Q1 2024 Workiva Inc Earnings Call

Participants

Mike Rost; Senior Vice President of Corporate Development and Investor Relations; Workiva Inc

Julie Iskow; Independent Director; Workiva Inc

Jill Klindt; EVP & CFO; Workiva Inc

Steve Enders; Analyst; Citi

Dan Jester; Analyst; BMO Capital Markets

Ryan Krieger; Analyst; Wolfe Research

Presentation

Operator

Good afternoon, ladies and gentlemen, and welcome to and welcome to Workiva First Quarter 2024 earnings call. My name is Ali, and I will be your host operator on this call. After the prepared remarks in prepared comments, we will conduct a question and answer session and instructions will be provided at that time at any time. During the conference you need to reach out to an operator, please press star followed by the numbers. zero. Please note that this call is being recorded on May second, may two 2024 at five o'clock Eastern Time. I would now like to turn the meeting over to your host for today's call, Mike Rush, Senior Vice President of Corporate Development and Investor Relations at Ciba. Please go ahead.

Mike Rost

Good afternoon and thank you for joining us for what Ciba's First Quarter Conference Call. During today's call, we will review our first quarter results, discuss our guidance for the second quarter and full year 2024. Today's call has been prerecorded and will include comments from our Chief Executive Officer, Julia Esko, followed by our Chief Financial Officer, Joe Clint, who will then open the call up for a live Q&A session. And a replay of this webcast will be available until May ninth, 2020. For Information to access the replay is listed in today's press release, which is available on our website under the Investor Relations section.
Before we begin, I would like to remind everyone that during today's call, we will be making forward-looking statements regarding future events and financial performance, including guidance for the second quarter and full fiscal year 2020. For these forward looking statements are subject to known and unknown risks and uncertainties for human cautions that these statements are not guarantees of future performance are forward looking. Statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call, please refer to the Company's annual report on Form 10 K and subsequent filings for factors that could cause our actual results to differ materially from any forward-looking statements.
Also, during the course of today's call, we will refer to certain non-GAAP financial measures. Reconciliations of non-GAAP to GAAP measures and certain additional information are also included in today's press release.
With that, we'll begin by turning the call over to CEO. Julie is Cook.

