Walkme Ltd (WKME) 2024 Q1 法說會逐字稿

Good morning, and thank you for joining the Walkme first-quarter 2024 earnings call. I'm John Streppa Investor Relations for Walkme, and today I'm joined by Dan Adika, CEO and Co-Founder; Scott Little, Chief Revenue Officer; and Hagit Ynon, Chief Financial Officer.

早安，感謝您參加 Walkme 2024 年第一季財報電話會議。我是 Walkme 投資者關係部的 John Streppa，今天我的執行長兼聯合創辦人 Dan Adika 也加入了。 Scott Little，首席營收長；哈吉特‧伊農 (Hagit Ynon)，財務長。

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. I encourage you to go to our IR website, ir.walkme.com to watch live or replay, which will be available following the conclusion of our presentation.

在我們開始一些家務用品之前。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。我鼓勵您訪問我們的 IR 網站 ir.walkme.com 觀看直播或重播，該網站將在我們的演示結束後提供。

Second for the Q&A portion of the call following our prepared remarks. (Operator Instructions). Certain statements we make today may constitute forward-looking statements and information within the meaning of Section 27 A of the Securities Act of 1933, Section 21 E 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.

接下來是我們準備好的講話之後的電話問答部分。（操作員說明）。我們今天所做的某些陳述可能構成 1933 年《證券法》第 27 A 條、1934 年《證券交易法》第 21 E 條以及美國私人證券訴訟改革安全港條款含義內的前瞻性陳述和信息1995年法案，涉及我們當前的期望和對未來事件的看法。

These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. 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 18, 2024, and other documents filed with or furnished to the SEC. See our press release dated May 22, 2024 for additional information.

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。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 20F 表格年度報告中標題為「風險因素」的部分中列出的因素。 2024 年3 月18 日，以及向SEC 提交或提供的其他文件。如需了解更多信息，請參閱我們於 2024 年 5 月 22 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 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.

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。

We believe that these measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to key metrics used by management and its financial and operational decision-making.

我們相信，這些措施提供了有關我們經營業績的有用信息，增強了對過去財務業績和未來前景的整體了解，並提高了管理層使用的關鍵指標及其財務和營運決策的透明度。

Further, throughout this call, we 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 May 22, 2024.

此外，在整個電話會議中，我們提供了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 5 月 22 日的新聞稿。

With that, I'll hand it over to Dan.

這樣，我就把它交給丹了。

Thank you, John, and good morning, everyone. We're off to a great start in 2024. We're seeing strong execution across our strategic priorities to accelerate our top line growth. We ended the first quarter with revenue of $68.6 million, which is the high end of our guidance range and a strong expense management with a non-GAAP operating margin of 6%.

謝謝約翰，大家早安。2024 年我們將迎來一個好的開始。我們看到我們的策略重點得到了強有力的執行，以加速我們的營收成長。第一季末，我們的收入為 6860 萬美元，這是我們指導範圍的高端，費用管理強勁，非 GAAP 營業利潤率為 6%。

We generated nearly $17 million in free cash flow in the first quarter alone, which was more than all of 2023 combined and nearly double what we generated in the fourth quarter. We laser focused on delivering the best experience to our customers. We're seeing a very positive trend on all aspects in our customer journey.

光是第一季我們就產生了近 1700 萬美元的自由現金流，比 2023 年全年的總和還要多，幾乎是第四季的兩倍。我們專注於為客戶提供最佳體驗。我們在客戶旅程的各個方面都看到了非常積極的趨勢。

The first quarter marked the biggest renewal quarters in terms of ARR up for renewal. And I'm happy to share that we had our best renewal rate in the past six quarters. We improved our quality of service in every aspect from support to service quality through our customer success organization. And this also shows in our large customer base.

就續約 ARR 而言，第一季是最大的續約季度。我很高興與大家分享，我們在過去六個季度中取得了最好的續訂率。透過我們的客戶成功組織，我們在從支援到服務品質的各個方面提高了服務品質。這也體現在我們龐大的客戶群上。

We now have 42 customers paying us over $1 million in ARR, and we are seeing customers in that cohort expanding with us. Our adopt and over 100K ARR customers. Although we did not demonstrate an increasing number of customers and some of it was due to account consolidation in our system and some of consolidation on their side.

現在，我們有 42 位客戶向我們支付了超過 100 萬美元的 ARR，我們看到群體中的客戶正在與我們一起擴大。我們擁有超過 10 萬 ARR 客戶。儘管我們沒有顯示出客戶數量的增加，其中一些是由於我們系統中的帳戶合併以及他們方面的一些合併所致。

But overall, the total ARR for both segments grew as we continue to see big expansions. We are accelerating growth and we are on track to double net new ARR by the end of the year. I'm very pleased with our performance this quarter as we are continuing on our path to delivering on our plan. In addition, gen-AI has created a huge growth opportunity for Walkme.

但總體而言，隨著我們繼續看到大規模擴張，這兩個細分市場的總 ARR 都在成長。我們正在加速成長，並預計在年底前將淨新 ARR 翻一番。我對我們本季的表現非常滿意，因為我們正在繼續實現我們的計劃。此外，gen-AI也為Walkme創造了巨大的成長機會。

As innovators were strengthening our position as a critical platform for organizations to successfully implement gen-AI into their most critical workflows. I spent the last few months speaking with our leading customers and learning their approach to gen-AI. They recognize the huge opportunity and change in the market.

隨著創新者不斷加強我們作為組織成功將 gen-AI 實施到最關鍵工作流程中的關鍵平台的地位。在過去的幾個月裡，我與我們的主要客戶進行了交談，以了解他們的 gen-AI 方法。他們認識到市場的巨大機會和變化。

Enterprises are rushing to infuse gen-AI in every junction of every workflow. The success and scale of AI transformation will be the success of inserting gen-AI capabilities into the daily processes of every single employee right in the flow of work. BCG is telling their clients that 70% of their AI efforts need to go into change management and process related to people.

企業正爭先恐後地將人工智慧融入每個工作流程的每個環節。人工智慧轉型的成功和規模將取決於將人工智慧能力成功插入每個員工的日常流程中的工作流程。BCG 告訴他們的客戶，他們 70% 的人工智慧工作需要進入與人員相關的變革管理和流程。

Think about it for a second. In order to truly make gen-AI work for employees. They have to know what AI can do for them and it's capabilities. How to build the right prompt to get what they need and they have to know when and where to use it and how it fits to their daily workflows. This is just too complex. If organization wants to get gen-AI in front of all of their employees, they must find the path to success. And that path is to be contextual in the flow of work and make AI seamless for the employees.

想一想。為了真正讓gen-AI為員工服務。他們必須知道人工智慧可以為他們做什麼以及它的功能。如何建立正確的提示來獲取他們需要的東西，他們必須知道何時何地使用它以及它如何適合他們的日常工作流程。這太複雜了。如果組織希望讓所有員工都看到人工智慧，他們就必須找到成功之路。這條道路就是與工作流程結合，讓人工智慧對員工來說是無縫的。

With that, I'm very proud to introduce Walkme X. Walkme's new gen-AI contextual copilot. It's a completely new experience for the employee in the enterprise. Walkme X allow them to use gen-AI capabilities in the flow of work on top of any workflow. We've combined the power of general-purpose (inaudible) with our proprietary DeepUI technology that understand visual interface like a human data.

至此，我非常自豪地向您介紹 Walkme X。這對企業員工來說是一種全新的體驗。Walkme X 讓他們在任何工作流程之上的工作流程中使用 gen-AI 功能。我們將通用功能（聽不清楚）與我們專有的 DeepUI 技術相結合，該技術可以像人類數據一樣理解視覺介面。

And we created a new kind of copilot and always on copilot that offers proactive AI assistant contextually in the flow of work. We're basically making AI rule for everyone. Walkme X offer AI powerful capabilities such as AI answers, assistant reading, generated writing, for validation and text to action automations that only Walkme can deliver across any application.

我們創建了一種新型副駕駛，並且始終在副駕駛中，在工作流程中提供主動的人工智慧助理。我們基本上是在為每個人制定人工智慧規則。Walkme X 提供強大的人工智慧功能，例如人工智慧答案、輔助閱讀、生成寫作、驗證和文字到操作自動化，只有 Walkme 才能在任何應用程式中提供這些功能。

Walkme X can also work with any other copilot service. We believe that every company in the world need Walkme X to ensure the success of their gen-AI strategy. We've started using Walkme X internally and it's showing improvement in our support and IT departments. We're now exposing it to select few customers and exploring endless use cases together.

