● |
Revenue. Total revenue was $59.9 million in the second quarter of 2022, an increase of 28% year-over-year. Subscription revenue was $54.2 million, an increase of 28% year-over-year.
|
● |
Annualized Recurring Revenue (ARR)*: ARR grew 29% year-over-year to $246 million as of June 30, 2022.
|
● |
RemainingPerformanceObligation(RPO): was $346 million as of June 30, 2022, an increase of 33% year-over-year.
|
● |
GAAPOperatingLoss: was $31.2 million in the second quarter of 2022, or 52% of total revenue, compared to $17.8 million, or 38% of total revenue, in the second quarter of 2021.
|
● |
Non-GAAP OperatingLoss*: was $16.7 million in the second quarter of 2022, or 28% of total revenue, compared to $11.7 million, or 25% of total revenue, in the second quarter of 2021.
|
● |
CashFlow: Net cash used in operations in the second quarter of 2022 was $10.0 million, or 17% of total revenue, compared to $6.2 million used in operations or 13% of total revenue, in the second quarter of 2021.
|
● |
FreeCashFlow*: was negative $12.2 million in the second quarter of 2022, or 20% of total revenue, compared to negative $7.4 million, or 16% of total revenue, in the second quarter of 2021.
|
● |
Cash, CashEquivalents,and Short-termDeposits were $317.9 million as of June 30, 2022.
|
● |
In the second quarter, WalkMe added eight net new Enterprise-Wide DAP* customers for a total of 142, representing DAP customer count growth of 38% year-over-year. ARR* from DAP* customers grew 60% year-over-year.
|
● |
Customers with over $100,000 in ARR* grew 23% year-over-year to 490 and customers with over $1 million in ARR grew 19% year-over-year to 31.
|
● |
In the fourth quarter of 2021, WalkMe updated and enhanced its third-party data sources for identifying customers with 500 or more employees and as a result now captures a greater number of customers in this category in the same period compared to the previous methodology. ARR* from customers with 500 or more employees grew 31% year-over-year and represented 88% of total ARR* without the new data sources. With the new data sources, ARR* from customers with 500 or more employees is now greater than 93% of total ARR*.
|
● |
WalkMe strengthened its executive bench with the appointments of Scott Little, Chief Revenue Officer, and Adriel Sanchez, Chief Marketing Officer.
|
● |
Expanded partnership with Deloitte through a strategic alliance with Deloitte Canada to bring digital adoption best practices to Canadian enterprises.
|
● |
Total revenue of $62.5 to $63.5 million, representing a growth rate of 24% to 25% year-over-year
|
● |
Non-GAAP operating loss* of $16.5 to $15.5 million
|
● |
Total revenue of $246 to $249 million, representing a growth rate of 27% to 29% year-over-year
|
● |
Non-GAAP operating loss* of $68 to $65 million
|
WalkMe Ltd.
| |||||||||
Condensed Consolidated Statements of Operations
| |||||||||
(in thousands, except share and per share data; unaudited)
|
Three months ended
|
Six months ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Revenues
| ||||||||||||||||
Subscription
|
$
|
54,200
|
$
|
42,211
|
$
|
105,589
|
$
|
80,685
| ||||||||
Professional services
|
5,742
|
4,591
|
11,201
|
8,771
| ||||||||||||
Total revenues
|
59,942
|
46,802
|
116,790
|
89,456
| ||||||||||||
Cost of revenues
| ||||||||||||||||
Subscription(1)(2) |
6,696
|
5,784
|
13,571
|
11,473
| ||||||||||||
Professional services(1) |
7,394
|
5,409
|
14,287
|
10,489
| ||||||||||||
Total cost of revenues
|
14,090
|
11,193
|
27,858
|
21,962
| ||||||||||||
Gross profit
|
45,852
|
35,609
|
88,932
|
67,494
| ||||||||||||
Operating expenses
| ||||||||||||||||
Research and development(1) |
16,120
|
11,554
|
31,595
|
21,976
| ||||||||||||
Sales and marketing(1) |
43,113
|
29,405
|
85,192
|
54,540
| ||||||||||||
General and administrative(1)(2) |
17,850
|
12,488
|
33,018
|
21,861
| ||||||||||||
Total operating expenses
|
77,083
|
53,447
|
149,805
|
98,377
| ||||||||||||
Operating loss
|
(31,231
|
)
|
(17,838
|
)
|
(60,873
|
)
|
(30,883
|
)
| ||||||||
Financial income, net
|
551
|
2
|
1,127
|
47
| ||||||||||||
Loss before income taxes
|
(30,680
|
)
|
(17,836
|
)
|
(59,746
|
)
|
(30,836
|
)
| ||||||||
Income taxes
|
(479
|
)
|
(798
|
)
|
(1,158
|
)
|
(1,202
|
)
| ||||||||
Net loss
|
(31,159
|
)
|
(18,634
|
)
|
(60,904
|
)
|
(32,038
|
)
| ||||||||
Net loss attributable to non-controlling interest
|
(91
|
)
|
(375
|
)
|
(349
|
)
|
(621
|
)
| ||||||||
Adjustment attributable to non-controlling interest
|
(3,174
|
)
|
4,287
|
(9,632
|
)
|
15,103
| ||||||||||
Net loss attributable to WalkMe Ltd.
|
$
|
(27,894
|
)
|
$
|
(22,546
|
)
|
$
|
(50,923
|
)
|
$
|
(46,520
|
)
| ||||
Net loss per share attributable to WalkMe Ltd. basic and diluted
|
$
|
(0.33
|
)
|
$
|
(0.90
|
)
|
$
|
(0.60
|
)
|
$
|
(2.38
|
)
| ||||
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted
|
84,727,799
|
24,960,581
|
84,348,046
|
19,509,660
|
Three months ended
|
Six months ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Cost of subscription revenues
|
$
|
279
|
$
|
88
|
$
|
539
|
$
|
142
| ||||||||
Cost of professional services
|
681
|
191
|
1,272
|
314
| ||||||||||||
Research and development
|
2,074
|
811
|
3,640
|
1,282
| ||||||||||||
Sales and marketing
|
4,645
|
1,262
|
8,457
|
2,055
| ||||||||||||
General and administrative
|
5,739
|
3,733
|
10,386
|
5,824
| ||||||||||||
Total share-based compensation expense
|
$
|
13,418
|
$
|
6,085
|
$
|
24,294
|
$
|
9,617
|
Three months ended
|
Six months ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Cost of revenues
|
$
|
176
|
$
|
56
|
$
|
352
|
$
|
56
| ||||||||
General and administrative
|
979
|
-
|
979
|
-
| ||||||||||||
Total amortization and impairment
|
$
|
1,155
|
$
|
56
|
$
|
1,331
|
$
|
56
|
WalkMe Ltd.
| ||||
Condensed Consolidated Balance Sheets
| ||||
(in thousands; unaudited)
|
June 30,
|
December 31,
| |||||||
2022
|
2021
| |||||||
Assets
| ||||||||
Current assets:
| ||||||||
Cash and cash equivalents
|
$
|
266,151
|
$
|
276,889
| ||||
Short-term deposits
|
51,764
|
65,478
| ||||||
Trade receivables, net
|
40,846
|
37,754
| ||||||
Deferred contract acquisition costs
|
22,761
|
20,405
| ||||||
Prepaid expenses and other current assets
|
7,857
|
7,954
| ||||||
Total current assets
|
389,379
|
408,480
| ||||||
Non-current assets:
| ||||||||
Deferred contract acquisition costs
|
36,617
|
35,969
| ||||||
Other assets
|
553
|
987
| ||||||
Property and equipment, net
|
13,006
|
10,885
| ||||||
Goodwill and Intangible assets, net
|
1,965
|
3,296
| ||||||
Total non-current assets
|
52,141
|
51,137
| ||||||
Total assets
|
$
|
441,520
|
$
|
459,617
| ||||
Liabilities, redeemable non-controlling interest and shareholders' equity
| ||||||||
Current liabilities:
| ||||||||
Trade payables
|
$
|
4,669
|
$
|
6,592
| ||||
Accrued expenses and other current liabilities
|
44,925
|
49,310
| ||||||
Deferred revenues
|
105,834
|
86,024
| ||||||
Total current liabilities
|
155,428
|
141,926
| ||||||
Long-term liabilities:
| ||||||||
Deferred revenues
|
842
|
1,288
| ||||||
Other long-term liabilities
|
7,981
|
6,892
| ||||||
Total long-term liabilities
|
8,823
|
8,180
| ||||||
Total liabilities
|
164,251
|
150,106
| ||||||
Redeemable non-controlling interest
|
13,669
|
23,901
| ||||||
Shareholders' equity:
| ||||||||
Share capital and additional paid-in capital
|
650,660
|
610,193
| ||||||
Other comprehensive income (loss)
|
(1,467
|
)
|
455
| |||||
Accumulated deficit
|
(385,593
|
)
|
(325,038
|
)
| ||||
Total shareholders' equity
|
263,600
|
285,610
| ||||||
Total Liabilities, redeemable non-controlling interest and shareholders' equity
|
$
|
441,520
|
$
|
459,617
|
WalkMe Ltd.