Julie Iskow

Thank you, Mike, and thank you to everyone on today's call, Joe and I look forward to sharing our Q1 results. We'll also discuss our outlook for Q2 and updated guidance for the full year 2020 for Q1 was another solid quarter. Subscription revenue grew at 20% and total revenue grew at 17%, which drove a beat to the high end of our revenue guidance and operating margin came in slightly above the top range of our Q1 guidance in Q1, we once again saw broad-based demand across our solution portfolio. Esg was yet again, one of our top solutions for new bookings. It was followed by strong execution in both our financial reporting and GRC solutions. Consistent with the past several quarters, we continue to see outpaced growth in our large contract customers. This is driven by additional solution sales into our installed base. In Q1, the number of contracts valued over $100,000 increased 24%. Those over $150,000 increased 29% and contracts valued over $300,000 were up 34%, all compared to Q1 of 2023. Despite these positive proof points, we still saw a cautious buying environment. Nonetheless, I remain confident in our ability to successfully execute our growth strategy and advance our productivity initiatives. We have the strategy, the team and the platform to deliver results. Our platform remains a key differentiator for our new logo wins and account expansion deals where Ciba is the only platform that brings financial reporting ESGNGRC., together in one secure controlled audit ready environment. We are the platform for Assured integrated reporting. I'd like to highlight three integrated reporting wins that we signed in Q1. First, a top 10 U.S. bank expanded use of the platform with investment in ESG. This was the 11th solution purchased by this bank. This 11 year. Loyal customer was engaged with two big four advisory firms for an ESG transformation project for keep up with the clear ESG solution of choice based on the connected value with the platform, the Big Four firm that's driving the CSRD. transformation engagements. This bank will be delivering the project.
Second, we signed a six-figure account expansion deal with a North American Financial cooperative who added to their investment in Workiva with GRC. The purchase of the controls management solution complements their previous investment in ESGSEC. and financial services solutions. This Company first purchased the Workiva platform for funds reporting in 2019. The opportunity was a co-sell with a Big Four advisory firm that was engaged in the GRC platform replacement at this company. The same Big Four firm will be providing delivery for this project. And third, we signed a four solution new logo assured integrator reporting deal with a Canadian-based real estate and asset management company. They purchased Mercator's management, reporting controls, management, risk management and ESG solutions. This was a true platform win in this opportunity. There were multiple solution alternatives being evaluated for ESG, risk management and controls management. And it was not just the strength of our individual solutions, but it was also the connected platform approach that made Workiva a clear winner. This opportunity was a co-sell with a regional advisory firm who will be providing delivery for the project.
Let's move on now to one of our top booking solutions for seven quarters in a row. And yes, I said seven quarters, ESG sustainability continues to be front and center in boardrooms and C-suites across the globe and our sustainability solution is driving pipeline expansion and success in winning both new logos and account expansion deals. We already support sustainability reporting for some of the world's most complex companies now, including over 30% of the Fortune 100.
I'd like to highlight three ESG wins from the quarter. First, a Fortune 50 telecommunications company purchased our ESG solution to support their global ESG reporting initiatives. This company has been a loyal SEC customer for four years at the time of the initial purchase. They chose to continue their manual processes for sustainability, reporting using office productivity tools, but within the new regulatory requirements on the horizon, including the CSRG. in Europe, the Company engaged a specialized ESG regional advisory firm that worked with Workiva on a co-sell for this deal. This partner will be providing delivery for the project.
Second, we signed a six figure new logo deal for ESG. with a privately held European based retailer. This opportunity was a co-sell with their trusted design agency, working with a partner that's been working with them on their integrated report for many years. Design agencies are an important stakeholder in the financial and sustainability reporting processes for many firms in Europe. So the design reporting features available in our platform are a significant differentiator for CSRD. deals, and they also provide an opportunity for these design firms to drive enhanced value to their clients. Our clients long trusted relationships with the design agency partners instill further confidence in the purchase of Arqiva. In addition to the influence from the design agency, this opportunity was a co-sell and will be delivered by the Big Four firm. And third, we signed a multi six-figure account expansion deal with a US-based Fortune 500 global payments company for ESG. This customer also owns or Ciba's SEC controls, management, risk management policy and procedures and management reporting solutions. Since this firm has more than 30% of its revenue outside of the US, our CSRD. related platform features for double materiality assessments were critical in the decision criteria for this client. This opportunity was a co-sell with the Big Four firm that will be providing delivery for this project.
I'll now turn to financial reporting for financial reporting solutions go well beyond SCC. They also include multi entity reporting, private company reporting management, reporting SF and industry-specific solutions. In Q1, financial reporting continued to contribute significantly to both new logos and account expansion deals.
I'd like to highlight three financial reporting wins from the quarter. First, we closed a mid six figure new logo deal with a U.S. based privately owned hedge fund. This was for our fund reporting solution. This deal was sourced and will be implemented by a regional advisory firm. We have seen an increase in private investment firms purchasing our fund solution now, which are subject to recent SEC regulatory disclosure requirements.
Second, we closed a three solution new logo deal with the South American bank. The bank purchased a multi six figure deal for SEC reporting, global statutory reporting and ESG. This deal was sourced and will be implemented by a Big Four advisory firm. And third, an Australian bank invested in work gave us platform as a new customer with the multi-solution platform purchase that included private company reporting global statutory reporting and ESG. Our financial reporting solution replaced their legacy reporting systems and was a competitive win over multiple ERP vendors. This opportunity was a co-sell with the Big Four advisory firm who will be providing delivery for this project with increasing stakeholder scrutiny establishing an integrated enterprise-wide governance risk and compliance program is a strategic priority for many organizations at their core GRC program to include processes for controls, risk and audit management. I'd like to highlight three GRC. deals that closed in Q1 first in international, specialty insurance and reinsurance group became a new platform customer with a multi six figure investment in our audit controls, risk management and SEC solutions. This opportunity was sourced by a big four firm that was actively working with the company on an outsourced GRC project. The company decided to bring the GRC work in-house and will use, which gave us a platform to support their SOx audit and risk management processes. This project will be implemented by the big four advisory firm. And second, a European-based pharma and medical supplies company purchased our risk management solution to complement their ESG purchased to manage ESG risks. This new logo deal with a co-sell and will be implemented by a Big Four advisory firm for even more selected as the vendor of choice in this competitive deal since we were the only solution to provide capabilities that address not only GRC specific requirements, but also supported their future CSRD. reporting needs. And third, we signed a new logo deal with a European-based automotive parts