Weave Announces Third Quarter 2024 Financial Results

Rhea-AI Summary

Weave (NYSE: WEAV) reported strong Q3 2024 results with total revenue of $52.4 million, up 20.3% year-over-year. The company achieved positive non-GAAP operating income of $1.4 million for the first time in its history. GAAP gross margin improved to 72.0%, while non-GAAP gross margin reached 72.5%. Free cash flow increased to $3.5 million from $2.1 million last year. The company unveiled a new AI-powered platform featuring Weave Assistant and Call Intelligence products. For Q4 2024, Weave expects revenue between $52.6-$53.6 million and non-GAAP operating income of $0.9-$1.9 million.

Positive

• Revenue growth of 20.3% YoY to $52.4 million
• First-time positive non-GAAP operating income of $1.4 million
• GAAP gross margin improved 330 basis points to 72.0%
• Free cash flow increased to $3.5 million from $2.1 million
• Strong cash position of $98.2 million

Negative

• GAAP net loss of $5.9 million
• Dollar-Based Net Retention Rate declined to 98%
• Dollar-Based Gross Retention Rate at 92%

Insights

Financial Analyst

The Q3 results demonstrate significant operational improvements and a pivotal shift towards profitability. Key highlights include:

• $52.4M revenue with 20.3% YoY growth shows strong market traction
• First-time achievement of non-GAAP operating profitability at $1.4M
• Improved gross margins to 72.0% GAAP and 72.5% non-GAAP
• Positive free cash flow of $3.5M, up 67% YoY

The 98% Net Retention Rate and 92% Gross Retention Rate indicate stable customer relationships, though there's room for improvement. The strong cash position of $98.2M provides ample runway for growth initiatives. The Q4 guidance suggests continued momentum with projected revenue of $52.6-53.6M and sustained profitability.

Tech Industry Analyst

The launch of the AI-powered Weave platform represents a strategic transformation that strengthens their competitive position in the healthcare software market. The integration of AI capabilities across core functionalities - from review responses to call intelligence - addresses key pain points for healthcare practices. The platform's focus on automation and efficiency through features like message tagging and voicemail transcription directly impacts operational costs for clients.

The modernized user interface and reduced workflow complexity should drive higher user adoption and satisfaction, potentially improving retention metrics. This technological advancement positions Weave to capture larger market share in the growing healthcare CRM space while differentiating from traditional payment processors.

• Third quarter total revenue of $52.4 million, up 20.3% year over year.
• GAAP gross margin of 72.0%, up 330 basis points year over year.
• Non-GAAP gross margin of 72.5%, up 320 basis points year over year.
• GAAP Operating Loss of $6.6 million, an improvement of $1.4 million year over year.
• Non-GAAP Operating Income of $1.4 million, an improvement of $3.2 million year over year.
• Third quarter net cash provided by operating activities of $4.5 million, up from net cash provided by operating activities of $3.3 million last year.
• Free cash flow of $3.5 million, up from free cash flow of $2.1 million last year.

LEHI, Utah--(BUSINESS WIRE)-- Weave (NYSE: WEAV), a leading all-in-one customer experience and payments software platform for small and medium-sized healthcare businesses, today announced its financial results for the third quarter ended September 30, 2024.

“We delivered another strong quarter, with solid top-line performance and substantial improvements in gross margins, operating margins, and free cash flow. Notably, we achieved another major performance milestone by reporting positive non-GAAP operating income for the first time in the company’s history,” said CEO Brett White. “This success reflects our commitment to putting our customers first and delivering innovative solutions that meet their needs.”

Third Quarter 2024 Financial Highlights

• Total revenue was $52.4 million, representing a 20.3% year-over-year increase compared to $43.5 million in the third quarter of 2023.
• GAAP gross margin was 72.0%, compared to a GAAP gross margin of 68.7% in the third quarter of 2023.
• Non-GAAP gross margin was 72.5%, compared to a non-GAAP gross margin of 69.3% in the third quarter of 2023.
• GAAP loss from operations was $6.6 million, compared to a GAAP loss from operations of $8.0 million in the third quarter of 2023.
• Non-GAAP income from operations was $1.4 million, compared to a non-GAAP loss from operations of $1.8 million in the third quarter of 2023.
• GAAP net loss was $5.9 million, or $0.08 per share, compared to a GAAP net loss of $7.1 million, or $0.10 per share, in the third quarter of 2023.
• Non-GAAP net income was $2.1 million, or $0.03 per share, compared to a non-GAAP net loss of $1.0 million, or $0.01 per share, in the third quarter of 2023.
• Net cash provided by operating activities was $4.5 million, compared to net cash provided by operating activities of $3.3 million in the third quarter of 2023.
• Free cash flow was $3.5 million, compared to $2.1 million in the third quarter of 2023.
• Dollar-Based Net Retention Rate (NRR) was 98% as of September 30, 2024.
• Dollar-Based Gross Retention Rate (GRR) was 92% as of September 30, 2024.
• Cash and cash equivalents plus short-term investments was $98.2 million as of September 30, 2024.

