Announcement • Sep 12
WalkMe Ltd.(NasdaqGS:WKME) dropped from S&P Global BMI Index WalkMe Ltd.(NasdaqGS:WKME) dropped from S&P Global BMI Index Recent Insider Transactions Derivative • Aug 25
Co-Founder notifies of intention to sell stock Dan Adika intends to sell 57k shares in the next 90 days after lodging an Intent To Sell Form on the 23rd of August. If the sale is conducted around the recent share price of US$13.85, it would amount to US$786k. For the year to December 2022, Dan's total compensation was 5% salary and 95% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2024, Dan's direct individual holding has decreased from 520.25k shares to 321.98k. There have been no trades via on-market transactions or options from company insiders in the last 12 months. Announcement • Aug 19
WalkMe Doubles Down on AI Innovation, Releases Enhancements to Copilot, WalkMe(X) WalkMe announced new capabilities as part of its Summer '24 product release and recent industry recognition for AI innovation. Many of these new capabilities are part of WalkMeX, the world's first and only copilot with the context to meet every user with the next best action for any workflow, across any application with both proactive and on-demand AI assistance. New WalkMeX innovations include tools for building powerful copilot experiences that deliver always-on AI assistance to users directly in their flow of work and on-demand AI chat for conversational search and task automation. Since its launch in June, WalkMeX has emerged as a differentiated copilot offering for its application-agnostic, context-aware AI assistance. WalkMeX has been recognized for its AI innovation with several prestigious awards, notably outshining the competition of more than 1,700 submissions for the Globee Technology Awards this year. Other highlights from WalkMe's Summer '24 product release include: Enhancements to WalkMe's Workflow solutions with 20 business domains and over 1200 predefined Accelerators for over 300 workflows designed to speed up technology time-to-value and ROI. The New Content Manager is a one-stop shop for admins to manage their digital adoption content, combining customized views, advanced filtering, collaboration tools, and project management capabilities. This powers digital adoption at scale and better decision making as teams share visibility on initiatives across the enterprise. Enhancements to WalkMe’s portfolio of analytics solutions, WalkMe Insights includes extended visibility into how DAP content is performing, and custom dashboards and widgets that can be easily self-configured to the needs of every customer. Major Estimate Revision • Aug 08
Consensus EPS estimates fall by 26% The consensus outlook for fiscal year 2024 has been updated. 2024 expected loss increased from -US$0.36 to -US$0.455 per share. Revenue forecast unchanged at US$281.8m. Software industry in the US expected to see average net income growth of 16% next year. Consensus price target of US$13.80 unchanged from last update. Share price was steady at US$13.89 over the past week. Reported Earnings • Aug 04
Second quarter 2024 earnings: EPS misses analyst expectations Second quarter 2024 results: US$0.21 loss per share (further deteriorated from US$0.15 loss in 2Q 2023). Revenue: US$69.5m (up 5.1% from 2Q 2023). Net loss: US$19.6m (loss widened 44% from 2Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 100%. Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in the US. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. Announcement • Jul 01
WalkMe Ltd., Annual General Meeting, Aug 07, 2024 WalkMe Ltd., Annual General Meeting, Aug 07, 2024. Location: 1 walter moses st., tel aviv 6789903, Israel Announcement • Jun 18
WalkMe Unveils WalkMe(X): The Premier Contextual AI Copilot Designed For The Enterprise WalkMe announced the launch of WalkMeX, the world's first and only copilot with the context to meet every user with the next best action for any workflow, across any application. WalkMeX further amplifies WalkMe’s mission to bridge the gap between humans and technology with “AI that everyone gets.” Generative AI isn’t the plug-and-play tool many believe it to be. For companies to realize the full potential of AI, it needs to be used every day – by everyone. WalkMeX is an always-on copilot that offers proactive AI assistance without any prompting or app-switching required. Unlike other AI tools limited to specific applications and