WalkMe (WKME) 17 Feb 222021 Q4 Earnings call transcript

Good day, and welcome to the WalkMe Fourth Quarter Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. John Streppa, Head of Investor Relations. Please go ahead sir.

for call. fourth you year and thank earnings XXXX and joining quarter our full Hello, Streppa, of John I’m Head WalkMe. Investor Relations at And Adika, Dan President Andrew joined Co-Founder; our I’m Casey, Officer. Sweary, and and CEO Financial Chief Rafi Co-Founder; today, and by U.S. may today XXXX provisions of within the XXA forward-looking statements Securities Securities XXE and of Exchange Harbor Act Exchange make the we and the of of meaning the statements Safe of constitute Certain Section Act Section the information of XXXX, Securities of of our events. Private Act current expectations to Reform that relate Litigation XXXX and future views forward-looking uncertainties our of These statements assumptions, are risks, subject beyond and are to which some control. outcomes result with in titled on Risk Actual other in a of contained a filed information Factors in number documents and the filed section our including to from SEC. the Commission differ furnished forth Exchange may prospectus Securities of and the set June as the forward-looking with XXXX the statements factors, or XX, materially those dated for Please press XX, additional see release information. our February XXXX

indicators used results, competitors In to understanding used metrics enhance a will this not throughout Further, for management The measures superior is metrics metrics. with in financial isolation allow our information financial overall information this today to past presentation and intended and number often to discuss operational addition, we transparency by operating these GAAP. or in performance information prospects, management accordance the presented and use and are respect our these about comparisons. We operational We period-to-period evaluate its by of we and and performance non-GAAP key financial greater that in by as for considered financial the provide provide useful industry. measures as used financial decision-making. call, of future to key and a prepared financial of means in or substitute certain be non-GAAP for with decision-making a will believe

that, and measures Dan. the the our over non-GAAP dated tables, For see release information key hand financial press reconciliation With including to performance more of I’ll XXXX. it indicators XX, February

year. us way record XX% to Thanks, in subscription that quarter company. for an amazing and this in to million our joining in had I for moment John, XXX customers and take an to for net we outstanding XXX deployed our up thank an hitting ARR With compared was applications amazing WalkMe in I'm over best thank ARR growth customers from million partner X the retention. you XXXk year which over end the with customers continued share to an quarter with historic and want in the and extremely We've a employees, amazing now have DAP and XX a in acceleration for customers and revenue, XX seen customers prior approaching and RPO WalkMe our was We ARR. today, more on which year history, proud XXXX. who quarter in

Our numbers. long-term it's with customers trusting digital and are goals our showing us their in

put in grew the last RPO our place reflecting long-term XX% strategy we Our of by year. execution year-over-year, go-to-market

sales working expand on a strong Our and focus execution with land is motion.

Our platform are customers real business our are outcomes being realized. embracing and

this increased fourth quarter their Specifically, next trailing have retention our for quarter XXX dollar-based or expanding putting XXX%. that to with quarter, employees our customers us. to fourth or spending customers are the retention dollar-based more from XXX%

are This regulation completed to customer always business my use goals of ever from outcomes change. today in our can I WalkMe problems to amazing compliance planet a achieving applied achieving siloed you software adapt example that approach of processes our dear with driving business business and sector ensuring world. is to is every adoption to with customers to realized are changing is customers platform needed business as around automating WalkMe customers. drive be the digital are is department our growth to and every unique experiences user correctly. to great on revenue evolving for and vision they not business better the priorities, like solution when heart, Our ensuring XXX,XXX effective one create constant, in business would shifting is largest to a employees manufacturer share the DAP technology of hardware the change including

use become business and grown application. process That organizational and and WalkMe automation employee supply WalkMe learning revenue They of million deployed to has to quickly WalkMe content the dollars drive to operational gains, chain including opportunities digital dollars excellence from and platform reps in millions empower they've benefits accelerated workforce WalkMe As ongoing productivity They strategy their through development using direct central actual XX many totaling adoption, saving and to reaped to introducing change. more the efficiency. to throughout from transformation, XXXX. onboarding is over time continuously they and due and to their sales back embraced drive in and

