UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________ FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-40998 Weave Communications, Inc. (Exact name of registrant as specified in its charter) Delaware 26-3 ...

Core Insights - The article discusses the investment potential of WEAV, highlighting a beneficial long position in its shares [1]. Group 1 - The analysis emphasizes the importance of individual opinions in investment decisions, noting that past performance does not guarantee future results [2]. - It clarifies that no specific investment recommendations are provided, and the views expressed may not represent the entire platform's stance [2]. - The article indicates that the authors include both professional and individual investors, some of whom may lack formal licensing or certification [2].

Weave Overview Q1 2025 NYSE : WEAV MAY 2025 1 Safe Harbor Statement This presentation has been prepared by Weave Communications, Inc. ("Weave", "we", "us", or "our") for informational purposes only and not for any other purpose. This presentation contains "forward-looking statements" within the Private Securities Litigation Reform Act of 1995 that are based on our management's current expectations and projections about future events and financial trends that we believe may affect our financial condition, re ...

Group 1 - Weave Communications, Inc. reported quarterly earnings of $0.01 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.01 per share a year ago [1] - The company posted revenues of $55.81 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 2.10%, and up from $47.17 million year-over-year [2] - Over the last four quarters, Weave Communications has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2][3] Group 2 - The stock has underperformed, losing about 32.2% since the beginning of the year, while the S&P 500 has declined by only 3.3% [3] - The current consensus EPS estimate for the coming quarter is $0.02 on revenues of $56.75 million, and for the current fiscal year, it is $0.08 on revenues of $233.84 million [7] - The Internet - Software industry, to which Weave Communications belongs, is currently in the top 38% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Weave Communications (WEAV) Q1 2025 Earnings Call May 05, 2025 04:30 PM ET Company Participants Mark McReynolds - Head of Investor RelationsBrett White - CEOJason Christiansen - CFOTimothy Greaves - Equity Research Associate Conference Call Participants Alex Sklar - AnalystBrent Bracelin - Sr. Research AnalystParker Lane - AnalystMichael Funk - Analyst Operator Ladies and gentlemen, greetings and welcome to the Vii First Quarter '20 '20 '5 Financial Results. At this time, all participants are in a listen on ...

Financial Data and Key Metrics Changes - Q1 revenue grew 18% year over year to $55.8 million, marking the thirteenth consecutive quarter of exceeding guidance [14][23] - Gross margin improved to 72.1%, a 170 basis point increase year over year [14][26] - Operating income for Q1 was $39,000, an improvement of $1.4 million year over year [28] - Adjusted EBITDA for Q1 was $1 million, improving by $1.4 million year over year [28] Business Line Data and Key Metrics Changes - Record sales in the Medical segment, particularly in MedSpa and plastic surgery, with strong performance in primary therapy [14][24] - Payments revenue continues to grow at more than twice the rate of total revenue, contributing positively to the business [25][82] - Retention metrics remained stable with Net Revenue Retention (NRR) at 98% and Gross Revenue Retention (GRR) at 91% [25] Market Data and Key Metrics Changes - The acquisition of TrueLark expands the addressable market to over $10 billion in the U.S. [7][19] - New integrations launched in Q1 increased the integrated market by approximately 60,000 locations [15] Company Strategy and Development Direction - The acquisition of TrueLark is aimed at enhancing the product roadmap and expanding market opportunities [12][20] - Focus on automating workflows and improving patient engagement through technology [8][12] - Continued investment in R&D and sales/marketing to drive growth and customer acquisition [21][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business amid economic challenges, with no degradation in lead flow or pipeline [50] - Anticipated core business growth in 2025 to outpace 2024, despite a tough year-over-year revenue comparison in Q2 [30][31] - The company remains focused on revenue growth, operational efficiency, and maintaining positive free cash flow [32] Other Important Information - The company ended Q1 with $98.2 million in cash and short-term investments, with plans to use $25 million for the TrueLark acquisition [28] - The acquisition is expected to close in Q2 2025, with performance-based equity awards tied to revenue milestones [19][21] Q&A Session Summary Question: Incremental value of TrueLark to existing bundles - Management highlighted joint customers and the revenue-driving potential of TrueLark, emphasizing its automation capabilities [36][37] Question: Specialty medical growth and hiring plans - Management confirmed strong Q1 performance in specialty medical and anticipated further growth in the back half of the year due to increased sales capacity [40][41] Question: TrueLark's pricing model and monetization opportunities - TrueLark's product is primarily sold on a per-location or per-contract basis, with opportunities for reevaluation of pricing strategies [45][46] Question: Resilience of the pipeline amid economic challenges - Management reported no degradation in pipeline metrics and expressed optimism about the integration of TrueLark enhancing their market position [49][50] Question: Competitive landscape and AI opportunity - Management noted a clear vision for their product roadmap and highlighted TrueLark's established customer base and proven ROI as competitive advantages [55][56] Question: Vertical penetration and economic sensitivity - Management indicated less than 15% penetration across all verticals, with dental being the most penetrated and specialty medical the least [68][71] Question: Customer acquisition cost and go-to-market strategy - Management confirmed ongoing efforts to refine the go-to-market strategy to reduce customer acquisition costs and increase sales velocity [75][76] Question: Payment solution attach rate - Management noted that the payment solution currently makes up less than 10% of revenue but is growing faster than overall revenue [80][81]

