Weave Communications Announces Fourth Quarter and Full Year 2022 Financial Results
Weave Communications, Inc. (NYSE: WEAV) reported impressive financial results for Q4 and the full year of 2022. Q4 total revenue reached $37.7 million, an 18% increase year-over-year, while full-year revenue was $142.1 million, up 23% from 2021. The company significantly improved its gross and operating margins. Although it reported a GAAP net loss of $9.3 million in Q4, this was an improvement from $14.3 million in the same quarter last year. For 2023, Weave anticipates total revenue between $156.0 million and $160.0 million.
- Total revenue growth of 23% year-over-year for 2022.
- Improved GAAP loss from operations, decreasing from $50.4 million in 2021 to $49.7 million in 2022.
- Dollar-Based Net Retention Rate (NRR) at 99% as of December 31, 2022.
- Added 3,362 net new customer locations in 2022.
- GAAP net loss of $49.7 million for the full year 2022 compared to $53.7 million in 2021, although showing improvement.
- Continued operational losses with projected Non-GAAP loss from operations between $4.5 million and $5.5 million for Q1 2023.
-
Fourth quarter total revenue of
, up$37.7 million 18% year-over-year -
Full year total revenue of
, up$142.1 million 23% year-over-year - Significant gross and operating margin improvement year-over-year following strategic and operational actions
“We made a lot of important progress towards configuring our business for success in 2022, and have taken important steps to improve our efficiency,” said CEO
Fourth Quarter 2022 Financial Highlights
-
Total revenue was
, representing a$37.7 million 18% year-over-year increase compared to in the fourth quarter of 2021.$31.8 million -
GAAP loss from operations was
, compared to a GAAP loss from operations of$9.7 million in the fourth quarter of 2021.$13.6 million -
Non-GAAP loss from operations was
, compared to a non-GAAP loss from operations of$4.2 million in the fourth quarter of 2021.$10.6 million -
GAAP net loss attributable to common stockholders was
, or$9.3 million per share, compared to a GAAP net loss attributable to common stockholders of$0.14 , or$14.3 million per share, in the fourth quarter of 2021.$0.34 -
Non-GAAP net loss attributable to common stockholders was
, or$3.7 million per share, compared to a non-GAAP net loss attributable to common stockholders of$0.06 , or$11.0 million per share, in the fourth quarter of 2021.$0.26 -
Dollar-Based Net Retention Rate (NRR) was
99% as ofDecember 31, 2022 . -
Dollar-Based Gross Retention Rate (GRR) was
94% as ofDecember 31, 2022 .
Full Year 2022 Financial Highlights:
-
Total revenue was
, representing a$142.1 million 23% year-over-year increase compared to in 2021.$115.9 million -
GAAP loss from operations was
, compared to a GAAP loss from operations of$49.7 million in 2021.$50.4 million -
Non-GAAP loss from operations was
, compared to a non-GAAP loss from operations of$31.0 million in 2021.$36.3 million -
GAAP net loss attributable to common stockholders was
, or$49.7 million per share, compared to a GAAP net loss attributable to common stockholders of$0.76 , or$53.7 million per share, in 2021.$2.60 -
Non-GAAP net loss attributable to common stockholders was
, or$31.0 million per share, compared to a non-GAAP net loss attributable to common stockholders of$0.48 , or$37.6 million per share, in 2021.$1.82 -
Added 3,362 net new customer locations in 2022 and had 27,193 customer locations as of
December 31, 2022 .
Financial First Quarter and Full Year 2023 Outlook
The company expects the following financial results for the three months ending
|
First Quarter |
Full Year |
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|
(in millions) |
|||
Total revenue |
|
|
||
Non-GAAP loss from operations |
|
|
||
Weighted average share count |
66.0 |
68.0 |
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 loss 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 net loss from operations and are not able to present the various reconciling cash and non-cash items between GAAP loss from operations and non-GAAP loss 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 2023 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
Individuals interested in listening to the conference call may do so by dialing (412) 902-1020 or (877) 502-7186 for toll free. Please reference the following conference ID: 13735741. 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 communication and engagement platform for small and medium-sized businesses. From the first phone call to the final invoice and every touchpoint in between, Weave connects the entire customer journey. Weave’s software solutions transform how local businesses attract, communicate with and engage customers to grow their business. Weave has set the bar for
Forward Looking Statements
This press release and the accompanying conference call contain forward-looking statements including, among others, current estimates of first quarter and full year 2023 revenue and non-GAAP loss from operations and statements 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: transitions in company leadership; 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 the global COVID-19 pandemic 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; expansion into new vertical markets; customer acquisition costs and sales and marketing strategies; competition; our ability to enhance our platform and products; interruptions in service; general business and economic conditions; and the risks described in the filings we make from time to time with the
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
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 Q4 results and do not provided this information with financial statements or earnings releases covering interim periods.