requiring extensive user input, WalkMeX uses its deep contextual understanding to proactively assist users right at the moment of need, suggesting the next best actions across any application and workflow. Built for the ultimate copilot user experience, WalkMeX is: Contextual:WalkMeX knows the user and understands their current tasks, making it an intuitive aid that aligns with user objectives. Universal: WalkMeX extends to any web app with always-on AI assistance across any workflow. Proactive:WalkMeX offers real-time, relevant recommendations. Accessible:WalkMeX caters to employees of all technical levels, ensuring everyone can leverage AI capabilities effectively. Actionable:WalkMeX provides the next best steps tailored to the user's immediate goals, enhancing task efficiency and accuracy. WalkMeX builds on WalkMe's broader Digital Adoption Platform (DAP), giving full control to customize the copilot experience with WalkMe’s unmatched DAP analytics suite to manage adoption, usage, and results. This latest offering is designed to meet the challenges of successful AI transformation at scale. Designed for All Teams, Across All Workflows, WalkMeX helps: Sales boost rep productivity, accelerate sales cycles, improve data quality, and automate administrative tasks HR improve compliance, increase employee engagement, and automate routine tasks across common HR workflows with greater completion rates IT shorten ticket resolution, reduce cost to serve, alleviate administrative burden, and improve proper use across the IT tech stack Finance, Operation, Procurement, and more, experience hyperproductivity through a variety of applications across workflows. Announcement • Jun 06
SAP SE (XTRA:SAP) entered into a definitive agreement to acquire WalkMe Ltd. (NasdaqGS:WKME) for $1.4 billion. SAP SE (XTRA:SAP) entered into a definitive agreement to acquire WalkMe Ltd. (NasdaqGS:WKME) for $1.4 billion on June 4, 2024. A cash consideration valued at $14 per share will be paid by SAP SE. The Executive and Supervisory Boards of SAP SE and the board of directors of WalkMe have approved the transaction. The acquisition is subject to customary closing conditions, including the receipt of WalkMe shareholder approval and necessary regulatory clearances, and is expected to close in the third quarter of 2024. The impact of the transaction on SAP’s non-IFRS earnings per share for fiscal 2024 is expected to be immaterial. WalkMe Ltd will be obligated to pay to SAP SE a termination fee equal to $44,248,399.30 in cash.
Qatalyst Partners, L.P. acted as financial advisor, and fairness opinion provider for WalkMe Ltd. Shachar Hadar, Ran Camchy, Matthew Rudolph from Meitar Liquornik Geva Leshem Tal & Co and Tad J. Freese, Mark M. Bekheit from Latham & Watkins LLP acted as legal advisors for WalkMe Ltd. Chaim Friedland, Ari Fried from Gornitzky & Co., and Matthew Gemello, Spencer Cohen from Orrick, Herrington & Sutcliffe LLP acted as legal advisors for SAP SE. New Risk • Jun 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 5.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Currently unprofitable and not forecast to become profitable next year (US$35m net loss next year). Share price has been volatile over the past 3 months (5.0% average weekly change). Shareholders have been diluted in the past year (5.5% increase in shares outstanding). Buy Or Sell Opportunity • Jun 05
Now 27% overvalued after recent price rise Over the last 90 days, the stock has risen 56% to US$13.78. The fair value is estimated to be US$10.86, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 71%. Revenue is forecast to grow by 7.0% in a year. Earnings are forecast to grow by 12% in the next year. Major Estimate Revision • May 29
Consensus EPS estimates upgraded to US$0.37 loss The consensus outlook for fiscal year 2024 has been updated. 2024 losses forecast to reduce from -US$0.45 to -US$0.37 per share. Revenue forecast steady at US$281.8m. Software industry in the US expected to see average net income growth of 21% next year. Consensus price target down from US$13.13 to US$12.75. Share price rose 20% to US$9.40 over the past week. Reported Earnings • May 23
