WalkMe Ltd. (NASDAQ:WKME), a leading provider of digital adoption
solutions, today announced financial results for its fourth quarter
ended December 31, 2022.
“WalkMe continues to help the largest companies in the world
identify and resolve the crippling digital friction that’s keeping
them from achieving their digital transformation goals. They’re
relying on us to regain control of their tech stack and finally
turn it into a competitive advantage,” said Dan Adika, CEO of
WalkMe. “In 2023, we expect to continue seeing gains in operational
efficiency and achieve free cash flow positive in the fourth
quarter, while investing in exciting developments in AI that
harness our unmatched access to data across billions of
interactions to deliver better experiences for our customers and
their employees.”
Fourth Quarter
2022 Financial
Highlights:
- Revenue: Total revenue was $64.9 million in
the fourth quarter of 2022, an increase of 22% year-over-year.
Subscription revenue was $58.7 million, an increase of 21%
year-over-year.
- Annualized Recurring Revenue (ARR)*: ARR grew
19% year-over-year to $262 million as of December 31, 2022.
- Remaining Performance Obligation (RPO): was
$374 million as of December 31, 2022, an increase of 18%
year-over-year.
- GAAP Gross Margin: was 81% in the fourth
quarter of 2022 compared to 76% in the fourth quarter of 2021.
- GAAP Operating Loss: was $22.6 million in the
fourth quarter of 2022, or 35% of total revenue, compared to $29.1
million, or 55% of total revenue, in the fourth quarter of
2021.
- Non-GAAP Operating Loss*: was $10.5 million in
the fourth quarter of 2022, or 16% of total revenue, compared to
$18.9 million, or 35% of total revenue, in the fourth quarter of
2021.
- Cash Flow: Net cash used in operations in the
fourth quarter of 2022 was $8.8 million, or 14% of total revenue,
compared to $13.9 million used in operations or 26% of total
revenue, in the fourth quarter of 2021.
- Free Cash Flow*: was negative $10.2 million in
the fourth quarter of 2022, or 16% of total revenue, compared to
negative $16.4 million, or 31% of total revenue, in the fourth
quarter of 2021.
- Cash, Cash Equivalents, Short-term Deposits and
Marketable Securities: were $304.9 million as of December
31, 2022.
Full Year 2022 Financial
Highlights:
- Revenue: Total revenue was $245 million in
2022, an increase of 27% year-over-year. Subscription revenue was
$221 million, an increase of 26% year-over-year.
- GAAP Gross Margin: was 78% in 2022 compared to
76% in 2021.
- GAAP Operating
Loss: was $109.8 million in 2022, or 45% of total
revenue, compared to $77.8 million, or 40% of total revenue in
2021.
- Non-GAAP Operating Loss*: was
$58.3 million in the fourth quarter of 2022, or 24% of total
revenue, compared to $50.2 million, or 26% of total revenue in
2021.
- Cash Flow:
Net cash used in operations in 2022 was $46.8 million, or 19% of
total revenue, compared to $34.2 million used in operations or 18%
of total revenue in 2021.
- Free Cash
Flow*: was negative $53.9 million in 2022, or 22%
of total revenue, compared to negative $40.8 million, or 21% of
total revenue in 2021.
“We ended the quarter strong against our strategic priorities
driving growth in the enterprise segment, our partner ecosystem,
and in the U.S. Federal market during a challenging economic
environment,” said Hagit Ynon, CFO of WalkMe. “We will continue to
reap the benefits from our investments in these spaces as we push
for additional operational leverage to reach positive free cash
flow by the fourth quarter of 2023 and for the full year of
2024.”
Fourth Quarter and
Recent Business
Highlights:
- Hagit Ynon was named Chief Financial Officer, having served as
EVP of Finance for over 3 years with the company and most recently
as Interim CFO.
- In the fourth quarter, WalkMe added eighteen net new
Enterprise-Wide DAP customers for a total of 173, representing DAP
customer count growth of 37% year-over-year. ARR from DAP customers
grew 63% year-over-year.
- Customers with over $1 million in ARR grew 26% year-over-year
to 39 representing 32% of total ARR. Customers with over $100,000
in ARR grew 13% year-over-year to 514 and customers.
