Israeli Tech Startup WalkMe Is Going Public Soon

WalkMe, an Israeli tech startup founded in 2011, has filed its F-1 with the SEC to go public. It was the second Israeli-based company within the same week in May to file IPO paperwork, following Monday.com.

The company, whose name comes from the phrase “Walk me through it,” filed its preliminary prospectus in May. WalkMe's main product is its Digital Adoption Platform (DAP), which helps companies maximize the use of all of their technology. Its product overlays the company’s existing technology rather than integrating with it. 

The company has its headquarters in Tel Aviv, Israel. Currently, WalkMe employs about 940 employees full-time as of March 31, according to Meritech Capital.

WalkMe products offer visibility and insights into company data. It also helps improve the overall customer experience whether digital assets are used on mobile, web, or desktop interfaces. The company intends to go public on the Nasdaq Exchange, likely in the third quarter of 2021.

WalkMe reported an ARR (annual recurring revenue) of $177.5 million for the first quarter of 2021 with 29 percent growth YoY. The same quarter showed a 111 percent dollar-based net retention rate, according to Meritech Capital.

Currently, WalkMe isn’t profitable. Its prospectus showed net losses of $45 million in 2020—down from $50.1 million net losses in 2019. The revenue grew by 41 percent in 2020 to $148.3 million. The first quarter of 2021 also showed revenue growth. Compared to the first quarter of 2020, the revenue went up by 25 percent to $42.7 million.

WalkMe has raised a total of $307.5 million over nine rounds of fundraising, according to Crunchbase. The firm’s most recent funding round was a Series G completed in December 2019. That late-stage venture round added $90 million and was led by Vitruvian Partners.

In its original F-1 filing, WalkMe used $100 million as a placeholding figure. Since then, WalkMe stated that it plans to offer 9.25 million shares in its IPO. Underwriters will also be given the 30-day option to purchase up to an additional 1.39 million shares at the IPO price, according to SeekingAlpha. The IPO price might range from $29 to $32 per share.

WalkMe intends to list for trading on the Nasdaq Exchange under the ticker symbol "WKME." The company’s latest funding round gave it a valuation of $1.9 billion. Recent reports indicate that it's shooting for a $4 billion valuation at the time of the IPO.

A concrete date for the WalkMe IPO hasn’t been publicized yet, although early reports say that the company might complete its IPO sometime in the third quarter of 2021. It has filed to list on the Nasdaq as “WKME.”

Currently, most retail investors will need to wait until the WalkMe IPO is completed before buying shares of the tech company. Pre-IPO shares might be available via SharesPost, EquityZen, or a select brokerage that enables pre-IPO stock purchases. After the IPO is complete, anyone will be able to purchase shares of WKME stock through their regular brokerage.