Weave munications(WEAV) - 2023 Q4 - Annual Results

Fourth Quarter and Full Year 2023 Financial Results Overview Company Introduction Weave (NYSE: WEAV) is a leading all-in-one customer experience and payments software platform designed for small and medium-sized healthcare businesses - Weave (NYSE: WEAV) is an all-in-one customer experience and payments software platform for small and medium-sized healthcare businesses[2] CEO Commentary CEO Brett White highlighted Weave's strong performance in Q4 2023 and excellent full-year results, with continuous improvements in revenue growth, gross margin, operating margin, Adjusted EBITDA, free cash flow, and customer acquisition, positioning the company for continued success in 2024 - CEO Brett White noted strong Q4 2023 performance and excellent full-year results, with continuous improvements in revenue growth, gross margin, operating margin, Adjusted EBITDA, free cash flow, and customer acquisition[3] - The company is poised for continued success in 2024, leveraging growing market opportunities, customer base economic resilience, and platform innovation[3] Fourth Quarter 2023 Financial Highlights Weave achieved strong financial results in Q4 2023, with total revenue increasing 21.2% year-over-year to $45.7 million, positive cash flow from operations and free cash flow, and narrowed GAAP and non-GAAP operating and net losses Key Financial Highlights for Q4 2023 | Metric | Q4 2023 (million USD) | Q4 2022 (million USD) | Y-o-Y Change | Source Chunk | | :--------------------------------- | :---------- | :---------- | :--------- | :---- | | Total Revenue | $45.7 | $37.7 | +21.2% | [4, 5] | | GAAP Gross Margin | 69.1% | 66.2% | +2.9 pp | [5] | | Non-GAAP Gross Margin | 69.7% | 66.7% | +3.0 pp | [5] | | GAAP Operating Loss | $(8.0) | $(9.7) | Improved | [5] | | Non-GAAP Operating Loss | $(1.7) | $(4.2) | Improved | [5] | | GAAP Net Loss | $(7.0) | $(9.3) | Improved | [5] | | GAAP Net Loss Per Share | $(0.10) | $(0.14) | Improved | [5] | | Non-GAAP Net Loss | $(0.8) | $(3.7) | Improved | [5] | | Non-GAAP Net Loss Per Share | $(0.01) | $(0.06) | Improved | [5] | | Net Cash from Operating Activities | $3.7 | $(2.8) | Improved | [4, 5] | | Free Cash Flow | $2.9 | $(3.8) | Improved | [4, 6] | Full Year 2023 Financial Highlights For fiscal year 2023, Weave's total revenue grew 19.9% to $170.5 million, achieving positive cash flow from operations of $10.2 million and free cash flow of $6.5 million, a significant turnaround from 2022's negative figures, with substantially narrowed GAAP and non-GAAP operating and net losses Key Financial Highlights for Full Year 2023 | Metric | FY 2023 (million USD) | FY 2022 (million USD) | Y-o-Y Change | Source Chunk | | :--------------------------------- | :---------- | :---------- | :--------- | :---- | | Total Revenue | $170.5 | $142.1 | +19.9% | [4, 9] | | GAAP Operating Loss | $(34.4) | $(49.7) | Improved | [9] | | Non-GAAP Operating Loss | $(11.5) | $(31.0) | Improved | [9] | | GAAP Net Loss | $(31.0) | $(49.7) | Improved | [9] | | GAAP Net Loss Per Share | $(0.46) | $(0.76) | Improved | [9] | | Non-GAAP Net Loss | $(8.2) | $(31.0) | Improved | [9] | | Non-GAAP Net Loss Per Share | $(0.12) | $(0.48) | Improved | [9] | | Net Cash from Operating Activities | $10.2 | $(12.8) | Improved | [4, 9] | | Free Cash Flow | $6.5 | $(15.9) | Improved | [4, 9] | Recent Business Highlights As of December 31, 2023, Weave reported a Dollar-Based Net Revenue Retention (NRR) of 95% and Dollar-Based Gross Revenue Retention (GRR) of 92%, adding 3,809 new customer locations for a total of 31,002, while appointing David McNeil as Chief Revenue Officer, enhancing the platform with ACH debit and payment plans, and receiving multiple industry recognitions Key Business Metrics (as of December 31, 2023) | Metric | Value | Source Chunk | | :--------------------------------- | :------ | :---- | | Dollar-Based Net Revenue Retention (NRR) | 95% | [9] | | Dollar-Based Gross Revenue Retention (GRR) | 92% | [9] | | Cash and Cash Equivalents plus Short-Term