WalkMe Ltd. Announces Fourth Quarter & Full Year 2021 Financial Results
● |
Q4 Subscriptionrevenuegrowth accelerates to 39%year-over-yearto$48.6 million
|
● |
Remaining Performance Obligations growth accelerates to 54% year-over-year to $316.2 million
|
● |
ARR from Enterprise-wideDAPcustomersgrew by 92%year-over-year
|
● |
Expanded partner channel with strategic alliance with Accenture
|
● |
Revenue. Total revenue was $53.3 million in the fourth quarter of 2021, an increase of 37% year-over-year. Subscription revenue was $48.6 million, an increase of 39% year-over-year.
|
● |
Annualized Recurring Revenue (ARR)*: as of December 31, 2021 grew 34% year-over-year to $219.6 million.
|
● |
RemainingPerformanceObligation(RPO)*: was $316.2 million as of December 31, 2021, an increase of 54% year-over-year.
|
● |
GAAPOperatingLoss: was $29.1 million in the fourth quarter of 2021, or 55% of total revenue, compared to $15.5 million, or 40% of total revenue, in the fourth quarter of 2020.
|
● |
Non-GAAP OperatingLoss*: was $18.9 million in the fourth quarter of 2021, or 35% of total revenue, compared to $9.5 million, or 24% of total revenue, in the fourth quarter of 2020.
|
● |
CashFlow. Net cash used in operations in the fourth quarter of 2021 was $13.9 million, or 26% of total revenue, compared to $2.1 million used in operations or 5% of total revenue, in the fourth quarter of 2020.
|
● |
FreeCashFlow* was negative $16.4 million in the fourth quarter of 2021, or 31% of total revenue, compared to negative $2.6 million, or 7% of total revenue, in the fourth quarter of 2020.
|
● |
Cash, CashEquivalents,and Short-termDeposits were $342.4 million as of December 31, 2021.
|
● |
Revenue. Total revenue was $193.3 million in 2021, an increase of 30% year-over-year. Subscription revenue was $175.3 million, an increase of 35% year-over-year.
|
● |
GAAPOperatingLoss: was $77.8 million in 2021, or 40% of total revenue, compared to $43.2 million, or 29% of total revenue, in 2020.
|
● |
Non-GAAP OperatingLoss*: was $50.2 million in 2021, or 26% of total revenue, compared to $29.1 million, or 20% of total revenue, in 2020.
|
● |
CashFlow. Net cash used in operations in 2021was $34.2 million, or 18% of total revenue, compared to $8.7 million used in operations or 6% of total revenue, in 2020.
|
● |
FreeCashFlow* was negative $40.8 million in 2021, or 21% of total revenue, compared to negative $11.0 million, or 7% of total revenue, in 2020.
|
● |
In the fourth quarter, WalkMe added 14 net new enterprise-wide DAP customers for a total of 126, representing customer count growth of 64% year-over-year. ARR from DAP customers grew 92% year-over-year.
|
● |
Customers with over $100K in ARR grew 31% year-over-year to 454 and customers with over $1 million in ARR grew 63% 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 capture 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 40% year-over-year and represented 87% of total ARR without the new data source. With the new data source, ARR from customers with 500 or more employees is now greater than 92% of total ARR.
|
● |
WalkMe expanded its relationship with Accenture, with Accenture investing in expanding their capability to deploy WalkMe technology on a global scale alongside investing in their employee base with plans to increase the number of certified resources over the next year.
|
● |
We expanded the executive leadership team with the appointment of Chelsea Pyrzenski as Chief People Officer. Chelsea brings extensive experience leading and supporting high-performance teams through organizational design and change management. Chelsea will lead efforts in attracting, developing, and retaining top talent as well as overseeing our DEI and ESG programs.
