WalkMe Ltd. (NASDAQ:WKME), a leading provider of digital adoption
solutions, today announced financial results for its fourth quarter
and year ended December 31, 2021.
“We completed 2021 with great momentum by accelerating our
subscription revenue landing some great new logos and expanding
within some of the largest organizations in the world. Digital
adoption is being seen as a must have for CIOs and we are seeing
the results with deeper strategic conversations and longer contract
terms,” said Dan Adika, CEO of WalkMe. “We plan to continue to
invest in 2022 to further our leadership position and deliver value
to our customers. We expect to accelerate our revenue growth in
2022 driven by our strong technology position, acceleration of the
DAP category, and our strong ecosystem – including our large
enterprise, DAP customers, and partner channels.”
Fourth Quarter
2021 Financial
Highlights:
- 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.
- Remaining Performance
Obligation (RPO)*: was $316.2
million as of December 31, 2021, an increase of 54%
year-over-year.
- GAAP Operating
Loss: 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 Operating Loss*: 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.
- Cash Flow. 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.
- Free Cash
Flow* 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, Cash Equivalents, and Short-term
Deposits were $342.4 million as of December 31, 2021.
Full Year 2021
Financial Highlights:
- 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.
- GAAP Operating
Loss: 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 Operating Loss*: was
$50.2 million in 2021, or 26% of total revenue, compared to $29.1
million, or 20% of total revenue, in 2020.
- Cash Flow. Net cash used in
operations in 2021 was $34.2 million, or 18% of total revenue,
compared to $8.7 million used in operations or 6% of total revenue,
in 2020.
- Free Cash
Flow* 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.
“Our strong results for Q4 2021 are the culmination of focused
execution on our growth strategies. Over a year ago, we put in
place significant changes in our go-to-market strategy to focus on
large commercial and enterprise customers, who often struggle with
their digital transformations,” said Andrew Casey, CFO of WalkMe.
“It is these customers who have cross organizational and
multi-application business processes that benefit most from the
WalkMe platform. This is exemplified by the ARR growth of our DAP
customers, which reached $80.3 million, an increase of 92% versus
Q4 2020. In 2022 we will continue to invest behind our growth
engines: DAP customer growth, Federal, partner, and international
expansion.”
Fourth Quarter and
Recent Business
Highlights:
- 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.
Financial Outlook:
For the first quarter of 2022, the Company currently
expects:
- 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
For the full year 2022, the Company currently expects:
- 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
*The section titled “Non-GAAP Financial Measures and Key
Performance Indicators” below contains a description of the
non-GAAP financial measures discussed in this press release and
reconciliations between historical GAAP and non-GAAP information
are contained in the tables below. The Company is unable to provide
a reconciliation of non-GAAP Operating Income (Loss) to Operating
Income (Loss), its most directly comparable GAAP financial measure,
on a forward-looking basis without unreasonable effort, because
items that impact this GAAP financial measure are not within the
Company’s control and/or cannot be reasonably predicted. These
items may include, but are not limited to, predicting
forward-looking share-based compensation. Such information may have
a significant, and potentially unpredictable, impact on the
Company’s future financial results.
Throughout this press release, we provide a number of key
performance indicators used by our management and often used by
competitors in our industry. These and other key performance
indicators are discussed in more detail in the section entitled
“Non-GAAP Financial Measures and Key Performance Indicators” in
this press release.
Conference Call
Information:
WalkMe will host a conference call and live webcast for analysts
and investors at 2:00 p.m. Pacific Time on February 16, 2022. 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. Interested parties can access
the call by dialing US Toll Free: (888) 289 - 0720, International:
(972) 3376-2182 using the passcode 7745495.
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 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,
including statements regarding the Company’s future financial
results and relationships with its customers. 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
Knittelpress@walkme.com
Investor Contact:John
Streppainvestors@walkme.com
|
|
|
|
|
|
|
|
|
|
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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