Non-GAAP Financial Measures
In this press release,
Non-GAAP net loss, non-GAAP net loss margin and non-GAAP net loss per share
We define non-GAAP net loss or non-GAAP net loss attributable to common stockholders as GAAP net loss attributable to common stockholders less stock-based compensation expense and non-cash cumulative dividends on redeemable convertible preferred stock, and non-GAAP net loss margin as non-GAAP net loss as a percentage of revenue. Non-GAAP net loss per share is calculated as non-GAAP net 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 less 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 less the applicable stock-based compensation expense.
Non-GAAP loss from operations and non-GAAP loss from operations margin
We define non-GAAP loss from operations as GAAP loss from operations less stock-based compensation expense, and non-GAAP loss from operations margin as non-GAAP loss from operations as a percentage of revenue.
Adjusted EBITDA
EBITDA is defined as earnings before interest expense, provision for income taxes, depreciation, and amortization. Our depreciation adjustment includes depreciation on operating fixed assets and does not include depreciation on phone hardware provided to our customers. 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 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 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.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands except share amounts) |
||||||||
|
|
|
|
|||||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
61,997 |
|
|
|
135,996 |
|
|
Short-term investments |
|
51,340 |
|
|
|
— |
|
|
Accounts receivable |
|
3,296 |
|
|
|
3,059 |
|
|
Deferred contract costs, net |
|
9,881 |
|
|
|
8,931 |
|
|
Prepaid expenses and other current assets |
|
6,374 |
|
|
|
6,461 |
|
|
Total current assets |
|
132,888 |
|
|
|
154,447 |
|
|
Non-current assets: |
|
|
|
|||||
Property and equipment, net |
|
10,773 |
|
|
|
24,502 |
|
|
Operating lease right-of-use assets |
|
45,110 |
|
|
|
— |
|
|
Finance lease right-of-use assets |
|
10,589 |
|
|
|
— |
|
|
Deferred contract costs, net, less current portion |
|
8,146 |
|
|
|
7,873 |
|
|
Other non-current assets |
|
843 |
|
|
|
663 |
|
|
TOTAL ASSETS |
$ |
208,349 |
|
|
$ |
187,485 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
3,793 |
|
|
$ |
4,061 |
|
|
Accrued liabilities |
|
13,636 |
|
|
|
12,250 |
|
|
Deferred revenue |
|
34,136 |
|
|
|
29,511 |
|
|
Current portion of operating lease liabilities |
|
3,662 |
|
|
|
— |
|
|
Current portion of finance lease liabilities |
|
6,992 |
|
|
|
8,485 |
|
|
Current portion of long-term debt |
|
10,000 |
|
|
|
— |
|
|
Total current liabilities |
|
72,219 |
|
|
|
54,307 |
|
|
Non-current liabilities: |
|
|
|
|||||
Deferred rent |
|
— |
|
|
|
4,319 |
|
|
Operating lease liabilities, less current portion |
|
46,914 |
|
|
|
— |
|
|
Finance lease liabilities, less current portion |
|
5,997 |
|
|
|
6,558 |
|
|
Long-term debt |
|
— |
|
|
|
10,000 |
|
|
Total liabilities |
|
125,130 |
|
|
|
75,184 |
|
|
Stockholders' equity: |
|
|
|
|||||
Preferred stock, |
|
— |
|
|
|
— |
|
|
Common stock, |
