Is Workiva’s Slide Creating an Opening for Long-Term Investors as a Major Fund Initiates a New Stake?

New York City-based Praesidium Investment Management Company initiated a new position in Workiva Inc. during the third quarter, adding 87,921 shares in a stake valued at $7.6 million as of September 30.

What Happened

According to a filing with the U.S. Securities and Exchange Commission dated November 14, Praesidium Investment Management Company disclosed a new position in Workiva (NYSE:WK). The fund reported holding 87,921 shares, with a market value of approximately $7.6 million as of September 30. The addition accounted for approximately 1.5% of the fund’s approximately $512.7 million in reportable U.S. equity assets.

What Else to Know

Top holdings after the filing:

• NYSE: JBL: $75.8 million (14.8% of AUM)
• NASDAQ: INTA: $71.3 million (13.9% of AUM)
• NASDAQ: FROG: $70.8 million (13.8% of AUM)
• NYSE: NOW: $61.9 million (12.1% of AUM)
• NASDAQ: ALKT: $50.1 million (9.8% of AUM)

As of Tuesday, Workiva shares were priced at $90.73, down 7.5% over the past year and well underperforming the S&P 500, which is up 13% in the same period.

Company Overview

Company Snapshot

Workiva Inc. is a technology company specializing in cloud-based software for enterprise compliance and regulatory reporting. The company leverages its proprietary platform to help organizations manage complex data and reporting requirements efficiently, supporting digital transformation in financial and operational processes. Workiva's scalable solutions and focus on integration provide a competitive advantage for customers navigating evolving regulatory landscapes. It serves public and private companies, government agencies, and higher-education institutions.

Foolish Take

Workiva’s latest results give important context for why an investor might be building exposure now: the company is finally showing the operating leverage it has been promising for years. In its most recent quarter, Workiva delivered 21% revenue growth to $224 million and posted a GAAP profit of $3 million, a sharp improvement from the $17 million loss a year earlier. Subscription revenue rose 23%, and non-GAAP operating margin expanded to 12.7%, up from 4.1% last year, signaling meaningful progress toward sustainable profitability. The company also raised full-year revenue and margin guidance.

For long-term investors, the combination of accelerating subscription growth, strong customer expansion, and improving margins could make Workiva more attractive despite the stock’s lackluster performance over the past year. Shares remain down 7.5% over that period and still sit more than 40% below 2021 highs—a reminder that expectations have reset significantly.

Praesidium’s new position represents a modest 1.5% slice of its portfolio. But given Workiva’s valuation reset, rising profitability, and ongoing shift toward higher-value enterprise contracts, this entry could reflect growing conviction that the bottom is in.

Glossary

Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
Reportable Assets: Assets that must be disclosed in regulatory filings, typically U.S. publicly traded securities.
Stake: The ownership interest or percentage held in a company by an investor or fund.
Filing: An official document submitted to a regulatory authority, such as the SEC, disclosing financial or investment information.
Cloud-based Platform: Software and services hosted online, allowing users to access tools and data remotely.
Regulatory Reporting: The process of submitting required financial and operational information to government agencies or regulators.
Audit Trail: A record that shows the sequence of activities or changes made to data, supporting transparency and accountability.
Data Integration: Combining data from different sources into a unified view for analysis or reporting.
Digital Transformation: The adoption of digital technology to improve business processes and efficiency.
Proprietary Platform: Technology or software owned and controlled by a specific company, not available for public use.
Scalable Solutions: Products or services that can handle increased demand or growth without losing effectiveness.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intapp, ServiceNow, and Workiva. The Motley Fool recommends JFrog. The Motley Fool has a disclosure policy.