Recent Business Highlights:

• Unveiled the new AI-powered Weave platform, a milestone that holds significant strategic importance for both Weave and our customers. Now available across all customer locations, this platform strengthens our market position with an advanced technology infrastructure that accelerates innovation. This scalable platform integrates the AI-powered Weave Assistant throughout the app, which helps craft personalized responses to reviews, write professional branded emails, and automate tasks like message tagging and voicemail transcriptions.
• The new AI-powered Weave platform powers our newly launched Call Intelligence product, which leverages a custom AI model to extract actionable insights from call data. The new Weave platform features a modern user interface that prioritizes versatility and ease of use, streamlining daily tasks with fewer steps and clicks.

Financial Fourth Quarter and Full Year 2024 Outlook

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

	Fourth Quarter	Full Year
	(in millions)
Total revenue	$52.6 - $53.6	$202.7 - $203.7
Non-GAAP income from operations	$0.9 - $1.9	$0.0 - $1.0
Weighted average share count	72.7	71.6

The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Non-GAAP income from operations excludes estimates for, among other things, 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 because we do not provide guidance on GAAP income (loss) from operations and are not able to present the various reconciling cash and non-cash items between GAAP income (loss) from operations and non-GAAP income from operations without unreasonable effort. In particular, stock-based compensation expense is impacted by our future hiring and retention needs, as well as the future fair market value of our 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 our future GAAP financial results.

Webcast

The company will host a conference call and webcast for analysts and investors on Wednesday, October 30, 2024, beginning at 4:30 p.m. EDT.

Individuals interested in listening to the conference call may do so by dialing (862) 298-0702 or toll free at (888) 645-4404. Please reference the following conference ID: 13749491. The live webcast and a webcast replay of the conference call can be accessed from the investor relations page of Weave’s website at investors.getweave.com.

About Weave

Weave is the all-in-one customer experience and payments software platform for small and medium-sized healthcare practices. From the first phone call to the final invoice, Weave connects the entire patient journey. Weave’s software solutions transform how local healthcare practitioners attract, communicate with and engage patients to grow their practice. In the past year, Weave has been named a G2 leader in Patient Relationship Management, Patient Engagement, Optometry, and Dental Practice Management software. To learn more, visit getweave.com/newsroom/.

Forward-Looking Statements

This press release and the accompanying conference call contain forward-looking statements including, among others, current estimates of fourth quarter and full year 2024 revenue and non-GAAP income from operations, and statements regarding our addressable market in the quotes of our Chief Executive Officer.

These forward-looking statements involve risks and uncertainties. If any of these risks or uncertainties materialize, or if any of our assumptions prove incorrect, our actual results could differ materially from the results expressed or implied by these forward-looking statements. These risks and uncertainties include risks associated with: our ability to attract new customers, retain existing customers and increase our customers’ use of our platform; our ability to manage our growth; the impact of unfavorable economic conditions and macroeconomic uncertainties on our company; our ability to maintain and enhance our brand and increase market awareness of our company, platform and products; customer adoption of our platform and products and enhancements thereto; customer acquisition costs and sales and marketing strategies; our ability to achieve profitability in any future period; competition; our ability to enhance our platform and products; interruptions in service; and the risks described in the filings we make from time to time with the Securities and Exchange Commission (SEC), including the risks described under the heading “Risk Factors” in our Quarterly Report on Form 10-Q for the three months ended June 30, 2024, filed with the SEC on August 7, 2024, which should be read in conjunction with our financial results and forward-looking statements and is available on the SEC Filings section of the Investor Relations page of our website at investors.getweave.com/.

