Challenges await Workiva’s public entry
Maintaining Workiva’s fast growth while turning a profit won’t be simple, even after the multimillion-dollar infusion, said Rett Wallace, co-founder of New York investment research firm Triton Research.
“It’s not going to be easy,” Wallace said. “The problem they’re going to have is they have to either build products they don’t have to grow within their existing clients or expand into markets they don’t really serve.”
Wallace said his firm does not expect Workiva to turn a profit soon, citing models done in anticipation of the IPO. “Even in the optimistic case here, it doesn’t get you to profitability by the end of 2016,” he said.
Wallace said Workiva already has gained a lot of ground in its market and attracted high-profile customers. However, that can mean Workiva will have a more difficult time landing new clients in the future, Wallace said.
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