Walkme Ltd (WKME) 2023 Q4 法說會逐字稿

Good morning and thank you for joining the WalkMe fourth quarter and full year 2023 earnings call. I'm joined by Dan Adika, CEO and Co-Founder; Scott Little, our Chief Revenue Officer; and Hagit Ynon, our Chief Financial Officer.

早安，感謝您參加 WalkMe 第四季和 2023 年全年財報電話會議。執行長兼聯合創始人 Dan Adika 也加入了我的行列。 Scott Little，我們的首席營收長；以及我們的財務長 Hagit Ynon。

Before we begin, a few housekeeping items. First, we are continuing to incorporate a video element to help showcase our technology and some of the great things we're achieving here at WalkMe. And I encourage you to go to our IR website, ir.walkme.com, to watch live or a replay, which will be available following the conclusion of our presentation.

在我們開始之前，先介紹一些家務用品。首先，我們將繼續融入影片元素，以幫助展示我們的技術以及我們在 WalkMe 上取得的一些偉大成就。我鼓勵您造訪我們的 IR 網站 ir.walkme.com 觀看直播或重播，這些內容將在我們的演示結束後提供。

(Event Instructions) Certain statements we make today may constitute forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events. These forward-looking statements are subject to risks, uncertainties, and assumptions, some of which are beyond our control.

（活動說明）我們今天所做的某些陳述可能構成 1933 年證券法第 27A 條、1934 年證券交易法第 21E 條以及美國私人證券安全港條款含義內的前瞻性陳述和信息1995 年訴訟改革法案涉及我們當前的期望和對未來事件的看法。這些前瞻性陳述受到風險、不確定性和假設的影響，其中一些是我們無法控制的。

Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including those set forth in the section titled Risk Factors in our annual report on Form 20-F filed with the Securities and Exchange Commission on March 14, 2023, and other documents filed with or furnished to the SEC. See our press release dated February 21, 2024, for additional information.

由於多種因素的影響，實際結果可能與前瞻性陳述中包含的資訊有重大差異，包括我們向美國證券交易委員會提交的20-F 表格年度報告中標題為「風險因素」的部分中列出的因素2023 年 3 月 14 日，以及向 SEC 提交或提供的其他文件。如需了解更多信息，請參閱我們 2024 年 2 月 21 日發布的新聞稿。

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

此外，我們今天將討論的某些指標是非公認會計準則指標。本財務資訊的呈現不應被孤立地考慮，也不能被視為替代或優於根據 GAAP 準備和呈現的財務資訊。我們使用這些非公認會計準則財務指標進行財務和營運決策，並作為評估期間比較的手段。我們相信，這些措施提供了有關經營業績的有用信息，增強了對我們過去財務業績和未來前景的整體了解，並提高了管理層在財務和經營決策中使用的關鍵指標的透明度。

Further, throughout this call, we will provide a number of key performance indicators used by our management and often used by competitors in our industry. For more information on the non-GAAP financial measures and key performance indicators, including the reconciliation tables, see our press release dated February 21, 2024.

此外，在整個電話會議中，我們將提供我們管理層使用的以及行業競爭對手經常使用的許多關鍵績效指標。有關非 GAAP 財務指標和關鍵績效指標（包括調節表）的更多信息，請參閱我們 2024 年 2 月 21 日的新聞稿。

Now before Dan kicks off our regular prepared remarks, we wanted to share a brief clip from our sales kickoff event earlier this year where we debuted a new company narrative to the organization. We trust you'll come away with a solid understanding of the broader market forces we are connecting ourselves to, how we're adding more specificity into the business problems we're solving, and helping companies prepare for that wave of change AI transformation that's about to unleash. Please enjoy.

現在，在丹開始我們準備好的常規演講之前，我們想分享一段來自今年早些時候的銷售啟動活動的簡短片段，當時我們向組織首次展示了新的公司敘述。我們相信，您將深入了解我們正在連接的更廣泛的市場力量，我們如何為我們正在解決的業務問題添加更多的特異性，並幫助企業為人工智慧轉型的變革浪潮做好準備。即將釋放。請享受。

(video starts)

（影片開始）

After two decades of digital transformation, we find ourselves with a paradox. On one side, we have more and more powerful technology than ever yet most digital transformation projects fail to meet their goals. There is a gap between the rate at which we've introduced these technologies and the value that we get. What we hear time and time again from customers is that their people aren't using the tools they have access to. And when they are, they're not using them to their full potential. And that's because we've been thinking about this problem the wrong way. We thought we had a technology problem. What we actually have is a change management problem. We've underestimated the amount of change all this new technology would mean for our people. And as a result, we've introduced an unsustainable level of friction into our organizations. Friction is hiding where your technology and your people meet, in the workflows that you've built to support your key business processes, your HR workflows; like employee onboarding and performance appraisals; your sales workflows like lead management and sales reporting; access management in IT; purchase order creation in finance; and the thousands of other workflows you might be running, and they're breaking. They're breaking from the weight of all of this technology change that you're asking your people to take on. Some workloads aren't being adopted at all. Others are being adopted incompletely or improperly, and even when your people are adopting those workflows correctly, it's simply taking too much time away from high-value activities. The consequences are getting in the way of you achieving your goals. Change fatigue has set in with your existing people and it's taking way too long to ramp new employees. So you're not getting the productivity gains that you expected.

經過二十年的數位轉型，我們發現自己陷入了一個悖論。一方面，我們擁有比以往更強大的技術，但大多數數位轉型專案未能實現其目標。我們引入這些技術的速度與我們獲得的價值之間存在差距。我們一次又一次從客戶那裡聽到的是，他們的員工沒有使用他們可以使用的工具。當他們這樣做時，他們並沒有充分利用它們的潛力。那是因為我們一直以錯誤的方式思考這個問題。我們認為我們遇到了技術問題。我們實際上面臨的是變革管理問題。我們低估了所有這些新科技對我們人民意味著的改變量。結果，我們為我們的組織帶來了不可持續的摩擦。摩擦隱藏在您的技術和人員相遇的地方、您為支援關鍵業務流程、人力資源工作流程而建立的工作流程中；例如員工入職和績效評估；您的銷售工作流程，例如銷售線索管理和銷售報告； IT 中的存取管理；財務中的採購訂單創建；以及您可能正在運行的數千個其他工作流程，但它們正在崩潰。他們正在擺脫您要求員工承擔的所有技術變革的重擔。有些工作負載根本沒有被採用。其他工作流程的採用不完整或不正確，即使您的員工正確採用了這些工作流程，也只是佔用了太多高價值活動的時間。其後果會阻礙您實現目標。您現有的員工已經出現了變革疲勞，而培養新員工需要很長時間。因此，您沒有獲得預期的生產力提升。

Risks are increasing as some of these workflows have key compliance and legal implications. Poor adoption means your money is tied up on software that's not used or is taking way too long to realize value from those investors. And all of this technology that was supposed to help you be more agile is actually getting in the way of your ability to adapt quickly as market conditions change to remain competitive and execute on strategic shifts. Imagine that. And more change is coming. The average enterprise is already using 44 generative AI applications. This is going to explode as their existing applications introduce new AI capabilities and new AI native tools enter the market. But just like we saw with digital transformation, success from AI transformation is not guaranteed. Last fall, Boston Consulting Group studied the impact of Gen AI on their consultants. They found the consultants who use AI performed way better in certain kinds of tasks. But here's the rub. They also found a reduction in performance when generative AI was used on other kinds of tasks. Change has always been with us. Our job as leaders has always been to help people use new technologies the right way for the right activities. But AI transformation represents the biggest change to how we work in our lifetime, and it will be the biggest change management challenge organizations face in the next one to two years and the same legacy approaches that were already failing us in digital transformation like over relying on traditional training or trying to manage change incrementally aren't going to help you in a world where your applications, your workflows and the people using them are constantly changing. That's because these legacy approaches are based on the flawed belief that change is a zero to one exercise. Change has no finish line. There is a better way to deal with it and it requires three things. First, you can't solve the problem you can't see. You need a single watch tower that pinpoints all the friction in your organization, workflow by workflow, task by task, and across any number of applications. Second, you need to create experiences with people at the centre, experiences that eliminate friction, automate mundane tasks, are consistent across the organizations, and optimized for the jobs the team needs to get done.

