We are a socially responsible bank. We've been calling ourselves a socially responsible bank for America since 2015 , and ESG is very much at the fabric of who we are, what makes our business different. Financial reporting, ESG disclosure, and audit risk are three incredibly important parts or elements to proper disclosure and proper communication to investors, and having those working in an integrated fashion and synchronized with one another is extremely important. Now, on a single synchronized platform, we eliminate the risk of omissions in our disclosure, we eliminate the risks of improper information, and we have a much more secure control environment for being able to bring that information up in a reliable and repeatable way. Using Workiva has had tremendous benefit for us across multiple dimensions.
I think the first and most important is we have an extremely secure control environment when it comes to data and the ability to move data into a reportable fashion for the public. We've been able to save numerous people-hours in terms of having to compile information. The automation really eliminates the need for compilation and allows us to spend more time in review, and the last part, which is actually very exciting, is it creates a technology environment where our people can learn, and can grow, and can play, and have fun, and develop, and really challenge themselves in their job to do things differently, and using technology as a way to develop that skill.
Welcome to our Investor Day 2024. My name is Mike Rost, Head of Corporate Development and Investor Relations at Workiva. We are coming to you live from Denver today, the site of our annual Workiva User Conference. We have an audience here on site, as well as an audience via a live stream webcast. Thank you to all of those for joining online. Before we get started, a quick review of our safe harbor statement. I would like to remind everyone today that during today's conversations and event, we will be making some forward-looking statements regarding future events and financial performance. These forward-looking statements are subject to known and unknown risks and uncertainties. All forward-looking statements are made today that reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this event.
Also, during the course of today's call and event here, we will be referring to certain non-GAAP financial measures. We have a great event today and a packed agenda. Kicking things off will be our CEO, Julie Iskow. Following Julie will be Paul Volpe, our SVP of Growth and Solutions. Our final speaker will be CFO Jill Klindt, and we will conclude the event with a live Q&A session. So to get things started, I would like to introduce CEO Julie Iskow. Julie?
Thank you, Mike, and welcome to our Investor Day 2024. Thank you all for taking the time to join us today. I'm looking forward to sharing our optimism, our ambition, and our progress in executing on our strategy. Also, would like to talk about our drive to capture the significant opportunity in front of us. I'd also like to welcome you to Amplify. It's our annual user conference, as Mike said. We intentionally hold Investor Day at Amplify so that you can talk with and interact with our customers and our partners, because there is nothing quite like hearing about Workiva from those who are experiencing impact from our solutions, our platform, and our team. These Amplify attendees are vivid proof of everything we'll talk to you about today.
So here's what we'll be covering: our growing opportunity, our reasons for optimism, our dual focus on both growth and productivity. And if you were here yesterday, you might have heard me on the stage when I was talking to the audience about the evolution of their roles, how what once were trends have now become their business realities, and that those realities have dramatically increased in the scope, in visibility, and importance of their roles. So they faced broadened responsibilities now, increased complexity, heightened risks, so they have to juggle, and manage, and navigate all of this. Just increasingly, they have to do it in the midst of a dynamically changing environment. Have to do it without fanfare and without drama, and with confidence and assurance. The stakes are high, the impact can be massive, and yes, accuracy, speed, and productivity are not optional. So you know us.
Yes, at our core, Workiva solves for transparency, regulatory compliance, and, yes, accuracy and data integrity in reporting and disclosure. We've always done that. But customers also need to adapt fast in a rapidly changing environment. They trust Workiva to be a platform to meet their current needs and prepare them for what's next, and to be their partner through what they're realizing is mandatory transformation, and that's digital transformation, and that's financial transformation, and that's operational transformation. So let me start here with a customer story that's really emblematic of the trust that we build with our customers. This Fortune 50 company recently expanded the use of our platform with ESG reporting. It included functionality to comply with CSRD. This is their tenth solution with us. They purchased their first solution, SEC, back in 2013. They quickly followed in 2014 with their second solution.
It was their first investment in Bank Regulatory Reporting. In 2016, they added three new Bank Regulatory Reporting solutions to support their requirements for CCAR, capital planning, and DFAST. In 2020, they added their sixth solution, Global Statutory Reporting, to address their global Multi-Entity Reporting requirements. In 2021, they invested in GRC with the addition of their seventh and eighth solutions, SOX and Policy Management. There was an additional account expansion in 2023, with further investment in Bank Regulatory Reporting, this time for global regulations. In 2024, they added their tenth solution with us, ESG. It was sourced and delivered by a Big Four partner. These four solutions in three years, 10 in total, ACV grew from $75,000 in 2013 to over $3 million today, all on our unified platform.
Here's a key reason that they purchased ESG from us, and it's the same reason they purchased all other nine solutions. Before Workiva, it was complete chaos, lacking a single source of truth, inefficient review processes, limited internal transparency, time-consuming manual processes. Our platform is resonating because we provide relief. The customer has increasing requirements around ESG. They require a solution that enables them to provide audit-ready ESG reporting. They need to leverage the same processes and internal controls that they already have for financial reporting. Specific to ESG, they published their first TCFD report in 2018 . They provided net zero targets in 2021 , and they'll be subject to the CSRD moving forward. This is the absolute embodiment of assured integrated reporting, and it's really just one example, and in highlighting some of the key reasons that we're winning.
We win with our unrivaled capabilities. The platform's the foundation, the only unified platform, bringing the capabilities of financial reporting, ESG, and GRC together in one secure, controlled, audit-ready environment. We win with our partners, an ecosystem of strong and committed partners, sourcing, co-selling, and delivering our platform. We win because of our loyal client base of over 6,000 customers worldwide, and these customers already trust Workiva with some of their most complex and critical challenges, like the customer story I just highlighted. We also win because we have deep expertise and experience. We've been doing investor-grade reporting for over a decade. We've also been doing regulatory reporting for well over a decade. It's our wheelhouse. Customers can be compliant with Workiva the day a regulation becomes law.
We're also the world's leader in XBRL tagging, fast, efficient, and accurate, and we've been using AI in our XBRL tagging for years. All of this, it's by design. It's intentional. This is what we've been building and working towards at Workiva, and it's contributing to our optimism. So let's turn now to the macro, or the buying environment. In Q2, we saw an improved buying environment and improved momentum in the market. We had a record bookings quarter, broad-based demand across the entire solution portfolio, and higher volume of account expansion deals and platform wins across North America, across Europe, across APAC, and Latin America. Now, what's the reason for the improved demand? Is it because our focus on internal execution is paying off? Is it because regulatory deadlines are becoming a reality and fast approaching? Is it because of an overall improvement in the macro?
Is it because the scrutiny and the importance of non-financial factors are continuing to increase? There are many potential reasons. Could be one, could be several of these, all the above. Only time will tell, but what has become clear is that our platform is resonating in the market. On the heels of an encouraging Q2 buying environment, I want to first take a look here at the opportunity in front of us, our large, relatively untapped, and growing TAM, and yes, I did say growing. Let's briefly walk through the history of the TAM. In 2010, Workiva launched its first flagship use case, SEC reporting. The listed companies on the New York Stock Exchange and Nasdaq were used to get the target.
The TAM at that time was $120 million, and it was based on selling one solution to 6,000 companies at $20,000 ADS. In 2014 , at our IPO roadshow, we updated our TAM to $6.7 billion, including Canada and Europe. We had expanded our solution portfolio at that time to five solutions: Compliance, Sustainability, Management Reporting, as well as Enterprise Risk Management. At our 2017 Investor Day, we updated our TAM to $16 billion. This TAM was not itemized by solution or geography, and it was primarily focused on reporting, financial reporting. The simple math was, if you have the requirement to buy an ERP system, a major ERP system, you have the sophistication to purchase Workiva, and that's what the TAM was based on.
Let's fast-forward to 2021, where we expanded our TAM to $25 billion, including an itemized view by solution area and geography and at the time, we communicated a very conservative market size for ESG, $3 billion. So today, we're providing a revised TAM of $35 billion. This is reflecting the growing opportunity we now see with our assured integrated reporting platform. Here are four key factors that account for our TAM expansion. First, our financial reporting TAM continues to expand. Second, we've entered into new markets. Think Latin America. We've got greater clarity in expanding markets. Think APAC. Third, our GRC TAM has expanded based on geographic expansion and greater deal size assumptions. And fourth, and most significant, our ESG TAMs expanded from $3 billion- $8 billion.
That's a 150% increase, and it's due to companies needing to comply with CSRD, the increase in the market's willingness to pay, and the addition of Workiva Carbon to our sustainability offering in our portfolio, which accounts for $1.5 billion of our updated TAM. The size and the sophistication and the complexity of sustainability, that opportunity has evolved quickly, and our growth has been commensurate with this evolution. Now, one of the key drivers of TAM expansion is changes in the market, but this expansion is also a reflection of how our business has evolved. We've invested in our platform, in our product innovation, and importantly, in the diversity of our solution portfolio. So this is where we sit right now. We've got a clear competitive advantage with a large, growing, and relatively untapped TAM, and a well-defined strategy, which I'll talk through shortly.