All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Channels for Disclosure of Information

Weave Communications uses the investor relations page on our website, blog posts on our website, press releases, public conference calls, webcasts, our X (Twitter) feed (@getweave), our Facebook page, and our LinkedIn page as the means of complying with our disclosure obligations under Regulation FD. We encourage investors, the media, and others to follow the channels listed above, in addition to following Weave Communications’ press releases, SEC filings, and public conference calls and webcasts, and to review the information disclosed through such channels.

Supplemental Financial Information

Dollar-Based Net Revenue Retention (NRR)

For retention rate calculations, we use adjusted monthly revenue (AMR), which is calculated for each location as the sum of (i) the subscription component of revenue for each month and (ii) the average of the trailing-three-month recurring payments revenue. To calculate our NRR, we first identify the cohort of locations (the Base Locations) that were active in a particular month (the Base Month). We then divide AMR for the Base Locations in the same month of the subsequent year (the Comparison Month), by AMR in the Base Month to derive a monthly NRR. We derive our annual NRR as of any date by taking a weighted average of the monthly net retention rates over the trailing twelve months prior to such date.

Dollar-Based Gross Revenue Retention (GRR)

To calculate our GRR, we first identify the cohort of locations (the Base Locations) that were under subscription in a particular month (the Base Month). We then calculate the effect of reductions in revenue from customer location terminations by measuring the amount of AMR in the Base Month for Base Locations still under subscription twelve months subsequent to the Base Month (Remaining AMR). We then divide Remaining AMR for the Base Locations by AMR in the Base Month for the Base Locations to derive a monthly gross retention rate. We calculate GRR as of any date by taking a weighted average of the monthly gross retention rates over the trailing twelve months prior to such date. GRR reflects the effect of customer locations that terminate their subscriptions, but does not reflect changes in revenue due to revenue expansion, revenue contraction, or addition of new customer locations.

Number of Locations

We measure locations as the total number of customer locations under subscription active on the Weave platform as of the end of each month. A single organization or customer with multiple divisions, segments, offices or subsidiaries is counted as multiple locations if they have entered into subscriptions for each location.

As a reminder, we only provide customer location information on an annual basis with annual and fourth quarter results and do not provide this information with financial statements or earnings releases covering interim periods.

Non-GAAP Financial Measures

In this press release, Weave Communications has provided financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). We disclose the following historical non-GAAP financial measures in this press release: non-GAAP net income (loss), non-GAAP net income (loss) margin, non-GAAP net income (loss) per share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP income (loss) from operations margin, Adjusted EBITDA and free cash flow. We use these non-GAAP financial measures internally to analyze our financial results and evaluate our ongoing operational performance. We believe that these non-GAAP financial measures provide an additional tool for investors to use in understanding and evaluating ongoing operating results and trends in the same manner as our management and board of directors. Our use of these non-GAAP financial measures has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under GAAP. Because of these and other limitations, you should consider these non-GAAP financial measures along with other GAAP-based financial performance measures, including various cash flow metrics, operating income (loss), net income (loss), and our GAAP financial results. We have provided a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures in the tables included in this press release, and investors are encouraged to review the reconciliation.

Non-GAAP net income (loss), non-GAAP net income (loss) margin and non-GAAP net income (loss) per share

We define non-GAAP net income (loss) as GAAP net loss adjusted to exclude stock-based compensation expense, and non-GAAP net income (loss) margin as non-GAAP net income (loss) as a percentage of revenue. Non-GAAP net income (loss) per share is calculated as non-GAAP net income (loss) divided by the diluted weighted-average shares outstanding.

Non-GAAP gross profit and non-GAAP gross margin

We define non-GAAP gross profit as GAAP gross profit adjusted to exclude stock-based compensation expense, and non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

Non-GAAP operating expenses

We define non-GAAP operating expenses, in the aggregate or its individual components (i.e., sales and marketing, research and development or general and administrative), as the applicable GAAP operating expenses adjusted to exclude the applicable stock-based compensation expense.

Non-GAAP income (loss) from operations and non-GAAP income (loss) from operations margin

We define non-GAAP income (loss) from operations as GAAP loss from operations less stock-based compensation expense, and non-GAAP income (loss) from operations margin as non-GAAP income (loss) from operations as a percentage of revenue.

Adjusted EBITDA

We define EBITDA as earnings before interest expense, interest income, other income/expense, provision for income taxes, depreciation, and amortization. Our depreciation adjustment includes depreciation on operating fixed assets and we do not adjust for amortization of finance lease right-of-use assets on phone hardware provided to our customers. Our amortization adjustment includes the amortization of capitalized internal-use software and cloud computing costs. We further adjust EBITDA to exclude stock-based compensation expense, a non-cash item. We believe that Adjusted EBITDA provides management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. Additionally, management uses Adjusted EBITDA to measure our financial and operational performance and prepare our budgets.

