NYSE$WEAV

Weave Communications Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Revenue increased, customer base grew, and free cash flow improved.

Weave reported a strong Q3 2023 with revenue growth of 20.2% year-over-year, exceeding 30,000 customer locations. The company also showed improvements in net cash from operating activities and free cash flow.

  • Total revenue reached $43.5 million, a 20.2% increase year-over-year.
  • Customer base expanded to over 30,000 locations.
  • Net cash from operating activities was $3.3 million, a significant improvement from the previous year.
  • Free cash flow turned positive at $2.1 million, up from negative $4.6 million last year.

Headline financials

Total Revenue

$43.5M

Previous: $36.2M+20.2%
EPS (adj)

-$0.01

Previous: -$0.10+90.0%
Capital Expenditures

-$1.51M

Previous: -$1.19M-27.0%
Free Cash Flow

-$8.66M

Previous: -$13M+33.4%
Net Income

-$7.15M

Previous: -$11.8M+39.5%
Operating Income

-$8.02M

Previous: -$11.9M+32.3%
Gross Profit

$29.9M

Previous: $23.2M+29.0%
Cash & Equivalents

$63.3M

Previous: $118M-46.5%
Total Assets

$211M

Previous: $213M-0.8%
R&D Expense

$8.63M

No prior period
Stock-Based Comp

$6.19M

Previous: $5.32M+16.3%

Revenue & EPS history

Weave · Revenue · Quarterly

$43.5M

Q3 2023+20.2%vs Q3 2022
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 total revenue between $43.5 million and $44.5 million and non-GAAP loss from operations between $(3.0) million and $(2.0) million for the fourth quarter of 2023.

Tailwinds

  • Total revenue is expected to be between $43.5 million and $44.5 million.
  • Full year total revenue is projected to be between $168.3 million and $169.3 million.
  • Non-GAAP loss from operations is expected to be between $(3.0) million and $(2.0) million.
  • Weighted average share count is expected to be 69.6 million.
  • Full year non-GAAP loss from operations is expected to be between $(12.8) million and $(11.8) million.

Headwinds

  • Guidance constitutes forward-looking statements and actual results may differ materially.
  • Non-GAAP loss from operations excludes estimates for stock-based compensation expense.
  • Reconciliation of 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.
  • Future fair market value of common stock is difficult to predict and is subject to change.

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 Q3 2023

Historical avgQ3 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

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