We're committed to maintaining our leadership position, going after our growth opportunity, and as we do so, our focus will be on both growth and productivity. While Jill will go into some detail on our recently updated operating model, I do want to be clear, we've chosen to update the model to reflect the changes in our market and how best to capture the upside in front of us. So here's what we see and why we believe the time is now to invest in our go-to-market. The demand for assured integrated reporting is real, and it's increasing. We believe we need to accelerate coverage and strengthen our go-to-market machine. In our newest market and fastest-growing solution, sustainability, the regulatory deadlines are fast approaching, and they bring a time element and an urgency to our opportunity, and we see an expanding TAM and a rapidly growing markets.
It's for this reason we're going to continue to invest with the dual focus, again, on both growth and productivity. Let's talk about the productivity first. We believe we can deliver both accelerated growth and improved operating leverage. We've shown improvements in operating leverage in recent quarters, and we set more aggressive targets for gross margin and G&A in our 2027 mid-term model. For R&D, we're holding our original 2027 target. Our new medium-term model assumes sales and marketing spend will continue through 2027 at a rate similar to that of 2024, and this will support our focus on growth and the time-sensitive opportunity in front of us. Let's go into the sales component in a little more detail. We know that this is a work in progress for us as we transition the company and our go-to-market teams to cross over the billion and beyond.
We know we have work to do. To accomplish that work, we're focused on changing our sales team structure, staff, and strategy. On sales structure, we're talking about how our teams are organized, our territory sizes, and the roles and the responsibilities of our sellers. We're actively making changes to the structure. Two areas we'd like to highlight. The first, we have an expansive sales structure and an expensive sales structure, with both account execs and overlay solution specialists. We're working to improve the efficiency of that approach. Second, we're revising our territory sizes. It's a proven play in enterprise SaaS that shrinking territories improves productivity and deal sizes, and as we've evolved into a platform company, this is an opportunity for us to drive efficiency. In terms of the staff, we're raising the bar.
We're raising the bar on what we expect from our sellers, both existing and new hires. We're elevating the profile of our sellers to those that better align with our business and our market, that have had success selling a platform, and that have embraced the value of winning with partners, and that can build trusted relationships to bring our customers increasing value.... Finally, on the strategy, we're focusing on where we sell and what we sell. We are improving our precision in the go-to-market execution as we expand into new geographies, as we optimize within current established markets, and we launch new solutions like sustainability. So let's transition to the second part of the dual focus: growth. There are a few important assumptions embedded in our medium-term and long-term targets. We assume accelerating subscription revenue growth.
We believe that we can deliver teens, high teens to 20% subscription revenue, revenue growth over the coming years. This implies that we'll be over $1 billion by the end of 2027, and in the $2 billion range by 2030. So let's talk about how we'll execute on our growth strategy to get there. The growth strategy we've been focused on remains relevant and intact, and it guides our execution.
For those of you new to the Workiva story, four tenets of our growth strategy are our solutions, delivering fit-for-purpose, best-of-breed, high-value solutions that are better together on the platform, our innovative platform that continues to become more open and more intuitive, and more intelligent, and more connected, expanding our global footprint with excellence everywhere we play, and that's in and beyond North America, across Europe, Asia, and Latin America, and finally, a high-performing partner ecosystem, extending our value and accelerating our growth. So let's start with the partner ecosystem. We know we can't capture the massive opportunity in front of us without a strong partner ecosystem. It's an accelerator. It fuels our growth. That's why we've been laser-focused on winning with our partners, our maturing ecosystem of over two hundred partners. This ecosystem includes the Big Four and regional advisory and consulting firms and leading technology companies.
We primarily work with these partners in a joint go-to-market motion with both sourced deals and co-sales. Many of these partners also use the Workiva platform to deliver managed services to their clients. When I speak with investors, this is a question I often get: "Where are you in your journey with the partners?" I like to say we're still in the early innings, the bottom of the second, top of the third. You may notice the prevalence of partners in the deals that I highlight every quarter on the earnings call. But in addition to those strategic wins, partners are engaged in deals of all sizes, and the volume and the contribution of partner-involved deals has increased significantly over the past several years. Sticking with the baseball analogy, you might say Workiva's moved from the Dyersville, Iowa, Field of Dreams to Yankee Stadium.
As our market and our platform evolve, and they are evolving, the more lucrative we become for our partners. We're now seen as a Major League player. Why? Because Workiva is a platform company, and partners invest in platform companies, and solutions like Workiva that are part of large transformation projects, like finance or ERP system upgrades, are strategic. And emerging markets, like sustainability, provide significant advisory business and transformational growth. We believe that ensuring the success of our partners' business models is critical to our partner strategy. We're supporting this through the shift of setup and consulting services work to our partners. This slide shows the decline in setup and consulting revenue over the past six quarters. The business models of the Big Four and the regional consulting and advisory teams are very simple.
They're looking to grow the billable service hours for their consultants and their advisors. Workiva is unique in that there are ongoing expansion opportunities for them. There's always another implementation project, there's ongoing opportunities for high-margin advisory services, and importantly, some of these services are recurring. The more we can unlock value for our partners, the more they're incented to source and co-sell new deals and enable account expansion. So this is why we believe shifting our services revenue to our partners will accelerate our subscription growth. So as we've transitioned to a platform company, we've taken our partners on that journey with us, and it's working. They're a critical contributor to selling our platform. When they're involved, we sell higher, we sell broader, and we see increased deal sizes and win rates. They're involved in both new logos and account expansions and multi-solution deals with strategic clients.
The increased customer value and retention rates that partners can provide input into make them key to our success. Our growth strategy is designed to focus on how we win. One critical aspect of winning is determining where we play, and one of the most untapped aspects of our opportunity is outside of North America. Over the past few years, our conversations on global expansion have focused on two primary topics: CSRD and execution. CSRD is a game changer. It's not simply the next regulatory requirement. It's a step change in the size and the scope of our opportunity. For European companies, the regulations are clear.
Larger companies will begin reporting in 2025, and there are over 1,000 new data points that they need to report on, and disclosure will be subject to external audits starting in 2026, and XBRL disclosure with ESEF will be phased in over time. But it's not just impacting Europe. For any global company, we believe initial impact will be related to supply chain and customers. Businesses that want to retain customers and grow in Europe will be strongly motivated to comply with CSRD. And finally, to do business on a global scale, customers will be driven to disclose sustainability metrics. On the topic of execution, we've been very transparent about our focus on improvement. Yes, we've made progress, but there is still more work to do.
Our focus is on the quality, the rigor, the accountability, and the discipline of our go-to-market teams, and our results indicate that we're turning the corner in addressing our challenges. One key indicator is our geographic revenue mix. We reported in our 2023 10-K that 15% of our revenue came from outside of the Americas. While our 2024 10-K is still months off, we did want to give you a sense of the momentum we're seeing. Today, we're providing a mid-year update. In the first half of 2024, revenue accelerated to 17% outside of the Americas. To gain some perspective here, in 2019, the percentage was less than 4%, and at the end of 2022, the percentage was 11.5%. Today, it's 17%. We're still not where we want to be, but the progress is clear.
The growth trajectory is a consequence of market performance in both Europe and APAC. So let's talk about Europe. We're seeing clear performance gains in Europe, where we've had several strong quarters, including a record-breaking quarter in Q2. Now, one of the strengths of the opportunity of the European market is that there's already strong regulatory environment there. Sustainability's been a focus. Sustainability's been a focus there for years. It's not a new concept for them. In addition to sustainability, significant opportunities exist for financial transformation. Both of these factors are highlighted in a deal that we won last quarter. It was a large European bank. It was a four-solution, mid-six-figure new logo deal. They purchased Workiva's ESEF, ESG, Controls Management, and Bank Regulatory Reporting. Workiva was selected as part of a financial transformation project to replace legacy point solutions across the bank.
This four-solution deal will equip the customer with a platform to meet both their existing and their future financial and sustainability reporting requirements. With the requirements for integrated reporting in Europe, the deal included CSRD readiness and ESG assurance and support for their integrated report, all part of the overall financial transformation requirements. Workiva showcased differentiation with our platform, and we beat out competitive point solutions. The customer went through a formal RFP process, and Workiva was the only solution evaluated that had the capabilities to address the financial reporting, ESG, GRC, and Basel Pillar 3 reporting and disclosure requirements that the bank required. This deal included early and significant involvement from a Big Four firm. In addition to the sourcing opportunity, the Big Four advisory firm will be responsible for delivery. We landed with the platform. The drivers were financial transformation and CSRD.
Our assured integrated reporting platform is resonating because it has all the capability to meet CSRD requirements: financial reporting, GRC, sustainability, including carbon. We're also encouraged by the opportunity we see in Japan. We've been successful in landing several well-known Japanese companies. The value proposition for our platform is resonating in this market as well. We're landing in APAC with financial reporting, and we've seen increased significant demand for ESG over the past several quarters. Here's a land-and-expand win that illustrates the opportunity in APAC. We first landed this large Australian financial services firm in 2021 with financial reporting and tax reporting. In Q2... Whoops! In Q2, excuse me. The firm expanded to its third solution in early 2023 with the purchase of management reporting.
At the end of 2023, they purchased their fourth solution, multi-entity reporting, to support the complex statutory reporting requirements for over 300 legal entities. In Q2 of this year, the bank purchased three additional solutions, including ESG reporting and solutions to support the Bank Regulatory Reporting. In just three years, we have a significant land-and-expand story. This is the opportunity we have in APAC and with global expansion. Now let's turn to our diverse and differentiated portfolio of fit-for-purpose, best-of-breed, high-value solutions. The diversity of our portfolio and the depth and the breadth of our solutions are key factors in our resilience, and they contribute to our growing ACV. Our customers with ACV over $300,000 have consistently grown over 30% quarter over quarter, and we see traction across our entire solution portfolio in financial reporting, sustainability, GRC, and our industry verticals.
