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WalkMe (WKME) Q4 Earnings: What To Expect

StockStory - Tue Feb 20, 1:00AM CST

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

Last quarter WalkMe reported revenues of $67.02 million, up 5.8% year on year, missing analyst expectations by 0.6%. 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 4.2% year on year to $67.59 million, slowing down from the 21.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1%.

Looking at WalkMe's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Shopify delivered top-line growth of 23.6% year on year, beating analyst estimates by 3.4% and HubSpot reported revenues up 23.9% year on year, exceeding estimates by 4.1%. Shopify traded down 8.3% on the results, HubSpot was up 5.3%.

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

There has been positive sentiment among investors in the sales and marketing software segment, with the stocks up on average 2.9% over the last month. WalkMe is down 1.2% during the same time, and is heading into the earnings with analyst price target of $13.3, compared to share price of $10.4.

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