WalkMe (WKME) To Report Earnings Tomorrow: Here Is What To Expect

Jabin Bastian /
2022/05/22 8:13 am EDT

User support software provider WalkMe (NASDAQ: WKME) will be announcing earnings results tomorrow after market close. Here's what investors should know.

Last quarter WalkMe reported revenues of $53.2 million, up 36.9% year on year, beating analyst revenue expectations by 2.34%. It was a good quarter for the company, with an optimistic guidance for the next year and a strong revenue growth.

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 31.5% year on year to $56 million, improving on the 24.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.24 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 3.2%.

Looking at WalkMe's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Freshworks delivered top-line growth of 42.2% year on year, beating analyst estimates by 5.91% and The Trade Desk reported revenues up 43.4% year on year, exceeding estimates by 3.63%. Freshworks traded down 0.52% on the results, The Trade Desk was down 6.26%. Read our full analysis of Freshworks's results here and The Trade Desk's results here.

Tech stocks have had a rocky start in 2022 and software stocks have been swept alongside with it, with share price down on average 17.4% over the last month. WalkMe is down 14.1% during the same time, and is heading into the earnings with analyst price target of $25.9, compared to share price of $13.28.

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.