Free cash flow

We define free cash flow as net cash provided by (used in) operating activities, less purchases of property and equipment and capitalized internal-use software costs. We believe that free cash flow is a useful indicator of liquidity that provides useful information to management and investors, even if negative, as it provides information about the amount of cash consumed by our combined operating and investing activities. For example, as free cash flow has in the past been negative, we have needed to access cash reserves or other sources of capital for these investments.

The foregoing non-GAAP financial measures have a number of limitations. For example, the non-GAAP financial information presented above may be determined or calculated differently by other companies and may not be directly comparable to that of other companies. In addition, free cash flow does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period. Further, Adjusted EBITDA excludes some costs, namely, non-cash stock-based compensation expense. Therefore, Adjusted EBITDA does not reflect the non-cash impact of stock-based compensation expense or working capital needs that will continue for the foreseeable future. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools.

WEAVE COMMUNICATIONS, INC CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands except share amounts)
	September 30, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	51,103			$	50,756
Short-term investments		47,055				58,088
Accounts receivable, net		8,364				3,511
Deferred contract costs, net		11,311				10,547
Prepaid expenses and other current assets		4,684				6,876
Total current assets		122,517				129,778
Non-current assets:
Property and equipment, net		8,848				9,922
Operating lease right-of-use assets		38,518				41,318
Finance lease right-of-use assets		10,334				10,351
Deferred contract costs, net, less current portion		9,397				8,622
Other non-current assets		2,413				1,021
TOTAL ASSETS	$	192,027			$	201,012
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	7,597			$	5,171
Accrued liabilities		18,682				18,491
Deferred revenue		40,221				38,850
Current portion of operating lease liabilities		4,081				3,821
Current portion of finance lease liabilities		6,358				6,520
Total current liabilities		76,939				72,853
Non-current liabilities:
Operating lease liabilities, less current portion		40,006				43,080
Finance lease liabilities, less current portion		6,246				6,122
Total liabilities		123,191				122,055
Stockholders' equity:
Preferred stock, $0.00001 par value per share; 10,000,000 shares authorized, zero shares issued and outstanding as of September 30, 2024 and December 31, 2023		—				—
Common stock, $0.00001 par value per share; 500,000,000 shares authorized as of September 30, 2024 and December 31, 2023; 72,517,681 and 70,116,357 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		—				—
Additional paid-in capital		353,263				341,514
Accumulated deficit		(284,302	)			(262,667	)
Accumulated other comprehensive income (loss)		(125	)			110
Total stockholders' equity		68,836				78,957
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	192,027			$	201,012

WEAVE COMMUNICATIONS, INC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per share data)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
Revenue	$	52,386			$	43,544			$	150,145			$	124,776
Cost of revenue		14,659				13,609				43,307				40,266
Gross profit		37,727				29,935				106,838				84,510
Operating expenses:
Sales and marketing		21,159				17,801				62,678				52,474
Research and development		9,868				8,628				29,471				24,907
General and administrative		13,330				11,528				38,729				33,502
Total operating expenses		44,357				37,957				130,878				110,883
Loss from operations		(6,630	)			(8,022	)			(24,040	)			(26,373	)
Other income (expense):
Interest income		520				594				1,372				1,557
Interest expense		(405	)			(512	)			(1,123	)			(1,485	)
Other income (expense), net		692				874				2,278				2,457
Loss before income taxes		(5,823	)			(7,066	)			(21,513	)			(23,844	)
Provision for income taxes		(56	)			(79	)			(122	)			(148	)
Net loss	$	(5,879	)		$	(7,145	)		$	(21,635	)		$	(23,992	)
Net loss per share - basic and diluted	$	(0.08	)		$	(0.10	)		$	(0.30	)		$	(0.36	)
Weighted-average common shares outstanding - basic and diluted		72,007,727				68,213,250				71,253,586				67,014,127

