WalkMe Ltd. (NASDAQ:WKME), a leading provider of digital
adoption solutions, today announced financial results for its third
quarter ended September 30, 2021.
“We are very pleased with the continued strength and execution
across our business globally with our subscription revenue growth
accelerating once again,” said Dan Adika, CEO and co-Founder of
WalkMe. “I’m proud of what we achieved during the quarter,
including signing new partnerships with Deloitte U.S. and SAP
Concur. These agreements underscore the need for a digital adoption
platform by enterprises driving digital transformation in their
businesses. Organizations are increasingly turning to WalkMe to
gather data, generate insights, and take action on how users are
interacting with software and applications across their
organization to drive adoption and ROI from their technology
investments. We are in the very early stages of a large opportunity
and believe that we are well positioned to capitalize on the market
for Digital Adoption as we continue to invest for future
growth.”
Third quarter
2021 Financial
Highlights:
- Annualized Recurring Revenue (ARR): ARR as of
September 30, 2021 grew 31% year-over-year to $201.7 million.
- Revenue: Total revenue was $50.6 million in
the third quarter of 2021, an increase of 31% year-over-year.
Subscription revenue was $46.1 million, an increase of 37%
year-over-year.
- Remaining Performance
Obligation (RPO): RPO was $272.2
million as of September 30, 2021, an increase of 49%
year-over-year.
- GAAP Operating
Loss: GAAP operating loss was $17.8 million in the
third quarter 2021, or 35.3% of total revenue, compared to $12.9
million, or 33.4% of total revenue, in the third quarter of
2020.
- Non-GAAP Operating Loss was
$10.1 million in the third quarter of 2021, or 20.0% of total
revenue, compared to $6.3 million, or 16.3% of total revenue, in
the third quarter of 2020.
- Cash Flow: Net cash used in
operations in the third quarter 2021 was $11.3 million, or 22.2% of
total revenue, compared to $0.4 million provided by operations or
1.0% of total revenue, in the third quarter of 2020.
- Free Cash
Flow was negative $12.9 million in the third
quarter 2021, or 25.5% of total revenue, compared to negative $0.2
million, or 0.5% of total revenue, in the third quarter of
2020.
- Cash, Cash Equivalents,
and Short-term Deposits were
$361.9 million as of September 30, 2021.
“Our strong third quarter results demonstrate what we anticipate
to be continued market tailwinds for Digital Adoption and traction
that we are gaining with our ongoing strategic initiatives:
penetrating deeper into our existing customer base with
company-wide DAP deployments and expanding our partnerships with
Global System Integrators,” said Andrew Casey, CFO of WalkMe. “This
momentum is reflected in the strong growth we saw in total RPO,
which increased 49% year- over-year, and the growth we saw in the
number of enterprise-wide DAP customers, which increased 93%
year-over-year. We have also continued to aggressively invest in
our sales organization and marketing to capitalize on the large
market opportunity for Digital Adoption and fuel our future
growth.”
Third Quarter and
Recent Business
Highlights:
- Added 9 net new enterprise-wide DAP customers to 112,
representing customer count growth of 93% year-over-year. ARR from
DAP customers grew 120% year-over-year.
- ARR from customers with more than 500 employees grew 36%
year-over-year and represented 86% of total ARR.
- Customers with over $100K in ARR grew 28% year-over-year to
419.
- Expanded relationship with Global System Integrator, Deloitte,
which is investing in a dedicated team in the U.S. to provide
technology adoption solutions via its newly-created Digital
Adoption Services business, developed in conjunction with
WalkMe.
- Joined the SAP Concur partner program to deliver Concur User
Assistant by WalkMe, a new solution extension that leverages WalkMe
technology to provide relevant self-service guidance and content
within the SAP Concur environment.
- Expanded the executive leadership team with the appointment of
Wayne McCulloch as Chief Customer Officer. Wayne brings more than
25 years of experience in customer success roles and is expected to
help us advocate on behalf of the customer. He will lead all
post-sales functions, including Customer Success, Service and
Support.
Financial Outlook:
For the fourth quarter of 2021, the Company currently
expects:
- Total revenue of $51.5 to $52.5 million, representing a growth
rate of 32% to 35% year-over-year
- Non-GAAP operating loss of $19.0 to $17.0 million
For the full year 2021, the Company is raising its guidance and
currently expects:
- Total revenue of $191.5 to $192.5 million, representing a
growth rate of 29% to 30% year-over-year
- Non-GAAP operating loss of $50.3 to $48.3 million
The section titled “Non-GAAP Financial Measures” 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” in this press release.
