Core Viewpoint - Weave Communications, Inc. (WEAV) is currently exhibiting strong momentum, with a Momentum Style Score of B, indicating potential for further price appreciation in the near term [2][11]. Price Performance - WEAV shares have increased by 4.27% over the past week, while the Zacks Communication - Network Software industry remained flat during the same period [4]. - Over the last month, WEAV's price change is 14.77%, significantly outperforming the industry's 0.2% [4]. - In the last quarter, WEAV shares have risen by 28.33%, and over the past year, they have gained 36.04%, compared to the S&P 500's increases of 5.41% and 28.01%, respectively [9]. Earnings Outlook - Recent earnings estimate revisions for WEAV show a positive trend, with 4 estimates moving higher and none lower for the full year, raising the consensus estimate from $0.00 to $0.04 in the past 60 days [13]. - For the next fiscal year, 2 estimates have increased while 1 has decreased [13]. Trading Volume - WEAV's average 20-day trading volume is 989,861 shares, which serves as a bullish indicator when combined with rising stock prices [12]. Zacks Rank and Style Score - WEAV holds a Zacks Rank of 2 (Buy), and stocks with this rating and a Momentum Style Score of A or B have historically outperformed the market over the following month [7][11].

Group 1 - The article discusses the services provided by IPO Edge, which includes actionable information on growth stocks, first-look IPO filings, previews on upcoming IPOs, an IPO calendar, a database of U.S. IPOs, and a comprehensive guide to IPO investing [1]

Have you been paying attention to shares of Weave Communications, Inc. (WEAV) ? Shares have been on the move with the stock up 22% over the past month. The stock hit a new 52-week high of $16.16 in the previous session. Weave Communications, Inc. has gained 39.1% since the start of the year compared to the 36.5% move for the Zacks Computer and Technology sector and the 33.3% return for the Zacks Communication - Network Software industry.What's Driving the Outperformance?The stock has an impressive record of ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Core Viewpoint - Weave Communications, Inc. has shown strong stock performance, with a 7.1% increase over the past month and a 23.6% gain since the start of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Communication - Network Software industry [1] Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $0.03 in its latest earnings report, surpassing the consensus estimate of $0 [2] - For the current fiscal year, Weave Communications is projected to achieve earnings of $0.04 per share on revenues of $203.52 million, reflecting a 133.33% increase in EPS and a 19.39% increase in revenues [3] - For the next fiscal year, the expected earnings are $0.11 per share on revenues of $237.01 million, indicating a year-over-year growth of 175% in EPS and 16.45% in revenues [3] Valuation Metrics - The stock currently trades at a high valuation of 333.7X current fiscal year EPS estimates, significantly above the peer industry average of 20X [7] - On a trailing cash flow basis, the stock trades at 5X compared to the peer group's average of 7.1X, suggesting it does not rank among the top stocks from a value perspective [7] Style Scores and Zacks Rank - Weave Communications has a Value Score of D, while its Growth and Momentum Scores are both A, resulting in a VGM Score of B [6] - The company holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - Given the combination of Zacks Rank and Style Scores, Weave Communications appears to have potential for future growth [9]

