Workiva Inc. (WK - Free Report) recently formed a strategic partnership with Business Wire, a globally recognized name in press release distribution and regulatory disclosure. The partnership is related to streamlining the process of submission of earnings releases and other financial disclosures by companies directly to Business Wire.
Workiva’s flagship platform, Wdesk will be used for the submission via a secured file transfer process. Among the companies that use Wdesk, Chatham Lodging Trust (CLDT - Free Report) , Bank of Marin (BMRC - Free Report) , Lithia Motors, Inc. (LAD - Free Report) and LCNB Corp. will be the first few ones to use the service.
Matt Rizai, chairman and CEO of Workiva stated, “Our customers no longer have to take the risk of emailing their material, nonpublic information to third parties for submission to wire services, which improves security and reduces the chance for errors.”
We believe that this additional feature of the Wdesk platform will increase its adoption rate going forward, thereby helping the company to perform better. Shares of Workiva have gained 45.7% year to date, significantly outperforming the industry’s 19% rally.
Wdesk Witnesses Steady Adoption
We note Workiva’s consistent performance is being driven by the traction gained from Wdesk. In Gartner’s June 2017 Magic Quadrant for Cloud Financial Corporate Performance Management Solutions (FCPM), Workiva was named a Leader, which has strengthened its position further.
Notably, Wdesk is in compliance with the regulations of the Sarbanes-Oxley (SOX) Act, which looks after the protection of investors against fraudulent activities by companies. This makes it even more lucrative for its customer base, which includes the likes of Fastpath, Hi-Crush Partners, Dr Pepper Snapple and 2U. Its most recent SOX deal is the partnership with EisnerAmper, one of the top 20 advisory and accounting firms in the United States.
The platform also witnesses strong demand from state and local government and universities. During first quarter 2017, Wdesk was used to create and submit 75% of all Inline XBRL filings as well as 53% of all XBRL facts with the U.S. Securities and Exchange Commission (SEC).
We believe that the recent partnership with Business Wire will enhance its offerings as the company’s clients will find a safer and less time consuming way of submitting earnings releases and other important documents for disclosure to Business Wire. This process, which does not involve any third party, is expected to provide the company a competitive edge against its peers like Xero, Vivid Reports and Intacct.
Workiva currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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