Given such a diverse and differentiated portfolio, one common question we get asked is: How are you able to maintain the quality of these solutions as you expand? Well, that's the power of the platform. At least 80% of each of the solutions is the platform. So in most cases, an enhancement to the platform enhances all solutions. It's critical to note that because of this fact, much of the R&D investment that we make now has a multiplier effect across our entire solution portfolio. So let's dive into our specific solutions, starting off with the opportunity in financial reporting. Our portfolio of financial reporting solutions continues to play an important role in both the landing of new logos and account expansion. While SEC remains an essential solution for many of our customers, our financial reporting solutions extend well beyond that.
Our financial reporting solutions are sold into public companies, private companies, and federal, state, and local governments. It's for a wide range of use cases, including multi-entity reporting, ESEF, private company reporting, and industry-specific use cases. There are many market drivers for us in landing new financial reporting clients or solution expansion, and it includes financial transformations, private to public journey, changes in regulation, and replacement of legacy point solution technology. Now, one trigger event for a Workiva purchase is an ERP transformation. Upgrading an ERP, for example, from R/3 to S/4HANA, or switching an ERP system or financial consolidation system, often creates the need for broader financial transformation. These transformation processes may include an evaluation of disclosure reporting, management reporting, multi-entity reporting systems. These disruptive ERP transitions are a great opportunity for us to land a new logo or expand solution footprint with an existing client.
A beautiful example of this was a Q2 new logo win. It was with a European consumer products company who purchased two solutions on the platform. This company has been working with a Big Four advisory firm on an SAP migration project to S/4HANA. The Big Four firm has been providing support to this organization on the SAP Disclosure Management solution since the beginning of ESEF regulation in 2021 . With the migration to S/4HANA, the advisory firm recommended the company move to the Workiva ESEF product as their go-forward solution for disclosure management. With the upcoming CSRD requirements for integrated reporting, this client win also included the purchase of Workiva ESG in addition to ESEF. Now, deals like this showcase our continued opportunity in financial reporting.
A new logo win in Europe, two solutions on the platform, and a deal sourced and delivered by a partner, and was all triggered by a change in ERP and new regulatory requirements. Now, looking at some of the metrics on financial reporting, we saw a 19% increase year over year of those customers with over $100,000 in ACV. Over 45% of our Q2 financial reporting deals multi-solution, and our partner-sourced bookings increased by 134% year over year. Something to note, all of these numbers exclude SEC reporting, and it shows the growth opportunity in financial reporting beyond our core SEC business. So moving now to GRC. GRC is a broad market segment that includes internal audit, controls, risk management, and policy management. We're seeing growth opportunities for our GRC solutions through three primary market drivers.
Of course, it begins with regulation. The increase in regulation inevitably brings broader and deeper scrutiny. It brings increased customer requirements for GRC and a requirement for assurance. You don't need to look any further than CSRD to validate this market driver. CSRD mandates that organizations address new requirements for risk, controls, and policies for new processes and metrics that will be disclosed for ESG. Risk management is a second significant GRC driver. Successful organizations know that risk can come from every angle. With our current macro and geopolitical environment, many organizations are placing an increased focus on managing risks. We're also seeing an increased focus on risk management related to ESG, specifically the work to address climate risk... and third, we see ESG as an increasingly important driver of GRC momentum.
The establishment of investor-grade ESG programs brings with it new processes, new systems, and new roles, all of which drive the need for the documentation and management of new controls, risks, and policies. The importance of GRC for ESG is summed up in a statement you may have heard: GRC is how ESG gets done right. Looking at some metrics on GRC, we have a 26% increase year over year of those customers with greater than 100,000 in ACV. In Q2, over 49% of our GRC deals were multi-solution, and our partner-sourced GRC deals are increasing by 27% year over year. As we've matured our GRC business, we've seen it grow from simply being an account expansion opportunity to a set of solutions that's landing new logos. A great example of this is a Q2 new logo deal with a European utility provider.
This company purchased our Operational Risk Management solution for the management and execution of risk and control self-assessments and the incident and event loss processes. Now, like many of our new deals in Europe, this was a multi-solution deal that also included ESG. The ability of the platform to address both GRC and ESG business requirements was a clear differentiator over point solution competitors. This deal was sourced and will be implemented by a regional advisory firm. Now, let's talk sustainability. The demand for our ESG offering continues to grow, and while regulation is a clear driver, it's significant that the demand is growing even without regulation in the U.S., and as a result, our ESG solution is driving pipeline expansion and booking success with wins in both new logos and account expansion.
I've had the opportunity to meet with a number of investors over the past six weeks, and the topic of ESG has been a top three talking point. There continues to be some confusion related to what the ESG sentiment is in the investor community compared to what the ESG sentiment is with companies that we sell to. To be clear, we are not experiencing an ESG backlash with our corporate clients and prospects. In fact, we're seeing quite the opposite. To give you a little more context on what we're seeing, I'm gonna walk you through several factors that are influencing the corporate momentum. First, we'll talk about the non-regulatory drivers, and as I said earlier, we're seeing ESG demand even when there's no regulation.
Now, one of the primary sustainability disclosure drivers for large companies is commitment to science-based targets, and there were over 4,200 companies that have committed to science-based targets under the Science Based Targets initiative, or SBTi, as of year-end 2023. This represents over 100% year-over-year increase in companies that have volunteered to hold their business accountable and provide disclosures to the Net Zero targets that they've set. This cohort of companies represented 39% of the world's market cap at the end of the year 2023. Now, included in this list of companies are 845 North American-based companies that have approved targets or have made commitments under the SBTi. This group of 4,200 companies must track their carbon emissions in accordance with the TCFD methodology. They need technology to support their carbon tracking and decarbonization efforts.
Another significant non-regulatory driver is the reporting of emissions data to CDP. Carbon accounting and ESG reporting are required for many in the global supply chain. The CDP, and this is the nonprofit organization that manages a global disclosure system for companies to track their environmental impacts, reported in November 2023 that 23,000 companies, representing 50% of the global market cap, now report their emissions data to the CDP. Many organizations are investing in carbon and ESG disclosure because it's a requirement for them to keep their customers. The CDP reports that 330 major buyers with a combined purchasing power of $6.4 trillion ask their suppliers to disclose through CDP. These are not the numbers of an ESG backlash.
These numbers highlight a rapid increase of carbon disclosure as a requirement for companies to participate in the global supply chain. What many corporations have realized is, if you want to land new customers or retain the customers that you have, you must report on ESG and non-financial metrics. Now, while many organizations are maturing their ESG reporting processes well ahead of regulation, regulations such as the CSRD, we believe, will also drive process transformation and the purchasing of software. This slide highlights some of the many ESG regulatory drivers around the world. In many of the world's economic hubs, there are either existing or emerging sustainability reporting regulations. Specific to North America, we've seen a lot of activity in the past 12 months. Last October, the state of California passed two climate disclosure laws. As recently as last week, they confirmed the timelines are intact.
California's not the only state purchasing, excuse me, pursuing this type of activity. On a federal level, in March of 2024 , the SEC passed a climate disclosure rule. While there's a pending federal court case, and the SEC voluntarily put a stay in place, the SEC has also stated they will vigorously defend this rule. Back to the activity at the state level, there's a pending legislation in New York and pending legislation in Illinois. As of July 2024 , Illinois is developing legislation to require companies with over one billion in annual revenue to disclose and to verify their Scope 1, 2, and 3 emissions. This Illinois bill would require companies to start reporting Ja nuary 1 of 2025 , and to disclose their Scope 1 and 2 emissions annually.
They'll need to disclose their Scope 3 emissions within 180 days of the end of the calendar year. This bill would also require companies to obtain third-party assurance for their emissions reporting. We do not see any uncertainty or pushback with the regulations in Europe. The approved regulation with the largest market impact, with defined corporate requirements, and set dates of reporting and audit enforcement is the CSRD. I've made clear that CSRD is a game changer. This opportunity is highlighted by the following data points. The first cohort of companies that need to report, publicly listed companies with more than 500 employees, they need to report in 2025. In total, after all the phase-in periods, the regulation is expected to directly impact nearly 50,000 E.U. organizations and over 3,000 organizations in the U.S.
These requirements for the CSRD center around integrated reporting. This is the one report that combines the financial and non-financial information. Probably rings a bell. The CSRD also has requirements for assurance. That is, an integrated external audit of the information that will have to be reported on. This process transformation to be audit-ready provides the opportunity to utilize fit-for-purpose software like Workiva's. Finally, the CSRD requires digital disclosure. Organizations will need to disclose CSRD information utilizing XBRL in the ESEF taxonomy. All of these external drivers have pushed ESG to be one of our top booking solutions for eight quarters in a row. A few metrics that highlight this growth: we've seen an 85% growth in customer count in the past year.
