Workiva Inc.WK recently strengthened its flagship product, Wdesk platform, with new solutions for internal audit management. The announcement was made at Workiva User Conference during its opening session.
The latest Wdesk's solution offers real-time association, certification, workpaper execution and workflow to aid customers with auditability, control and linking features. The new solution provides internal auditors with greater business visibility for better risk management across organizations.
One of the first customers using Wdesk for internal audit management is Bradley Carroll, Senior Vice President and Chief Audit Executive at State Bank and Trust Company of Atlanta, GA. The newly added solution to Wdesk will help to examine risks and increase transparency consequently mitigating operation risks through continuous feedback process.
The new audit-driven solutions promise enhanced business insights that accelerate financial transformation. In fact, the company is leaving no stone unturned to aid customers in their journey of internal audit management.
Notably, shares of Workiva have returned approximately 63.6% year to date, substantially outperforming the industry 's rally of 23.1%.
Robust Growth Prospects
Per a Gartner survey, enterprises are migrating to cloud based financial management applications faster than anticipated. The surveyed senior finance executives reveal that by 2020, 36% of enterprises will leverage the cloud for more than 50% of their transactional systems on record. We believe this rapid shift is likely to benefit Workiva as it continues to strengthen its cloud platform - Wdesk.
Per a recent ResearchandMarkets report, the global financial services application market will be worth $117.1 billion by 2023 from $74.35 billion as of 2017. Notably, the market is currently growing at a CAGR of 7.9% and the time period under consideration is 2018-2023. We believe that since Wdesk is mostly used for auditing and accounting, the company remains well poised to benefit from growth of the relevant market.
Workiva's persistent focus on developing its Wdesk cloud platform, which is used for collecting, integrating, managing and analyzing business data, is aiding the company to gain traction.
Workiva continues to expand its existing customer base with its accounting, SOX and compliance software. This expansion in clientele along with a widening partner ecosystem is expected to drive growth.
However, the company faces intensifying competition in the Global Financial Service space from Oracle Hyperion Planning, Accenture Financial Services, to name a few.
Zacks Rank & Other Stocks to Consider
Currently, Workiva carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Xilinx, Inc. XLNX , Salesforce.com Inc CRM and Aspen Technology, Inc. AZPN , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
The projected earnings growth rate (3-5 years) for Xilinx, Salesforce and Aspen are 9.5%, 25% and 16.5%, respectively.
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