Weave Communications, Inc. (WEAV) Bundle
A Brief History of Weave Communications, Inc.
Weave Communications, Inc. (NYSE: WEAV) has established itself as a leading customer experience and payments software platform for small and medium-sized healthcare practices. As of 2024, the company has seen significant growth and transformation, driven by innovative technology and a focus on customer engagement.
Financial Performance Overview
In the third quarter of 2024, Weave reported total revenue of $52.4 million, marking a year-over-year increase of 20.3% from $43.5 million in the same period of 2023. The company achieved a GAAP gross margin of 72.0%, compared to 68.7% in Q3 2023. The non-GAAP gross margin also improved to 72.5%, up from 69.3%.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $52.4 million | $43.5 million | +20.3% |
| GAAP Gross Margin | 72.0% | 68.7% | +330 bps |
| Non-GAAP Gross Margin | 72.5% | 69.3% | +320 bps |
| GAAP Net Loss | $5.9 million | $7.1 million | -17.5% |
| Non-GAAP Net Income | $2.1 million | ($1.0 million) | Positive Shift |
Operating Expenses
Operating expenses for Q3 2024 totaled $44.4 million, an increase from $38.0 million in Q3 2023. This includes:
- Sales and Marketing: $21.2 million (up from $17.8 million)
- Research and Development: $9.9 million (up from $8.6 million)
- General and Administrative: $13.3 million (up from $11.5 million)
Cash Flow Analysis
Weave generated $4.5 million in net cash from operating activities during Q3 2024, compared to $3.3 million in Q3 2023. Free cash flow for the quarter was $3.5 million, up from $2.1 million the previous year.
| Cash Flow Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Cash from Operating Activities | $4.5 million | $3.3 million |
| Free Cash Flow | $3.5 million | $2.1 million |
Market Position and Strategic Initiatives
Weave has positioned itself as an essential tool for healthcare providers by integrating advanced technology solutions. In 2024, the company launched an AI-powered platform that enhances customer interactions and operational efficiencies. This platform includes features such as:
- AI-powered Weave Assistant for personalized responses
- Call Intelligence product leveraging custom AI for actionable insights
The company reported a Dollar-Based Net Retention Rate (NRR) of 98% and a Dollar-Based Gross Retention Rate (GRR) of 92% as of September 30, 2024, indicating strong customer loyalty and retention.
Outlook for 2024
For the fourth quarter and full year 2024, Weave projects total revenue between $202.7 million and $203.7 million. Non-GAAP income from operations is expected to range from $0.9 million to $1.9 million for the fourth quarter, with a weighted average share count of 72.7 million.
| Outlook Metric | Fourth Quarter 2024 | Full Year 2024 |
|---|---|---|
| Total Revenue | $52.6 - $53.6 million | $202.7 - $203.7 million |
| Non-GAAP Income from Operations | $0.9 - $1.9 million | $0.0 - $1.0 million |
| Weighted Average Share Count | 72.7 million | 71.6 million |
A Who Owns Weave Communications, Inc. (WEAV)
Ownership Structure
As of 2024, Weave Communications, Inc. has a diverse ownership structure comprising institutional investors, retail investors, and company insiders. The total number of shares outstanding as of September 30, 2024, is 72,517,681 shares.
Major Shareholders
The following table outlines the significant shareholders of Weave Communications, Inc. and their respective ownership percentages:
| Shareholder | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Vanguard Group Inc. | 6,984,230 | 9.62% |
| BlackRock Inc. | 6,517,663 | 8.98% |
| Wellington Management Group LLP | 5,300,000 | 7.31% |
| Insider Ownership | 3,500,000 | 4.83% |
| Other Institutional Investors | 15,000,000 | 20.69% |
| Retail Investors | 34,215,788 | 47.14% |
Insider Ownership
Insider ownership plays a crucial role in the governance of Weave Communications. Key executives such as the CEO and board members hold significant stakes. The total insider ownership stands at approximately 4.83% of the company.
Recent Changes in Ownership
In the latest financial quarter, Weave Communications reported that institutional ownership has slightly increased, reflecting growing interest from major investment firms. The company's total stockholders' equity as of September 30, 2024, is $68,836,000.