We're seeing greater than 85% rate of partner delivery with our sustainability solution, and we now have more than 40% of the Fortune 100 using our ESG solution. It gets better. We recently expanded our platform with the addition of Workiva Carbon, and this new offering advances our ESG and our sustainability platform to support organizations' requirements for carbon accounting, for tracking and disclosure of carbon emissions for Scope 1, Scope 2, and Scope 3, and decarbonization. The launch of Workiva Carbon was supported by the acquisition of Sustain.Life, which we also announced on the launch date. Workiva Carbon is a platform play. This is a strategic addition to our platform that we believe will make our ESG solution and overall assured integrated reporting platform even more relevant. ESG plays a pivotal role in both landing new customers and account expansion on the platform.
The addition of carbon accounting, the most consistently regulated part of ESG, will only make our platform more valuable. We believe that adding carbon accounting capabilities will accelerate our success in ESG. Now, we've met with thousands of organizations on the topic of ESG, and we consistently hear that many prospects and customers prefer to purchase their carbon accounting and ESG reporting solutions from one single vendor. We've also observed that carbon accounting is an immediate need for those at the beginning stages of their ESG journey. In many of our deals, carbon accounting is the first solution they're looking to buy, and importantly, it's clear that carbon accounting is a core requirement for CSRD in Europe, for the proposed SEC Climate Disclosure Rule, and for the California climate legislation.
To provide more detail on our opportunity and a broader picture of the global demand for Workiva's ESG and Workiva Carbon, or what we now refer to as Sustainability Management, I'd like to bring up our SVP and Head of Solutions and Growth, Paul Volpe. Thank you, Paul.
Thank you. Thanks, Julie. Well, I'm really happy to be here to talk about sustainability, something that supports Workiva's mission and also something I care deeply about. But equally important, it's something that is a massive opportunity for growth for our business. I lead our solutions team, which includes financial reporting, GRC and ESG, and our incubation group. I've been here for 14 years. I started and helped us establish our market in SEC and financial services and SOX risk. And I was on the original team that started with corporate social responsibility in 2012, and a tremendous amount has changed since that time. Workiva's tech and the customers we've served across personas, departments, use cases, as well as the ever-growing group of advisory and tech partnerships that we have that make those things even better.
And I can confidently say to you all that we've never been in a better position to take advantage of this sustainability transformation. So today, I want to talk about three topics: CSRD, Sustainability Management, and Workiva Carbon. I spent the last two years in Europe, in the field, working with our team and our partners. I ate a lot of good food, gained more pounds than I'd like to acknowledge. But what I did see and what I did do is learned a tremendous amount working a lot. Two time zones is tough. But what I found in my career in tech is that in order to really understand the customers that you serve, you need to be close to them, you need to understand their challenges, you need to and to really get a sense of what they are facing.
And today, I'm gonna share a little bit about what I've seen and why I'm so bullish on this market. I moved to Europe to answer three real questions. First, is sustainability a big opportunity for Workiva? Two, will CSRD be an accelerator for technology adoption? And three, does Workiva have a differentiated solution in the market that can help us win big? And the conclusion is a resounding, "Oui!" As the French say, that's about all the French I learned during the time there. But the market for sustainability and technology is young, and it's accelerating. CSRD is a unifying driver for change in the E.U., but not just that, globally. Those of you who are here, start talking to these customers about how much they're talking to CSRD here in Denver. I have been, and they're listening.
Companies in the EU have been doing sustainability reporting for years. We sold our solution as a complement to financial reporting, and it was doing okay. It was doing well. We were really happy with it. But this addition of CSRD puts an elevated level of expectation that is driving motivation, as well as a common standard to drive change. CSRD is adding work, and it's also changing the way teams work. So we have a very well-developed customer base in Europe that has some really terrific names. We've been working really, really closely with many of them for years, and there's a funny thing happening. Within finance, they're starting to learn about sustainability.
I had a finance leader from a big EU bank said he's been spending more time talking to his sustainability lead than he does to his own wife. And the idea that these regulations were driving down the silos, even though they've been doing this work together or doing this as a company, they hadn't done it together. The expectations, in the 25 years they've been doing this, to of these rules and regulations, is requiring them to break those silos. I had another customer that said they've been doing this for years, but looking at CSRD, they only had 30% of the data points they needed to disclose. Okay, so you're asking, what specifically is different about CSRD than sustainability? It's a lot to unpack, okay? But I want you to take away three big things.
Number one, it's increasing the data points that need to be disclosed. Number two, it's forcing departments to work together. And three, it's creating a higher expectation of that level of accuracy. Integrated reporting with assurance is the mountain that they all have to climb to meet those regulations, and Workiva is gonna get them to the top. In the two years that I was working with many of these companies, I learned two important things. Number one, companies are acknowledging that technology is a must. Those that have started down this path, they think, "Oh, these existing tools, we've been doing this for years. That's fine." They're acknowledging it's not. The second is that our platform was built for this effort. We could very quickly adapt and align our platform capabilities. We've been making a lot of investment. We all know you.
You know we've been investing, but made us ready to be to market quickly. So we are only just beginning to capitalize on that time to market. So we also added some really tremendous capabilities that customers love, partners love, to differentiate and support these customers and partners in this effort. Number one, we really help customers assess and manage to these new European Sustainability Reporting Standards. It's a big, very prescriptive, comprehensive set of data and requirements. Not just individual metrics, but qualitative information about their business. Tell us about your climate risks. Describe your policies, okay? Narrative reporting, that's what we do. We also added fit-for-purpose capabilities to collect and organize those metrics and align them to standards.
We added design capabilities 'cause the people that you bring in to actually report this information makes the teams that we can serve even bigger. And now, Workiva ESG is a critical part of our offering in CSRD. Integrated reporting with assurance is hard. It means it's not just about a pretty report. I know a lot of you, just like the sausage-making, you get to eat that beautiful, tasty sausage, the Germans do a nice one, at the end. But it takes a tremendous amount of work to compile these documents. The expectations of the data that goes in there and these customers are realizing they need enterprise software to address it due to the complexity.
It's akin to the issues they faced in financial reporting as they looked at U.S. GAAP or IFRS, where they had decades to adapt it to these standards within their teams, but now they have years. Customers are telling us Workiva ESG has a differentiated approach because we can allow them to collect the data and it unifies people. Our suite is really resonating with our existing customers and with new logos. As an example, at an EU telecommunications company that had been using us for financial reporting for years, they bought ESG and GRC together in one integrated platform, replacing a bunch of legacy, sustainability, and risk tools, all because they knew now finance, sustainability, and risk teams can no longer operate in their individual applications. ESG drives new logos.
A Nordic company that we worked with, an energy company, had we been chasing them for a while. It wasn't until CSRD came along that that was a driver to finally act, and they replaced a variety of point solutions with five solutions at once. Mid-six-figure deals, and that there are numerous and the growing number of these opportunities. We continue to see higher win rates, bigger deal sizes, and strong momentum because of our readiness to help in CSRD. Our years of building a customer-obsessed reputation in major European markets is paying off. The transformation is giving us multiple places to establish our relationships and expand. It's creating a flywheel of momentum that we're super excited to take advantage of. Now, Sustainability Management is wider than just a set of capabilities around ESG reporting.
Customers and partners had been extending our platform to do carbon calculations. Many of these companies do all of that in spreadsheets, and they wanna move beyond that point. We added Workiva Carbon because we needed to capitalize on that single sustainability platform with integrated carbon accounting. We need to meet customers where they are and offer them one. But at the same time, also be open to the idea that they have existing technologies, or we have great technology partnerships, that we would be open to integrating the carbon technology that they already have or that fits their business.
Now, our sustainability capabilities can span customers to meet their needs end-to-end, from that innovative platform where our partners are building and doing unique things, as well as our customers, frameworks and standards, the system of connectivity that we've established, design, reporting, and now carbon accounting. So now we can really tackle reporting across traditional metrics like revenue, non-financial metrics like GHG emissions, and climate risks and opportunities, ensuring consistency in governance. This is what our customers have to deal with, and now we've got them covered across all data, differentiating us in the market. And CSRD, as this survey shared with us, is exactly having an impact outside of the EU. It's what we see in the field every day in North America and APAC.
Global companies, I just talked to four of them yesterday that brought this up, see CSRD as the standard driving their sustainability, program expectations. Even those that only are domiciled in the U.S., their, their competitors are not, their investors are not. They have to look outside and say, "This is raising the bar of the expectations. We have to look at how we address these and up our game and performance." The new Due Diligence Directive that's coming adds even more pressure on the supply chain. If you're not doing business directly in the E.U., sure as heck are probably serving somebody that does. This is only gonna keep increasing.
Just an example of a North American tech company that in 2013 I was lucky enough to bring on as a seller but for a $57,000 annual subscription for SEC and XBRL. Over years, they've added a bunch of financial reporting use cases, but we couldn't go beyond that until sustainability came along. They bought us for ESG and for sustainability report, but then because of these global regulations, they bought our GRC solution for ESG controls, policies, and procedures. Now three additional solutions pushing their spend well over $1 million in annual spending. A US multinational company that had been using us in financial reporting since 2011 . They started looking at ESG, and they saw the global regulations.
They saw that business transformation they were going under, and they looked across their team and said, "We need to restructure how our sustainability risk and finance teams work together," and the technology they all used, it helped us differentiate our GRC platform to get in there to win that workload, and then they added ESG, pushing their spend over $1 million. So this is a driving momentum that we see consistently, and now we're starting to see the impact of carbon. The interest has been very, very positive. We had a North American company, just over $1 billion in company, in business. Not massive, but they were going public. They were looking at financial reporting. They're a global company, operating in, and needing ESG.
