WalkMe Ltd. (NASDAQ:WKME), a leading provider of digital adoption
solutions, today announced financial results for its third quarter
ended September 30, 2023.
Management Commentary
“Q3 was a milestone quarter as WalkMe achieved our goal of
reaching profitability ahead of schedule. We believe our
investments in our strategic growth drivers are paying off in the
public sector and our partner ecosystem as we continue to deliver
big value to our global customer base. With AI transformation on
the rise, Digital Adoption is now more essential than ever. WalkMe
is well positioned to help organizations drive productivity and
manage change,” said Dan Adika, CEO of WalkMe.
"We are very pleased with the financial achievements, reaching
non-GAAP profitability for the first time, reaching cash flow
positive two quarters in a row and driving operational improvement
despite lingering macro headwinds," said Hagit Ynon, CFO of WalkMe.
“WalkMe continues to improve our underlying business, enhancing our
business model, and we expect to end 2023 with positive free cash
flow for the full year and improving profitability.”
Third Quarter
2023 Financial
Highlights:
- Revenue: Total revenue was $67.0 million, an
increase of 6% year-over-year. Subscription revenue was $62.3
million, an increase of 10% year-over-year.
- Gross Margin: GAAP Gross margin was 85%
compared to 79% in the third quarter of 2022 and Non-GAAP Gross
margin was 85% compared to 80% in the third quarter of 2022.
- GAAP Operating
Loss: was $11.6 million, or 17% of total revenue,
compared to $26.4 million, or 42% in the third quarter of
2022.
- Non-GAAP Operating Income:
was $1.6 million or 2% of total revenue, compared to a loss of
($12.5) million, or (20%) in the third quarter of 2022.
- Earnings Per Share:
Non-GAAP Net Income Per Share of $0.04 and GAAP Net Loss Per Share
of ($0.10) compared to a loss of ($0.14) and ($0.27) in the third
quarter of 2022 respectively.
- Operating Cash Flow: Net cash
provided by operating activity was $7.4 million, or 11% of total
revenue, compared to ($9.7) million used in operating activity or
(15%) in the third quarter of 2022.
- Free Cash
Flow: was a positive $6.2 million or 9% of total
revenue, compared to negative ($11.2) million, or (18%) in the
third quarter of 2022.
- Cash, Cash
Equivalents, Short-term Deposits and Long-Term Marketable
Securities: were $311.5 million as of September 30,
2023.
Third Quarter and Recent
Business Highlights:
- Added 11 net new Enterprise-Wide DAP customers during the third
quarter for a total of 194 DAP customers as of September 30, 2023,
representing DAP customer count growth of 25% year-over-year.
- Customers with over $1 million in ARR grew 11% year-over-year
to 39. Customers with over $100,000 in ARR grew 5% year-over-year
to 539 customers as of the quarter end.
- WalkMe Discovery and Data AI solutions showed continued
momentum with the number of employees covered growing 85% quarter
over quarter.
- Launched Propel, a program that provides partners the
foundation to unlock enterprise-scale revenue streams by enhancing
enablement and speeding go to market.
- Hosted Realize, the premier Digital Adoption Customer and
Partner event with presentations from Nestlé, Cisco, Gap Inc.,
ServiceNow, and Deloitte Consulting LLP, among others.
- Launched its first ever ESG Report highlighting WalkMe’s
commitment to the environment, a diverse and inclusive workforce,
and governance best practices.
Financial Outlook:
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
- Non-GAAP Operating income of $1.3
to $2.3 million
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
- Non-GAAP Operating Loss of $8.3 to $7.3 million
The section titled “Non-GAAP Financial Measures and Key
Performance Indicators” below contains a description of the
non-GAAP financial measures and Key Performance Indicators
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 November 14, 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, amortization of acquired intangibles and
restructuring expenses. 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 net income (loss)
from operations excluding share-based compensation, amortization
and impairment of acquired intangible assets and restructuring
expenses. 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,
restructuring expenses 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 the
periodic weighted average of ordinary shares basic and diluted.
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.
