Workiva (WK) Upcoming IPO Receives Below-Average Rating at Triton Research

Triton Research initiated research coverage on the upcoming IPO Workiva, Inc. (NYSE: WK) with a 5.98 rating, which is well below the firm's average IPO rating of 6.57. The company plans to list on the NYSE under the ticker "WK".

Workiva develops and sells subscription-based software (SaaS) to large enterprises allowing customers to collect, manage and report business data collaboratively, typically to create SEC filing documents. Competitors include: Merrill Corporation, IRIS Business Services, CoreFiling, Box, Atlassian, Rivet Software, Jive Software, Workday, Netsuite, Salesforce.com, and RR Donnelley.

"Workiva has captured dominant market share with its SaaS solution focused on SEC filings," Triton Research commented. "However, that market is unlikely to grow, expansion outside of the U.S. will be a major challenge, and even our Bull model shows no profit through 2016. Revenue per customer growth has stalled, customer acquisition cost has recently doubled and other operating cost efficiencies have plateaued. The deal only works at the right price – and for a limited time."

Lead underwriters for the deal are Morgan Stanley and Credit Susise. Investors include Bluestem Capital.

Triton Research has published a 54-page report on Workiva available to clients.

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