customer company This operating to ARR to of seen the that in complex, trying having costs They've we're reduced digital the solve consultants department put impact the is organization UX WalkMe to of on purchasing and and deliver WalkMe in customer and is And solutions with a And ARR. to traditional potential productive that and transformation. organization is Additionally, globe. market content key I digital vision workforce to ongoing The across partner example the the is year today for a the us that core dedicated better the equipping great world. X flooded experiences built to a million a power center of greater than joined and workforce, and to continuing over with the contract, organization well WalkMe, the user all journey challenge create with capital This one adapt in the value The and for and guidelines team them unified deliver is software, for experience. and shifted are and in hours real is the but need. ever. this improve overlooked. hiring perspective, amount tactical outcome unlocking with every throughout to an to bottom-line initially business. employees associated is like business the hybrid margins with with XXXk expect revenues, is they differing approach to With invest of for need software, saved acknowledge reduction fail Companies often per the implementation upskilling. adoption user digital among significant friction efforts first in business increased stage drive that units XX,XXX hours of dramatic programs excellence training onboarding processes the

user organizations a and Let's are think and an internal employee will user what software analytic new to product out first to and and a digital for second conversion. the out success. The ensure happens a product. to experience plan The zoom to tools when adoption, multiple take heart the employees to approach out retention entire implementation about ISV will user transformation. use experience, same software, need and manager adoption of should apply to experience User rolls

unique the the and User is and data experience. data, together and pass action Our key elements, action. through through goal experience is approach three

a the with into stack deeper To the dive start into must Let's tech workflow. with journey unlock digital and data. starting organization visibility

They to engage which the exists the with or how to need the steps to first process throughout workflows degree people required Specifically completed understand business the and software, a complete what use not. software. get of

experience power they the know take X experience. and and enterprise experience. knowledge any with WalkMe able user realize presentation. on action real user software in a attendees from therefore X. XXXX partner, and this biggest up on of just reap to WalkMe April to With annual software to the and mean replace on direct of They get learn their employees wanted what accelerators, action What and the knowledge and that result. action, take more they today the to really XX top of tie our best business believe are in action focus points leveraging this Realize excited With our Join what nearly and to now different the potential solution anticipate customers to analyst WalkMe existing us perfect repetitive see a power, by for we This With other so top help same everywhere. exactly adoption invite website a than for them craving need platform sessions with organizations finally take drive the comes this right can user experience the experience. work take them. editor to enterprise year, away in and practices our and action help technology perfect application no-code of action order valuable to to WalkMe immediate of customers, Organizations does need their top workflow with digital a of expect coming their hoping Which automation tasks is have and organization I'm and any design to And XXXXs can and implementation, what fire action event. us and leads want take can data investors And organization customers more the struggle takes of outcomes. to all software So they conference choose and user our fix immediate we to to to between they to you us if on experience more, friction. XXXX very and most data world's on they and work job prospect than done. deploy adoption unified data

know On the customers meaningful and change love we driving them. partner our technologies front, our for

the quarter, great our to solution already to they to realized is together to and and of the to we ecosystem Last digital adoption today digital measure seeing and give Deloitte. tools employee and partners drive from with a rapidly with the realize on number Accenture’s transformation. their with the partnership investing well. partners increase adoption, I’m technology organization scale we're needed These a customer very momentum, shared WalkMe’s as longtime pursuit As shared our to pipeline two a deploy business our is our Accenture. alongside Building change This with of in expected great processes and driving Accenture plans ability capabilities a SAP pleased partnership, partnership strategic iterate adoption are help resources their technological to customers goals this new expanding under drive the showing invest a that of continuing to and ours, their next on need partnerships of With growth. strong over the of with investing certified progress bring year. share to in base announcement global progress

market. federal sold seen early November. partnership to under quarter with in partnered of since Defense. launch Concur SAP the SAP, WalkMe U.S. with with especially in already seven-year has Our the dozens our partnership We've program success recently contract support Concur Last already customers provides the their of early WalkMe SAP prime Department awarded with with

travel operational traveler Concur to in facilitate DoD believe transaction can to adoption the and As requirements. the effort, accordance X.X a integrated excited XXXX. invest DoD capitalize Expense. via part We think modernization aid government greatly will service this we the operational plan this in ready At DoD utilizing organization. DoD by of opportunity million the solution as performance and is R&D SAP our commercial the Travel that to adaptive market continue to for DoD WalkMe and travel and to SAP full using go-to-market services deployment, Concur provide and about improve capabilities Concur defense to in our capabilities capability to learning industry-leading federal anticipate our up entire stands solution traveler annual WalkMe with on security the platform. processing

building FedRAMP and be pursuing will this status, support initiative. underway all team are out we to We the

