Value proposition

Needham ‘more bullish’ on WalkMe’s value proposition after Q1 performance – Read why

  • Needham analyst Scott Berg maintained WalkMe Ltd WKME with a buy and lowered the price target from $40 to $20 (up 132.3%) following the Q1 FY22 results.
  • Berg attended WalkMe’s first Analyst Day, becoming more optimistic about its value proposition and its ability to become a more strategic partner with clients.
  • Read also : Here’s How KeyBanc Rates WalkMe After Q1 Results
  • Key takeaways include 1) WKME’s growing ability to transition from a one-time-use application to a more widely used platform. 2) Ramping GTM’s investments can deliver the 30% annual growth profile that management has conveyed since its IPO. 3) Expanding within its current customer base alone could achieve its growth goals with a significant upsell opportunity. 4) A financial profile that emphasizes a near-term 30% revenue growth profile, but exhibits typical large-scale SaaS profitability with operating margins of 20% or more.
  • He said the current valuation at less than 2x its FY23 revenue estimate was attractive if the company could hit its 30% growth target.
  • Price action: WKME shares traded up 12.30% to $8.98 when last checked on Wednesday.