WKME - Earnings call transcript Q2 2021

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Operator

Good day and welcome to the WalkMe Second Quarter Earnings Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Ms. [indiscernible] Investor Relations. Please go ahead, ma'am.

Unidentified Company Representative

you. thank Great, Hello, everybody. XXXX quarter conference second call. earnings WalkMe’s to Welcome

the the of Private Chief the Act Safe are to views and Securities the of Securities Reform These Harbor Sweary, subject and CEO may of with constitute the President Securities U.S. assumptions, make XXXX, and and control. statements Exchange uncertainties are statements events. today forward-looking Act meaning call me to of XX-A Dan Litigation some Section of Company's our Casey, relate Act of co-Founder provisions Andrew within co-Founder forward-looking of Exchange WalkMe that of of Adika, Officer. and future today the of risks, Certain we are XXXX, On and and which Financial expectations our information of the XXXX current statements WalkMe., beyond Rafael XX-A Section

views and future In outcomes contained our reflect to from the statements. current addition, in of guarantee respect a information forward-looking events, forward-looking these performance. differ not materially with future may statements Actual are

XXXX, this Exchange other of including management's on of our filed factors, titled press and and These number the of risk of forth release. perspectives set and performance As are future the events operating date statements a Securities with current SEC. filed the documents furnished reflect and result factors in XX, regarding a as and June those with expectations seek section the only Commission

You should forward-looking statements. not undue any put reliance on

performance and reflected press unanticipated these statements achieved as believe are by occur. release of forward-looking a or that additional required to our new XXXX XX, of date forward-looking results reflect the statements reasonable. which result obligation for events will forward-looking law, that occurrence to We undertake future in whether circumstances otherwise activity, or the or guarantee we will the we future information. any information, no of events. the are of after the applicable be Except made Although cannot levels statements or in reflected events revise as expectations dated statements, See August publicly update or and

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

For non-GAAP over With more press our measures, release see call on Dan. dated XXXX. the information tables please in XX, I'll the hand financial that, provided the August to reconciliation

Dan Adika

today on to results. our here first as company. excited Thanks, on our [Nicole], everyone for call us and discuss to joining public second our call a quarter I'm today be thanks,

strong pleased very public next when forward very growth would stage quarter, I for we're and we've as I I employees, worked with of milestone. achieved. investors our towards over significant like Before started, I for this to the a rest we're their get a partners to speak support company. We looking results years were customers, the had of team a and the our thank the say as

ARR QX. interfaces this like But WalkMe our and negative to transformation. high in said million and across with an and implications. XX% first XX% in cover call, is that background $XXX few XX%. revenue the of million has I operating to business growth about on is growing at financial to the a year-over-year in improve organization in topic and industry $XX.X basic complex some quarter very processes. Andrew would level, customizing minutes. It has compelling the common on digital reaching sales grew software Our and million was in continued $XX.X well transformation earnings driving the the customers element can metrics. provide up margin the strong opportunity ARR to revenue Much far $XX.X globe us. buying Since the non-GAAP digital be in execute momentum technology revenue enterprises year-over-year. details will with to year-over-year of XX% a loss every But over create of been level, user And subscription end ahead experiences million in acceleration totaled our total

Sometimes it's forwards a the application. problem digital mobile as website transformation a it a there simple efforts The or even sounds, three that as compounding hindering is largest the enterprises. is or

for they cloud improving to Organization's Along as proving related the experiences breaking that. true processes. You've record and that with and to each application there the aim phrase app an one the with uncountable of develop an business buy probably from of be at heard rate, of the any new employees customers. based is number

problem? are the what's actually So two. There

budgets those and business to they their IT into First, me multimillion may not even businesses. their them assets their visibility the out or about. driving value know is when dollar including that processes, across to implications, figuring have I control challenge of extract talk insight are which and CIOs, tell improvement lack They biggest very makes that it for they from digital hard how

visibility what why to Each someone a new the organization quickly. that [alter has on] CIOs the the find in have in can't Looking time is app become data, through important compounding just it's it. to nature problem. harder much down to need the log-after-log understand [indiscernible] to break they whole. This recognize of is happening even the to it's

the is for both poor employees customers. of risk Second, creating experiences user and

and difficult transformation to turned is by management the create to across when recognize user WalkMe application experience and As as business are and where need The happening, about transformation doesn't you user for endless. the use about deep each applications you application, How the the using all or of into even it's earlier, experiences. buy digital getting not the with the users critical One, system software intended? there for case isn't standards is the These users complete elements achieve no accept, a UI extremely tech digital I to noted user where the who adoption. one processes. software basic stack, the single As be application of required across compounding compelling the key in know are are stuck of is is working things. adoption two and a the is of abandoning who visibility are that To their experiences if processes, and breaking. to insight consider It enterprise does user errors nature, experience were successful out permutation using problem. all integrations organization