manufacturer who purchased our audit controls and risk management solutions. This was a competitive deal against a GRC platform provider. The opportunity was sourced and will be delivered by a global professional services firm I'll move on now to an update on global regulation. On March sixth, the Securities and Exchange Commission announced that it adopted its long-awaited climate disclosure rule. This new rule is set to enhance and standardize the disclosure of climate related data and associated financial risks. The goal is to provide investors with consistent comparable and reliable data in annual reports and registration statements since the announcement, there have been several legal challenges to the rule. Energy companies and business groups contend that the rules not to environmental regulation and therefore overstepped the SEC's legal mandate on the other side, environmental groups, including the Sierra Club and Natural Resources Defense Council has countered that the rules don't go far enough on April fourth, the SEC announced that it exercised its discretion to stay the final rules pending a review in the Eighth Circuit US Court of Appeals. The SEC is just one of many stakeholders that organizations must factor in as they transform their sustainability data collection and reporting processes. As we've communicated in the past, regardless of regulatory mandates, companies have been purchasing and will continue to purchase software to report the sustainability and financial information. The regulatory timing and enforcement in Europe is much clearer. As highlighted in several of our Q1 one client wins. We're seeing CSRD. requirements driving purchasing decisions in both the US and Europe. Q1 did bring further clarity on the additional disclosure requirements for CSRD. on February eighth, the European financial reporting advisory group or e-frac announced its public consultation on the draft ESRS. XBRL taxonomy with the CSRDCEUS. stated that it aims to bring sustainability reporting on equal footing with financial reporting. And this includes requirements around digital disclosure using XBRL Synteract CSRD. taxonomy published the first week in February will utilize the European single electronic format for SIS, which is already required for each new publicly listed companies in reporting their annual financial statement, European single electronic format, which is based on inline XBRL be the same standard used for sustainability disclosures. Work even is a global leader in XBRL and already supports over 1,200 organizations in their XBRL reporting using SaaS format for annual financial disclosures, similar to the process used for financial reporting companies will have to tag their CSR disclosures with a digital experience taxonomy having a unique definition for every data point, this draft XBRL taxonomy has more than 1,000 data points with a wide range of types, including GHG emissions, water and energy consumption, head count pollution and a number of narrative disclosures we need to stand ready to serve our clients with these new XBRL requirements. In fact, Fortigel clients already have the ability to explore and test this new CSRD. XBRL taxonomy with their disclosure data. Publishing of this new XBRL taxonomy reinforces that requirement that financial and sustainability information will need to follow a consistent disclosure process. This is what work is it does and this is what assured integrated reporting is all about the sustainability regulations in Europe go beyond the CSRD. just last week, the European Parliament approved the corporate sustainability due diligence directive, moving it one step closer to formal adoption by the European Union referred to as the CS. three D. This regulation would require companies to track and report see adverse human rights and environmental impacts of their operations and their value chain. It also requires that they put in place appropriate compliance measures for directors applies to Eagle companies with more than 1,000 employees and a global revenue of over EUR450 million. And it also applies to non-EU companies generating that same amount of revenue within the EU. EUR450 million companies will be required to integrate mandatory human rights and environmental due diligence into their policies and risk management systems companies that do not comply with the CS. three D may face sanctions from national administrative authorities, including fines of up to 5% of their global revenue.
Let's move on now to platform innovation. In Q1, we continued to deliver new capabilities that address our customers' ever-changing requirements. As I speak about often, a significant driver of many of our product requirements are new and changing regulations, delivering features that enable our customers to comply with regulations. The Danish standards are released and of course, well ahead of regulatory deadlines is a strong differentiator for Workiva. In Q1, we released enhancements to our ESG. solution to support the draft SEIS XBRL taxonomy. These capabilities enable customers to explore the CSRD. tagging requirements defined in the new SaaS standard that was released in February. We also released new features for financial reporting, and this includes support for UKESF. 2020 for an additional country-specific tax disclosure taxonomies. We are a global leader in XBRL tagging, fast, efficient and accurate. And yes, we've been using AI in our tagging for years. Speaking of AIQ. one also saw the release of new enhancements to the generative AI capabilities that we launched last year. We've built AI into our platform and we're delivering capabilities. Our customers can trust. In Q1, we released a new generation of AI information assistant. It's available anywhere on the Workiva platform. It provides a conversational prompt to get details about our solutions, best practices and enablement. And this is just one example of delivering an AI solution that works for our customers that leverages trusted data sources and that provides immediate value for the balance of 2024. We'll continue to focus R&D on the pace of product innovation, consistent execution and enhancing our high-performing differentiated platform. You can expect to see continued development in response to the ever-changing requirements for ESG, more comprehensive GRC functionality and enhanced capabilities throughout the platform to support our reporting and disclosure use cases.
I'll move on now to say a few words about our guide. Taking into consideration the current demand environment, we were pleased with our subscription revenue growth for Q1. With respect to our future outlook, Jill will provide the numbers for updated revenue and profit guidance for both Q2 and full year 2024. What you'll see in this guide is that overall, we remain first and foremost focused on growth not unlike other SaaS companies, though, we remain cautious on the top line as the current measured buying environment may persist until we see changes in the market conditions, we are increasing our full year non-GAAP operating margin guide by over 100 basis points as a result of increasing operating leverage, and we remain committed to improving our productivity and performance. We are confident in the resiliency of our business, the continued demand for our assured integrated reporting platform and our ability to expand in our large and relatively unaddressed TAM regulations around the world are increasing in both scope and complexity. Our customers are faced with greater investor scrutiny, more rigorous audit requirements and an increased need to manage material risks and disclosures. Companies need transparency companies need to comply with regulation and companies need accuracy in reporting and disclosure, we provide solutions that companies need in both good times and in challenging times.
In closing, I'd like to thank our talented team of dedicated employees for their commitment to our values and the way they support our customers. Our communities and each other has yet again earned us a spot on the list of Fortune's 100 Best Companies to Work For, and it's our sixth consecutive year winning this award were key to again ranks in the top 50 on this list. This award celebrates the world-class culture we've created and maintained and thank you to our customers, our partners and our shareholders for through continued trust in Workiva. We believe we have the right team, the right technology at the right time to capitalize on the increasing global opportunities to power transparent reporting for a better world.
And with that, I'll now turn the call. Over to you, Joe.

