WalkMe Ltd. (NASDAQ:WKME) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. WalkMe Ltd. provides cloud-based digital adaption platform and associated professional services in the United States and internationally. The US$837m market-cap company announced a latest loss of US$59m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is WalkMe's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

According to the 8 industry analysts covering WalkMe, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$1.5m in 2025. So, the company is predicted to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 134%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won't go into details of WalkMe's upcoming projects, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there's one aspect worth mentioning. WalkMe currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of WalkMe which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at WalkMe, take a look at WalkMe's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:

1. Valuation: What is WalkMe worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether WalkMe is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on WalkMe's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.