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It's been a sad week for Weave Communications, Inc. (NYSE:WEAV), who've watched their investment drop 18% to US$14.26 in the week since the company reported its annual result. Weave Communications reported revenues of US$204m, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.40 per share, which were slightly larger than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Weave Communications
Taking into account the latest results, the most recent consensus for Weave Communications from seven analysts is for revenues of US$235.3m in 2025. If met, it would imply a solid 15% increase on its revenue over the past 12 months. Per-share losses are predicted to creep up to US$0.40. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$235.7m and losses of US$0.36 per share in 2025. So it's pretty clear the analysts have mixed opinions on Weave Communications even after this update; although they reconfirmed their revenue numbers, it came at the cost of a noticeable increase in per-share losses.
The consensus price target held steady at US$17.43, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Weave Communications at US$20.00 per share, while the most bearish prices it at US$15.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Weave Communications is an easy business to forecast or the the analysts are all using similar assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Weave Communications' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. Factoring in the forecast slowdown in growth, it looks like Weave Communications is forecast to grow at about the same rate as the wider industry.