由於其中一些工作流程具有關鍵的合規性和法律影響，因此風險正在增加。採用率低意味著您的資金被佔用在未使用的軟體上，或者需要很長時間才能從投資者那裡實現價值。所有這些本應幫助您變得更加敏捷的技術實際上都阻礙了您隨著市場條件變化而快速適應以保持競爭力和執行策略轉變的能力。想像一下。更多的變化即將到來。平均每個企業已經在使用 44 個生成式 AI 應用程式。隨著現有應用程式引入新的人工智慧功能和新的人工智慧原生工具進入市場，這種情況將會爆發。但就像我們在數位轉型中看到的那樣，人工智慧轉型的成功並不能保證。去年秋天，波士頓顧問公司研究了 Gen AI 對他們顧問的影響。他們發現使用人工智慧的顧問在某些類型的任務中表現得更好。但這就是問題所在。他們還發現，當生成式人工智慧用於其他類型的任務時，效能會下降。變化一直伴隨著我們。作為領導者，我們的工作始終是幫助人們以正確的方式使用新技術來進行正確的活動。但人工智慧轉型代表了我們一生中工作方式的最大變化，這將是組織在未來一到兩年內面臨的最大變革管理挑戰，以及那些已經讓我們在數位轉型中失敗的傳統方法，例如過度依賴在應用程式、工作流程和使用它們的人員不斷變化的世界中，傳統培訓或嘗試逐步管理變更不會對您有幫助。這是因為這些遺留方法是基於這樣一種錯誤的信念，即變革是零到一的練習。改變沒有終點線。有一個更好的方法來處理它，它需要三件事。首先，你無法解決你看不到的問題。您需要一個監視塔來精確定位組織中、各個工作流程、各個任務以及任意數量的應用程式中的所有摩擦。其次，您需要創造以人為中心的體驗，這些體驗可以消除摩擦，自動執行日常任務，在整個組織中保持一致，並針對團隊需要完成的工作進行最佳化。

Lastly, this is not just about your existing technology. You need a tool that will help you manage through the surge of change that technologies like generative AI are bound to unleash, one that helps you make better choices about what technology you're going to buy in the future and how it's adopted consistently across your company. You cannot do this on your own. You need a system to help you manage the change brought on by technology. That system is called the digital adoption platform. WalkMe is the undisputed leader in DAP. We pioneered this category and many of the biggest companies in the world rely on us because we are required equipment for navigating constant change. WalkMe's DAP sits on top of your tech stack, giving you information about the applications deployed across your company, who's using them, what workflows are associated with, and where friction is preventing them from being executed as intended. We then give you tools to automate routine tasks and deliver personalized guidance to people when and where they need it most. Your people get interactive in-app guidance at the moment of need, a conversational interface to kick off tasks, and get answers through natural language and hopeful notifications to stay informed and remain compliant, all in flow of work.

最後，這不僅僅是關於您現有的技術。您需要一種工具來幫助您應對生成式人工智慧等技術必然帶來的變革浪潮，幫助您更好地選擇未來要購買的技術以及如何在整個組織中一致採用該技術。公司。您無法獨自完成此操作。您需要一個系統來幫助您管理科技帶來的改變。該系統稱為數位採用平台。WalkMe 是 DAP 無可爭議的領導者。我們開創了這個類別，世界上許多最大的公司都依賴我們，因為我們需要設備來應對不斷的變化。WalkMe 的 DAP 位於您的技術堆疊之上，為您提供有關整個公司部署的應用程式、誰在使用它們、與哪些工作流程相關聯以及哪些摩擦阻礙了它們按預期執行的資訊。然後，我們為您提供工具來自動執行日常任務，並在人們最需要的時間和地點為他們提供個人指導。您的員工可以在需要時獲得互動式應用程式內指導、啟動任務的對話介面，並透過自然語言和充滿希望的通知獲得答案，以保持知情並保持合規，所有這些都在工作流程中。

The WalkMe platform is powered by DeepUI, our proprietary AI technology that understands software the way a human does. So it automatically adjusts to the constant change in your underlying applications and can make recommendations for eliminating friction before it becomes a problem. It's delivered via web desktop and mobile and prepackaged to support the key workflows where friction is most often hiding, whether that be in one application or more commonly workflows that span multiple apps. So you know exactly where to get started. And when you're ready, you can pick the workflows that you want to optimize next. These and 2000 other global customers have turned to us because we have an unmatched data-first approach that lets you see all your biggest friction points workflow-by-workflow across applications. You can customize KPIs and dashboards so that you and your leadership can keep track of how you're progressing against goals that you can define. Every year we processed over 7 billion transactions for our customers. Our security is enterprise-grade. In fact, we are the only FedRAMP certified and we have world-class professional services and support that enterprises like you demand. We solve problems for almost every workflow and application out there.

WalkMe 平台由 DeepUI 提供支持，DeepUI 是我們專有的人工智慧技術，可以像人類一樣理解軟體。因此，它會自動適應底層應用程式的不斷變化，並可以在摩擦成為問題之前提出消除摩擦的建議。它透過網路桌面和行動裝置交付，並經過預先打包，以支援最常隱藏摩擦的關鍵工作流程，無論是在一個應用程式中還是在跨多個應用程式的更常見的工作流程中。所以您確切地知道從哪裡開始。準備好後，您可以選擇接下來要最佳化的工作流程。這些以及其他 2000 家全球客戶紛紛轉向我們，因為我們擁有無與倫比的數據優先方法，可讓您跨應用程式逐個工作流程了解所有最大的摩擦點。您可以自訂 KPI 和儀表板，以便您和您的領導層可以追蹤您在實現您定義的目標方面的進度。每年我們為客戶處理超過 70 億筆交易。我們的安全性是企業級的。事實上，我們是唯一一家獲得 FedRAMP 認證的公司，我們擁有像您這樣的企業所需的世界級的專業服務和支援。我們解決幾乎所有工作流程和應用程式的問題。

So when you come to us, you can be confident we've seen it before and we know how to get you to value quickly. We have the strongest partnerships from the largest systems integrators in the world to regional partners you can work with. And we have the largest community of DAP professionals. So you're always supported. This is why we're consistently rated the number one digital adoption platform among industry analysts and why our customers see close to 5x return when they choose WalkMe. Change is a constant focus. WalkMe can be the consistent partner to help you navigate through it.

因此，當您來到我們這裡時，您可以相信我們以前見過它，我們知道如何讓您快速實現價值。我們擁有最強大的合作夥伴關係，從世界上最大的系統整合商到您可以合作的區域合作夥伴。我們擁有最大的行動黨專業人士社群。所以你總是得到支持。這就是為什麼我們一直被產業分析師評為排名第一的數位採用平台，也是為什麼我們的客戶在選擇 WalkMe 時看到了接近 5 倍的回報。變化是一個持續關注的焦點。WalkMe 可以成為幫助您度過難關的始終如一的合作夥伴。

(video ends)

（影片結束）

Good morning, everyone. I hope you enjoyed Adriel's short clip from our recent SKO event. It really demonstrates how WalkMe is solving a mission-critical problem for the largest enterprise companies in the world. With that, I would like to begin.

大家，早安。我希望您喜歡 Adriel 在我們最近的 SKO 賽事中拍攝的短片。它真實地展示了 WalkMe 如何為世界上最大的企業解決關鍵任務問題。我想就此開始。

2023 was a transformational year for us. We concluded revenue with $267 million, consistent with our guidance last quarter. We ended 2023 with an ARR of $276 million. Although this was below our expectation at the beginning of the year, it was in line with our updated forecast. The macroeconomic headwinds put pressure both on renewals and new deals mainly in the first half and we needed to adapt fast. We made a strategic decision to focus on operational excellence and become a profitable company while investing in future growth drivers, customer value, and our foundation. I'm super happy with how fast we were able to accomplish this transformation, and I'm happy to share some of the highlights today. We shifted our business from burning $54 million in cash in 2022 to generating over $11 million in 2023. This is a $65 million improvement in our cash flow, outstanding achievement all around, and we did it within a few quarters. We've been a profitable company since Q3 2023, way ahead of our original plan. We optimized our internal structure and strengthened our executive leadership team. We added Sunil Nagdev as our Chief Customer Officer, and we are laser focused on delivering customer value fast. We continue to invest in our growth driver in order to accelerate our revenue growth in the upcoming years. We obtained FedRAMP certification, allowing us to sell deep into further organization and increasing our TAM. It's already proving a significant contribution to our ARR. We signed a new global partnerships and expanded our relationships with some of our top partners, including Deloitte, Accenture, Tech Mahindra, among others. We launched a new partner program, Propel, which already showing signs of early success. And we became an official AWS Marketplace seller offering our customers the opportunity to buy WalkMe through their AWS budget.