First quarter 2024 earnings: EPS exceeds analyst expectations First quarter 2024 results: US$0.067 loss per share (improved from US$0.30 loss in 1Q 2023). Revenue: US$68.6m (up 4.1% from 1Q 2023). Net loss: US$6.15m (loss narrowed 77% from 1Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 44%. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Software industry in the US. Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 5 highly experienced directors. Independent Chairperson MB Bettencourt was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. New Risk • Mar 21
New major risk - Revenue and earnings growth Earnings have declined by 7.2% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 7.2% per year over the past 5 years. Minor Risks Currently unprofitable and not forecast to become profitable next year (US$43m net loss next year). Shareholders have been diluted in the past year (4.6% increase in shares outstanding). Major Estimate Revision • Feb 28
Consensus EPS estimates fall by 31% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$286.7m to US$282.2m. Losses expected to increase from US$0.34 per share to US$0.45. Software industry in the US expected to see average net income growth of 27% next year. Consensus price target up from US$13.25 to US$13.69. Share price fell 6.9% to US$9.40 over the past week. Reported Earnings • Feb 22
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: US$0.67 loss per share (improved from US$1.09 loss in FY 2022). Revenue: US$267.0m (up 9.0% from FY 2022). Net loss: US$59.1m (loss narrowed 36% from FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.1%. Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in the US. Announcement • Feb 22
Walkme Ltd. Provides Earnings Guidance for the First Quarter and Full Year 2024 WalkMe Ltd. provided earnings guidance for the First Quarter and Full Year 2024 . For the quarter, company currently expects Revenue of $67.6 Million to $68.6 Million. For the full year, the Company currently expects Revenue of $279 Million to $283 Million. Announcement • Feb 21
Walkme Ltd. Unveils Workflow Accelerators WalkMe Ltd. unveiled Workflow Accelerators a robust set of predefined solutions for eliminating friction in key workflows -- revolutionizing the way businesses address workflow inefficiencies. By identifying the difficulties people face when interacting with software and removing friction in mission-critical workflows such as employee onboarding, sales opportunity management, and IT service requests, enterprises can improve software adoption to drive measurable business outcomes including revenue growth, productivity, efficiency, and compliance. WalkMe customers have been using Workflow Accelerators in beta testing to increase effective employee adoption of their workflows, achieving significant results. WalkMe’s predefined solutions for key workflows across business domains include: Human Resources workflows such as employee separation, job change, candidate recruitment, and compensation management. Salesworkflows such as configuring price quotes, order management, opportunity management, and forecasting. Information Technology workflows such as service request fulfillment, access management, and incident management. Finance workflows such as vendor onboarding, contract lifecycle management, and travel management. Other domains including operations and supply chain, customer service, engineering, security, enterprise portfolio and project management, etc. Announcement • Feb 07
WalkMe Ltd. to Report Q4, 2023 Results on Feb 21, 2024 WalkMe Ltd. announced that they will report Q4, 2023 results Pre-Market on Feb 21, 2024 Buy Or Sell Opportunity • Feb 06
Now 21% undervalued Over the last 90 days, the stock has risen 8.6% to US$10.22. The fair value is estimated to be US$12.87, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 69%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 93% in the next 2 years. Buy Or Sell Opportunity • Jan 19
Now 21% undervalued Over the last 90 days, the stock has risen 14% to US$10.24. The fair value is estimated to be US$12.98, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 69%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 93% in the next 2 years. Buying Opportunity • Jan 18
Now 21% undervalued Over the last 90 days, the stock is up 14%. The fair value is estimated to be US$12.98, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 69%. Revenue is forecast to grow by 19% in 2 years. Earnings is forecast to grow by 93% in the next 2 years. Recent Insider Transactions Derivative • Dec 14