Walkme X 也可以與任何其他副駕駛服務搭配使用。我們相信世界上每家公司都需要 Walkme X 來確保其 gen-AI 策略的成功。我們已開始在內部使用 Walkme X，它在我們的支援和 IT 部門中顯示出改進。我們現在將其展示給少數客戶，並一起探索無盡的用例。

As you can hear, I'm very excited about Walkme X and about the future of Walkme. For 12 years, we've been building thousands of copilot experiences on top of the best enterprise application and now gen-AI is open so many new use cases and so many new possibilities for us. Walkme X and AI transformation will be huge expansion growth drivers for our business in the future quarters.

正如您所聽到的，我對 Walkme X 以及 Walkme 的未來感到非常興奮。12 年來，我們一直在最好的企業應用程式之上建立了數千種副駕駛體驗，現在 gen-AI 為我們開放瞭如此多的新用例和如此多的新可能性。Walkme X和人工智慧轉型將成為我們未來幾季業務擴張的巨大成長動力。

We're officially launching Walkme X realize our annual customer and partner event on June 18. But we're not stopping here. For years, we've had the best attendant contextual automation. Thanks to our DeepUI technology. And now we're adding back in automation as well. Walkme will be the only dark in the market to offer full attendant and unattendant automation baked right into the platform. This opens up a completely new dimension of use cases for our customers. They can now create workflows that will trigger backend action aside with UI actions, a full automation experience.

我們將於 6 月 18 日正式啟動 Walkme X 年度客戶和合作夥伴活動。但我們不會就此止步。多年來，我們擁有最好的上下文自動化。感謝我們的 DeepUI 技術。現在我們也重新增加了自動化。Walkme 將是市場上唯一一款在平台中提供完全有人值守和無人值守自動化的產品。這為我們的客戶開啟了一個全新的用例維度。他們現在可以建立工作流程，除了 UI 操作之外，還會觸發後端操作，這是一種完全自動化的體驗。

With our focus on people first, our contextual DeepUI technology, gen-AI capabilities and now back-end automation, we are strongly positioned to disrupt the hyper automation in RPA market. Stay tuned for upcoming releases as we start incorporating these capabilities into our platform.

憑藉我們以人為本、上下文 DeepUI 技術、gen-AI 功能以及現在的後端自動化，我們有能力顛覆 RPA 市場的超級自動化。當我們開始將這些功能整合到我們的平台中時，請繼續關注即將發布的版本。

Overall, Q1 has been the perfect kickoff to what will be a very important year for Walkme. We have so much innovation rolling out now and with a very strong balance sheet, we are making strategic investment and I'm sure our powerful technology will forever change the way gen-AI and automation are operated in the enterprises.

總體而言，第一季是 Walkme 非常重要的一年的完美開端。我們現在推出瞭如此多的創新，並且擁有非常強大的資產負債表，我們正在進行戰略投資，我相信我們強大的技術將永遠改變企業中的人工智慧和自動化運作方式。

From quarter-to-quarter, it's becoming much more clear to me that the opportunities for Walkme are endless. We are driving the adoption of new technologies and powering them with automation, data and new experiences. We are laser focused on accelerating growth and doubling net (inaudible) ARR in 2024. That is our main KPI for 2024.

隨著季度的變化，我越來越清楚 Walkme 的機會是無窮無盡的。我們正在推動新技術的採用，並透過自動化、數據和新體驗為其提供動力。我們專注於加速成長並在 2024 年將淨（聽不清楚）ARR 翻倍。這是我們 2024 年的主要 KPI。

The company is producing cash and committing to making the necessary investment needed to accelerate performance. We already move 25% of R&D to focus on our AI product and we'll be investing in acquisition of additional AI talent and functionality.

該公司正在產生現金，並承諾進行必要的投資以提高業績。我們已經將 25% 的研發重點轉移到我們的 AI 產品上，我們將投資收購更多的 AI 人才和功能。

This past few quarters have been a big transformation journey for Walkme. We tackled every process and every challenge and prove that we are a strong and resilient company that is highly adaptable to change. I want to take this opportunity to thank our employees for all their hard work and amazing execution. We're truly one Walkme.

過去幾季對 Walkme 來說是一次重大轉型之旅。我們解決了每一個流程和每一個挑戰，並證明我們是一家強大且有彈性的公司，能夠高度適應變化。我想藉此機會感謝我們的員工的辛勤工作和出色的執行力。我們確實是一體的 Walkme。

And with that, I hand it over to Scott to discuss our go-to-market.

就這樣，我將其交給斯科特討論我們的上市事宜。

Thanks, Dan, and good morning, everyone. I am pleased with the progress we made in the first quarter, executing against our plan and making another step towards our goal to double net new ARR in 2024. We had a good quarter across the organization with strength in our partner, public sector and enterprise businesses as planned.

謝謝丹，大家早安。我對我們在第一季度取得的進展感到高興，我們執行了我們的計劃，並朝著 2024 年淨新 ARR 翻倍的目標又邁出了一步。我們整個組織的季度表現良好，我們的合作夥伴、公共部門和企業業務按計劃保持強勁。

Last quarter, we highlighted the change in our go-to-market approach by leading with workflows and bringing the ROI that our platform delivers into the conversation across the life cycle of our customers from presales to implementation to customer success. Customer value and ROI are the common themes as we focus on the workflows that organizations use to execute the business.

上個季度，我們強調了進入市場方法的變化，以工作流程為主導，並將我們的平台提供的投資回報率納入客戶從售前到實施再到客戶成功的整個生命週期的對話中。客戶價值和投資報酬率是共同主題，因為我們專注於組織用於執行業務的工作流程。

Our sales force is engaged and enthusiastic about how this is resonating with our customers and performing throughout the sales cycle. We are very excited about the expansion opportunities we have in front of us as we're increasing the reach of our platform and meeting our customers where they are seeing the biggest friction within their organizations.

我們的銷售團隊積極參與並熱衷於這如何與我們的客戶產生共鳴並在整個銷售週期中發揮作用。我們對擺在我們面前的擴展機會感到非常興奮，因為我們正在擴大我們平台的覆蓋範圍，並在客戶看到組織內最大摩擦的地方與他們會面。

Walkme X is a fantastic opportunity as workflows are increasingly reengineered to include AI in the updated tech stack. Our capability to deliver context for a customer across their application environments is unique to Walkme. This innovative approach to UI recognition using our patented DeeppUI technology is amazing, and I've never been more excited about the opportunity in front of us.

Walkme X 是一個絕佳的機會，因為工作流程越來越多地重新設計，以將人工智慧納入更新的技術堆疊中。我們在客戶的應用程式環境中提供上下文的能力是 Walkme 所獨有的。這種使用我們的 DeeppUI 專利技術進行 UI 識別的創新方法令人驚嘆，我對眼前的機會感到前所未有的興奮。

On the partner front, the alliance and channels team continues to improve and impress. I'm pleased to share that we've added Cognizant as a certified Walkme partner. With their global reach, I'm confident this partnership will yield fast results and value. We continue to see growth in the number of our partner employees that are being trained to sell and deliver our platform, which is a great leading indicator of the demand that they are seeing in the market.

在合作夥伴方面，聯盟和通路團隊不斷改進並給人留下深刻印象。我很高興地告訴大家，我們已將 Cognizant 加入為經過認證的 Walkme 合作夥伴。憑藉其全球影響力，我相信這種合作關係將快速產生成果和價值。我們繼續看到接受培訓以銷售和交付我們平台的合作夥伴員工數量不斷增長，這是他們在市場上看到的需求的一個重要領先指標。

To highlight this point, we recently learned from one of our global SIs that nearly one-third of all RFPs they are now receiving include a digital adoption platform as part of the requirement. On the public sector side, we had a great quarter, which included a number of expansions, as well as a very important land with the State of California DMV, likely a welcome sign for those of you who drive a vehicle in California.

為了強調這一點，我們最近從一家全球 SI 獲悉，他們目前收到的所有 RFP 中近三分之一都將數位採用平台作為要求的一部分。在公共部門方面，我們度過了一個很棒的季度，其中包括一些擴建，以及與加州DMV的非常重要的土地，這對於那些在加州開車的人來說可能是一個受歡迎的跡象。

We continue to grow our pipeline from both new business and existing expansions, and we're well positioned to execute on our growth goals in 2024. In the quarter, we added new customers such as Ithaka Harbors, Aptean and Shift4 Payments, while expanding our relationships with great customers like the Department of Veteran Affairs, National Marrow Donor Program and TPG Telecom limited.

我們繼續透過新業務和現有擴張來拓展我們的產品線，並且我們已做好充分準備來實現 2024 年的成長目標。本季度，我們增加了 Ithaka Harbors、Aptean 和 Shift4 Payments 等新客戶，同時擴大了與退伍軍人事務部、國家骨髓捐贈計劃和 TPG Telecom Limited 等大客戶的關係。

As they continue to see the value and ROI of our platform directly impacting their business and driving the adoption of their workflows. I'm incredibly proud of the team and the progress we've made.

