Needham Is 'More Optimistic' 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 (132.3% upside) post Q1 FY22 results.
Berg attended WalkMe's first Analyst Day, becoming more optimistic about its value proposition and ability to become a more strategic partner with customers.
Also Read: Here's How KeyBanc Rates WalkMe Post Q1 Results
Key takeaways include 1) WKME's expanding ability to move from a single-use application to a more broadly used platform. 2) Ramping GTM investments can deliver the 30% annual growth profile management has conveyed since its IPO. 3) Expansion within its current customer base could alone deliver its growth goals with a significant upsell opportunity. 4) A Financial profile that emphasizes a 30% revenue growth profile over the near term but exhibits typical SaaS profitability at scale with 20% or better operating margins.
He saw the current valuation at less than 2x its FY23 revenue estimate as attractive if the company could deliver its 30% growth goal.
Price Action: WKME shares traded higher by 12.30% at $8.98 on the last check Wednesday.