Workiva (WK - Free Report) and Broadridge Financial Solutions, Inc. (BR - Free Report) recently entered into a strategic partnership to simplify financial reporting processes.
The integration of Workiva’s flagship cloud-based offering, Wdesk platform, with distribution and financial communications capabilities of Broadridge will provide investors’ with enhanced visibility into companies’ end-to-end financial metrics.
The integration will enable Wdesk users to send Securities and Exchange Commission (SEC) filings and other proxy statements securely to Broadridge, in turn improving shareholder communications. Notably, the integration is scheduled to be available in the first quarter of 2019.
Wdesk users are anticipated to benefit from robust printing, design and distribution capabilities of Lake Success, NY-based, Broadridge, a fintech company focused on investor communications.
We believe the partnership is in sync with Workiva’s efforts to strengthen its Wdesk offering, which is a notable third-party SEC filing platform. In fact, in the words of CEO of Workiva, Marty Vanderploeg, “Our partnership will help our customers improve security, save time and reduce risk in their SEC and shareholder reporting processes.”
What Investors Should Know?
Talking about the price performance, shares of Workiva have returned 51.3% year to date against the industry’s decline of 7.7%.
Workiva’s persistent focus on developing its Wdesk cloud platform, which is utilized for collecting, integrating, managing and analyzing business data, is aiding it in gaining traction.
We believe that since Workiva’s platform is mostly used for auditing and accounting purposes, the new integration will enable it to strengthen growth prospects and expand presence in the financial services application market.
In fact, the Financial revealed that per a Market Insights Report, the global financial services application market will be worth $117.1 billion by 2023 witnessing a CAGR of 7.9% from 2018 to 2023. The market was valued at $74.35 billion in 2017.
Furthermore, according to Gartner, the global SaaS market is anticipated to witness a CAGR of 18.1% to reach $117.1 billion in 2021 from $60.2 billion in 2017. We believe Workiva is well poised to capitalize on growth opportunities in this domain.
Additionally, Workiva continues to expand its existing customer base with its accounting and compliance software. This expansion in clientele along with a widening partner ecosystem is anticipated to drive top-line growth.
However, the company faces intensifying competition in the global financial services domain from Oracle’s (ORCL - Free Report) Oracle Hyperion Planning, Accenture’s (ACN - Free Report) Accenture Financial Services, to name a few.
Workiva carries 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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