Irenic confirms about 2% stake in Workiva, outlines ‘actionable recommendations’

Irenic Capital Management, a “significant shareholder” of Workiva (WK) with approximately 2% of the company’s outstanding shares, issued a presentation outlining “actionable recommendations” to address the company’s “significant share price underperformance relative to peers and create value for all shareholders.” Irenic issued the following statement: “Workiva is a high-quality business with market-leading products in its portfolio, significant recurring revenue, strong gross margins and structurally high operating margin potential. Despite these advantages, the Company currently trades at a substantial discount to its peers and its historical valuation. In our view, Workiva’s significant underperformance reflects a failure to achieve the appropriate mix of growth and operating profitability. We firmly believe meaningful and immediate change is needed at the Company. Workiva needs a revamped Board which should conduct a Strategic & Operating review to evaluate the best risk-adjusted path forward – either as a refocused and substantially more profitable public company or by pursuing a sale to a sponsor or strategic buyer.”