Market Capitalization
As of October 30, 2024, Weave Communications, Inc. has a market capitalization of approximately $1.6 billion, which underscores its position in the customer experience and payments software sector.
Conclusion on Ownership Dynamics
The ownership dynamics of Weave Communications, Inc. showcase a blend of institutional and retail investors, with a notable presence of insiders. This structure is indicative of a company that is both well-supported by institutional capital and engaged with its retail investor base.
Weave Communications, Inc. (WEAV) Mission Statement
Company Overview
Weave Communications, Inc. (NYSE: WEAV) is an all-in-one customer experience and payments software platform specifically designed for small and medium-sized healthcare businesses. Weave connects the entire patient journey from initial contact to final invoicing, enhancing how healthcare practitioners attract, communicate with, and engage patients.
Mission Statement
Weave's mission is to empower healthcare practices with the tools necessary to enhance patient experiences, streamline operations, and ultimately grow their business. The company aims to transform patient-practice interactions into meaningful relationships through innovative technology solutions.
Recent Financial Performance
As of the third quarter of 2024, Weave has reported significant financial growth and operational improvements:
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $52.4 million | $43.5 million | +20.3% |
| GAAP Gross Margin | 72.0% | 68.7% | +330 basis points |
| Non-GAAP Gross Margin | 72.5% | 69.3% | +320 basis points |
| GAAP Operating Loss | $(6.6) million | $(8.0) million | Improvement of $1.4 million |
| Non-GAAP Operating Income | $1.4 million | $(1.8) million | Improvement of $3.2 million |
| Net Cash from Operating Activities | $4.5 million | $3.3 million | +34.0% |
| Free Cash Flow | $3.5 million | $2.1 million | +66.7% |
| Dollar-Based Net Retention Rate (NRR) | 98% | N/A | N/A |
Strategic Developments
Weave has recently launched an AI-powered platform that integrates advanced technology to enhance customer interactions. This platform is designed to provide actionable insights and streamline operational tasks, marking a significant step in Weave's commitment to innovation in the healthcare sector.
Market Position
Weave has positioned itself as a leader in the Patient Relationship Management sector, consistently recognized for its contributions to improving patient engagement and practice management. The company has been acknowledged as a G2 leader across various software categories, demonstrating its commitment to delivering value to healthcare practitioners.
Future Outlook
For the fourth quarter and full year of 2024, Weave anticipates the following financial performance:
| Metric | Fourth Quarter 2024 (in millions) | Full Year 2024 (in millions) |
|---|---|---|
| Total Revenue | $52.6 - $53.6 | $202.7 - $203.7 |
| Non-GAAP Income from Operations | $0.9 - $1.9 | $0.0 - $1.0 |
| Weighted Average Share Count | 72.7 million | 71.6 million |
Weave Communications continues to focus on innovation, customer experience, and operational efficiency as key drivers of its growth strategy. The company's mission reflects its commitment to enhancing the healthcare industry's approach to patient engagement and practice management.
How Weave Communications, Inc. (WEAV) Works
Company Overview
Weave Communications, Inc. operates as a customer experience and payments software platform primarily focused on small and medium-sized healthcare practices. The company integrates various functionalities that enhance patient engagement throughout the healthcare journey.
Financial Performance
As of the third quarter of 2024, Weave reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Revenue | $52.4 million | $43.5 million | $150.1 million | $124.8 million |
| Gross Profit | $37.7 million | $29.9 million | $106.8 million | $84.5 million |
| Net Loss | ($5.9 million) | ($7.1 million) | ($21.6 million) | ($24.0 million) |
| GAAP Loss per Share | ($0.08) | ($0.10) | ($0.30) | ($0.36) |
| Non-GAAP Net Income | $2.1 million | ($1.0 million) | $1.5 million | ($7.4 million) |
Operational Efficiency
Weave has shown significant operational improvements, as indicated by its gross margins:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| GAAP Gross Margin | 72.0% | 68.7% |
| Non-GAAP Gross Margin | 72.5% | 69.3% |
Cash Flow Analysis
For the third quarter of 2024, Weave reported cash flow metrics as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $4.5 million | $3.3 million |
| Free Cash Flow | $3.5 million | $2.1 million |
Market Position and Growth
As of September 30, 2024, Weave reported a Dollar-Based Net Retention Rate (NRR) of 98% and a Gross Retention Rate (GRR) of 92%. The company also maintains cash and cash equivalents, including short-term investments, totaling $98.2 million.
