Financial and compliance reporting software company Workiva (NYSE:WK) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Workiva beat analysts' revenue expectations by 1.5% last quarter, reporting revenues of $166.7 million, up 15.9% year on year. It was a mixed quarter for the company, with a solid beat of analysts' billings estimates but its net revenue retention rate in jeopardy. It added 70 enterprise customers paying more than $100,000 annually to reach a total of 1,631.

Is Workiva a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Workiva's revenue to grow 15.7% year on year to $173.8 million, in line with the 15.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Workiva has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 1.8% on average.

Looking at Workiva's peers in the finance and HR software segment, only Paychex has reported results so far. It missed analysts' revenue estimates by 1.2%, delivering year-on-year sales growth of 4.2%. The stock was down 1.1% on the results.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the finance and HR software stocks have fared somewhat better, they have not been spared, with share prices down 4% on average over the last month. Workiva is down 3.1% during the same time and is heading into earnings with an average analyst price target of $106.1 (compared to the current share price of $78.8).

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