Biden's and transformation digital on the to approach customer to developed President direct Our service. management executive alignment the newly is in order agenda

with in communicated that federal XXXX, support enthusiasm alignment these our initiatives. these two The and Our federal market to we and drivers us continue are have already for to channels partners prospect our channels expected invest in growth. growth will with

be the our leaders wouldn't progress WalkMe invest to excited seeing team Wayne executive XXXX. with to the an in continue organization brought to building to world in thank next to I all want customer preparing all without our the we and helping possible to Shinn, XXXX I'm all In WalkMe level. class we in lead our customers in and I as our know to organization, for I'm went innovation made the to can the as While success bring hard From deliver legal employees work public. world. value around and efforts McCulloch their us XXXX, Paul and amazing the it we looking we've them forward

to parted organization As WalkMe Revenue next we with Chief work to we've Officer. Orlick, optimize our level, our take Shane ways mutually the sales to

he luck spending personally the a want to four I years. and all As work this the success Shane announce to important opportunity pursuing we your to hard and in a Officer. people. venture. the experience and Chief past most you assets, our I Chelsea for drive our wish Pyrzenski, opportunity, hiring this next of new with thank our take best of friend my half vast quarter, brings success lot good In time of She People

Dynamic milestone a detects forward inefficiency, to vertical with by We We our That well that talent technology and in UI configuration, XXXX. continue technology insight momentum our XXXX errors side, in of organization. speed poor customers machine our to accomplishments. [indiscernible] any breakthrough the these CRM insights are UII look We way. helping learning experience with an Intelligence is and completely continue in to major positioned have without on people leadership automatically human deployment Microsoft automated thrilled our to identification. On we engine process our or Pulling many is with setup invest AI had data every user across in product customers. we're great we launched automated and forms. powered believe a great

ROI. fully dashboard to transformation core we leaders and allows their our our transformation order In maximize track search integrated to addition, digital launched acquisition digital our CIOs their product, in enterprise measure to IT and project we that KPI

decision progress excited of competition, we huge ahead We're well multi advanced made upon of in expanding DAP addition, which a because Azure we the XXXX with like as cloud and about vendors partnering our GCP. we're our believe give We've platform, strategy is like In huge most data technology But their product. to our XXXX. driven action. comes to the I'm enterprise when our most and power ability made UII, connect and it to and enterprises in progress data in software This business a make made to about and us, what of goals are and practice. tools, realize technology laser customers. in our federal including a that We us lies for And our our believe that able We position, XXXX. on and customers ecosystem, DAP to momentum accelerate to the the the partner ahead you visibility of explore position excited of the of and in opportunities vast channels we're opportunities success we're our XXXX, believe eager strong in business focused category progress action be our transformation. to the giving digital our

the And progress adoption the I'm to invest new focus is of to is we on opportunity it expansion moving our just beginning. we key and Our partner thrilled pipeline including the made. and to robust. operationalizing, with and I'm And so driving digital channel. with continue Andrew. presence, our know together. and I excited I'm of investment, that, And future expanding opportunities, plan building federal international for over those this capitalize R&D,

to thanks us our in success who've XXXX. achieve to all and helped of partners Thanks, Dan, customers and

XXXX million, for of sales culmination ARR their DAP growth in mentioned, we processes digital Over XX% 'XX. in on strategies. platform. the QX strategy This are benefit customers by often these is and our who large business commercial of to our put execution from XX.X that our most ago, cross is It an exemplified organizational As reached on the a results of and customers, have transformation. the versus focus focus go-to-market which WalkMe growth enterprise year customers multi-application significant our increase place with QX struggle who Dan changes

embarked strategy and it's we're and SAP, plan executing our With Microsoft the Salesforce, showing business. in relationships on of now partners. key growth accelerated the ambitious an our expand with on up also Deloitte, Accenture, We to strategic

investments confidence growth Our off gives beyond. and business and and paying are and XXXX us R&D continued marketing sales that will that investments our in in enable