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. We believe these customers are an
indication of the success of our customer acquisition and expansion
strategy and demonstrate the strategic demand for our Digital
Adoption Platform, the growth of our business and our potential
future business opportunities.
For more information on the non-GAAP financial measures, please
see the reconciliation tables provided in this press release. 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.
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 and
Section 21E of the Securities Exchange Act of 1934, as amended. All
statements contained in this press release other than statements of
historical fact, including, without limitation, statements
regarding the ongoing impact of the conflict in Israel on our
business and financial performance; the Company’s future financial
results, including revenue and non-GAAP operating loss guidance,
and expectations regarding the Company’s operations and future
profitability; the capabilities of and demand for the Company’s
services; the growth and evolution of the digital adoption platform
industry; the Company's future financial strategy and competitive
market position within the industry are all 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 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; risks related to the war in
Israel and the related challenges to the political, economic and
security conditions in Israel and its impact on our business,
financial performance and our actions designed to mitigate such
impact; 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 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, including
recent declines in the value of the Israeli shekel following Hamas’
attacks against Israel; 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; 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 14, 2023, 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 platform leverages 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 Knittel
press@walkme.com
Investor Contact:
John Streppa
investors@walkme.com
WalkMe Ltd. |
Condensed Consolidated Statements of
Operations |
(in thousands, except share and per share data;
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
Revenues |
|
|
|
|
|
|
|
|
|
|
Subscription |
|
$ |
62,340 |
|
$ |
56,681 |
|
|
$ |
184,364 |
|
$ |
162,270 |
|
Professional services |
|
|
4,675 |
|
|
6,672 |
|
|
|
14,701 |
|
|
17,873 |
|
Total revenues |
|
|
67,015 |
|
|
63,353 |
|
|
|
199,065 |
|
|
180,143 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
Subscription(1)(2)(3) |
|
|
6,110 |
|
|
6,481 |
|
|
|
18,957 |
|
|
20,052 |
|
Professional services(1)(3) |
|
|
4,231 |
|
|
7,096 |
|
|
|
15,431 |
|
|
21,383 |
|
Total cost of revenues |
|
|
10,341 |
|
|
13,577 |
|
|
|
34,388 |
|
|
41,435 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
56,674 |
|
|
49,776 |
|
|
|
164,677 |
|
|
138,708 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
Research and development(1)(3) |
|
|
13,259 |
|
|
13,909 |
|
|
|
41,743 |
|
|
45,504 |
|
Sales and marketing(1)(3) |
|
|
39,118 |
|
|
45,801 |
|
|
|
123,035 |
|
|
130,993 |
|
General and administrative(1)(2)(3) |
|
|
15,865 |
|
|
16,483 |
|
|
|
53,086 |
|
|
49,501 |
|
Total operating expenses |
|
|
68,242 |
|
|
