WEAV - Earnings call transcript Q4 2021 | Weave Communications, Inc.

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Operator

Good day and welcome to the Weave's Fourth Quarter 2021 Earnings Conference Call. Today's conference is being recorded. At this time I would like to turn the conference over to [indiscernible]. Please go ahead, sir.

Unidentified Company Representative

Good afternoon and thank you for joining us for the Weave Communications fourth quarter and 2021 earnings call.

call Taylor, Roy Chief the Officer Chief on Alan and Financial me today Banks, are Executive Joining Officer. found release, Full additional details at can investors.gateweaeve.com. earnings the management and Investor be which commentary are section of available in website our of on the results Relations our the website. Please this on be of section simultaneously will that Relations the note webcast call Investor company's corporate

laws, contains of like start, remind you financial securities discussion I the following meaning the would future to but to forward-looking we limited within Before the statements beliefs, not statements including federal that regarding results statements materially cause differ and management's expectations the involve and guarantees may plans to for results from the those are business. promises risk These actual that discussed neither and here. uncertainties and nor

on cause SEC's on that reliance on the The be your and subsequent the or available may are on statements. You expectations December to on the our except we filed to forward-looking differ discussion on be otherwise developments them, from result with Any non-GAAP made XXXX, place any actual following based accessible update law. this Weave contains www.sec.gov as supplemented whether looking today assumes reports to form which should revise at conference no including could the as new or responses SEC. of in current call as statements can and financial investors.gateweave.com required our measures. a of periodic SEC in statements with questions obligation by website also website X, forward at found undue Factors results filed forward-looking XX-Q not is as

is metric, comparable earnings release of press see to of website IR each reconciliation of For the in our measures non-GAAP investors.gateweave.com. financial at please available our section the directly most GAAP these which

over Chief call Weave. Roy, Officer I to the Executive of turn will Now

Roy Banks

At and we the everyone. afternoon, And our our backbone small economy of today. recognize you us are joining that communities. thank Weave Good for businesses

platform to and in beginning, healthcare communicate part lives. small innovative designed specifically essential From significant is healthcare phone of sector the could everyday very businesses an support developed intelligent we a Specifically, they enables our so the modernize their further and unified that to in that and estimated penetrate engage and here a product way billion communications our the evolved U.S. has Today us platform into the TAM personalize patients. they with XX.X

Additionally, over sized continue help how transform their attract, successfully retain they their further to business our and our and for COVID the two and providing past small a years, we businesses communicate, that serve customers solutions adapt product world. practices engage medium post-COVID with innovative by modified We to customers.

our unrelated As way a point expensive solution the effective that multiple unified improves cost solutions entire result, customer simultaneously platform in a experience. replaces and

of resilience face the and the challenges. each to verticals needs. and the individual to of support these healthcare their macroeconomic demonstrated We our dental, pandemic sector, have in importance by the optometry core refine our Given shown meet continuing in to veterinary solutions customer success of ability verticals our

our platform into us about continue the unique refine opportunity. needs and strong market new deliver market meet our we services to revenue evaluate to Following to we the year-over-year growth consistent and our enabled need have exciting learn entrants conditions. recent despite of the how this platform home of to benefits vertical, The challenging

by customer new full $XXX.X XXXX total driven over million adding full net XXXX a with locations up year of revenue XX,XXX. prior we was year. This total earn of end the to growth the For XX% year the

up of XX% revenue QX Alan $XX.X further later million we earned year-over-year total discuss will which on the in Specifically call.

employees, ability the pandemic strong to an the As related customers and upon performance business that operate successfully customers I share our and am I on business. I achievement that a Weave important to the contributed the despite I to and partners, grateful evolving now. like impacts proud the of macroeconomic am milestones efforts and our of would our back XXXX, of look truly the few uncertainty our of environment, for

hires. several Officer, our both In help and growth we particular, a to expanded team and Chief executive are company, Marketing execution. Revenue roles hired we Officer First, Chief accelerate go-to-market will our of a new our leadership with which and within revenue

we plumbing. We [indiscernible] executed and solutions completed the playbook, home Stock vertical, strong to services third entered serve executing anniversary, began our in to our we and strategy and and already We continue our vertical on our cap exciting select what November IPO our and to York corporate We enhance customers. year domino including integrations veterinary providers year better by trading with an audiology Exchange. XX our off expansion celebrated was party as the New

we early As payments XXXX, has to our now of Weave already since of launch surpassed in XXXX. solution incredible milestone billion its processing the turn payment volume $X

terminals continue in XX We on payment operates operations, their Collectively, we this won text yet A another than unify to that solution payments decided the our Based that a across small in our ways. their convenient to Organization, test Care of engagement Dental engage payment or file with manner. businesses country. across Weave help office more history, integrate on pay, expand a to wireless more and the efficiencies, early recently confirmed the named as that and XXX pilot with Service card success by DSO organization. collecting they communication Dental announced location and timely patients company added pilot in customer and faster could we service more create program, platform way Alliance full solution In engagement largest capabilities, this features. customers add such February, locations

locations of working the client schedule the onboarding a of now remaining with align healthy new the over and process few creating this new are quarters, next to We locations. pipeline

challenged business challenges, customer onboarding increase which the growth environment improved include, the organizations. processes reduce is This we in and sales our changing light to and our enhance operations. uncertainty combined areas, across of few that veterinary retain, and we generate significant ongoing functionality our In is macroeconomic core the increase ROI more recognize in Chief will the and marketing optometry plan, the the to and and acquisition to are labor As of within customer efforts lead and will add recently and proven support we evolving sales platform productivity our In to remain Under beyond productivity and this overall our improve anticipated our of and control, conditions the and and our prepared market maximizing these within macroeconomic hire customer XXXX experience. markets time these we to remain to our us to of that the for focused we including despite sustainability aspects our our pandemic, have environment. we and each strategies Chief sales program continue improve effort Officer, we Marketing Officer improve, key our underpenetrated. leadership actions dental, taking appointed functions, are alignment which refocus ongoing new continued will our Revenue largely costs, A go-to-market over verticals effectiveness, optimize adapt generation, of of opportunities to represent of ROI. and on ramp

pandemic. core opportunity product the our by resonates are markets fit market of as remains in We during market increase and to more share our each the excited strong our acutely

levels. our and we still less progress make will In verticals which historically Weave's To payments events, these services, expect in efforts provided surpass that live marketing our pre-COVID we the acquisition severe, of lead and and selectively and in offering to our come invest extent which participation this the their the pandemic our resources channels. early level customer XXXX, that Additionally, continue will flow high our new and may medical stages. quality we as exploit valuable XXXX events again in XXXX specialty back, improve home significant are once will impact become our

well in events pre-pandemic of XXXX the XXXX number the below be However, live expected to still levels. are marketing

So continuing lead implementing generation digital reliance to previous our executing new marketing and events tactics. we live and on by are sales offset

fit. sources, also lead will generation person target optimize lead. our where help costs, our customer we have processing incredible revenue payment and This sales had increase success lower narrowly product efforts model ultimately Set revenue. are subscription more way acquisition market future local to and our value our evolving will and We proven another and per grow volume lead markets and opportunities the productivity,

our customer future scale for part to optimize adapt our As are into a go-to-market and and we us growth. cycle, better strategy, approach reduces allows our motion efficient supports our in that of to acquisition costs, continued sales transitioning effort more sales our

strategy. we While we recognize we position target we customers results early a some and give end execute this in us during sustainable transition, salesforce up our to while have go-to-market serve that efficient experienced a cost confidence better will turnover that

solutions meaningful playbook that quarter our information. the integration's contact veterinarians. providing have new success and improve and paramount. our for enhancements, communication a customers is quarter early and continually and This We we integration better with to better repeats need partner calendar first automated see real to in the their In improved uploads ability Our platform include completed time in the updates as By manual will an of which platform aspects veterinarian our fourth sync QX other patient vertical. provides several launched daily customer technology data integration. eliminates already

mobile their card owners to We've future for product Payments app. the business for feature that and is payments updates. information QX capture expanded collecting payments faster verticals Weave updates. our help final product of mobile we added key New on the of customers. adding the by functionality offering save via and making Weave customers experience In many users

also We terminals. wireless payment launched

these and service guidance productivity we to evolving our approach we have challenges, that where by as provide clear reflected impacted upon growth. continue customer been operations we our business onboarding adjust are are impacted sales today. improvements and and in today sustain it's location Collectively, XXXX our new and certain our to revenue reflect it in As and factors macroeconomic the company customers we

to veterinary. have and I and of of position changes Within to that grow share, significantly a am particularly strategies confident that increase markets our team vertical and context, in outlined started optometry go-to-market and core competitive I our market ago. series in the our and ability dental, in operational our However, implement I identified executive moments

we to While results. take time see will competent some these the are in it changes,

turn the that are half optimistic renewed will With revenue call sales Alan her over that, to XXXX. we we I'll see the Alan? momentum financials. in to back and discuss of such, As

Alan Taylor

extend welcome I as Roy. joining us to my is everyone today well. that Thanks,

our achieved discussed, in expanded we optometry we multiple dental, Roy XXXX our milestones during as presence key vertical markets, As veterinary. and

also to and several executive attracted our improve our new and team. leaders talented continue platform solution We to

tremendous balance growth our increasing in macro ongoing rates, $XXX.X by to The strong factors; our ended to year new strong location total XX% growth the with excited first, confidence locations, was much revenues our driven profitability second million. largest This reach by us a The adoption be forward. expand platform the existing customers moving revenue Care dollar customer challenge. we and company by For to focused to customer latter existing about, we gives as by customer revenue net based in two environment and features XXXX the from ability longer of flexibility locations. retention that rate remain in point Dental from signing in To off slightly our of end, our history, retention in despite multi of is reflected increased our path revenue sheet by up on XXX%, much year our financial particular, coming gross Alliance, the IPO. our term

labor caused efforts renewed uncertainty internally with variant by geopolitical the and and the inflationary macro factors seeing combined we the the slowed in in customers, these believe the During environment United our challenges the December rise States market, hit began of with Omicron tensions. and and macro pressures quarter. We the that both onboarding current impact our among the during quarter, sales

organizations. into these ourselves creating onboarding We are for seeing XXXX challenges trends and continue

our As below ended fourth our with of our slightly results we midpoint a future cautious are a taking result of financial this quarter outlook. slowing, ranges. the And prior guidance we to approach

market we within markets. core fit quarters we gross and penetration This five loyalty combined of into vertical those opportunities optometry are with significant and focus where heading straight growth excellent and improvement. our increase customer our on revenue veterinary retention of product to markets focus have XXXX our retention, have dental, continued mentioned Roy renewing As driven

SaaS earned ability in business Our $XX.X of revenues revenue receive of net is retention year-over-year. dollar our customer payment reflects revenue. retention our to third from primarily Consistent slightly year-over-year of has our us increased a processing revenue net along increase share This XX% giving net XXX% we remaining grow for gross confidence QX, million, in In locations, XXXX. services part year-over-year processing rates our was rate to revenue based revenue and which revenue XXXX partner. of up XX% in recurring XX% payment locations QX we revenue a also growth retention with rate from a model The generated revenue XX,XXX party and strong respectively. with

Before performance, going results discussing that I please the forward. note rest will our discussing financial non-GAAP of be

a in that QX supplemental financial results our the and and As location found financial non-GAAP tables. our customer between along be reminder, Also release reconciliation annual will be only can its results our-GAAP with with note earnings press information and provided results. GAAP

that organization net rates up to forward revenue hiring as as operating environment. quarter. future higher interim releases. support growth XX.X% declined to statements retention our as in In in to XX.X% recognition $XX.X our quarter, Total ramped financial in We well was customer during ago drive modestly decided levels the over earnings enable growth This retention will expenses hiring not our from million, we line the be gross the organization pull or levels providing We in support year achieved brand XX% tough satisfaction in and period, fourth year-over-year. favorable the a revenue margin our with were time. ongoing

platform as efficient Our efforts that the model cost R&D more we of We the million this our G&A expenses. development in driven recent the regions approximately $XX.X made and year-over-year increase remaining go-to-market enable our our increase marketing support to and pandemic levels with XXXX. and million headcount continue to support R&D staffing rapidly a was IPO expense hires XX% improve half us $X.X the our anticipated. our preparation R&D over systems headcount expense believe in ramping us our was we were in year following platform Operationally, to to changed company the scale actions increase, million as XX% efficiently. expense to efforts enables increased geographic actions prior structure our enhancement year-over-year $X reduced reignited by solution. our for XX% as operational public while as

negative million margin year Our term negative revenues $X points. near and adjusted two in ago, grew million percentage as we was compared our EBITDA QX as a EBITDA rapidly in some by to $X.X decline adjusted

of Given $XX.X ago. or $X.XX in these Non-GAAP million $X.X shares. results, $X.XX was $XX expense per $XX.X quarter, a as operating year ago. and a our fourth compared million loss million loss net This weighted a non-GAAP share revenue the to on was average year million, to compared loss of based per is a loss share

the fourth Turning to our The property flow offset partially the the out the from equivalents equivalents cash investments through cash cash $XXX.X providing in quarter, million and cash million. cash by market After in We of influx million our from the quarter flows. in is free at $XX.X reflecting and and year in the increase cash loss our and $XX.X flow ended prepaid fourth raised dry driven expenses. increases million $XXX XXXX a end. and November up of IPO, accrued opportunity. sheet making powder million balance with of and usage GAAP of higher in liabilities equipments, was $XX.X was cash operations usage The by cash net address

quarter. challenges factored the we to we the As business and uncertainties our I now saw planning fourth conducted for we noted above, the guidance macroeconomic end the XXXX, in of Turning our at

factors already of uncertain while sales rate CMO, impacted previously. Specifically, to reinvigorate impact go-to-market XXXX. and we the right proactive are first the QX have lingered to of we headwinds our Whoever address leadership macro these discussed QX with revenue we as our confident conditions of conditions. recognized that growth I through along our in half under Omicron economic a expected have into are successfully strategies up number marketplace to steps actions new we CRO as it taken and the our that we market initiated navigate picked These

these we the revenue second the that to rate expect see of acceleration anticipate also growth lag We will actions, slightly growth until half of don't and year.

balance our top to and the will managing work future. we we investing a costs As growth, maintain between line re-accelerate for

Additionally, we all in we these our sheet full QX great roadmap towards to us guidance position on execute are for factors, puts balance Considering believe providing XXXX year the and a our results. our following profitability.

revenue For of the range first a quarter $XX.X and negative we expect the to million in in total the million. million $XX.X negative to million $XX.X range operating loss of non-GAAP $XX.X

for average .X a quarter. have weighted XX expect million of first approximately We to count the share

the For and of million million. the XXXX in to in range operating loss $XX.X negative year million $XXX.X to $XXX.X full a of we range negative the and expect fiscal million, non-GAAP revenue $XX.X total

have happy XX We average turn weighted year. million for be we'll to the And back approximately take operator. a With we'll of your share to to full now questions. that, expect count it the

Operator

our Guggenheim with [Operator Thank first you. Instructions] And take Wong go we'll Ken Securities. question Please ahead. from

Unidentified Analyst

Nancy is taking for this for on Ken. question. the Thanks Hi,

Just more you. break out And you mention would seeing conservatism second if great. vertical Thank that there payments if about taking any it more you the are But in expectations, specifically. you're could talk I question, you them the into? conservative on then internal in don't guide, that is the on payments. know and be particular versus

Roy Banks

if could what's Well, of wish peace, all, going people just the see first very of there. Ukraine I on disturbing Yes. over to

much directly So that that affected about get let Weave have that's just that. employee by concerned and wanted an and is to that very here out

say me for So thank that. you letting

solution. excited very about payments are our We

and services, body going that as and quarter, payments. who to here the we with integrated industry. sales payment to us brings out merchant payment look adoption new gateway selling of product for the him the During payment really we comes responsible processing This was payments, is individual of work a payment recently hired leader acquiring, increase a really volume the benefit increase work or of tremendous processing,

last surpassed is milestone significant you product. mark, $X the know, really we the for company processing a As quarter, payment which for that volume billion and

we're excited very into that about that initiatives we've excited past to that so of the continue quarter launched product we're with performing. And number And how XXXX. growth going the is over see

Alan Taylo

the second the respect cautious Regarding been directly of more a with we verticals your impacted not anyone It's do outlook. than across to the kind see board Nancy, question, at others.

Unidentified Analyst

helpful. Thank Got it. That's you.

Operator

Blair. Thank Stotler you. next question with our We'll Matt from take William

Matt Stotler

is for Thanks of lot what I perspective. Hi, sort taking more terms stuff and to the to didn't you're December, companies the Roy. with pandemic kind disruption specifically for particularly even in substantially this is of Obviously willing the to past from into that is customers experience but that of looking months dive a businesses, the this, Maybe less from what XXXX? pretty still just grow over basis, to looking in on, able business, is of customers customer several timeframe at behavior, what's wanted the questions. to how macro Omicron Alan. happen this was January of Hi out start it inflation in negative different a want pursued buy, seeing from and and with feedback just compares early especially at your go small sequential

Roy Banks

Yes.

question. So great

that the on the we So do the extent it as is difficult on had Part coordinate our to of them in that, part able throughput get of to and QX sell installations that that are very you impact challenge and was have of we we have onboarding, customers. Omicron Well, new that boarded. the it's the, of customers, cannot schedule sick, being with. employees customers when to

Omicron. bit affected at you with surprise. of consumer as capital significant speaking, expenditure from resources opportunities So making us internally also we something and us, look we generally challenges that that by and some that took purchases little to then look obviously And the around the own our up pandemic ability we've a as some just hesitancy that was experienced the And at just staff affecting our the keep had.

Alan Taylo

it. on a would as they were in I successful of referred pandemic, the do in just as or flattening early the overall, to kind think add, I that country curve Matt, we

things. and in And have it of late as it people that So people to and sales severe of impact. did kind thankfully, be it aren't Omicron all, onboarding on had acute hit of have available all boarded. out December, had we didn't those officers we kind out, wasn't we

In ability impacted platform. fact it active on get customers our to our

Matt Stotler

follow Got taking. it, actions helpful. Okay, a on up the that you're go-to-market that's And then

the really dive you these be kind of would what of to you've And have for it is how to impact into guess specific as been well? I that the your that what of So understand changing some What's inefficiencies previously identified? then helpful lots the have would on versus as confidence and look new XXXX, and you expected maybe what previous guidance, guidance?

Roy Banks

Happy address that. to Yes.

know, hired, and a guidance. as I'll you the had. positions that we those hired to hired we've the and and new we never a know, speak as on CRO, So let CMO are Alan to recently impact But you company

we've better So to with develop us never executive our organization. help leadership really had type really mature of experience of type and understand that sales that and

their expertise, to to to quite their upon that based more needed and and really we increase much us scale experience help some help frankly to identify changes our go-to-market us to they were make growth. quickly So make able

changes will simplify customer can to identified And the sales that our And we I we on believe so so took align specifically. cycle. better sales our it that think significant the to trigger company we've made the be some pull motion opportunity ways positive that. for that we with really We've very

We've challenges sales were reduced the really We've advance to very of longer to previous customer that more that right in had we tail short SDR way and our retaining the the allows created found felt executive really like made position and make the could that and supports us and a the way. dynamic we a cycle probably that on what a see we we We dependence significant changes we adjustments really Here, model. more motion go-to-market of we've the have supporting had pivots as that one we it program we as was development the grow opportunities become sales model cycle. really scalable And SDR, we our had sales we call not called reduce available. nor we a rep. that around because able account many of sales

some the the to we now what in where made and position we've have full better there to hunter fits changes we our So model. farmer call AE transition one really a that cycle sales

so the will And some long on early to here in we them residual with while and We're some about around that the with this have really seeing it way very that our stream. business compensate. the sales are we developed positive on the impact compensation very very success results appointment healthy change that. program optimistic tail and made changes then commission We've a ties their paying a rep within company we've

of on see to that we very in those to see changes so excited and and And the report future. look some

Alan Taylo

are an Matt, here so that's really move CMO the to guard just and talent, mentioned the always labor change accentuated the that with -- in people some in in, as area. come we'll respect will old this issue. And silicon challenges guy the for of The fighting market sales We're there's along on. and current been along in items new there, CRO who the slopes that Roy

bringing capable. making people ramped up they're the we're sure to So in process those and of that speed

change think We this as this SDR models made mentioned, see our them than up that worth adjusted turnover change. how the reflect we've to And planned. And we upside And rapidly made Roy is us coming even so get just this the back. change more speed as period. make want to ramp we to

Roy Banks

sure to that we that our something and of look through And costs to elimination continue I'll one about thing that. also We're customer the acquisition add to position more reduce that's make the closely. to excited that monitor ability

Matt Stotler

again. it. helpful. Thanks It's Got

Operator

take Thank our Lane We'll Parker you. next with from question Stiefel.