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
314,884 |
|
|
|
294,230 |
|
|
Accumulated deficit |
|
(231,636 |
) |
|
|
(181,898 |
) |
|
Accumulated other comprehensive loss |
|
(29 |
) |
|
|
(31 |
) |
|
Total stockholders' equity |
|
83,219 |
|
|
|
112,301 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
208,349 |
|
|
$ |
187,485 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per share data) |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Revenue |
$ |
37,685 |
|
|
$ |
31,840 |
|
|
$ |
142,117 |
|
|
$ |
115,871 |
|
|
Cost of revenue |
|
12,751 |
|
|
|
13,679 |
|
|
|
53,276 |
|
|
|
49,372 |
|
|
Gross profit |
|
24,934 |
|
|
|
18,161 |
|
|
|
88,841 |
|
|
|
66,499 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Sales and marketing |
|
16,118 |
|
|
|
15,769 |
|
|
|
65,378 |
|
|
|
58,244 |
|
|
Research and development |
|
8,185 |
|
|
|
7,119 |
|
|
|
30,714 |
|
|
|
27,009 |
|
|
General and administrative |
|
10,376 |
|
|
|
8,920 |
|
|
|
42,453 |
|
|
|
31,637 |
|
|
Total operating expenses |
|
34,679 |
|
|
|
31,808 |
|
|
|
138,545 |
|
|
|
116,890 |
|
|
Loss from operations |
|
(9,745 |
) |
|
|
(13,647 |
) |
|
|
(49,704 |
) |
|
|
(50,391 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
|||||||||
Interest expense |
|
(436 |
) |
|
|
(308 |
) |
|
|
(1,441 |
) |
|
|
(1,184 |
) |
|
Other income (expense), net |
|
937 |
|
|
|
(65 |
) |
|
|
1,511 |
|
|
|
(55 |
) |
|
Loss before income taxes |
|
(9,244 |
) |
|
|
(14,020 |
) |
|
|
(49,634 |
) |
|
|
(51,630 |
) |
|
Provision for income taxes |
|
(22 |
) |
|
|
(48 |
) |
|
|
(104 |
) |
|
|
(60 |
) |
|
Net loss |
$ |
(9,266 |
) |
|
$ |
(14,068 |
) |
|
$ |
(49,738 |
) |
|
$ |
(51,690 |
) |
|
Less: cumulative dividends on redeemable convertible preferred stock |
|
— |
|
|
|
(270 |
) |
|
|
— |
|
|
|
(1,961 |
) |
|
Net loss attributable to common stockholders |
$ |
(9,266 |
) |
|
$ |
(14,338 |
) |
|
$ |
(49,738 |
) |
|
$ |
(53,651 |
) |
|
Net loss per share attributable to common stockholders - basic and diluted |
$ |
(0.14 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.76 |
) |
|
$ |
(2.60 |
) |
|
Weighted-average common shares outstanding - basic and diluted |
|
65,629,940 |
|
|
|
42,553,188 |
|
|
|
65,083,198 |
|
|
|
20,636,583 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(9,266 |
) |
|
$ |
(14,068 |
) |
|
$ |
(49,738 |
) |
|
$ |
(51,690 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization |
|
3,120 |
|
|
|
3,390 |
|
|
|
12,964 |
|
|
|
12,140 |
|
|
Amortization of operating right-of-use assets |
|
630 |
|
|
|
— |
|
|
|
3,372 |
|
|
|
— |
|
|
Provision for losses on accounts receivable |
|
271 |
|
|
|
128 |
|
|
|
729 |
|
|
|
355 |
|
|
Amortization of contract costs |
|
2,884 |
|
|
|
2,564 |
|
|
|
11,120 |
|
|
|
9,410 |
|
|
Loss on disposal of assets |
|
(6 |
) |
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
Stock-based compensation |
|
5,525 |
|
|
|
3,044 |
|
|
|
18,752 |
|
|
|
14,091 |
|
|
Net accretion of discounts on short-term investments |
|
(413 |
) |
|
|
— |
|
|
|
(413 |
) |
|
|
— |
|
|
Changes in operating assets and liabilities: |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Accounts receivable |
