WalkMe Ltd based in Israel (NASDAQ: WKM) is well established in the software as a service (SaaS) market. It provides cloud-based digital adoption solutions in the US and globally.
With a market capitalization of $1.03 billion, the stock has recorded losses of 38.66% since the start of the year.
Recently, WalkMe posted lower than expected loss and optimistic revenue in Q1 2022. Besides, it provided decent outlook for June quarter and full year 2022.
Despite the pace, shares of the company fell 3.7% during extended trading hours Monday after closing down 8.1% on the day.
Results in detail
WalkMe posted an adjusted loss of $0.22 per share, compared to an estimated loss of $0.23 per share for Street. The company reported an adjusted loss of $0.13 per share in the same quarter last year.
Among other positive news, revenue jumped 33% year-on-year to $56.8 million and beat analysts’ expectations of $56.1 million. Subscription revenue was $51.4 million, up 34%.
However, the adjusted operating loss was $18.6 million in the quarter, representing 33% of total revenue.
As of March 31, 2022, annualized recurring revenue (ARR) increased 30% year-over-year to $230 million, while the remaining performance obligation (RPO) was $318 million. dollars, up 34%.
In the first quarter, the company added eight new net DAP customers companywide, reaching a total of 134, representing customer growth of 52% year-over-year.
Encouragingly, WalkMe CEO Dan Adika said, “We have advanced our partnership program by expanding our relationship with HCL, and today announced a strategic partnership with Celonis to advance our mission to connect data, action and experience. These relationships are a key pillar of our future growth and a signal to us of the growing momentum of our category.
For 2022, the company is forecasting total revenue of $251-255 million, representing 30-32% year-over-year growth. The consensus estimate is $253 million. Adjusted operating loss is expected to be between $78 million and $74 million.
For the second quarter of 2022, total revenue is expected to be between $59 million and $60 million, representing 26% to 28% year-over-year growth. The Street’s estimate is set at $61.3 million. The adjusted operating loss is expected to be between $20 million and $19 million.
The Taking of Wall Street
The consensus among analysts is a strong buy, based on five unanimous buys. WalkMe’s average price target stands at $26.20 and implies an upside potential of around 114.75% from current levels.
TipRanks’ website traffic tool, which uses data from SEMrush Holdings (SEMR), provides insight into WalkMe’s performance.
According to the tool, an upward trend in website traffic was visible. In the first quarter of 2022, the total number of estimated visits to walkme.com showed an upward trend, globally, representing a jump of 47.19% compared to the fourth quarter and 71.29% one year to the next.
Predictions based on website visits data from TipRanks proved correct, with WalkMe reporting strong subscription revenue in Q1 2022.
In today’s era of digital transformation, WalkMe’s digital adoption solutions are gaining momentum. Therefore, based on strong earnings, decent outlook, recent stock price performance and high analyst ratings, investors may consider adding the stock to their portfolio.
Learn more about the Website Traffic Tool in this video from Youtube sensation Tom Nash.
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