What To Expect From WalkMe's (WKME) Q1 Earnings

Radek Strnad /
2024/05/21 3:02 am EDT

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

WalkMe met analysts' revenue expectations last quarter, reporting revenues of $67.89 million, up 4.7% year on year. It was a weak quarter for the company, with management forecasting growth to slow and underwhelming revenue guidance for the next quarter.

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

This quarter, analysts are expecting WalkMe's revenue to grow 3.4% year on year to $68.11 million, slowing from the 15.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.

WalkMe Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. WalkMe has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.7% on average.

Looking at WalkMe's peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. PubMatic delivered year-on-year revenue growth of 20.4%, beating analysts' expectations by 7.3%, and Zeta reported revenues up 23.7%, topping estimates by 4.2%. PubMatic traded down 6.1% following the results while Zeta was up 18.4%.

Read our full analysis of PubMatic's results here and Zeta's results here.

There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 6.5% on average over the last month. WalkMe is up 1.1% during the same time and is heading into earnings with an average analyst price target of $13.1 (compared to the current share price of $8).

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