WalkMe (WKME) Reports Earnings Tomorrow. What To Expect

Kayode Omotosho /
2022/08/10 5:27 am EDT

User support software provider WalkMe (NASDAQ: WKME) will be announcing earnings results tomorrow before the bell. Here's what you need to know.

Last quarter WalkMe reported revenues of $56.8 million, up 33.2% year on year, beating analyst revenue expectations by 1.33%. Despite the strong topline growth, it was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter.

Is WalkMe buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting WalkMe's revenue to grow 27.1% year on year to $59.5 million, in line with the 28.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.23 per share.

WalkMe Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 2.73%.

Looking at WalkMe's peers in the sales and marketing software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. ZoomInfo delivered top-line growth of 53.5% year on year, beating analyst estimates by 4.96% and Freshworks reported revenues up 37.4% year on year, exceeding estimates by 2.95%. ZoomInfo traded up 10.5% on the results, and Freshworks was down 3.01%. Read our full analysis of ZoomInfo's results here and Freshworks's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 5.69% over the last month. WalkMe is up 23.2% during the same time, and is heading into the earnings with analyst price target of $16.4, compared to share price of $11.88.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.