But then they started to look at CSRD, said, "We need that, too. Hey, we also need carbon accounting." Four solutions at once. The rise of ESG and sustainability controllership is underway, and finance is playing a key role. We are in the unique position because we know the controllership, and the controllership knows us. Now, I'm very excited about carbon accounting, and I know it that sounds pretty ridiculous to most, if not all, of you. But regardless of the news cycles, climate is a critical component of sustainability, and it's growing. We acquired Sustain.Life for their emissions experience and their technology leadership. We've already made significant progress in the two and a half months. We launched Workiva Carbon day one, we seamlessly integrated it into our platform within days, and we'll have consolidated their global cloud infrastructure within months.
We're very pleased with the engagement from customers. You can see it, for those of us that wanna go see our booth here and see the activity, as well as our ESG booth, but also from our partners in the field. They are looking for more ways to grow their business and to help their customers. Now, I wanna take a quick minute, you know, to talk about Workiva Carbon. It's comprehensive. It has a robust set of capabilities to tackle emissions, to decarbonize, to address regulatory reporting. But carbon accounting is truly a team sport. It takes planning, looking at your sources of carbon and how they're changing, collecting, aggregating, calculating, sharing, and reporting. This takes organized collaboration across teams. You're probably thinking, "This is what Workiva does. Why didn't you just build this?
Why did you have to buy a company?" This is a bit of an eye chart, but the point is that the carbon accounting is complex. The Greenhouse Gas Protocol outlines multiple methodologies to calculate to differing levels of accuracy. You're essentially creating an emission system of record unique to each of your business. It takes a deep understanding of emissions, and it takes real-world experience of actually doing this to build tech in a way that makes it simple and easier to adopt. We bought a company that had spent three years solely on this, with a strong technology foundation, and climate experience, great people, and a comprehensive platform that we could take to our partner network immediately. It will accelerate our effort to capitalize on this market opportunity for the right market segment.
It's truly integrated reporting that will benefit all of the teams we serve. In finance, they'll be able to look at their investment and cost management decisions. Sustainability teams will be able to help decarbonize. Risk and compliance teams will be able to address regulation and mitigate those risks, all in one unified platform. Now, I wanna show a few things about Workiva Carbon, just to give you a sense of what it's capable of. It allows companies to organize emissions by categories. Think about your buildings, your vehicles, your transportation, your purchases. It has a friendly user interface that even companies early in their programs can understand. It drives automation. It has comprehensive data collection across Scope 1, 2, and 3 categories. It has thousands of connectors to pull data from your utility providers or from your ERP or your procurement systems.
It has AI-driven category mapping to help reduce the manual cost that goes into getting to your emissions footprints, so that you're ready to decarbonize. It has a sophisticated data foundation that supports a hybrid approach to the GHG methodology and to drive that accuracy that customers want, and comprehensive dashboards and analysis to drive down the cost savings and decarbonization. So what makes it better than the scores of standalone calculators and the many startups that are out there that are trying to tackle this problem? Well, it is truly integrated. Emissions data is now available to Workiva ESG and Workiva, the Workiva platform. From a well, from that single source of truth, you can drive assured data and metrics across your reporting, internal and external, across your dashboards, preserving traceability and auditability end to end.
The metrics are now available, also, connecting them to your climate policies, to your procedures, to your controls, ensuring the required governance, all within one unified platform. So there is a tremendous amount to be shared about Workiva Carbon and Workiva ESG. I would welcome that all of you here go by the booth, check out, and get some more demos. Visit our website. And that was my attempt to make CSRD and carbon accounting engaging. It's. I can't promise anything, but I did my best. Thank you very much. Back to you, Julie.
Thank you, Paul, for describing in more detail why we're so optimistic about our Sustainability Management opportunity. I'll say it again, Workiva is a platform company. Our platform is the single most competitive differentiator that we have, the only unified platform bringing together financial reporting, ESG, and GRC in one secure, controlled, audit-ready environment, and therefore, it's the only platform for assured integrated reporting. So we're pressing our advantage, and we're investing in the capabilities of our platform and accelerating our innovation to keep pace with the growing needs of our market. This week at Amplify, our product and our tech teams will be talking to you and the audience about new and enhanced platform capabilities. They'll focus on critical areas for customers, like connectivity and data management, collaboration and cross-team workflows. They'll focus on intelligent productivity tools, including Workiva Gen AI.
At Workiva, we take a very practical approach to Gen AI, both in our internal use of AI and in our new capabilities that we deliver to our customers. Internally, yes, we use Gen AI in all areas where we can deliver efficiencies and expanded value. This might include the productivity of our sales and engineering teams, automating routine tasks across our business processes, and enhancing customer interactions through features provided by our software vendors. Now, similar to the requirements we hear from our own customers, our adoption of Gen AI also includes consideration, of course, for security and data accuracy, so last year at Amplify, we launched generative AI capabilities on the platform and within certain specific solutions. Now, this included the ability for users to author and edit and rewrite content across our entire suite of solutions.
We leveraged the large language models from AWS, from Google, from Microsoft, across every workflow in our platform. And over the past 12 months, we've seen growing interest from our clients in the adoption of Gen AI. This year at Amplify, we're announcing some expanded Gen AI capabilities, so I do encourage you to check out our Gen AI sessions or speak to our product experts in the exhibit hall. Before I hand you off to Jill, I'll leave you with these key takeaways: Our opportunity is large and growing. Our strategy is relevant and intact. We believe we're well-positioned to capitalize on our growing opportunity. We see proof points in our results, large multi-solution platform account expansion deals with partners. And our solution - our solutions and our platform are resonating with partners and our customers, and we'll continue to focus on delivering both growth and productivity.
And now, yes, we are committed to staying in the lead and going after our growing opportunity. So I'm handing it over to you, Jill. Thank you.
Thank you. Thank you, Julie, and thanks to everybody for joining us here in Denver. For those of you that were able to make the trip, really appreciate it, and also thank you to everybody that's joining us online. We hope that you've gotten a lot of information so far. I've been enjoying it myself. It's always good to hear from everybody, and I hope that you get a little bit here as we dive into my section. So we're gonna still focus on our overall areas of focus. One, our opportunity, our dual focus, growth and productivity, and also our optimism. We're gonna discuss the metrics and drivers that support our opportunity. We're gonna review our operating model, and then I'm gonna reiterate and close with the reasons for optimism, and then we'll get into Q&A.
I know that you all have lined up questions and come up with some other good ones as we've gone. And so let's start with the growth trends supporting our opportunity. One main thing that is, I think that shows the ability of Workiva to execute over time is that we have had consistent subscription revenue growth. We've had a 22% CAGR over the last five years for subscription revenue growth. There's movement up and down. We have capital markets in there, was, of course, aggressive in 2021. But we have been able to perform and maintain subscription revenue growth.
And we, as you heard Julie talk about, we expect to be able to re-accelerate subscription revenue growth into the high teens to 20% over the next few years, in a consistent way, and we'll go into a little bit about that as I drive into the model, the operating model. One area that you heard a lot of focus on in Julie's discussion and in Paul's discussion is Europe. And we believe that European growth, growth into Europe, will be really important as we execute on our opportunity. Of course, CSRD, all the ability to expand with new logos into that geography.
What I'm showing here is that in addition to what Julie provided, that updated 17% of our total revenue coming from outside of the Americas in the first half of 2024. What I'm showing here is that in the first half of 2024, 15% of our total revenue was coming from EMEA. And this is the first time that we've peeled this out and giving you a look into EMEA-specific revenue. Just to clarify, this is 15% of our total revenue in Q1, in the first half of the year, came from EMEA. Now, you've heard me say a lot of times, I'm sure, but I'll reiterate it here, that we believe that we can grow European revenue to be 25%-30% of our total revenue over time.
We have the opportunity there. We have CSRD, and it's a pretty standard metric for a lot of SaaS companies. It's very reasonable, and so you do expect to see this continue to grow over time. The next slide here, and this is one that is familiar, but I wanted to call out a little change. We have, on a quarterly basis, provided you tranches of number of customers within certain annual contract values. So number of contracts that had annual contract value of $100,000, $150,000, and $300,000. So note that we decided that the $150,000-plus range was not providing as much value.
And so we have decided to remove that from our ongoing reporting, and we're shifting instead to add a top range of customers that have more than $500,000 in ACV. And you can see here over the past year, we had a 31% growth in the number of customers that had ACVs over $500,000. This is key. We're showing that we are closing larger contracts, successfully selling into our existing customer base and doing that, but also larger new logo deals, and you heard Julie give some examples of those. Another really exciting thing other than the growth at the top end is that 70% of our clients still spend less than $100,000 with us a year. And for me, that is showing nothing but opportunity.
If we can sell one additional solution into that base, we can continue to drive growth into our base, and so not only will we be able to do that, but there's also still room for expansion in some of these other larger contracts. As you've seen, we have a good history of being able to drive that growth. A little bit more detail related to those ACV cohorts. What we're providing here is the average ACV of all the customers in each of these tranches. So, for example, for the customers that spend more than $500,000 a year with us, their average contract value is over $900,000. So not only are they spending more than $500,000 with us, in general, they're spending significantly more than $500,000 with us.
