NYSE$WEAV

Weave Communications Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Achieved revenue growth and margin improvements.

Weave reported a strong start to the year with solid top-line performance and significant improvements in gross and operating margin and adjusted EBITDA. The company achieved greater than 70% non-GAAP gross margin for the first time.

  • Total revenue was $47.2 million, representing a 19.2% year-over-year increase.
  • GAAP gross margin was 69.9%, compared to 67.1% in the first quarter of 2023.
  • Non-GAAP gross margin was 70.4%, compared to 67.6% 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.

Headline financials

Total Revenue

$47.2M

Previous: $39.6M+19.2%
EPS

-$0.10

Previous: -$0.05-100.0%
Adjusted EBITDA

-$358K

No prior period
Capital Expenditures

-$513K

Previous: -$620K+17.3%
Free Cash Flow

-$7.72M

Previous: -$8.48M+9.0%
Net Income

-$7.2M

Previous: -$7.86M+8.3%
Operating Income

-$8.16M

Previous: -$8.52M+4.3%
Gross Profit

$33M

Previous: $26.5M+24.3%
Cash & Equivalents

$30.6M

Previous: $56.1M-45.4%
Total Assets

$190M

Previous: $206M-7.7%
R&D Expense

$9.65M

No prior period
Stock-Based Comp

$6.77M

Previous: $4.51M+50.1%

Revenue & EPS history

Weave · Revenue · Quarterly

$47.2M

Q1 2024+19.2%vs Q1 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Weave · $43.5M total across 3 segments · Q3 2023

  • Subscription and payment processing
    $41.6M+19.1%
  • Phone Hardware
    $1.19M+17.5%
  • Onboarding
    $757K+172.3%

Forward guidance

The company expects to achieve the following financial results for the three months ending June 30, 2024, and full year ending December 31, 2024:

Tailwinds

  • Second Quarter Total revenue $48.2 - $49.2 million
  • Full Year Total revenue $197.0 - $200.0 million
  • Second Quarter Non-GAAP loss from operations $(2.5) - $(1.5) million
  • Full Year Non-GAAP loss from operations $(6.0) - $(2.0) million
  • Weighted average share count 71.3 million

Headwinds

  • Second Quarter Non-GAAP loss from operations $(2.5) - $(1.5) million
  • Full Year Non-GAAP loss from operations $(6.0) - $(2.0) million
  • Actual results could differ materially
  • 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

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 2024

Historical avgQ1 2024

-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

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