Jill Klindt

Thank you, Julie, for our call today, I will be discussing the financials and key metric highlights for the first quarter of 2024. Following that I will provide commentary and guidance for Q2 and full year 2024 before opening the line for questions.
As Julie mentioned, we beat the high end of our Q1 revenue guidance due to strong subscription revenue growth. We also delivered operating results at the high end of our guidance, generating 6 million of operating profit, an 830 basis point improvement versus Q1 2023. We generated 175.7 million of total revenue in the first quarter, delivering growth of 17% from Q1 2023. Subscription revenue was 155 million, up 20% from Q1 2023. Combination of new customers and account expansions continued to contribute to our strong revenue growth. New customers added in the last 12 months accounted for 45% of the increase in subscription revenue. Professional services revenue was 20.7 million in Q1 2024 remaining flat compared to the same quarter last year. A decline in setup and consulting revenue was offset by growth in XBRL services. We are making progress on our strategic plan to shift to lower margin setup and consulting services to our advisory and consulting partners. We anticipate that the revenue from setup and consulting services will continue to decrease throughout 2024 compared to 2023.
Moving to our performance metrics. We had 6,074 customers at the end of Q1 2024, a growth of 300,000 customers from Q1 2023. Our gross revenue retention rate of 98% was well ahead of our 96% internal target and our net revenue retention rate increased to 111% in the first quarter of 2024 compared to 109% for Q1 2023. We expect this rate will have quarter over quarter fluctuations due to items such as currency, seasonality and solution mix of sales. For Q1 2024, 66% of our subscription revenue was generated from customers that have multiple solutions. This compares to 63% reported in Q1 2023. We are pleased with this trend and the progress it shows as we expand relationships with our largest customers. This account expansion trend is also reflected in our large contract customers. In the first quarter of 2024, we had 1,696 contracts valued at over $100,000 per year, up 24% from Q1 the prior year. The number of contracts valued at over $150,000 totaled 961 customers in the first quarter, up 29% from Q1 2023, and the number of contracts valued over $300,000 totaled 332, up 34% from Q1 2023.
Moving on to our operating results. Gross profit totaled $136.5 million in Q1, up 20% from the prior year. Gross margin improved year over year by 220 basis points, increasing to 78% in Q1 2024. This was driven by improved leverage in compensation and cloud computing costs versus the same quarter a year ago. Operating expenses increased 8% from Q1 2023, driving 610 basis points of our margin improvement versus the prior year. Our continued focus on process automation and efficiency helped improve productivity and drove margin improvement compared to Q1 2023, we posted operating profit of 6 million in Q1 2024 compared to the Q1 2023 operating loss of 7.3 million. We were pleased with the leverage we delivered. The operating profit improvement was driven by revenue growth, disciplined investments and managing controllable expenses. At March 31st, 2024, cash, cash equivalents and marketable securities increased 25 million sequentially to a balance of 838 million. Operating activities in Q1 2024 resulted in cash provided of $25 million compared with cash provided of $6 million in the same quarter a year ago. In Q1 2024, our free cash flow margin was 14%, an improvement of over 1,000 basis points versus Q1 2023.
Turning now to our guidance for Q2 and the full year 2024. As Julie discussed, it remains an uncertain macro and measured customer buying environment. However, we continue to focus on execution and are encouraged by opportunities to drive growth over the longer term.
For the second quarter of 2024, we expect total revenue to range from 174 million to 176 million. We expect services revenue will be down compared to Q2 2023 this is a result of the shift I discussed, moving our low margin setup and consulting services to our partners as well as flat to slightly down XBRL services revenue. We expect non-GAAP operating income to range from 2 million to 4 million and net income of $0.16 to $0.19. On a per-share basis, our share count will be approximately 55 million weighted average shares. Seasonality in our business can impact quarter over quarter revenue and expenses. Our Q2 2024 operating margin guidance reflects a seasonal quarter-over-quarter decrease in XBRL services revenue as well as expense fluctuations. For the full year 2024, we expect total revenue to be between 719,000,723 million we expect total services revenue to remain flat. We expect XBRL services revenue will continue to grow at a low single digit rate for set-up and consulting revenue. We expect a similar rate of decline from what we saw in 2023. We expect our subscription revenue growth to be slightly over 16% at the midpoint. We are increasing our guidance for non-GAAP operating income to range from 27 to $31 million or a net profit of $0.96 to $1.3. On a per-share basis, our share count will be approximately 55 million weighted average shares. We believe we will post positive free cash flow margin of 11% for the full year 2024. To reiterate Julie's comments. While we are focused on growth, we continue to look for leverage in our business with calculated investment. We believe we can expect the best returns in the long term before we proceed to the Q&A session, I'd like to emphasize three important points. First, ESG reporting is an increasing requirement. We believe our platform continues to be valuable to companies as they solve for this need.
Second, I want to reiterate how pleased we are with the large account growth we saw during Q1, expansion into our existing customer base is not only an important factor contributing to our growth, but also helps strengthen our customer relationships. And finally, our focus on generating leverage from our existing resources led to our full year operating margin guidance increase, we look for efficient ways to expand in our large and relatively unaddressed TAM.
In conclusion, I want to echo Julie's thanks to our employees. Your dedication and enthusiasm led to our placement on Fortune's 100 Best Companies to Work For for the 6th year in a row. It's because of you that we continue to deliver a positive impact, benefiting everyone involved, customers, partners, shareholders and employees. We're now ready to take your questions. Operator, please begin the Q&A session.