Financial Performance - Total revenue for Q1 2025 was $55.8 million, an increase of 18.3% year-over-year from $47.2 million in Q1 2024[6] - GAAP gross margin improved to 71.6%, up 170 basis points from 69.9% in Q1 2024[6] - Non-GAAP gross margin also increased to 72.1%, up 170 basis points from 70.4% in Q1 2024[6] - GAAP net loss for Q1 2025 was $8.8 million, or $0.12 per share, compared to a net loss of $7.2 million, or $0.10 per share, in Q1 2024[6] - Non-GAAP net income was $0.5 million, or $0.01 per share, compared to a non-GAAP net loss of $0.4 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $1.0 million, compared to a negative $0.4 million in Q1 2024[6] - Revenue for Q1 2025 was $55,809,000, representing a 18.4% increase from $47,173,000 in Q1 2024[34] - Gross profit for Q1 2025 was $39,945,000, up from $32,987,000 in Q1 2024, indicating a growth of 21.1%[34] - Total operating expenses increased to $49,265,000 in Q1 2025 from $41,142,000 in Q1 2024, reflecting a rise of 19.8%[34] - Net loss for Q1 2025 was $8,825,000, compared to a net loss of $7,203,000 in Q1 2024, showing an increase in losses of 22.5%[34] - Non-GAAP gross profit for Q1 2025 was $40,230,000, compared to $33,226,000 in Q1 2024, marking a 20.9% increase[40] - Non-GAAP income from operations for Q1 2025 was $39,000, compared to a loss of $1,383,000 in Q1 2024, indicating a significant improvement[42] - Free cash flow for Q1 2025 was $(1,062,000), a decrease from $(20,519,000) in Q1 2024, indicating a substantial reduction in cash outflow[44] - Adjusted EBITDA for Q1 2025 was $1,020,000, compared to a loss of $(358,000) in Q1 2024, reflecting a positive shift in operational performance[45] Future Projections - For Q2 2025, total revenue is projected to be between $57.3 million and $58.3 million[8] - Full-year revenue guidance for 2025 is estimated to be between $236.8 million and $239.8 million[8] Acquisition and Market Expansion - The company announced an agreement to acquire TrueLark for $35.0 million, which includes $25.0 million in cash and $10.0 million in equity[11] - The acquisition of TrueLark is expected to enhance Weave's AI capabilities and expand its addressable market[3] Cash and Assets - Cash and cash equivalents at the end of Q1 2025 were $53,410,000, up from $51,596,000 at the end of Q4 2024[35] - Total assets as of March 31, 2025, were $188,310,000, slightly down from $188,926,000 as of December 31, 2024[32] Margins and Costs - The gross margin for subscription and payment processing improved to 77.4% in Q1 2025 from 76.6% in Q1 2024[36] - GAAP net loss margin for Q1 2025 was (15.8)%, slightly worse than (15.3)% in Q1 2024, indicating ongoing challenges in profitability[43] - Non-GAAP net income margin for Q1 2025 was 1.0%, improving from (0.9)% in Q1 2024, suggesting better cost management[43] Stock and Interest - Stock-based compensation increased to $8,985,000 in Q1 2025 from $6,772,000 in Q1 2024, reflecting higher employee incentives[45] - Interest expense increased to $397,000 in Q1 2025 from $319,000 in Q1 2024, indicating rising borrowing costs[45] - Weighted-average common shares outstanding for Q1 2025 were 73,806,981, up from 70,452,944 in Q1 2024, suggesting dilution effects[43] - Net cash used in operating activities for Q1 2025 was $(219,000), a significant improvement from $(19,701,000) in Q1 2024[44]