|
● |
Total revenue of $55.5 to $56.5 million, representing a growth rate of 30% to 32% year-over-year
|
● |
Non-GAAP operating loss of $20.4 to $19.4 million
|
● |
Total revenue of $251 to $255 million, representing a growth rate of 30% to 32% year-over-year
|
● |
Non-GAAP operating loss of $81.0 to $75.0 million
|
WalkMe Ltd.
| ||||||||||
Condensed Consolidated Statements of Operations
| ||||||||||
(in thousands, except share and per share data; unaudited)
|
Three months ended
|
Year Ended
| |||||||||||||||
December 31,
|
December 31,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Revenues
| ||||||||||||||||
Subscription
|
$
|
48,555
|
$
|
34,905
|
$
|
175,328
|
$
|
130,303
| ||||||||
Professional services
|
4,703
|
4,003
|
17,975
|
18,003
| ||||||||||||
Total revenues
|
53,258
|
38,908
|
193,303
|
148,306
| ||||||||||||
Cost of revenues
| ||||||||||||||||
Subscription(1)(2) |
6,595
|
5,508
|
24,025
|
19,141
| ||||||||||||
Professional services(1) |
6,382
|
5,076
|
22,632
|
20,017
| ||||||||||||
Total cost of revenues
|
12,977
|
10,584
|
46,657
|
39,158
| ||||||||||||
Gross profit
|
40,281
|
28,324
|
146,646
|
109,148
| ||||||||||||
Operating expenses
| ||||||||||||||||
Research and development(1) |
14,384
|
9,587
|
48,160
|
31,560
| ||||||||||||
Sales and marketing(1) |
41,294
|
22,862
|
127,719
|
87,208
| ||||||||||||
General and administrative(1) |
13,662
|
11,368
|
48,557
|
33,541
| ||||||||||||
Total operating expenses
|
69,340
|
43,817
|
224,436
|
152,309
| ||||||||||||
Operating loss
|
(29,059
|
)
|
(15,493
|
)
|
(77,790
|
)
|
(43,161
|
)
| ||||||||
Financial income (expense), net
|
128
|
119
|
(9
|
)
|
(156
|
)
| ||||||||||
Loss before income taxes
|
(28,931
|
)
|
(15,374
|
)
|
(77,799
|
)
|
(43,317
|
)
| ||||||||
Income taxes
|
(521
|
)
|
(592
|
)
|
(2,494
|
)
|
(1,708
|
)
| ||||||||
Net loss
|
(29,452
|
)
|
(15,966
|
)
|
(80,293
|
)
|
(45,025
|
)
| ||||||||
Net loss attributable to non-controlling interest
|
(268
|
)
|
(238
|
)
|
(1,169
|
)
|
(1,311
|
)
| ||||||||
Adjustment attributable to non-controlling interest
|
(2,703
|
)
|
2,075
|
16,689
|
5,487
| |||||||||||
Deemed dividend to ordinary shareholders
|
-
|
-
|
-
|
4,569
| ||||||||||||
Net loss attributable to WalkMe Ltd.
|
$
|
(26,481
|
)
|
$
|
(17,803
|
)
|
$
|
(95,813
|
)
|
$
|
(53,770
|
)
| ||||
Net loss per share attributable to WalkMe Ltd. basic and diluted
|
$
|
(0.32
|
)
|
$
|
(1.30
|
)
|
$
|
(1.85
|
)
|
$
|
(4.07
|
)
| ||||
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted
|
83,633,127
|
13,666,871
|
51,763,032
|
13,217,183
|
(1) Includes share-based compensation expense as follows:
|
Three months ended
|
Year Ended
| |||||||||||||||
December 31,
|
December 31,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Cost of subscription revenues
|
$
|
235
|
$
|
15
|
$
|
542
|
$
|
52
| ||||||||
Cost of professional services
|
572
|
56
|
1,262
|
149
| ||||||||||||
Research and development
|
1,461
|
1,137
|
3,863
|
1,596
| ||||||||||||
Sales and marketing
|
3,886
|
428
|
8,205
|
1,105
| ||||||||||||
General and administrative
|
3,877
|
4,387
|
13,460
|
11,115
| ||||||||||||
Total share-based compensation expense
|
$
|
10,031
|
$
|
6,023
|
$
|
27,332
|
$
|
14,017
|
(2) Includes amortization of acquired intangibles as follows:
|
Three months ended
|
Year Ended
| |||||||||||||||
December 31,
|
December 31,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Cost of revenues
|
$
|
176
|
$
|
-
|
$
|
299
|
$
|
44
|
WalkMe Ltd.