impact million We The revenue let's and to Long-term quarter XXX up for was of rest our XX% enterprises million. than XX% be by quarter of year-over-year ARR. with million, XXX third-party and months quarters. for was for Now, to as for XX% more year continues RPO positioned note updated of presentation. Current representing next calculated customers year-over-year new data business. driving is from was XX of of Remaining three the saw XXX ever at growth growth continues more than XXXX. our XX.X third year-over-year, which the are employees, customers. to fourth continued expected And million the from as Total numbers. current percentage again with XXX the we this ARR XXX.X growth largest source is in a quarter year-over-year, XX% ARR Subscription our order grew ended reflected and the contracted of from source, of in XXX.X the of fourth Without year-over-year was to which In review new in we XX% the identifying growth increase employees. revenue the disclose of in the will accelerated to increases than next to customers acceleration with being as RPO and million. increasingly the XX% full we acceleration recognized representing revenue source enhanced XX.X XXX year-over-year. we total new the was ARR amount of revenue XX% customers large isolate sources obligations of additional million, ARR grew acceleration XXX more without momentum year-over-year. QX this employees and at our a outpace evidenced over source, the RPO end the ARR data growing with data to the more previously. a number the growth total With One performance category XXX our from the year-over-year of to or XX% up an customers as the XX% data success customers greater result, XXXX. our investor and continue data year-over-year employees was quarter customers from partners capture at ARR which quarter expansion than of did highest the third this of we it showing in than now level XX% million,

XX% data new the XXX with employees greater from With than now ARR. customers source than ARR greater totally of is

DAP at the look customers we We have addition, quarter added in enterprise customer DAP our customers sign XXX. on In or additions of XX DAP who across to as new an our base. platform define reach strategic are of nature four a growing customer contract as department fourth customers applications. deployed or the We more wide those

retention, our quarters Our focused execution and was evident net was the where greater also XXX trailing for XXX% was quarter. fourth dollar based over employees the XXX% four in customers than for

would I forward. Before gross XX.X to basis up going expenses profitability. gross turning fourth the XX.X% will that margins, up margin Gross In million, note year-over-year. be to quarter, like profit discussing year-over-year. XXX and was XX% results non-GAAP quarter was I points fourth

to to margin revenue, see revenue in large the from due gross margin profile. improvement a continue gross high We subscription portion coming of carries which our

our leveraging our We where and time margins will overall hosting partners as we model expect increase gross improve continue to over our optimize feasible. services engagement operations

increase global XX.X direct is year-over-year of expand. in in operating compared and hiring Followed we hiring created at focused year. in of share place fourth an for million expenses QX now quarter the investing This last category in acceleration represents XX% sales of subsequent pandemic business in to QX Turning to marketing capture a in was the return million, of the the The onset We to revenue quarter XXXX. the compared Sales growth and more levels the to in on as put fourth expenses. and continues expense the by result the normalized marketing to to activity total freeze in XXXX. XX% orders. remain for XX.X

in aggressively We year. million federal versus was QX year. all to R&D U.S. last in in This XX.X and compared coverages expense of QX in teams revenue we to represents partner total opportunities the the our in geographies. broader go-to-market also expansion last invest X.X address million continued XX% to market, see same increasing XX% across period

quarter for drive year. million our to fourth fourth G&A in R&D We in was expense our make continued to quarter last of G&A product revenue we'll compared we to invest platform X ecosystem invest the the as our to XXXX. And similar X.X innovation. extend quarter last was in year. fourth in and XX% investments in million the

business our investing are the long-term our drive in of We business. in scale infrastructure to

and a in was of capitalize for will sales in as and Going look our to XX.X the we be to forward, loss marketing opportunity. us compared on investment primary large quarter million the market area Operating R&D million chose spending preserve in the of XX% same the operating negative XXXX meaningfully year, investing cash. pandemic held year. last X.X XX% period to to on last in as back We of and loss margin compared we during negative

continue goals. will to hire in our our to as go-to-market support appropriate We operations aggressively

cash XX.X% expect The see will term, last in improvement fluctuations In structuring expect Looking year. we margin from flow. cash linear. accordingly. and loss our Longer compared last market cash and sales R&D and $X.XX forward in operating in a are X.X X.X to basis negative and we Free outstanding. will we will operating shares in margins QX down result was QX leverages QX in term using cash the in XX.X Free share million term, from not flow scale per the fluctuate positive in negative million a QX increasing weighted quarterly flow. on flow free see that X.X% negative Net in average was be we expect year. leverage million near was to investments near to improvements ongoing as