他們繼續看到我們平台的價值和投資回報率直接影響他們的業務並推動他們工作流程的採用。我為我們的團隊和我們所取得的進步感到無比自豪。

With that, I'll hand it over to Hagit to review our financials.

這樣，我將把它交給 Hagit 來審查我們的財務狀況。

Thank you, Scott, and good morning, everyone. I'm pleased with the result of the first quarter as we continue to improve our business model, generating nearly $17 million in free cash flow and a non-GAAP operating margin of 6%, while achieving the high end of our revenue guidance range. We continue to focus on growth drivers as we move ahead into the year and make necessary investments required.

謝謝你，斯科特，大家早安。我對第一季的業績感到滿意，因為我們繼續改進我們的業務模式，產生近 1700 萬美元的自由現金流和 6% 的非 GAAP 營運利潤，同時實現了我們收入指導範圍的高端。進入新的一年，我們將繼續專注於成長動力並進行必要的投資。

We expect Q1 to be the low point of our revenue growth on a year-over-year basis as we focus on accelerating our net new ARR throughout 2024 into 2025. Our innovations in AI will be a catalyst for future growth opportunities over time. Gen-AI continues to attract increased IT investment within our enterprise customer base. And with Walkme X they can ensure ROI from the technology investments.

我們預計第一季將是我們營收年增的最低點，因為我們專注於加速 2024 年至 2025 年的淨新 ARR。隨著時間的推移，我們在人工智慧方面的創新將成為未來成長機會的催化劑。Gen-AI 繼續在我們的企業客戶群中吸引更多的 IT 投資。透過 Walkme X，他們可以確保技術投資的投資報酬率。

With that, let's turn to the numbers. I would like to note that when discussing gross margin, operating expenses, operating income, net income and free cash flow, I will be referring to non-GAAP numbers. Our total revenue for the first quarter was $68.6 million at the high end of our guidance range. We grew subscription revenue for the quarter by 6% year-over-year with a subscription gross margin of 90.7%, a new high.

接下來，讓我們轉向數字。我想指出的是，在討論毛利率、營業費用、營業收入、淨利潤和自由現金流時，我將指的是非公認會計原則數字。我們第一季的總收入為 6860 萬美元，處於指導範圍的上限。本季我們的訂閱營收年增 6%，訂閱毛利率達到 90.7%，再創新高。

We are pleased with this best-in-class gross margin level. Our professional services revenue for Q1 was $4.1 million, slightly below our plan, but in line with our internal partner strategy and the shift to outcome-based project. We are forecasting a similar level of PS revenue in the coming quarters. PS gross margin was 20% in Q1, a significant improvement from a nearly breakeven in the first quarter last year, driven by better workforce utilization.

我們對這種一流的毛利率水準感到滿意。我們第一季的專業服務收入為 410 萬美元，略低於我們的計劃，但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。我們預計未來幾季的 PS 收入將達到類似水準。由於勞動利用率提高，第一季 PS 毛利率為 20%，較去年第一季接近損益平衡有了顯著改善。

Our total gross margin for Q1 was 86.5%, up from 82.8% in Q1 of last year. Gross profit was $59.3 million, up 9% year-over-year. For Q1 OpEx, we outperformed our initial plan, largely driven by employee-related cost, additional efficiencies and a onetime saving in G&A that we expect will not occur again in second quarter. We are committed to invest in our future growth opportunities as we balance our profitability with accelerating growth opportunities.

我們第一季的總毛利率為 86.5%，高於去年第一季的 82.8%。毛利為 5,930 萬美元，年增 9%。對於第一季的營運支出，我們的表現超出了最初的計劃，這主要是由於員工相關成本、額外效率以及一般管理費用的一次性節省，我們預計第二季不會再出現這種情況。我們致力於投資未來的成長機會，平衡獲利能力與加速成長機會。

R&D expenses were $10.2 million, representing 15% of revenue in line with last quarter. We continue to invest in our core platform, strategic data products and AI capabilities, including additional talent to support our AI initiatives. Sales and marketing expenses were $36 million or 53% of revenue, an improvement from 60% in Q1 of last year. We believe that we are well resourced for the near-term growth opportunities, and we look to add additional headcounts in the coming quarters.

研發費用為 1,020 萬美元，佔營收的 15%，與上季持平。我們繼續投資我們的核心平台、戰略數據產品和人工智慧能力，包括支援我們的人工智慧計畫的額外人才。銷售和行銷費用為 3,600 萬美元，佔收入的 53%，比去年第一季的 60% 有所改善。我們相信，我們擁有充足的資源來應對近期的成長機會，並且我們希望在未來幾季增加更多員工。

G&A expenses were $8.7 million or 13% of revenue, down from 14% in Q4 and below the 18% in Q1 last year. We believe that our G&A expenses will return to a similar level of Q4 as we benefited from better than anticipated collections and other one-time savings that we do not expect to repeat going forward.

G&A 費用為 870 萬美元，佔營收的 13%，低於第四季的 14%，也低於去年第一季的 18%。我們相信，我們的一般管理費用將恢復到與第四季度類似的水平，因為我們受益於好於預期的收款和其他一次性節省，我們預計未來不會重複這種情況。

Q1 operating income was $4.4 million or 6.4% of revenue, an improvement from a loss of $8.8 million or negative 13% in Q1 last year. Net income for the quarter attributed to Walkme was $6.9 million or 10% of revenues compared to a loss of $6.7 million or negative 10% of revenue in Q1 last year. Net income per share for the quarter was $0.07 using $96.6 million, fully diluted weighted average shares outstanding compared to a loss of $0.08 in Q1 of last year.

第一季營業收入為 440 萬美元，佔營收的 6.4%，較去年第一季虧損 880 萬美元或負 13% 有所改善。Walkme 本季淨利為 690 萬美元，佔營收的 10%，去年第一季虧損 670 萬美元，佔營收的負 10%。使用 9,660 萬美元的完全稀釋加權平均流通股計算，本季每股淨利潤為 0.07 美元，而去年第一季虧損 0.08 美元。

In Q1, we generated $16.6 million in free cash flow, an improvement from the cash burn of $8.3 million in Q1 last year. Our free cash flow margin for the quarter was 24% compared to a negative of 13% last year. On free cash flow, we benefited from seasonality and strong collections that were well ahead of our expectations.

第一季度，我們產生了 1,660 萬美元的自由現金流，比去年第一季 830 萬美元的現金消耗有所改善。本季我們的自由現金流利潤率為 24%，而去年為負值 13%。在自由現金流方面，我們受益於季節性和強勁的產品系列，遠遠超出了我們的預期。

Going forward, we will continue to generate cash, but not at these levels. For the full year, including our results for the first quarter, we expect to be ahead of our original plan. We ended the quarter with $340 million in cash, cash equivalent, short-term deposits and marketable securities. We continue to explore opportunities to deploy our capital in ways that can help to accelerate our growth.

展望未來，我們將繼續產生現金，但不會達到目前的水平。對於全年，包括第一季的業績，我們預計將提前於原計劃。截至本季末，我們擁有 3.4 億美元的現金、現金等價物、短期存款和有價證券。我們繼續探索以有助於加速我們成長的方式部署資本的機會。

Turning now to guidance. We are pleased with the progress in the first quarter, and we believe we have turned the corner on our year-over-year revenue growth. We remain committed to increase growth throughout 2024 and expect our subscription revenue to be higher for the remainder of the year compared to what we saw in the first quarter.

現在轉向指導。我們對第一季的進展感到滿意，我們相信我們已經扭轉了同比收入成長的局面。我們仍然致力於在 2024 年全年實現成長，並預計今年剩餘時間內的訂閱收入將高於第一季的水準。

Given our outperformance in the first quarter and expectation that we will see some improvement in operating leverage throughout the year. We are raising our full year operating income guidance. For the second quarter, we expect revenue in a range of $69 million to $70 million and a non-GAAP operating income in the range of $2.3 million to $3.3 million.

鑑於我們第一季的優異表現以及預計全年營運槓桿率將有所改善。我們正在提高全年營業收入指引。我們預計第二季營收將在 6,900 萬美元至 7,000 萬美元之間，非 GAAP 營業收入將在 230 萬美元至 330 萬美元之間。

For the full year of 2024., we expect revenue in the range of $279 to $283 million, and we are raising our non-GAAP operating income guidance to a range of $12.5 million to $15 million.

對於 2024 年全年，我們預計收入在 279 美元至 2.83 億美元之間，並將非 GAAP 營業收入指引提高至 1,250 萬美元至 1,500 萬美元。

Thank you, and now we will take your questions.

謝謝您，現在我們將回答您的問題。

We will now turn to the Q&A portion of the call. (Operator Instructions)

我們現在將轉向電話會議的問答部分。（操作員說明）

Scott Berg, Needham, followed by Josh Baer, Morgan Stanley.

