- First quarter total revenue of $47.2 million, up 19.2% year
over year
- GAAP gross margin of 69.9%, up 280 basis points year over
year
- Non GAAP gross margin of 70.4%, up 280 basis points year over
year
Weave (NYSE: WEAV), a leading all-in-one customer experience and
payments software platform for small and medium-sized healthcare
businesses, today announced its financial results for the first
quarter ended March 31, 2024.
“Weave delivered another terrific quarter, providing a strong
start to the year with solid top-line performance and significant
improvements in gross and operating margin and adjusted EBITDA.
Achieving greater than 70% non-GAAP gross margin for the first time
is a significant milestone for Weave,” said CEO Brett White. “These
results underscore the market’s demand for our vertically tailored
software and payments platform and our continued efforts to improve
efficiency.”
First Quarter 2024 Financial Highlights
- Total revenue was $47.2 million, representing a 19.2%
year-over-year increase compared to $39.6 million in the first
quarter of 2023.
- GAAP gross margin was 69.9%, compared to a GAAP gross margin of
67.1% in the first quarter of 2023.
- Non-GAAP gross margin was 70.4%, compared to a non-GAAP gross
margin of 67.6% in the first quarter of 2023.
- GAAP loss from operations was $8.2 million, compared to a GAAP
loss from operations of $8.5 million in the first quarter of
2023.
- Non-GAAP loss from operations was $1.4 million, compared to a
non-GAAP loss from operations of $4.0 million in the first quarter
of 2023.
- GAAP net loss was $7.2 million, or $0.10 per share, compared to
a GAAP net loss of $7.9 million, or $0.12 per share, in the first
quarter of 2023.
- Non-GAAP net loss was $0.4 million, or $0.01 per share,
compared to a non-GAAP net loss of $3.3 million, or $0.05 per
share, in the first quarter of 2023.
- Net cash used in operating activities was $19.7 million,
compared to net cash provided by operating activities of $1.5
million in the first quarter of 2023.
- Free cash flow was negative $20.5 million, a $21.1 million
decrease from positive free cash flow of $0.6 million in the first
quarter of 2023. The decrease is the result of the timing of two
items and is expected to normalize within the first half of 2024.
First, in the first quarter of 2024 we implemented a new billing
system that necessitated deferring March subscription billings into
April. This resulted in an increase in March accounts receivable,
and a corresponding decrease in free cash flow, of approximately
$15 million. Second, in the first quarter, we paid out our annual
employee bonuses, which amounted to approximately $7 million. In
prior years, annual bonuses were paid out in the second quarter.
Excluding the impact of both the delay in billing and the timing
difference of the bonus pay out, free cash flow would have been
positive for the first quarter of 2024.
- Dollar-Based Net Retention Rate (NRR) was 96% as of March 31,
2024.
- Dollar-Based Gross Retention Rate (GRR) was 92% as of March 31,
2024.
- Cash and cash equivalents plus short-term investments was $82.3
million as of March 31, 2024.
Recent Business Highlights:
- Integrations with practice management systems strengthens our
product market fit and increases the value our platform provides to
customers. We launched new and deepened integrations with
Athenahealth, DrChrono, and Patterson Veterinary-owned practice
information management systems NaVetor and IntraVet. Scoping and
development have started on our integrations with IDEXX-owned
practice information management systems ezyVet and Neo and we have
a product integration and commercial partnership agreement with
Prompt EMR.
- Promoted Marcus Bertilson to Chief Operating Officer from Chief
Strategy and Services Officer. Marcus previously served on the
leadership team at Thumbtack as the Senior Vice President of
Revenue and Strategy where he successfully led and scaled global
revenue, strategy, and customer-facing teams. Prior to Thumbtack,
Marcus was an engagement manager at McKinsey & Company where he
led global consultant teams to solve top management’s most
challenging strategic questions and helped them realize their most
significant opportunities.