Investments | $108.8M | [9] | | New Customer Locations in 2023 | 3,809 | [9] | | Total Customer Locations as of Dec 31, 2023 | 31,002 | [9] | - David McNeil appointed Chief Revenue Officer, bringing over 25 years of SaaS business scaling experience[9] - Platform enhanced with ACH debit and payment plans, improving transaction security, reducing costs for healthcare providers, and offering flexible payment options for patients[9] - Recognized by G2 as a leading platform in patient relationship management, ranking first in 27 different categories, and named a 'Best Workplace' for the fifth consecutive year[9] Financial Outlook for Q1 and Full Year 2024 Weave projects total revenue for Q1 2024 to be between $45.2 million and $46.2 million, and for the full year 2024 between $194.0 million and $198.0 million, with non-GAAP operating loss expected to be between $(2.5) million and $(1.5) million for Q1, and between $(6.0) million and $(2.0) million for the full year Financial Guidance for Q1 and Full Year 2024 | Metric | Q1 2024 (million USD) | FY 2024 (million USD) | Source Chunk | | :-------------------------- | :-------------------- | :--------------------------- | :---- | | Total Revenue | $45.2 - $46.2 | $194.0 - $198.0 | [10] | | Non-GAAP Operating Loss | $(2.5) - $(1.5) | $(6.0) - $(2.0) | [10] | | Weighted Average Shares Outstanding | 70.5 | 71.7 | [10] | - Non-GAAP operating loss guidance excludes stock-based compensation expenses, which are difficult to predict and subject to change[11] Supplemental Information and Non-GAAP Financial Measures About Weave Weave is an all-in-one customer experience and payments software platform designed for small and medium-sized healthcare practices, connecting the entire patient journey from first call to final invoice, helping local healthcare professionals attract, communicate with, and engage patients to grow their businesses - Weave provides an all-in-one customer experience and payments software platform serving small and medium-sized healthcare practices[13] - The platform connects the entire patient journey, helping healthcare professionals attract, communicate with, and engage patients to grow their businesses[13] Forward-Looking Statements Disclaimer This press release contains forward-looking statements, including financial estimates for Q1 and full year 2024, which are subject to risks and uncertainties such as the ability to attract and retain customers, manage growth, economic conditions, competition, and platform enhancements, potentially causing actual results to differ materially, and the company undertakes no obligation to update these statements - This press release contains forward-looking statements, including estimates for Q1 and full year 2024 revenue and non-GAAP operating loss[14] - These statements involve risks and uncertainties, such as the ability to attract and retain customers, manage growth, economic conditions, competition, and platform enhancements, which may cause actual results to differ materially from forward-looking statements[15][16] - The company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of publication[17] Channels for Disclosure of Information Weave Communications fulfills its Regulation FD disclosure obligations through its investor relations website, blog posts, press releases, public conference calls, webcasts, and social media platforms (X/Twitter, Facebook, LinkedIn), encouraging investors and media to monitor these channels for information - Weave fulfills Regulation FD disclosure obligations via its investor relations website, blog, press releases, public conference calls, webcasts, and social media (X, Facebook, LinkedIn)[18] Supplemental Financial Definitions This section provides definitions for Weave's key supplemental financial metrics, including Dollar-Based Net Revenue Retention (NRR), Dollar-Based Gross Revenue Retention (GRR), and Number of Locations, which help investors understand the company's customer growth and retention Dollar-Based Net Revenue Retention (NRR) NRR is calculated