2023 年對我們來說是轉型的一年。我們的收入為 2.67 億美元，與我們上季度的指導一致。截至 2023 年，我們的 ARR 為 2.76 億美元。儘管這低於我們年初的預期，但與我們最新的預測相符。宏觀經濟的逆風主要在上半年給續約和新交易帶來了壓力，我們需要快速適應。我們做出了策略決策，專注於卓越營運並成為一家獲利的公司，同時投資於未來的成長動力、客戶價值和我們的基礎。我對我們能夠以如此快的速度完成這一轉變感到非常高興，並且我很高興分享今天的一些亮點。我們的業務從 2022 年燒掉 5,400 萬美元現金轉向到 2023 年創造超過 1,100 萬美元現金。我們的現金流改善了 6500 萬美元，在各個方面都取得了傑出的成就，而且我們在幾個季度內就做到了。自 2023 年第三季以來，我們一直是一家盈利的公司，遠遠超出了我們最初的計劃。優化內部架構，加強領導班子建設。我們任命 Sunil Nagdev 為首席客戶官，我們專注於快速交付客戶價值。我們繼續投資我們的成長動力，以加速未來幾年的收入成長。我們獲得了 FedRAMP 認證，使我們能夠深入組織並增加我們的 TAM。事實證明，它對我們的 ARR 做出了重大貢獻。我們簽署了新的全球合作夥伴關係，並擴大了與德勤、埃森哲、Tech Mahindra 等一些頂級合作夥伴的關係。我們啟動了一個新的合作夥伴計劃 Propel，該計劃已經顯示出早期成功的跡象。我們成為了 AWS Marketplace 官方賣家，為我們的客戶提供透過其 AWS 預算購買 WalkMe 的機會。

On the product side, we launched WalkMe Discovery for enterprises to unlock full visibility into their tech stack. And we've seen tremendous success now covering over 7 million employees worldwide, growing more than 75% in Q4 over Q3. We continued to distribute WalkMe Workstation to our top customers for utilizing it for their everyday enterprise workflow needs. We launched our unique AI offering focused on tracking shadow AI visibility and adopting new AI technologies. We are giving enterprises organizations the foundation they need to take immediate action and achieve change management at scale while ensuring safety and privacy. We continue to invest deeply in our advanced proprietary DeepUI AI technology. DeepUI learns and understand every user interface like a human. It is the foundation of our existing product lines and our vision of a powerful AI text-to-action solution. On our market category, we saw the release of market guides from all the major analyst firms, including Gartner, IDC, and Forrester. This was a huge testament to the growing demand and DAP inquiries coming from enterprises. We were named leaders and star performers in the Everest PEAK Matrix and leader of the Forrester New Wave. We saw DAP featured in over seven different Gartner Hype Cycles, which demonstrates the depth of our technology use cases and its influence across the digital workspace.

在產品方面，我們推出了 WalkMe Discovery，幫助企業全面了解其技術堆疊。我們已經看到了巨大的成功，目前已覆蓋全球超過 700 萬名員工，第四季比第三季成長了 75% 以上。我們繼續向我們的頂級客戶分發 WalkMe Workstation，以便利用它來滿足他們的日常企業工作流程需求。我們推出了獨特的人工智慧產品，專注於追蹤影子人工智慧可見性並採用新的人工智慧技術。我們為企業組織提供立即採取行動並實現大規模變革管理所需的基礎，同時確保安全和隱私。我們繼續深入投資我們先進的專有 DeepUI AI 技術。DeepUI 像人類一樣學習和理解每個使用者介面。它是我們現有產品線的基礎，也是我們對強大的人工智慧文字到操作解決方案的願景的基礎。在我們的市場類別中，我們看到了所有主要分析公司（包括 Gartner、IDC 和 Forrester）發布的市場指南。這充分證明了企業的需求和 DAP 詢問不斷增長。我們被評為珠穆朗瑪峰高峰矩陣中的領導者和明星表現者以及 Forrester New Wave 的領導者。我們看到 DAP 在超過七個不同的 Gartner 技術成熟度曲線中得到了體現，這展示了我們技術用例的深度及其對整個數位工作空間的影響。

We're entering 2024 stronger than ever. We are better as a team profitable and generating cash with a very strong balance sheet. We have a better product with a wider offering and we're leading the DAP market. These changes are felt in our Q4 result. We ended the year with a strong Q4, surpassing our expectation generating $4.8 million in operating profit and $8.4 million in free cash flow on a non-GAAP basis, another record high profitability milestone. We grew our subscription revenue by 8% year over year to over $63 million. And we reached a new high of 199 DAP customers and 41 customers paying us over $1 million in ARR. We've proven in 2023 that with the required measure and the right processes in place the WalkMe Engine can produce cash at scale. Q4 marks the end of our transformational phase and now we turn to accelerating net ARR growth in 2024.

進入 2024 年，我們將比以往任何時候都更強大。作為一個團隊，我們能夠更好地獲利並產生現金，並擁有非常強大的資產負債表。我們擁有更好的產品和更廣泛的產品，我們正在引領 DAP 市場。這些變化在我們第四季的業績中得到體現。我們以強勁的第四季度業績結束了這一年，超出了我們的預期，按非公認會計原則計算，營業利潤為480 萬美元，自由現金流為840 萬美元，這是另一個創紀錄的高盈利里程碑。我們的訂閱收入年增 8%，達到超過 6,300 萬美元。我們創下了 199 名 DAP 客戶和 41 名客戶向我們支付的 ARR 超過 100 萬美元的新高。我們在 2023 年證明，透過採取必要的措施和正確的流程，WalkMe Engine 可以大規模產生現金。第四季標誌著我們轉型階段的結束，現在我們轉向在 2024 年加速淨 ARR 成長。

Our path ahead is very clear as we aim to double the 2023 net new ARR in 2024 to a double-digit ARR growth, which will drive our revenue growth acceleration in 2025. We continue to invest in our strategic growth drivers driving expansion opportunities from G2K enterprise companies accelerating our DAP business, which showed its true strengths in our GTM consistently throughout the last two years, delivering value faster for our customers by focusing on key enterprise workflows and on our partner ecosystem as a growing source of revenue.

我們的前進道路非常明確，我們的目標是在 2024 年將 2023 年淨新 ARR 翻一番，達到兩位數的 ARR 成長，這將推動我們在 2025 年的營收成長加速。我們繼續投資於我們的策略成長動力，推動G2K 企業公司的擴張機會，加速我們的DAP 業務，這在過去兩年中始終如一地在我們的GTM 中展示了其真正的優勢，透過專注於關鍵企業工作流程和我們的合作夥伴生態系統作為不斷增長的收入來源。

I'm excited about our upcoming product roadmap. We will focus on delivering greater value to our customer base with the launch of Workflow Accelerators. Workflow Accelerators is positioned to be a game changer in how we sell and deliver the WalkMe value. This will also be a key contributor to ensure faster customer value, which will result in higher customer retention and faster expansions.

我對我們即將推出的產品路線圖感到興奮。透過推出工作流程加速器，我們將專注於為客戶群提供更大的價值。Workflow Accelerators 的定位是改變我們如何銷售和傳遞 WalkMe 價值的遊戲規則。這也將成為確保更快實現客戶價值的關鍵因素，進而提高客戶保留率並加快擴張速度。

Another exciting product is our new version of our Workstation product that is evolving into a true enterprise workflow copilot for employees. We have many more exciting announcements coming up in the next few months regarding AI in the workplace and how the next generation of DAP will play a key role in enterprise technology adoption.

另一個令人興奮的產品是我們新版本的工作站產品，它正在演變成員工真正的企業工作流程副駕駛。在接下來的幾個月裡，我們將發布更多關於工作場所人工智慧以及下一代 DAP 將如何在企業技術採用中發揮關鍵作用的令人興奮的公告。

To summarize, 2024 will be a very exciting year for us and through for the upcoming innovations and the execution of the team aim to accelerate ARR growth and deliver the DAP value to our customers at scale.

總而言之，2024 年對我們來說將是非常令人興奮的一年，透過即將到來的創新和團隊的執行，我們的目標是加速 ARR 成長並大規模為我們的客戶提供 DAP 價值。

I want to take a moment and thank our employees for their amazing execution in 2023. And to all of our partners, customers, and investors, thank you for your continued support and belief in our vision and mission. We are shaping the future of digital workplace, and we will continue to innovate and scale our business.

我想花點時間感謝我們的員工在 2023 年的出色執行力。感謝我們所有的合作夥伴、客戶和投資者對我們願景和使命的持續支持和信任。我們正在塑造數位工作場所的未來，我們將繼續創新和擴展我們的業務。

Now I'll hand it over to Scott, our CRO. Scott, over to you.

現在我將把它交給我們的 CRO Scott。史考特，交給你了。

Thanks, Dan. I want to echo Dan's sentiment. The Go-to-Market team is energized as we head into 2024 with a clear purpose to accelerate our net new ARR growth. I've now had a full year in the seat of CRO, and we've made a lot of changes. In 2023, we streamlined our team priorities and realigned territories to focus on the highest quality accounts with the best expansion potential, developing deep relationships with our customers. The sales team is now tightly coordinated with the revamped customer success organization, which will foster happier customers experiencing the value of DAP. We're using value selling across the customer's lifecycle to identify and deliver solutions based on critical business workflows rather than just applications. This is a big change. The new outcome-based discovery methodology creates the foundation for the handoff from our land to the successful implementation for our customers. We've shifted our services strategy to an outcome-driven model as well. Selling our services as a scope of work tied to business workflows accelerates the time to value. We started this transition in the third quarter, and we've already seen the time to deployment decreased by nearly 80%. We've redirected resources internally to improve the coverage of our customer success group across our renewal base, which was a big factor for churn in 2023. We now have over 90% coverage for our renewal base in 2024, focused on highlighting successful value creation and expanding the scope of our platform to new workflow opportunities. This transformation across our sales and CS processes, focusing on outcome-based value for critical business workflows will benefit us twofold. First, by reducing the risk of churn, and second, by increasing expansion opportunities. These benefits will enable us to accelerate our net new business throughout 2024. We are laser focused on top growth areas, expanding with our G2K and large enterprise customers, US public sector, and partners. Our public sector team had a great year in 2023 from kicking off with FedRAMP-Ready certification to landing multiple deals that were well above our expectation. In 2024, we plan on doubling their contribution as we continue to expand our footprint in the US public sector market. The US federal market in particular is ripe with opportunity and WalkMe being the sole FedRAMP-Ready provider of DAP is well positioned to take advantage of this opportunity. US federal deals tend to be much larger than our traditional enterprise land deals and can extend for longer duration. We're very excited about the progress that's been made so far. We're just getting started.

謝謝，丹。我想回應丹的觀點。進入 2024 年，進入市場團隊充滿活力，明確目標是加速我們的新 ARR 淨成長。我現在已經在 CRO 職位上工作了一整年，我們做出了很多改變。2023 年，我們簡化了團隊優先事項並重新調整了區域，以專注於具有最佳擴張潛力的最高品質客戶，與客戶建立深厚的關係。銷售團隊現在與改組後的客戶成功組織緊密協調，這將培養更快樂的客戶體驗 DAP 的價值。我們在客戶的整個生命週期中使用價值銷售來識別和提供基於關鍵業務工作流程而不僅僅是應用程式的解決方案。這是一個很大的改變。新的基於結果的發現方法為從我們的土地到客戶的成功實施奠定了基礎。我們也將服務策略轉變為結果驅動模式。將我們的服務作為與業務工作流程相關的工作範圍來銷售，可以加快實現價值的時間。我們在第三季開始了這一轉變，我們已經看到部署時間減少了近 80%。我們在內部重新調整了資源，以提高客戶成功團隊在續約基礎上的覆蓋範圍，這是 2023 年客戶流失的重要因素。目前，到 2024 年，我們的更新基礎覆蓋率已超過 90%，重點是強調成功的價值創造，並將我們的平台範圍擴展到新的工作流程機會。我們的銷售和客戶服務流程的這種轉變，重點關注關鍵業務工作流程的基於結果的價值，將使我們受益匪淺。首先，降低客戶流失風險；其次，增加擴張機會。這些優勢將使我們能夠在 2024 年加速我們的淨新業務。我們專注於最重要的成長領域，與我們的 G2K 和大型企業客戶、美國公共部門和合作夥伴一起擴展。我們的公共部門團隊在 2023 年度過了美好的一年，從獲得 FedRAMP-Ready 認證到達成多項遠遠超出我們預期的交易。到 2024 年，隨著我們繼續擴大在美國公共部門市場的足跡，我們計劃將他們的貢獻加倍。美國聯邦市場的機會尤其成熟，WalkMe 作為唯一一家 FedRAMP-Ready 的 DAP 供應商，完全有能力利用這個機會。美國聯邦交易往往比我們傳統的企業土地交易規模大得多，而且期限可以更長。我們對迄今為止所取得的進展感到非常興奮。我們才剛開始。

Our partner program is an integral part of the entire organization. We've done a phenomenal job building out a world-class partner enablement program and expect their contribution will continue to grow our overall business. Our GSI partners are working on some of the largest business transformations in the world. And as a trusted contributor to their change management practices, we are an integral part of their strategy. Our partners sourced or influenced nearly 58% of our business in 2023. And they implemented over a third of our net new ARR. When we engage our partner ecosystem, we see stickier customers, greater value realized, and bigger opportunities for expansion. When partners source deals for us, we see an uplift of over 40% on the average deal's new ARR. The impact in public sector is even higher.

我們的合作夥伴計畫是整個組織不可或缺的一部分。我們在建立世界一流的合作夥伴支援計劃方面做得非常出色，並期望他們的貢獻將繼續促進我們的整體業務成長。我們的 GSI 合作夥伴正在致力於世界上一些最大的業務轉型。作為變革管理實務值得信賴的貢獻者，我們是他們策略不可或缺的一部分。2023 年，我們的合作夥伴採購或影響了我們近 58% 的業務。他們實現了我們淨新 ARR 的三分之一以上。當我們參與合作夥伴生態系統時，我們會看到更黏性的客戶、實現的更大價值以及更大的擴張機會。當合作夥伴為我們尋找交易時，我們發現平均交易的新 ARR 提高了 40% 以上。對公共部門的影響甚至更大。

Lastly, our G2K customers are a key target for us to continue to expand. We ended the year with 410 G2K customers whose ARR represents over 50% of our total. On average, these customers are paying us over three times what our non-G2K customers are paying. This group represents a great opportunity for us to expand our customer base as we deliver value and enhance our workflow footprint.

最後，我們的 G2K 客戶是我們持續擴張的關鍵目標。截至年底，我們擁有 410 名 G2K 客戶，其 ARR 占我們總數的 50% 以上。平均而言，這些客戶向我們支付的費用是非 G2K 客戶的三倍以上。團隊為我們提供了擴大客戶群的絕佳機會，因為我們可以提供價值並增強我們的工作流程足跡。

It is crystal clear when we prove value, we expand. I want to highlight an example customer from 2023. This global Nasdaq 100 pharmaceutical company first landed with WalkMe to drive the implementation of a new procurement platform across over 12,000 global users. With WalkMe, they focused on increasing the percentage of transactions involving structured spend that go through the platform by simplifying navigation, easing initial setup, and encouraging users to follow the new process as the business intended when investing in the technology.

很明顯，當我們證明價值時，我們就會擴張。我想重點介紹 2023 年的一個客戶範例。這家全球納斯達克 100 強藥公司首次登陸 WalkMe，推動新採購平台在全球 12,000 多名用戶中的實施。透過 WalkMe，他們致力於透過簡化導航、簡化初始設定以及鼓勵用戶在投資技術時按照業務預期遵循新流程來提高透過該平台進行的涉及結構化支出的交易百分比。

In the first year, they saw engagement with WalkMe reached 86% of their interactions. They saw an improvement in NPS score. And they directed their users to the right buying channel over 97% of the time, which was the intended outcome of their software investment. Following the success, the customer established a center of excellence focused on other workflows that could benefit from WalkMe. And I am thrilled to say that they expanded with us in 2023 as they recognized the value we add to their mission critical processes.

第一年，他們發現 WalkMe 的參與度達到了他們互動的 86%。他們發現 NPS 分數有所提高。他們在超過 97% 的時間裡將用戶引導至正確的購買管道，這是他們軟體投資的預期結果。成功之後，客戶建立了一個卓越中心，專注於其他可以從 WalkMe 中受益的工作流程。我很高興地說，他們在 2023 年與我們一起擴張，因為他們認識到我們為其關鍵任務流程增加的價值。

Accelerating these expansions is a great example of what we can do when we prove value. The alignment between our sales, customer success, and professional services organization is accelerating our path to larger revenue streams. In the fourth quarter, we added new customers such as Crow, DS Smith, Big-D Construction, among others. And we expanded with great clients such as BDO Canada or Core Hotel Group, Flight Centre Travel Group, Republic National Distributing Company, and many more.

加速這些擴張是我們證明價值時可以做的事情的一個很好的例子。我們的銷售、客戶成功和專業服務組織之間的協調正在加速我們實現更大收入流的道路。第四季度，我們增加了 Crow、DS Smith、Big-D Construction 等新客戶。我們也擴大了與 BDO Canada 或 Core Hotel Group、Flight Centre Travel Group、Republic National Distributing Company 等大客戶的合作範圍。

We're now a cohesive go-to-market team, and we're excited about the opportunities ahead of us in 2024. We're focused on execution this year with a clear purpose to drive value for our customers and in turn, expand our capabilities to sell.

我們現在是一個有凝聚力的市場團隊，我們對 2024 年面前的機會感到興奮。今年我們的重點是執行力，其明確的目標是為客戶創造價值，進而擴大我們的銷售能力。

With that, I'd like to thank our entire Go-to-Market organization and hand it over to Vicki.

在此，我要感謝我們整個市場推廣組織，並將其移交給 Vicki。

Thank you, Scott, and hi, everyone. 2023 was a transformational year for WalkMe where we optimized and rebuild our fundamentals to become a profitable company with a focus on operational excellence. When I took over the role of CFO, WalkMe was an unprofitable company burning cash. I'm proud to share that WalkMe has been a profitable company since Q3 2023 with an improvement of 22 percentage points year over year on a non-GAAP operating margin and ending the year with a non-GAAP operating loss of $5 million, a huge leap compared to a loss of $58 million in 2022. From a negative free cash flow of $54 million in 2022, we generated over $11 million of free cash flow in 2023, an improvement of over $65 million in just one year. This is a huge achievement for the entire company as we now have a clear path to scaling in a profitable way. These achievements are a direct result of our internal changes made in 2023, which focus on high-growth areas, adjusting our cost structure and steering the entire organization towards operational excellence. We will continue on this path by improving our unit economics, focus on subscription revenue with higher margin of 90% as we continue the transition of professional services business to our partner ecosystem in line with our strategy. By aligning our customer facing teams in our go-to-market structure to be more effective and efficient with time to value top of mind, we are now positioned to accelerate growth and execution with our current investment in 2024. Our main priorities for 2024 are focused on ARR growth, improving customer retention, and driving DAP expansion with our customer base as we shift to outcome-driven value of key business workflows. As we continue to improve on rule of 40, we are balancing our incremental investments. Using free cash flow margin, we improved from 5 in 2020 to over 13 in 2023. We expect to continue to improve on this metric in 2024 and beyond.