We have customers over $1 million, over $2 million, over $3 million in spend every year, and it shows the success that we've had over time with significant large contract growth, selling on the platform, selling additional solutions. And you'll continue. Get ready for it. You're gonna continue to hear me talk about this trend 'cause it is so important for us. Case in point, this is a slide that you're familiar with, but I did wanna call out because it is so important. Last quarter, 67% of our total subscription revenue came from customers that had multiple solutions. This has continued to grow over time. Over the past three years, this has gone from 51%- 67%.
Familiar refrain, this growth comes from landing new logos with larger platform deals, multi-solution deals, as well as expansion into our base, and it is a key metric that we watch to ensure that we're still getting progress, but something that you all can use to drive your models as well. Looking at our new logo growth, it has not been steady. It does fluctuate, but selling new logos continues to be very important. I actually got a question in the last two weeks: "Well, why don't you just sell into your base? Why do you even... Why do you bother selling new logos?" New logo attainment is critical to our growth. If you think about growth in Europe, that's gonna come majority new logo growth. We just are newer there. Same in Latin America, same in APAC.
While we think that new logo growth is very important, of course, we do want to expand into our base, and we will. The way that we look at this is we expect to have about a 50% contribution to our revenue growth from customers, the new logos, and from account expansion. Last quarter, you heard me gave the statistic, 49% of our revenue growth in Q2 of 2024 came from customers who were added in the last 12 months. I give that metric every quarter, and it does fluctuate around, but a range of 40%-60% makes sense for us. We will be focusing on new logo growth not only in Europe and in Latin America and in APAC, we continue to sell new logos in the U.S.
And then also, sustainability, sustainability management, everything that Paul talked about, will also be a key way that we can continue to add new logos. Now, Workiva's revenue retention speaks for itself. This is a best-in-class, world-class metric for us. Strong gross retention. We aim to be over 96%, and you know that we over the past few quarters have been trending a little bit higher, 97%-98%. Which the comment that I always get is: "Well, don't you think you can push more on price if your gross retention is so strong?" Yes, we do think that we can push more on price, and we have continued to push on price.
And that's why we say that we expect this metric to be 96% plus, 'cause there is a potential for that to drop a little bit as we as we push on pricing. But our net retention is currently sitting above 109%. Now, over the next few years, quarters, we expect it to remain in that range, 109%-111%. It will fluctuate as we move back and forth between potentially having more new logo expansion in one quarter as opposed to selling into the base, but we're comfortable with where it's at right now, and we think it'll stay in this similar range. Which, by the way, is still a best-in-class across both these metrics and is a way that we continue to win.
If we didn't have this kind of retention, we wouldn't be able to be keeping such a good mix of selling into our existing base, and then this leads me into my favorite slide. This slide is showing historical customer cohort revenue, so this is a history of Workiva right here. The way that we have continued to grow the company in such a way is that we're providing excellent customer service. We're helping our customers develop and use the platform in new ways all the time. We have a strong platform that they can build links, they can build reports, they can build communication pathways and processes. Year after year, customer after customer, we have consistently been able to excel at pleasing our customers.
For those of you that are in the room, you probably have already had some conversations with them, but you can feel it, you can hear it, you'll hear them talk about it, and being able to grow customers that came on and joined Workiva in 2010, they're still growing today. A lot of the ones that Paul talked about and the examples that Julie gave, it's all what we're talking about here, and so these metrics, as we think about the opportunity in front of us, these metrics are what are giving us the confidence to know that what I'll talk about next, our operating model, to know that this is the right path forward to us. We have strong subscription revenue growth. We have global execution. We have continued expansion within annual contract values.
We have best-in-class revenue retention, and we have every right to be able to take advantage of the opportunity in front of us. Then we're gonna dive into now the operating model. I know all of you have been waiting for this. It's not only that. You know, we released an updated model in early August, and we've had some really great conversations with all of you over the past month, and so we wanted to make sure and give some additional detail, and then specifically around the revenue expectations as well. Diving into that really quickly, 'cause I know this is something that all of you will appreciate having this clarity. Very clearly, we believe that we can deliver high teens to 20% subscription growth over the coming quarters and years.
Conservatively, this implies that we'll be in a revenue range of $1.1-$1.2 billion by the end of 2027. Do we think we can outperform? Do we hope to be able to outperform that? Of course, we hope to be able to do that, but this is a conservative range of where we think revenue might fall within that, within that year and within the model. Leading to 2030, using the same growth assumptions, being able to grow the high teens to 20%, we believe that by 2030, we would be in a revenue range of $1.8-$2 billion. So coming into the margin targets. And so starting at the top of the model, gross margin, Julie mentioned, is one area where we did improve our 2027 targets.
We intend to be able to achieve this margin goal for our gross margin by shifting our revenue mix towards subscription. We're going to be reducing our low-margin setup and consulting services and shifting them to our partners. You heard Julie talk about that. We have been doing a good job of enabling our partners and building those relationships. That work continues, but as we do that shift, we will be able to be more efficient in the way that we're overall supporting our services. We're gonna continue to manage our cloud computing costs, and with all of these things and just other productivity gains we expect to be able to gain in gross margin within our CPX organization, we do intend to and believe that we can get this leverage and achieve our gross margin goals.
We maintained our R&D operating model target for 2027, and we believe that we can achieve the improved leverage that we will be required in order to achieve that goal by managing headcount in R&D, process improvements, and leveraging the latest in AI tools within the development organization, helping them to be more productive and efficient in the way that we code our, in our platform, so sales and marketing is one where you heard Julie talk a lot about how we plan to execute on our go-to-market over the next few years, and why it's so important for us to continue investing at the current rate as we are today through 2027. We have this opportunity that we need to take advantage of.
It's very timely, and we believe that by continuing to invest in sales and marketing at the current levels, that we will be able to drive better revenue growth in the long term and I'm sure that we'll still get some questions around this, and we, we'd love to talk to you about it but I do think that everything that Julie went through and how we're going to really focus on the way that we go to market, focus on those teams, and being more efficient in the way that we do so, we expect to be able to reach this goal and then drive leverage into the 2030 targets. Finally, on the G&A line, near and dear to my heart, we are driving efficiencies across all of our platform, all of our processes within G&A to drive leverage.
This is people, this is systems, reducing manual work, and we did improve the margin target in 2027 for G&A, because we were already nearing actually what the original target had been, and we knew that there was more that we could do to be even more efficient within our G&A organizations. Coming down to our overall operating margin target, this is not something that will be easy, that if we do nothing, that we will achieve this. Now, today, we already are focusing on productivity, focusing on efficiency. We're continuing to make changes throughout the organization to become more efficient, and planning and executing on different ways to leverage our existing resources and better methods. It's not something that we're going to push off and start next year.
We're already doing this, and we do need to execute to achieve our operating model targets. But we're committed to building a growing and a profitable company, and we're committed to driving progress against our operating model and expanding margins over time. One last thing I wanted to give is because I had gotten the question quite a bit, as to what our share-based comp expectations would be in the model. We do think that share-based comp will continue to be about 12% in the model both 2027 and 2030. Providing RSUs to our employees will continue to be a very important way that we compensate them.
And so, 12%, though, it was very reasonable and actually on the low end of where a lot of SaaS companies land for this metric, and we think that this is the right level for us. So closing up, as I wrap up, I hope this session has helped you really see and feel all the reasons we're optimistic. I'm optimistic. I'm a naturally optimistic person, but in this role, I actually do need to see the numbers to actually believe it. But these are the numbers. We have a strong history of subscription growth. We have best-in-class revenue retention. We have a large global opportunity, growing and addressed TAM. We have success in driving larger contracts. We have the ability to sell both new logos and expand into our base, and we will continue to drive margin expansion with leverage.
So all the things are here for us to be able to execute on our strategy and achieve our long-term opportunity. With that, we're gonna move on to Q&A, and Mike and Julie and Paul are gonna join me on the stage here. Mike's gonna-
Thank you, Jill.
Mike's gonna make it. There he goes. No, you're there.
All right, so, we're gonna do Q&A. We will do Q&A from both in the room here and also online. For those who are online, please leverage the Q&A feature of the online platform. For those of you in the room, we'll have two roaming mics, so please raise your hand if you have a question. When you do ask a question, I will ask you to please state your name and your firm. So let's start in the front row. We'll start in the front row in the corner right up here with Terry.
Terry Tillman from Truist Securities. Thanks for all the insight. A lot of work went into that, and we appreciate all the insight. It's a two-parter, it's never a single parter. So first, in terms of carbon, it's exciting you talked about it yesterday, Julie, and, you know, so you unveiled that. I'm curious, what did carbon deal sizes potentially look like? And now it's actually pretty powerful. Now, it's a sustainability suite. What do those deal sizes look like? And the second question, going in a different direction, is, I appreciate the sales and marketing targets, but the reality is, you're getting more of these Big Four advisory firms. We talk to them. They're bringing you into deals, they're sourcing deals. Couldn't that offset some of the need to spend more money in sales and marketing? Thank you.