- ARR from customers with 500 or more employees grew 22% year
over year and now represents 94% of total ARR.
- Continued progress with Federal Market signing two Federal
customers through partner channels and progress towards
Federal.
- WalkMe was the only DAP provider named as one of the 2023 Top
50 Products for Enterprises by G2 Crowd.
Financial Outlook:
For the first quarter of 2023, the Company currently
expects:
- Total revenue of $64.6 to $65.6 million, representing a growth
rate of 14% to 15% year-over-year
- Non-GAAP operating loss* of $11 to $10 million
For the full year 2023, the Company currently expects:
- Total revenue of $269 to $276 million, representing a growth
rate of 10% to 13% year-over-year
- Non-GAAP operating loss* of $29 to $26 million
*The section titled “Non-GAAP Financial Measures and Key
Performance Indicators” below contains a description of the
non-GAAP financial measures discussed in this press release and
reconciliations between historical GAAP and non-GAAP information
are contained in the tables below. The Company is unable to provide
a reconciliation of non-GAAP Operating Income (Loss) to Operating
Income (Loss), its most directly comparable GAAP financial measure,
on a forward-looking basis without unreasonable effort, because
items that impact this GAAP financial measure are not within the
Company’s control and/or cannot be reasonably predicted. These
items may include, but are not limited to, predicting
forward-looking share-based compensation. Such information may have
a significant, and potentially unpredictable, impact on the
Company’s future financial results.
Throughout this press release, we provide a number of key
performance indicators used by our management and often used by
competitors in our industry. These and other key performance
indicators are discussed in more detail in the section entitled
“Non-GAAP Financial Measures and Key Performance Indicators” in
this press release.
Conference Call
Information:
WalkMe will host a conference call and live webcast for analysts
and investors at 5:00 a.m. Pacific Time on February 15, 2023. The
press release with the financial results as well as the investor
presentation materials will be accessible from the Company’s
website prior to the conference call.
A live webcast of the conference call will be accessible on the
WalkMe investor relations website at https://ir.walkme.com.
Approximately one hour after completion of the live call and for
at least 30 days thereafter, an archived version of the webcast
will be available on the Company’s investor relations website at
https://ir.walkme.com.
Supplemental Financial
and Other Information:
We intend to announce material information to the public through
the WalkMe Investor Relations website at ir.walkme.com, SEC
filings, press releases, public conference calls, and public
webcasts. We use these channels to communicate with our investors,
customers, and the public about our company, our offerings, and
other issues. As such, we encourage investors, the media, and
others to follow the channels listed above, and to review the
information disclosed through such channels.
Any updates to the list of disclosure channels through which we
will announce information will be posted on the investor relations
page of our website.
Non-GAAP Financial
Measures and Key Performance Indicators:
In addition to our financial results reported in accordance with
GAAP, this press release and the accompanying tables and related
presentation materials may contain one or more of the following
non-GAAP financial measures: Non-GAAP Gross Profit, Non-GAAP Gross
Margin, Non-GAAP Operating Income (Loss), Non-GAAP Operating
Margin, Non-GAAP Net Income (Loss) attributable to WalkMe Ltd.,
Non-GAAP Net Income (Loss) per share attributable to WalkMe Ltd.
and Free Cash Flow, all of which are non-GAAP financial measures.
We believe that these measures provide useful information about
operating results, enhance the overall understanding of past
financial performance and future prospects, and allow for greater
transparency with respect to key measures used by management in its
financial and operational decision making. Non-GAAP financial
measures have limitations as analytical tools and may differ from
similarly titled measures presented by other companies. The
presentation of this financial information is not intended to be
considered as a substitute for the financial information prepared
and presented in accordance with GAAP. Investors are encouraged to
review the related GAAP financial measures and the reconciliation
of these non-GAAP financial measures to their most directly
comparable GAAP financial measures and not rely on any single
financial measure to evaluate our business.
Non-GAAP Gross Profit and Non-GAAP Gross Margin. We define
Non-GAAP Gross Profit as gross profit excluding share-based
compensation and amortization of acquired intangibles. We exclude
these items because they occur for reasons that may be unrelated to
our core operating performance during the period, and because we
believe that such items may obscure underlying business trends and
make comparisons of long-term performance difficult. We use
Non-GAAP Gross Profit with traditional GAAP measures to evaluate
our financial performance. Non-GAAP Gross Margin is calculated as a
percentage of revenues.