- Hired David McNeil as Chief Revenue Officer. David joins Weave
with over 25 years of experience in scaling SaaS businesses,
leading sales, customer success, revenue operations, and payments
teams. He spent six years at HubSpot, where he was instrumental in
leading sales teams as the company grew from $90 million to nearly
$1 billion in annual recurring revenue. He also served as the Chief
Commercial Officer at Tebra, a leading automation platform for
independently owned healthcare practices as well as leadership
positions at Salesforce and Bank of America.
- Named the leading platform in the G2 Grid for Patient
Relationship Management. Weave also ranked first in 30 different
categories in G2’s Spring 2024 Report and featured prominently in
over 80 reports. Weave also received the 2024 Top Workplaces USA
award and has been named on the 2024 Shatter List by the Women Tech
Council, both for the third consecutive year.
Financial Second Quarter and Full Year 2024 Outlook
The company expects to achieve the following financial results
for the three months ending June 30, 2024, and full year ending
December 31, 2024:
Second Quarter
Full Year
(in millions)
Total revenue
$48.2 - $49.2
$197.0 - $200.0
Non-GAAP loss from operations
$(2.5) - $(1.5)
$(6.0) - $(2.0)
Weighted average share count
71.3
71.7
The guidance provided above constitutes forward-looking
statements and actual results may differ materially. Refer to the
“Forward-Looking Statements” safe harbor section below for
information on the factors that could cause our actual results to
differ materially from these forward-looking statements.
Non-GAAP loss from operations excludes estimates for, among
other things, stock-based compensation expense. A reconciliation of
this non-GAAP financial guidance measure to a corresponding GAAP
financial guidance measure is not available on a forward-looking
basis because we do not provide guidance on GAAP net loss from
operations and are not able to present the various reconciling cash
and non-cash items between GAAP loss from operations and non-GAAP
loss from operations without unreasonable effort. In particular,
stock-based compensation expense is impacted by our future hiring
and retention needs, as well as the future fair market value of our
common stock, all of which is difficult to predict and is subject
to change. The actual amount of these expenses during 2024 will
have a significant impact on our future GAAP financial results.
Webcast
The company will host a conference call and webcast for analysts
and investors on Wednesday, May 1, 2024, beginning at 4:30 p.m.
EST.
Individuals interested in listening to the conference call may
do so by dialing (412) 902-1020 or toll free at (877) 502-7186.
Please reference the following conference ID: 13745542. The live
webcast and a webcast replay of the conference call can be accessed
from the investor relations page of Weave’s website at
investors.getweave.com.
About Weave
Weave is the all-in-one customer experience and payments
software platform for small and medium-sized healthcare practices.
From the first phone call to the final invoice, Weave connects the
entire patient journey. Weave’s software solutions transform how
local healthcare practitioners attract, communicate with and engage
patients to grow their practice. In the past year, Weave has been
named a G2 leader in Patient Relationship Management, Patient
Engagement, Optometry, and Dental Practice Management software. To
learn more, visit getweave.com/newsroom/.
Forward-Looking Statements
This press release and the accompanying conference call contain
forward-looking statements including, among others, current
estimates of second quarter and full year 2024 revenue, non-GAAP
loss from operations, and statements regarding projected free cash
flow and in the quotes of our Chief Executive Officer.
These forward-looking statements involve risks and
uncertainties. If any of these risks or uncertainties materialize,
or if any of our assumptions prove incorrect, our actual results
could differ materially from the results expressed or implied by
these forward-looking statements. These risks and uncertainties
include risks associated with: our ability to attract new
customers, retain existing customers and increase our customers’
use of our platform; our ability to manage our growth; the impact
of unfavorable economic conditions and macroeconomic uncertainties
on our company; our ability to maintain and enhance our brand and
increase market awareness of our company, platform and products;
customer adoption of our platform and products; customer
acquisition costs and sales and marketing strategies; our ability
to achieve profitability in any future period; competition; our
ability to enhance our platform and products; interruptions in
service; and the risks described in the filings we make from time
to time with the Securities and Exchange Commission (SEC),
including the risks described under the heading “Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31,
2023, filed with the SEC on March 13, 2024, which should be read in
conjunction with our financial results and forward-looking
statements and is available on the SEC Filings section of the
Investor Relations page of our website at
investors.getweave.com/.