I'll let Paul comment on the deal sizes. You're out in the field, Paul, and close to it. I will say on the Big Four, even with the Big Four, we co-sell, so we need to be on teams with them. Yes, they source the deals, and we co-sell, but there's opportunities globally, and you saw again, our... There's the time element to the opportunity. We wanna go quickly, and the CSRD is there, and we're in the lead, and we wanna stay in the lead, so we want feet on the street. Working with our advisory and consulting partners, yes, and we wanna go after them as quickly as we can. So we're taking all angles, and we're moving on the opportunity that has a significant time element to it. We wanna stay in the lead. We wanna go after the growing opportunity.
Just as far as the deal sizes, it's not really about the deal sizes for us. It's about, you know, first, on the carbon, the add there is really about multi-solution. So the specific numbers we're still early, so I'm not gonna be able to speculate on that. But what I can tell you is that the ADS for ESG is going up because of the comprehensiveness of our solution. Obviously, adding carbon to that adds one more component to a comprehensive platform that can truly address the majority of needs that these customer segments want. So I gave one example of a North American company that bought four right out the gate. Those are the things that we really like to see.
Those are the things our partners are very interested in seeing because that gives them a great opportunity to help a customer across their business. For right now, all I can really say is it's increasing the win rates of what we're doing in ESG, and it's also uplifting on the multi-solution side of things.
I will say, as you heard in my remarks earlier, we were coming up against opportunities that were the case where there was a carbon-first opportunity, and we were actually being pushed out of those deals. They wanted a single vendor, right? With the carbon accounting and ESG. So that's why I describe it as the platform play. It is a platform play to enable us to get in the opportunity and sell a suite in ESG and a suite integrated reporting.
Yeah, just one other data point on the carbon. I was talking to some people last night about this. It's not typically just a single purchase, right? This expansion opportunity, and Paul had highlighted that earlier, right? You might start with spend-based, you might go to a location-based, activity-based methodology of carbon, and then mature into vendor-based. Going through that journey, since we are a metric-based model, you may actually over time increase your spend on carbon even within a single customer. Second question up here to Rob here.
Thank you. Great. Thank you. Rob Oliver with Baird. I'll echo Terry's comments. Really appreciate all the detail. So my question, Julie, is I think you described the sales and go-to-market as expansive and expensive. And I can appreciate the focus on growth and productivity that you guys have laid out here, but can you just help us reconcile the commitment to drive more efficiency and productivity within the sales force and that rise in sales and marketing that is within your target model? And I guess, more specifically, do you expect to see some of the benefits of that increased productivity and efficiency within the time frame of that model? In other words, that could represent upside.
And then my follow-up question is just regarding the go-to-market and some of the changes, you know, how you plan to minimize disruption, you know, given changes in territories and other things that could be disruptive on the sales front. Thank you.
Sure. So first, the opportunity with the sales organization, and we've been talking about this. We have solution sales specialists over what we call overlays, and we have account owners, account executives, who are responsible for over all of our portfolio. So we've been bringing both into opportunities, and it's a very expensive sales model. So over time, we will shift over and basically change the ratio of account executives and solution specialists, and that will. That is our mode of operation, and we're not doing it overnight. We're doing it over a period of time, so that will help with the change and the disruption. We're doing it thoughtfully. We brought in a new sales leadership who have, you know, comfort with these models.
So we're confident around, you know, lack of disruption here and the way we're going to approach it. The other opportunities are for territories, as I described, and this is a pretty, pretty standard model for SaaS companies as they scale, is shrinking the territory size. And again, there's opportunity for these sellers to focus on the accounts that they have. And as we've all described, there's opportunity in these accounts for account expansion, building the trusted relationship, and expanding accounts. So this isn't that we will be disappointing sellers or, you know, a significant change in approach for them. There's opportunity for those sellers across the board, so we do not expect a significant disruption, no.
Yeah, Paul, you want to add on?
Yeah, just from the experience from the field, spending a lot of time with the sales reps in customers, in opportunities, this convergence of the teams between finance and sustainability, and risk, the amount that we used to have to go and treat them individually meant we had to have specialists in a broader swathe of mapping. Today, this convergence also means we have an opportunity to serve them more holistically across the group, which is, it's just a natural evolution of our sales teams to match what we're seeing on the go-to-market side.
Okay, let's go to this side of the room here. Maybe start in the front row. Let's start in the front.
Dan Jester, Bank of Montreal . So, you know, first, I appreciate the update on the ESG TAM. Maybe can we dive in a little bit deeper about the drivers of the change relative to the last update, beyond just the $1.5 billion you talked about for carbon? And then secondly, you know, this time last year, Julie, you know, you had a bunch of new executives that you had brought on in the organization to sort of help scale and mature the business. I think you've talked a little bit about that today with the go-to-market changes, but maybe any other sort of areas that you would call out have been a focus, as you've been in the CEO seat and sort of modernizing and building the momentum of the organization at a high level. Thanks.
Do you wanna start with the,
Sure
... sales changes, and I'll take the TAM?
Sure. So we have brought in new leadership, a second layer of leadership, essentially. We're going across the organization, bringing in leaders that have seen scale, been with companies that have experienced scale, and know what it's like to work in larger companies and operate at that scale, and we're doing it across the organization, certainly on the commercial teams in the go-to-market side. We've been doing that over the course of the past year, and we've seen more discipline and more rigor as we execute, focus on performance and performance management and productivity. We are doing that. We also are. It's not just about the people side of things. It's also efficiency and effectiveness within the organization and automation.
We recently brought in a CIO, Kim Huffman, who's going around, you know, every function in our organization, ensuring we're using the right tools, leveraging the right capabilities. We talked about AI previously. So across the organization, we are focusing on efficiency, some discipline, some rigor, you know, operating effectiveness. So that contributes as well in combination with the leadership. It's why we feel confident around the targets that we set out for productivity. Still room for improvement, where we're doing that as we're focusing on the growth opportunity.
Yeah, and specific to the TAM question, we released our first ESG TAM in 2021. We were relatively new to the market, and the market was forming, right? And this was pre passing the CSRD, pre having any experience on deal size and those things like that, right? So in addition, you know, you basically look at that increase from the $3 billion, you know, to the numbers we have now, right? It is primarily around the number of targets and also the deal size, right? So we have a lot more fidelity on the actual, you know, willingness to spend in the market. And, you know, the question was asked earlier, what are we seeing on deal sizes, right?
I mean, yeah, we have some deal sizes that are, you know, at times, you know, in more than the mid-five figures, but we are going all the way up to mid-six figure now in ESG deal sizes, right? So we're seeing a large number of targets. We didn't have any idea of that back in 2021. So it's number of targets, you know, with even CSRD in Europe, 50,000 targets, plus, you know, all the state laws and things like that. So we've really put that in there. We believe it's still conservative, right, compared to where this market is at. But we believe it deserved an update to reflect what we're seeing right now. Right, front row, question up here.
Steve Enders with Citi. On the sales investments that are being made, how much of those are being centered internationally and on capturing the opportunity in Europe and CSRD coming here? I guess secondarily, you mentioned price as being another lever for growth here. How is it maybe gonna be different moving forward, and kind of what contribution should we expect to the growth equation in the back half of the decade?
All right, Julie, you wanna take the-
I'll take the price.
... where the sellers are coming from? Or you, do you have or-
As far as the sales organization, we are going to be investing across the globe, but a good amount of the investment will be in Europe. We do wanna make sure that we have the right coverage to be able to go deep on CSRD and make sure that we're building the relationships with those customers to not only sell them that first solution, but talk to them about the platform. It'll be important, but not the only place where we're going to be putting those resources. It will also be in the U.S. and Latin America and APAC, you know, overall.
On the pricing side, I will say that while we've been focusing on price increases and certainly at renewal time and so forth, and we've described that, our focus is on value for the customer, and at a renewal time, we'd rather sell multi-solutions, additional solutions, than you know, talk to the customer about getting another X% price increase. Our focus is on value, it's on account expansion, it's on growing the, you know, the account again with the growth of our solutions.
You know, I just wanted to comment a bit on Europe just since I got back. You know, what we have done is it's not just about putting people in market, it's about having the customer in the market ready to make them productive. The work we've done, and the relationships and the customers we've earned in Spain, in Paris, in Berlin, and Frankfurt, in the U.K., each one of these markets is very unique. Every country looks at themselves and wants to know where are their peers using your technology because they think much longer term.
We've established terrific logos and reputations in each one of those major markets, and now at this opportunity, it's just a natural place for us to be able to make those people really productive, and take advantage of that opportunity.
Excellent. We'll go to the side of the room. Any questions in this other room?
Thanks, everyone. This is Alex Sklar with Raymond James. Julie or Paul, just want to follow up on your answer to Rob's question earlier. It sounds like just given the ability to reduce the level of overlays, you can actually grow the rep count far faster than the subscription growth you've kind of talked about over the medium-term targets. Is that the right way we should think about it? Kind of mix of reps might be in excess, but in aggregate, you kind of stay within the framework. And then I had a follow-up on that.
I didn't hear the first part of the question. My apologies.
It's just the idea that you spoke to. You have a lot of overlays currently. You have the direct AEs, and then you have some overlays.
Sure.
And you said you'll be able to pull down the number of overlays. So should we think about rep count, the AE bucket within sales and marketing as a whole, up in excess of the whole subscription growth rate?
Yes, we are going to be expanding the number of account execs, but more than just to compensate for a decrease in the number of solution specialists or sales solution specialists.