Question and Answer Session

Operator

(Operator Instructions) Steve Enders, Citi

Mike Rost

Okay, great.

Steve Enders

Thanks for thanks for taking the questions here. I guess maybe just to start, I guess, would be great to hear kind of what's going on with the FDA conversations post the SEC clarification and maybe some of those got contest station there and so on with sales or daily as the tone of those conversations changed or now the drive to one city to look for ESG solutions in the market? Just how that kind of evolved over the past few months?

Sure.

Julie Iskow

The Cegelease, thank you, Steve, for the question.

Steve Enders

I'm sure it's on minds of many great question that given the visibility to ESGIPSEC. did issue their climate disclosure rule and then put a stay on the rolls a month later. And we believe the publishing of the rule, in fact, to provide companies with a lot of clarity on what will be required and the detail to build a road map and how they'll have to comply. And as you know, Workiva has 92% of the Russell 1,000 clients. So we have a very healthy share of large, accelerate and accelerate file filers are going to need to comply. Now, although they could stay on the rule, the SEC has stated that it intends to vigorously defend the validity of the climate rules and it's the previous of the previous climate change related disclosure guidance. Dave cited a lot is still very much enforced, but you're right, not nine cases were filed and challenging that claim of all the recent climate rule and several cases on the other side, too. But we'll see what happens there with the lawsuits out there in the Eighth Circuit Court right now. But as we've communicated in the past, I mean, regardless of the regulations, regardless of the mandates companies have been and they're going to continue to purchase software to report sustainability and financial information category of customers, yes, that we call box Checkers or compliance. We do believe there may be some delay in purchasing, but we believe, again, the publishing this will provide a lot of clarity. And again, we have got 92% of that restaurant out for our clients, and we'll have a healthy share. So from our perspective, SEC being just one of the many stakeholders that organizations have to factor in here for sustainability, data collection and reporting. So we've not yet seen any withdraw from that. We see again a lot of conversations around. There's still California coming even CSRD. in Europe and so forth. So the conversations have not changed given that while there's just a lot of clarity on what it will be when it comes.
Okay, great. That's helpful context there. And then maybe for Mark, I guess maybe just on the outlook, especially on the margin side, I mean, pretty healthy, healthy raise there. I guess how should we be thinking about maybe what has changed from prior assumptions and maybe what line items would be seen the most leverage.