All forward-looking statements in this press release are based
on information available to us as of the date hereof, and we do not
assume any obligation to update the forward-looking statements
provided to reflect events that occur or circumstances that exist
after the date on which they were made.
Channels for Disclosure of Information
Weave Communications uses the investor relations page on our
website, blog posts on our website, press releases, public
conference calls, webcasts, our X (Twitter) feed (@getweave), our
Facebook page, and our LinkedIn page as the means of complying with
our disclosure obligations under Regulation FD. We encourage
investors, the media, and others to follow the channels listed
above, in addition to following Weave Communications’ press
releases, SEC filings, and public conference calls and webcasts,
and to review the information disclosed through such channels.
Supplemental Financial Information
Dollar-Based Net Revenue Retention (NRR)
For retention rate calculations, we use adjusted monthly revenue
(AMR), which is calculated for each location as the sum of (i) the
subscription component of revenue for each month and (ii) the
average of the trailing-three-month recurring payments revenue. To
calculate our NRR, we first identify the cohort of locations (the
Base Locations) that were active in a particular month (the Base
Month). We then divide AMR for the Base Locations in the same month
of the subsequent year (the Comparison Month), by AMR in the Base
Month to derive a monthly NRR. We derive our annual NRR as of any
date by taking a weighted average of the monthly net retention
rates over the trailing twelve months prior to such date.
Dollar-Based Gross Revenue Retention (GRR)
To calculate our GRR, we first identify the cohort of locations
(the Base Locations) that were under subscription in a particular
month (the Base Month). We then calculate the effect of reductions
in revenue from customer location terminations by measuring the
amount of AMR in the Base Month for Base Locations still under
subscription twelve months subsequent to the Base Month (Remaining
AMR). We then divide Remaining AMR for the Base Locations by AMR in
the Base Month for the Base Locations to derive a monthly gross
retention rate. We calculate GRR as of any date by taking a
weighted average of the monthly gross retention rates over the
trailing twelve months prior to such date. GRR reflects the effect
of customer locations that terminate their subscriptions, but does
not reflect changes in revenue due to revenue expansion, revenue
contraction, or addition of new customer locations.
Number of Locations
We measure locations as the total number of customer locations
under subscription active on the Weave platform as of the end of
each month. A single organization or customer with multiple
divisions, segments, offices or subsidiaries is counted as multiple
locations if they have entered into subscriptions for each
location.
As a reminder, we only provide customer location information on
an annual basis with annual and fourth quarter results and do not
provide this information with financial statements or earnings
releases covering interim periods.
Non-GAAP Financial Measures
In this press release, Weave Communications has provided
financial information that has not been prepared in accordance with
generally accepted accounting principles in the United States
(GAAP). We disclose the following historical non-GAAP financial
measures in this press release: non-GAAP net loss, non-GAAP net
loss margin, non-GAAP net loss per share, non-GAAP gross profit,
non-GAAP gross margin, non-GAAP operating expenses, non-GAAP loss
from operations, non-GAAP loss from operations margin, Adjusted
EBITDA and free cash flow. We use these non-GAAP financial measures
internally to analyze our financial results and evaluate our
ongoing operational performance. We believe that these non-GAAP
financial measures provide an additional tool for investors to use
in understanding and evaluating ongoing operating results and
trends in the same manner as our management and board of directors.
Our use of these non-GAAP financial measures has limitations as an
analytical tool, and you should not consider them in isolation or
as a substitute for analysis of our financial results as reported
under GAAP. Because of these and other limitations, you should
consider these non-GAAP financial measures along with other
GAAP-based financial performance measures, including various cash
flow metrics, operating income (loss), net income (loss), and our
GAAP financial results. We have provided a reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
measures in the tables included in this press release, and
investors are encouraged to review the reconciliation.
