NYSE$WEAV

Weave Communications Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Weave's Q4 2023 earnings showcased strong revenue growth and improved financial performance.

Weave reported a 21.2% year-over-year increase in total revenue for the fourth quarter, reaching $45.7 million. The company also saw improvements in gross margin, operating income, net loss, and free cash flow compared to the same period last year. For the full year, revenue grew by 19.9% to $170.5 million, with positive net cash from operating activities and free cash flow.

  • Total revenue for Q4 2023 reached $45.7 million, a 21.2% increase year-over-year.
  • GAAP gross margin improved to 69.1% in Q4 2023, compared to 66.2% in Q4 2022.
  • Net cash from operating activities was positive $3.7 million in Q4 2023, up from negative $2.8 million last year.
  • Free cash flow was positive $2.9 million in Q4 2023, up from negative $3.8 million last year.

Headline financials

Total Revenue

$45.7M

Previous: $37.7M+21.2%
EPS (adj)

-$0.01

Previous: -$0.06+83.3%
Adjusted EBITDA

-$789K

No prior period
Capital Expenditures

-$807K

Previous: $704K-214.6%
Net Income

-$7.04M

Previous: -$9.27M+24.0%
Operating Income

-$7.99M

Previous: -$9.75M+18.0%
Gross Profit

$31.6M

Previous: $24.9M+26.7%
R&D Expense

$9.13M

No prior period
Stock-Based Comp

$6.25M

Previous: $5.53M+13.1%

Revenue & EPS history

Weave · Revenue · Quarterly

$45.7M

Q4 2023+21.2%vs Q4 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 to achieve revenue between $45.2 million and $46.2 million for the first quarter of 2024 and between $194.0 million and $198.0 million for the full year. Non-GAAP loss from operations is expected to be between $(2.5) million and $(1.5) million for the first quarter and between $(6.0) million and $(2.0) million for the full year.

Tailwinds

  • Revenue guidance for Q1 2024 is between $45.2 million and $46.2 million.
  • Full year 2024 revenue is projected to be between $194.0 million and $198.0 million.
  • Non-GAAP loss from operations for Q1 2024 is expected to be between $(2.5) million and $(1.5) million.
  • Full year 2024 non-GAAP loss from operations is expected to be between $(6.0) million and $(2.0) million.
  • Weighted average share count is expected to be 70.5 million for Q1 2024 and 71.7 million for the full year.

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, as well as the future fair market value of 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 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 Q4 2023

Historical avgQ4 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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