of Second, realize every Being the action a experience, inside is There the simple and experience WalkMe declare when and their employee the experience application Platform Enterprise become promise important to constructs the This provided I'm are measure that way to a business and With enable code elegant rest gaps the and and Without organizations make with puts ultimately employees efficient GPS ability category strategy. The the functionality why only and insights code Adoption. to integration analyze of full users with and CTOs digital of implementation. data innovation the change or immediate the WalkMe built Digital with fulfilling user in experience digital insight. expect QX, create and share KPIs. completed no drives can ensuring with find the and data the an and designing the excited to the that and the value with a We fully agile to role. directly access and In and has leader, customers but transformation. experience between and creator. investments category adoption thing continued replication, value the most and first transformation. CIOs digital Digital transformation the DAP, no acquisitions to adoption. understand way automation an turn Search using to following is technology center, we application a deliver where improve in in to is a is have at like organization's visibility any of you huge Adoption deliver for the actionable no insights. the customers improve not

need need they of our results. unified moment they personalized, AI and can employee at what solution users the Now driven search workstation get

development completed or interact capabilities another sales to BPY. contract. that experience imagine proactively analyzes remember proud be find longer to of they in presentation, share we've right to BPY, example, humans they I'm software, application order from with with latest version the the taken user the With can call also when working increase the machine platform. our need in ways form immediately learning searching recommend of haystack to For and which no WalkMe actions milestone how productivity the to improve we

the processes. done very are turn digital WalkMe logos across now deliver data Without UI digital terms which intelligence expansion adoption, business learning interactions For and field to user how best about AI customer had to of a example, call. professional is both QX from for equal lot redundant, of user is to We application and team. for and organization experience, is or on with Imagine interaction first data, optimal detail expose strong enterprise way waste full make time error their in can force extract they gap Everything powerful machine it That form fields understand new value and approach sales a insights align configuration automatically and user how any customers. stories where a close data hearing and better between form better with to using license where success changes a see to by to human better forms. completion. technology transformation. your The CIO more use and the powered WalkMe experience can to business in path all charge from a and understood users or driven radically

months in benefits XXX% of wide which in enterprise we seeing added To transformation XX I'd strategic growth and outside continue visibility our XXX customers and to four hybrid to that four reaping goal and more to As formally year-over-year. WalkMe end, have across platform, the are XX,XXX The markets. market. work digital eight part enterprise customer working with growth deployments like extended than hybrid ago its that work nearly we from a become is to our factor. of connects Asia across The demonstrate application employees arrangement. employee are quarter, once increase globally. enterprise service powered QX, wide the that E-learning XX,XXX and experiences processes the hybrid its Southeast talent program X,XXX ServiceNow strategy marketplace bank with in data bank share see new our support we support approach platform they Today, success customers in DAP customers The strategy. XX delivered program WalkMe. focused these of by employees the by how of end a Giving is workforce really of we launched these WalkMe to growth applications. better business flexible

in adopt managers intuitively employees E-learning bank's have the future can bank complete have the completion efficient rates four of improving XX.X% all Engagement Each to and XX.X% forward need, rates. of of WalkMe use visibility employees business smooth experiences. employees work the initiatives optimize and with now So With high platform, push data user on the and and bank have and to the WalkMe applications of ServiceNow platform. interacted they task new are right productivity way. processes

Let's another view. extension look at

company as of pilot Here WalkMe the normal, with X,XXX They by is in while became the support focused away derailed to new today customers to experience onboard from off a one around initiative. be on forward move result their example model of customer a hardware workforce to XXXX. planned customer IP tech success manager as for was of salesforce.com product started stories, transformation. its processes better primarily multinational that the in remote Like company goal not Their software workforce new moving is their hybrid with the and embraced strategy. a an they the a service most new COVID organization the first large globe, successful

company force of gaining renewal article visibility by talks realize better their can user at outcomes. to do. their of their connect WalkMe hybrid using center they the of The provided to they With are they QX. and business perfect completion so success got their visibility who organization create them, users, in strategies. one the for are decided value We're data working users and in look from insight handle reduce X,XXX and the sales work DAP average with to the expanded a WalkMe WalkMe outstanding rates. experiences, we time extend on with XX% the pilot to platform data first applications we They Customers their transformation initiative. and use data better to gain critical action by processes experiences. to application These than to while ultimately of business user now in we new attention even WalkMe more of and sales drive to transformation. deliver process facilitate onboard that two the improving the close global four companies to from the the two-year WalkMe started to we Since sales more examples XX,XXX everything