76,193 |
|
|
|
217,864 |
|
|
225,998 |
|
Operating loss |
|
|
(11,568) |
|
|
(26,417) |
|
|
|
(53,187) |
|
|
(87,290) |
|
Financial income, net |
|
|
3,609 |
|
|
1,241 |
|
|
|
10,098 |
|
|
2,368 |
|
Loss before income taxes |
|
|
(7,959) |
|
|
(25,176) |
|
|
|
(43,089) |
|
|
(84,922) |
|
Income taxes |
|
|
(1,420) |
|
|
(942) |
|
|
|
(3,917) |
|
|
(2,100) |
|
Net loss |
|
|
(9,379) |
|
|
(26,118) |
|
|
|
(47,006) |
|
|
(87,022) |
|
Net loss attributable to non-controlling interest |
|
|
(50) |
|
|
(18) |
|
|
|
(197) |
|
|
(367) |
|
Adjustment attributable to non-controlling interest |
|
|
(567) |
|
|
(3,010) |
|
|
|
1,680 |
|
|
(12,642) |
|
Net loss attributable to WalkMe Ltd. |
|
$ |
(8,762) |
|
$ |
(23,090) |
|
|
$ |
(48,489) |
|
$ |
(74,013) |
|
Net loss per share attributable to WalkMe Ltd. basic and
diluted |
|
$ |
(0.10) |
|
$ |
(0.27) |
|
|
$ |
(0.55) |
|
$ |
(0.87) |
|
Weighted-average shares used in computing net loss per share
attributable to ordinary shareholders, basic and diluted |
|
|
89,374,207 |
|
|
85,508,974 |
|
|
|
88,429,867 |
|
|
84,739,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes share-based compensation expense as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Cost of subscription revenues |
|
$ |
183 |
|
$ |
293 |
|
|
$ |
782 |
|
$ |
832 |
|
Cost of professional services |
|
|
306 |
|
|
782 |
|
|
|
1,279 |
|
|
2,054 |
|
Research and development |
|
|
3,030 |
|
|
1,756 |
|
|
|
7,948 |
|
|
5,396 |
|
Sales and marketing |
|
|
4,578 |
|
|
5,478 |
|
|
|
13,133 |
|
|
13,935 |
|
General and administrative |
|
|
4,992 |
|
|
5,505 |
|
|
|
18,817 |
|
|
15,891 |
|
Total share-based compensation expense |
|
$ |
13,089 |
|
$ |
13,814 |
|
|
$ |
41,959 |
|
$ |
38,108 |
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes amortization and impairment of acquired
intangibles as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Cost of revenues |
|
$ |
68 |
|
$ |
68 |
|
|
$ |
204 |
|
$ |
420 |
|
General and administrative |
|
|
- |
|
|
- |
|
|
|
- |
|
|
979 |
|
Total amortization and impairment |
|
$ |
68 |
|
$ |
68 |
|
|
$ |
204 |
|
$ |
1,399 |
|
|
|
|
|
|
|
|
|
|
|
|
(3) Includes restructuring expense as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Cost of subscription revenues |
|
$ |
- |
|
$ |
- |
|
|
$ |
40 |
|
$ |
- |
|
Cost of professional services |
|
|
- |
|
|
- |
|
|
|
223 |
|
|
- |
|
Research and development |
|
|
- |
|
|
- |
|
|
|
86 |
|
|
- |
|
Sales and marketing |
|
|
- |
|
|
- |
|
|
|
964 |
|
|
- |
|
General and administrative |
|
|
- |
|
|
- |
|
|
|
160 |
|
|
- |
|
Total restructuring expense |
|
$ |
- |
|
$ |
- |
|
|
$ |
1,473 |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
WalkMe Ltd. |
Condensed Consolidated Balance Sheets |
(in thousands; unaudited) |
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2023 |
|
2022 |
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
192,500 |
|
$ |
94,105 |
|
Short-term deposits |
|
31,496 |
|
|
125,231 |
|
Short-term marketable securities |
|
33,796 |
|
|
42,187 |
|
Trade receivables, net |
|
38,242 |
|
|
45,024 |
|
Deferred contract acquisition costs |
|
26,518 |
|
|
26,287 |
|
Prepaid expenses and other current assets |
|
8,553 |
|
|
6,243 |
|
Total current assets |
|
331,105 |
|
|
339,077 |
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