| ||||
Condensed Consolidated Balance Sheets
| ||||
(in thousands; unaudited)
|
December 31,
|
December 31,
| |||||||
2021
|
2020
| |||||||
Assets
| ||||||||
Current assets:
| ||||||||
Cash and cash equivalents
|
$
|
276,889
|
$
|
62,328
| ||||
Short-term deposits
|
65,478
|
44,159
| ||||||
Trade receivables, net
|
37,754
|
30,859
| ||||||
Deferred contract acquisition costs
|
20,405
|
10,712
| ||||||
Prepaid expenses and other current assets
|
7,954
|
4,067
| ||||||
Total current assets
|
408,480
|
152,125
| ||||||
Non-current assets:
| ||||||||
Deferred contract acquisition costs
|
35,969
|
19,017
| ||||||
Other assets
|
987
|
3,036
| ||||||
Property and equipment, net
|
10,885
|
8,629
| ||||||
Goodwill and Intangible assets, net
|
3,296
|
1,481
| ||||||
Total non-current assets
|
51,137
|
32,163
| ||||||
Total assets
|
$
|
459,617
|
$
|
184,288
| ||||
Liabilities, redeemable non-controlling interest, convertible preferred shares and shareholders' equity (deficit)
| ||||||||
Current liabilities:
| ||||||||
Trade payables
|
$
|
6,592
|
$
|
5,513
| ||||
Accrued expenses and other current liabilities
|
49,310
|
29,543
| ||||||
Deferred revenues
|
86,024
|
57,467
| ||||||
Total current liabilities
|
141,926
|
92,523
| ||||||
Long-term liabilities:
| ||||||||
Deferred revenues
|
1,288
|
1,478
| ||||||
Deferred tax liabilities, net
|
4,795
|
3,101
| ||||||
Other long-term liabilities
|
2,097
|
2,308
| ||||||
Total long-term liabilities
|
8,180
|
6,887
| ||||||
Total liabilities
|
150,106
|
99,410
| ||||||
Redeemable non-controlling interest
|
23,901
|
8,647
| ||||||
Convertible preferred shares
|
-
|
300,490
| ||||||
Shareholders' equity (deficit):
| ||||||||
Share capital and additional paid-in capital
|
610,193
|
21,524
| ||||||
Other comprehensive income
|
455
|
131
| ||||||
Accumulated deficit
|
(325,038
|
)
|
(245,914
|
)
| ||||
Total shareholders' equity (deficit)
|
285,610
|
(224,259
|
)
| |||||
Total Liabilities, redeemable non-controlling interest, convertible preferred shares and shareholders' equity (deficit)
|
$
|
459,617
|
$
|
184,288
|
WalkMe Ltd.