謝謝你，斯科特，大家好。 2023 年對 WalkMe 來說是轉型的一年，我們優化並重建了基本面，成為一家專注於卓越營運、獲利的公司。當我接任財務長時，WalkMe 是一家燒錢的無利可圖的公司。我很自豪地告訴大家，自2023 年第三季以來，WalkMe 一直是一家盈利的公司，非GAAP 營業利潤率同比提高了22 個百分點，截至年底，非GAAP 營業虧損為500 萬美元，這是一個巨大的數字。與 2022 年的 5800 萬美元損失相比，實現了飛躍。從 2022 年 5,400 萬美元的負自由現金流，到 2023 年，我們產生了超過 1,100 萬美元的自由現金流，光是一年就增加了超過 6,500 萬美元。這對整個公司來說是一項巨大的成就，因為我們現在有了一條以盈利方式擴展規模的明確道路。這些成就是我們在 2023 年進行的內部變革的直接結果，這些變革專注於高成長領域，調整我們的成本結構並引導整個組織實現卓越營運。我們將繼續沿著這條道路前進，改善我們的單位經濟效益，專注於利潤率高達 90% 的訂閱收入，同時我們繼續根據我們的策略將專業服務業務過渡到我們的合作夥伴生態系統。透過在進入市場的結構中調整我們面向客戶的團隊，使其更加有效和高效，並將實現價值的時間放在首位，我們現在能夠利用我們目前的投資在 2024 年加速成長和執行。我們 2024 年的主要優先事項是 ARR 成長、提高客戶留任率，以及隨著我們轉向關鍵業務工作流程的結果驅動價值，推動 DAP 擴展我們的客戶群。隨著我們不斷改進 40 法則，我們正在平衡增量投資。使用自由現金流保證金，我們從 2020 年的 5 提高到 2023 年的 13 以上。我們預計在 2024 年及以後繼續改進此指標。

With that, let's turn to numbers. I would like to note that when discussing gross margin, operating expenses, operating and net income and free cash flow, I will be referring to non-GAAP numbers. Our total revenue for the fourth quarter was $68 million and for the year, $267 million, which represents 9% growth year over year. We grew subscription revenue for the quarter by 8% year over year and for the full year by 12% year over year, with subscription gross margin of 90%. We expect to maintain this subscription margin level throughout 2024.

接下來，讓我們轉向數字。我想指出的是，在討論毛利率、營運費用、營運和淨利潤以及自由現金流時，我將指的是非公認會計準則數據。我們第四季的總營收為 6,800 萬美元，全年總營收為 2.67 億美元，較去年同期成長 9%。我們本季的訂閱營收年增 8%，全年年增 12%，訂閱毛利率為 90%。我們預計 2024 年將維持此認購保證金水準。

Our professional services revenue for Q4 was $4.5 million, slightly down compared to Q3 and down 26% compared to Q4 of last year. This is in line with our internal partner strategy and the shift to outcome-based project. We are now forecasting a slight sequential decline in our PS revenue for the year ahead as the trend continues. PS gross margin continue to improve to over 27% in Q4, driven by better workforce utilization as we reallocated resources to improve our coverage within the customer success group. Our total gross margin for Q4 was 86%, up from 82% in Q4 last year. Gross profit was $58.5 million, up 9% year over year. We expect to maintain this level of profitability throughout 2024.

我們第四季的專業服務收入為 450 萬美元，比第三季略有下降，比去年第四季下降了 26%。這符合我們的內部合作夥伴策略以及向基於成果的專案的轉變。我們現在預測，隨著這一趨勢的持續，我們未來一年的 PS 收入將略有下降。由於我們重新分配資源以擴大客戶成功團隊的覆蓋範圍，勞動力利用率提高，推動第四季度 PS 毛利率繼續提高至 27% 以上。我們第四季的總毛利率為 86%，高於去年第四季的 82%。毛利為 5,850 萬美元，年增 9%。我們預計 2024 年將維持此獲利水準。

For Q4 OpEx, we remain on a positive trend we have seen for the last eight quarters in a row, improving our operating leverage and profitability. Our flexible OpEx structure enables scale by balancing growth and profitability. R&D expenses were $10.3 million, representing 15% of revenue. We continue to invest in our core platform, strategic data product, and AI capabilities.

對於第四季度的營運支出，我們仍然保持過去八個季度連續看到的正面趨勢，提高了我們的營運槓桿和獲利能力。我們靈活的營運支出結構透過平衡成長和獲利能力來實現規模化。研發費用為 1,030 萬美元，佔營收的 15%。我們持續投資於我們的核心平台、策略性數據產品和人工智慧能力。

Sales and marketing expenses were $33.8 million or 50% of revenue, an improvement from 62% in Q4 of last year. With our current sales and marketing structure, we now have the capacity to accelerate growth in 2024. G&A expenses were $9.6 million or 14% of revenue, below the 18% we saw in Q4 of last year. I would like to note that this exclude a one-time GAAP expense of $3 million in connection with our Q4 settlement in principle of class action lawsuit claims related to exempt classification of certain employees. This is a nonrecurring expense.

銷售和行銷費用為 3,380 萬美元，佔營收的 50%，較去年第四季的 62% 有所改善。憑藉我們目前的銷售和行銷結構，我們現在有能力在 2024 年加速成長。一般管理費用為 960 萬美元，佔營收的 14%，低於去年第四季的 18%。我想指出的是，這不包括與我們第四季度和解有關的一次性 GAAP 費用 300 萬美元，原則上是與某些員工的豁免分類相關的集體訴訟索賠。這是一項非經常性費用。

Q4 operating income was $4.8 million or 7.1% of revenue, an improvement from 2.4% in Q3 and from a loss of $10.5 million or negative 16.2% in Q4 of last year. Net income for the quarter attributed to WalkMe was $6.8 million compared to a loss of $8.9 million in Q4 last year.

第四季營業收入為 480 萬美元，佔營收的 7.1%，較第三季的 2.4% 有所改善，也較去年第四季的虧損 1,050 萬美元或負 16.2% 有所改善。WalkMe 帶來的本季淨利潤為 680 萬美元，而去年第四季則虧損 890 萬美元。

Net income for 2023 was $3.7 million compared to a loss of $56 million in 2022. Net income per share for the quarter was $0.07, using 94.2 million fully diluted weighted average shares outstanding compared to a loss of $0.10 in Q4 of last year. In Q4, we generated $8.4 million in free cash flow, an improvement from the $6.2 million generated in Q3 and a cash burn of $10.2 million in Q4 of last year.

2023 年淨利為 370 萬美元，而 2022 年虧損 5,600 萬美元。根據 9,420 萬股完全稀釋加權平均流通股計算，本季每股淨利為 0.07 美元，而去年第四季虧損 0.10 美元。第四季度，我們產生了 840 萬美元的自由現金流，比第三季的 620 萬美元有所改善，去年第四季的現金消耗為 1,020 萬美元。

Our free cash flow margin for the quarter was 12% compared to a negative 16% last year. On free cash flow, we expect to maintain a positive level, but it will fluctuate given seasonality in our cash management cycle. We ended the year with $322 million in cash, cash equivalents, short term deposit and marketable securities.

我們本季的自由現金流利潤率為 12%，而去年為負 16%。在自由現金流方面，我們預計將保持正水平，但考慮到現金管理週期的季節性，它會出現波動。年底，我們擁有 3.22 億美元的現金、現金等價物、短期存款和有價證券。

Turning now to guidance. Given the headwinds we face with moderate growth in net new ARR in 2023 and a continued decline in our professional services revenue, we expect subscription revenue to accelerate on a year-over-year basis each quarter, while first quarter revenue growth to be in the low in 2024. Our PS revenue will show a slight decline as we continue our transition towards partner delivery in line with our strategy.

現在轉向指導。鑑於我們面臨 2023 年淨新 ARR 溫和成長以及專業服務收入持續下降的不利因素，我們預計每季的訂閱收入將同比加速，而第一季的營收成長將在2024 年較低。隨著我們繼續按照我們的策略向合作夥伴交付轉型，我們的 PS 收入將略有下降。

On OpEx, we plan to maintain a similar level of OpEx for Q1 throughout the year with some fluctuation due to seasonality in sales and marketing events. We are now well positioned to accelerate our net new business while slightly growing our expenses at a lower rate than overall revenue growth.

在營運支出方面，我們計劃全年第一季保持類似的營運支出水平，但由於銷售和行銷活動的季節性而出現一些波動。我們現在處於有利地位，可以加速我們的淨新業務，同時以低於整體收入成長的速度略微增加我們的支出。

With that said, for the first quarter of 2024, we expect revenue in the range of $67.6 million to $68.6 million in a non-GAAP operating income in a range of $0.3 million to $1.3 million. For the full year of 2024, we now expect revenue in the range of $279 million to $283 million and a non-GAAP operating income in the range of $8 million to $11 million.