|
86 |
|
|
|
1,393 |
|
|
|
(966 |
) |
|
|
(870 |
) |
|
Deferred contract costs |
|
(3,082 |
) |
|
|
(2,787 |
) |
|
|
(12,343 |
) |
|
|
(12,828 |
) |
|
Prepaid expenses and other assets |
|
(1,799 |
) |
|
|
(1,532 |
) |
|
|
(93 |
) |
|
|
(4,073 |
) |
|
Accounts payable |
|
382 |
|
|
|
(515 |
) |
|
|
(330 |
) |
|
|
583 |
|
|
Accrued liabilities |
|
(2,137 |
) |
|
|
(4,268 |
) |
|
|
1,786 |
|
|
|
1,564 |
|
|
Operating lease liabilities |
|
(537 |
) |
|
|
— |
|
|
|
(2,225 |
) |
|
|
— |
|
|
Deferred revenue |
|
1,501 |
|
|
|
1,068 |
|
|
|
4,615 |
|
|
|
6,627 |
|
|
Deferred rent |
|
— |
|
|
|
1,178 |
|
|
|
— |
|
|
|
4,318 |
|
|
Net cash used in operating activities |
|
(2,841 |
) |
|
|
(10,405 |
) |
|
|
(12,766 |
) |
|
|
(20,373 |
) |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|||||||||
Purchases of short-term investments |
|
(50,915 |
) |
|
|
— |
|
|
|
(50,915 |
) |
|
|
— |
|
|
Proceeds from sale of assets |
|
7 |
|
|
|
— |
|
|
|
16 |
|
|
|
— |
|
|
Purchases of property and equipment |
|
(704 |
) |
|
|
(1,331 |
) |
|
|
(1,895 |
) |
|
|
(7,376 |
) |
|
Capitalized internal-use software costs |
|
(229 |
) |
|
|
(461 |
) |
|
|
(1,232 |
) |
|
|
(2,433 |
) |
|
Net cash used in investing activities |
|
(51,841 |
) |
|
|
(1,792 |
) |
|
|
(54,026 |
) |
|
|
(9,809 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|||||||||
Proceeds from advance on line of credit |
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
6,000 |
|
|
Principal payments on finance leases |
|
(2,015 |
) |
|
|
(2,048 |
) |
|
|
(8,709 |
) |
|
|
(7,860 |
) |
|
Proceeds from stock option exercises |
|
336 |
|
|
|
926 |
|
|
|
1,315 |
|
|
|
4,166 |
|
|
Proceeds from initial public offering, net of underwriting discounts |
|
— |
|
|
|
111,600 |
|
|
|
— |
|
|
|
111,600 |
|
|
Paid offering costs |
|
— |
|
|
|
(2,681 |
) |
|
|
(671 |
) |
|
|
(3,426 |
) |
|
Proceeds from the employee stock purchase plan |
|
— |
|
|
|
— |
|
|
|
858 |
|
|
|
— |
|
|
Net cash provided by (used in) financing activities |
|
(1,679 |
) |
|
|
107,802 |
|
|
|
(7,207 |
) |
|
|
110,480 |
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
(56,361 |
) |
|
|
95,605 |
|
|
|
(73,999 |
) |
|
|
80,298 |
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
118,358 |
|
|
|
40,391 |
|
|
|
135,996 |
|
|
|
55,698 |
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
61,997 |
|
|
$ |
135,996 |
|
|
$ |
61,997 |
|
|
$ |
135,996 |
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|||||||||
Cash paid during the period for interest |
$ |
436 |
|
|
$ |
308 |
|
|
$ |
1,441 |
|
|
$ |
1,184 |
|
|
Cash paid during the period for income taxes |
$ |
22 |
|
|
$ |
— |
|
|
$ |
104 |
|
|
$ |
— |
|
|
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|||||||||
Equipment purchases financed with accounts payable |
$ |
13 |
|
|
$ |
78 |
|
|
$ |
13 |
|
|
$ |
78 |
|
|
Finance lease liabilities arising from obtaining finance lease right-of-use assets |
$ |
1,996 |
|
|
$ |
1,037 |
|
|
$ |
6,655 |
|
|
$ |
8,461 |
|
|
Accrued unpaid offering costs |
$ |
— |
|
|
$ |
400 |
|
|
$ |
— |
|
|
$ |
400 |
|
|
Unrealized gain on short-term investments |
$ |
12 |
|
|
$ |
— |