Non-GAAP Operating Income (Loss) and Non-GAAP Operating Margin.
We define Non-GAAP Operating Income (Loss) as income (loss) from
operations excluding share-based compensation and amortization and
impairment of acquired intangibles. We exclude these items because
they occur for reasons that may be unrelated to our core operating
performance during the period, and because we believe that such
items may obscure underlying business trends and make comparisons
of long-term performance difficult. We use Non-GAAP Operating
Income (Loss) with traditional GAAP measures to evaluate our
financial performance. Non-GAAP Operating Margin is calculated as a
percentage of revenues.
Non-GAAP Net Income (Loss) attributable to WalkMe Ltd. We define
Non-GAAP Net Income (Loss) attributable to WalkMe Ltd. as Net
Income (Loss) attributable to WalkMe Ltd. excluding share-based
compensation, amortization and impairment of acquired intangibles
and adjustment attributable to non-controlling interest. We exclude
these items because they occur for reasons that may be unrelated to
our core operating performance during the period, and because we
believe that such items may obscure underlying business trends and
make comparisons of long-term performance difficult. We use
Non-GAAP Net Income (Loss) attributable to WalkMe Ltd. with
traditional GAAP measures to evaluate our financial performance.
Non-GAAP Net Income (Loss) per Share attributable to WalkMe Ltd. is
calculated based on ordinary shares outstanding after accounting
for the exchange of our outstanding convertible preferred shares
into ordinary shares as though such event had occurred at the
beginning of the periods.
Free Cash Flow. We define Free Cash Flow as net cash provided by
(used in) operating activities, less cash used for purchases of
property and equipment and capitalized internal-use software
development costs. We believe that Free Cash Flow is a useful
indicator of liquidity that provides information to management and
investors, even if negative, about the amount of cash used in our
business. Our Free Cash Flow may vary from period to period and be
impacted as we continue to invest for growth in our business.
For more information on the non-GAAP financial measures, please
see the reconciliation tables provided below. The accompanying
reconciliation tables have more details on the GAAP financial
measures that are most directly comparable to non-GAAP financial
measures and the related reconciliations between these financial
measures.
ARR. We define ARR as the annualized value of customer
subscription contracts as of the measurement date, assuming any
contract that expires during the next 12 months is renewed on its
existing terms (including contracts for which we are negotiating a
renewal). Our calculation of ARR is not adjusted for the impact of
any known or projected future events (such as customer
cancellations, upgrades or downgrades, or price increases or
decreases) that may cause any such contract not to be renewed on
its existing terms. In addition, the amount of actual revenue that
we recognize over any 12-month period is likely to differ from ARR
at the beginning of that period, sometimes significantly. This may
occur due to new bookings, cancellations, upgrades, downgrades or
other changes in pending renewals, as well as the effects of
professional services revenue and acquisitions or divestitures. As
a result, ARR should be viewed independently of, and not as a
substitute for or forecast of, revenue and deferred revenue. Our
calculation of ARR may differ from similarly titled metrics
presented by other companies.
Enterprise-Wide DAP Customers: We define Enterprise-Wide DAP
Customers as those who have purchased enterprise-wide subscriptions
or who have department-wide usage of our Digital Adoption Platform
across four or more applications.