Co-Founder notifies of intention to sell stock Dan Adika intends to sell 23k shares in the next 90 days after lodging an Intent To Sell Form on the 12th of December. If the sale is conducted around the recent share price of US$9.89, it would amount to US$223k. For the year to December 2022, Dan's total compensation was 7% salary and 93% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2023, Dan's direct individual holding has increased from 368.32k shares to 600.95k. There have been no trades via on-market transactions or options from company insiders in the last 12 months. Breakeven Date Change • Nov 18
Forecast to breakeven in 2025 The 8 analysts covering WalkMe expect the company to break even for the first time. New consensus forecast suggests losses will reduce by 33% per year to 2024. The company is expected to make a profit of US$1.50m in 2025. Average annual earnings growth of 67% is required to achieve expected profit on schedule. Reported Earnings • Nov 17
Third quarter 2023 earnings: EPS exceeds analyst expectations Third quarter 2023 results: US$0.098 loss per share (improved from US$0.27 loss in 3Q 2022). Revenue: US$67.0m (up 5.8% from 3Q 2022). Net loss: US$8.76m (loss narrowed 62% from 3Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 21%. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in the US. Announcement • Nov 15
WalkMe Ltd. Provides Financial Guidance for the Fourth Quarter and Full Year of 2023 WalkMe Ltd. provided financial guidance for the fourth quarter and full year of 2023. For the fourth quarter of 2023, the Company currently expects revenue of $67 to $68 million, representing a growth rate of 3% to 5% year-over-year. For the full year 2023, the Company currently expects revenue of $266.1 to $267.1 million, representing a growth rate of 9% year-over-year. Announcement • Nov 14
WalkMe Inc. Announces the Appointment of Ofir Hatsor as Senior Vice President of EMEA Sales WalkMe Inc. announced the appointment of Ofir Hatsor as Senior Vice President of EMEA Sales. The new regional sales leader will take on the increasing demand for WalkMe’s best in class Digital Adoption Platform (DAP) as businesses across industries seek to maximize the value from their software investments while boosting productivity and providing seamless user experiences, aligning with the 3.7% rise in IT spending across EMEA, as forecasted by Gartner for 2023. Hatsor returns to WalkMe after serving as the CEO of DGTL Ventures, one of WalkMe’s strongest implementation partners in the EMEA region. His extensive learnings from the field combined with his deep product experience puts him in a unique position to lead WalkMe’s EMEA sales efforts. He previously held the role of Executive Vice President of International Sales for WalkMe and brings his learnings from his recent chief executive role back to WalkMe. With a passion for innovation and a keen strategic mindset, Hatsor will take on the burgeoning demand for digital adoption technology in EMEA, leading dedicated sales teams in London, Paris, and Munich. Announcement • Nov 02
WalkMe Ltd. to Report Q3, 2023 Results on Nov 14, 2023 WalkMe Ltd. announced that they will report Q3, 2023 results Pre-Market on Nov 14, 2023 Recent Insider Transactions Derivative • Sep 09
Co-Founder notifies of intention to sell stock Dan Adika intends to sell 15k shares in the next 90 days after lodging an Intent To Sell Form on the 6th of September. If the sale is conducted around the recent share price of US$9.59, it would amount to US$144k. For the year to December 2022, Dan's total compensation was 7% salary and 93% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2023, Dan's direct individual holding has increased from 368.32k shares to 600.95k. There have been no trades via on-market transactions or options from company insiders in the last 12 months. Announcement • Aug 11
WalkMe Ltd. Provides Earnings Guidance for the Third Quarter and Full Year 2023 WalkMe Ltd. provided earnings guidance for the third quarter and full year 2023. For the quarter, the company expects revenue to be in the range of $66 million to $68 million, representing a growth rate of 4% to 7% year-over-year.For the full year, the company expects revenue to be in the range of $266 million to $270 million, representing a growth rate of 9% to 10% year-over-year. Reported Earnings • Aug 11
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: US$0.15 loss per share (improved from US$0.33 loss in 2Q 2022). Revenue: US$66.2m (up 10% from 2Q 2022). Net loss: US$13.6m (loss narrowed 51% from 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 30%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in the US. Announcement • Jul 23