Revenue Performance - Recurring revenues accounted for 92% of total revenue for both the three and nine months ended September 30, 2024 and 2023, indicating strong revenue stability [112]. - Subscription and payment processing revenue for the three months ended September 30, 2024 was $50,375,000, up from $41,601,000 in the same period of 2023, representing a growth of 21.4% [115]. - Revenue for the three months ended September 30, 2024, was $52,386, an increase of $8,842 or 20% compared to $43,544 in the same period of 2023 [148]. - Revenue for the nine months ended September 30, 2024, increased to $150,145 thousand, up 20% from $124,776 thousand in the same period of 2023, primarily due to new customer locations [156]. Profitability and Margins - The gross profit margin for subscription and payment processing was 78% for the three months ended September 30, 2024, compared to 77% for the same period in 2023 [120]. - Cost of revenue for the same period was $14,659, up $1,050 or 8% from $13,609, while gross margin improved to 72% from 69% [149][150]. - Gross margin improved to 71% for the nine months ended September 30, 2024, compared to 68% in the same period of 2023, despite an increase in absolute cost of revenue [157]. Expenses - Sales and marketing expenses increased to $21,159, a rise of $3,358 or 19% from $17,801, primarily due to a $2.0 million increase in personnel-related expenses [151]. - Research and development expenses rose to $9,868, an increase of $1,240 or 14% from $8,628, driven by higher personnel-related costs [152]. - General and administrative expenses were $13,330, up $1,802 or 16% from $11,528, mainly due to increased personnel-related expenses and professional fees [153]. - Sales and marketing expenses rose to $62,678 thousand for the nine months ended September 30, 2024, a 19% increase from $52,474 thousand in 2023, mainly due to higher personnel-related expenses and demand generation costs [158]. - Research and development expenses increased to $29,471 thousand for the nine months ended September 30, 2024, an 18% rise from $24,907 thousand in 2023, attributed to increased headcount and salary adjustments [160]. - General and administrative expenses were $38,729 thousand for the nine months ended September 30, 2024, up 16% from $33,502 thousand in 2023, primarily due to higher personnel-related expenses [161]. Net Loss and Cash Flow - The company reported a net loss of $5,879 for the three months ended September 30, 2024, compared to a net loss of $7,145 in the same period of 2023 [145]. - The net loss for the nine months ended September 30, 2024, was $21.64 million, compared to a net loss of $23.99 million for the same period in 2023, indicating a reduction in losses [170]. - Free cash flow for the nine months ended September 30, 2024, was $4,239 thousand, compared to $3,596 thousand in the same period of 2023, reflecting improved cash generation [169]. - Cash provided by operating activities for the nine months ended September 30, 2024, was $7.48 million, an increase from $6.48 million in the same period in 2023 [176][177]. Customer Metrics - The dollar-based net retention rate improved to 98% as of September 30, 2024, up from 95% in 2023, reflecting enhanced customer retention and revenue growth [125]. - Approximately 36% of customer locations opted for annual prepayments as of September 30, 2024, down from 40% in 2023, indicating a shift in payment preferences [129]. Product Development and Innovation - The company introduced Weave Enterprise, a solution designed for organizations with multiple locations, to better serve multi-office customers [118]. - The new Weave platform features an AI-powered assistant and a modern user interface, aimed at improving practice operations and customer experience [111]. - The company is expanding its services to additional specialized medical verticals, enhancing its product offerings for dental, optometry, and veterinary practices [110]. - The company aims to continue investing in product development and marketing to enhance customer satisfaction and expand its market presence [119]. Financial Position and Liquidity - As of September 30, 2024, the company had $51.1 million in cash and cash equivalents, along with $47.1 million in other short-term investments, providing a solid liquidity position [172][173]. - The company recorded $40.2 million in deferred revenue as of September 30, 2024, which will be recognized as revenue over the subscription term [174]. - Cash used in financing activities for the nine months ended September 30, 2024, was $16.62 million, primarily due to employee taxes related to restricted stock units [181]. - The company acquired $5.2 million of additional right-of-use assets through new finance lease obligations during the nine months ended September 30, 2024 [183]. - As of September 30, 2024, the company had no outstanding balance on its $50 million credit facility, maintaining compliance with all loan covenants [188]. Future Expectations - The company expects sales and marketing expenses to continue to be the largest operating expense, but as a percentage of revenue, these expenses are anticipated to decrease in 2024 compared to 2023 [137]. - Research and development expenses are expected to increase as the business grows, but will likely remain consistent or slightly decrease as a percentage of revenue over time [139]. - The company expects operating cash flows to improve as it increases operational efficiency and experiences economies of scale [171].