balance Turning cash, million sheet, and we in short-term the with equivalents cash quarter ended the XXX.X deposits. to

guidance. to now Turning

structure linearly, the our the smallest of Meanwhile, seasonality fourth greatest model the seasonality about invest as fourth the grows and early classic of the approach our year sales to enterprise revenue headcount we business, productive calendar quarter want those being more reflects of revenue with expectation remind a annual the I we proportion annual our in quarter revenue. the as and expense inherent the First, calendar with will proportion you in that investments typically be our seeing quarter. first

move we expect see the first to the be we and million enterprises, more in that million up to With operating the XX.X of growth range expect in quarter on non-GAAP of larger As we the revenue range to seasonality and XXXX XX.X for million of of market to pronounced. XX% XX% focus representing said, XX.X year-over-year loss XX.X million.

For the operating XXXX in full of as are in of With year take had I XXXX. questions. to accelerate growth to XX% continued improvement investments. growth a XXXX. Rafi XX% our in range year half see XXXX, And positioned returns will our million we of summarize, reflecting To your million leverage we growth and range XX operating of from to in expect in of revenue second great year-over-year, we Dan, we well that, and in the million XXX non-GAAP the the gradual million, representing XXX loss to XX

We'll Thank you. & question [Operator Company. our first Instructions] Needham Berg with take from Scott

revenue revenue seeing other Hi, drive the out opportunity you company contract, that dollars million about, wide areas actually sales obviously, and he your big very congrats similar try million on to million That newer a but that a large I is Dan, to a to platform use I start one recall, were up. metrics the have able they in are your customers hardware versus maybe deploy just generate called support that software case, $X to actually seems applications? specifically I to enterprise follow of around here. from strong talked you with $X like a savings a cost wanted don't me platform.

Thanks, Scott.

we companies do, helping from technology. value I that's realize We're exactly their what think right?

them in problem they adoption. So when they start that using more. that adoption. their helps new actually saw They're only adaption sales selling reps CRM, more. using XX% effectively They that was it. that But when we company had The which almost increased are to XX%, example, sell WalkMe, saw this

those that are order that is their the idea So buying bottom they're technology adopted, improve not issues. line. in companies technology to seeing being is But

So I exactly doing. say that's WalkMe what is would

able gains therefore Now to we're contract. show customers, our revenue to massive larger drive

here. So the example that's

follow $XX here And revenue quite bit then especially previously? about guidance think little modeling from Got it your extra, year, How what should investments? guidance, call a help us $XX through big in sales there like? for Is that product the very pretty that marketing? some the opportunity in mainly year operating to about solid, going of coming there it for we'll consensus be Thank of those quarter, million million to not talk we but helpful. strong looks a a Because bookings to of after is number. Or Andrew up, loss operating new double is the an wanted and walk kind kind what the was losses, dynamic you.

question. the Thanks, Thanks for Scott. Sure.

and in are investments put of good priorities we're think the because now the we and investments for the our QX returns reflection company. the results the seeing strategic it's really I point, really of reflection a the the

the but to come short-term well. light, really and term return lot and your that the demand it's the of investments, confidence we're the required about us notion confidence not we're XXXX, so what's that seeing trends of a partners, demand these expansion of for giving And on just for transformation growth, achieving implications, we for customers, the seeing investing long from margin for a secular we're the getting be not our trends we're lot and from whole digital should worried trends, as

up. we showing work our and get are of that partners strategic a returns, a with on to improvements specific partnership, these a to agreement with you pipeline giving focused to have that you seeing that indicators joint and performance So ARR, that of start that is investments the whether these results, our the them on lot with in on on or and one It's we partners, target and leading wanted we account selling, continue area us very approach early the every methodical, track you track that we invest. we're should with confidence seeing our we

what think in looks loss the I what the in percentage profile that you'll half, lot string. we've but a versus that, said a similar having our operating investments you given and way reflective gross our of efficiency like see of our and of a QX, is second you first looks It is made half more that's from in margin and over that's guidance lines, that net Now, lot by given see to QX us And go-to-market the see investments we've efforts. in the made you sales leverage. term XXXX, getting and more the we've but

try category invest you a technology growth long-term. that drives when leading you create durable to and So,

have short-term to investment and making in myopic to can't you've off. they're investments, long-term got You pay starting thoughts, and those we're think

that's So we've think the that about excited I'd motivates continue of, to returns the we're terms investments. We're really really about and characterize progress. key us way the in some strategic this, getting, made

quarter. Very bookings Congrats Thank you. on helpful. the strong

Thank with you. And Michael from question Turits now, we KeyBanc. will take next our