by dividing the adjusted monthly revenue (AMR) of a base group of active customer locations in the same month of the following year (Comparison Month) by their AMR in the Base Month, with annual NRR being the weighted average of monthly net retention rates over the past twelve months, and AMR including subscription revenue and the average recurring payment revenue over the past three months - NRR is calculated by comparing the adjusted monthly revenue (AMR) of a base group of active customer locations in the same month of the following year to their AMR in the base month[19] - AMR includes subscription revenue and the average recurring payment revenue over the past three months[19] Dollar-Based Gross Revenue Retention (GRR) GRR measures the retained revenue from a base group of subscribed customer locations from a Base Month by calculating their remaining AMR twelve months after the Base Month and dividing it by the Base Month's AMR, reflecting revenue reduction due to customer churn but excluding changes from revenue expansion, contraction, or new customer locations - GRR is calculated by comparing the remaining adjusted monthly revenue (AMR) of a base group of subscribed customer locations twelve months after the base month to their AMR in the base month[20] - GRR reflects revenue reduction due to customer churn, but excludes changes from revenue expansion, contraction, or new customer locations[20] Number of Locations The number of customer locations refers to the total active subscribed customer locations on the Weave platform at the end of each month, where a single organization with multiple departments, branches, or subsidiaries, each with a separate subscription, is counted as multiple locations, and this information is only provided in annual and Q4 performance reports - 'Number of Locations' refers to the total active subscribed customer locations on the Weave platform at the end of each month[21] - A single organization with multiple subscribed departments or offices is counted as multiple locations[21] - Customer location information is provided only in annual and Q4 performance reports[22] Non-GAAP Financial Measures Definitions and Limitations Weave utilizes several non-GAAP financial measures, such as non-GAAP net loss, gross profit, operating expenses, operating loss, Adjusted EBITDA, and free cash flow, to analyze financial performance and evaluate operational results, providing additional investor insight despite inherent limitations that necessitate they not be viewed in isolation or as substitutes for GAAP reported results - Weave uses non-GAAP financial measures (e.g., non-GAAP net loss, gross profit, operating expenses, operating loss, Adjusted EBITDA, and free cash flow) to analyze financial performance and evaluate operational results[23] - These non-GAAP metrics have limitations and should not be viewed in isolation or as substitutes for GAAP financial results[23] Non-GAAP Net Loss, Margin, and Per Share Non-GAAP net loss is defined as GAAP net loss adjusted to exclude stock-based compensation expense, with non-GAAP net loss margin being the percentage of non-GAAP net loss to revenue, and non-GAAP net loss per share calculated by dividing non-GAAP net loss by the diluted weighted-average shares outstanding - Non-GAAP net loss is the result of GAAP net loss excluding stock-based compensation expense[24] - Non-GAAP net loss margin is the percentage of non-GAAP net loss to revenue, and non-GAAP net loss per share is calculated by dividing non-GAAP net loss by the diluted weighted-average shares outstanding[24] Non-GAAP Gross Profit and Margin Non-GAAP gross profit is defined as GAAP gross profit adjusted to exclude stock-based compensation expense, with non-GAAP gross margin calculated as the percentage of non-GAAP gross profit to revenue - Non-GAAP gross profit is the result of GAAP gross profit excluding stock-based compensation expense[25] - Non-GAAP gross margin is the percentage of non-GAAP gross profit to revenue[25] Non-GAAP Operating Expenses Non-GAAP operating