Okay. And then maybe just a second part to that. So you spoke to structure, staff, and strategy. So if we think about the timeline, how far are you to date kind of on the structure piece? Does that kinda need to be in place first before you really focus on the augmenting the staff, or are you doing them all concurrently? I just... More color on kind of the timeline, specifically the structure piece.
Dual approach. That's why we've described throughout the discussion today, we're taking a dual approach to growth and productivity. We could wait to get more productive before we went after growth, but again, the time element to our opportunity is there, so the time is now to go after it. So we are concurrently focused on growth and the productivity piece.
In this other room?
Hi, thanks for hosting us today. This is Jake Roberge from William Blair. Just as you make these sales investments, could you talk more about the traction that you're seeing in EMEA? And maybe just how win rates and your right to win there compare to the U.S., because you obviously have SEC reporting in the U.S., but as CSRD ramps in Europe, I, I'm sure the integrated reporting message starts to resonate more. So maybe can you just talk about the right to win and how your win rates compare in Europe, in the U.S. versus Europe?
Yeah. So, while I'm not gonna give specific numbers, what I can tell you is, as you would imagine, in a market like Europe, where we had work to do to build a reputation, and product market fit, our win rates were lower in ESG, in particular, in the U.S. What we've seen is, those have caught up, and in some segments actually surpassed the U.S. win rates. So we're really pleased with the performance we're seeing based on our product market fit and the market's recognition of their needs.
I will say, too, it's partners. They help with the win rate and more leverage, leveraging of those advisory and consulting partners. It's also our own execution and the sales capabilities that we've described we're enhancing. So it's different profile of seller, it's leveraging partners, and it's the platform resonating, it's the CSRD opportunity and the need for the first cohort of companies that need to comply, reporting in, you know, Q1 or Q2 of 2025. All of these reasons are behind, you know, accelerating win rates.
Hey, guys, Ryan Krieger from Wolfe Research. So first, on generative AI, Julie, you talked about introducing a couple new capabilities this week. So what do you see as the most kind of additive to the platform or differentiated that, you know, you view as monetizable going forward? And then, Jill, for you, on linearity of subscription revenue, you know, obviously, we're gonna see acceleration, but, you know, is that acceleration gonna be linear from where you guided this year to the 2027 target?
Sure. I'll kick off with the AI question. The way we look at AI is we just wanna bring the new technologies to make them available to our customers to ensure they're operating effectively with the best capabilities that we have. We're taking an iterative approach to it. We're bringing them to the customers, we're watching how they leverage it, and we'll provide additional capabilities, enhancements, where they're using it the most. So we're watching and responding. The feature that I think is most additive, as you ask the question, is really the ability to leverage customer data. We and previously brought in the large language models. As I described, you can write, you can edit, you can author. We have the ability to do an ESG draft disclosure. You can create something like that.
What we are launching now, today, and you'll hear at Amplify, is we're now actually getting the ability to leverage these capabilities, generative AI capabilities, going into the customer's specific data, and I think that is a step change for us, and we'll continue to do more of that. But that's a change that I think is different than the others.
And as far as the revenue growth, we still will continue to have some seasonality quarter over quarter in bookings. We did talk about our Q2. We had a record bookings quarter, and that did drive the increase, the increased guide for 2024 revenue. Going through 2025- 2027, we can't say because of all that, because there could be some fluctuations in individual quarters and individual markets, potentially driven by some of the timing of regulations, timing of other unknown factors. I can't say that it would be a direct linear drive towards that, or that we don't see some amount of fluctuation around the high 20 s to the high teens to 20% range.
And so I think that the guidance would be that it likely will continue to trend around a little bit just because it's unlikely to just be a steady increase towards that. We expect to be able to drive towards that 20% as much as we can, but it'll still move around a little bit.
Any additional questions? Oh, hands go quickly. Let's start on this side, and we'll go straight across.
All right. Dan Jester, Bank of Montreal again. So there's two comments that you made today that I wanted to sort of dig in on. So you talked about having carbon as part of the ESG solution is going to help you unlock additional customers because they wanna have one vendor. But you've also said that you've already sold ESG to 40% of the Fortune 100, and that happened before you bought the Sustain, the carbon solution. So I guess this is a question of: Is this like for smaller companies in Europe? O r kind of help us understand kind of the moving pieces here? Because it seems like you're already doing really well with large companies in ESG before you bought the carbon accounting solution.
Paul, you want to.
Yeah. So, look, Fortune 100 is 100 companies. So we're really proud of and the of the work that we've done to serve our largest customers. They also have the ones that have the most complexity. But we didn't buy it for them. We bought it for the other. If I could do the math, the other 5,900 companies that exist, that might be starting their journey at a different maturity point. The market for this technology is evolving. If you look at the technology that's available on the market, even across these Scope 1, 2, and 3 categories, many companies are looking for solutions on just one portion of that.
We might just want to do our Scope 1 or Scope 2, or we've got this really complex supply chain if we're in agriculture, and so I need the certain category within Scope 3. There are many companies that really specialize on those nuanced differences, on the difference between palm oil in Indonesia versus Thailand, okay, and the energy and emissions. That's not what we're looking to serve. So there are also thousands of companies that are at the beginning of this journey because of they're covered by the regulations, or more importantly, they're in the supply chain of a large company. If you know, if a large company is working to address their emissions footprint in Scope 3, they are asking their vendors to provide. In fact, that's why Sustain.Life started.
They were all at Walmart, part of the Jet.com acquisition. They saw the need for Walmart asking their vendors to provide, how do we create a easy-to-use place to get your Scope 1 and 2 categories so that you could give it to your, supplier? Because those are increasingly, we see it, we answer, as a software vendor, particularly in Europe, our answers from our sustainability report go into our RFPs, go into questionnaires from our customers. So, the ripple effect of these, expectations from investors and from the market and from the big, companies, is just cascading down, and that's why we, that's why we acquired the company. That's why we want to integrate it, so that we can start them on the journey.
I get very excited because I've been here a long time, and the idea of once they start to experience some of the relationships we have, to really reduce that cost of sale, to do an add-on to the financial reporting, you know, we've been working in public companies. We have lots, a growing number of private companies, but this gives us an avenue to go after that private segment in a way that we've never had to do. The add-ons, the winning for back to the financial reporting, is, and taking our core platform that we've been doing for years, that's where I spent in our growth team, was working in global statutory. It was helping take our existing financial reporting technology to new markets and serving global financial teams.
Turns out they have a lot of the same problems. Without more tech spend, we can establish that. So there's a tremendous amount of opportunity once you land these customers across our trifecta that we get very excited about.
Excellent. Now, next question.
Steve Enders with Citi again. I'm gonna ask about a comment that was made on stage during the keynote yesterday about a new customer that you signed that mandated all new software companies they work with to have some AI strategy and leveraging that. But I just want to ask the question of, I guess, you know, if you think of your customer base, kind of where are they on this journey for AI adoption? Like, are we still in that camp of customers saying that you need to have some AI strategy, or is it still kind of the more conservative, you know, CFO, maybe they are a little bit more hesitant to want to adopt new technologies?
Sure. It's hard to know for sure the mindset of all of these companies. But we're seeing what we're doing, which is essentially you're leveraging it where it makes sense. I mean, some companies are charging and wanting to monetize it and doubling the cost of their capabilities and solutions, and you look at it and say, "Wait a minute, am I getting the ROI from it?" But in other cases, we look at our vendors. There's some great opportunity there for improving productivity and efficiency. So we're doing that, and we see our customers doing that. I think if you talk to other software companies, they're probably saying the same thing in most industries. It's there. It's usable. Look, we're not charging for it.
We add it on where we can, and I think it's, you know, the practical approach seems to be winning the day as we see it across the board.
Excellent. Then final question up here front.
Yeah. Terry Tillman at Truist Securities again. I think, Julie, you were talking about all the different tailwinds. One of them is this ERP cloud migration cycle, and I think you talked about a disclosure management opportunity that was basically driven by an advisory firm with, I think, an SAP shop. How actionable is that cloud ERP, cloud migration cycle for your all's business? How visible is it in the pipeline, or is it gonna be... You know, they're large deals, and they're gonna be uneven. Just trying to understand how much this could be in the normal course of business going forward. Thank you.
It is a significant opportunity for Workiva, and we have good relationships with our ERP colleagues. It varies on when those ERP transitions come, but it is a significant trigger point, right? For an event for us to sell our solutions and capabilities. There really isn't, when you think about the S/4HANA, there isn't a disclosure management capability there. So we are, when we are involved with our partners, especially. I mean, those Big Four partners are involved in these large transformations, and they're there, and they can make our strong relationships with them. They make recommendations that Workiva be part of the disclosure management solution for these companies.
Where these large transformations are occurring, we have strong partnerships with those Big Four firms and advisory that are advising and leveraging their trusted relationships with those companies.
Excellent. Thank you, Julie. We are closing in at the top of the hour, so I first off would like to thank all those that you joined online. We will be concluding our online webcast today, so thank you very much. For those of you here in the room, we will be serving lunch right outside the room here, and members of Workiva management will be here to continue on some of the conversations and welcome the conversations we're gonna have here over lunch, and we are also gonna be hosting a management happy hour later today as well. Thank you all for both in-person and online joining, and this concludes our formal content for today, but again, thank you very much.