Hi, you for here? Michael few facing Michael been and see over WalkMe this internal change Vidovic quarters versus last applications share any the do is deploying Turits. of trending customers the Thanks. for How external has

take that can Dan. I

really material change breakdowns. So no in percentage

standpoint. tell that about some see, and few large WalkMe of are others larger that use typically you internal customers you cases that one, the what deals the was that mentioning, in think I Dan start can I really we're for a talking

fact, In customers, the a of new were quarter, we DAP for number customers. landed brand

for the we biggest the benefits, the where -- with customers substantial will we employees there is WalkMe large wasn't employees biggest break automation there big that and see But WalkMe biggest deals, really deployments. returns where and in versus the any down. business process in investment WalkMe where on the customers But say seeing are base. WalkMe change So for that, so I see

And I just quarter? I Were talked previously. you deal have of follow closings think up. Got seeing got this large an for it. impact helpful. you've that about Very one

ended biggest we our with calendar our really So process, QX is position. to the I when execute. to a any quarter had indicated go on, back investors in and period, tried pipeline we had a we good think in guidance really QX we focus this the pipeline earnings And that strong of

quite a looks is are mean, agreement, cases I actually the a now, some of for that good Now, deal indication, starting his making enter was associated to look you with expanding, as, pipelines I with was both did when the mentioned of us federal an investments would obviously indicator as early. that up with our similar respect And -- tell it And you we right Dan partnership partnership strong. our the DoD demand really we early opportunities to The are our the well at SAP result we're posture XXXX. numbers, script solution. our that. show in as in

are of evidence they're those the types that So things are it's correct, give really bits that things we're confidence those driving in really -- business. us doing the growth that our of and the that

from Michael Fargo. with We'll you. Wells our Turrin next take question Thank

Good Hey, afternoon. there. taking Thanks. Appreciate you questions. the

you investments, can times the of Is there? prepared observations increased You that's about mentioned Andrew well? multiple focus the incremental near-term that remarks. around driving there And in segment? that opportunity add federal one driving anything just the as some initial of is you were around talking areas the What's the

it, take will I So Dan.

WalkMe in problems platform accelerating same the transformation need suitable need transformation. that order large expanding digital has actually government, all issues. to we get Obviously, is obviously, does Government FedRAMP agencies. and or to So the exact for be certified, across organization digital and digital into And adoption organization we their partners. any they're

more SAP the just seven-year about thinking And in us. for the opportunities This with in beginning. getting the management, is partnership. is many through adjust huge this SAP DoD DoD Concur, a contract just was That traveler just how So alone. on

So excited this we're and we're why very it. is highlighting

up up. that The in billings and just deferred looks the revenue. more Subscription a is one of picks RPO XX% That's metric touch revenue number ARR trends out than helpful. step accelerated

terms you from there's Thank just anything here I think remind can your you. out specific as call in to billings if us best or what of leading helpful are, business indicators that's of the So well. impacts the perspective?

track something Yes. around that large when necessarily and would It's sometimes we the point and and I'd when indicator. in we together, guidance even key give cases, any say have to related a processes some is really they come deals as you billing not Michael. measure when

So from ARR Billings. we any I wouldn't I RPO calculated avenues. figures conclusions the The there. put would big out that draw really use our

from next with Barclays. take our Raimo Lenschow you. Thank We'll question

see two, are of can on is to This I Raimo. talk behind picked taking some this Srinivasaraghavan early And impacts about a drivers Vinod rate? I up quarterly Can number? first, about you XXX have Thanks my it question. you on that? for just basis. some retention talk the the partners seeing you on in

Sure.