Financial Data and Key Metrics Changes - Revenue for Q3 was $52.4 million, representing over 20% year-over-year growth and $1.2 million above the midpoint of the guidance range provided in July [7][34] - Gross margin reached 72.5%, an improvement from last quarter and over 300 basis points greater than Q3 of last year, marking the 11th consecutive quarter of gross margin improvement [7][38] - Non-GAAP operating income was reported at $1.4 million for the first time in the company's history, representing a $3.2 million improvement compared to last year [34][41] - Net income was $2.1 million or $0.03 per share, compared to a net loss of $1 million or $0.01 per share last year, reflecting a $3.1 million improvement due to revenue growth and operating efficiencies [41] - Free cash flow was $3.5 million in Q3, representing year-over-year growth of 70% [43] Business Line Data and Key Metrics Changes - Specialty medical was the fastest-growing category, with growth rates exceeding twice that of overall revenue growth [35] - The net revenue retention rate improved to 98% in Q3, up from 97% last quarter, indicating strong customer retention and upsell performance [36][37] - Gross revenue retention rate remained strong at 92%, consistently ranging between 91% and 94% over the past four years [37] Market Data and Key Metrics Changes - The addressable market for Weave's current focus areas (dental, optometry, veterinary, and specialty medical) exceeds $7 billion in the U.S. alone [9] - The integration of fintech solutions is expected to enhance practice growth and profitability by streamlining billing and payment processing [10] Company Strategy and Development Direction - The launch of the New Weave platform is a significant strategic milestone, enhancing market position with a robust technology infrastructure [12] - The company aims to deepen integrations with practice management systems to drive growth across target markets [29][30] - Weave is focusing on expanding its presence in the multi-location space, particularly among Dental Service Organizations (DSOs) [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities and the commitment to strengthening long-term value through sustained business growth [46] - The company raised its guidance for the full year 2024, expecting total revenue in the range of $202.7 million to $203.7 million [44] Other Important Information - Weave was recognized in G2's Fall 2024 Report, ranking first in multiple categories and being named a leader in patient relationship management [32] - The company has achieved a Great Place to Work certification in the U.S. for the sixth consecutive year and for the first time in India [32] Q&A Session Summary Question: When could the new Patterson relationship start to have a bigger impact on the pipeline? - Management indicated that the impact is already being seen, with higher conversion rates and growing bookings from the partnership [48] Question: What is driving the momentum in specialty medical? - The success is attributed to building integrations and addressing pent-up demand for an integrated platform [50] Question: Can you discuss the outlook for net revenue retention (NRR)? - NRR is expected to improve through increased payments and upsell products, with a focus on reducing downgrade rates [56] Question: What are the drivers for potential future margin improvement? - Future margin improvements are expected from the payments product, structural improvements from amortization, and efficient customer service [70]

NYSE: WEAV Weave Overview Q3 2024 Safe Harbor Statement This presentation has been prepared by Weave Communications, Inc. ("Weave", "we", "us", or "our") for informational purposes only and not for any other purpose. This presentation contains "forward-looking statements" within the Private Securities Litigation Reform Act of 1995 that are based on our management's current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of ope ...

Weave Announces Third Quarter 2024 Financial Results • 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 ...

Company Overview - Weave Communications, Inc. (WEAV) shares increased by 8.1% to $12.02 in the last trading session, supported by higher-than-average trading volume [1] - The company is experiencing growth due to the increasing adoption of its solutions, which is positively impacting average revenue per user [1] Financial Performance - Weave is expected to report break-even quarterly earnings per share, reflecting a year-over-year change of +100% [2] - Projected revenues for the upcoming quarter are $51.47 million, representing an 18.2% increase from the same quarter last year [2] Market Trends - The consensus EPS estimate for Weave has remained unchanged over the last 30 days, indicating stability in earnings expectations [3] - The stock's price movement is typically correlated with trends in earnings estimate revisions, suggesting that future price strength may depend on any changes in earnings estimates [3] Industry Context - Weave Communications is part of the Zacks Communication - Network Software industry, which includes other companies like Frontier Communications [3] - Frontier Communications has a consensus EPS estimate of -$0.22 for its upcoming report, showing a significant year-over-year decline of -540% [4]