| |||||||||
Condensed Consolidated Statements of Cash Flow
| |||||||||
(in thousands; unaudited)
|
Three months ended
|
Six months ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Cash flows from operating activities:
| ||||||||||||||||
Net loss
|
$
|
(31,159
|
)
|
$
|
(18,634
|
)
|
$
|
(60,904
|
)
|
$
|
(32,038
|
)
| ||||
Adjustments to reconcile net loss to net cash used in operating activities:
| ||||||||||||||||
Share-based compensation
|
13,418
|
6,085
|
24,294
|
9,617
| ||||||||||||
Depreciation, amortization and impairment
|
2,477
|
1,102
|
3,973
|
2,116
| ||||||||||||
Interest on short-term and long-term deposits
|
52
|
(68
|
)
|
(34
|
)
|
(160
|
)
| |||||||||
Decrease (increase) in trade receivables, net
|
6,543
|
4,185
|
(3,194
|
)
|
(9,611
|
)
| ||||||||||
Decrease (increase) in prepaid expenses and other current assets and other non-current assets
|
3,257
|
(272
|
)
|
(141
|
)
|
(1,250
|
)
| |||||||||
Increase in deferred contract acquisition costs
|
(2,621
|
)
|
(5,250
|
)
|
(3,175
|
)
|
(11,231
|
)
| ||||||||
Decrease in trade payables
|
(1,080
|
)
|
(2,129
|
)
|
(2,064
|
)
|
(2,005
|
)
| ||||||||
Increase (decrease) in accrued expenses and other current liabilities
|
1,147
|
646
|
(7,954
|
)
|
6,209
| |||||||||||
Increase (decrease) in deferred revenues
|
(2,495
|
)
|
7,581
|
19,798
|
28,660
| |||||||||||
Increase in other long-term liabilities
|
436
|
569
|
1,089
|
626
| ||||||||||||
Net cash used in operating activities
|
(10,025
|
)
|
(6,185
|
)
|
(28,312
|
)
|
(9,067
|
)
| ||||||||
Cash flows from investing activities:
| ||||||||||||||||
Purchase of property and equipment
|
(1,388
|
)
|
(340
|
)
|
(2,038
|
)
|
(828
|
)
| ||||||||
Investment in short-term deposits
|
(16,500
|
)
|
(15,000
|
)
|
(43,500
|
)
|
(15,000
|
)
| ||||||||
Proceeds from short-term deposits
|
42,000
|
36,285
|
57,257
|
37,287
| ||||||||||||
Investment in restricted deposits
|
-
|
(296
|
)
|
-
|
(1,298
|
)
| ||||||||||
Proceeds from restricted deposits
|
295
|
296
|
295
|
296
| ||||||||||||
Capitalization of software development costs
|
(813
|
)
|
(911
|
)
|
(2,185
|
)
|
(1,622
|
)
| ||||||||
Net cash provided by investing activities
|
23,594
|
20,034
|
9,829
|
18,835
| ||||||||||||
Cash flows from financing activities:
| ||||||||||||||||
Proceeds from initial public offering, net of underwriting discounts and commissions and other issuance costs
|
-
|
266,936
|
-
|
266,885
| ||||||||||||
Proceeds from exercise of options
|
1,106
|
431
|
1,798
|
1,153
| ||||||||||||
Proceeds from employees share purchase plan
|
2,451
|
-
|
6,734
|
-
| ||||||||||||
Issuance of preferred shares, net
|
-
|
-
|
-
|
10,000
| ||||||||||||
Net cash provided by financing activities
|
3,557
|
267,367
|
8,532
|
278,038
| ||||||||||||
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash
|
(520
|
)
|
16
|
(826
|
)
|
(439
|
)
| |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
16,606
|
281,232
|
(10,777
|
)
|
287,367
| |||||||||||
Cash, cash equivalents and restricted cash - Beginning of period
|
249,868
|
69,030
|
277,251
|
62,895
| ||||||||||||
Cash, cash equivalents and restricted cash - End of period
|
$
|
266,474
|
$
|
350,262
|
$
|
266,474
|
$
|
350,262
|
WalkMe Ltd.
