Weave munications(WEAV) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 2025 was $55.8 million, an increase of 18.3% year-over-year from $47.2 million in Q1 2024[6] - GAAP gross margin improved to 71.6%, up 170 basis points from 69.9% in Q1 2024[6] - Non-GAAP gross margin also increased to 72.1%, up 170 basis points from 70.4% in Q1 2024[6] - GAAP net loss for Q1 2025 was $8.8 million, or $0.12 per share, compared to a net loss of $7.2 million, or $0.10 per share, in Q1 2024[6] - Non-GAAP net income was $0.5 million, or $0.01 per share, compared to a non-GAAP net loss of $0.4 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $1.0 million, compared to a negative $0.4 million in Q1 2024[6] - Revenue for Q1 2025 was $55,809,000, representing a 18.4% increase from $47,173,000 in Q1 2024[34] - Gross profit for Q1 2025 was $39,945,000, up from $32,987,000 in Q1 2024, indicating a growth of 21.1%[34] - Total operating expenses increased to $49,265,000 in Q1 2025 from $41,142,000 in Q1 2024, reflecting a rise of 19.8%[34] - Net loss for Q1 2025 was $8,825,000, compared to a net loss of $7,203,000 in Q1 2024, showing an increase in losses of 22.5%[34] - Non-GAAP gross profit for Q1 2025 was $40,230,000, compared to $33,226,000 in Q1 2024, marking a 20.9% increase[40] - Non-GAAP income from operations for Q1 2025 was $39,000, compared to a loss of $1,383,000 in Q1 2024, indicating a significant improvement[42] - Free cash flow for Q1 2025 was $(1,062,000), a decrease from $(20,519,000) in Q1 2024, indicating a substantial reduction in cash outflow[44] - Adjusted EBITDA for Q1 2025 was $1,020,000, compared to a loss of $(358,000) in Q1 2024, reflecting a positive shift in operational performance[45] Future Projections - For Q2 2025, total revenue is projected to be between $57.3 million and $58.3 million[8] - Full-year revenue guidance for 2025 is estimated to be between $236.8 million and $239.8 million[8] Acquisition and Market Expansion - The company announced an agreement to acquire TrueLark for $35.0 million, which includes $25.0 million in cash and $10.0 million in equity[11] - The acquisition of TrueLark is expected to enhance Weave's AI capabilities and expand its addressable market[3] Cash and Assets - Cash and cash equivalents at the end of Q1 2025 were $53,410,000, up from $51,596,000 at the end of Q4 2024[35] - Total assets as of March 31, 2025, were $188,310,000, slightly down from $188,926,000 as of December 31, 2024[32] Margins and Costs - The gross margin for subscription and payment processing improved to 77.4% in Q1 2025 from 76.6% in Q1 2024[36] - GAAP net loss margin for Q1 2025 was (15.8)%, slightly worse than (15.3)% in Q1 2024, indicating ongoing challenges in profitability[43] - Non-GAAP net income margin for Q1 2025 was 1.0%, improving from (0.9)% in Q1 2024, suggesting better cost management[43] Stock and Interest - Stock-based compensation increased to $8,985,000 in Q1 2025 from $6,772,000 in Q1 2024, reflecting higher employee incentives[45] - Interest expense increased to $397,000 in Q1 2025 from $319,000 in Q1 2024, indicating rising borrowing costs[45] - Weighted-average common shares outstanding for Q1 2025 were 73,806,981, up from 70,452,944 in Q1 2024, suggesting dilution effects[43] - Net cash used in operating activities for Q1 2025 was $(219,000), a significant improvement from $(19,701,000) in Q1 2024[44]