Mike Rost

Yes, nice leverage here.

Steve Enders

So I think, Joe, you can chime in. But essentially, we're focused on, of course, productivity. As we said, top line growth is it's incredibly important that's our largest focus will continue to do that. But as we've been talking about on calls prior, we have been pushing hard on being very thoughtful about the roles that we hire the people that we hire in those roles and that we have the right activities going on to go after are large, relatively again, unaddressed TAM. So we are hiring well we're being thoughtful about the way we're using it using our teams. We've also talked about the efficiency and the productivity and the processes and automation that we're adding into the mix because we are moving from a half a 0.5 billion to $1 billion company. Things need to be done differently. So there's a lot more rigor and discipline in the way we're working on. So again, efficiencies, automation, right people and being thoughtful about the hiring.

And really you're going to see that across the income statement. It's going to be across all teams where we have the same motion in place, exactly what Julie talking about. So it will be improvement across the board.

Steve Enders

Okay, perfect. Great. Good to hear and I'm Thanks.
For taking the questions, safety.

Operator

Alex Clarke, Raymond James.

Mike Rost

Great. Thank you. I think and just a follow-up on Steve's last question there, Joe, in terms of kind of the revenue and profitability seasonality this year, can you just talk about some of the puts and takes on what's driving the second quarter outlook, but the higher kind of second half of the year outlook, Tom, any more color you can give you that on the subscription versus services split? Or is there anything you're seeing in terms of demand environment in second quarter that might not impact 2Q but hit in the back half of the year? Thank you.

I think thanks for the question. So for Q2, we did see that there is always seasonality, especially in services revenue, XBRL services revenue from Q1 to Q2 and Q1. We have a lot of work that's done related to the case, and that's larger and volume larger dollars than than what we see for XBRL tagging services work in Q2.
The other piece that we that we have talked about is that the macro environment does impact has been impacting our bookings. We have seen those extended deal cycles and especially Q1 seasonally has lower bookings for us than any other quarter in the year. And so I'm just looking at seasonality in SMS and in subscription revenue is what we're seeing in Q2 and you saw for the full year and for the second half. We're still very strongly believe that for the full year growth and as you as you even out over the over each quarter, we're still have very strong expectations for the full year and then related to expense in Q2. And we do have some movement between quarters, sometimes in event internal events and that sort of thing and just some seasonal spending that can fluctuate quarter over quarter. And but in looking at the full year, you can see exactly what you mentioned in the second half. We do you believe that everything evens out as far as the quarter over quarter spend and until very strongly and pleased with how our forecast shaping up for the full year.

Mike Rost

Okay. That's thank you for that color there. And then, Julie, maybe just one for you, given some of the prepared remarks commentary around the multichip solution customer success. And as we think about kind of capital markets activity starting to come back here a little bit. Can you just talk about how that benefits some of your non financial reporting solutions? So how many how much more solutions per customer doesn't doesn't SEC customer take for non-SEC base or maybe said a different way. How important is new public company growth for your non-financial reporting solutions?

Steve Enders

We do, of course, want to keep a blend of new logos and new solutions with existing customers as we strive to do somewhere between the 40 60 is about where we know the largest gap. We want to have. So we are continuing to do both new logos and new solutions on multi-solution. I'll tell you that I mean, our our current customer base is a tremendous asset for us. When we report in our 10 K, we now have 90% of the Fortune 100, 85% of the Fortune 580% of Fortune 1,000. So going into that install base, again is a significant drive for us and a lot of effort we go in with our partners and our relationships with partners are absolutely contributing to a strong success there with our our expansion in those multi-solution account expansion deals and really do push the revenue we go out of, you know, market with Assured integrated reporting, which means we are working with our customers on financial reporting, which includes a multi entity reporting and management reporting and surplus, including capital markets, which you asked about. So a lot of landing with Cap Markets and Private Company reporting and then rolling into the other of the other solutions of financial reporting, non-financial or sustainability and ESG, along with our GRC solutions. So we are resilient even without the cap markets business right now coming back in any substantive way. But because of our product portfolio and we're heavily focused on that it was not based only on cap markets alone vessels coming into the next next several months for this year's quarters for this year, yes, we expect those cap market bookings to remain fairly flat throughout the year, just what we've been seeing over the past few quarters.