伯格（Scott Berg），李約瑟（Needham），其次是喬許貝爾（Josh Baer），摩根士丹利（Morgan Stanley）。

Hi, everyone. Nice quarter. Thanks for taking my questions. I guess a question for either Dan or Scott. Your quarter into the year and certainly sound more positive or at least more convicted on your ability to get to your ARR goals to double that on a year-over-year basis.

大家好。不錯的季度。感謝您回答我的問題。我想這個問題要問丹或史考特。您在今年的季度中肯定聽起來更加積極，或者至少對您實現 ARR 目標（同比翻倍）的能力更有信心。

I guess, how do we think of the composition of that ARR this year versus maybe prior years? Is it more balanced towards net new customers, your cross-sell expansion? Is it, I guess, customers on the 100 k cohort or maybe 1000K cohort. Any maybe additional color on what that looks like this year? Would be helpful. Thank you.

我想，與往年相比，我們如何看待今年 ARR 的組成？您的交叉銷售擴張對於淨新客戶是否更加平衡？我猜，是 10 萬個隊列中的客戶，還是 100 萬個隊列中的客戶。今年的情況還有什麼額外的色彩嗎？會有幫助的。謝謝。

Sure, I will start and Scott feel free to add. So, I think keep similar, I would say trends, mainly we're seeing expansions, big expansions with that customer and with existing customers. We do have obviously new logos that we're adding in. But with the new offerings that we're adding and obviously with the promise of DAP, we are focusing a lot with our existing customers and focusing on large enterprises. So, that's the result that we're seeing. Obviously, as Scott mentioned, partner and fab, this is another engine that we're starting to see coming in the past few quarters.

當然，我會開始，史考特也可以隨時補充。因此，我認為保持類似的趨勢，主要是我們看到了該客戶和現有客戶的擴張、大規模擴張。我們確實添加了明顯的新徽標。但隨著我們添加的新產品以及 DAP 的承諾，我們將專注於現有客戶以及大型企業。這就是我們看到的結果。顯然，正如合作夥伴和晶圓廠斯科特所提到的，這是我們在過去幾季開始看到的另一個引擎。

Yes, here is my comment. Scott, we were executing against the plan that we put in place and the plans working. So, for me, we're an upmarket enterprise play. And I think the tenor of the revenue will be in line with what we've been saying for the last year or so. Having on expansions, but we are not walking away from new client acquisition.

是的，這是我的評論。斯科特，我們正在按照我們制定的計劃執行，並且計劃正在發揮作用。所以，對我來說，我們是一家高端企業公司。我認為收入的期限將與我們去年左右所說的一致。雖然我們正在進行擴張，但我們並不會放棄新客戶的取得。

Look at what we did at the state of California. That was a big win for us in a big state. And in the public sector business. I tend to talk a lot about fed, and I am very proud of the fed business. But gosh, we've had a nice uptick in the last couple of quarters in the other portion of our public sector for state and local and that's really encouraging for us. So, we will get new logos, but they'll come in the areas that we've been planning and most of the revenue, most of the strength has been in expansions.

看看我們在加州做了什麼。對我們這個大州來說，這是一場巨大的勝利。以及公共部門業務。我傾向於談論很多關於聯準會的事情，我對聯準會的業務感到非常自豪。但是天哪，過去幾季我們州和地方公共部門的其他部分取得了不錯的成長，這對我們來說確實令人鼓舞。因此，我們將獲得新的徽標，但它們將出現在我們一直在計劃的領域，並且大部分收入、大部分實力都來自於擴張。

Very good. Helpful. And then Hagit to know your net revenue retention number is a trailing 12-month metric ticked down at one point in the quarter. Does it trough out here in Q1, Q2? Or how do we think about that metric here through the balance of the year?

非常好。有幫助。然後 Hagit 會知道你的淨收入保留數字是一個在本季某個時間點下降的追蹤 12 個月指標。第一季、第二季是否已經觸底？或者我們如何在今年剩下的時間裡考慮這個指標？

Yes, I will take you through. As I said, we had our best renewal rate quarter and obviously we are showing for trend quarter. So, yes, we think it's going to start picking up. As Hagit mentioned, we feel that we've turned the corner in almost every metric. And that's something that we'll see as you know, and we said in previous quarter, Q1 '23 was our lowest quarter in terms of on renewals.

是的，我會帶你過去。正如我所說，我們有最好的續訂率季度，顯然我們正在展示趨勢季度。所以，是的，我們認為它將會開始回升。正如哈吉特所提到的，我們認為我們幾乎在每個指標上都已經扭轉了局面。如您所知，這是我們將看到的事情，我們在上一季說過，23 年第一季是我們續訂量最低的季度。

And this was our best quarter in terms of renewal, not just percentage-wise, but also the size of up for renewal was, I would say by far the biggest that we have so far in the company. So, we are very pleased with the performance.

這是我們在續約方面表現最好的季度，不僅是百分比，而且續約的規模也是我們公司迄今為止最大的季度。所以，我們對這次的表現非常滿意。

Excellent. Thank you. Congrats again.

出色的。謝謝。再次恭喜。

Thanks, Scott.

謝謝，斯科特。

Thank you, Scott. Josh Baer, Morgan Stanley, followed by Pat Walravens, JMP.

謝謝你，斯科特。摩根士丹利的 Josh Baer，JMP 的 Pat Walravens。

Okay, great. One for Dan and then a follow-up for Hagin. Dan, I was just hoping you could talk a little bit about the competitive landscape specifically for Walkme X further copilot. Like what else are you seeing out there and how is Walkme position?

好的，太好了。丹的一部，哈金的後續一部。Dan，我只是希望你能專門談談 Walkme X 進一步副駕駛的競爭格局。例如你還看到了什麼？

Yes, so, obviously, this is a new product that as I said, we're launching it. From our research, we didn't see something that comes near to it. It's a new approach that basically, I would say, combine the Walkme capabilities with the general elements. So, this is something new. As we said, we're not going to be LLM, even though we are offering our own AI answers product.

是的，很明顯，這是一個新產品，正如我所說，我們正在推出它。從我們的研究來看，我們沒有看到任何接近它的東西。我想說，這是一種新方法，基本上將 Walkme 功能與一般元素結合。所以，這是新事物。正如我們所說，即使我們提供自己的人工智慧答案產品，我們也不會成為法學碩士。

We are coming from a different approach, which is how we can make it contextual in the flow of work to the employee. And this is something that is very unique to Walkme. We didn't see anything like that in the market. And when I talk with our customers and talk with many people that you know, leading the AI and being enterprises, but they are very excited with what we have.

我們採用了不同的方法，這就是我們如何將其融入員工的工作流程中。這也是 Walkme 非常獨特的一點。我們在市場上沒有看到類似的東西。當我與我們的客戶以及你們認識的許多領導人工智慧並成為企業的人交談時，他們對我們所擁有的感到非常興奮。

We are already rolled out with new customers and ourselves internally. So, this is why we're super excited. And currently, we didn't see anything like it in the market.

我們已經在內部向新客戶和我們自己推出了。所以，這就是我們非常興奮的原因。目前，我們在市場上沒有看到類似的東西。

Great. Thanks, Dan. And Hagit, obviously great free cash flow generation and you made some comments. Can you remind us on the seasonality of free cash flow? How to think about that for the rest of the year, but then also on how free cash flow margin should trend generally relative to operating income margin? Thank you.

偉大的。謝謝，丹。Hagit，顯然自由現金流的產生非常好，你發表了一些評論。您能提醒我們自由現金流的季節性嗎？如何考慮今年剩餘時間的情況，以及自由現金流利潤率相對於營業收入利潤率的整體趨勢如何？謝謝。

Hi, Josh. So, the free cash, yes, we had a great cash flow with 24% margin for the quarter. On seasonality perspective, Q1 is, we are actually enjoying from the strength in collection in Q1. And also with the outperformance in the operating income.

嗨，喬許。所以，自由現金，是的，我們的現金流量很大，本季利潤率為 24%。從季節性角度來看，第一季我們實際上正在享受第一季的收藏實力。而且營業收入也表現優異。

We are not expecting to maintain the same level in the coming quarters. We will continue to generate cash. But for the full year, I can tell you that we see an improvement in the free cash flow margin compared to our original plan.

我們預計未來幾季不會保持相同水準。我們將繼續產生現金。但就全年而言，我可以告訴您，與我們最初的計劃相比，我們看到自由現金流利潤率有所改善。

Great. Thank you.

偉大的。謝謝。

Great. Thank you, Josh.

偉大的。謝謝你，喬許。

Pat Walravens followed by Michael Berg.