Non-GAAP net loss, non-GAAP net loss margin and non-GAAP net
loss per share
We define non-GAAP net loss as GAAP net loss adjusted to exclude
stock-based compensation expense, and non-GAAP net loss margin as
non-GAAP net loss as a percentage of revenue. Non-GAAP net loss per
share is calculated as non-GAAP net loss divided by the diluted
weighted-average shares outstanding.
Non-GAAP gross profit and non-GAAP gross margin
We define non-GAAP gross profit as GAAP gross profit adjusted to
exclude stock-based compensation expense, and non-GAAP gross margin
as non-GAAP gross profit as a percentage of revenue.
Non-GAAP operating expenses
We define non-GAAP operating expenses, in the aggregate or its
individual components (i.e., sales and marketing, research and
development or general and administrative), as the applicable GAAP
operating expenses adjusted to exclude the applicable stock-based
compensation expense.
Non-GAAP loss from operations and non-GAAP loss from
operations margin
We define non-GAAP loss from operations as GAAP loss from
operations less stock-based compensation expense, and non-GAAP loss
from operations margin as non-GAAP loss from operations as a
percentage of revenue.
Adjusted EBITDA
We define EBITDA as earnings before interest expense, interest
income, other income/expense, provision for income taxes,
depreciation, and amortization. Our depreciation adjustment
includes depreciation on operating fixed assets and we do not
adjust for amortization of finance lease right-of-use assets on
phone hardware provided to our customers. We further adjust EBITDA
to exclude stock-based compensation expense, a non-cash item. We
believe that Adjusted EBITDA provides management and investors
consistency and comparability with our past financial performance
and facilitates period-to-period comparisons of operations.
Additionally, management uses Adjusted EBITDA to measure our
financial and operational performance and prepare our budgets.
Free cash flow
We define free cash flow as net cash provided by (used in)
operating activities, less purchases of property and equipment and
capitalized internal-use software costs. We believe that free cash
flow is a useful indicator of liquidity that provides useful
information to management and investors, even if negative, as it
provides information about the amount of cash consumed by our
combined operating and investing activities. For example, as free
cash flow has in the past been negative, we have needed to access
cash reserves or other sources of capital for these
investments.
The foregoing non-GAAP financial measures have a number of
limitations. For example, the non-GAAP financial information
presented above may be determined or calculated differently by
other companies and may not be directly comparable to that of other
companies. In addition, free cash flow does not reflect our future
contractual commitments and the total increase or decrease of our
cash balance for a given period. Further, Adjusted EBITDA excludes
some costs, namely, non-cash stock-based compensation expense.
Therefore, Adjusted EBITDA does not reflect the non-cash impact of
stock-based compensation expense or working capital needs that will
continue for the foreseeable future. All of these limitations could
reduce the usefulness of these non-GAAP financial measures as
analytical tools.
WEAVE COMMUNICATIONS,
INC
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in thousands
except share amounts)
March 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
30,609
$
50,756
Short-term investments
51,714
58,088
Accounts receivable, net
19,018
3,511
Deferred contract costs, net
10,854
10,547
Prepaid expenses and other current
assets
7,527
6,876
Total current assets
119,722
129,778
Non-current assets:
Property and equipment, net
9,520
9,922
Operating lease right-of-use assets
40,495
41,318
Finance lease right-of-use assets
10,402
10,351