Special Note Regarding
Forward-Looking Statements:
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. We intend such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained
in Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”) and Section 21E of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). All statements contained in
this press release other than statements of historical fact,
including, without limitation, statements regarding the Company’s
future financial results and guidance, and expectations regarding
our revenue, operating loss and free cash flow are forward-looking
statements. The words “believe,” “may,” “will,” “estimate,”
“potential,” “continue,” “anticipate,” “intend,” “expect,” “could,”
“would,” “project,” “plan,” “target,” and similar expressions are
intended to identify forward-looking statements, though not all
forward-looking statements use these words or expressions. These
forward-looking statements are subject to risks, uncertainties and
assumptions, some of which are beyond our control. In addition,
these forward-looking statements reflect our current views with
respect to future events and are not a guarantee of future
performance. Actual outcomes may differ materially from the
information contained in the forward-looking statements as a result
of a number of factors, including, without limitation, the
following: our ability to manage our growth effectively, sustain
our historical growth rate in the future or achieve or maintain
profitability; the impact of the COVID-19 pandemic or adverse
macro-economic changes on our business, financial condition and
results of operations; the growth and expansion of the markets for
our offerings and our ability to adapt and respond effectively to
evolving market conditions; our estimates of, and future
expectations regarding, our market opportunity; our ability to keep
pace with technological and competitive developments and develop or
otherwise introduce new products and solutions and enhancements to
our existing offerings; our ability to maintain the
interoperability of our offerings across devices, operating systems
and third-party applications and to maintain and expand our
relationships with third-party technology partners; the effects of
increased competition in our target markets and our ability to
compete effectively; our ability to attract and retain new
customers and to expand within our existing customer base; the
success of our sales and marketing operations, including our
ability to realize efficiencies and reduce customer acquisition
costs; the percentage of our remaining performance obligations that
we expect to recognize as revenue; our ability to meet the
service-level commitments under our customer agreements and the
effects on our business if we are unable to do so; our
relationships with, and dependence on, various third-party service
providers; our dependence on our management team and other key
employees; our ability to maintain and enhance awareness of our
brand; our ability to offer high quality customer support; our
ability to effectively develop and expand our marketing and sales
capabilities; our ability to maintain the sales prices of our
offerings and the effects of pricing fluctuations; the
sustainability of, and fluctuations in, our gross margin; risks
related to our international operations and our ability to expand
our international business operations; the effects of currency
exchange rate fluctuations on our results of operations; challenges
and risks related to our sales to government entities; our ability
to consummate acquisitions at our historical rate and at acceptable
prices, to enter into other strategic transactions and
relationships, and to manage the risks related to these
transactions and arrangements; our ability to protect our
proprietary technology, or to obtain, maintain, protect and enforce
sufficiently broad intellectual property rights therein; our
ability to maintain the security and availability of our platform,
products and solutions; our ability to comply with current and
future legislation and governmental regulations to which we are
subject or may become subject in the future; changes in applicable
tax law, the stability of effective tax rates and adverse outcomes
resulting from examination of our income or other tax returns;
risks related to political, economic and security conditions in
Israel; the effects of unfavorable conditions in our industry or
the global economy or reductions in information technology
spending; factors that may affect the future trading prices of our
ordinary shares; and other risk factors set forth in the section
titled “Risk Factors” in our Annual Report on form 20-F filed with
the Securities and Exchange Commission on March 24, 2022, and other
documents filed with or furnished to the SEC. These statements
reflect management’s current expectations regarding future events
and operating performance and speak only as of the date of this
press release. You should not put undue reliance on any
forward-looking statements. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee that future results, levels of
activity, performance and events and circumstances reflected in the
forward-looking statements will be achieved or will occur. Except
as required by applicable law, we undertake no obligation to update
or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise, after the
date on which the statements are made or to reflect the occurrence
of unanticipated events.
About WalkMe
WalkMe’s cloud-based Digital Adoption Platform enables
organizations to measure, drive and act to ultimately accelerate
their digital transformations and better realize the value of their
software investments. Our code-free platform leverages our
proprietary technology to provide visibility to an organization’s
Chief Information Officer and business leaders, while improving
user experience, productivity and efficiency for employees and
customers. Alongside walkthroughs and third-party integration
capabilities, our platform can be customized to fit an
organization’s needs.