Now ecosystem. widen our at category and lens let's look the and

XX% software the organization deliver. and category While will digital our recognize across be stated adoption XXXX appreciate narrow solution. base, and ACM digital classify the the the in by under of the featuring helped maturity across CRM in have directly our digital WalkMe as WalkMe Gartner of hype that and into number advanced today. category two platform Gartner only a of digital that shape. recently, increasingly somewhere XX% couldn't can XXXX, landscape major analyst believe to solution adoption Recognizing we value adoption use an Where have been software. emerging the of solution digital we customer of seen stage ROI In digital phase. between feature Most that which X% that solution transformation likes adoption impact is put positive as and They Gartner alongside WalkMe define what Forrester in cycles. has in have the of enabler industry data Gartner platform, category adoption

addition, research Forrester has enterprises. on WalkMe the done for In extensive impact economic of

the over cost a found Forrester of has three of area. over ROI a in the customer company saving have world less important, XXX% an savings facing that applications translates over companies months important for These them. period strides in based to XX the services. company facing to employee the three-year walking and the are Strong report. payback than million drove and period WalkMe composite ecosystems studies made most valuable this in on across in

than key less network, its joined Our in opportunity. to provides an Experienced ecosystem, our are in built integration [indiscernible]. awareness. platform also championing X,XXX into is future. self in on the the to maximize layer of programs, partners of enable industry and our collaborators profile, WalkMe’s of WalkMe professionals. XX solution. and our our XX,XXX digital And including another X,XXX strategic there we is become WalkMe Over grow skill and ecosystem power research community customers, empowers growing adoption engaged adoption ecosystem beyond set users professionals platform. is industry and and launch to which from have increase of the ecosystem more users scale value marketplace The elements, and over our of WalkMe drive open mindshare digital our market digital rapidly. sets. about around increases WalkMe access extending Since skills for their find around which customers actively the value beyond skill are certification with develop transformation. these the more Through realize service talent to This individuals a in core which to best it and the requisition features WalkMe resources ecosystem is by and institute skilled customers, bringing of to their digital practices More value platform the to courses for adoption working job This to a QX, professional together LinkedIn than DAP professional study two institute, up companies technology

system forward further As launch WalkMe. to of our the excited leverage marketing nature The of and new we're we of for intuitive about amplify In awareness of our the power to products power look enhance to has of in our the future leadership in platform. we expansion particular, the to brand our sales and organization store of recognition our ahead, AI what look in drive platform. leader a increasing network the investment echo adoption effect and as digital that

leader early great scale our through strongly our will call I journey. you a quarters with to discussing walk to a turn have become to-date, results. that, in the We we to us over and progress, category believe achieve of progress very in we're look made that With the stage we our still forward financial ahead. While Andrew

Andrew Casey

joining thanks and to Dan, us. everyone for Thanks,

quarter, of SaaS get and results into our our to the look the represents provide revenue. that Before offering business. a platform in our measure want I adoption for digital through model to We I deliver the subscription overview which cloud, the subscription quick key a we business our metrics

revenue services training. and includes Our services professional

focus growth. and and current including recognized, amounts of revenue terms both believe as not as a better revenue remaining the relative yet represents invoiced ARR, of momentum non-cancelable all obligations, or as deferred that key view to in recognized In revenue provides on contracted business revenue we contract will annual performance or recurring which metrics, future RPO RPO, revenue be periods. our well we

a The representing In $XX.X the or be is The performance subscription expected revenue revenue grew to from with RPO to was months the of execution. as operational of largest organizations. ARR XX% adoption world's second value representing you our $XXX.X grew strong which year-over-year was recognized strong of of the second growth solutions, of at the importance quarter million, contracted year-over-year, quarter over proposition platform, we million. focus RPO, XX% seeing the acceleration metrics that XX% an reflective growth QX. revenue increase momentum. quarter great of subscription results, or XX% obligation strong $XXX sales are the $XX.X And digital current to are Remaining million. to Dan million, is of and very ended $XXX within end on growing quarter, the had QX next at reflective XX year-over-year million line and year-over-year. strength second XX% Moving year-over-year. discussed, customer of application the strong total top horizontal

mentioned, Dan more enterprises momentum continued have we organizations strong As measure with we seen XXX larger with as which employees. than

Looking at customers $XXX.X QX than this ‘XX total grew million in representing ARR of with from more employees, year-over-year XXX and our in XX% ARR QX in XXXX. XX% of up from XX% to XX% QX

customer In we based last cause total addition, enterprise strong QX up adoption and motion of new year. Taking the smaller platform these across additions digital our XX% enterprise net year-over-year a base. with a from our platform and land retention disruption look stickier of ARR who from dollar a year. of grew growing our businesses retention, dollar the or into in COVID look normally the last the quarter and translates growth We second our customers look strategic We rate. customers XX% with DAP in customers, DAP expand the of that are ARR retention wide The added sign at net customers year-over-year. at nature through XXX% platform net based natural represents XXX% is represented which at of DAP customers XX our a

Gross slightly of of the in quarter we Our end XXX% with industries the quarter and look This more like was I be forward. million COVID $XX.X Before margin, quarterly QX trailing the gross XXX a retention, discussing on profitability. it basis to view up up will continued part we note XXX% up results specific four includes year-over-year, serve. enterprise of going down year-over-year. non-GAAP than employees, margin was dollar gross based QX the the XXX% I impact due from customers at If XX% dollar was was to the profit of to net on that first from expenses prior quarter, XXX as basis. was based customers which net retention, would in and XX.X% points in turning