Deferred contract costs, net, less current
portion
9,110
8,622
Other non-current assets
925
1,021
TOTAL ASSETS
$
190,174
$
201,012
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
4,160
$
5,171
Accrued liabilities
13,937
18,491
Deferred revenue
39,842
38,850
Current portion of operating lease
liabilities
4,004
3,821
Current portion of finance lease
liabilities
6,417
6,520
Total current liabilities
68,360
72,853
Non-current liabilities:
Operating lease liabilities, less current
portion
42,069
43,080
Finance lease liabilities, less current
portion
6,309
6,122
Total liabilities
116,738
122,055
Stockholders' equity:
Preferred stock, $0.00001 par value per
share; 10,000,000 shares authorized, zero shares issued and
outstanding as of March 31, 2024 and December 31, 2023
—
—
Common stock, $0.00001 par value per
share; 500,000,000 shares authorized as of March 31, 2024 and
December 31, 2023; 70,980,371 and 70,116,357 shares issued and
outstanding as of March 31, 2024 and December 31, 2023,
respectively
—
—
Additional paid-in capital
343,496
341,514
Accumulated deficit
(269,870
)
(262,667
)
Accumulated other comprehensive income
(loss)
(190
)
110
Total stockholders' equity
73,436
78,957
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
190,174
$
201,012
WEAVE COMMUNICATIONS,
INC
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited, in thousands,
except share and per share data)
Three Months Ended March
31,
2024
2023
Revenue
$
47,173
$
39,565
Cost of revenue
14,186
13,031
Gross profit
32,987
26,534
Operating expenses:
Sales and marketing
19,630
17,218
Research and development
9,645
7,694
General and administrative
11,867
10,140
Total operating expenses
41,142
35,052
Loss from operations
(8,155
)
(8,518
)
Other income (expense):
Interest income
420
436
Interest expense
(319
)
(472
)
Other income (expense), net
865
715
Loss before income taxes
(7,189
)
(7,839
)
Provision for income taxes
(14
)
(20
)
Net loss
$
(7,203
)
$
(7,859
)
Net loss per share - basic and diluted
$
(0.10
)
$
(0.12
)
Weighted-average common shares outstanding
- basic and diluted
70,452,944
65,954,521
WEAVE COMMUNICATIONS,
INC
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
thousands)
Three Months Ended March
31,
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss
$
(7,203
)
$
(7,859
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities
Depreciation and amortization
3,045
3,045
Amortization of operating right-of-use
assets
972
938
Provision for losses on accounts
receivable
250
422
Amortization of deferred contract
costs
3,292
2,976
Loss on disposal of assets
1
3
Stock-based compensation
6,772
4,513
Net accretion of discounts on short-term
investments
(637
)
(687
)
Changes in operating assets and
liabilities:
Accounts receivable
(15,757
)
(177
)
Deferred contract costs
(4,087
)
(3,212
)
Prepaid expenses and other assets
(555
)
534
Accounts payable
(1,017
)
355
Accrued liabilities
(4,554
)
1,162
Operating lease liabilities
(977
)
(900
)
Deferred revenue
754
428
Net cash provided by (used in) operating
activities
(19,701
)
1,541
CASH FLOWS FROM INVESTING
ACTIVITIES
Maturities of short-term investments
23,770
13,000
Purchases of short-term investments
(16,821
)
(17,485
)
Purchases of property and equipment
(513
)
(620
)
Capitalized internal-use software
costs
(305
)
(334
)
Net cash provided by (used in) investing
activities
6,131
(5,439
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Principal payments on finance leases
(1,787
)
(1,960
)
Proceeds from stock option exercises
291
73
Payments for taxes related to net share
settlement of equity awards
(6,101
)
(753
)
Proceeds from the employee stock purchase
plan
1,020
622
Net cash used in financing activities
(6,577
)
(2,018
)
NET DECREASE IN CASH AND CASH
EQUIVALENTS
(20,147
)
(5,916
)
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD
50,756
61,997
CASH AND CASH EQUIVALENTS, END OF
PERIOD
$
30,609
$
56,081
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for
