WalkMe (WKME) Reports Earnings Tomorrow. What To Expect

Kayode Omotosho /
2023/08/09 8:04 am EDT

User support software provider WalkMe (NASDAQ: WKME) will be reporting earnings tomorrow before market open. Here's what you need to know.

Last quarter WalkMe reported revenues of $65.9 million, up 15.9% year on year, beating analyst revenue expectations by 1.31%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year.

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 9.63% year on year to $65.7 million, slowing down from 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 -$0.06 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 over the past two years on average by 1.85%.

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. Shopify delivered top-line growth of 30.8% year on year, beating analyst estimates by 4.27%, and Squarespace reported revenues up 16.4% year on year, exceeding estimates by 1.72%. Shopify traded down 1.67% on the results, and Squarespace was up 1.97%.

Read our full analysis of Shopify's results here and Squarespace's results here.

Tech stocks have been under pressure since the end of last year and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share price declining 2.75% over the last month. WalkMe is down 0.11% during the same time, and is heading into the earnings with analyst price target of $12.9, compared to share price of $8.69.

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.