| ||||||||||
Reconciliation from GAAP to Non-GAAP Results
| ||||||||||
(in thousands, except share and per share data; unaudited)
|
Three months ended
|
Six months ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Reconciliation of gross profit and gross margin
| ||||||||||||||||
GAAP gross profit
|
$
|
45,852
|
$
|
35,609
|
$
|
88,932
|
$
|
67,494
| ||||||||
Plus: Share-based compensation expense
|
960
|
279
|
1,811
|
456
| ||||||||||||
Plus: Amortization of acquired intangibles
|
176
|
56
|
352
|
56
| ||||||||||||
Non-GAAP gross profit
|
$
|
46,988
|
$
|
35,944
|
$
|
91,095
|
$
|
68,006
| ||||||||
GAAP gross margin
|
76
|
%
|
76
|
%
|
76
|
%
|
75
|
%
| ||||||||
Non-GAAP gross margin
|
78
|
%
|
77
|
%
|
78
|
%
|
76
|
%
| ||||||||
Reconciliation of operating loss and operating margin
| ||||||||||||||||
GAAP operating loss
|
$
|
(31,231
|
)
|
$
|
(17,838
|
)
|
$
|
(60,873
|
)
|
$
|
(30,883
|
)
| ||||
Plus: Share-based compensation expense
|
13,418
|
6,085
|
24,294
|
9,617
| ||||||||||||
Plus: Amortization and impairment of acquired intangibles
|
1,155
|
56
|
1,331
|
56
| ||||||||||||
Non-GAAP operating loss
|
$
|
(16,658
|
)
|
$
|
(11,697
|
)
|
$
|
(35,248
|
)
|
$
|
(21,210
|
)
| ||||
GAAP operating margin
|
(52
|
)%
|
(38
|
)%
|
(52
|
)%
|
(35
|
)%
| ||||||||
Non-GAAP operating margin
|
(28
|
)%
|
(25
|
)%
|
(30
|
)%
|
(24
|
)%
| ||||||||
Reconciliation of net loss
| ||||||||||||||||
GAAP net loss attributable to WalkMe Ltd.
|
$
|
(27,894
|
)
|
$
|
(22,546
|
)
|
$
|
(50,923
|
)
|
$
|
(46,520
|
)
| ||||
Plus: Share-based compensation expense
|
13,418
|
6,085
|
24,294
|
9,617
| ||||||||||||
Plus: Amortization and impairment of acquired intangibles
|
1,155
|
56
|
1,331
|
56
| ||||||||||||
Plus: Adjustment attributable to non-controlling interest
|
(3,174
|
)
|
4,287
|
(9,632
|
)
|
15,103
| ||||||||||
Non-GAAP net loss attributable to WalkMe Ltd.
|
$
|
(16,495
|
)
|
$
|
(12,118
|
)
|
$
|
(34,930
|
)
|
$
|
(21,744
|
)
| ||||
Non-GAAP net loss per share attributable to WalkMe Ltd. basic and diluted
|
$
|
(0.19
|
)
|
$
|
(0.16
|
)
|
$
|
(0.41
|
)
|
$
|
(0.29
|
)
| ||||
Shares used in non-GAAP per share calculations:
| ||||||||||||||||
GAAP weighted-average shares used to compute net loss per share, basic and diluted
|
84,727,799
|
24,960,581
|
84,348,046
|
19,509,660
| ||||||||||||
Add:
| ||||||||||||||||
Additional weighted average shares giving effect to exchange of convertible preferred shares at the beginning of the period
|
-
|
50,075,826
|
-
|
54,603,023
| ||||||||||||
Non-GAAP weighted-average shares used to compute net loss per share, basic and diluted
|
84,727,799
|
75,036,407
|
84,348,046
|
74,112,683
|
WalkMe Ltd.
| |||||||||
Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow
| |||||||||
(in thousands; unaudited)
|
Three months ended
|
Six months ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Net cash used in operating activities
|
$
|
(10,025
|
)
|
$
|
(6,185
|
)
|
$
|
(28,312
|
)
|
$
|
(9,067
|
)
| ||||
Less: Purchases of property and equipment
|
(1,388
|
)
|
(340
|
)
|
(2,038
|
)
|
(828
|
)
| ||||||||
Less: Capitalized software development costs
|
(813
|
)
|
(911
|
)
|
(2,185
|
)
|
(1,622
|
)
| ||||||||
Free Cash Flow
|
$
|
(12,226
|
)
|
$
|
(7,436
|
)
|
$
|
(32,535
|
)
|
$
|
(11,517
|
)
|
Attachments
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Disclaimer
WalkMe Ltd. published this content on 11 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2022 11:13:41 UTC.