WalkMe Ltd. to Report Q2, 2023 Results on Aug 10, 2023 WalkMe Ltd. announced that they will report Q2, 2023 results Pre-Market on Aug 10, 2023 Announcement • May 18
Walkme Ltd. Provides Earnings Guidance for the Second Quarter and Full Year 2023 WalkMe Ltd. provided earnings guidance for the second quarter and full year 2023. For the quarter, the company expected Revenue of $65 to $66 million, representing a growth rate of 8% to 10% year-over-year.For the year, the company expected Revenue of $269 to $276 million, representing a growth rate of 10% to 13% year-over-year. Reported Earnings • May 18
First quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2023 results: US$0.30 loss per share (further deteriorated from US$0.27 loss in 1Q 2022). Revenue: US$65.9m (up 16% from 1Q 2022). Net loss: US$26.1m (loss widened 13% from 1Q 2022). Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates by 34%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in the US. Reported Earnings • Mar 16
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: US$1.09 loss per share (improved from US$1.85 loss in FY 2021). Revenue: US$245.0m (up 27% from FY 2021). Net loss: US$92.6m (loss narrowed 3.3% from FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in the US. Major Estimate Revision • Feb 22
Consensus EPS estimates upgraded to US$0.75 loss, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from US$289.9m to US$273.3m. 2023 losses expected to reduce from -US$0.98 to -US$0.75 per share. Software industry in the US expected to see average net income growth of 11% next year. Consensus price target up from US$13.19 to US$13.88. Share price fell 3.5% to US$10.71 over the past week. Reported Earnings • Feb 16
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: US$1.09 loss per share (improved from US$1.85 loss in FY 2021). Revenue: US$245.0m (up 27% from FY 2021). Net loss: US$92.6m (loss narrowed 3.3% from FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Software industry in the US. Announcement • Jan 27
WalkMe Ltd. to Report Q4, 2022 Results on Feb 15, 2023 WalkMe Ltd. announced that they will report Q4, 2022 results at 9:30 AM, US Eastern Standard Time on Feb 15, 2023 Announcement • Jan 06
WalkMe Ltd. Announces Leadership and Board Changes WalkMe Ltd. announced co-founder, Rafael Sweary, is stepping down as President effective January 5, 2023. Sweary will continue to hold a Board position and work closely with the company. In addition, the company announced current Board member, Michele Bettencourt, has been appointed Chairperson of the Board of Directors, effective December 31, 2022. Price Target Changed • Nov 17
Price target decreased to US$13.69 Down from US$16.38, the current price target is an average from 8 analysts. New target price is 58% above last closing price of US$8.68. Stock is down 60% over the past year. The company is forecast to post a net loss per share of US$1.26 next year compared to a net loss per share of US$1.85 last year. Announcement • Nov 16
WalkMe Ltd. Ltd. Provides Earning Guidance for the Fourth Quarter and Full Year of 2022 WalkMe Ltd. provided earning Guidance for the fourth quarter and full year of 2022. For the quarter, the company expects total revenue to be in the range of $62.9 to $64.9 million, representing a growth rate of 18% to 22% year-over-year.For full year, the company expects total revenue to be in the range of $243 to $245 million, representing a growth rate of 26% to 27% year-over-year. Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 independent directors. 6 non-independent directors. Independent Director MB Bettencourt was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Oct 26
WalkMe Ltd. to Report Q3, 2022 Results on Nov 15, 2022 WalkMe Ltd. announced that they will report Q3, 2022 results Pre-Market on Nov 15, 2022 Announcement • Sep 13