帕特·瓦爾拉文斯 (Pat Walravens) 緊隨其後的是邁克爾·伯格 (Michael Berg)。

Hey there this is Austin on for Pat. I was hoping maybe you could just touch on Dan, the adoption of the Discovery product and shadow AI and the interest that you're seeing in those products? Thanks.

嘿，這是奧斯汀為帕特代言的。我希望您能談談 Dan，Discovery 產品和影子人工智慧的採用以及您對這些產品的興趣？謝謝。

Sure. So, one some of it is baked to our offering. And as we mentioned before, we're seeing more and more employees using it. So, overall, it's good progression. We're seeing it as part of DAP and not necessarily a standalone. So, we're happy with what we're seeing.

當然。因此，其中的一部分被烘焙到我們的產品中。正如我們之前提到的，我們看到越來越多的員工使用它。所以，總的來說，這是一個很好的進步。我們將其視為 DAP 的一部分，而不一定是獨立的。所以，我們對所看到的感到滿意。

Obviously we're rolling out more, more and more feature, but we don't have numbers for specific product line as this is something that is more baked as a module into our pricing. But overall, we're very pleased with that. So--

顯然，我們正在推出越來越多的功能，但我們沒有特定產品線的數字，因為這是更多作為我們定價中的模組。但總的來說，我們對此非常滿意。所以 -

For us, this is a treasure map, right? For us and for our customers when we roll out discovery, we know where the opportunities are. So, we see it as a great stepping stone and it has been a great stepping stone for us in the enterprise space. It's been a nice uptick.

對我們來說，這就是一張藏寶圖，對吧？對於我們和我們的客戶來說，當我們推出發現時，我們知道機會在哪裡。因此，我們將其視為一個偉大的墊腳石，並且它一直是我們在企業領域的一個偉大的墊腳石。這是一個很好的上升。

Great. And then just maybe a quick follow-up for Scott as well. You touched on the federal business. Can you just give us a sense for how that businesses ramped in Q2 versus Q1 and maybe what you expect for the rest of the year?

偉大的。然後斯科特也可能會快速跟進。你談到了聯邦事務。您能否讓我們了解第二季與第一季的業務成長情況以及您對今年剩餘時間的預期？

In general, we're expecting Q2 to be in line with where Q1 was. I mean the big quarter for us is always Q3 because of the end of the federal government's fiscal year. The good news for us as we got through all of the, and all the other federal businesses too.

總的來說，我們預計第二季將與第一季保持一致。我的意思是，由於聯邦政府財政年度的結束，對我們來說最重要的季度始終是第三季。這對我們來說是個好消息，因為我們完成了所有以及所有其他聯邦業務。

We get all the funding bills done. So, we always ring our hands as we're waiting for funding and that to come through. So, now we're waiting for the money to drop into the programs that we've been working on. And so far, so good. But the big money is typically for us in Q3.

我們完成了所有的資金法案。因此，當我們等待資金和資金到位時，我們總是會敲響我們的雙手。因此，現在我們正在等待資金投入我們一直在進行的專案中。到目前為止，一切都很好。但大筆資金通常是在第三季為我們帶來的。

Awesome. Thank you.

驚人的。謝謝。

Great. Thank you, Austin, and appreciate the question.

偉大的。謝謝你，奧斯汀，並謝謝你提出這個問題。

Michael Berg, Wells Fargo, followed by a question from Jackson Ader, KeyBanc.

富國銀行的 Michael Berg，隨後 KeyBanc 的 Jackson Ader 提出了一個問題。

Hey, there. Congrats on the quarter, thanks for taking my question. I just had a quick clarification on the customer large customer count trends. How can we think about how that is trended when you count for normalization of the account roll-ups, you mentioned on the call and then a follow-up.

嘿。恭喜本季度，感謝您提出我的問題。我剛剛快速澄清了客戶大客戶數量趨勢。您在電話會議和後續行動中提到，當您考慮帳戶匯總的正常化時，我們如何考慮趨勢如何。

Yes, sure. So, as I mentioned, ARR for both cohorts grew as we're seeing a big expansions. At the beginning of the year, we're doing obviously some account consolidations, obviously in our salesforce. There were mergers and acquisitions, and we'll refresh our database. So, that was the one reason.

是的，當然。因此，正如我所提到的，隨著我們看到大規模擴張，兩個群體的 ARR 都在成長。今年年初，我們顯然正在進行一些客戶整合，尤其是在我們的銷售團隊中。有合併和收購，我們將刷新我們的資料庫。所以，這就是原因之一。

The second piece that I mentioned is, if there is application consolidation within our customer that can move a customer between being adopt or not being adpot. So, overall, we're very pleased because, the ARR growing both segments and we are seeing more and more G2K is adding to that list and we are seeing the average ARR, the ARR growth for those customers. So overall, it's a very positive sign for us.

我提到的第二件事是，如果我們的客戶內部有應用程式整合，可以讓客戶在採用或不採用 Adpot 之間移動。因此，總的來說，我們非常高興，因為這兩個細分市場的ARR 都在成長，而且我們看到越來越多的G2K 正在添加到該列表中，我們也看到了平均ARR，即這些客戶的ARR 成長。總的來說，這對我們來說是一個非常積極的信號。

Yes, we're really pleased with the overall enterprise performance of the business. So, and that's where that cohort lives.

是的，我們對公司的整體企業績效非常滿意。所以，這就是那群人居住的地方。

Got it very, very helpful. And then another follow-up. So, you have the Walkme X platform coming out here next month. We saw a demo earlier and seem very impressive and very differentiated from what else is out in the market today.

明白了，非常非常有幫助。然後是另一個後續行動。因此，Walkme X 平台將於下個月推出。我們之前看過一個演示，看起來非常令人印象深刻，並且與當今市場上的其他產品非常不同。

I guess a couple of questions on that front. One, how can we think about the feedback from customers in the pilot so far? And B, anything to point to in terms of monetization or even our customers are willing to pay a trip or and given the potential value it can deliver?

我想這方面有幾個問題。第一，我們如何看待迄今為止試點中客戶的回饋？B，在貨幣化方面有什麼可以指出的嗎？

Sure. So one, the feedbacks are amazing. This is why and I mentioned in my script there, we're moving more and more accounts to focus on those products. So, people are telling us look, we have such a big nation to move more and more and more employees to (inaudible) generate gen-AI.

當然。其一，反饋是驚人的。這就是為什麼我在腳本中提到，我們正在將越來越多的帳戶轉移到這些產品上。所以，人們告訴我們，我們有這麼一個大國，需要調動越來越多的員工來（聽不清楚）生成人工智慧。

And it's just not easy, and with WalkmeX, it's just making sense. So, they want their WalkmeX functionality. They want to see it being deployed. So, we're very happy. We actually have a list of customer that's waiting for us to go and push it.

這並不容易，但有了 WalkmeX，這一切就變得有意義了。因此，他們想要 WalkmeX 功能。他們希望看到它被部署。所以，我們很高興。我們實際上有一份客戶名單正在等待我們去推動它。

Regarding monetization, we already rolled out a few features of WalkmeX and not the full product and monetize it as a consumption based model. In terms of WalkmeX, we are going to try a few approaches between seat-based and consumption. We're seeing more and more customers live the consumption model when you are on, hey, we improved X amount of workflows for you.

關於貨幣化，我們已經推出了 WalkmeX 的一些功能，而不是完整的產品，並將其作為基於消費的模型進行貨幣化。在WalkmeX方面，我們會嘗試一些介於坐席和消費之間的方式。我們看到越來越多的客戶在您上線時採用消費模式，嘿，我們為您改進了 X 數量的工作流程。

So, we will try it out obviously, we're launching in June 18, but there are, I would say, huge demand, especially when companies already invested a lot of money generate AI and making it as top priority. WalkmeX just making sense because, again, we are a people-centric company and all our products is around how we can empower people and connecting them to such an amazing technology that generate these AI.

所以，我們顯然會嘗試一下，我們將於 6 月 18 日推出，但我想說，需求巨大，特別是當公司已經投入大量資金開發人工智慧並將其作為首要任務時。WalkmeX 之所以有意義，是因為我們是一家以人為本的公司，我們所有的產品都是圍繞著如何賦予人們權力並將他們與產生這些人工智慧的驚人技術聯繫起來。

That's what every business wants and every enterprise want. So, when they see it and you saw the demo, it just make sense to them. So, we're super excited with what's coming. So, obviously, in the upcoming quarter, we'll have more concrete data on that, but from initial, I would say, demand and initial response. We're super happy.

這是每個企業都想要的，也是每個企業想要的。因此，當他們看到它並且您看到演示時，這對他們來說很有意義。所以，我們對即將發生的事情感到非常興奮。因此，顯然，在下個季度，我們將獲得更多具體數據，但我想說的是，從最初的需求和最初的反應。我們超級高興。

And I would add to that from my perspective. I'm coming up on two years at the company. And I've seen us bring out a lot of capabilities, a lot of functionality, but I have not seen the kind of uptake from our early adopter customers and our early customers that we've talked about and certainly not what I've seen from my own salesforce.

