Artificial Intelligence Firm WalkMe Will Seek Nasdaq IPO

WalkMe Ltd, an artificial intelligence (AI) company that provides on-screen guides for website owners and software developers, said on Tuesday (May 18) that it had filed paperwork seeking an initial public offering (IPO) on the Nasdaq.

According to a report from The Times of Israel, WalkMe has filed a preliminary prospectus with the Securities and Exchange Commission (SEC) for the IPO, although the number of shares up for grabs and the price range of the offering have yet to be set.

While WalkMe did not say what valuation it is seeking with the IPO, its last financing round valued the company at $1.9 billion. Earlier reports have indicated the company would seek an IPO valuation of about $4 billion.

WalkMe said in its prospectus that its revenue for 2020 rose 41 percent to $148.3 million. For the first quarter of 2021, revenue rose 25 percent to $42.7 million compared to the first quarter of last year. Net losses for 2020 shrank from $45 million compared to $50.1 million in 2019.

“We believe that digital adoption represents a vast, rapidly growing and under-penetrated market opportunity today, and we estimate our total addressable market opportunity to be approximately $34 billion. As the pioneer and market leader in this category, we believe that we are well-positioned to capture a substantial portion of this large opportunity over time,” the Tel Aviv-based company said in the filing.

The risks facing WalkMe include the fact that its products “are new and evolving and may develop more slowly or differently than we expect. Our future success depends on the growth and expansion of these markets and our ability to adapt and respond effectively to evolving market conditions.”

Founded in 2011 by CEO Dan Adika, President Rafael Sweary and Eyal Cohen, WalkMe has raised $308 million to date from a range of investors, including Vitruvian Partners, Insight Partners and Singapore’s EDBI.

Tuesday’s announcement comes during a busy season for IPO’s including another Tel Aviv tech firm, monday.com, which said earlier this week it had filed its own paperwork with the SEC.