Conference Call
Information:
WalkMe will host a conference call and live webcast for analysts
and investors at 2:00 p.m. Pacific Time on November 10, 2021. The
press release with the financial results will be accessible from
the Company’s website prior to the conference call. Interested
parties can access the call by dialing US Toll Free: (888)
204-4368, International: (929) 477-0402 using the passcode
2579815.
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:
Supplemental financial and other information can be accessed
through the Company’s investor relations website at
ir.walkme.com.
Non-GAAP Financial
Measures:
In addition to our financial results reported in accordance with
GAAP, this press release and the accompanying tables contain 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 metrics 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 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 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 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 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:
Certain statements in this press release may constitute
“forward-looking” statements and information, within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934, and the safe harbor provisions of
the U.S. Private Securities Litigation Reform Act of 1995 that
relate to our current expectations and views of future events. In
some cases, these forward-looking statements can be identified by
words or phrases such as “may,” “might,” “will,” “could,” “would,”
“should,” “expect,” “plan,” “anticipate,” “intend,” “seek,”
“believe,” “estimate,” “predict,” “potential,” “continue,”
“contemplate,” “possible” or similar words. 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 future financial performance, including our expectations
regarding our revenue, cost of revenue, gross margin, operating
expenses, cash flow and deferred revenue; 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, including variants, and related vaccination roll
out efforts, 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 Prospectus filed with the Securities
and Exchange Commission on June 16, 2021, 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 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, |
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Subscription |
|
$ |
46,088 |
|
$ |
33,634 |
|
$ |
126,773 |
|
$ |
95,398 |
|
|
|
Professional services |
|
|
4,501 |
|
|
5,022 |
|
|
13,272 |
|
|
14,000 |
|
|
|
Total
revenues |
|
|
50,589 |
|
|
38,656 |
|
|
140,045 |
|
|
109,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues |
|
|
|
|
|
|
|
|
|
|
|
Subscription(1)(2) |
|
|
5,957 |
|
|
5,226 |
|
|
17,430 |
|
|
13,633 |
|
|
|
Professional services(1) |
|
|
5,761 |
|
|
5,144 |
|
|
16,250 |
|
|
14,941 |
|
|
|
Total
cost of revenues |
|
|
11,718 |
|
|
10,370 |
|
|
33,680 |
|
|
28,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
38,871 |
|
|
28,286 |
|
|
106,365 |
|
|
80,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
Research and development(1) |
|
|
11,800 |
|
|
7,579 |
|
|
33,776 |
|
|
21,973 |
|
|
|
Sales and marketing(1) |
|
|
31,885 |
|
|
21,508 |
|
|
86,425 |
|
|
64,346 |
|
|
|
General and administrative(1) |
|
|
13,034 |
|
|
12,103 |
|
|
34,895 |
|
|
22,173 |
|
|
|
Total
operating expenses |
|
|
56,719 |
|
|
41,190 |
|
|
155,096 |
|
|
108,492 |
|
|
|
Operating
loss |
|
|
(17,848 |
) |
|
(12,904 |
) |
|
(48,731 |
) |
|
(27,668 |
) |
|
|
Financial income (expense), net |
|
|
(184 |
) |
|
169 |
|
|
(137 |
) |
|
(275 |
) |
|
|
Loss
before income taxes |
|
|
(18,032 |
) |
|
(12,735 |
) |
|
(48,868 |
) |
|
(27,943 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes |
|
|
(771 |
) |
|
(511 |
) |
|
(1,973 |
) |
|
(1,116 |
) |
|
|
Net
loss |
|
|
(18,803 |
) |
|
(13,246 |
) |
|
(50,841 |
) |
|
(29,059 |
) |
|
|
Net loss
attributable to non-controlling interest |
|
|
(280 |
) |
|
(206 |
) |
|
(901 |
) |
|
(1,073 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment attributable to non-controlling interest |
|
|
4,289 |
|
|
2,450 |
|
|
19,392 |
|
|
3,412 |
|
|
|
Deemed
dividend to ordinary shareholders |
|
|
- |
|
|
- |
|
|
- |
|
|
4,569 |
|
|
|
Net loss
attributable to WalkMe Ltd. |
|
$ |
(22,812 |
) |
$ |
(15,490 |
) |
$ |
(69,332 |
) |
$ |
(35,967 |
) |
|
|
Net loss per share attributable to WalkMe Ltd. basic and
diluted |
$ |
(0.27 |
) |
$ |
(1.16 |
) |
$ |
(1.69 |
) |
$ |
(2.75 |
) |
|
|
Weighted-average shares used in computing net loss per share
attributable to ordinary shareholders, basic and diluted |
|
|
83,347,949 |
|
|
13,328,903 |
|
|
41,022,927 |
|
|
13,067,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes share-based compensation expense as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Nine months
ended |
|
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
Cost of
subscription revenues |
|
$ |
165 |
|
$ |
14 |
|
$ |
307 |
|
$ |
37 |
|
|
|
Cost of
professional services |
|
|
376 |
|
|
39 |
|
|
690 |
|
|
93 |
|
|
|
Research and
development |
|
|
1,120 |
|
|
116 |
|
|
2,402 |
|
|
459 |
|
|
|
Sales and
marketing |
|
|
2,264 |
|
|
249 |
|
|
4,319 |
|
|
677 |
|
|
|
General and
administrative |
|
|
3,759 |
|
|
6,178 |
|
|
9,583 |
|
|
6,728 |
|
|
|
Total
share-based compensation expense |
|
$ |
7,684 |
|
$ |
6,596 |
|
$ |
17,301 |
|
$ |
7,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes amortization of acquired intangibles as
follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Nine months
ended |
|
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
Cost of
revenues |
|
$ |
67 |
|
$ |
- |
|
$ |
123 |
|
$ |
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WalkMe Ltd. |
|
Condensed Consolidated Balance Sheets |
|
(in thousands; unaudited) |
|
|
|
|
|
|
|
September
30, |
|
December
31, |
|
|
|
2021 |
|
|
2020 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
288,760 |
|
$ |
62,328 |
|
|
Short-term deposits |
|
73,151 |
|
|
44,159 |
|
|
Trade receivables, net |
|
37,259 |
|
|
30,859 |
|
|
Deferred contract acquisition costs |
|
17,113 |
|
|
10,712 |
|
|
Prepaid expenses and other current assets |
|
8,978 |
|
|
4,067 |
|
|
Total
current assets |
|
425,261 |
|
|
152,125 |
|
|
|
|
|
|
|
|
Non-current
assets: |
|
|
|
|
|
|
|
|
|
|
|
Deferred contract acquisition costs |
|
29,170 |
|
|
19,017 |
|
|
Other long-term assets |
|
1,112 |
|
|
3,036 |
|
|
Property and equipment, net |
|
9,638 |
|
|
8,629 |
|
|
Goodwill and Intangible assets, net |
|
2,166 |
|
|
1,481 |
|
|
Total
long-term assets |
|
42,086 |
|
|
32,163 |
|
|
|
|
|
|
|
|
Total assets |
$ |
467,347 |
|
$ |
184,288 |
|
|
|
|
|
|
|
|
Liabilities, redeemable non-controlling interest,
convertible preferred shares and shareholders’ equity
(deficit) |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Trade payables |
$ |
5,796 |
|
$ |
5,513 |
|
|
Accrued expenses and other current liabilities |
|
40,047 |
|
|
29,543 |
|
|
Deferred revenues |
|
85,574 |
|
|
57,467 |
|
|
Total
current liabilities |
|
131,417 |
|
|
92,523 |
|
|
|
|
|
|
|
|
Long-term
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Deferred revenues |
|
1,068 |
|
|
1,478 |
|
|
Deferred tax liabilities, net |
|
3,553 |
|
|
3,101 |
|
|
Other long-term liabilities |
|
3,137 |
|
|
2,308 |
|
|
Total
long-term liabilities |
|
7,758 |
|
|
6,887 |
|
|
Total
liabilities |
|
139,175 |
|
|
99,410 |
|
|
|
|
|
|
|
|
Redeemable
non-controlling interest |