我想從我的角度補充這一點。我即將在公司工作兩年了。我看到我們推出了很多功能，但我還沒有看到我們的早期採用者客戶和我們談論過的早期客戶的接受程度，當然不是我所看到的來自我自己的銷售團隊。

So, my sales team is over the moon about having this conversation to talk about. That's where the money is right now. People in the enterprise are spending money around things related to AI, and we have the secret sauce to help them get value out of that. So, very exciting for me, very exciting for my sales team.

所以，我的銷售團隊對這次談話感到非常高興。這就是現在錢所在的地方。企業中的人們正在將錢花在與人工智慧相關的事物上，而我們擁有幫助他們從中獲取價值的秘訣。所以，對我來說非常令人興奮，對我的銷售團隊來說也非常令人興奮。

Great. Thank you, Michael. Appreciate the questions.

偉大的。謝謝你，麥可。感謝您提出的問題。

Jackson Ader, KeyBanc, followed by Tyler Radke, Citi.

KeyBanc 的傑克遜·阿德（Jackson Ader），花旗銀行的泰勒·拉德克（Tyler Radke）緊隨其後。

Great, thanks. This is Kyle Diehl on for Jacks Ader. Maybe just a quick one on the sales and marketing. I think we've seen it come down year-over-year on an absolute basis for a few quarters. And it was called out that there might be some incremental headcount or incremental spend on possibly here. Where would you guys be focusing that spend? And is there an opportunity to accelerate that, given the profitability improvement here for growth in the next couple of quarters?

萬分感謝。我是傑克斯·阿德的凱爾·迪爾。也許只是簡單介紹一下銷售和行銷。我認為我們已經看到它在幾個季度的絕對基礎上逐年下降。有人指出，這裡可能會增加一些人員數量或增加支出。你們會把這筆錢花在哪裡？鑑於未來幾季獲利能力的改善以及成長，是否有機會加速這一進程？

This is Scott. I'll take it. I am hiring. So, from my perspective, I've got room in my plan to hire. I'm hiring both salespeople, as well as presales people. So, (inaudible) has graciously, let me have some of that money, so I'm excited about it.

這是斯科特。我要買它。我正在招募。因此，從我的角度來看，我的招募計畫還有空間。我正在招募銷售人員和售前人員。所以，（聽不清楚）慷慨地讓我得到了一些錢，所以我對此感到很興奮。

Okay, great. And then maybe a quick follow-up. Just on the overall macro, has there been any improvement that you guys have seen versus the fourth quarter? I know that you guys have called out some of the best renewals here in the last couple quarters. What's driving that? Is there any macro within there? And then how do you guys see that playing out for the remainder of the year in terms of we're factoring the guidance?

好的，太好了。然後也許是快速跟進。就整體宏觀而言，你們看到與第四季相比有什麼改善嗎？我知道你們在過去幾季中已經提出了一些最好的續訂。是什麼推動了這一點？裡面有宏嗎？那麼，根據我們考慮的指導因素，你們如何看待今年剩餘時間的情況？

I will start. So, obviously, we're still conservative in everything that relates to macro. But specifically regarding the renewal rate, I will take all the credit and give it to our team. It has nothing to do with macro, it's us doing a better job, better processes, as I said, (inaudible) joined last year. You really transformed organization and it shows in the number.

我會開始。因此，顯然，我們在與宏觀相關的一切方面仍然持保守態度。但具體到續訂率，我會把所有的功勞都歸功於我們的團隊。這與宏觀無關，而是我們做得更好，流程更好，正如我所說，（聽不清楚）去年加入。您確實改變了組織，這一點從數字中可見一斑。

If there wouldn't be an uptick and improvement in macro, great, we'll see better improvement. But we went into this quarter and we're doing the renewals well ahead of time. The teams are working together. We added so much functionality and focused on service and support. I'm proud of the way we are putting our customers or teams is like world class and just seeing in the numbers. So, we know what we needed to fix. So, we're going to take the credit on that and not give it to the macro.

如果宏觀方面沒有上升和改善，那就太好了，我們會看到更好的改善。但我們進入本季並提前進行了續訂。各個團隊正在共同努力。我們添加了很多功能並專注於服務和支援。我為我們將客戶或團隊打造為世界一流的方式並僅從數字中看到而感到自豪。所以，我們知道我們需要修復什麼。因此，我們將把功勞歸咎於這一點，而不是把它歸咎於宏觀。

And I would add to that, we've had conversations before on this call in the past end of '22, first half of '23, where we did not anticipate the pressure, the competitive pressure on price and we lost some deals. We're not making that mistake anymore. And I would argue that part of the reason we've had such a good renewal quarter is where we did see competitive pressure.

我想補充一點，我們在 22 年底、23 上半年就曾就這次電話會議進行過對話，當時我們沒有預料到壓力、價格競爭壓力，我們失去了一些交易。我們不會再犯這樣的錯誤了。我認為，我們續約季度表現如此出色的部分原因是我們確實看到了競爭壓力。

We were able to blunt it with good performance and better service, and we've renewed those customers rather than having a churn. So, I get two wins out of that, right? I keep a happy client, and I've got an opportunity to then take that client and expand them in the second half of 2024. So, it's a double win for us.

我們能夠透過良好的性能和更好的服務來削弱它，並且我們已經更新了這些客戶而不是流失。所以，我從中獲得了兩場勝利，對嗎？我有一個滿意的客戶，我有機會在 2024 年下半年獲得該客戶並擴大其規模。所以，這對我們來說是雙贏。

Great. Thank you for the question.

偉大的。感謝你的提問。

Tyler Radke, Citi, followed by Kevin Kumar, Goldman Sachs.

花旗銀行的泰勒拉德克 (Tyler Radke) 和高盛的凱文庫馬爾 (Kevin Kumar) 緊隨其後。

This is Matt Pride from Citi. Curious, if you made any operational changes that drove the margin expansion during the quarter? And curious on your confidence level, if on future margin expansion and if it's sustainable, given investments in WalkmeX?

我是花旗銀行的馬特普萊德。很好奇，您是否做出了任何營運變化來推動本季利潤率的成長？考慮到對 WalkmeX 的投資，您對未來利潤擴張的信心水平以及是否可持續感到好奇？

Yes. So yes, we did do. I wouldn't say, big changes from operational standpoint in terms of headcount or moving people around. But we are using our own product line. For example, we're using Walkme answer as part of Walkme Act and we put it on our support side, and we drove support tickets by 16%, obviously that shows in our number.

是的。所以是的，我們確實做到了。我不會說，從營運角度來看，在人員數量或人員調動方面存在重大變化。但我們正在使用我們自己的產品線。例如，我們將 Walkme 答案作為 Walkme 法案的一部分，並將其放在我們的支持方面，我們將支持請求提高了 16%，顯然這在我們的數字中有所體現。

Our engineering team, obviously, they are using AI. They're much more productive and they are writing of code faster. So, we're obviously a technology company and leveraging our own tools and obviously other tools. So, just to be much, much better.

顯然，我們的工程團隊正在使用人工智慧。他們的工作效率更高，而且編寫程式碼的速度更快。因此，我們顯然是一家科技公司，利用我們自己的工具和其他工具。所以，只是為了變得更好。

So, we prove that we can improve the margins, while keeping the high end of our guidance. We've obviously provided the best results in terms of renewal. So, we're using technology in the right way and shows in our numbers.

因此，我們證明我們可以提高利潤率，同時保持指導的高端。顯然，我們在續約方面提供了最好的結果。因此，我們正在以正確的方式使用技術，並在我們的數據中體現。

Regarding sustainability on those margins, yes, we think we can keep it. Obviously, we can go in and invest when we need. But overall we are going to meet the expectations and the guidance that we're providing.

關於這些利潤的可持續性，是的，我們認為我們可以保持它。顯然，我們可以在需要的時候進去投資。但總的來說，我們將滿足我們提供的期望和指導。

I think as to what Dan said, we do have plan in place and we'll continue to invest in our people in headcount and in our growth drivers. We will continue to increase our headcount for the in the coming quarters as well. We haven't done something specifically within the quarter. We haven't done, we haven't gone through a reef or something similar on the opposite.

我認為，正如丹所說，我們確實已經制定了計劃，我們將繼續在員工人數和成長動力方面對員工進行投資。我們也將在未來幾季持續增加員工人數。我們在本季內沒有做任何具體的事情。我們還沒有完成，我們還沒有穿過對面的珊瑚礁或類似的東西。

We do have been able to enjoy some of the outperformance in Q1 as indicated in my script, and we see some additional benefit on the operating leverage in coming quarters as well, that's why we actually increased our guidance on the operating income for the year.