interest
$
319
$
472
Cash paid during the period for income
taxes
$
14
$
20
SUPPLEMENTAL DISCLOSURE OF NONCASH
INVESTING AND FINANCING ACTIVITIES:
Equipment purchases financed with accounts
payable
$
6
$
3
Finance lease liabilities arising from
obtaining finance lease right-of-use assets
$
1,871
$
1,928
Operating lease liabilities arising from
obtaining operating lease right-of-use assets
149
154
Unrealized gain (loss) on short-term
investments
$
(62
)
$
18
WEAVE COMMUNICATIONS,
INC
DISAGGREGATED REVENUE AND COST
OF REVENUE
(unaudited, in
thousands)
Three Months Ended March
31,
2024
2023
Subscription and payment
processing:
Revenue
$
45,092
$
37,692
Cost of revenue
(10,536
)
(8,978
)
Gross profit
$
34,556
$
28,714
Gross margin
76.6
%
76.2
%
Onboarding:
Revenue
$
960
$
784
Cost of revenue
(1,832
)
(2,125
)
Gross profit
$
(872
)
$
(1,341
)
Gross margin
(90.8
)%
(171.0
)%
Hardware:
Revenue
$
1,121
$
1,089
Cost of revenue
(1,818
)
(1,928
)
Gross profit
$
(697
)
$
(839
)
Gross margin
(62.2
)%
(77.0
)%
WEAVE COMMUNICATIONS,
INC
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands,
except share and per share data)
The following tables reconcile the
specific items excluded from GAAP in the calculation of non-GAAP
financial measures for the periods indicated below
Non-GAAP gross profit
Three Months Ended March
31,
2024
2023
Gross profit
$
32,987
$
26,534
Stock-based compensation add back
239
213
Non-GAAP gross profit
$
33,226
$
26,747
GAAP gross margin
69.9
%
67.1
%
Non-GAAP gross margin
70.4
%
67.6
%
Non-GAAP operating expenses
Three Months Ended March
31,
2024
2023
Sales and marketing
$
19,630
$
17,218
Stock-based compensation excluded
(1,151
)
(964
)
Non-GAAP sales and marketing
$
18,479
$
16,254
Research and development
$
9,645
$
7,694
Stock-based compensation excluded
(1,898
)
(930
)
Non-GAAP research and development
$
7,747
$
6,764
General and administrative
$
11,867
$
10,140
Stock-based compensation excluded
(3,484
)
(2,406
)
Non-GAAP general and administrative
$
8,383
$
7,734
Non-GAAP loss from operations
Three Months Ended March
31,
2024
2023
Loss from operations
$
(8,155
)
$
(8,518
)
Stock-based compensation add back
6,772
4,513
Non-GAAP loss from operations
$
(1,383
)
$
(4,005
)
GAAP loss from operations margin
(17.3
)%
(21.5
)%
Non-GAAP loss from operations margin
(2.9
)%
(10.1
)%
Non-GAAP net loss
Three Months Ended March
31,
2024
2023
Net loss
$
(7,203
)
$
(7,859
)
Stock-based compensation add back
6,772
4,513
Non-GAAP net loss
$
(431
)
$
(3,346
)
GAAP net loss margin
(15.3
)%
(19.9
)%
Non-GAAP net loss margin
(0.9
)%
(8.5
)%
GAAP net loss per share - basic and
diluted
$
(0.10
)
$
(0.12
)
Non-GAAP net loss per share - basic and
diluted
$
(0.01
)
$
(0.05
)
Weighted-average common shares outstanding
- basic and diluted
70,452,944
65,954,521
Free Cash Flow
Three Months Ended March
31,
2024
2023
Net cash provided by (used in) operating
activities
$
(19,701
)
$
1,541
Less: Purchases of property and
equipment
(513
)
(620
)
Less: Capitalized internal-use software
costs
(305
)
(334
)
Free cash flow
$
(20,519
)
$
587
Adjusted EBITDA
Three Months Ended March
31,
2024
2023
Net loss
$
(7,203
)
$
(7,859
)
Interest expense
319
472
Provision for income taxes
14
20
Interest income
(420
)
(436
)
Other income/expense, net
(865
)
(715
)
Depreciation
609
592
Amortization
416
299
Stock-based compensation
6,772
4,513
Adjusted EBITDA
$
(358
)
$
(3,114
)
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version on businesswire.com: https://www.businesswire.com/news/home/20240501682513/en/
Investor Relations Contact Mark McReynolds Head of
Investor Relations ir@getweave.com
Media Contact Natalie House Senior Director of
Content & Communications pr@getweave.com
Weave Communications (NYSE:WEAV)
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Weave Communications (NYSE:WEAV)
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から 5 2023 まで 5 2024