Media Contact:Christina
Knittelpress@walkme.com
Investor Contact:John
Streppainvestors@walkme.com
WalkMe Ltd. |
|
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|
|
|
|
|
Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
|
(in
thousands, except share and per share data;
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Year
ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenues |
|
|
|
|
|
|
|
|
|
Subscription |
|
$ |
58,702 |
|
$ |
48,555 |
|
$ |
220,972 |
|
$ |
175,328 |
|
Professional services |
|
|
6,161 |
|
|
4,703 |
|
|
24,034 |
|
|
17,975 |
|
Total
revenues |
|
|
64,863 |
|
|
53,258 |
|
|
245,006 |
|
|
193,303 |
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues |
|
|
|
|
|
|
|
|
|
Subscription(1)(2) |
|
|
5,938 |
|
|
6,595 |
|
|
25,990 |
|
|
24,025 |
|
Professional services(1) |
|
|
6,511 |
|
|
6,382 |
|
|
27,894 |
|
|
22,632 |
|
Total
cost of revenues |
|
|
12,449 |
|
|
12,977 |
|
|
53,884 |
|
|
46,657 |
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
52,414 |
|
|
40,281 |
|
|
191,122 |
|
|
146,646 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
Research and development(1) |
|
|
13,964 |
|
|
14,384 |
|
|
59,468 |
|
|
48,160 |
|
Sales and marketing(1) |
|
|
45,314 |
|
|
41,294 |
|
|
176,307 |
|
|
127,719 |
|
General and administrative(1)(2) |
|
|
15,687 |
|
|
13,662 |
|
|
65,188 |
|
|
48,557 |
|
Total
operating expenses |
|
|
74,965 |
|
|
69,340 |
|
|
300,963 |
|
|
224,436 |
|
Operating
loss |
|
|
(22,551 |
) |
|
(29,059 |
) |
|
(109,841 |
) |
|
(77,790 |
) |
Financial income (expense), net |
|
|
2,954 |
|
|
128 |
|
|
5,322 |
|
|
(9 |
) |
Loss
before income taxes |
|
|
(19,597 |
) |
|
(28,931 |
) |
|
(104,519 |
) |
|
(77,799 |
) |
Income
taxes |
|
|
(1,731 |
) |
|
(521 |
) |
|
(3,831 |
) |
|
(2,494 |
) |
Net
loss |
|
|
(21,328 |
) |
|
(29,452 |
) |
|
(108,350 |
) |
|
(80,293 |
) |
Net loss
attributable to non-controlling interest |
|
|
(376 |
) |
|
(268 |
) |
|
(743 |
) |
|
(1,169 |
) |
Adjustment
attributable to non-controlling interest |
|
|
(2,337 |
) |
|
(2,703 |
) |
|
(14,979 |
) |
|
16,689 |
|
Net loss
attributable to WalkMe Ltd. |
|
$ |
(18,615 |
) |
$ |
(26,481 |
) |
$ |
(92,628 |
) |
$ |
(95,813 |
) |
Net loss per
share attributable to WalkMe Ltd. basic and diluted |
|
$ |
(0.22 |
) |
$ |
(0.32 |
) |
$ |
(1.09 |
) |
$ |
(1.85 |
) |
Weighted-average shares used in computing net loss per share
attributable to ordinary shareholders, basic and diluted |
|
|
86,235,574 |
|
|
83,633,127 |
|
|
85,116,424 |
|
|
51,763,032 |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes share-based compensation expense as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Year
ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Cost of
subscription revenues |
|
$ |
260 |
|
$ |
235 |
|
$ |
1,092 |
|
$ |
542 |
|
Cost of
professional services |
|
|
750 |
|
|
572 |
|
|
2,804 |
|
|
1,262 |
|
Research and
development |
|
|
1,889 |
|
|
1,461 |
|
|
7,285 |
|
|
3,863 |
|
Sales and
marketing |
|
|
5,191 |
|
|
3,886 |
|
|
19,126 |
|
|
8,205 |
|
General and
administrative |
|
|
3,906 |
|
|
3,877 |
|
|
19,797 |
|
|
13,460 |
|
Total
share-based compensation expense |
|
$ |
11,996 |
|
$ |
10,031 |
|
$ |
50,104 |
|
$ |
27,332 |
|
|
|
|
|
|
|
|
|
|
|
(2) Includes amortization and impairment of acquired
intangibles as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Year
ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Cost of