正如我的劇本中所示，我們確實能夠在第一季享受一些出色的表現，而且我們還看到未來幾季的營運槓桿會帶來一些額外的好處，這就是為什麼我們實際上提高了今年營運收入的指導。

On OpEx expenses, I can tell you that we will see a more or less the same level as you have seen in Q1, and we are very much focused on investing in our R&D and in our go-to-market organization.

在營運支出方面，我可以告訴您，我們將看到與第一季大致相同的水平，並且我們非常專注於對研發和上市組織的投資。

Got it. And one more shifting gears a little bit. Has your willingness to consider strategic alternatives, M&A changed at all over the last three to six months?

知道了。還有一個稍微變速的情況。在過去的三到六個月裡，您考慮策略選擇、併購的意願是否發生了變化？

So, obviously, with such a strong cash balance that we have, we're considering all options. We're actively discussing about many different options in our Board. Nothing to report yet. But obviously, our Board and our team do super happy with the results, $16.6 million of a cash flow in Q1, as I mentioned, more than the entire 2023. Obviously give us the stuff to think of.

因此，顯然，鑑於我們擁有如此強勁的現金餘額，我們正在考慮所有選擇。我們正在董事會中積極討論許多不同的選擇。還沒有什麼好報告的。但顯然，我們的董事會和團隊對結果非常滿意，正如我所提到的，第一季的現金流量為 1,660 萬美元，比整個 2023 年的現金流量還要多。顯然給我們提供了需要思考的東西。

Got it. Thank you, guys.

知道了。感謝你們。

Great. Thank you, Matt.

偉大的。謝謝你，馬特。

Kevin Kumar, Goldman Sachs, followed by Raimo Lenschow, Barclays.

高盛的凱文·庫馬爾（Kevin Kumar），巴克萊銀行的雷莫·倫肖（Raimo Lenschow）緊隨其後。

Hi, thanks for taking my question. I wanted to ask a follow-up to the margin question. I think the operating income guidance for next quarter is down a bit sequentially. Is that a function of, Dan, I think your comments on shifting more R&D resources to AI and, I guess in general over the next couple of quarters, you know, where are the kind of maybe the sources for operating leverage in line with kind of the full year guide that you gave? Thanks.

您好，感謝您提出我的問題。我想問保證金問題的後續問題。我認為下個季度的營業收入指引會比上一季略有下降。丹，我認為你關於將更多研發資源轉移到人工智慧的評論，我想在接下來的幾個季度中，你知道，營運槓桿的來源可能與類型相符您提供的全年指南是什麼？謝謝。

I think we've showed with you last quarter. We are very much focused on accelerating our growth and less on operational efficiency, less on operating income. We have raised the guidance for the year, and we do anticipate to continue to invest in as indicated in our business, in our headcounts and with additional areas, of course, also take into account that there are some seasonality that needs to be taken into account.

我想我們上個季度已經向您展示過。我們非常關注加速成長，而不是專注於營運效率和營運收入。我們已經提高了今年的指導，我們確實預計將繼續在我們的業務、員工人數和其他領域進行投資，當然，還要考慮到一些季節性因素需要考慮在內帳戶。

For example, Q2, we have several marketing events. We had a very successful Analyst Day in May. We have president club. We have the our customer event, realise event in June as well. So yes, we are very much focusing on efficiencies and continuing to leverage the margins. But overall and again, to bother to mention also the best in class, a gross margin of this subscription, but we're very much focused on continuing to invest in our growth.

例如，第二季度，我們有幾個行銷活動。我們五月的分析師日非常成功。我們有總統俱樂部。我們在六月也有客戶活動、實現活動。所以，是的，我們非常關注效率並繼續利用利潤。但總的來說，再次費心提及該訂閱的毛利率是同類中最好的，但我們非常專注於繼續投資於我們的成長。

That's helpful, thanks. And then want to ask about partners Walkme added Cognizant to that list and so Scott, maybe can you talk a bit about the traction you're seeing from the partner ecosystem and how they're contributing to new ARR and kind of how that kind of is it faring in comparison to your expectations?

這很有幫助，謝謝。然後想詢問Walkme 將Cognizant 添加到該列表中的合作夥伴，Scott，也許您可以談論您從合作夥伴生態系統中看到的吸引力，以及他們如何為新的ARR 做出貢獻，以及這種情況如何與您的期望相比，情況如何？

It is in line with my expectations. In fact, it's a little better. So, we put a lot of, we're behind the arrow in terms of spend with our partner group. As Hagit said, that's an area where we did not make significant changes in '23 in terms of our spend profile. In fact, we grew a little bit. So, I'm very excited about what we're doing there.

這符合我的預期。事實上，還好一點。因此，我們在與合作夥伴團隊的支出方面投入了大量資金。正如 Hagit 所說，就我們的支出狀況而言，我們在 23 年沒有對這個領域做出重大改變。事實上，我們也成長了一些。所以，我對我們在那裡所做的事情感到非常興奮。

You look at our top GSI partners, Deloitte, KPMG, Accenture, all of them have done well for us in the quarter, and we're expecting them to do well for us in the second half. Remember, we attached to their change management business. That's where we get. That's where we get involved. They come in and do a big change program in support of an SAP Hana update or an update for Oracle, an uptake for Workday, then it's that group that comes in and brings us to the table.

你看看我們的頂級 GSI 合作夥伴，德勤、畢馬威、埃森哲，他們在本季度都為我們做得很好，我們預計他們在下半年也能為我們做得很好。請記住，我們重視他們的變革管理業務。這就是我們得到的結果。這就是我們參與的地方。他們進來並進行了一項重大變革計劃，以支援 SAP Hana 更新或 Oracle 更新，以及 Workday 的採用，然後正是小組進來並把我們帶到了桌面上。

So, the more we see those coming down, the more we see those involving an opportunity for us to include WalkmeX. It's just going to accelerate for us. So, long-winded way of saying very pleased with our overall performance and super glad to add another high end GSI to the space.

因此，我們看到的內容越多，我們就越能看到那些涉及我們納入 WalkmeX 的機會的內容。對我們來說，這只會加速。所以，長篇大論地說，我們對我們的整體表現非常滿意，並且非常高興為該領域添加另一個高端 GSI。

Got it. Thank you.

知道了。謝謝。

Great, thank you for the question, Kevin. Appreciate it.

太好了，謝謝你的提問，凱文。欣賞它。

Raimo Lenschow, Barclays, followed by Keith Bachman, BMO.

巴克萊銀行 (Barclays) 的雷莫·倫肖 (Raimo Lenschow) 和蒙特利爾銀行 (BMO) 的基思·巴赫曼 (Keith Bachman) 緊隨其後。

Thank you. Hey, two quick questions from my end. Dan, if I think about WalkmeX, obviously it's your technology and Gen-AI combined, like how much of it domain benefit do you have that you understand this space already and the nature of the question (inaudible) you guys have a problem, but you kind of understand the space so much better.

謝謝。嘿，我最後問了兩個簡單的問題。Dan，如果我想到 WalkmeX，顯然這是你的技術和 Gen-AI 的結合，就像你已經了解這個領域以及問題的本質（聽不清楚）有多少領域優勢一樣，你們有問題，但是你對這個空間有了更好的理解。

So, can you talk little about the marriage of your domain knowledge of how to solve this problem? And then how Gen-AI kind of makes it more powerful and then one, maybe more number questions on the DAP customer numbers. I don't know, if you've mentioned it before. I think in Q4, we were at 199 and now we are 195, does that mean we had like four attritions? Can you talk speak to that maybe that's for Hagit. Thank you.

那麼，您能少談談您的領域知識聯姻如何解決這個問題嗎？然後 Gen-AI 如何讓它變得更強大，然後是一個、也許更多關於 DAP 客戶數量的問題。我不知道你之前是否有提到過。我想在第四季度，我們是 199，現在是 195，這是否意味著我們有四次人員流失？你能談談嗎，也許那是給哈吉特的。謝謝。

Sure. I'll start with that because, it's the shorter answer. As I said, there was some account consolidation. So, we had two DAP customers that one acquired another, for example, we consolidated two accounts of the number went down, but it's not that where we lost a lot of customers, the opposite of what we're seeing, we're seeing that ARR is growing.

當然。我將從這個開始，因為這是一個更簡短的答案。正如我所說，有一些帳戶合併。所以，我們有兩個DAP 客戶，一個收購了另一個，例如，我們合併了兩個帳戶，數量下降了，但這並不是我們失去了很多客戶，與我們所看到的相反，我們所看到的ARR 正在成長。

So, I explained it, the majority of it was (inaudible) stuff like that. Moving to the AI, what we're seeing today, if you're using AI, and obviously I invite you to come to our realized to see it in action. We show that in our Analyst Day. But you need to know how to prompt. If I would write a certain prompt and you would write a certain prompt and I would do it much better for you, you will get much better results.