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

in all in increasing versus invest quarters and ahead. making the with million the last to Federal XX% and in the $X.X coverage XX% This increase address quarter investments quarter in year, in Sales $XX.X global last broader focused We've in marketing year. Turning as to a now investing in million R&D year. year. invest geographies. remain G&A was we total represents put XX% levels onset result normalized marketing on our and second in go-to-market of product $XX.X also activity the partner Dan in more XX% R&D versus of year. for QX XX% acceleration we in the market quarter million to $XX.X for our compared continue to large market second to expenses This compared aggressively revenue in of described. and followed second the our QX quarters. opportunity revenue in pandemic million sales the in $X.X to million We're in for year. total XX% across direct expense to expenses. a same compared million represents to operating We is share to as the of that year-over-year to an the and at in expenses, growth year. build-out $X.X period hiring the was QX teams our capture last revenue by revenue last opportunities freeze The in of we of in platform QX subsequent place investing business G&A been last see return last U.S. compared the hiring was plan ecosystem expenses last expansion

business. our year. loss market margin XX% and to XX our And look held we the us opportunity. to R&D, compared We business investing of Operating loss period large going compared cash. marketing million million last the scale pandemic spending areas last negative continue last as $X.X as $XX.X down will infrastructure to chose points quarter year. in investing in was preserve a sales year for meaningful we forward, We primary on same the in capitalize of to the was are of be to our investment drive back the Operating during to long-term

sales we year. [indiscernible] discussed, and see As million ongoing a margin XX.X% our basis plans opportunity. the our to we've the $X.XX leverage share million and will down flow, from accelerate a in in In Free re on investments marketing term are QX investment flow cash look will negative scale fluctuations our expect in in outstanding. cash weighted though Longer term, Longer was shares that improvement last expect flow linear. on quarterly see And will not and capitalize structuring negative increasing result cash in R&D QX margins $X.X operating compared QX as accordingly. flow. as we near-term. we positive per average leverage to cash near-term, year. Net loss is negative negative fluctuate million we improvements in $XX free be was using in X.X% we to $X.X to expect operating last in to Free

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

to XX% of to the million. million third for the range XX% loss $XX $XX.X the $XX.X year-over-year. now guidance expect range of XXXX, Non-GAAP we $XX operating million, of growth revenue in quarter of the million in Turning representing to

in $XXX.X Dan, expect XX% in we million million. take With XX% the XXXX, that year $XX your and full range of of million I loss to revenue representing the growth $XX million the to will operating questions. For Rafael year-over-year. Non-GAAP to range $XXX.X of

Operator

We'll an opportunity go everyone Instructions] Josh will signal Baer pause Thank you. of first to moment a we [Operator And Stanley. Morgan allow to questions. for just to

Josh Baer

would I for you moat? could your competitive moat? landscape differentiation? and your amounts how interaction the And much talk question. technology you little bit And and How your large about first you thank you of have quarter. do part your congrats How on important a a a -- from scale standpoint? your data you lead is characterize of was as hoping of the think competitive analyzing that Great,

Dan Adika

for is Dan. Josh, question, this Thanks the

technology, before, moat the to built. the adoption and on action that actually briefly and regarding One things. the the order ability data. really system, deep you data in provide So the is digital that is to as And understand is I important into platform, need what's both how described, to

have provide the in we So are the intelligence. UI, what a know, UI to one which our our we can what what that us call we behavior precision, elements and that we to understand actually And and is customers. give deep that such in UI human for actually only ability create value

guidance actually case, the is connecting and analytics customers. to and data those our second The and engagement actionable insights layer, actionable to provide

or and seeing So today. we're not I product DAP solution real would say But or space, training so we're that like seeing solution like today, space, a the not analytic the seeing in anything around that, that. WalkMe There we're is on. point

Josh Baer

like education opportunity, the the sale given out about helpful. component of I building the you the getting thinking develops? when the the And another if component is could sale and wondering wondering, educational or nascency as Thank just you. cycle, think the That's ecosystem IPO you're in, since the sneak if market of of and easier, couple last even the over market years, any that,

Dan Adika

question a Yeah, well. that was as great

there, sell progress to especially and true Still, other platform going we're huge we're huge Gartner What platform entire as with the our to applications, customers go why in with we where to tailwinds more data adoption we become a understand category. would analysts. and that more getting seeing the DAP they we're in the I And more a with is and customers, number from when that when customers, the And absolutely, Forrester this need two and such by So first Digital adoption coverage a one And have status and digital well. the or is into actually seeing approach. is this in the we're start adopt seeing biggest more usually expansion get-go. opportunity past, say and quo. we're is of that have challenge especially going a and our walking strong growth here, CIOs platform. COVID then slowly a

say a there Gartner we're market digital and very organizations one of but I still the XX% of would a going quotes platform. will there. I use that So the is few that by believed evolving, ago strong XXXX that And not we're seeing that XXX% adoption it's minutes gave indication

be So this on. pushing successful we're and digital way transformation basically and digital platform. run is what no on Because to strategy successful a is building there without adoption

Josh Baer

you. thank Great,

Operator

of to Tyler we'll Radke Citi. next And go

Unidentified Analyst

for taking [indiscernible] this What's driving billings growth and in the want them should share you see when converge? And rates. question. Thank expect we about error that to divergence? on I Tyler. diversions Hi, for the to

Andrew Casey

So is Casey. this – [Ken] hi Andrew

treating that our So focus you employees we metric would platform investors strategic we we remaining XXX on the and really result relationships primary is we're about that motions supplier was with what growth largest of And -- our billings ones on, talked sales those a of customers that rate that that those tell enable objectives. want customers a focus lot at that the really isn't what performance a our enterprise to longer strategic where obligations. seeing the that's greater one their the such identify space that seeing they're who us there as you're us, energies, I than really focusing is things as on with are

gear we growing that a things, expected rapidly. our -- RPO more ARR, analysts and that and forward, But and be is on is those to investors this and often see be focus making more billings revenue metric, growth. we're certainly into the going best than a because us going future of billings And see indicator would our rather for I investments. growth. so towards future back which it, that's is by with you to other RPO can difficult of lot why influenced you So the periodicity translate number and associated understanding metrics stability RPO

Unidentified Analyst

Great, thank you.

Operator

to next Fargo go will Michael of we Securities. Turrin And Wells

Michael Turrin

some last maybe ARR modest if on smaller results. where through assuming the bit Hey, what's walk case of a looking to and from subside team congrats thanks. and quarter, expect the customers, total between look the customer can dynamics strong, large the the maybe you -- the here afternoon, quarterly of but difference there's versus a you'd more first the customer metrics some that's the large combined Good point we of The are here. headwinds to driving especially the the ARR improvements sequentially of set

Andrew Casey

Thanks, Michael. for the Thanks question.

cycle that given that we quarter, talked being are typically, have you that expansions COVID, I what QX coming up been And you, pulling includes a added remember ramping as ads, that of us, think clients because I tell our group those COVID. to months, seeing and end XXX small of what we that's up year, customers customer we within typical sales who sales I'd QX we're as that last any And of business and accelerating hardest challenging say we're of the somewhere X have sales equally clients. and sales up at the from slowly for XXX far have was you is leavers less area marketing, have us medium ‘XX that have XX, they're reps, than it really are are employee the sized and were employees. out XX year. new that between that we're the motions as such through investments that were we happening we last and Recall and of productive. a been impacted most but need than surely there before seeing showing greater those area. the about, to the ramp But see And are also we in and customers, reps I XX of group in overall in for

in employee And accounts last point a is our of increase increase which the increasing ARR, XX% steadily year, that it's that dynamic one represented. it's been go the were are percentage from from making we're right see were pretty we an total customer to But coverage increasing sales over a I'll transition in coverage it's business, period few on going we our our that than we upfront last that back certainly XXX in that changes to dramatic and years. and So our for to marketing ARR seeing. you and the investing now drive ARR greater class, model the

Michael Turrin

a stats, think details. well. It's There's I the snapshot useful the split and just then as a trailing you extremely helpful on quarterly retention here also have month XX

still basis. looks trough QX quarterly the trailing modestly it Looking the is while represents at that a like XX maybe declining. on

dynamic can that's So towards the useful. Thank discuss just rate maybe you if you'd are target also to levels you. retention there. And there maybe or expect trend level

Andrew Casey

and the very pointing sized there back medium expanding value had us, they're real and metric there customers And, way, that generating we there multiple Because base who And in more -- some cases, happening, so understanding in and investors that base dollar enterprise employees XXX, QX great quarters, it's prior start and struggling quarterly to retention. the was fact with the that so that give as cut of applications, who XXX were fact greater we've QX, from spending of that that low pains our we put are to across Yeah, that we why reflecting we're dynamic lot on than of by that us first. were really up gaining just wide. are more sure to with reflects understood those in that's down which that's the for not of And why in was periods customer now was to QX. the quarters you really those so the and great customers a the out. COVID and the employees some during drop their XXX took that it's had category. that we reflective is for companies plenty to seeing in a And churn small, that street four that clients, a important expand to trailing much That's or was departments, of past. net jumped is customers business, make tick point thanks

database So customer retention that X.X% that our above we for certainly can well think over net drive that we time, class.

Now it's success efforts going continued that's and and to and take our some with time, customers. and it's focus our going concerted But to strategy. DAP coverage our take

And And the we're out four dynamic base to understand seeing thanks trailing quarterly quarterly so acceleration dynamic it important reflects pointing dollar is for quarter figures. the investors the for net dynamic. retention in really for important very the the was that versus --

Michael Turrin

you. Thank

Operator

hear Keith next Bank from And Bachman, we of will Montreal. of

Keith. Bachman

Is you first two, customers congratulations cadences such and are relationships? agreement? seats, they bit does echo say, Yes, quarter. about I how on large with it usage? your the you to your a sign what after the How what expand enterprise have the drivers? it large compare those the balance And you upsell is thank on your Could is And agreements. a that? first do public it customer little your talk had company of

Unidentified Company Representative

I sure understand not I'm that.