Long-term marketable securities |
|
53,747 |
|
|
43,334 |
|
Deferred contract acquisition costs |
|
31,764 |
|
|
40,110 |
|
Other assets |
|
486 |
|
|
584 |
|
Property and equipment, net |
|
12,503 |
|
|
13,268 |
|
Operating lease right-of-use assets |
|
13,180 |
|
|
7,003 |
|
Goodwill and Intangible assets, net |
|
1,628 |
|
|
1,830 |
|
Total non-current assets |
|
113,308 |
|
|
106,129 |
|
|
|
|
|
|
Total assets |
$ |
444,413 |
|
$ |
445,206 |
|
|
|
|
|
|
Liabilities, redeemable non-controlling interest and
shareholders’ equity |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Trade payables |
$ |
3,888 |
|
$ |
5,957 |
|
Accrued expenses and other current liabilities |
|
42,235 |
|
|
53,414 |
|
Deferred revenues |
|
112,722 |
|
|
108,097 |
|
Total current liabilities |
|
158,845 |
|
|
167,468 |
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
|
Deferred revenues |
|
1,448 |
|
|
1,613 |
|
Other long-term liabilities |
|
12,916 |
|
|
10,038 |
|
Operating lease liabilities |
|
8,340 |
|
|
3,833 |
|
Total long-term liabilities |
|
22,704 |
|
|
15,484 |
|
Total liabilities |
|
181,549 |
|
|
182,952 |
|
|
|
|
|
|
Redeemable non-controlling interest |
|
9,517 |
|
|
8,080 |
|
Shareholders’ equity: |
|
|
|
|
Share capital and additional paid-in capital |
|
735,733 |
|
|
688,636 |
|
Other comprehensive loss |
|
(2,932) |
|
|
(1,817) |
|
Accumulated deficit |
|
(479,454) |
|
|
(432,645) |
|
Total shareholders’ equity |
|
253,347 |
|
|
254,174 |
|
Total Liabilities, redeemable non-controlling interest and
shareholders’ equity |
$ |
444,413 |
|
$ |
445,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WalkMe Ltd. |
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash
Flow |
|
|
|
|
|
|
|
|
|
|
(in thousands; unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(9,379) |
|
$ |
(26,118) |
|
|
$ |
(47,006) |
|
$ |
(87,022) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
13,089 |
|
|
13,814 |
|
|
|
41,959 |
|
|
38,108 |
|
Depreciation, amortization and impairment |
|
|
1,760 |
|
|
2,690 |
|
|
|
4,583 |
|
|
6,663 |
|
Operating lease right-of-use assets and liabilities, net |
|
|
(577) |
|
|
(392) |
|
|
|
(1,477) |
|
|
(392) |
|
Finance income |
|
|
556 |
|
|
(498) |
|
|
|
553 |
|
|
(532) |
|
Amortization of premium and accretion of discount on marketable
securities, net |
|
|
(498) |
|
|
- |
|
|
|
(1,508) |
|
|
- |
|
Decrease in trade receivables, net |
|
|
5,650 |
|
|
5,778 |
|
|
|
6,782 |
|
|
2,584 |
|
Decrease (increase) in prepaid expenses and other current and
non-current assets |
|
|
371 |
|
|
(568) |
|
|
|
(1,803) |
|
|
(709) |
|
Decrease (increase) in deferred contract acquisition costs |
|
|
2,406 |
|
|
(630) |
|
|
|
8,115 |
|
|
(3,805) |
|
Increase (decrease) in trade payables |
|
|
274 |
|
|
277 |
|
|
|
(2,069) |
|
|
(1,787) |
|
Decrease in accrued expenses and other current liabilities |
|
|
(2,415) |
|
|
(3,046) |
|
|
|
(10,204) |
|
|
(11,000) |
|
Increase (decrease) in deferred revenues |
|
|
(3,894) |
|
|
(1,925) |
|
|
|
5,273 |
|
|
17,873 |
|
Increase in other long-term liabilities |
|
|
79 |
|
|
921 |
|
|
|
2,926 |
|
|
2,010 |
|
Net cash provided by (used in) operating activities |
|
|
7,422 |
|
|
(9,697) |
|
|
|
6,124 |
|
|
(38,009) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(182) |
|
|
(635) |
|
|
|
(511) |
|
|
(2,673) |
|
Investment in short-term deposits |
|
|
- |
|
|
(97,000) |
|
|
|
- |
|
|
(140,500) |
|
Proceeds from short-term deposits |
|
|
20,000 |
|
|
35,000 |
|
|
|
93,500 |
|
|
92,257 |
|
Investment in marketable securities |
|
|
(19,521) |
|
|
- |
|
|
|
(43,330) |
|
|
- |
|
Proceeds from maturity of marketable securities |
|
|
14,881 |
|
|
- |
|
|
|
41,464 |
|
|
- |
|
Proceeds from restricted deposits |
|
|
- |
|
|
- |
|
|
|
- |
|
|
295 |
|
Capitalization of software development costs |
|
|
(1,005) |
|
|
(879) |
|
|
|
(2,483) |
|
|
(3,064) |
|
Net cash provided by (used in) investing activities |
|
|
14,173 |
|
|
(63,514) |
|
|
|
88,640 |
|
|
(53,685) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of options |
|
|
475 |
|
|
787 |
|
|
|
1,496 |
|
|
2,585 |
|
Proceeds from employees share purchase plan |
|
|
841 |
|
|
1,489 |
|
|
|
3,142 |
|
|
8,223 |
|
Net cash provided by financing activities |
|
|
1,316 |
|
|
2,276 |
|
|
|
4,638 |
|
|
10,808 |
|
Effect of foreign currency exchange rate changes on cash, cash
equivalents, and restricted cash |
|
|
(364) |
|
|
(319) |
|
|
|
(1,330) |
|
|
(1,145) |
|
Increase (decrease) in cash, cash equivalents and restricted
cash |
|
|
22,547 |
|
|
(71,254) |
|
|
|
98,072 |
|
|
(82,031) |
|
Cash, cash equivalents and restricted cash - Beginning of
period |
|
|
169,953 |
|
|
266,474 |
|
|
|
94,428 |
|
|
277,251 |
|
Cash, cash equivalents and restricted cash - End of period |
|
$ |
192,500 |
|
$ |
195,220 |
|
|
$ |
192,500 |
|
$ |
195,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WalkMe Ltd. |
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Results |
|
|
|
|
|
|
|
|
|
|
(in thousands, except share and per share data;
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
Reconciliation of gross profit and gross
margin |
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ |
56,674 |
|
$ |
49,776 |
|
|
$ |
164,677 |
|
$ |
138,708 |
|
Plus: Share-based compensation expense |
|
|
489 |
|
|
1,075 |
|
|
|
2,061 |
|
|
2,886 |
|
Plus: Amortization of acquired intangibles |
|
|
68 |
|
|
68 |
|
|
|
204 |
|
|
420 |
|
Plus: Restructuring expense |
|
|
- |
|
|
- |
|
|
|
263 |
|
|
- |
|
Non-GAAP gross profit |
|
$ |
57,231 |
|
$ |
50,919 |
|
|
$ |
167,205 |
|
$ |
142,014 |
|
GAAP gross margin |
|
|
85% |
|
|
79% |
|
|
|
83% |
|
|
77% |
|
Non-GAAP gross margin |
|
|
85% |
|
|
80% |
|
|
|
84% |
|
|
79% |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating expenses |
|
|
|
|
|
|
|
|
|
|
GAAP research and development |
|
$ |
13,259 |
|
$ |
13,909 |
|
|
$ |
41,743 |
|
$ |
45,504 |
|
Less: Share-based compensation expenses |
|
|
(3,030) |
|
|
(1,756) |
|
|
|
(7,948) |
|
|
(5,396) |
|
Less: Restructuring expense |
|
|
- |
|
|
- |
|
|
|
(86) |
|
|
- |
|
Non-GAAP research and development |
|
$ |
10,229 |
|
$ |
12,153 |
|
|
$ |
33,709 |
|
$ |
40,108 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP sales and marketing |
|
$ |
39,118 |
|
$ |
45,801 |
|
|
$ |
123,035 |
|
$ |
130,993 |
|
Less: Share-based compensation expenses |
|
|
(4,578) |
|
|
(5,478) |
|
|
|
(13,133) |
|
|
(13,935) |
|
Less: Restructuring expense |
|
|
- |
|
|
- |
|
|
|
(964) |
|
|
- |
|
Non-GAAP sales and marketing |
|
$ |
34,540 |
|
$ |
40,323 |
|
|
$ |
108,938 |
|
$ |
117,058 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP general and administrative |