| ||||||||||
Condensed Consolidated Statements of Cash Flow
| ||||||||||
(in thousands; unaudited)
|
Three months ended
|
Year Ended
| |||||||||||||||
December 31,
|
December 31,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Cash flows from operating activities:
| ||||||||||||||||
Net loss
|
$
|
(29,452
|
)
|
$
|
(15,966
|
)
|
$
|
(80,293
|
)
|
$
|
(45,025
|
)
| ||||
Adjustments to reconcile net loss to net cash used in operating activities:
| ||||||||||||||||
Share-based compensation
|
10,031
|
6,023
|
27,332
|
14,017
| ||||||||||||
Depreciation and amortization
|
1,427
|
1,105
|
4,773
|
4,710
| ||||||||||||
Interest on short-term and long-term deposits
|
204
|
(12
|
)
|
(59
|
)
|
(189
|
)
| |||||||||
Decrease (increase) in trade receivables, net
|
(498
|
)
|
(3,203
|
)
|
(6,976
|
)
|
1,657
| |||||||||
Decrease (increase) in prepaid expenses and other current assets and other non-current assets
|
1,163
|
1,104
|
(3,061
|
)
|
1,979
| |||||||||||
Increase in deferred contract acquisition costs
|
(10,148
|
)
|
(3,270
|
)
|
(26,702
|
)
|
(8,960
|
)
| ||||||||
Increase (decrease) in trade payables
|
750
|
(535
|
)
|
906
|
4,450
| |||||||||||
Increase in accrued expenses and other current liabilities
|
11,682
|
6,289
|
19,795
|
11,073
| ||||||||||||
Increase in deferred revenues
|
735
|
5,292
|
28,577
|
5,220
| ||||||||||||
Deferred taxes, net
|
1,242
|
189
|
1,694
|
544
| ||||||||||||
Increase (decrease) in other long-term liabilities
|
(1,040
|
)
|
920
|
(211
|
)
|
1,871
| ||||||||||
Net cash used in operating activities
|
(13,904
|
)
|
(2,064
|
)
|
(34,225
|
)
|
(8,653
|
)
| ||||||||
Cash flows from investing activities:
| ||||||||||||||||
Purchase of intangible assets
|
(1,338
|
)
|
-
|
(1,338
|
)
|
-
| ||||||||||
Purchase of property and equipment
|
(1,267
|
)
|
(52
|
)
|
(2,642
|
)
|
(822
|
)
| ||||||||
Investment in short-term deposits
|
(257
|
)
|
-
|
(66,260
|
)
|
(44,000
|
)
| |||||||||
Proceeds from short-term deposits
|
7,716
|
1,997
|
45,003
|
-
| ||||||||||||
Investment in restricted deposits
|
-
|
-
|
(1,298
|
)
|
-
| |||||||||||
Proceeds from restricted deposits
|
266
|
37
|
2,924
|
623
| ||||||||||||
Capitalization of software development costs
|
(1,189
|
)
|
(446
|
)
|
(3,912
|
)
|
(1,530
|
)
| ||||||||
Net cash provided by (used in) investing activities
|
3,931
|
1,536
|
(27,523
|
)
|
(45,729
|
)
| ||||||||||
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
|
622
|
213
|
2,867
|
789
| ||||||||||||
Investment from redeemable non-controlling interest
|
-
|
-
|
-
|
2,330
| ||||||||||||
Issuance of preferred shares, net of issuance costs
|
-
|
-
|
10,000
|
38,495
| ||||||||||||
Net cash provided by (used in) financing activities
|
(1,745
|
)
|
213
|
276,789
|
41,614
| |||||||||||
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash
|
(141
|
)
|
214
|
(685
|
)
|
248
| ||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(11,859
|
)
|
(101
|
)
|
214,356
|
(12,520
|
)
| |||||||||
Cash, cash equivalents and restricted cash - Beginning of period
|
289,110
|
62,996
|
62,895
|
75,415
| ||||||||||||
Cash, cash equivalents and restricted cash - End of period
|
$
|
277,251
|
$
|
62,895
|
$
|
277,251
|
$
|
62,895
|