|
26,939 |
|
|
8,647 |
|
|
Convertible
preferred shares |
|
- |
|
|
300,490 |
|
|
Shareholders’ equity (deficit): |
|
|
|
|
|
Share capital and additional paid-in capital |
|
597,000 |
|
|
21,524 |
|
|
Other comprehensive income |
|
87 |
|
|
131 |
|
|
Accumulated deficit |
|
(295,854 |
) |
|
(245,914 |
) |
|
Total
shareholders’ equity (deficit) |
|
301,233 |
|
|
(224,259 |
) |
|
Total Liabilities, redeemable non-controlling interest,
convertible preferred shares and shareholders’ equity
(deficit) |
$ |
467,347 |
|
$ |
184,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WalkMe
Ltd. |
|
Condensed
Consolidated Statements of Cash Flow |
|
(in thousands;
unaudited) |
|
|
|
|
|
|
Three months
ended |
|
Nine months
ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(18,803 |
) |
$ |
(13,246 |
) |
$ |
(50,841 |
) |
$ |
(29,059 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities: |
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
7,684 |
|
|
6,596 |
|
|
17,301 |
|
|
7,994 |
|
|
Depreciation and amortization |
|
|
1,230 |
|
|
1,169 |
|
|
3,346 |
|
|
3,605 |
|
|
Increase in accrued interest on short-term and long-term
deposits |
|
|
(103 |
) |
|
(135 |
) |
|
(263 |
) |
|
(177 |
) |
|
Decrease (increase) in trade receivables, net |
|
|
3,133 |
|
|
2,037 |
|
|
(6,478 |
) |
|
4,860 |
|
|
Decrease (increase) in prepaid expenses, other current assets and
other long-term assets |
|
|
(2,974 |
) |
|
997 |
|
|
(4,224 |
) |
|
875 |
|
|
Increase in deferred contract acquisition costs |
|
|
(5,323 |
) |
|
(1,840 |
) |
|
(16,554 |
) |
|
(5,690 |
) |
|
Increase in trade payables |
|
|
2,161 |
|
|
2,138 |
|
|
156 |
|
|
4,985 |
|
|
Increase in accrued expenses and other current liabilities |
|
|
1,904 |
|
|
4,028 |
|
|
8,113 |
|
|
4,784 |
|
|
Increase (decrease) in deferred revenues |
|
|
(818 |
) |
|
(2,323 |
) |
|
27,842 |
|
|
(72 |
) |
|
Deferred taxes, net |
|
|
130 |
|
|
163 |
|
|
452 |
|
|
355 |
|
|
Increase in other long-term liabilities |
|
|
525 |
|
|
812 |
|
|
829 |
|
|
951 |
|
|
Net cash
provided by (used in) operating activities |
|
|
(11,254 |
) |
|
396 |
|
|
(20,321 |
) |
|
(6,589 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(547 |
) |
|
(213 |
) |
|
(1,375 |
) |
|
(770 |
) |
|
Investment in short-term deposits |
|
|
(51,003 |
) |
|
- |
|
|
(66,003 |
) |
|
(45,997 |
) |
|
Proceeds from short-term deposits |
|
|
- |
|
|
- |
|
|
37,287 |
|
|
- |
|
|
Investment in restricted deposits |
|
|
- |
|
|
- |
|
|
(1,298 |
) |
|
- |
|
|
Proceeds from restricted deposits |
|
|
2,362 |
|
|
586 |
|
|
2,658 |
|
|
586 |
|
|
Capitalization of software development costs |
|
|
(1,101 |
) |
|
(361 |
) |
|
(2,723 |
) |
|
(1,084 |
) |
|
Net cash
provided by (used in) investing activities |
|
|
(50,289 |
) |
|
12 |
|
|
(31,454 |
) |
|
(47,265 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from initial public offering, net of underwriting
discounts and commissions and other issuance costs |
|
|
(596 |
) |
|
- |
|
|
266,289 |
|
|
- |
|
|
Proceeds from exercise of options |
|
|
1,092 |
|
|
296 |
|
|
2,245 |
|
|
576 |
|
|
Investment from redeemable non-controlling interest |
|
|
- |
|
|
2,330 |
|
|
- |
|
|
2,330 |
|
|
Issuance of preferred shares, net of issuance costs |
|
|
- |
|
|
- |
|
|
10,000 |
|
|
38,495 |
|
|
Net cash
provided by financing activities |
|
|
496 |
|
|
2,626 |
|
|
278,534 |
|
|
41,401 |
|
|
Effect of foreign currency exchange rate changes on cash, cash
equivalents, and restricted cash |
|
|
(105 |
) |
|
30 |
|
|
(544 |
) |
|
34 |
|
|
Increase (decrease) in cash, cash equivalents and restricted
cash |
|
(61,152 |
) |
|
3,064 |
|
|
226,215 |
|
|
(12,419 |
) |
|
Cash, cash equivalents and restricted cash at beginning of
