NYSE$WEAV

Weave Communications Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Weave Communications' Q1 2023 financial results were announced, demonstrating strong operating results and accelerating revenue growth.

Weave Communications reported a 19% year-over-year increase in total revenue, reaching $39.6 million for Q1 2023. The company achieved positive cash flow from operations and positive free cash flow, marking progress towards profitability. Significant improvements were also noted in gross and operating margins.

  • Total revenue for the first quarter reached $39.6 million, reflecting a 19% increase compared to the previous year.
  • The company reported positive free cash flow of $0.6 million, a significant improvement from negative $5.1 million in the same quarter last year.
  • GAAP gross margin increased to 67.1%, compared to 58.7% in the first quarter of 2022.
  • Weave launched Response Assistant and Bulk Texting to enhance customer communication and engagement.

Headline financials

Total Revenue

$39.6M

Previous: $33.3M+18.9%
EPS (adj)

-$0.05

Previous: -$0.16+68.8%
Capital Expenditures

-$620K

Previous: -$541K-14.6%
Free Cash Flow

-$8.48M

Previous: -$14.4M+41.0%
Net Income

-$7.86M

Previous: -$13.8M+43.2%
Operating Income

-$8.52M

Previous: -$13.5M+36.9%
Gross Profit

$26.5M

Previous: $19.5M+35.9%
Cash & Equivalents

$56.1M

Previous: $129M-56.5%
Total Assets

$206M

Previous: $226M-8.9%
Stock-Based Comp

$4.51M

Previous: $3.43M+31.8%

Revenue & EPS history

Weave · Revenue · Quarterly

$39.6M

Q1 2023+18.9%vs Q1 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Weave · $39.6M total across 3 segments · Q1 2023

  • Subscription and payment processing
    $37.7M+18.0%
  • Phone Hardware
    $1.09M+2.7%
  • Onboarding
    $784K+199.2%

Forward guidance

The company provided financial outlook for the second quarter and full year 2023.

Tailwinds

  • Total revenue for Q2 2023 is expected to be between $39.5 million and $40.5 million.
  • Full year 2023 total revenue is projected to range from $160.5 million to $163.5 million.
  • Non-GAAP loss from operations for Q2 2023 is expected to be between $(5.0) million and $(4.0) million.
  • Full year 2023 non-GAAP loss from operations is forecasted to be between $(18.5) million and $(15.5) million.
  • Weighted average share count is expected to be 66.8 million for Q2 2023 and 67.3 million for the full year.

Headwinds

  • Second Quarter Non-GAAP loss from operations is expected
  • Full year Non-GAAP loss from operations is expected
  • Stock-based compensation expense is impacted by our future hiring and retention needs
  • Stock-based compensation expense is impacted by the future fair market value of our common stock
  • The actual amount of these expenses during 2023 will have a significant impact on our future GAAP financial results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.9%

Avg return

Earnings day

-3.2%

Avg return

5 days after

-3.3%

Avg return

30 days after

39%

9 / 23 earnings

Positive

+28.0%

Q1 2023

Best reaction

-19.1%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+22.4%+22.6%
Q4 2025-4.7%-14.0%-16.7%
Q3 2025-0.6%-0.9%-3.0%
Q1 2025-11.5%-2.5%-9.3%
Q4 2024-15.6%-24.1%-30.7%
Q3 2024+3.9%-3.6%+1.3%
Q2 2024+6.4%-0.1%+10.2%
Q1 2024-19.1%-22.1%-19.1%
Q4 2023-11.9%+2.9%-6.0%
Q3 2023+18.4%+15.9%+37.7%
Q2 2023-4.8%-12.5%-10.4%
Q1 2023+28.0%+30.4%+83.5%
Q4 2022+10.5%+1.8%-2.2%
Q3 2022-10.1%-10.5%-27.4%
Q2 2021+2.2%-0.8%+7.8%
Q2 2022+7.2%+0.0%+16.9%
Q1 2021+0.2%+3.4%-7.4%
Q1 2022+15.0%-7.2%+10.0%
Q4 2019-2.7%-5.5%-20.7%
Q4 2021-18.9%-34.4%-38.7%
Q4 2020-3.7%-1.6%-24.0%
Q3 2020-3.7%-1.6%-24.0%
Q3 2021-4.2%-7.8%-26.0%
Q2 2020
Q1 2020

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro