Financial Data and Key Metrics Changes - In Q4, the company achieved $63.4 million in total revenue, reflecting a 17% year-over-year growth, with gross margin reaching a record 73.3% [20][24] - Operating income for Q4 was $2.3 million, marking an improvement of over $500,000 compared to Q4 2024, resulting in an operating margin of 3.6% [23][30] - For the full year 2025, total revenue grew 17% to $239 million, with gross margin expanding to 72.7%, up 80 basis points from the previous year [30] Business Line Data and Key Metrics Changes - Weave Payments grew at more than twice the rate of total revenue in 2025, driven by new capabilities like automated payment reminders and bulk collections [16] - The specialty medical vertical became the second-largest vertical by location count, with significant growth in Q4 [16] Market Data and Key Metrics Changes - The company is in fewer than 15% of U.S. dental locations, indicating substantial growth potential in the dental market [19] - Specialty medical, which currently holds about 1% market share, is expected to be a significant growth area due to the introduction of AI-powered solutions [20] Company Strategy and Development Direction - The company aims to enhance patient experiences through a unified platform that reduces administrative burdens for healthcare professionals [5][6] - The acquisition of TrueLark is seen as a foundational step in expanding AI Receptionist capabilities, addressing staffing challenges in practices [13][19] - The company plans to roll out an omnichannel AI Receptionist in 2026, which will allow practices to manage patient interactions across various channels [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of revenue growth and margin expansion, emphasizing the importance of AI in enhancing operational efficiency [17][30] - The company anticipates continued strong growth in specialty medical and mid-market sectors, supported by recent investments in sales and marketing [22][31] Other Important Information - The company ended Q4 with $81.7 million in cash and short-term investments, reflecting strong liquidity [23] - The net revenue retention rate in Q4 was 93%, with gross revenue retention at 89%, indicating strong customer retention despite some challenges in newer verticals [24][28] Q&A Session Summary Question: Can you elaborate on the CareCredit integration? - The CareCredit partnership opens new avenues for capturing volumes that would otherwise flow through CareCredit, enhancing the payment solution's attractiveness [35][36] Question: What are your expectations for growth rates across different subverticals in 2026? - Management anticipates strong growth across specialty medical and mid-market sectors, with specialty medical expected to lead due to recent marketing efforts [37][38] Question: How do you plan to monetize the new AI capabilities? - The company is exploring whether to price new functionalities as additional modules or include them in existing bundles, confident in the ability to monetize the AI omnichannel receptionist [42][43] Question: Have churn rates stabilized in specialty medical cohorts? - Churn rates have shown improvement in Q4, returning to historical levels, with ongoing integrations expected to further enhance retention [44][45] Question: What are the investment priorities for the coming year? - Investment priorities include product and engineering, particularly in enhancing AI capabilities, as well as adjustments to the go-to-market strategy for efficiency [52][54] Question: How does Weave differentiate its AI capabilities from competitors? - Weave's unique advantages include ownership of the telephony stack, deep industry-specific workflows, and the ability to retain context across various patient interactions [56][58]

Financial Data and Key Metrics Changes - In Q4 2025, Weave Communications achieved a revenue growth of 17% year-over-year, with total revenue reaching $63.4 million [22] - Gross margin expanded to a record 73.3%, reflecting a year-over-year improvement of 70 basis points [22] - Operating income for Q4 was $2.3 million, marking an operating margin of 3.6%, which is a 30 basis point improvement from the previous year [25] - For the full year 2025, total revenue grew 17% to $239 million, and gross margin for the year expanded to 72.7%, up 80 basis points from the prior year [32] Business Line Data and Key Metrics Changes - Weave Payments grew at more than twice the rate of total revenue in 2025, driven by new capabilities like automated payment reminders and bulk collections [18] - The specialty medical vertical became the second-largest vertical by location count, with significant growth in Q4 [18] - The acquisition of TrueLark added AI receptionist capabilities, enhancing the product offering and expanding the total addressable market by approximately $7 billion to an estimated $22 billion [21] Market Data and Key Metrics Changes - Weave has been endorsed by the American Dental Association as its exclusive patient engagement solution, providing access to 160,000 members [22] - The company is in the early stages of penetration in the specialty medical market, currently holding roughly 1% market share [22] Company Strategy and Development Direction - The company aims to leverage AI to reduce administrative burdens for healthcare professionals, enhancing patient care and operational efficiency [6][10] - Weave plans to roll out an omni-channel AI receptionist across all vertical markets in 2026, which will allow practices to handle calls 24/7 [16] - The focus is on integrating AI capabilities into existing workflows to create a seamless experience for healthcare providers [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of revenue growth and margin expansion, highlighting the importance of customer success in driving long-term value [19] - The company anticipates continued strong growth in specialty medical and mid-market sectors, supported by recent investments in sales and marketing [40] - Management expects total revenue for Q1 2026 to be in the range of $64.2 million to $64.8 million, with an operating income of $1 million to $2 million [33] Other Important Information - The company ended Q4 with $81.7 million in cash and short-term investments, reflecting strong liquidity [25] - Free cash flow for the full year was $12.9 million, representing a 24% year-over-year growth [26] Q&A Session Summary Question: Can you talk about the CareCredit integration? - The CareCredit partnership opens avenues to capture volumes that would otherwise flow through CareCredit, enhancing the payment solution for practices [38] Question: What are your expectations for growth rates across different subverticals in 2026? - Management anticipates strong growth across specialty medical and mid-market sectors, with specialty medical expected to be the fastest-growing segment [40][41] Question: How do you plan to capture the value delivered by new AI capabilities? - The company is exploring monetization strategies for the AI receptionist, considering whether to price it as an additional module or include it in a bundle [45] Question: How do you see the impact of new products like TrueLark on net revenue retention? - The growth from the AI receptionist is expected to be more pronounced in the second half of 2026, with significant upsell opportunities anticipated [72]

Weave Overview NYSE: WEAV February 2025 Q4 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, ...