WalkMe .(US:WKME)2024-02-21 12:00Financial Performance - WalkMe generated $11.5 million in free cash flow (FCF) with a 4% margin in 2023, a significant improvement from a cash burn of $53.9 million and (22%) margin in 2022[6]. - Subscription revenue reached $248 million in 2023, marking a 12% year-over-year increase, while total revenue was $267 million, up 9% year-over-year[7]. - Non-GAAP operating income for Q4 2023 was $4.8 million, or 7% of total revenue, compared to a loss of ($10.5 million) or (16%) in Q4 2022[10]. - The company reported a non-GAAP net income per share of $0.04 for 2023, compared to a loss of ($0.66) in 2022[6]. - Total revenues for Q4 2023 reached $67.889 million, a 4% increase from $64.863 million in Q4 2022[29]. - Subscription revenues increased to $63.351 million, up 8% from $58.702 million year-over-year[29]. - Gross profit for the year ended December 31, 2023, was $222.581 million, compared to $191.122 million in 2022, reflecting a 16% increase[29]. - Operating loss for Q4 2023 was $11.694 million, an improvement from a loss of $22.551 million in Q4 2022[29]. - Net loss attributable to WalkMe Ltd. for the year was $59.136 million, compared to $92.628 million in 2022, indicating a 36% reduction in losses[29]. - WalkMe Ltd. reported a net loss of $9,747,000 for Q4 2023, a significant improvement compared to a net loss of $21,328,000 in Q4 2022[32]. - The company’s total revenue for the year ended December 31, 2023, was $222,581,000, an increase from $191,122,000 in 2022[33]. - The company’s non-GAAP net income for Q4 2023 was $6,838,000, compared to a loss of $8,888,000 in Q4 2022[33]. Cash and Liquidity - Cash, cash equivalents, short-term deposits, and marketable securities totaled $321.8 million as of December 31, 2023[10]. - Cash and cash equivalents increased to $177.223 million as of December 31, 2023, up from $94.105 million in 2022[31]. - Operating cash flow for Q4 2023 was $9,156,000, a turnaround from an outflow of $8,799,000 in Q4 2022[35]. - Free cash flow for Q4 2023 was $8,355,000, compared to a negative free cash flow of $10,189,000 in Q4 2022[35]. - The company reported a total cash, cash equivalents, and restricted cash balance of $177,223,000 at the end of Q4 2023, up from $94,428,000 at the end of Q4 2022[32]. Revenue and Customer Growth - The company ended 2023 with an annual recurring revenue (ARR) of $276 million, a 5% increase year-over-year, with 96% of ARR from customers with over 500 employees[10]. - The number of Digital Adoption Platform (DAP) customers grew by 15% year-over-year, reaching 199 by the end of 2023, with ARR from DAP customers representing 53% of total ARR[10]. - WalkMe expects Q1 2024 revenue to be between $67.6 million and $68.6 million, and full-year 2024 revenue to be between $279 million and $283 million[15]. Operational Efficiency - WalkMe's gross margin improved to 83% in 2023 from 78% in 2022, while non-GAAP gross margin increased to 85% from 80%[7]. - Research and development expenses for the year were $55.107 million, down from $59.468 million in 2022[29]. - WalkMe Ltd. incurred share-based compensation expenses of $13,498,000 in Q4 2023, compared to $11,996,000 in Q4 2022[33]. Strategic Initiatives - WalkMe launched Workflow Accelerators, predefined solutions for key enterprise workflows, aimed at driving measurable business outcomes[10]. - WalkMe aims to enhance its digital adoption platform and expand its market presence amid increasing competition and evolving market conditions[27]. - WalkMe Ltd. plans to continue investing in product development and market expansion to drive future growth[33].