Mike Rost

Okay, great color.

Julie Iskow

Thank you.

Operator

Terry Tillman, Truist Securities.

Hi, this is Dominic one and so on for Terry.

Julie Iskow

I'm just wanted to look at some of the newer Gen-i capabilities like the Gen-i, Infosys and mentioned on the call or the ESG. specific one where users can drops closures. Could you share any feedback you may have received from customers as far and as you speak to customers and gather some.

Steve Enders

Jenny, I leads.

Julie Iskow

Are there any other specific verticals or sectors you see holding the greatest potential agenda this year?

Steve Enders

So I'll comment on our industry. Of course, our sector and work, Eva. But Al, thanks for the question. Another hot topic of 2023, and it has rolled this is 2024. We're definitely enthusiastic about the delivery of our generative AI capabilities to power new features on the platform. You mentioned a few words, giving users get large language models in app now from Google and Microsoft and AWS integrated into our platform. Our secure platform, not their information is not used to train those those large language models. And early feedback, as you asked about from customers, is that they appreciate the appreciating being able to use those capabilities in app, both for convenience and of course, for data security, they can offer an added and rewrite now leveraging the capabilities and it's across all workflows in our platform. And we also, as you mentioned, rolled out the capability for ESG specific use. And we rolled out the the health and training enablement capability within within the platform.
As far as feedback, and we're watching how our users are using the capabilities, we're learning, we're understanding we're getting information about how they're valuing those capabilities and that's really what our initial focus is on iterating to ensure they are getting value and we create new features and capabilities using generative AIR. changes. He's looking into how it's being leveraged.

Julie Iskow

Great. Thank you.
Sorry.

Operator

Dan Jester, BMO Capital Markets.

Julie Iskow

Great.

Dan Jester

Thanks for taking my question. Tonight on in the prepared remarks, you mentioned a really interesting European ESG. win, which is great to hear. I'd love to just get a sort of a European specific update in terms of how you're seeing demand. And I think in the recent past, you've made some changes in how you go to market and your sales organization in Europe. And so I'd love sort of how you're seeing productivity today? And do you expect kind of further improvement as the year progresses here?

Julie Iskow

Sure. Absolutely.

Steve Enders

I think, Stan, our our momentum in Europe just continues to build, and we're very pleased with it and the results we're seeing there. And we mentioned last quarter, we're now up to 15% of revenue outside of North America and that's primarily in Europe. And I also highlighted in my prepared remarks, we have some signature wins there, multi-solution six-figure deals and with our partners. So we're very, very bullish on the opportunity there. Our value prop of Assured integrated reporting it's resonating, particularly because of the CSRD. It is, in fact a short integrated reporting the financials with the non-financial data with assurance. And I will also say, however, despite the progress, we're still very open about the need for continued improvement there, and we will continue to do that. So our strategy in Europe is working and text messaging and assured and very reporting resonating. So lots of lots of green shoots there and seeing a lot of early customer and customer wins driven by the requirements and regulations.

Dan Jester

Great. Thank you. That's really helpful. And then maybe just a question for Joe to follow up on the seasonality comment before it does look like bookings in the first quarter did did slow down again sequentially. And so I wonder, can you just help us understand your level of visibility into the back half and maybe just help us remind us about sort of sales cycles and kind of how you're thinking about the visibility in the platform today relative to a similar period in time in other years, anything you would compare and contrast would be really helpful. Thank you.

So we do have pretty standard seasonality in our bookings year over year, even as we've been talking about when you have a tough macro environment on Q1 is always lower. And it's because that we have a lot of our customers that we're working with tend to be heads down for the majority of the quarter doing their annual filings for calendar filers. And so that is that's pretty standard. And then Q2 and Q3, both pickup, they can be more similar sometimes a little bit higher Q2. I think Q4 is always seasonally our largest quarter for bookings just as a an overview of our booking seasonality.

Dan Jester

Great. Thank you very much.

Operator

Ryan Krieger, Wolfe Research.

Ryan Krieger

Great. Thanks for taking the question. So I just kind of want to add on to the question that was just asked if we look at RPO grew kind of 20% in the quarter, but that's been steadily declining the last couple of quarters. And then sequential customer adds were lower than a typical 1Q. So was there anything anomalous to call out there such as you know, push deals or sales cycles extending or anything that weighed on those metrics? Just because they do look a little bit lower than the typical typical amount.
And then to the extent you can add some color, how did April trend compared to kind of 1Q so where it is, I'll start with RPO question that question.