所以，我解釋說，其中大部分都是（聽不清楚）類似的東西。轉向人工智慧，如果您正在使用人工智慧，我們今天所看到的，顯然我邀請您來到我們的現場，看看它的實際應用。我們在分析師日展示了這一點。但你需要知道如何提示。如果我寫一個特定的提示，你也寫一個特定的提示，我會為你做得更好，你會得到更好的結果。

There is a concept in AI and generative AI content. You need to have the right content. If you are telling the AI, pretend that you're a sales rep being Walkme and you need to do X, Y Z and you give it all the context, you will get a much better answer. In order for people to maximize the value of generative AI, they need to know how to prompt to get the right result.

人工智慧和產生人工智慧內容有一個概念。您需要擁有正確的內容。如果你告訴人工智慧，假裝你是 Walkme 的銷售代表，你需要做 X、Y Z，並且給出所有背景信息，你會得到更好的答案。為了讓人們最大限度地發揮生成式人工智慧的價值，他們需要知道如何提示以獲得正確的結果。

They need to know the context and they need to know when and where to use. Those three things are something that are context based. And this is where our proprietary technology is coming in. We are basically sitting with the user and we know exactly what I need to do. So, what WalkmeX does, it basically allows every employee to use AI, Gen-AI in the flow of work. And they don't even know they're using it.

他們需要了解上下文，並且需要知道何時何地使用。這三件事是基於上下文的。這就是我們的專有技術的用武之地。我們基本上與用戶坐在一起，我們確切地知道我需要做什麼。所以，WalkmeX所做的，它基本上是讓每個員工在工作流程中使用AI、Gen-AI。他們甚至不知道自己正在使用它。

We're doing it for them. We're prompting for them. Why? Because, we know exactly what they're trying to do for setting the right context, for setting the right prompt. So, they are getting the best out of generative AI without thinking how to use, that's one.

我們正在為他們做這件事。我們正在催促他們。為什麼？因為，我們確切地知道他們想要做什麼來設定正確的上下文、設定正確的提示。因此，他們正在充分利用生成式人工智慧，而不考慮如何使用，這就是其中之一。

The second piece is using AI today is a very much disjointed experience. You go to want to you have their own AI, you go to another tool, you have their own AI. Each one's different, you need to know the differences and the nuances. WalkmeX sold it. Very similar to what we were doing. We're basically making it one very simple experience for the user.

第二部分是今天使用人工智慧是一種非常脫節的體驗。你去想要你有自己的AI，你去另一個工具，你有自己的AI。每個都是不同的，您需要了解差異和細微差別。WalkmeX 賣了它。與我們正在做的非常相似。我們基本上是為用戶提供一種非常簡單的體驗。

As I said, we're all focused about the people element and the human element. And that's what brings the power of WalkmeX and you can't do it without our engine that one sees on top of every application contextual and can be triggered all the time.

正如我所說，我們都關注人的因素和人的因素。這就是 WalkmeX 的強大之處，如果沒有我們的引擎，您就無法做到這一點，我們的引擎位於每個應用程式上下文之上，並且可以隨時觸發。

So, I've said in the script and you know, you need to see it in order to fully understand it, but recalling it and always on copilot. It's something that is coming to you. You don't need to go and ask for it. So, one way to think about it, it's is a quote from our customer. Today Gen-AI is a pull model. You go, you ask answers and you get that result.

所以，我在劇本中說過，你知道，你需要看到它才能完全理解它，但要回憶它並始終處於副駕駛位置。這是正在向你而來的東西。你不需要去要求它。因此，一種思考方式是，這是我們客戶的報價。如今，Gen-AI 是一種拉動模型。你去找答案，然後你就會得到結果。

With WalkmeX, It's a push model. We're pushing into, you know what you're trying to do, let's say, your sales rep and you're doing something in Salesforce. We can use AI to understand if you're doing now something wrong that you're feeling that fill incorrectly and so on. You don't need to go and open AI and say, is that the answer is accurate, can I improve it and so on and so on.

WalkmeX 是一種推送模式。我們正在推動，你知道你想做什麼，比方說，你的銷售代表和你正在 Salesforce 中做一些事情。我們可以使用人工智慧來了解你現在是否做錯了什麼，你覺得填寫不正確等等。你不需要去打開人工智慧並說，答案是否準確，我可以改進它等等。

So, that difference of bringing AI (inaudible) people are making it real for them. That's why our customers are super excited to WalkmeX because, it actually make AI real and boost the adoption of AI within the organization. And it's proprietary to what we do, as I said in the past 12 years.

因此，引入人工智慧（聽不清楚）的人的差異正在使之成為現實。這就是為什麼我們的客戶對 WalkmeX 感到非常興奮，因為它實際上使人工智慧成為現實，並促進了人工智慧在組織內的採用。正如我在過去 12 年中所說，它是我們所做工作的專有內容。

Yes, okay. That's very exciting. Thank you.

是的，好的。這非常令人興奮。謝謝。

Thank you for the question and appreciate it.

感謝您的提問並表示感謝。

Keith Bachman, BMO.

基思·巴赫曼，BMO。

This is Greg Clark on for Keith Bachman. Thanks for taking my question. Could you set out on your goal to double net new ARRs for the year and progress toward that and what that implies for ARR growth. How do you think about the convergence of your ARR growth and and your subscription revenue growth overtime, particularly as we're thinking about beyond this year without providing any GAAP context? How should we just think about sort of the path of those two metrics? Thanks.

我是格雷格克拉克 (Greg Clark) 替基思巴赫曼 (Keith Bachman) 發言。感謝您提出我的問題。您能否設定今年淨新 ARR 翻倍的目標以及實現這一目標的進展情況以及這對 ARR 成長意味著什麼？您如何看待 ARR 成長和訂閱收入成長的趨同性，尤其是我們在不提供任何 GAAP 背景的情況下考慮今年以後的情況？我們該如何思考這兩個指標的路徑？謝謝。

Sure. Great question. Thank you. So, as we said, we're on our path and basically we hit our targets in Q1, and we're on a path to double the net new ARR for the year. So, as I said, we're happy with the first quarter and the start of the year. Obviously, if we will do that and the ARR growth will be double digits. Obviously, that's a lagging indicator.

當然。很好的問題。謝謝。因此，正如我們所說，我們正在走上正軌，基本上我們在第一季就達到了目標，並且我們正在努力將今年的淨新 ARR 翻一番。因此，正如我所說，我們對第一季和年初感到滿意。顯然，如果我們這樣做，ARR 成長將達到兩位數。顯然，這是一個落後指標。

So, that means that subscription revenue will be double digits following year. So, whatever ARR growth will end of 2024, that's probably going to be the revenue, maybe the subscription revenue growth for 2025. So, obviously, our subscription revenue growth slowed down mainly because of the performance of 2022, 2023. But obviously, if we are accelerating in 2024, we would see a subscription revenue acceleration in 2025. And obviously, if we will continue to increase our net new ARR in 2025, the same pattern will follow in 2026.

因此，這意味著明年的訂閱收入將達到兩位數。因此，無論 2024 年底的 ARR 成長如何，這都可能是營收的成長，也可能是 2025 年訂閱收入的成長。所以，很明顯，我們的訂閱收入成長放緩主要是因為2022年、2023年的表現。但顯然，如果我們在 2024 年加速，我們將在 2025 年看到訂閱收入加速。顯然，如果我們在 2025 年繼續增加淨新 ARR，那麼 2026 年將遵循相同的模式。

Great. Thank you.

偉大的。謝謝。

Great. Thank you, Greg, for the question. That concludes our question and answer session. I'll now hand it back to Dan Adika, our CEO and co-founder for closing remarks. Dan, the floor is yours.

偉大的。謝謝格雷格提出的問題。我們的問答環節到此結束。現在我將把它交還給我們的執行長兼聯合創始人 Dan Adika 致閉幕詞。丹，地板是你的。

Sure. Thanks, John. So, I want to everyone, thank you for joining, obviously, we're very excited with all the innovations, especially with WalkmeX. So, we're welcoming everyone to join us and realize on June 18 to see it live hearing from our customers. We're very excited with the opportunity there. And of course, like always, I want to thank our amazing employees for all the hard work and our customers and partners. So, thank you so much for your time.

當然。謝謝，約翰。所以，我想對大家說，感謝你們的加入，顯然，我們對所有的創新感到非常興奮，尤其是 WalkmeX。因此，我們歡迎大家加入我們，並於 6 月 18 日見證我們客戶的現場聆聽。我們對那裡的機會感到非常興奮。當然，像往常一樣，我要感謝我們出色的員工的辛勤工作以及我們的客戶和合作夥伴。非常感謝您抽出時間。