And or who deal. to applications, WalkMe starting our that's are driving with expanding actually customers we're obviously, one is So a with with that two multi-million dollar expansion customers greater seeing up. number

And great. drive the So the you as obviously, RPO that's saw up. retention is

three deals. investing they're So actually years

is go having strategic momentum as deals that up. goal we Go it even the retention that that. And like more and believe and overall, more ahead. more So making further we're

Sorry, Andrew?

they going cases, land would metrics reflective that. just large this customers DAP was With deals, they we rapidly. customer expand add landed saw large implementation, those I and that as actually DAP do I of quite to customer. really a say, smaller with big, customers us we start some disclosed. Often last five new be In That's is what quarter off to with then No, expanses.

that's is number to that so to customer DAP for us disclose. So important point and why

And announced getting this last quarter, started. we on quarter, Deloitte, and It’s just partner and side Accenture. the SAP

But indicators, the great both in type building were getting very get We on and starting excited XXXX. deals. for are and potential to we seeing

huge. So we feel not

with. And actually are signing those and so retention that the long-term main DAP driver for the deals increasing is customers the deals

update that have apps platform Thank And there second partners extend of helpful. your coming solution new more already on Got give you website, and the WalkMe you some you marketplace place? what my can integrations on can see marketplace? it. to you. in an as beyond, already and kind and do That's How with us then, new question, just I the are enhancements to the such

Sure.

one, we're So solution. a of getting pre-built lot

there for of So built content. a SAP pre example, is lot the with Concur,

be So faster. and much much, customers up running can

In open completely. addition, we it

of fast we're partners it's shines. when smaller it's distributing system solutions that knowledge to value, time speed, ROI. even right, know partners where is showing creating sharing content bringing when how great value. and And day, the the have already content. end we that At that exactly can This we're So build our our we in customers that see can

will from those a it actually of [GI] opened in WalkMe. [ph], so and all we added now can we On launch start them top plug that capabilities, of So products connected many getting benefits everybody to that.

KPI their they a So see to measure to with can things in actually impact end when and the content, and CIO of WalkMe. but the and not just clicks, get they lot and comes five projects, start at want business, on that the of day, data it

see we're much that's we and So telling with in we're like faster. more are to growing it. Accenture, like beyond doing Deloitte, what more much, with it as and obviously even going more content And partners

of our significant see We it. to amount use starting customers

really customers from good our top our adoption from So using components. customers beyond

that's it. great hear. think to Appreciate I

now We'll Baer Morgan take next you. question Thank Josh with our Stanley. from

add? I How you to do an update a investments. on how perhaps And up sales in that's at reps was you sales could and many productivity to trended. you're hoping expect and how now give 'XX us look your many

segments. QX, with I strong the all we exact and can attainments with will start chime very Andrew finished very, but you in numbers in

very the the happy pleased deals, large of we're at So very end reps and year. overall,

with pleased that. we're So

reps and we As we're more fully ramped want getting that into up. to see getting efficiency XXXX, drive

forward regarding Andrew looking to even reps, of numbers then and investments, we're over you. So

understand profiled sales are we reps we're are technical in go-to-market do, to say into really WalkMe very alluded the the the we and if demonstrate coverage that to the down that areas and had not example the areas where we're or the them. continue when the where efforts platform. XXXX, What to processes field is core going in customers reps Yes. able driving where making in number to they the break and can as in go-to-market the the inside demonstrate follow a we're their past, they're they the little in is important really making great competence coverage they're that investments move light value federal But of them I'd we that. we And in especially giving that then of that we're trying is, use to receive and increasing surrounding reps show the always guidance really our to number we patterns of investments that Dan the

So the the we a tell with happy the and surrounding that about the the leverage it's the that those improvements. about times And it's you the XXXX. reps would reps not resources drive we're starting are pretty, reps, And lot those of hired efficiencies and show. of always to to with to right very progress throughout returns just I

focused that the we're in in early on markets, that in pulling So indicator is the are doing that we're our strategy we're levers things, right once returns that the right resulting again, our ARR. right the

helpful. with review Okay, And bit a just was little talk then great. of That's hoping partnership I you could you. about and Microsoft. kind Thank your

Sure.

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with how that's we partner So them.