WEAVE COMMUNICATIONS, INC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(5,879	)		$	(7,145	)		$	(21,635	)		$	(23,992	)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization		2,712				2,971				8,669				8,969
Amortization of operating right-of-use assets		991				952				2,949				2,857
Provision for losses on accounts receivable		400				192				1,243				846
Amortization of deferred contract costs		3,340				2,961				9,992				8,984
Loss on disposal of assets		—				1				1				12
Stock-based compensation		8,022				6,187				23,085				16,576
Net accretion of discounts on short-term investments		(503	)			(664	)			(1,677	)			(2,008	)
Changes in operating assets and liabilities:
Accounts receivable		(3,236	)			(622	)			(6,096	)			(1,263	)
Deferred contract costs		(3,488	)			(3,080	)			(11,531	)			(9,820	)
Prepaid expenses and other assets		199				(1,047	)			1,665				396
Accounts payable		29				518				2,465				989
Accrued liabilities		3,194				2,344				191				3,189
Operating lease liabilities		(995	)			(925	)			(2,963	)			(2,766	)
Deferred revenue		(286	)			691				1,117				3,510
Net cash provided by operating activities		4,500				3,334				7,475				6,479
CASH FLOWS FROM INVESTING ACTIVITIES
Maturities of short-term investments		23,471				14,900				55,745				43,900
Purchases of short-term investments		(22,534	)			(10,583	)			(43,016	)			(45,735	)
Purchases of property and equipment		(548	)			(675	)			(1,802	)			(1,513	)
Capitalized internal-use software costs		(411	)			(579	)			(1,434	)			(1,370	)
Net cash provided by (used in) investing activities		(22	)			3,063				9,493				(4,718	)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on finance leases		(1,743	)			(1,859	)			(5,285	)			(5,666	)
Proceeds from stock option exercises		193				10,732				550				11,353
Payments for taxes related to net share settlement of equity awards		(4,461	)			(4,811	)			(13,883	)			(7,483	)
Proceeds from the employee stock purchase plan		977				707				1,997				1,329
Net cash provided by (used in) financing activities		(5,034	)			4,769				(16,621	)			(467	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(556	)			11,166				347				1,294
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		51,659				52,125				50,756				61,997
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	51,103			$	63,291			$	51,103			$	63,291
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	$	405			$	512			$	1,123			$	1,485
Cash paid during the period for income taxes	$	56			$	79			$	122			$	148
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Equipment purchases financed with accounts payable	$	—			$	—			$	—			$	—
Finance lease liabilities arising from obtaining finance lease right-of-use assets	$	1,671			$	1,799			$	5,247			$	5,438
Operating lease liabilities arising from obtaining operating lease right-of-use assets		—				—			$	149			$	154
Unrealized gain (loss) on short-term investments	$	106			$	17			$	19			$	(35	)

WEAVE COMMUNICATIONS, INC DISAGGREGATED REVENUE AND COST OF REVENUE (unaudited, in thousands)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
Subscription and payment processing:
Revenue	$	50,375			$	41,601			$	143,980			$	118,989
Cost of revenue		(10,932	)			(9,486	)			(32,164	)			(27,973	)
Gross profit	$	39,443			$	32,115			$	111,816			$	91,016
Gross margin		78.3	%			77.2	%			77.7	%			76.5	%
Onboarding:
Revenue	$	845			$	757			$	2,748			$	2,408
Cost of revenue		(2,006	)			(2,295	)			(5,870	)			(6,688	)
Gross profit	$	(1,161	)		$	(1,538	)		$	(3,122	)		$	(4,280	)
Gross margin		(137.4	)%			(203.2	)%			(113.6	)%			(177.7	)%
Hardware:
Revenue	$	1,166			$	1,186			$	3,417			$	3,379
Cost of revenue		(1,721	)			(1,828	)			(5,273	)			(5,605	)
Gross profit	$	(555	)		$	(642	)		$	(1,856	)		$	(2,226	)
Gross margin		(47.6	)%			(54.1	)%			(54.3	)%			(65.9	)%

