah. So, 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, you know, more so than in companies and other verticals. You know, we really haven't pursued the, the SPAC market, which has created a lot of growth in that market. We do think that the, you know, the the companies that have used us for either their, direct listing or their form 10 for spin off or their S1 for an IPO. Are pleased with the value proposition and roll into additional solutions after they've had that experience. And there's some strategic value there because, it's an opportunity for us to display what we can do Nah, to to the CFO and the CEO, at a at a critical juncture of their company's development. And so it's, it's a strategic aspect of the business. It's not a large part of our business. You know, it's it's in the order of a, of a couple of $1,000,000 in, in, in, in, in bookings. It, it's, it is also a cyclical business, and, we're, we're well aware of, of, the you know, risks and opportunities with cyclical businesses. K. Are there any partners, that you're excited about as you move into Europe? Would you say that partnerships are necessary for the, the Europe opportunity? I'm gonna have Mike answer that but I just wanna say one comment first. Partners are necessary for every region now geographically. Our the 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 for people to begin with in the selling process, and then more importantly, actually implementing, we don't want to do that. And, as a SAS company, we wanna focus on software. So they're essential in every region we're in, and, but I'll let Mike answer the question specifically about EMEA. Yeah. Thanks, Adam. I think, you know, there's several ways to to look at this. You know, first off is with our global advisory firm, you know, we have great momentum in working with them when you look at the, you know, 3 of the big 4 accounting firms that we work with. We actually have a a great foundation of established contracts now with many of their in country member firms, based on the franchise nature of those advisory firms, you know, we need to establish relationships with each of the in country member firms in order to go into business and and we, again, we have a great foundation there in play and have seen, good momentum already, you know, with those firms. I think it is interesting with EMEA with ESEF. You know, a lot of those clients that are, you know, prospects that we're we're going to look to their advisory firm for advice, and we've seen great momentum with our ESF opportunities, with partners there. So I think the convergence of having established, you know, relationship with accounting firms and the nature of the ease of use case really makes that, an team, connection. And finally, it's saying convenience all about velocity, right, is I think we've seen increased velocity with our you know, our deals that have partners related to them in in EMEA. As Marty highlighted, that that kinda goes globally, but I think for for me expansion absolutely, especially going to new countries, 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 3 to 5 years or so? Yeah. So, one way to approach we have about 800, customers who are, not publicly traded. And that includes, private companies and governmental entities, and in some quasi governmental entities, pension public pension funds and state lotteries and that sort of thing. And, you know, you've seen really good growth on on both the private company side, particularly around in management reporting, which is a a motion that we've gotten down now, to, to, generate, good revenue, good, good contracts, And then, more recently, you know, we, we've disclosed this, success we had with, Department of Justice And Bureau of Alcohol, tobacco and firearms, that that plus our relationships with, you know, TBA and the post office and so forth, and the general services administration gives us confidence that we'll see, higher contribution of of bookings from the federal government following on our approval on FedRAMP Moderate, from about this time last year. And then there are great opportunities in state and local government and, public universities. Yeah. I would I would just add that, all of our new solutions cross that line. I mean, for a large percentage of the of our targets in the energy space or private companies, global statutory reporting. Same thing. We're dealing with very large companies that are private in terms of our pipeline. And, so as we continue to build new solutions, you're gonna 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. But I think the the, you know, that line will get fuzzy and fuzzier for us as we create new solutions. Alright. Well, I think that's as good a point as any to to cut things off here. It's all the time we have for questions today. We've shared the slides since today's presentation on our IR website, investor.workheba.com. Thank you all again for your time for joining us today, and we'll see you all soon.

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