NYSE$WEAV

Weave Communications Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Weave's financial performance improved with revenue increase and margin expansion.

Weave Communications reported Q4 2022 financial results with a total revenue of $37.7 million, up 18% year-over-year. The company showed significant improvement in gross and operating margins and is focused on operational performance and an accelerated path to breakeven.

  • Total revenue was $37.7 million, up 18% year-over-year.
  • GAAP loss from operations was $9.7 million, improved from $13.6 million in Q4 2021.
  • Non-GAAP loss from operations was $4.2 million, improved from $10.6 million in Q4 2021.
  • Dollar-Based Net Retention Rate (NRR) was 99%.

Headline financials

Total Revenue

$37.7M

Previous: $31.8M+18.4%
EPS (adj)

-$0.06

Previous: -$0.26+76.9%
Capital Expenditures

$704K

Previous: $1.65M-57.2%
Free Cash Flow

-$3.55M

Previous: -$11.7M+69.7%
Net Income

-$9.27M

Previous: -$14.1M+34.1%
Operating Income

-$9.75M

Previous: -$13.6M+28.6%
Gross Profit

$24.9M

Previous: $18.2M+37.3%
Cash & Equivalents

$62M

Previous: $136M-54.4%
Total Assets

$208M

Previous: $187M+11.1%
Stock-Based Comp

$5.53M

Previous: $3.04M+81.5%

Revenue & EPS history

Weave · Revenue · Quarterly

$37.7M

Q4 2022+18.4%vs Q4 2021
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 revenue between $37.5 million and $38.5 million for the first quarter of 2023 and between $156.0 million and $160.0 million for the full year 2023. Non-GAAP loss from operations is expected to be between $(4.5) million and $(5.5) million for Q1 2023 and between $(21.3) million and $(17.3) million for the full year 2023.

Tailwinds

  • Expects Q1 2023 revenue between $37.5 million and $38.5 million.
  • Expects full year 2023 revenue between $156.0 million and $160.0 million.
  • Expects Q1 2023 Non-GAAP loss from operations between $(4.5) million and $(5.5) million.
  • Expects full year 2023 Non-GAAP loss from operations between $(21.3) million and $(17.3) million.
  • Weighted average share count for Q1 is expected to be 66.0 million and for full year 2023 is expected to be 68.0 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.
  • A 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.
  • The 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 Q4 2022

Historical avgQ4 2022

-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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