revenues |
|
$ |
68 |
|
$ |
176 |
|
$ |
488 |
|
$ |
299 |
|
General and
administrative |
|
|
- |
|
|
- |
|
|
979 |
|
|
- |
|
Total
amortization and impairment |
|
$ |
68 |
|
$ |
176 |
|
$ |
1,467 |
|
$ |
299 |
|
|
|
|
|
|
|
|
|
|
|
WalkMe Ltd. |
Condensed Consolidated Balance Sheets |
(in thousands; unaudited) |
|
|
|
|
|
December
31, |
|
December
31, |
|
|
2022 |
|
2021 |
Assets |
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
94,105 |
|
$ |
276,889 |
|
Short-term
deposits |
|
125,231 |
|
|
65,478 |
|
Short-term
marketable securities |
|
42,187 |
|
|
- |
|
Trade
receivables, net |
|
45,024 |
|
|
37,754 |
|
Deferred
contract acquisition costs |
|
26,287 |
|
|
20,405 |
|
Prepaid
expenses and other current assets |
|
6,243 |
|
|
7,954 |
|
|
|
|
|
|
|
|
Total
current assets |
|
339,077 |
|
|
408,480 |
|
|
|
|
|
|
Non-current
assets: |
|
|
|
|
|
|
|
|
|
Long-term
marketable securities |
|
43,334 |
|
|
- |
|
Deferred
contract acquisition costs |
|
40,110 |
|
|
35,969 |
|
Other
assets |
|
584 |
|
|
987 |
|
Property and
equipment, net |
|
13,268 |
|
|
10,885 |
|
Operating
lease right-of-use assets |
|
7,003 |
|
|
- |
|
Goodwill and
Intangible assets, net |
|
1,830 |
|
|
3,296 |
|
|
|
|
|
|
|
|
Total
non-current assets |
|
106,129 |
|
|
51,137 |
|
|
|
|
|
|
Total assets |
$ |
445,206 |
|
$ |
459,617 |
|
|
|
|
|
|
Liabilities, redeemable non-controlling interest and
shareholders’ equity |
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
Trade
payables |
$ |
5,957 |
|
$ |
6,592 |
|
Accrued
expenses and other current liabilities |
|
53,414 |
|
|
49,310 |
|
Deferred
revenues |
|
108,097 |
|
|
86,024 |
|
Total
current liabilities |
|
167,468 |
|
|
141,926 |
|
|
|
|
|
|
Long-term
liabilities: |
|
|
|
|
|
|
|
|
|
Deferred
revenues |
|
1,613 |
|
|
1,288 |
|
Other
long-term liabilities |
|
10,038 |
|
|
6,892 |
|
Operating
lease liabilities |
|
3,833 |
|
|
- |
|
|
|
|
|
|
|
|
Total
long-term liabilities |
|
15,484 |
|
|
8,180 |
|
|
|
|
|
|
|
|
Total
liabilities |
|
182,952 |
|
|
150,106 |
|
|
|
|
|
|
Redeemable
non-controlling interest |
|
8,080 |
|
|
23,901 |
|
Shareholders’ equity: |
|
|
|
|
Share
capital and additional paid-in capital |
|
688,636 |
|
|
610,193 |
|
Other
comprehensive income (loss) |
|
(1,817 |
) |
|
455 |
|
Accumulated
deficit |
|
(432,645 |
) |
|
(325,038 |
) |
Total
shareholders’ equity |
|
254,174 |
|
|
285,610 |
|
|
|
|
|
|
|
|
Total Liabilities, redeemable non-controlling interest and
shareholders’ equity |
$ |
445,206 |
|
$ |
459,617 |
|
|
|
|
|
|
WalkMe Ltd. |
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash
Flow |
|
|
|
|
|
|
|
|
|
(in
thousands; unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Year
ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Cash
flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(21,328 |
) |
$ |
(29,452 |
) |
$ |
(108,350 |
) |
$ |
(80,293 |
) |
|
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
Share-based
compensation |
|
|
11,996 |
|
|
10,031 |
|
|
50,104 |
|
|
27,332 |
|
Depreciation, amortization and impairment |
|
|
1,215 |
|
|
1,427 |
|
|
7,878 |
|
|
4,773 |
|
Operating
lease right-of-use assets and liabilities, net |
|
|
(159 |
) |
|
- |
|
|
(551 |
) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
(income) expense |
|
|
(1,226 |
) |
|
204 |
|
|
(1,758 |
) |
|
(59 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of premium and accretion of discount on marketable securities,