period |
350,262 |
|
|
59,932 |
|
|
62,895 |
|
|
75,415 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
289,110 |
|
$ |
62,996 |
|
$ |
289,110 |
|
$ |
62,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
Reconciliation of gross profit and gross
margin |
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit |
|
$ |
38,871 |
|
$ |
28,286 |
|
$ |
106,365 |
|
$ |
80,824 |
|
|
|
Plus:
Share-based compensation expense |
|
|
541 |
|
|
53 |
|
|
997 |
|
|
130 |
|
|
|
Plus:
Amortization of acquired intangibles |
|
|
67 |
|
|
- |
|
|
123 |
|
|
44 |
|
|
|
Non-GAAP
gross profit |
|
$ |
39,479 |
|
$ |
28,339 |
|
$ |
107,485 |
|
$ |
80,998 |
|
|
|
GAAP gross
margin |
|
|
77 |
% |
|
73 |
% |
|
76 |
% |
|
74 |
% |
|
|
Non-GAAP
gross margin |
|
|
78 |
% |
|
73 |
% |
|
77 |
% |
|
74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating loss and operating
margin |
|
|
|
|
|
|
|
|
|
|
|
GAAP
operating loss |
|
$ |
(17,848 |
) |
$ |
(12,904 |
) |
$ |
(48,731 |
) |
$ |
(27,668 |
) |
|
|
Plus:
Share-based compensation expense |
|
|
7,684 |
|
|
6,596 |
|
|
17,301 |
|
|
7,994 |
|
|
|
Plus:
Amortization of acquired intangibles |
|
|
67 |
|
|
- |
|
|
123 |
|
|
44 |
|
|
|
Non-GAAP
operating loss |
|
$ |
(10,097 |
) |
$ |
(6,308 |
) |
$ |
(31,307 |
) |
$ |
(19,630 |
) |
|
|
GAAP
operating margin |
|
|
(35 |
)% |
|
(33 |
)% |
|
(35 |
)% |
|
(25 |
)% |
|
|
Non-GAAP
operating margin |
|
|
(20 |
)% |
|
(16 |
)% |
|
(22 |
)% |
|
(18 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net loss |
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss attributable to WalkMe Ltd. |
|
$ |
(22,812 |
) |
$ |
(15,490 |
) |
$ |
(69,332 |
) |
$ |
(35,967 |
) |
|
|
Plus:
Share-based compensation expense |
|
|
7,684 |
|
|
6,596 |
|
|
17,301 |
|
|
7,994 |
|
|
|
Plus:
Amortization of acquired intangibles |
|
|
67 |
|
|
- |
|
|
123 |
|
|
44 |
|
|
|
Plus:
Adjustment attributable to non-controlling interest |
|
|
4,289 |
|
|
2,450 |
|
|
19,392 |
|
|
3,412 |
|
|
|
Plus: Deemed
dividend to ordinary sharholders |
|
|
- |
|
|
- |
|
|
- |
|
|
4,569 |
|
|
|
Non-GAAP net
loss attributable to WalkMe Ltd. |
|
$ |
(10,772 |
) |
$ |
(6,444 |
) |
$ |
(32,516 |
) |
$ |
(19,948 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
loss per share attributable to WalkMe Ltd. basic and diluted |
|
$ |
(0.13 |
) |
$ |
(0.09 |
) |
$ |
(0.42 |
) |
$ |
(0.28 |
) |
|
|
Shares used
in non-GAAP per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
GAAP
weighted-average shares used to compute net loss per share, basic
and diluted |
|
|
83,347,949 |
|
|
13,328,903 |
|
|
41,022,927 |
|
|
13,067,677 |
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
Additional
weighted average shares giving effect to exchange of convertible
preferred shares at the beginning of the period |
|
|
- |
|
|
58,724,580 |
|
|
36,202,004 |
|
|
57,939,207 |
|
|
|
Non-GAAP
weighted-average shares used to compute net loss per share, basic
and diluted |
|
|
83,347,949 |
|
|
72,053,483 |
|
|
77,224,931 |
|
|
71,006,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
Net
cash provided by (used in) operating activities |
|
$ |
(11,254 |
) |
$ |
396 |
|
$ |
(20,321 |
) |
$ |
(6,589 |
) |
|
|
Less:
Purchases of property and equipment |
|
|
(547 |
) |
|
(213 |
) |
|
(1,375 |
) |
|
(770 |
) |
|
|
Less:
Capitalized software development costs |
|
|
(1,101 |
) |
|
(361 |
) |
|
(2,723 |
) |
|
(1,084 |
) |
|
|
Free
cash flow |
|
$ |
(12,902 |
) |
$ |
(178 |
) |
$ |
(24,419 |
) |
$ |
(8,443 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
WalkMe (NASDAQ:WKME)
Historical Stock Chart
From Jun 2024 to Jul 2024
WalkMe (NASDAQ:WKME)
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From Jul 2023 to Jul 2024