expenses, whether in total or by component (i.e., sales and marketing, research and development, or general and administrative), are defined as the corresponding GAAP operating expenses adjusted to exclude applicable stock-based compensation expense - Non-GAAP operating expenses (sales and marketing, R&D, general and administrative) are the corresponding GAAP operating expenses excluding applicable stock-based compensation expense[26] Non-GAAP Loss from Operations and Margin Non-GAAP loss from operations is defined as GAAP loss from operations less stock-based compensation expense, with the non-GAAP loss from operations margin being this non-GAAP figure as a percentage of revenue - Non-GAAP loss from operations is the result of GAAP loss from operations less stock-based compensation expense[27] - Non-GAAP loss from operations margin is the percentage of non-GAAP loss from operations to revenue[27] Adjusted EBITDA Adjusted EBITDA is defined as earnings before interest expense, interest income, other income/expense, provision for income taxes, depreciation, and amortization, further excluding stock-based compensation expense, and is used by management and investors to measure financial and operational performance and for budgeting, providing consistency and comparability with past financial results - Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, and stock-based compensation expense[28][29] - This metric provides management and investors with consistency and comparability in financial performance, and is used for measuring operational performance and budgeting[29] Free Cash Flow Free cash flow is calculated as net cash provided by (or used in) operating activities, less purchases of property and equipment and capitalized internal-use software costs, serving as a useful liquidity measure that, even when negative, provides information about the amount of cash consumed by operating and investing activities - Free cash flow is net cash from operating activities less purchases of property and equipment and capitalized internal-use software costs[30] - It is a useful liquidity metric, providing information on cash consumed by operating and investing activities, even when negative[30] Limitations of Non-GAAP Financial Measures Non-GAAP financial measures have several limitations, including potential incomparability with other companies' calculations; specifically, free cash flow does not reflect future contractual commitments or total increases/decreases in cash balances, while Adjusted EBITDA excludes non-cash stock-based compensation expense and working capital needs, all of which may reduce their analytical usefulness - Non-GAAP financial information may differ from other companies' calculations, leading to incomparability[31] - Free cash flow does not reflect future contractual commitments or total increases/decreases in cash balances[31] - Adjusted EBITDA excludes non-cash stock-based compensation expense and working capital needs, potentially reducing its analytical usefulness[31] Condensed Consolidated Financial Statements (GAAP) Condensed Consolidated Balance Sheets As of December 31, 2023, Weave's total assets were $201.0 million, down from $208.3 million in 2022, with total liabilities also decreasing from $125.1 million to $122.1 million, and total stockholders' equity at $79.0 million, lower than the previous year's $83.2 million Condensed Consolidated Balance Sheets (Key Data, in thousands USD) | Metric | Dec 31, 2023 (K USD) | Dec 31, 2022 (K USD) | Y-o-Y Change (K USD) | Source Chunk | | :--------------------------------- | :----------- | :----------- | :--------- | :---- | | Total Assets | $201,012 | $208,349 | $(7,337) | [34] | | Total Liabilities | $122,055 | $125,130 | $(3,075) | [34] | | Total Stockholders' Equity | $78,957 | $83,219 | $(4,262) | [34] | | Cash and Cash Equivalents | $50,756 | $61,997 | $(11,241) | [34] | | Short-Term Investments | $58,088 | $51,340 | $6,748 | [34] | | Current Portion of Long-Term Debt | $0 | $10,000 | $(10,000) | [34] | Condensed Consolidated