Ryan, thanks for the question. When we look at RPO for the past few years, we've been talking about that. We've been moving our contracts over to being mostly three year contracts.

Jill Klindt

The majority of our contracts are now three year terms.

And so we did have some ebbs and flows movements due to that change over the last few years.
Moving from annual contracts are three-year contracts and the RPO metrics here. Crpo was a little bit. It took out a lot of that noise, but not all of it. And so we do think that over the course of 2024, that will settle into a more regular seasonal cadence of RPO and and so that's that's part of what we're seeing. And that's what we're also seeing in the RPO number in Q1 is that the result of the slowing macro factors slowing bookings that we saw throughout 2023 that we've talked about. And so it is down. It's something that we're watching really closely. But and we feel very strongly that the our model on revenue is solid, and we expect to be able to deliver on the guide for revenue that we gave for the full year.
And in the second part of your question, the logo growth we did. You heard in the prepared remarks, 45% of our revenue in Q1 came from new customers added in the last 12 months, and that is down from where it was in Q4, and we have seen some slowing in new logos. A lot of that is because of the US market slowing and Cap Markets, fewer new customers or new new public companies in the US. And when we see new logo growth, it does have more heavily skewed towards a mayor and we're talking to customers and or skews towards and some of our other newer areas, geographies. But we still are focusing really heavily on that makes it very important for us as a company as Julie was just talking about on a moment ago that we A. and we need to expand within our existing base, but we also need those new customers in order to continue to build the business of those, we still find both very important.

Ryan Krieger

Great. Thank you.

Operator

Adam Hatch, Goldman Sachs.

Steve Enders

Great.

Julie Iskow

Thanks for taking the questions.

Mike Rost

I guess to start, I would just be curious how you're seeing the non EU based global multinationals approach, ESG, given they're a bit later in the CSRD. regulatory requirements cycle, but still have California and potentially SBC to grapple with is there more of a willingness to take a global approach to ESG? Here are companies taking this more of on a piecemeal basis, depending on which geographies have impending regulation? Just curious if you're seeing anything interesting there.

Steve Enders

Yes. I mean a great question, and you're seeing ESG worldwide in various regions. But I will start out just by saying ESG remains one of our top solutions and booking performance in Q1. And as I mentioned on the call on the prepared remarks has been it's been in the top three bookings for the last seven quarters, and we continue to add Fortune 500 clients to our already seven lead roster. Of ESG account expansion, we're now over 30% of the Fortune 100. So we continue to see strong demand for either those ESG solution, even without the regulation in the US. And yes, even with the political debate around the SGFRM.s and as stakeholder demand for the transparency and the non-financial data is continuing to increase and a lot of the U.S. companies know they will need to comply with the State of California and other regulations, including the CSRD. though it was a had a had a change in its reporting date for the non-EU. And we are absolutely seeing global approach and striving to meet those requirements. And again, it's not just around the regulation, the mandatory nature of things. It's companies are doing that. They made science-based targets and they need to maintain progress towards those. So they need that visibility. There are a number of stakeholders beyond the regulatory bodies that they're working towards satisfying. So we're absolutely seeing strong demand for ESG.

Mike Rost

Yes, that's great. Thanks, Julie. And then just on that point, I saw the ESG. practitioner survey you you released and I think one of the stats that was pretty interesting was the 81% of companies not subject to CRTSRB. intending to sell partially and fully aligned with sustainability disclosures. Curious given how stringent some of those things are around scope, emissions and things like that, what you think is driving the willingness to do that? And then how you think about getting from 81% of companies wanting to partially or fully aligning to actually starting to move on this and we're seeing we are we were not surprised by that statistic because, as I just described a moment ago, that's what we're seeing in our client base.

Steve Enders

And the drivers are as I described, it's stakeholder demand, right? It isn't just the regulation. They know what's coming. It's not a matter of if it's a matter of when they're getting ahead of it, it is the larger the company, the more complex, the company, the harder it is to comply. They're getting ahead of it. They are purchasing software there, getting third parties and partners to help with this doing their materiality assessments and getting their data in shape. Let me say the same survey also showed they're beginning to trust their data more of their getting their data in order and software is, of course, helping with that. So not surprised that statistic at all given what we're seeing in the market today.

Okay.

Mike Rost

Really helpful. Thanks, Julie.

Operator

We don't have any pending questions as of the moment. I'd now like to hand back over to the management for final remarks.

Yes.

Mike Rost

Well, thank you, everyone, for joining the call and this concludes today's call and please go on the Investor Relations site for Workiva and download our investor presentation for more information. Thank you.