Dan Adika

it was pops Dan. up is this Thanks there. that Probably really

it's question. great So a

is it we're at looking when So expansion, application. two more goes ways. One

And applications, And agreement digital WalkMe up. are see it's will So them It HCM, have internal in we more soon external more as they adding add on more growing and help companies and more we usually we per will will can to enterprise and a to and with price doing the and more they more and ERP platforms, seat. start go implementing those per they CRM processes. in And they per that on. so right? transformation, business to and way What price, that license when will be we start and an seat well. enough, so basically just WalkMe and WalkMe an and

where into there move extending. we're large agreement. with certain license that's customers. seeing And sense an point makes a So just enterprise it This our what is is how to they're

near As the first we they hoping that works go earlier, and it data DAP. able one-up, it we're with really I are see the two, is, agreements, future, on approach. land currently, call we're are DAP that enterprise and starting three, way license because we full in XXX mentioned the pushing hard to to then But

usually that's hope dynamics how your So answered it I the work. question.

Keith. Bachman

you. say Yeah, in quarter my an [indiscernible] up salesforce terms give would quarter update great, are Many training, the the in are XX if terms the Where then you on in might And capacity, be, reps follow can us thank hiring progress? of of months recent about the us sales plans, you just next or give sense a you could so? you how from where thanks. unfold

Andrew Casey

thanks, customer It's I executing So and out And by support the we're not BERs. or Andrew reps. we ourselves sales just of plans, it's engineers, the inside also success you, this kind on infrastructure around sales set hiring. way, it's our our in for the is sales tell reps it's -- Casey. reps,

very, -- -- about it's So team productive. the the to infrastructure it's it's for a make creating sales us, very

our we've been plans well on so And year. far, the pretty executing for

is into areas year. the I'd to we clients. what company that software Now, a lot And they continuing you did team, any interest happens in typically, that's able the early of us sales possible as And an say higher hiring your ramp reps be enterprises -- QX our affect see enterprise on QX. from [Jennifer's] continued or in to in go we like those period, core because cycle for very to want as sales do in quickly because well we're

release, Simon big one see enormous And team. into for probably a there, they're be XXXX, think hired focus cycles going Federal and because we've [indiscernible] growth our and U.S. structure hired can we're of it's government to lucrative coverage in we on those us, them. a leaders especially software very, of geographies and they to also -- build driving and seen are as was market, where and starting In over areas those us. take the advantage I actually starting investments invest in very -- our enterprise that long-term, EMEA out the you've a each leaders over we also for fact, which in the APJ. take we of to are opportunity leader place is Simon

plans will waited invest them opportunities, and for out we we So long into way see continue to saying as them. aggressively that our And we're on executing set ourselves. of answer we

take our in long-term guidance of fact, sales that's see from is our to financials away in you growth we're that opportunities. our opportunity and In advantage in not invest what marketing shying organization,

Keith. Bachman

Okay.

Dan Adika

the of We're on force. organic to top Dan. This our -- is would just Yeah, that That growth sales we increasing that. add have. I

We increasing are of and partners the efforts our the size, globalist DSIs, with course.

alliances doubled teams the than more we six last and So months. in our partnerships

future. believe driver growth be revenue we us the another in that So going strong to for

Operator

will question take with our the from Raimo we Lenschow next so And Barclays.

Raimo Lenschow

Hi, my one. that question. just touch to the thanks quarter on for taking last on congrats And

direct Looking versus sales at source mostly your from partners sales like partners, it's much see contributing it looks But can over how you direct time? today.

Rafael Sweary

Hi, this Rafael. is

not our and is the be contribution marginal, the to want is the of So here, important very right successful that channel sure right just the required more speed. what now working sure over And are is make is still are hard. investment direction We partners we putting that just we make to with our they're contracts, platform. partners, the inking partners to we're want the

very actually, good in there the hopper lot of side. things is a So

So now, I still of right suggest marginal it's for as But contribution. stay tuned. a everybody to

Raimo Lenschow

the customers platform, friction these incentivizing by right buying and Okay, to customers try know But I some from thanks. remove are to are you process. that platform of try want customers your And, of affected now smaller any COVID. that you very you some the still way your know, to a had try mentioned these come much being on, lot some smaller still of in of may

Dan Adika

Dan. is inside. this we serve -- This any Sure, is company

to we have, small enterprise to So beneficial say, product to commercial name all. say WalkMe brackets very product. And that actually to have pricing given yes, try wants four, I companies to fits I them count, would our from would the SMB our

were absolutely always that's So on. something focusing that we

Andrew Casey

that price maybe -- pricing structure, on Yeah, customers say to earlier what start cost, starts with our lower that. case, a a think about app. focusing be specific on referring how was because they'll really relatively us, it's add to customer per specific that use use case. smaller Oftentimes, and and Dan you user to when When typically I a with just add per they're

a a for users of subset may so And be application. even single it

use think pricing the is or So WalkMe through really in and about coverage, how process escalates. application the increases if you getting the customers are how in users increases value of platform,

the there's barrier entry pricing to smaller customers. for structure and it's -- So no

more structuring time good In to job done a think over pretty value we've That's of to accrues fact, value how it usage. through I as WalkMe customers it. captures such that

Raimo Lenschow

helpful. Hey, That's great.

