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WalkMe Ltd. Announces Fourth Quarter & Full Year 2021 Financial Results

  • Q4 Subscription revenue growth accelerates to 39% year-over-year to $48.6 million

  • Remaining Performance Obligations growth accelerates to 54% year-over-year to $316.2 million

  • ARR from Enterprise-wide DAP customers grew by 92% year-over-year

  • Expanded partner channel with strategic alliance with Accenture

SAN FRANCISCO, Feb. 16, 2022 (GLOBE NEWSWIRE) -- 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 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

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

)