Workiva (WK 5.57%) stock is posting big gains in Wednesday's trading. The company's share price was up 5.5% as of 3:25 p.m. ET and had been up as much as 9.3% earlier in the day's trading.

Workiva's valuation is climbing higher following the company's recent fourth-quarter report. The software specialist published its Q4 results before the market opened this morning, posting sales that came in ahead of the market's expectations.

Workiva stock jumps on strong Q4 report

For the fourth quarter, Workiva posted non-GAAP (adjusted) earnings per share of $0.33 -- which was in line with the average Wall Street analyst estimate. Meanwhile, the business reported sales of $200 million and topped the consensus estimate by roughly $4.8 million. Workiva's sales were up 20% year over year, and its count for customers with annual contract value of more than $500,000 was up 32% compared to the prior-year period.

What's next for Workiva?

Some analysts see Workiva's Q4 report as a clear bullish signal. Citi raised its one-year price target on the stock from $128 per share to $130 per share and maintained a buy rating on the stock following the recent report. As of this writing, Citi's new price target suggests additional upside of roughly 47%.

With strong sales momentum and indications that the business is continuing to score wins with large customers, Workiva stock could continue to run higher above current levels. On the other hand, the company is now valued at roughly 69 times this year's expected earnings and 5.7 times expected sales, and shares could be highly volatile if growth comes in lower than anticipated.