Workiva (WK) Fell Despite Reporting Strong Results

3 months ago 21

Soumya Eswaran

Tue, Apr 29, 2025, 6:32 AM 3 min read

Conestoga Capital Advisors, an plus absorption company, released its first-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equity markets started the twelvemonth with a rally owed to optimism astir a beardown system and expectations of moderating ostentation and little involvement rates. However, concerns implicit slowing net from large Technology companies, geopolitical tensions, and an upcoming announcement connected tariffs led to a crisp diminution successful equities by the extremity of the archetypal quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) successful the archetypal 4th compared to the Russell 2000 Growth Index’s -11.12% return. The Conestoga SMid Cap Composite returned -5.73% compared to the Russell 2500 Growth Index’s -10.80% return. The Conestoga Micro-Cap Composite returned -8.24% vs the Russell Microcap Growth Index’s instrumentality of -17.75%. Finally, the Conestoga Mid Cap Composite returned 0.96% (net), compared to the Russell Midcap Growth Index’s -7.12% return. Please cheque the apical 5 holdings of the money for a amended knowing of their champion picks for 2025.

In its first-quarter 2025 capitalist letter, Conestoga Capital Advisors highlighted stocks specified arsenic Workiva Inc. (NYSE:WK). Workiva Inc. (NYSE:WK) is simply a bundle services institution that offers cloud-based reporting solutions. The one-month instrumentality of The Workiva Inc. (NYSE:WK) was -3.44%, and its shares mislaid 6.80% of their worth implicit the past 52 weeks. On April 28, 2025, The Workiva Inc. (NYSE:WK) banal closed astatine $73.44 per stock with a marketplace capitalization of $4.095 billion.

Conestoga Capital Advisors stated the pursuing regarding The Workiva Inc. (NYSE:WK) successful its Q1 2025 capitalist letter:

"The Workiva Inc. (NYSE:WK) is simply a planetary bundle services institution that provides a cloud-based level for fiscal reporting, ESG, audit, risk, and compliance. WK was a person successful the 4th quarter, but shares were pressured successful January arsenic the European Union constricted the scope of their Corporate Sustainability Reporting Directive. This was fundamentally a mandated reporting model for ESG, which has been 1 of WK’s apical booking solutions for the past two-plus years. It turns retired the alteration successful scope volition not impact the enterprise-sized concern targets, however, shares remained weak. WK did study beardown 4th fourth results."

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The Workiva Inc. (NYSE:WK) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge money portfolios held The Workiva Inc. (NYSE:WK) astatine the extremity of the 4th quarter, compared to 20 successful the 3rd quarter. helium Workiva Inc. (NYSE:WK) generated subscription gross maturation of 22% and full gross maturation of 20% successful Q4 2024 compared to Q4 2023. While we admit the imaginable of The Workiva Inc. (NYSE:WK) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.