Operator

next And question Securities. we'll Walravens JMP go Pat our of to from

Pat Walravens

great, Hello, add you. me my let congratulations. And thank

I adoption, the tell how hear I just competitors. WalkMe googled and sort that those you are you customers digital Dan, Pendo? fix to love would what for quick differentiate So ones if the of just that version come from

Dan Adika

Sure, question. great a

was real order be a seeing to transformation effort. Pendo. them I the And currently, space we're entire, live one our is do don't digital only on companies we trying to about we're and in And AI need to in you customers that mid-sized from them not the of learning. there regards mentioned talking focused So to say, the have ability companies adoption that And seeing first if what the competitor. ecosystem in all. we're that, They're analytics. digital At we're product mainly the a And grows. transformation And on large at the both analytic small data day, to platform. the solve to for one near end as They machine get moving whatfix, of the I are our it. I to to analytics, is to parts come seeing execute actually lot that currently as would deep would so, our say

ahead. three, we're think So that's every welcome good we But competition. to we us and overall, years four

Rafael Sweary

add. if I Pat may

You in their we for customers, we business a eyes, customers. customers will number DAP regarding that companies at our they change that clearly also the technology. And what really do give way are define DAP look --

they're they or to looking that not might four solve, system, look systems. trying problem five the be per which business, that at they're So different

do look town that business, So we're companies digital the at it. DAP solution the adoption a in solution, only way true changes when can do probably game you their that

Pat Walravens

giving should explorations is much Awesome. And then And be metric? I XX, XX awesome, a a you think. mean, you so Would be that of ask the quick Andrew, if helpful? XX, that I How duration? CRPO RPO, could guys right? I are one.

Andrew Casey

up there's metric break well, those on actually term focusing the for current We is, about you? clients, I year-over-year, having to of portion those as the multiple and XX% a longer CIOs. not proving for relationships use driving we us so trying RPO worrying rather discussions with us value much broader out sets do but discussions disclose think on that that broader it and case, roadmap value Look, that's growing a strategic and with big single across prove

help customers, our benefits. it term in So to us as it enterprises, those contracts. our know, It'll was drive with large drive committed de-risk focus I so longer of sales, you better then has definitely focus up, enterprise, think it'll show better revenue expansions U.K. help productivity, on all that go because with drive a for multipurpose

Pat Walravens

quarter? right, my for fingertips. what it was forgive then what in and having was not last me [C-ARPU] All But

Andrew Casey

last right. was XX quarter like [C-ARPU]

Sorry, March long-term. it that $XXX of in total. was between And down million. $XXX and down current XX, $XXX last -- the million in quarter was that and million breaks And million of million between $XXX was it's million for and broke $XX short-term $XXX And quarter, million. $XXX this

Pat Walravens

very great. Thanks Okay, much.

Andrew Casey

welcome. You're

Operator

Michael next And we'll go of to Turits. KeyBanc.

Michael Turits

use case. for Andrew, a that Are What help is additional platform And cases success? is a Hey, not quarter. actively approach? But just commitment. drive that you Dan, doing important I guys, do pure bundling? and numbers single four agree congrats what based that you project on first are to use Dan are that market the you up showing long-term the help a could make sure that people doing, -- expand to that customer just isn't on totally

Dan Adika

Great question. Mike. Thanks,

is say foremost, by I product. leading first So would innovation our and and

lot major would with actually enterprises. capabilities. more I difficulties that answers adding more and that So we release, quarter, Every say seeing of more, a we're a we're have and

every mind and not with entire every that, is to product So organization the use helping and just case. release one with them legal with actually touch the

skill. WalkMe understand Another and related in WalkMe helping world. we their X,XXX professional people job is which digital what is is Today, LinkedIn that we're digital did manager in elevator we has on. biggest and our adoption transformation, people is over the WalkMe education call we markets what or so what events have just the elevator, And thing beyond. event, the And in

creating around it. So ecosystem huge a we're

the just ecosystem it. the it's technology, So it's that not with comes

thing we launched, a made Another that pre is solution.

they have So will faster value.