儘管如此，我們預計 2024 年第一季的營收將在 6,760 萬美元至 6,860 萬美元之間，非 GAAP 營業收入將在 30 萬美元至 130 萬美元之間。目前，我們預計 2024 年全年收入將在 2.79 億美元至 2.83 億美元之間，非 GAAP 營業收入將在 800 萬美元至 1,100 萬美元之間。

Thank you, and now we will take your questions.

謝謝您，現在我們將回答您的問題。

We'll now turn to Q&A portion of the call as a reminder. (Operator Instructions)

我們現在將轉向電話的問答部分作為提醒。（操作員說明）

Michael Berg, Wells Fargo.

麥可伯格，富國銀行。

Hi everyone. Congrats on the quarter and thanks for taking my question. I just wanted to dig into the re-acceleration and what's driving that? If we can think about what's embedded in guidance, what are the key drivers of this acceleration between either macro improvement, go-to-market alignment, some of these new exciting products layering on. Maybe just help us understand some of those key drivers. Thank you.

大家好。恭喜本季度，感謝您提出我的問題。我只是想深入研究重新加速以及是什麼推動了它？如果我們能夠思考指導中包含的內容，那麼宏觀改進、上市調整以及一些令人興奮的新產品之間的加速的關鍵驅動因素是什麼。也許只是幫助我們了解其中一些關鍵驅動因素。謝謝。

Sure. I will take it. Hi, Michael. And then so as we said in the script, we saw the pressure mainly on H1. And we started to see improvement moving forward, both on gross in ARR and improvement in churn. So as we are seeing the new ARR improving. If we can grow the net new ARR and or as we said, double the net new ARR in 2024 to 2023, we will see acceleration in revenue, mainly on the second half and in 2025 on subscription revenue. So as we're adding more net new ARR per quarter, that will drive revenue acceleration as ARR is [leading] indicator.

當然。我會接受的。嗨，邁克爾。然後，正如我們在劇本中所說，我們看到壓力主要集中在 H1 上。我們開始看到未來的改善，無論是 ARR 總額或是客戶流失率的改善。我們看到新的 ARR 有所改善。如果我們能夠增加淨新 ARR，或者正如我們所說，在 2024 年至 2023 年將淨新 ARR 增加一倍，我們將看到收入加速成長，主要是下半年和 2025 年的訂閱收入。因此，隨著我們每季增加更多淨新 ARR，這將推動收入加速，因為 ARR 是[領先]指標。

Helpful. And then just a quick follow-up on the products you launched. In terms of the (technical difficulty), is that a meaningful change in how you're leveraging your technology and product? Or is it more of just a go to market alignment strategy? I want to just be clear on that. Thanks.

有幫助。然後快速跟進您推出的產品。就（技術難度）而言，這對您利用科技和產品的方式來說是有意義的改變嗎？或者這只是一種進入市場的調整策略？我想澄清這一點。謝謝。

So as we always say, we're looking at WalkMe as a full platform. One of the main things we did, we are focusing on enterprise and large enterprise customers. So the feature sets that we're giving them the visibility, the connection of data action, and experience. That's what makes them going from a use-case-based specific to full platform, as we mentioned, top customer.

正如我們常說的，我們將 WalkMe 視為一個完整的平台。我們所做的主要事情之一是專注於企業和大型企業客戶。因此，我們為他們提供了可見性、資料操作連接和體驗的功能集。正如我們所提到的，這就是使他們從基於用例的特定平台轉變為頂級客戶的原因。

So that's a, I would say, holistic approach to how we think companies should drive digital transformation and the more value we're giving to those customers, the more they are spending with us. So at the end of the day, we're [setting] the entire platform, we did do change to our pricing and how we price (technical difficulty). And basically we're much more flexible in letting those customers grow. That's one approach. So overall, it's just a complete solution to that.

因此，我想說，這是我們認為公司應該如何推動數位轉型的整體方法，我們為這些客戶提供的價值越多，他們在我們這裡的花費就越多。所以最終，我們正在[設定]整個平台，我們確實改變了我們的定價和定價方式（技術難度）。基本上，我們在讓這些客戶成長方面更加靈活。這是一種方法。總的來說，這只是一個完整的解決方案。

Thanks for the question, Michael.

謝謝你的提問，麥可。

Kevin Kumar, Goldman Sachs.

凱文庫馬爾，高盛。

Hi. Thanks for taking my questions. I wanted to touch on net retention rate. Have we reached kind of a trough there in terms of kind of churn and expansion? And I guess, how are you thinking about kind of 2024 and your expectations for kind of moving that up and kind of what's implied in the guidance? Thanks.

你好。感謝您回答我的問題。我想談談淨保留率。就流失和擴張而言，我們是否已經達到谷底了？我想，您如何看待 2024 年的情況以及您對提高這一目標的期望以及指南中暗示的內容？謝謝。

Hey, Kevin. It's Dan. So, yeah. We think it trough Q4 2022 and Q1 2023. I would say, we're the (technical difficulty) quarter. So we're showing the data on trailing four quarters. So as, of course if we get out of the trailing four quarters, we will see it bounce back. That's at least our expectation. And when we're saying that we're going to double the net new ARR, obviously, it will show on the net retention numbers as well.

嘿，凱文。是丹.嗯是的。我們認為這一情況將持續到 2022 年第四季和 2023 年第一季。我想說，我們是（技術難度）季度。因此，我們顯示了過去四個季度的數據。當然，如果我們擺脫了落後的四個季度，我們就會看到它反彈。這至少是我們的期望。當我們說我們要將淨新 ARR 增加一倍時，顯然，它也會顯示在淨保留數字上。

That's great. And then maybe just on federal an update there in terms of kind of how the pipe is developing and kind of how is the execution in the quarter and kind of how you're thinking about kind of 2024 here?

那太棒了。然後也許只是聯邦方面的最新情況，包括管道的開發方式、本季的執行情況以及您對 2024 年的看法？

I can take that one guys. We had a very good quarter from that perspective with federal. You saw (technical difficulty) in my prepared remarks, better than we expected, which is always good to hear. And we have enough confidence in the pipeline that we're building that team has taken over double the expectation for 2024. So it's a big highlight and a big investment for us. It's one of the areas that I put additional resources in for the year in my annual operating plan. And like I said, we're just beginning; very excited about it.

我可以接受那個人。從這個角度來看，我們與聯邦度過了一個非常好的季度。你在我準備好的發言中看到了（技術難度），比我們預期的要好，這總是令人高興的。我們對正在建造的管道有足夠的信心，該團隊的接管量是 2024 年預期的兩倍。所以這對我們來說是一個很大的亮點和一個很大的投資。這是我在年度營運計劃中投入額外資源的領域之一。正如我所說，我們才剛開始；對此感到非常興奮。

Great. Thanks for taking my questions.

偉大的。感謝您回答我的問題。

Thank you, Kevin.

謝謝你，凱文。

Josh Baer, Morgan Stanley.

喬許貝爾，摩根士丹利。

And like your own digital adoption reports are just extremely impressive. Like you have customers that are saying they're saving hundreds of thousands in productivity hours, millions of dollars, quick payback time, huge ROI. Just seems so attractive to an enterprise. So with that in mind, hoping you could talk through some of the challenges in getting prospective customers to adopt and over the line? Like what are the main hurdles? And then what can you do to help improve that looking forward?

就像您自己的數位採用報告一樣令人印象深刻。就像您的客戶說他們節省了數十萬的工作時間、數百萬美元、快速的投資回收期和巨大的投資回報。這對企業來說似乎太有吸引力了。因此，考慮到這一點，希望您能談談讓潛在客戶採用並上線的一些挑戰嗎？主要障礙是什麼？那麼你可以做些什麼來幫助改善這種展望呢？

Sure. I will take it. So I would divide it into. One, the ROI is phenomenal and very few reports the line is one from the IDC and we're a new category. We invented the category. And there is a lot of market education. This is why in today's call we even opened with the company narrative. So that's something that we're doubling down.

當然。我會接受的。所以我會把它分成。第一，投資回報率是驚人的，很少有報告稱該線路是來自 IDC 的，而且我們是一個新類別。我們發明了這個類別。而且有很多市場教育。這就是為什麼在今天的電話會議中我們甚至以公司的敘述作為開場。所以這是我們加倍努力的事情。

The second piece was our shift to enterprise and large enterprise. That was something that we started, I would say, more than 2020 beginning of 2021. And we're seeing the result. So taking that -- having the entire company laser focused on that resolve products, marketing, sales, partners, everything that we're doing. It's starting to show results, and we're seeing it with the customers over $1 million in ARR. And it's not just the number, it's the average of how much they pay$ growing. So when a customer is paying us over 1 million, it's not staying at the low the (technical difficulty) starting to go up. So we have a lot of work to do. We're super pleased with the platform.

