WEAV Weave Communications Inc

• 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.

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/

Investor Relations Contact Mark McReynolds Head of Investor Relations ir@getweave.com

Media Contact Natalie House Senior Director of Content & Communications pr@getweave.com