|
|
$ |
12 |
|
|
$ |
— |
|
DISAGGREGATED REVENUE AND COST OF REVENUE (GAAP) (unaudited, in thousands) |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Subscription and payment processing: |
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
36,163 |
|
|
$ |
30,332 |
|
|
$ |
136,592 |
|
|
$ |
108,841 |
|
|
Cost of revenue |
|
(8,633 |
) |
|
|
(8,400 |
) |
|
|
(35,008 |
) |
|
|
(29,454 |
) |
|
Gross profit |
$ |
27,530 |
|
|
$ |
21,932 |
|
|
$ |
101,584 |
|
|
$ |
79,387 |
|
|
Gross margin |
|
76 |
% |
|
|
72 |
% |
|
|
74 |
% |
|
|
73 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Onboarding: |
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
428 |
|
|
$ |
599 |
|
|
$ |
1,288 |
|
|
$ |
3,687 |
|
|
Cost of revenue |
|
(2,093 |
) |
|
|
(2,894 |
) |
|
|
(9,612 |
) |
|
|
(10,941 |
) |
|
Gross profit |
$ |
(1,665 |
) |
|
$ |
(2,295 |
) |
|
$ |
(8,324 |
) |
|
$ |
(7,254 |
) |
|
Gross margin |
|
(389 |
)% |
|
|
(383 |
)% |
|
|
(646 |
)% |
|
|
(197 |
)% |
|
|
|
|
|
|
|
|
|
|||||||||
Hardware: |
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
1,094 |
|
|
$ |
909 |
|
|
$ |
4,237 |
|
|
$ |
3,343 |
|
|
Cost of revenue |
|
(2,025 |
) |
|
|
(2,385 |
) |
|
|
(8,656 |
) |
|
|
(8,977 |
) |
|
Gross profit |
$ |
(931 |
) |
|
$ |
(1,476 |
) |
|
$ |
(4,419 |
) |
|
$ |
(5,634 |
) |
|
Gross margin |
|
(85 |
)% |
|
|
(162 |
)% |
|
|
(104 |
)% |
|
|
(169 |
)% |
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 |
|
Year Ended |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Gross profit |
$ |
24,934 |
|
|
$ |
18,161 |
|
|
$ |
88,841 |
|
|
$ |
66,499 |
|
|
Stock-based compensation add back |
|
209 |
|
|
|
108 |
|
|
|
723 |
|
|
|
526 |
|
|
Non-GAAP gross profit |
$ |
25,143 |
|
|
$ |
18,269 |
|
|
$ |
89,564 |
|
|
$ |
67,025 |
|
|
GAAP gross margin |
|
66 |
% |
|
|
57 |
% |
|
|
63 |
% |
|
|
57 |
% |
|
Non-GAAP gross margin |
|
67 |
% |
|
|
57 |
% |
|
|
63 |
% |
|
|
58 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP operating expenses |
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Sales and marketing |
$ |
16,118 |
|
|
$ |
15,769 |
|
|
$ |
65,378 |
|
|
$ |
58,244 |
|
|
Stock-based compensation excluded |
|
(1,105 |
) |
|
|
(458 |
) |
|
|
(3,436 |
) |
|
|
(1,962 |
) |
|
Non-GAAP sales and marketing |
$ |
15,013 |
|
|
$ |
15,311 |
|
|
$ |
61,942 |
|
|
$ |
56,282 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Research and development |
$ |
8,185 |
|
|
$ |
7,119 |
|
|
$ |
30,714 |
|
|
$ |
27,009 |
|
|
Stock-based compensation excluded |
|
(1,654 |
) |
|
|
(554 |
) |
|
|
(4,576 |
) |
|
|
(3,545 |
) |
|
Non-GAAP research and development |
$ |
6,531 |
|
|
$ |
6,565 |
|
|
$ |
26,138 |
|
|
$ |
23,464 |
|
|
|
|
|
|
|
|
|
|
|||||||||
General and administrative |
$ |
10,376 |
|
|
$ |
8,920 |
|
|
$ |
42,453 |
|
|
$ |
31,637 |
|
|
Stock-based compensation excluded |
|
(2,557 |
) |
|
|
(1,924 |
) |
|
|
(10,017 |
) |
|
|
(8,058 |
) |
|
Non-GAAP general and administrative |
$ |
7,819 |
|
|
$ |
6,996 |
|
|
$ |
32,436 |
|
|
$ |
23,579 |
|
Non-GAAP loss from operations |
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Loss from operations |
$ |
(9,745 |
) |
|
$ |
(13,647 |
) |
|
$ |