WalkMe Ltd. Announces Chief Financial Officer Changes WalkMe Ltd. announced the departure of Chief Financial Officer, Andrew Casey. After nearly three years of financial leadership, Casey is leaving to pursue another opportunity. He will remain with WalkMe on an advisory basis through WalkMe's third quarter earnings announcement to support an orderly transition. Hagit Ynon, WalkMe's EVP of Finance & Operations, will serve as interim CFO following Casey's departure. Ms. Ynon, age 51, has served as WalkMe’s Executive Vice President, Finance and Operations since September 2019. Prior to joining WalkMe, Ms. Ynon spent 19 years in various positions in the finance department at NICE Ltd., a public company that provides cloud and on-premises platforms for AI-driven digital business solutions, most recently as Vice President, Corporate Finance. Before joining NICE Ltd., Ms. Ynon served as an Audit Manager at PricewaterhouseCoopers. Ms. Ynon holds a B.A. in Management and Accounting and an M.B.A. from the College of Management Academic Studies in Israel and is a registered CPA in Israel. Reported Earnings • Aug 12
Second quarter 2022 earnings: EPS misses analyst expectations Second quarter 2022 results: US$0.33 loss per share. Revenue: US$59.9m (up 28% from 2Q 2021). Net loss: US$27.9m (loss widened 24% from 2Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.5%. Over the next year, revenue is forecast to grow 27%, compared to a 18% growth forecast for the industry in the US. Announcement • Aug 12
Walkme Ltd. Provides Revenue Guidance for the Third Quarter and the Year 2022 WalkMe Ltd. provided revenue guidance for the third quarter and the year 2022. For the quarter, the company expects revenue o of $62.5 to $63.5 million.For the year, the company expects Total revenue of $246 to $249 million. Announcement • Aug 09
Walkme Ltd. Appoints Adriel Sanchez as Chief Marketing Officer WalkMe Ltd. announced the appointment of Adriel Sanchez as Chief Marketing Officer (CMO), reporting to CEO and Co-founder, Dan Adika. As CMO, Sanchez will lead the global marketing organization to promote the WalkMe brand, including the development and execution of the company's strategic priorities and campaigns, while partnering closely with the sales and product organizations to drive revenue. Sanchez joins WalkMe from Newsela, where he spent more than three years serving as CMO. While at Newsela, he drove go-to-market strategy that contributed to triple-digit ARR growth early in the pandemic while tripling marketing contribution to pipeline and revenue. Before Newsela, Sanchez held a number of senior marketing roles with global B2B data management company Commvault, and software giant SAP, where he spent nearly a decade in various demand generation leadership positions. Announcement • Jul 26
WalkMe Ltd. Appoints Scott Little as Chief Revenue Officer WalkMe Ltd. announced the appointment of Scott Little as Chief Revenue Officer, reporting to CEO and Co-founder, Dan Adika. Little will lead WalkMe's overall go-to-market optimization and expansion efforts to capitalize on digital adoption's $34 billion total addressable market as demand for WalkMe's enterprise-class digital adoption platform (DAP) grows. Little joins WalkMe from Software AG, where he spent nearly three years serving in executive sales roles, most recently as Chief Revenue Officer. Under his leadership, Software AG transformed its digital business into a modern SaaS and subscription dominated portfolio delivering double digit bookings growth and consistent profitability. Before Software AG, Little held a number of senior roles with global B2B SaaS technology companies Commvault and Aveva, as well as with industry stalwarts Oracle and IBM, spending nearly two decades with Oracle. Announcement • Jul 22
WalkMe Ltd. to Report Q2, 2022 Results on Aug 11, 2022 WalkMe Ltd. announced that they will report Q2, 2022 results Pre-Market on Aug 11, 2022 Seeking Alpha • Jul 20
WalkMe Prioritizes Larger Customer Size As Losses Worsen WalkMe went public in June 2021, raising approximately $287 million in gross proceeds in an IPO.
The firm sells a software platform for enterprises to track and analyze online customer engagement activities.
WKME has grown revenue and gross profit, but is generating high and worsening operating losses, a distinct negative in the current market environment.
I'm on Hold for WKME until management can make a meaningful move toward operating breakeven.
A Quick Take On WalkMe
WalkMe (WKME) went public in June 2021, raising approximately $287 million in gross proceeds from an IPO that priced at $31.00 per share.
The firm enables enterprises to monitor and analyze online customer engagement via its SaaS Digital Adoption Platform.
Until WKME begins to make meaningful progress toward operating breakeven, in the current market environment, I don’t see a lot of upside to the stock.