第二部分是我們向企業和大型企業的轉變。我想說，這是我們從 2020 年到 2021 年初就開始做的事情。我們正在看到結果。因此，讓整個公司專注於解決產品、行銷、銷售、合作夥伴以及我們正在做的一切。它開始顯現成效，我們看到客戶的 ARR 超過 100 萬美元。這不僅僅是數字，而是他們支付的平均金額正在增加。因此，當客戶向我們支付超過 100 萬美元時，（技術難度）並不會保持在低水準開始上升。所以我們還有很多工作要做。我們對這個平台非常滿意。

We added more capabilities that will allow our customers to measure the ROI faster and we have a lot of data products that it's easier to the broad. So if today when you're doing a full deployment, WalkMe you need to build the content, you need to have a full strategy. When it starts with data products, we can actually show you where you have issues and actually have a faster ROI.

我們添加了更多功能，使我們的客戶能夠更快地衡量投資回報率，並且我們擁有許多更容易推廣的數據產品。因此，如果今天當您進行全面部署時，WalkMe 需要建立內容，您需要有一個完整的策略。當從數據產品開始時，我們實際上可以向您展示存在問題的地方，並且實際上可以更快地獲得投資回報。

The third piece actually is, as Sunil has started at around May of 2023, we set a goal to go live faster with our customers. We already have few pilots group, when we're trying to go live within four to six weeks, and we have the data to show that the expansions are happening faster. And obviously, one we're delivering value fast and the customers are happier. So as I said, 2023 was a transformational year. We put a lot of effort, not just on the financial side when you just saw the results, but on the fundamentals of the business, how we deliver value and how we as a company are laser focused to deliver value for our customers.

第三部分實際上是，正如 Sunil 在 2023 年 5 月左右開始的那樣，我們設定了一個目標，即更快地與客戶一起上線。當我們試圖在四到六週內上線時，我們已經有了幾個試點小組，我們有數據表明擴展正在更快地進行。顯然，我們正在快速交付價值，客戶也更加滿意。正如我所說，2023 年是轉型的一年。我們付出了很多努力，不僅僅是在財務方面，當你看到結果時，而是在業務的基本面、我們如何提供價值以及我們作為一家公司如何專注於為客戶提供價值。

Got it. Very helpful. And then just hoping you could comment on the competitive landscape. Any changes to know, any response to your more flexible pricing? Thank you.

知道了。很有幫助。然後只是希望你能對競爭格局發表評論。有什麼變化需要了解，對您更靈活的定價有什麼反應嗎？謝謝。

So we're seeing the same competitive landscape and we're pleased that we were leaders and star performers. So we're by far leading the category. I would tell you we want to see the category growing more, and we're putting a lot of effort on that. And so overall, for us, it's still a huge greenfield and our biggest competition is companies that we are educating on the fact that they need that. And we're doing really well.

因此，我們看到了同樣的競爭格局，我們很高興我們是領導者和明星表現者。因此，我們迄今為止在該類別中處於領先地位。我想告訴你，我們希望看到這個類別的成長更多，我們為此付出了很多努力。總的來說，對我們來說，這仍然是一片巨大的綠地，我們最大的競爭對手是我們正在教育的公司，讓他們知道他們需要這一點。我們做得非常好。

So on the pricing standpoint, what we did is we are allowing companies to actually start smaller. So we want to actually shorter the sales cycle on the land. And then once we're showing value, we have a better and clear path for the expansion. So it's still early to share data. We'll launch it in summer, but so far, we're pleased with the result.

因此，從定價的角度來看，我們所做的是允許公司實際上從小規模開始。所以我們希望實際上縮短土地的銷售週期。一旦我們展示了價值，我們就有了更好、更清晰的擴張路徑。所以現在分享數據還太早。我們將在夏天推出它，但到目前為止，我們對結果感到滿意。

Great. Thanks.

偉大的。謝謝。

Great. Thanks, Josh.

偉大的。謝謝，喬許。

Tyler Radke, Citi.

泰勒·拉德克，花旗銀行。

Hey team. This is [Matt Pride] on for Tyler. Just curious what caused the slowdown in (technical difficulty) [gross]. I see 4Q has historically been a stronger quarter. And secondly, should we anticipate a slowdown in that growth into next year?

嘿團隊。這是泰勒的[馬特·普萊德]。只是好奇是什麼導致了速度放緩（技術難度）[毛]。我認為第四季歷來都是比較強勁的季度。其次，我們是否應該預期明年的成長會放緩？

So we actually think it will accelerate as the (technical difficulty) we'll accelerate as well. And overall, I would say we saw some down-sell across all the segments. It came mainly from pressure from the macro and as I said, it was mainly in H1 and we're still carrying those quarters obviously in our numbers. But as we said, we think it's troughed. And now as we're starting to accelerate the net new ARR and we think those metrics will go up as well as the net retention.

所以我們實際上認為它會隨著（技術難度）的加速而加速。總的來說，我想說我們在所有細分市場都看到了一些降價銷售。這主要來自宏觀壓力，正如我所說，主要是在上半年，我們的數據中顯然仍然包含這些季度。但正如我們所說，我們認為它已經觸底。現在，隨著我們開始加速淨新 ARR，我們認為這些指標以及淨保留率都會上升。

Any reads into the macro going forward?

對未來的宏有任何解讀嗎？

So I would just say that even after H1 for us, it's become much better. I can tell you that the macro is sold and I'm not an Oracle to foresee the future. But I would tell you that we as a company adapt to that situation. So we're not standing here and waiting for the macro to improve. We have our technology and we bring value even in a downturn economy.

所以我只想說，即使在 H1 之後，我們的情況也變得更好了。我可以告訴你，宏已經被賣了，我不是預言未來的神諭者。但我想告訴你，我們作為一家公司適應這種情況。因此，我們不會站在這裡等待宏觀經濟的改善。我們擁有自己的技術，即使在經濟低迷時期我們也能帶來價值。

Got it. And lastly, you have over $300 million of cash on the balance sheet, accelerating free cash flow story. Any change to your appetite for M&A? And any specific areas or technologies that you'd be interested in looking at?

知道了。最後，資產負債表上有超過 3 億美元的現金，加速了自由現金流的發展。您對併購的興趣有改變嗎？您有興趣關注哪些特定領域或技術？

I would say [ARPU sides] stays the same, obviously give us much more confidence when we're generating cash quarter over quarter. We're looking for the right timing. And I would tell you that the way we're looking at the DAP category is massive. So there is a lot of room to grow organically. But obviously, if we see interesting opportunities, this is a vehicle that we will use. And I would tell you that obviously, there was a big macro headwind. But now when we're seeing that quarter-over-quarter regenerating cash and we're profitable quarter over quarter, yes, it's changing a little bit the confidence and how we're looking at it. But there's nothing else that I can add in this moment.

我想說，[ARPU 方面] 保持不變，這顯然讓我們在逐季產生現金時更有信心。我們正在尋找合適的時機。我想告訴你，我們看待 DAP 類別的方式是巨大的。因此，有機成長的空間很大。但顯然，如果我們看到有趣的機會，這就是我們將使用的工具。我想告訴你，顯然存在著很大的宏觀阻力。但現在，當我們看到現金逐季再生並且逐季盈利時，是的，這正在一點點改變我們的信心和看待它的方式。但此刻我沒有什麼可以補充的。

All right. Thanks team.

好的。感謝團隊。

Thanks, Matt. Appreciate the questions.

謝謝，馬特。感謝您提出的問題。

Pat Walravens, JMP.

帕特·瓦爾拉文斯，JMP。

I know this is Austin Cole on for Pat. I appreciate you guys taking the question. So I wanted to ask about partners. So these GSIs are a big tailwind behind your business. I'm wondering, is there more that you guys can do to leverage your partners in 2024? And how can propel help you better manage those partners?

我知道這是奧斯汀·科爾（Austin Cole）替補帕特（Pat）。我很感謝你們提出這個問題。所以我想問一下合作夥伴。因此，這些 GSI 是您業務背後的一大推動力。我想知道，到 2024 年，你們還可以做更多的事情來利用你們的伴侶嗎？Propel 如何幫助您更好地管理這些合作夥伴？

Yeah, I'm happy to take that one. We absolutely believe there's more that we can do in the partner space, and we've got more than just the GSIs. Remember, we have a wide variety of partners styles. We have regional SIs that support us. We have our OEM relationships with SAP, for example. We have MSP relationships with other partners. So we're trying to address all of it with Propel.

是的，我很高興接受這個。我們絕對相信我們在合作夥伴領域可以做更多的事情，而且我們擁有的不僅僅是 GSI。請記住，我們有各種各樣的合作夥伴風格。我們有區域 SI 為我們提供支援。例如，我們與 SAP 建立了 OEM 關係。我們與其他合作夥伴建立了 MSP 關係。因此，我們正在嘗試透過 Propel 解決所有問題。

And Propel does two things for us. One, it streamlines the ability for us (technical difficulty) for clients and for them to be self-sufficient through the onboarding process. And it gives them visibility to the pipeline that they generate with us and the support they need from us. So this was something that was required. We needed to get it done. We spent a lot of time and effort on it. We're very pleased. But my plan for '24 is improved performance in the overall business and partners.

