NYSE$WEAV

Weave Communications Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Second quarter results for 2024 were announced, showing revenue growth and improved profitability.

Weave reported a strong second quarter with a 21.4% increase in revenue year-over-year, significant improvements in gross and operating margins, and positive adjusted EBITDA for the first time. The company's financial performance reflects the continued demand for its software and payments platform.

  • Total revenue increased by 21.4% year-over-year to $50.6 million.
  • GAAP gross margin improved to 71.4%, up from 67.3% in the second quarter of 2023.
  • Net cash provided by operating activities was $22.7 million, a significant increase from $1.6 million in the same quarter last year.
  • Free cash flow reached $21.2 million, up $20.3 million from $0.9 million in the second quarter of 2023.

Headline financials

Total Revenue

$50.6M

Previous: $41.7M+21.4%
EPS (adj)

-$0.12

Previous: -$0.05-139.9%
Capital Expenditures

-$1.25M

Previous: -$838K-49.6%
Free Cash Flow

-$9.81M

Previous: -$9.83M+0.2%
Net Income

-$8.55M

Previous: -$8.99M+4.8%
Operating Income

-$9.26M

Previous: -$9.83M+5.9%
Gross Profit

$36.1M

Previous: $28M+28.8%
Cash & Equivalents

$51.7M

Previous: $52.1M-0.9%
Total Assets

$191M

Previous: $203M-5.6%
R&D Expense

$9.96M

No prior period
Stock-Based Comp

$8.29M

Previous: $5.88M+41.1%

Revenue & EPS history

Weave · Revenue · Quarterly

$50.6M

Q2 2024+21.4%vs Q2 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 revenue between $50.7 million and $51.7 million for the third quarter of 2024 and between $201.0 million and $203.0 million for the full year 2024. Non-GAAP loss from operations is expected to be between $(1.2) million and $(0.2) million for the third quarter and between $(3.8) million and $(1.8) million for the full year.

Tailwinds

  • Revenue is expected to be between $50.7 million and $51.7 million for Q3 2024.
  • Full year revenue is projected to be between $201.0 million and $203.0 million.
  • Non-GAAP loss from operations is expected to improve to between $(1.2) million and $(0.2) million for Q3 2024.
  • The company anticipates a non-GAAP loss from operations between $(3.8) million and $(1.8) million for the full year.
  • Weighted average share count is expected to be 72.1 million for Q3 2024 and 71.7 million for the full year.

Headwinds

  • The guidance constitutes forward-looking statements and actual results may differ materially.
  • Non-GAAP loss from operations excludes estimates for 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.
  • Stock-based compensation expense is impacted by future hiring and retention needs, as well as the future fair market value of the company's 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 the company's 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 Q2 2024

Historical avgQ2 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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