In This Article:
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Q1 Revenue: $55.8 million, representing 18.3% year-over-year growth.
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Gross Margin: 72.1%, a 170 basis point improvement year-over-year.
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Operating Income: $39,000, an improvement of $1.4 million year-over-year.
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Adjusted EBITDA: $1 million, improving by $1.4 million year-over-year.
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Cash and Short-term Investments: $98.2 million at the end of Q1.
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Free Cash Flow: Negative $1.1 million.
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Net Revenue Retention (NRR): 98%.
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Gross Revenue Retention (GRR): 91%.
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Q2 Revenue Guidance: $57.3 million to $58.3 million.
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Full Year Revenue Guidance: Raised to $236.8 million to $239.8 million.
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TrueLark Acquisition Cost: $35 million ($25 million in cash and $10 million in equity).
Release Date: May 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Weave Communications Inc (NYSE:WEAV) reported a strong start to 2025 with Q1 revenue growth of 18% year over year, marking the 13th consecutive quarter of exceeding guidance.
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The acquisition of TrueLark, an AI-powered receptionist platform, is expected to expand Weave's addressable market to over $10 billion in the US alone.
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Weave's gross margin improved to 72.1%, a 170 basis point increase year over year, reflecting strong unit economics and operational efficiency.
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The company launched three new integrations, increasing its integrated market by approximately 60,000 locations, which has already led to increased sales.
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Weave continues to be recognized for its exceptional customer experiences, ranking in the TOP50 on G2's 2025 Best Software Awards and first in 33 categories in G2's Spring 2025 report.
Negative Points
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The acquisition of TrueLark will result in additional R&D and sales and marketing expenses, impacting Weave's non-GAAP operating income guidance.
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Weave anticipates a non-GAAP operating loss in the range of $1 million to break even for Q2 2025, partly due to the integration costs of TrueLark.
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The company faces challenges in further reducing customer acquisition costs and increasing the velocity of gross additions.
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Weave's payments business, while growing, still makes up less than 10% of total revenue, indicating room for improvement in this segment.
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The company is navigating potential trade barriers and tariffs, which could impact hardware stock and operational costs.
Q & A Highlights
Q: Brett, can you discuss how the acquisition of TrueLark is incremental to your existing bundles and the cross-sell opportunities it presents? A: Brett White, CEO: We have joint customers with TrueLark, which allowed us to understand its value as a revenue driver. TrueLark automates appointment booking and helps with marketing and lead conversion, both during office hours and after. It is highly complementary and incremental to our solution. TrueLark primarily sold to large DSOs, while most of our customers are single locations, presenting a significant cross-sell opportunity. We are investing in onboarding and sales resources to bring this product to our customer base.