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,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Reconciliation of gross profit and gross margin
| ||||||||||||||||
GAAP gross profit
|
$
|
40,281
|
$
|
28,324
|
$
|
146,646
|
$
|
109,148
| ||||||||
Plus: Share-based compensation expense
|
807
|
71
|
1,804
|
201
| ||||||||||||
Plus: Amortization of acquired intangibles
|
176
|
-
|
299
|
44
| ||||||||||||
Non-GAAP gross profit
|
$
|
41,264
|
$
|
28,395
|
$
|
148,749
|
$
|
109,393
| ||||||||
GAAP gross margin
|
76
|
%
|
73
|
%
|
76
|
%
|
74
|
%
| ||||||||
Non-GAAP gross margin
|
77
|
%
|
73
|
%
|
77
|
%
|
74
|
%
| ||||||||
Reconciliation of operating loss and operating margin
| ||||||||||||||||
GAAP operating loss
|
$
|
(29,059
|
)
|
$
|
(15,493
|
)
|
$
|
(77,790
|
)
|
$
|
(43,161
|
)
| ||||
Plus: Share-based compensation expense
|
10,031
|
6,023
|
27,332
|
14,017
| ||||||||||||
Plus: Amortization of acquired intangibles
|
176
|
-
|
299
|
44
| ||||||||||||
Non-GAAP operating loss
|
$
|
(18,852
|
)
|
$
|
(9,470
|
)
|
$
|
(50,159
|
)
|
$
|
(29,100
|
)
| ||||
GAAP operating margin
|
(55
|
)%
|
(40
|
)%
|
(40
|
)%
|
(29
|
)%
| ||||||||
Non-GAAP operating margin
|
(35
|
)%
|
(24
|
)%
|
(26
|
)%
|
(20
|
)%
| ||||||||
Reconciliation of net loss
| ||||||||||||||||
GAAP net loss attributable to WalkMe Ltd.
|
$
|
(26,481
|
)
|
$
|
(17,803
|
)
|
$
|
(95,813
|
)
|
$
|
(53,770
|
)
| ||||
Plus: Share-based compensation expense
|
10,031
|
6,023
|
27,332
|
14,017
| ||||||||||||
Plus: Amortization of acquired intangibles
|
176
|
-
|
299
|
44
| ||||||||||||
Plus: Adjustment attributable to non-controlling interest
|
(2,703
|
)
|
2,075
|
16,689
|
5,487
| |||||||||||
Plus: Deemed dividend to ordinary shareholders
|
-
|
-
|
-
|
4,569
| ||||||||||||
Non-GAAP net loss attributable to WalkMe Ltd.
|
$
|
(18,977
|
)
|
$
|
(9,705
|
)
|
$
|
(51,493
|
)
|
$
|
(29,653
|
)
| ||||
Non-GAAP net loss per share attributable to WalkMe Ltd. basic and diluted
|
$
|
(0.23
|
)
|
$
|
(0.13
|
)
|
$
|
(0.65
|
)
|
$
|
(0.42
|
)
| ||||
Shares used in non-GAAP per share calculations:
| ||||||||||||||||
GAAP weighted-average shares used to compute net loss per share, basic and diluted
|
83,633,127
|
13,666,871
|
51,763,032
|
13,217,183
| ||||||||||||
Add:
| ||||||||||||||||
Additional weighted average shares giving effect to exchange of convertible preferred shares at the beginning of the period
|
-
|
58,724,580
|
26,972,186
|
58,132,717
| ||||||||||||
Non-GAAP weighted-average shares used to compute net loss per share, basic and diluted
|
83,633,127
|
72,391,451
|
78,735,218
|
71,349,900
|
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,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Net cash used in operating activities
|
$
|
(13,904
|
)
|
$
|
(2,064
|
)
|
$
|
(34,225
|
)
|
$
|
(8,653
|
)
| ||||
Less: Purchases of property and equipment
|
(1,267
|
)
|
(52
|
)
|
(2,642
|
)
|
(822
|
)
| ||||||||
Less: Capitalized software development costs
|
(1,189
|
)
|
(446
|
)
|
(3,912
|
)
|
(1,530
|
)
| ||||||||
Free cash flow
|
$
|
(16,360
|
)
|
$
|
(2,562
|
)
|
$
|
(40,779
|
)
|
$
|
(11,005
|
)
|
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Disclaimer
WalkMe Ltd. published this content on 16 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2022 21:20:16 UTC.