BMO. take with our We'll Bachman next Instructions] [Operator Keith from you. question Thank

Andrew, I the margin for to wanted I to on And focus you. direct this 'XX. want guidance CY to operating

basically million. If million versus XX but XX you loss you're raising look to at estimates, Street the by million, XX operating revenues the you're numbers, raising by

comprehend. models heading So it's pretty tough this. to that's that into versus street And existed

it ask QX? going In the any expenses, us exit CY could to type you give you. did investors ask process? provide loss? get to loss, say of is, of mentioned the operating so in investors So underneath landscape? you it a on Or your in CY be was could things 'XX, was what context little this, what could better? on a some there's competition point dramatic And something rate is XX% investors that. previous investors 'XX? more you back kind a below about when a cycle, situations be on more the you help investment for than expecting give you finally, words, to guides Are getting bit this questions the this see if significant one have but is I Or on questions couple run kind competitive essentially end you margins? 'XX? for did Number of happening by negative revenue to are pretty other type which your a first Thank of us is exit context understand, these when and Normally, what's negative something loaded context sense pacify then, should you is like margins sales think CY clarify front on of previous one. would Any help I two comments, And QX in number is loss, that rate can company QX a change to

a sales in going In want returns making in clear to go-to-market they're our space. Sure. for But a those period team until long it's And in and drive our of to a lot accelerating times I durable be half want that example go-to-market is investments second we're and the what we've investments not which show deployed. and people it for of show existing in up would Keith. really the that aren't the similar making, that making understand term that making framework. we're thanks in federal the is to And don't our we're growth. been our XXXX. multi-year in same up one the of we're always when platform And great aspects, for be into only it. investments about investments we in certainly I making be to just in XXXX. see growth question. careful doing platform investments, we're really The And

about that's leverage. growth not But without way the think So we that's it.

improve quarter it of got last meaning what call position, to upon as we're that go mentioned, expecting that by loss we to reached we've expecting nearly operating half we're of for we XXXX, So as each QX. time the quarter that I through the QX,

will increasingly operating margin to down that continue long-term So into of drive XX%, to towards return expect percentage that XX%. go XXXX, we

And continue of we or in mark. accelerate $X And closer to long-term highlight. And drive the I the closer making and we investments and Day, we'll process, will processes towards we're that's without really don't how are billion But to Analyst as we're beyond understand multi-year main be going as into making So that showcasing we thinking understand in point, when and XXXX. going investments our move some more framework, thought timeframe, to get that and that I increasingly do that the long-term. of to XXXX, for to the thought those business, our throughout XXXX. out we're you towards break it what growth trying

in a the processes, has continue. we're because having are we're investments discussions go of little drive the quite front, type competitive negative now. I the starting business ask the bit looks about Dan how getting cash down it's at quote to drive CFO be can the your a and On those but basic their they're where Because the great platform shown at the when response gives making just And us efficient? it and core procure And that our we're pay, or we to that that can processes, wouldn't lean to using for the we've should response some customers How to capabilities. results. tell that we're that's competition, reorganizing these very of we And return? It's they're better rearchitecting we we're more opposite. question, engagements really you WalkMe our that to a every breaks real some had confidence getting point and really of the platform excited have

is loss was you of of and sure half just it QX I wasn't see be meant I half of this where where half. landing, you would clarification context what what that that sure for or it QX QX, was year you just see half landed, And the the wasn't mentioned Okay. you the on

a as in operating level. would closer we I and will tell QX. be that that that we've The think it move guidance of out, terms looks if XX% to that closer to we're an And about that you from expecting of our percentage very similar put perspective. loss as So in you it operating percentage QX 'XX,

our we leverage. showing the we'll think grow perspective by internally And So plans about with plans, to up way the is how well. from about And as year. that's way, continue the leverage increasing it multi-year we a think throughout our

Okay, thank clarification. you that for

on add standpoint? anything Dan, you the want competitive to

what the be another need Sure. and one-time so would about right? one the FedRAMP expense, add fed investment, go go-to-market, on. to the to Andrew I but to And you thinking to said, cloud, some that gov just are investment Fed, We expense, is the if of to on obviously, the

order So new for us. revenue a to of a lot in investments stream one-time create

FedRAMP, expanding regions So of the that be partners, most we're that new right? into. would investments,

more Regarding same and are the the and competition, before the before we the landscape market less stays quarter as leading the by far. or

nothing but or us of more us competitors worries We the are result money. that creating investing seeing

thanks. okay, many Okay,

We everyone. have a really significant of very ahead We competitive mode.

you. does to today's back conference That Thank to additional turn remarks. the session. conclude management question-and-answer over I'd closing like for any or

us Thanks the growth excited the of for and obviously XXXX. everyone accelerated in QX for joining results

research a As investment long-term Andrew mentioned, of lot and we are growth. for putting

to excited So you. share forward to more quarter Analyst share and results information Day with looking the next in

conclude thank conference. for you Thank disconnect. your and now today's We you participation you. does all may That