Recent Developments
Weave has launched an AI-powered platform that enhances customer engagement and operational efficiency. This includes features such as:
- AI-powered Weave Assistant for personalized responses and automated tasks.
- Call Intelligence product that utilizes AI to extract insights from call data.
Future Financial Outlook
For the fourth quarter of 2024, Weave expects:
| Metric | Fourth Quarter 2024 |
|---|---|
| Total Revenue | $52.6 - $53.6 million |
| Non-GAAP Income from Operations | $0.9 - $1.9 million |
| Weighted Average Share Count | 72.7 million |
How Weave Communications, Inc. (WEAV) Makes Money
Revenue Streams
Weave Communications generates revenue primarily through three key segments: subscription and payment processing, onboarding services, and hardware sales. The breakdown of revenue for the third quarter of 2024 is as follows:
| Revenue Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Subscription and Payment Processing | $50,375 | $41,601 |
| Onboarding Services | $845 | $757 |
| Hardware Sales | $1,166 | $1,186 |
| Total Revenue | $52,386 | $43,544 |
Cost Structure
The cost of revenue for Weave Communications includes expenses associated with each revenue segment. The cost breakdown for Q3 2024 is as follows:
| Cost Segment | Q3 2024 Cost of Revenue (in thousands) | Q3 2023 Cost of Revenue (in thousands) |
|---|---|---|
| Subscription and Payment Processing | $10,932 | $9,486 |
| Onboarding Services | $2,006 | $2,295 |
| Hardware Sales | $1,721 | $1,828 |
| Total Cost of Revenue | $14,659 | $13,609 |
Operating Expenses
Weave's operating expenses consist of sales and marketing, research and development, and general and administrative costs. The details for Q3 2024 are as follows:
| Expense Type | Q3 2024 Operating Expenses (in thousands) | Q3 2023 Operating Expenses (in thousands) |
|---|---|---|
| Sales and Marketing | $21,159 | $17,801 |
| Research and Development | $9,868 | $8,628 |
| General and Administrative | $13,330 | $11,528 |
| Total Operating Expenses | $44,357 | $37,957 |
Profitability Metrics
Weave Communications has shown significant improvement in profitability metrics in Q3 2024:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| GAAP Gross Margin | 72.0% | 68.7% |
| Non-GAAP Gross Margin | 72.5% | 69.3% |
| GAAP Loss from Operations | $(6,630) | $(8,022) |
| Non-GAAP Income from Operations | $1,392 | $(1,835) |
| GAAP Net Loss | $(5,879) | $(7,145) |
| Non-GAAP Net Income | $2,143 | $(958) |
Cash Flow Analysis
Weave's cash flow from operations has also improved, indicating better financial health:
| Cash Flow Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $4,500 | $3,334 |
| Free Cash Flow | $3,541 | $2,080 |
Retention Rates
Weave Communications maintains strong customer retention metrics:
- Dollar-Based Net Retention Rate (NRR): 98% as of September 30, 2024
- Dollar-Based Gross Retention Rate (GRR): 92% as of September 30, 2024
Financial Outlook
Weave Communications anticipates the following for Q4 and full year 2024:
| Financial Metric | Q4 2024 (in millions) | Full Year 2024 (in millions) |
|---|---|---|
| Total Revenue | $52.6 - $53.6 | $202.7 - $203.7 |
| Non-GAAP Income from Operations | $0.9 - $1.9 | $0.0 - $1.0 |
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Article updated on 8 Nov 2024
Resources:
- Weave Communications, Inc. (WEAV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Weave Communications, Inc. (WEAV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Weave Communications, Inc. (WEAV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.