Statements of Operations For fiscal year 2023, Weave's revenue increased to $170.5 million from $142.1 million in 2022, with gross profit rising from $88.8 million to $116.1 million, and the company significantly narrowed its GAAP operating loss to $(34.4) million from $(49.7) million, and net loss improved from $(49.7) million to $(31.0) million Condensed Consolidated Statements of Operations (Key Data, in thousands USD) | Metric | FY 2023 (K USD) | FY 2022 (K USD) | Y-o-Y Change | Q4 2023 (K USD) | Q4 2022 (K USD) | Q4 Y-o-Y Change | Source Chunk | | :--------------------------------- | :---------- | :---------- | :--------- | :---------- | :---------- | :------------ | :---- | | Revenue | $170,468 | $142,117 | +19.9% | $45,692 | $37,685 | +21.2% | [36] | | Cost of Revenue | $54,377 | $53,276 | +2.1% | $14,111 | $12,751 | +10.7% | [36] | | Gross Profit | $116,091 | $88,841 | +30.7% | $31,581 | $24,934 | +26.7% | [36] | | Total Operating Expenses | $150,457 | $138,545 | +8.6% | $39,574 | $34,679 | +14.1% | [36] | | Loss from Operations | $(34,366) | $(49,704) | Improved | $(7,993) | $(9,745) | Improved | [36] | | Net Loss | $(31,031) | $(49,738) | Improved | $(7,039) | $(9,266) | Improved | [36] | | Net Loss Per Share | $(0.46) | $(0.76) | Improved | $(0.10) | $(0.14) | Improved | [36] | Condensed Consolidated Statements of Cash Flows In fiscal year 2023, Weave's cash flow from operating activities turned positive at $10.2 million, a significant improvement from negative $12.8 million in 2022, while net cash used in investing activities decreased to $(7.7) million, primarily due to changes in short-term investments, and net cash used in financing activities increased to $(13.7) million Condensed Consolidated Statements of Cash Flows (Key Data, in thousands USD) | Metric | FY 2023 (K USD) | FY 2022 (K USD) | Y-o-Y Change | Q4 2023 (K USD) | Q4 2022 (K USD) | Q4 Y-o-Y Change | Source Chunk | | :--------------------------------- | :---------- | :---------- | :--------- | :---------- | :---------- | :------------ | :---- | | Net Cash from Operating Activities | $10,221 | $(12,766) | Improved | $3,742 | $(2,841) | Improved | [39] | | Net Cash from Investing Activities | $(7,739) | $(54,026) | Improved | $(3,021) | $(51,841) | Improved | [39] | | Net Cash from Financing Activities | $(13,723) | $(7,207) | Increased | $(13,256) | $(1,679) | Increased | [39] | | Net Increase (Decrease) in Cash and Cash Equivalents | $(11,241) | $(73,999) | Improved | $(12,535) | $(56,361) | Improved | [39] | | Cash and Cash Equivalents, End of Period | $50,756 | $61,997 | $(11,241) | $50,756 | $61,997 | $(11,241) | [39] | Disaggregated Revenue and Cost of Revenue (GAAP) Weave's primary revenue source, 'Subscription and Payment Processing,' saw significant growth in 2023, with revenue increasing from $136.6 million (74% gross margin) in 2022 to $162.7 million (77% gross margin), while 'Onboarding' and 'Hardware' segments remained at negative gross margins but showed improvement in 2023 compared to 2022 Disaggregated Revenue and Cost of Revenue (GAAP, in thousands USD) | Business Segment | Metric | FY 2023 (K USD) | FY 2022 (K USD) | Y-o-Y Change | Q4 2023 (K USD) | Q4 2022 (K USD) | Q4 Y-o-Y Change | Source Chunk | | :--------------------------------- | :---------- | :---------- | :--------- | :---------- | :---------- | :------------ | :---- | | Subscription and Payment Processing | Revenue | $162,715 | $136,592 | +19.1% | $43,726 | $36,163 | +20.9% | [41] | | | Gross Profit | $124,521 | $101,584 | +22.6% | $33,505 | $27,530 | +21.7% | [41] | | | Gross Margin | 77% | 74% | +3 pp | 77% | 76% | +1 pp | [41] | | Onboarding | Revenue | $3,232 | $1,288 | +150.9% | $824 | $428 | +92.5% | [41] | | | Gross Profit | $(5,478) | $(8,324) | Improved | $(1,198) | $(1,665) | Improved | [41] | | | Gross Margin | (169)% | (646)% | Improved | (145)% | (389)% | Improved | [41] | | Hardware | Revenue | $4,521 | $4,237 | +6.7% | $1,142 | $1,094 | +4.4% | [41] | | | Gross Profit | $(2,952) | $(4,419) | Improved | $(726) | $(931) | Improved | [41] | | | Gross Margin | (65)% | (104)% | Improved | (64)% | (85)% | Improved | [41] | Reconciliation of GAAP to Non-GAAP Financial Measures Non-GAAP Gross Profit Reconciliation For fiscal year 2023, non-GAAP gross profit was $117.1 million, up from $89.6 million in 2022, with non-GAAP gross margin at 69%, an increase from 63% in 2022, primarily achieved by adding back stock-based compensation expense Non-GAAP Gross Profit Reconciliation (in thousands USD) | Metric | FY 2023 (K USD) | FY 2022 (K USD) | Y-o-Y Change | Q4 2023 (K USD) | Q4 2022 (K USD) | Q4 Y-o-Y Change | Source Chunk | | :--------------------------------- | :---------- | :---------- | :--------- | :---------- | :---------- | :------------ | :---- | | GAAP Gross Profit | $116,091 | $88,841 | +30.7% | $31,581 | $24,934 | +26.7% | [44] | | Stock-Based Compensation Expense Add-back | $971 | $723 | +34.3% | $249 | $209 | +19.1% | [44] | | Non-GAAP Gross Profit | $117,062 | $89,564 | +30.7% | $31,830 | $25,143 | +26.6% | [44] | | GAAP Gross Margin | 68% | 63% | +5 pp | 69% | 66% | +3 pp | [44] | | Non-GAAP Gross Margin | 69% | 63% | +6 pp | 70% | 67% | +3 pp | [44] | Non-GAAP Operating Expenses Reconciliation In fiscal year 2023, non-GAAP sales and marketing expenses were $66.5 million, non-GAAP R&D expenses were $28.5 million, and non-GAAP general and administrative expenses were $33.6 million, with all non-GAAP operating expense categories showing year-over-year growth, albeit at a lower rate than GAAP figures due to the exclusion of stock-based compensation expense Non-GAAP Operating Expenses Reconciliation (in thousands USD) | Metric | FY 2023 (K USD) | FY 2022 (K USD) | Y-o-Y Change | Q4 2023 (K USD) | Q4 2022 (K USD) | Q4 Y-o-Y Change | Source Chunk | | :--------------------------------- | :---------- | :---------- | :--------- | :---------- | :---------- | :------------ | :---- | | Sales and Marketing | | | | | | | | | GAAP | $70,765 | $65,378 | +8.2% | $18,291 | $16,118 | +13.5% | [45] | | Stock-Based Compensation Expense Exclude | $(4,233) | $(3,436) | +23.2% | $(776) | $(1,105) | -29.8% | [45] | | Non-GAAP | $66,532 | $61,942 | +7.4% | $17,515 | $15,013 | +16.7% | [45] | | Research and Development | | | | | | | | | GAAP | $34,040 | $30,714 | +10.8% | $9,133 | $8,185 | +11.6% | [45] | | Stock-Based Compensation Expense Exclude | $(5,590) | $(4,576) | +22.1% | $(1,863) | $(1,654) | +12.6% | [45] | | Non-GAAP | $28,450 | $26,138 | +8.8% | $7,270 | $6,531 | +11.3% | [45] | | General and Administrative | | | | | | | | | GAAP | $45,652 | $42,453 | +7.5% | $12,150 | $10,376 | +17.1% | [45] | | Stock-Based Compensation Expense Exclude | $(12,029) | $(10,017) | +20.1% | $(3,359) | $(2,557) | +31.4% | [45] | | Non-GAAP | $33,623 | $32,436 | +3.7% | $8,791 | $7,819 | +12.4% | [45] | Non-GAAP Loss from Operations Reconciliation For fiscal year 2023, non-GAAP loss from operations significantly improved to $(11.5) million, down from $(31.0) million in 2022, with the non-GAAP operating loss margin also improving from (22)% to (7)%, primarily due to the exclusion of stock-based compensation expense Non-GAAP Loss from Operations Reconciliation (in thousands USD) | Metric | FY 2023 (K USD) | FY 2022 (K USD) | Y-o-Y Change | Q4 2023 (K USD) | Q4 2022 (K USD) | Q4 Y-o-Y Change | Source Chunk | | :--------------------------------- | :---------- | :---------- | :--------- | :---------- | :---------- | :------------ | :---- | | GAAP Loss from Operations | $(34,366) | $(49,704) | Improved | $(7,993) | $(9,745) | Improved | [47] | | Stock-Based Compensation Expense Add-back | $22,823 | $18,752 | +21.7% | $6,247 | $5,525 | +13.1% | [47] | | Non-GAAP Loss from Operations | $(11,543) | $(30,952) | Improved | $(1,746) | $(4,220) | Improved | [47] | | GAAP Operating Loss Margin | (20)% | (35)% | Improved | (17)% | (26)% | Improved | [47] | | Non-GAAP Operating Loss Margin | (7)% | (22)% | Improved | (4)% | (11)% | Improved | [47] | Non-GAAP Net Loss Reconciliation For fiscal year 2023, non-GAAP net loss significantly improved to $(8.2) million, down from $(31.0) million in 2022, with non-GAAP net loss per share also improving from $(0.48) to $(0.12), reflecting the exclusion of stock-based compensation expense Non-GAAP Net Loss Reconciliation (in thousands USD, except per share data) | Metric | FY 2023 (K USD) | FY 2022 (K USD) | Y-o-Y Change | Q4 2023 (K USD) | Q4 2022 (K USD) | Q4 Y-o-Y Change | Source Chunk | | :--------------------------------- | :---------- | :---------- | :--------- | :---------- | :---------- | :------------ | :---- | | GAAP Net Loss | $(31,031) | $(49,738) | Improved | $(7,039) | $(9,266) | Improved | [48] | | Stock-Based Compensation Expense Add-back | $22,823 | $18,752 | +21.7% | $6,247 | $5,525 | +13.1% | [48] | | Non-GAAP Net Loss | $(8,208) | $(30,986) | Improved | $(792) | $(3,741) | Improved | [48] | | GAAP Net Loss Per Share | $(0.46) | $(0.76) | Improved | $(0.10) | $(0.14) | Improved | [48] | | Non-GAAP Net Loss Per Share | $(0.12) | $(0.48) | Improved | $(0.01) | $(0.06) | Improved | [48] | Free Cash Flow Reconciliation In fiscal year 2023, Weave achieved positive free cash flow of $6.5 million, a substantial improvement from negative $15.9 million in 2022, primarily driven by the turnaround in cash flow from operating activities and effective capital expenditure management Free Cash Flow Reconciliation (in thousands USD) | Metric | FY 2023 (K USD) | FY 2022 (K USD) | Y-o-Y Change | Q4 2023 (K USD) | Q4 2022 (K USD) | Q4 Y-o-Y Change | Source Chunk | | :--------------------------------- | :---------- | :---------- | :--------- | :---------- | :---------- | :------------ | :---- | | Net Cash from Operating Activities | $10,221 | $(12,766) | Improved | $3,742 | $(2,841) | Improved | [50] | | Less: Purchases of Property and Equipment | $(1,691) | $(1,895) | Improved | $(178) | $(704) | Improved | [50] | | Less: Capitalized Internal-Use Software Costs | $(1,999) | $(1,232) | Increased | $(629) | $(229) | Increased | [50] | | Free Cash Flow | $6,531 | $(15,893) | Improved | $2,935 | $(3,774) | Improved | [50] | Adjusted EBITDA Reconciliation For fiscal year 2023, Adjusted EBITDA significantly improved to $(7.8) million, down from $(27.2) million in 2022, which reflects enhanced operational performance and the exclusion of non-cash expenses like stock-based compensation Adjusted EBITDA Reconciliation (in thousands USD) | Metric | FY 2023 (K USD) | FY 2022 (K USD) | Y-o-Y Change | Q4 2023 (K USD) | Q4 2022 (K USD) | Q4 Y-o-Y Change | Source Chunk | | :--------------------------------- | :---------- | :---------- | :--------- | :---------- | :---------- | :------------ | :---- | | Net Loss | $(31,031) | $(49,738) | Improved | $(7,039) | $(9,266) | Improved | [51] | | Interest Expense | $1,923 | $1,441 | +33.4% | $438 | $436 | +0.5% | [51] | | Provision for Income Taxes | $260 | $104 | +150.0% | $112 | $22 | +409.1% | [51] | | Interest Income | $(2,196) | $(1,155) | +90.1% | $(639) | $(549) | +16.4% | [51] | | Other Income/Expense, Net | $(3,322) | $(356) | +833.1% | $(865) | $(388) | +122.9% | [51] | | Depreciation | $2,441 | $2,609 | -6.5% | $625 | $606 | +3.1% | [51] | | Amortization | $1,256 | $1,140 | +10.2% | $332 | $289 | +14.9% | [51] | | Stock-Based Compensation Expense | $22,823 | $18,752 | +21.7% | $6,247 | $5,525 | +13.1% | [51] | | Adjusted EBITDA | $(7,846) | $(27,203) | Improved | $(789) | $(3,325) | Improved | [51] | Investor and Media Information Webcast Details Weave held a conference call and webcast for analysts and investors on February 21, 2024, at 4:30 PM ET, with a replay available on its investor relations website - The conference call and webcast were held on February 21, 2024, at 4:30 PM ET[12] - A replay of the webcast is available on Weave's investor relations page at investors.getweave.com[12] Contact Information Investor Relations contact is Mark McReynolds (ir@getweave.com), and Media Relations contact is Natalie House (pr@getweave.com) - Investor Relations contact: Mark McReynolds (ir@getweave.com)[32] - Media Relations contact: Natalie House (pr@getweave.com)[32]