Revenue and Financial Performance - Revenue for the years ended December 31, 2024, 2023, and 2022 was $204.3 million, $170.5 million, and $142.1 million, respectively, indicating a growth of approximately 20% year-over-year from 2023 to 2024[81]. - The company incurred net losses of $28.3 million and $31.0 million for the periods ending December 31, 2024, and 2023, respectively, with an accumulated deficit of $291.0 million as of December 31, 2024[93]. - The company expects revenue growth rates to decline over time, which may hinder its ability to achieve and sustain profitability[95]. - A substantial percentage of operating expenses is fixed, making the company vulnerable to revenue shortfalls impacting losses and margins[103]. - Revenue from Weave Payments is contingent on customer usage, and any decline in usage could adversely affect the company's financial condition[166]. Customer and Market Strategy - The company aims to expand its customer base among medium-sized businesses, providing multi-office functionality through its new platform[92]. - The company is focusing on increasing the adoption of additional products by existing customers, which is critical for revenue growth[86]. - The company is focusing on expanding its customer base by targeting additional healthcare vertical markets, requiring significant investments in brand awareness[106]. - Economic uncertainties may lead to decreased spending by customers, impacting demand for the company's platform[96]. - The company faces challenges in maintaining effective marketing programs, which are essential for attracting new customers in a cost-effective manner[111][112]. Operational Challenges - The company has experienced significant churn in its employee base, creating operational challenges, particularly in customer service and sales[81]. - The ability to develop and maintain high-quality customer service is vital for sustaining customer relationships and overall business health[125]. - The company plans to devote significant resources to enhancing customer service and support, which may adversely affect financial condition if not matched by corresponding revenue[126]. - Approximately 25% of the current customer service staff has been employed for less than one year, potentially impacting service quality[127]. - The company faces challenges in maintaining platform performance during peak usage times, which could lead to customer dissatisfaction and revenue loss[158][159]. Technology and Cybersecurity Risks - The company is exposed to cybersecurity threats that could compromise data integrity and result in significant costs[137]. - The company relies on third-party integrations and may face challenges in maintaining compatibility with evolving third-party offerings[132]. - The company relies heavily on GCP for its cloud infrastructure, with a 60-month agreement in place until 2027, which poses risks if disrupted[151]. - Service interruptions at GCP have previously occurred and are expected to continue, potentially affecting the company's performance and customer trust[150]. - Cybersecurity threats, including malware and phishing attacks, have become more prevalent and could harm the company's reputation and user retention[277]. Regulatory and Compliance Issues - Compliance with FCC regulations is critical, as non-compliance could lead to fines, loss of licenses, and harm to the company's reputation[195]. - The company is subject to various state and federal regulations, including obligations to contribute to Universal Service Fund programs and comply with E-911 requirements[196]. - The implementation of STIR/SHAKEN caller ID authentication is mandatory, with potential competitive harm if not adhered to[199]. - The company processes sensitive business and personal information, making it subject to stringent data protection laws, including HIPAA, which could lead to substantial compliance costs if violated[215]. - Non-compliance with data protection laws could result in civil liability, investigations, and damage to the company's reputation, affecting customer retention and acquisition[218]. Growth and Expansion - The company has expanded operations to India and the Philippines over the last three years, aiming to enhance its market presence[81]. - The company opened an office in India in 2021 and had approximately 100 employees there by December 31, 2024, to enhance engineering and administrative operations[178]. - The company began utilizing resources in the Philippines in 2023 to supplement customer support operations and expanded these resources in 2024 for revenue operations[178]. - International expansion efforts may lead to lower gross margins for international customers compared to domestic customers due to higher costs and service provider fees[182]. - The company faces significant risks in international markets, including regulatory, economic, and political challenges, which could adversely affect business operations[179]. Human Resources and Company Culture - The ability to attract and retain skilled employees, particularly in AI, is critical for the company's competitive edge and operational success[155]. - The company must attract and retain skilled employees to manage business effectively, facing intense competition in the industry[187]. - Maintaining company culture is critical for success, and failure to do so could lead to decreased employee satisfaction and retention challenges[191]. - Volatility in stock price may impact the company's ability to retain key employees, as many are vested in stock options[188]. - The company relies heavily on its senior management and key personnel, with potential loss impacting business objectives significantly[192]. Financial and Tax Considerations - The company has NOL carryforwards of $207.4 million for federal and $156.3 million for state income tax purposes, which may expire if not utilized by 2039 and 2034 respectively[243]. - The company may incur additional tax liabilities due to changes in tax laws or challenges from tax authorities, which could adversely affect its financial condition[239]. - Changes in U.S. and global tax legislation could significantly impact the company's financial position and effective tax rates[242]. - The company’s ability to utilize NOLs may be limited by ownership changes, which could increase future tax obligations[244]. - The loan agreement with Silicon Valley Bank imposes financial covenants, requiring a minimum liquidity of $20 million if cash and short-term investments fall below $100 million[193]. Legal and Litigation Risks - The company is subject to legal proceedings that could be costly and time-consuming, potentially harming its reputation regardless of the outcome[272]. - The exclusive forum provisions in the company's amended certificate may limit stockholders' ability to bring claims in favorable jurisdictions[271]. - The company may incur significant additional costs associated with legal claims in jurisdictions outside of its preferred forum[271]. - The company faces potential substantial costs due to claims of intellectual property infringement, which could divert management's attention and resources[232]. - The company may need to develop alternative non-infringing technologies if faced with litigation, which would require significant effort and expense[233].