So the rollout, immediately they knowledge they pre solution. in let's have can of big a HCM get other customers say made

value typically, on usually, our like, we we the they customers don't financial and the our CRM, on actually don't that When our what is on. value So those why they see have why happened faster. faster it so they're WalkMe on we with system, have ACM, pull can it have

they So this helping is are as joining want how value, we're them we're making WalkMe get more fastly well. very when to other customers departments actually and heroes use our

thing center around helping a of we're WalkMe. that shape we're big them Another excellence doing,

they their strategically they're digital actually WalkMe. with actually the in think So aligning can when WalkMe goals transformation about of capabilities

the many how talking us. are ask we're CIOs So I'm in innovation, doing are table, services education, of that world what companies months, customer the with in them. so the the And six it same tell our success around the experiences. And should How of we coming workforce. hybrid that how all that they are to to the I ecosystem we're team past have benchmark? again, together, the the doing, approach other today, exact the But course, you will helping they're and bringing know

So they're for our coming not just to technology. us

leverage their Now, for the get their to to our to technology us And how benchmarks them coming goals. knowhow. we're they're showing and then

in of is all together. what it we're order together, So doing

Michael Turits

to large great indicator, but we're another slash the retention net great churn? them, what the what it's [indiscernible] That’s that is see Dan sequentially? pickups inverse with retention the obviously, about what Andrew, And thanks. about about customer that then sequentially, How just that talking gross

Andrew Casey

you starting see in sequentially base. like of going amount low of accounts, similar employee good below see is X more you, which is we when had, in on to And our the so, reflecting will say good, overall, employee increase most a But increase quarter, us And in had amount and is see the XX%. overall I overall a it's and total XXX to the So breakdown we and total. in our term, I I we're would to what had because renewal think point said, less bounce stabilization the important that's quarter-over-quarter of than that that similar than customer the expected that decreasing fact I'd to pattern a that increasing continue quarterly focus you're say, get you that including we to total that as total I percentage thing for a greater growth QX customers the focusing you from attention. where over continue we're drive that XXX. a base. ARR -- the

Michael Turits

to X points worth rate net clarify, your up just your customers, XXX? net went not just with retention So total not just over also total sequentially. customers

Andrew Casey

Yes.

Michael Turits

And but Thanks doing your question my gross for retention was, sequentially? stay My improved churn words, and or which is churn guess great. my question stable did other , in that. is gross

Andrew Casey

we're which giving retention, net going focus we're so both quarterly. the Yeah, on dollar trailing that's a on. to to focus the the you not We're metric, four base and going

improved, the you -- by it the it you, gave right, because at show that for is but the -- nature, -- that improves I point some we we're anecdotes deduce applications, rate multiple look can we're continue retention of So that, value that's across to they on Dan shows its value as other and showcasing but well. multiple, focus and clients, our as driving gross apartments very

Michael Turits

Great. [indiscernible] it. model on

direction. to right know Thanks. want is Just going the

Andrew Casey

yes. Yes,

Operator

Berg question Company. next Scott our Needham from to go and we'll And of

Scott Berg

Rafael main my on essence if the differ WalkMe you're will of of mix can or sales you other? couple to to for incremental go understand a you and seeing would what we're wanted That customers with or Andrew, taking kind than in product sales you. give between Thank just if two you've in Dan one areas congrats the Hi, employees. for you trying see sales and area I quarter. good question. seen update like quarters, last maybe the [indiscernible] something WalkMe suggest I guess for thanks look time and one I And

Andrew Casey

Scott. this WalkMe then had bit, areas pretty So thanks say of typically -- that Scott on the more, where it some WalkMe area. we've would for And those that fluctuates see for around one employees isXX% little we demand, for – I XX%. at quarters, a question, it's is customers is customer and a but or it's consistent pattern

hard a relative usage larger around through value customer, it's both. And lot just as have you the our as of down nail times, to you to or contracting customers agreement. you when assess know, it, hard it's try remind actually parameter Now, process, a and components maybe broad DAP within to a where I'll people, many have of it's go a the

customers. understanding that that place, both in to and other, then the migrate one one it's our CIOs, how product start and driving or to digital WalkMe used really they areas those we for talk set So solution to so we where that how of not many really adoption it's think relevant. to I market is to go reflective their either just quickly It's about of more it's customers their move the our with complete an for solution is of employees not used their and

Scott Berg

taking the for thanks question. Great,

Dan Adika

difference you a explain of change between this and can doing add, If I real the may really business. how solution do point

let's WalkMe second that and you customer So trying would on app your their to on to facing team care, your calls, the you're handling time. first to business customer solve use deflect reducing external problem care say is shorten

website, So an application on point customer two the And the this and but a system, different it's the is specific customer care not strategic a really also systems looking in on at looking on apps the there. out versus website where top or that calls ways one can looking one a solution you or few or or nature and that applications at problem of the app. on that's agency using, reach not business a a put guidance and deflecting of that

of the insights top improving Now you your see Make business really how give everything to sense? WalkMe you're on KPI. will

Operator

And call for so queue. Dan at questions back the Adika other over turn this in closing time will with I comments. no the to

Dan Adika

ahead. you with us. Thank for in posted you keeping you. forward in for today. Thank quarter call I joining And you, look thank everyone, the really being progress the our on us again,

Operator

conclude your for And We thank call. that participation. this does so you

now may disconnect. You

WalkMe (WKME) 12 Aug 212021 Q2 Earnings call transcript