WEAVE COMMUNICATIONS, INC RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited, in thousands, except share and per share data)
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below
Non-GAAP gross profit
	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
Gross profit	$	37,727			$	29,935			$	106,838			$	84,510
Stock-based compensation add back		237				258				720				722
Non-GAAP gross profit	$	37,964			$	30,193			$	107,558			$	85,232
GAAP gross margin		72.0	%			68.7	%			71.2	%			67.7	%
Non-GAAP gross margin		72.5	%			69.3	%			71.6	%			68.3	%
Non-GAAP operating expenses
	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
Sales and marketing	$	21,159			$	17,801			$	62,678			$	52,474
Stock-based compensation excluded		(1,758	)			(1,274	)			(4,605	)			(3,457	)
Non-GAAP sales and marketing	$	19,401			$	16,527			$	58,073			$	49,017
Research and development	$	9,868			$	8,628			$	29,471			$	24,907
Stock-based compensation excluded		(1,848	)			(1,474	)			(5,924	)			(3,727	)
Non-GAAP research and development	$	8,020			$	7,154			$	23,547			$	21,180
General and administrative	$	13,330			$	11,528			$	38,729			$	33,502
Stock-based compensation excluded		(4,179	)			(3,181	)			(11,836	)			(8,670	)
Non-GAAP general and administrative	$	9,151			$	8,347			$	26,893			$	24,832

Non-GAAP income (loss) from operations
	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
Loss from operations	$	(6,630	)		$	(8,022	)		$	(24,040	)		$	(26,373	)
Stock-based compensation add back		8,022				6,187				23,085				16,576
Non-GAAP income (loss) from operations	$	1,392			$	(1,835	)		$	(955	)		$	(9,797	)
GAAP loss from operations margin		(12.7	)%			(18.4	)%			(16.0	)%			(21.1	)%
Non-GAAP income (loss) from operations margin		2.7	%			(4.2	)%			(0.6	)%			(7.9	)%
Non-GAAP net income (loss)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
Net loss	$	(5,879	)		$	(7,145	)		$	(21,635	)		$	(23,992	)
Stock-based compensation add back		8,022				6,187				23,085				16,576
Non-GAAP net income (loss)	$	2,143			$	(958	)		$	1,450			$	(7,416	)
GAAP net loss margin		(11.2	)%			(16.4	)%			(14.4	)%			(19.2	)%
Non-GAAP net income (loss) margin		4.1	%			(2.2	)%			1.0	%			(5.9	)%
GAAP net loss per share - basic and diluted	$	(0.08	)		$	(0.10	)		$	(0.30	)		$	(0.36	)
GAAP weighted-average common shares outstanding - basic and diluted		72,007,727				68,213,250				71,253,586				67,014,127
Non-GAAP net income (loss) per share - basic	$	0.03			$	(0.01	)		$	0.02			$	(0.11	)
Non-GAAP weighted-average common shares outstanding - basic		72,007,727				68,213,250				71,253,586				67,014,127
Non-GAAP net income (loss) per share - diluted	$	0.03			$	(0.01	)		$	0.02			$	(0.11	)
Non-GAAP weighted-average common shares outstanding - diluted		77,979,755				68,213,250				76,409,945				67,014,127

Free Cash Flow
	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
Net cash provided by operating activities	$	4,500			$	3,334			$	7,475			$	6,479
Less: Purchases of property and equipment		(548	)			(675	)			(1,802	)			(1,513	)
Less: Capitalized internal-use software costs		(411	)			(579	)			(1,434	)			(1,370	)
Free cash flow	$	3,541			$	2,080			$	4,239			$	3,596
Adjusted EBITDA
	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
Net loss	$	(5,879	)		$	(7,145	)		$	(21,635	)		$	(23,992	)
Interest expense		405				512				1,123				1,485
Provision for income taxes		56				79				122				148
Interest income		(520	)			(594	)			(1,372	)			(1,557	)
Other income/expense, net		(692	)			(874	)			(2,278	)			(2,457	)
Depreciation		512				619				1,702				1,816
Amortization		345				305				1,149				924
Stock-based compensation		8,022				6,187				23,085				16,576
Adjusted EBITDA	$	2,249			$	(911	)		$	1,896			$	(7,057	)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030644520/en/

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Source: Weave

FAQ

What was Weave's (WEAV) revenue growth in Q3 2024?

Weave reported Q3 2024 revenue of $52.4 million, representing a 20.3% increase compared to $43.5 million in Q3 2023.

Did Weave (WEAV) achieve profitability in Q3 2024?

While Weave reported a GAAP net loss of $5.9 million, it achieved its first positive non-GAAP operating income of $1.4 million in Q3 2024.

What is Weave's (WEAV) revenue guidance for Q4 2024?

Weave expects Q4 2024 revenue between $52.6-$53.6 million with non-GAAP operating income of $0.9-$1.9 million.

What new products did Weave (WEAV) launch in Q3 2024?

Weave unveiled a new AI-powered platform featuring Weave Assistant for automated tasks and Call Intelligence product for extracting insights from call data.