Financial Data and Key Metrics Changes - In Q4 2024, Weave reported revenue of $54.2 million, reflecting nearly 19% year-over-year growth, exceeding guidance by $1.1 million [42][43] - Gross margin improved to 72.6%, a 290 basis point increase year-over-year, marking the 12th consecutive quarter of improvement [45] - Free cash flow reached $6.1 million in Q4, more than doubling year-over-year, with a free cash flow margin of 11% [15][48] - For the full year 2024, total revenue grew 20% to $204.3 million, with subscription and payment revenue growing 21% [50] Business Line Data and Key Metrics Changes - Revenue from specialty medical practices grew at twice the rate of overall company revenue in 2024, with primary care, med spa, plastic surgery, and physical therapy being notable segments [18][19] - The net revenue retention rate improved to 98% in Q4, up from 95% the previous year, indicating strong customer engagement [43] Market Data and Key Metrics Changes - The addressable market for Weave in the US healthcare sector exceeds $7 billion, with significant growth potential in specialty medical verticals [13] - The SMB medical market spans 29 specialties, representing an opportunity more than twice the size of the dental, optometry, and veterinary markets combined [19] Company Strategy and Development Direction - Weave aims to enhance patient experiences through a unified platform that integrates communication, scheduling, forms, and payments, focusing on AI-powered solutions [9][10] - The company plans to expand into specialty medical verticals, strengthen integration partnerships, and enhance solutions for multi-location practices in 2025 [16][20] - Payments will be a core element of Weave's product and go-to-market strategy, with a dedicated payments team to drive adoption [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong demand for solutions and disciplined execution [14][33] - The company anticipates continued positive operating income and free cash flow for 2025, despite potential short-term challenges in Q1 [49][56] Other Important Information - Alan Taylor, the CFO, will retire at the end of the quarter, with Jason Christiansen set to succeed him [37][39] - Weave received recognition for its customer experience and workplace culture, ranking first in G2's Winter 2025 Report for patient relationship management [34] Q&A Session Summary Question: Can you provide more color on the 2025 guide and incremental investments? - Management indicated a focus on growth with targeted investments in partnerships and new markets, particularly in specialty medical [66][68] Question: How do you view the payments opportunity for 2025 versus 2024? - The payments solution is expected to have an accretive effect on growth and margins, with ongoing integration efforts and a revised sales compensation model [72][76] Question: What are the expectations for net revenue retention trends for FY '25? - NRR is expected to improve through enhancements in payments and upsell opportunities, with a focus on location-based pricing [102][105] Question: What drove the revenue upside and incremental confidence? - Strong demand and strategic leadership additions throughout 2024 contributed to increased confidence and positive revenue trends [108][110]

Weave Overview NYSE: WEAV February 2025 Q4 2024 Safe Harbor Statement This presentation has been prepared by Weave Communications, Inc. ("Weave", "we", "us", or "our") for informational purposes only and not for any other purpose. This presentation contains "forward-looking statements" within the Private Securities Litigation Reform Act of 1995 that are based on our management's current expectations and projections about future events and financial trends that we believe may affect our financial condition, ...