|
$ |
15,865 |
|
$ |
16,483 |
|
|
$ |
53,086 |
|
$ |
49,501 |
|
Less: Share-based compensation expenses |
|
|
(4,992) |
|
|
(5,505) |
|
|
|
(18,817) |
|
|
(15,891) |
|
Less: impairment of acquired intangibles |
|
|
- |
|
|
- |
|
|
|
- |
|
|
(979) |
|
Less: Restructuring expense |
|
|
- |
|
|
- |
|
|
|
(160) |
|
|
- |
|
Non-GAAP general and administrative |
|
$ |
10,873 |
|
$ |
10,978 |
|
|
$ |
34,109 |
|
$ |
32,631 |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating loss and operating
margin |
|
|
|
|
|
|
|
|
|
|
GAAP operating loss |
|
$ |
(11,568) |
|
$ |
(26,417) |
|
|
$ |
(53,187) |
|
$ |
(87,290) |
|
Plus: Share-based compensation expense |
|
|
13,089 |
|
|
13,814 |
|
|
|
41,959 |
|
|
38,108 |
|
Plus: Amortization and impairment of acquired intangibles |
|
|
68 |
|
|
68 |
|
|
|
204 |
|
|
1,399 |
|
Plus: Restructuring expense |
|
|
- |
|
|
- |
|
|
|
1,473 |
|
|
- |
|
Non-GAAP operating income (loss) |
|
$ |
1,589 |
|
$ |
(12,535) |
|
|
$ |
(9,551) |
|
$ |
(47,783) |
|
GAAP operating margin |
|
|
(17)% |
|
|
(42)% |
|
|
|
(27)% |
|
|
(48)% |
|
Non-GAAP operating margin |
|
|
2% |
|
|
(20)% |
|
|
|
(5)% |
|
|
(27)% |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net loss |
|
|
|
|
|
|
|
|
|
|
GAAP net loss attributable to WalkMe Ltd. |
|
$ |
(8,762) |
|
$ |
(23,090) |
|
|
$ |
(48,489) |
|
$ |
(74,013) |
|
Plus: Share-based compensation expense |
|
|
13,089 |
|
|
13,814 |
|
|
|
41,959 |
|
|
38,108 |
|
Plus: Amortization and impairment of acquired intangibles |
|
|
68 |
|
|
68 |
|
|
|
204 |
|
|
1,399 |
|
Plus: Restructuring expense |
|
|
- |
|
|
- |
|
|
|
1,473 |
|
|
- |
|
Plus: Adjustment attributable to non-controlling interest |
|
|
(567) |
|
|
(3,010) |
|
|
|
1,680 |
|
|
(12,642) |
|
Non-GAAP net income (loss) attributable to WalkMe Ltd. |
|
$ |
3,828 |
|
$ |
(12,218) |
|
|
$ |
(3,173) |
|
$ |
(47,148) |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) per share attributable to WalkMe
Ltd. |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.04 |
|
$ |
(0.14) |
|
|
$ |
(0.04) |
|
$ |
(0.56) |
|
Diluted |
|
$ |
0.04 |
|
$ |
(0.14) |
|
|
$ |
(0.04) |
|
$ |
(0.56) |
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in non-GAAP per share calculations: |
|
|
|
|
|
|
|
|
|
|
Non-GAAP weighted-average shares used to compute net income (loss)
per share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
89,374,207 |
|
|
85,508,974 |
|
|
|
88,429,867 |
|
|
84,739,275 |
|
Diluted |
|
|
92,730,007 |
|
|
85,508,974 |
|
|
|
88,429,867 |
|
|
84,739,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WalkMe Ltd. |
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Cash Flow from Operating Activities
to Free Cash Flow |
|
|
|
|
|
|
|
(in thousands; unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
Net cash provided by (used in) operating
activities |
|
$ |
7,422 |
|
$ |
(9,697) |
|
|
$ |
6,124 |
|
$ |
(38,009) |
|
Less: Purchases of property and equipment |
|
|
(182) |
|
|
(635) |
|
|
|
(511) |
|
|
(2,673) |
|
Less: Capitalized software development costs |
|
|
(1,005) |
|
|
(879) |
|
|
|
(2,483) |
|
|
(3,064) |
|
Free Cash Flow |
|
$ |
6,235 |
|
$ |
(11,211) |
|
|
$ |
3,130 |
|
$ |
(43,746) |
|
|
|
|
|
|
|
|
|
|
|
|
WalkMe (NASDAQ:WKME)
過去 株価チャート
から 8 2024 まで 9 2024
WalkMe (NASDAQ:WKME)
過去 株価チャート
から 9 2023 まで 9 2024