Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Conestoga Small Cap Composite returned 3.69% in the first quarter compared to 7.58% for the Russell 2000 Growth Index. The market continued to rise in the first quarter as many major asset classes delivered positive returns. Lack of holdings in Super Micro Computer Inc. (SMCI) and MicroStrategy Inc. (MSTR), the largest names in the benchmark, was the major reason for the underperformance of the portfolio relative to the index. In addition, stock selection in the technology sector, especially within the software industry proved challenging. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors Small Cap Strategy highlighted stocks like Workiva Inc. (NYSE:WK), in the first quarter 2024 investor letter. Workiva Inc. (NYSE:WK), with a market capitalization of $4.687 billion, offers cloud-based reporting solutions. One-month return of Workiva Inc. (NYSE:WK) was 6.48%, and its shares lost 9.78% of their value over the last 52 weeks. On May 20, 2024, Workiva Inc. (NYSE:WK) stock closed at $85.49 per share.
Conestoga Capital Advisors Small Cap Strategy stated the following regarding Workiva Inc. (NYSE:WK) in its first quarter 2024 investor letter:
“Workiva Inc. (NYSE:WK): WK is a leading software platform that helps streamline and process financial reporting data across an enterprise. WK reported fourth quarter results ahead of consensus but issued guidance that trailed expectations. While they are typically very conservative with their profitability guidance, they also guided to moderating revenue growth. The company continues to see deal cycles elongate and the lack of capital markets activity, IPOs in particular, remains a headwind.”
A financial professional utilizing a cloud-based software application.
Workiva Inc.’s (NYSE:WK) trailing 12 months revenue is $655.52 million. As per the Q1 2024 earnings call the subscription revenue of Workiva Inc (NYSE:WK) grew at 20% and total revenue grew at 17%.
Workiva Inc. (NYSE:WK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Workiva Inc. (NYSE:WK) at the end of the fourth quarter which was 27 in the previous quarter.
In another article, we discussed Workiva Inc. (NYSE:WK) and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