I’m on Hold for WKME in the near term.
WalkMe Overview
Tel Aviv, Israel-based WalkMe was founded to develop a SaaS platform for enterprises to maximize their insight into and ability to increase customer engagement across various aspects of their online business.
Management is headed by co-founder and CEO Dan Adika, who was previously a software engineer at Hewlett-Packard Company and computer programmer in the IDF.
The company’s primary offerings include:
Unified visibility & insights
Consistent user experience
Self-service onboarding, feature engagement, support
WalkMe’s Market & Competition
According to a 2018 market research report by Research and Markets, the global customer experience management market is projected to grow to $21.3 billion by 2024.
This represents a forecast CAGR of 22% from 2018 to 2024.
The main driver for this expected growth is the increasing need for personalized customer experience.
Also, as IT infrastructure becomes more complex, organizations continue to seek more unified views into the online activities of their prospects and customers for decision-making purposes.
Major competitive or other industry participants include:
SAP
Microsoft
Oracle
Salesforce
Software for specific in-app guidance
WalkMe’s Recent Financial Performance
Total revenue by quarter has grown steadily over the past 5 quarters:
5 Quarter Total Revenue (Seeking Alpha)
Gross profit by quarter has followed roughly the same trajectory as that of total revenue:
5 Quarter Gross Profit (Seeking Alpha)
Selling, G&A expenses as a percentage of total revenue by quarter have remained quite high:
5 Quarter Selling, G&A % Of Revenue (Seeking Alpha)
Operating losses by quarter have worsened markedly in recent quarters:
5 Quarter Operating Income (Seeking Alpha)
Earnings per share (Diluted) have also remained considerably negative in recent periods:
5 Quarter Earnings Per Share (Seeking Alpha)
In the past 12 months, WKME’s stock price has fallen 67.4 percent vs. the U.S. S&P 500 index’ drop of around 8.2 percent, as the chart below indicates:
52 Week Stock Price (Seeking Alpha)
Valuation And Other Metrics For WalkMe
Below is a table of relevant capitalization and valuation figures for the company:
Measure
Amount
Enterprise Value
$452,520,000
Market Capitalization
$762,250,000
Enterprise Value / Sales [TTM]
2.18
Price / Sales [TTM]
3.01
Revenue Growth Rate [TTM]
32.38%
Operating Cash Flow [TTM]
-$49,630,000
Earnings Per Share (Fully Diluted)
-$1.76
(Source - Seeking Alpha)
The Rule of 40 is a software industry rule of thumb that says that as long as the combined revenue growth rate and EBITDA percentage rate equal or exceed 40%, the firm is on an acceptable growth/EBITDA trajectory.
WKME’s most recent GAAP Rule of 40 calculation was negative (11%) as of Q1 2022, so the firm needs significant improvement in this regard, per the table below:
GAAP Rule of 40
Calculation
Recent Rev. Growth %
32%
GAAP EBITDA %
-43%
Total
-11%
(Source - Seeking Alpha)
Commentary On WalkMe
In its last earnings call (Source - Seeking Alpha), covering Q1 2022’s results, management highlighted the growth in customer use of its Digital Adoption Platform, with average ARR per customer of $650,000.
The company recently launched its Digital Transformation Intelligence product, to enable organizations to monitor their digital transformation initiatives. Major Estimate Revision • May 30
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 expected loss increased from -US$1.14 to -US$1.25 per share. Revenue forecast unchanged at US$252.6m. Software industry in the US expected to see average net income growth of 8.4% next year. Consensus price target down from US$25.89 to US$18.71. Share price fell 19% to US$9.84 over the past week. Reported Earnings • May 25
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: US$0.27 loss per share (up from US$1.71 loss in 1Q 2021). Revenue: US$56.8m (up 33% from 1Q 2021). Net loss: US$23.0m (loss narrowed 3.9% from 1Q 2021). Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates by 3.8%. Over the next year, revenue is forecast to grow 30%, compared to a 30% growth forecast for the industry in the US.