Workiva Inc. (NYSE:WK) Q3 2019 Earnings Conference Call Transcript
Nov 06, 2019 • 05:00 pm ET
J. Stuart Miller
an operating loss of $3.8 million in Q3 2018. Workiva's operating margin contracted 220 basis points in the latest quarter but was about 230 basis points better than our guidance.
Turning to our balance sheet and cash flow statement. At September 30, 2019, cash, cash equivalents and marketable securities totaled $485 million, an increase of $347 million compared with the balance at June 30, 2019, driven mainly by our issuance of convertible notes in August. In Q3, 2019, net cash provided from operating activities totaled $4.7 million compared with cash provided of $7.6 million in the same quarter a year ago. Remaining performance obligations continue to differ from deferred revenue as we implement multiyear contracts with annual billing terms.
Turning to our guidance. For the fourth quarter of 2019, we expect total revenue to range from $75.3 million to $75.8 million. At the midpoint, we are guiding to a growth rate of 17.2% for total revenue in Q4 compared to Q4 last year. We expect revenue from professional services to return to single-digit growth in Q4. We expect non-GAAP operating loss to range from $8.3 million to $8.8 million reflecting investment in the growth vectors, we mentioned earlier.
For full year 2019, we are raising guidance for total revenue to a range of $292.9 million to $293.4 million. At the midpoint of this updated guidance, revenue growth for the year is 20%. We expect non-GAAP operating loss to range from $13.6 million to $14.1 million. We continue to believe operating cash flow for full year 2019 will be in the low $30 millions [Phonetic]
Turning to 2020. So on a preliminary basis, we expect total revenue in 2020 to exceed $340 million. Our preliminary guidance reflects that a substantial majority of our subscription revenue will be priced on the solution based licensing model by year-end 2019. We expect the growth rate of subscription and support revenue to continue to outpace the growth rate of professional services revenue. We expect our margin on non-GAAP operating loss to decline in 2020 relative to 2019 consistent with our planned investments in our growth vectors. We plan to offer detailed guidance on our outlook for 2020 on our next call.
And I think, we're now ready to take your questions. And operator, we're ready to begin the Q&A session.