Propel 為我們做了兩件事。第一，它簡化了我們為客戶提供的能力（技術難度），並讓他們在入職流程中自給自足。這使他們能夠了解與我們合作的管道以及他們需要我們提供的支援。所以這是必需的。我們需要完成它。我們為此花費了大量的時間和精力。我們非常高興。但我的 24 年計畫是提高整體業務和合作夥伴的績效。

And then for '25, we have an eye to more revenue that is like touch. So an example would be the agreement that we have (technical difficulty) and the SAP guys. Concur does almost all of the marketing. Concur does all the selling. They do all the papering, and the deal, and they do the implementation (technical difficulty) we use that as a land to go try that (technical difficulty) sell plants to something else. But the revenue from that agreement is very light touch, and we're working on more of those kinds of relationships in 2024 with an eye to see more revenue that is light touch coming in for 2025. So hopefully, that gives you a feel for it.

然後在 25 年，我們專注於獲得更多收入，就像觸摸一樣。一個例子就是我們和 SAP 人員達成的協議（技術難度）。Concur 幾乎負責所有的行銷工作。Concur 負責所有銷售工作。他們負責所有的文件和交易，他們負責實施（技術難度），我們將其用作嘗試（技術難度）將植物出售給其他人的土地。但該協議帶來的收入非常輕量級，我們將在 2024 年建立更多此類關係，並希望在 2025 年看到更多輕量級收入。所以希望這能讓你感受到它。

Thank you.

謝謝。

Thanks for the question, Austin.

謝謝你的提問，奧斯汀。

Scott Berg, Needham.

史考特伯格，李約瑟。

Hi, everyone. This is Michael Rackers on for Scott. Thanks for taking my questions and congrats on the quarter. I was just wondering if you could double click on some of the go-to-market changes you talked about earlier and maybe how the Salesforce is adjusting to these changes? Has the sales energy improve since the shift or the change in strategy was initially announced? Thanks.

大家好。我是邁克爾·拉克斯 (Michael Rackers) 替補斯科特 (Scott)。感謝您回答我的問題並祝賀本季。我只是想知道您是否可以雙擊您之前談到的一些進入市場的變化，以及 Salesforce 如何適應這些變化？自最初宣布轉變或策略改變以來，銷售活力是否有所改善？謝謝。

Well, yeah, hey, listen, let me take it. I would tell you the energy is off the charts for us. It's rare when people who are not associated with sales come away from the sales kickoff saying, hey, I was really impressed with not only what was presented, but the energy and the focus for the sales kickoff. So for us, at the end of January, one of the best that I've ever participated in. So very pleased with that. And listen, it is not easy to do when you're making significant changes throughout the year and then those changes especially process changes, culminate at SKO announcements.

嗯，是的，嘿，聽著，讓我接受。我想告訴你，我們的能量是超乎想像的。很少有與銷售無關的人在銷售啟動後離開時說，嘿，我不僅對所展示的內容印象深刻，而且對銷售啟動的活力和專注印象深刻。所以對我們來說，在一月底，這是我參加過的最好的活動之一。對此非常滿意。聽著，當你全年做出重大改變，然後這些改變，尤其是流程改變，最終在 SKO 公告中達到頂峰時，這並不容易。

So -- plus some salespeople are pretty straightforward. They want to know what to sell. They want, make sure they got a good product to sell. They want to understand how they compete and then they want to be turned loose with a good complement to go make money. And I would tell you that that's what we did at our sales kickoff and that alignment with our counterparts in customer success and professional services and our (technical difficulty) team was really good.

所以——加上一些銷售人員非常直率。他們想知道要賣什麼。他們想要確保他們有好的產品可以銷售。他們想要了解自己如何競爭，然後他們想要透過好的補充來放鬆去賺錢。我想告訴你，這就是我們在銷售啟動時所做的，並且在客戶成功和專業服務方面與我們的同行以及我們的（技術難度）團隊的一致性非常好。

But to double-click on it for you, a couple of things that as I mentioned in my prepared remarks, first and foremost, we are moving workflow lead discovery and that workflow lead coordination to actually implementing for clients. It may seem obvious, but business is not have a problem that is related to a business workflow, order-to-cash, high fire, whatever it is, but we've always thought about it in terms of the applications that we support. But what do we know about our debt clients. Our debt clients are stickiest, they are most profitable, and they are largest in there that way for one and really, really important reason.

但是，為您雙擊它，正如我在準備好的發言中提到的幾件事，首先也是最重要的是，我們正在將工作流程領導發現和工作流程領導協調轉移到為客戶實際實施。這似乎是顯而易見的，但業務並不存在與業務工作流程、訂單到現金、高火力等相關的問題，但我們一直根據我們支援的應用程式來考慮它。但我們對債務客戶了解多少？我們的債務客戶是最黏性的，他們是最賺錢的，而且他們是最大的，這是有一個非常非常重要的原因的。

They sell business workflows that tenant across multiple applications. If you're sales organization, you're not just sells for shop, you probably got Clari or Gong or DealHub, or one of those other products. Oftentimes a handful of products involved in your order-to-cash front process. So we're good at both the automation and the real-time personalized support for workflows across multiple applications.

他們銷售跨多個應用程式租戶的業務工作流程。如果您是銷售組織，那麼您不僅僅是為商店進行銷售，您可能還擁有 Clari 、Gong 或 DealHub 或其他產品之一。通常，訂單到現金前端流程會涉及少數產品。因此，我們擅長為跨多個應用程式的工作流程提供自動化和即時個人化支援。

So we've always done it. We've got tons and tons of successful implementations, but we haven't talked to the client in that style. And it's really important not just to talk to the client in that style, but when we create our statements of work and we implement for the client. It's important to tie that back. So the client can easily understand the value that we're delivering for them.

所以我們一直都是這麼做的。我們已經有無數成功的實施案例，但我們還沒有以這種方式與客戶交談。不僅以這種方式與客戶交談非常重要，而且當我們建立工作說明書並為客戶實施時也很重要。把它綁起來很重要。因此，客戶可以輕鬆了解我們為他們提供的價值。

In places where we did really, really, really well. Look at partners, sorry, customers like Wells Fargo, we've talked about in the past. We were large clients and get (technical difficulty) from us. We just kind of did it naturally and organically, we didn't do it systemically. One of the major changes for us in 2024 is we're doing it systemically, and that's a function of the fact that I've got a great partner in [still stimulant active], who is helping (technical difficulty) with that transition from land to implementation, to that first set of reports that we've got a client up and running, and they're successful.

在我們做得非常非常好的地方。看看合作夥伴，對不起，像富國銀行這樣的客戶，我們過去談過。我們是大客戶，從我們這裡得到（技術難度）。我們只是自然地、有機地做到了這一點，我們並沒有系統地做到這一點。2024 年我們面臨的重大變化之一是我們正在系統地進行這件事，這是因為我在[仍然活躍]方面有一個很好的合作夥伴，他正在幫助（技術難度）從落地到實施，到我們已經讓客戶啟動並運行的第一組報告，他們是成功的。

Let's say you've got to have that good 360 view of the client, great on a chart, but you've got to operationalize it. And that's what we've done in the second half of the year. That's what we highlight and educated our teams on its sales kickoff. And that's why we're so excited about those changes coming into '24 because that heavy work is behind us. And now it's kind of the more straightforward stuff. We just got to go sell. Hopefully, that makes sense for you.

假設您必須擁有良好的客戶 360 度視圖，在圖表上表現出色，但您必須將其付諸實施。這就是我們下半年所做的事情。這就是我們在銷售啟動時所強調和教育我們的團隊的內容。這就是為什麼我們對 24 世紀的這些變化如此興奮，因為繁重的工作已經過去了。現在是更簡單的事了。我們只好去賣了。希望這對你有意義。

Absolutely. Thanks so much.

絕對地。非常感謝。

Thank you for the question, Michael, and that (technical difficulty) our Q&A section.

感謝您提出問題，邁克爾，以及我們的問答部分（技術難度）。

Thank you, everybody, for the questions. And now I will turn it back over to Dan Adika for closing remarks.

謝謝大家的提問。現在我將把它轉回給丹·阿迪卡（Dan Adika）做總結發言。

Dan, the floor is yours.

丹，地板是你的。

Thanks, John. So as I said in my script, I want to thank our employees for amazing execution 2023, moving from losing over $50 million in 2022 to generating over $10 million in 2023. That's absolutely amazing. So guys, I know you're hearing us, so thank you.

謝謝，約翰。正如我在劇本中所說，我要感謝我們的員工在 2023 年的出色執行力，從 2022 年的損失超過 5000 萬美元，到 2023 年的盈利超過 1000 萬美元。這絕對是驚人的。夥計們，我知道你們在聽我們的講話，所以謝謝你們。

And obviously for customers, investors, partners, thank you for the support and believe in our vision. And thank you for everyone who joined the call and participated. See you next quarter.

顯然，對於客戶、投資者、合作夥伴，感謝你們的支持和對我們願景的信任。感謝所有加入電話會議並參與的人。下季見。