net |
|
|
(370 |
) |
|
- |
|
|
(370 |
) |
|
- |
|
Increase in
trade receivables, net |
|
|
(10,001 |
) |
|
(498 |
) |
|
(7,417 |
) |
|
(6,976 |
) |
Decrease
(increase) in prepaid expenses and other current assets and other
non-current assets |
|
|
2,099 |
|
|
1,163 |
|
|
1,390 |
|
|
(3,061 |
) |
Increase in
deferred contract acquisition costs |
|
|
(6,467 |
) |
|
(10,148 |
) |
|
(10,272 |
) |
|
(26,702 |
) |
Increase
(decrease) in trade payables |
|
|
1,433 |
|
|
750 |
|
|
(354 |
) |
|
906 |
|
Increase
(decrease) in accrued expenses and other current liabilities |
|
|
7,822 |
|
|
11,682 |
|
|
(3,178 |
) |
|
19,795 |
|
Increase in
deferred revenues |
|
|
5,051 |
|
|
735 |
|
|
22,924 |
|
|
28,577 |
|
Increase in
other long-term liabilities |
|
|
1,136 |
|
|
202 |
|
|
3,146 |
|
|
1,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in operating activities |
|
|
(8,799 |
) |
|
(13,904 |
) |
|
(46,808 |
) |
|
(34,225 |
) |
|
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of
intangible assets |
|
|
- |
|
|
(1,338 |
) |
|
- |
|
|
(1,338 |
) |
Purchase of
property and equipment |
|
|
(194 |
) |
|
(1,267 |
) |
|
(2,867 |
) |
|
(2,642 |
) |
Investment
in short-term deposits |
|
|
(30,000 |
) |
|
(257 |
) |
|
(170,500 |
) |
|
(66,260 |
) |
Proceeds
from short-term deposits |
|
|
20,000 |
|
|
7,716 |
|
|
112,257 |
|
|
45,003 |
|
Investment
in debt securities |
|
|
(84,881 |
) |
|
- |
|
|
(84,881 |
) |
|
- |
|
Investment
in restricted deposits |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,298 |
) |
Proceeds
from restricted deposits |
|
|
- |
|
|
266 |
|
|
295 |
|
|
2,924 |
|
Capitalization of software development costs |
|
|
(1,196 |
) |
|
(1,189 |
) |
|
(4,260 |
) |
|
(3,912 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) investing activities |
|
|
(96,271 |
) |
|
3,931 |
|
|
(149,956 |
) |
|
(27,523 |
) |
|
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from initial public offering, net of underwriting discounts and
commissions and other issuance costs |
|
|
- |
|
|
(2,367 |
) |
|
- |
|
|
263,922 |
|
Proceeds
from exercise of options |
|
|
2,489 |
|
|
622 |
|
|
5,074 |
|
|
2,867 |
|
Proceeds
from employees share purchase plan |
|
|
1,494 |
|
|
- |
|
|
9,717 |
|
|
- |
|
Issuance of
preferred shares, net |
|
|
- |
|
|
- |
|
|
- |
|
|
10,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) financing activities |
|
|
3,983 |
|
|
(1,745 |
) |
|
14,791 |
|
|
276,789 |
|
Effect of
foreign currency exchange rate changes on cash, cash equivalents,
and restricted cash |
|
|
295 |
|
|
(141 |
) |
|
(850 |
) |
|
(685 |
) |
Increase
(decrease) in cash, cash equivalents and restricted cash |
|
|
(100,792 |
) |
|
(11,859 |
) |
|
(182,823 |
) |
|
214,356 |
|
Cash, cash equivalents and restricted cash - Beginning of
period |
|
195,220 |
|
|
289,110 |
|
|
277,251 |
|
|
62,895 |
|
Cash, cash
equivalents and restricted cash - End of period |
|
$ |
94,428 |
|
$ |
277,251 |
|
$ |
94,428 |
|
$ |
277,251 |
|
|
|
|
|
|
|
|
|
|
|
WalkMe
Ltd. |
Reconciliation
from GAAP to Non-GAAP Results |
(in thousands,
except share and per share data; unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Year ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
Reconciliation of gross profit and gross
margin |
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ |
52,414 |
|
$ |
40,281 |
|
|
$ |
191,122 |
|
$ |
146,646 |
|
Plus:
Share-based compensation expense |
|
|
1,010 |
|
|
807 |
|
|
|
3,896 |
|
|
1,804 |
|
Plus:
Amortization of acquired intangibles |
|
|
68 |
|
|
176 |
|
|
|
488 |
|
|
299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
gross profit |
|
$ |
53,492 |
|
$ |
41,264 |
|
|
$ |
195,506 |
|
$ |
148,749 |
|
GAAP gross
margin |
|
|
81 |
% |
|
76 |
% |
|
|
78 |
% |
|
76 |
% |
Non-GAAP
gross margin |
|
|
82 |
% |
|
77 |
% |
|
|
80 |
% |
|
77 |
% |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating loss and operating
margin |
|
|
|
|
|
|
|
|
|
|
GAAP
operating loss |
|
$ |
(22,551 |
) |
$ |
(29,059 |
) |
|
$ |
(109,841 |
) |
$ |
(77,790 |
) |
Plus:
Share-based compensation expense |
|
|
11,996 |
|
|
10,031 |
|
|
|
50,104 |
|
|
27,332 |
|
Plus:
Amortization and impairment of acquired intangibles |
|
|
68 |
|
|
176 |
|
|
|
1,467 |
|
|
299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating loss |
|
$ |
(10,487 |
) |
$ |
(18,852 |
) |
|
$ |
(58,270 |
) |
$ |
(50,159 |
) |
GAAP
operating margin |
|
|
(35 |
)% |
|
(55 |
)% |
|
|
(45 |
)% |
|
(40 |
)% |
Non-GAAP
operating margin |
|
|
(16 |
)% |
|
(35 |
)% |
|
|
(24 |
)% |
|
(26 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net loss |
|
|
|
|
|
|
|
|
|
|
GAAP net
loss attributable to WalkMe Ltd. |
|
$ |
(18,615 |
) |
$ |
(26,481 |
) |
|
$ |
(92,628 |
) |
$ |
(95,813 |
) |
Plus:
Share-based compensation expense |
|
|
11,996 |
|
|
10,031 |
|
|
|
50,104 |
|
|
27,332 |
|
Plus:
Amortization and impairment of acquired intangibles |
|
|
68 |
|
|
176 |
|
|
|
1,467 |
|
|
299 |
|
Plus:
Adjustment attributable to non-controlling interest |
|
|
(2,337 |
) |
|
(2,703 |
) |
|
|
(14,979 |
) |
|
16,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
loss attributable to WalkMe Ltd. |
|
$ |
(8,888 |
) |
$ |
(18,977 |
) |
|
$ |
(56,036 |
) |
$ |
(51,493 |
) |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
loss per share attributable to WalkMe Ltd. basic and diluted |
|
$ |
(0.10 |
) |
$ |
(0.23 |
) |
|
$ |
(0.66 |
) |
$ |
(0.65 |
) |
Shares used
in non-GAAP per share calculations: |
|
|
|
|
|
|
|
|
|
|
GAAP
weighted-average shares used to compute net loss per share, basic
and diluted |
|
|
86,235,574 |
|
|
83,633,127 |
|
|
|
85,116,424 |
|
|
51,763,032 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
Additional
weighted average shares giving effect to exchange of convertible
preferred shares at the beginning of the period |
|
|
- |
|
|
- |
|
|
|
- |
|
|
26,972,186 |
|
Non-GAAP
weighted-average shares used to compute net loss per share, basic
and diluted |
|
|
86,235,574 |
|
|
83,633,127 |
|
|
|
85,116,424 |
|
|
78,735,218 |
|
|
|
|
|
|
|
|
|
|
|
|
WalkMe
Ltd. |
Reconciliation
of GAAP Cash Flow from Operating Activities to Free Cash
Flow |
(in thousands;
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Year
ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net cash used in operating activities |
|
$ |
(8,799 |
) |
$ |
(13,904 |
) |
$ |
(46,808 |
) |
$ |
(34,225 |
) |
Less:
Purchases of property and equipment |
|
|
(194 |
) |
|
(1,267 |
) |
|
(2,867 |
) |
|
(2,642 |
) |
Less:
Capitalized software development costs |
|
|
(1,196 |
) |
|
(1,189 |
) |
|
(4,260 |
) |
|
(3,912 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free
Cash Flow |
|
$ |
(10,189 |
) |
$ |
(16,360 |
) |
$ |
(53,935 |
) |
$ |
(40,779 |
) |
WalkMe (NASDAQ:WKME)
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