(49,704 |
) |
|
$ |
(50,391 |
) |
|
Stock-based compensation add back |
|
5,525 |
|
|
|
3,044 |
|
|
|
18,752 |
|
|
|
14,091 |
|
|
Non-GAAP loss from operations |
$ |
(4,220 |
) |
|
$ |
(10,603 |
) |
|
$ |
(30,952 |
) |
|
$ |
(36,300 |
) |
|
GAAP loss from operations margin |
|
(26 |
)% |
|
|
(43 |
)% |
|
|
(35 |
)% |
|
|
(43 |
)% |
|
Non-GAAP loss from operations margin |
|
(11 |
)% |
|
|
(33 |
)% |
|
|
(22 |
)% |
|
|
(31 |
)% |
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP net loss |
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Net loss attributable to common stockholders |
$ |
(9,266 |
) |
|
$ |
(14,338 |
) |
|
$ |
(49,738 |
) |
|
$ |
(53,651 |
) |
|
Stock-based compensation add back |
|
5,525 |
|
|
|
3,044 |
|
|
|
18,752 |
|
|
|
14,091 |
|
|
Non-cash cumulative dividends on redeemable convertible preferred stock |
|
— |
|
|
|
270 |
|
|
|
— |
|
|
|
1,961 |
|
|
Non-GAAP net loss attributable to common stockholders |
$ |
(3,741 |
) |
|
$ |
(11,024 |
) |
|
$ |
(30,986 |
) |
|
$ |
(37,599 |
) |
|
GAAP net loss margin |
|
(25 |
)% |
|
|
(45 |
)% |
|
|
(35 |
)% |
|
|
(46 |
)% |
|
Non-GAAP net loss margin |
|
(10 |
)% |
|
|
(35 |
)% |
|
|
(22 |
)% |
|
|
(32 |
)% |
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
GAAP net loss per share attributable to common stockholders - basic and diluted |
$ |
(0.14 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.76 |
) |
|
$ |
(2.60 |
) |
|
Non-GAAP net loss per share attributable to common stockholders - basic and diluted |
$ |
(0.06 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.48 |
) |
|
$ |
(1.82 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average common shares outstanding - basic and diluted |
|
65,629,940 |
|
|
|
42,553,188 |
|
|
|
65,083,198 |
|
|
|
20,636,583 |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Net loss |
$ |
(9,266 |
) |
|
$ |
(14,068 |
) |
|
$ |
(49,738 |
) |
|
$ |
(51,690 |
) |
|
Interest on outstanding debt |
|
436 |
|
|
|
308 |
|
|
|
1,441 |
|
|
|
1,184 |
|
|
Provision for income taxes |
|
22 |
|
|
|
48 |
|
|
|
104 |
|
|
|
60 |
|
|
Depreciation |
|
606 |
|
|
|
686 |
|
|
|
2,609 |
|
|
|
2,269 |
|
|
Amortization |
|
289 |
|
|
|
302 |
|
|
|
1,140 |
|
|
|
815 |
|
|
Stock-based compensation |
|
5,525 |
|
|
|
3,044 |
|
|
|
18,752 |
|
|
|
14,091 |
|
|
Adjusted EBITDA |
$ |
(2,388 |
) |
|
$ |
(9,680 |
) |
|
$ |
(25,692 |
) |
|
$ |
(33,271 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Free Cash Flow |
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Net cash used in operating activities |
$ |
(2,841 |
) |
|
$ |
(10,405 |
) |
|
$ |
(12,766 |
) |
|
$ |
(20,373 |
) |
|
Less: Purchases of property and equipment |
|
(704 |
) |
|
|
(1,331 |
) |
|
|
(1,895 |
) |
|
|
(7,376 |
) |
|
Less: Capitalized internal-use software costs |
|
(229 |
) |
|
|
(461 |
) |
|
|
(1,232 |
) |
|
|
(2,433 |
) |
|
Free cash flow |
$ |
(3,774 |
) |
|
$ |
(12,197 |
) |
|
$ |
(15,893 |
) |
|
$ |
(30,182 |
) |
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230222005263/en/
Investor Relations Contact
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FAQ
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