Parker Lane

the taking question. the reconcile guys, very I'm macro again. Yes. with markets impact the strong retention the some on end grocery thanks the of Hi, hoping and commentary made to tensions, improvement net for the on

the issue, the provided a in primarily your given that are the here that a year, changes back what new sales in this net onboarding maybe front anticipate little place is start of all we new here commentary a will see improve half to seeing, step the takes sales we less or end and So year? putting help the on you're bit and markets

Alan Taylo

retention. thanks, Yes, sales the revenue quarters really staying our consecutive We our see those really It It's We're has staffing the of rates on back. problems, retention we of getting were Parker. and the any shouldn't anticipate some the latter. both [indiscernible] were same. strike onboarding, been decline, We the [indiscernible]. of the improvement that around see five gross addressing on

Roy Banks

the those that will of say will we've I that help And assist also part also that a through Yes. onboarding and some as for we've changes our pre-preparing customer operationally launch changes that we've made, made signed in customers group.

to So as we customers also I add think throughput ability our increase them. that will help if nothing more else,

Parker Lane

mentioned, It's at critical any those cosmetic looking it three of more, It's de-emphasis not areas. the core right? verticals wholesale therapy, those then now could forward, call down going physical mass when places Understood, increase places it's markets to you right of outside and the and improves? investment of potentially those brand a in these outside have we're the the success, chiropractic, having people we we're and difficult environment to necessarily hire of to a areas start going double

Roy Banks

right. exactly that's Yes. Yes,

continue We ignore we that obviously, a our excited and quite market, and well last And responded mean does we we that bullish to existing but we're be offerings. seeing frankly, on based year. to we're new on demand, market, announced not to And markets when continue that home announce be really the core we our that about have and the entering from several markets very emerging services product what existing the markets. that in based we about very market have fit,

one we're those for those each So that segment. that to continue We're footprint Weave sure of markets just want care. to in we deliver for that XX% expand in our we're that value penetrated and customer making does and taking under markets the

emerging look new us a and and market and do there's to going very very way there's it really years we're a vet and yes those markets of long a lot tail those needs nurture but you can a dental, cultivate been those and markets if in bit of in little to specific new able to taken that vet we fit And opto, markets that years the So that to while orthodontia meets we a has emerging on for the there, product really manner even we at continue that's to well take learn unique. and particular several markets. built cultivate we've

Parker Lane

Roy. feedback the Appreciate

Roy Banks

welcome. you. Thank You're

Operator

next Brent Thank Bracelin you. from Sandler. We'll take with question our Piper

Unidentified Analyst

is this for Brent. Hi, [indiscernible] on

question. First

sense might think a I maybe ended capacity that what helpful revenue is was marketing XXXX in you to in sales could context and be the and the year force. it you if for growth the maybe turnover marketing where how XXXX and maybe some considering growing plan sales possible, on and growth give if that the us relative

Alan Taylo

question. Good

and describe the in As digital our we invested CRO, our as side would and that our of with brought investment CMO, in kind really marketing, new XXXX particularly things. have still more established CMO on plans, and much CMO marketing their we of targeted, gets I

on spent be going digital side. And so there's the to

events. a ROI will we to still XX% the target those in We ones events, discussed, can participation and those But to pre- we will get events about are our as as see of Hopefully, know good out successfully, back. be now, returning pandemic. we investment that opposed some come we

I a to the marketing better think given we'll continue sales investment that yield got we than approach those was that and targeted efforts. XXXX on increase it do little that a we'll that is both But side. the focused in from laser more which see So

Unidentified Analyst

recent to when was QX clarify during a you're clarify, I the point? just of follow considering wanted are to that. question, And the up what's how time considering the AEs Was XXXX? CRO there's this that and during ramp or in that appointment? just at timeframe Great, XXXX, you then for

Roy Banks

hired back Chief January, in believe was last Matt in Yes. Hyde, January. then I We just And year. our in hired of we QX it Revenue yes, our Officer CMO

value our we're just and speaking really provide customers. laser and and we more language about really platform, train the the putting making how So on when We're that takes but we to focused sure have it understand the better them. more sure our really into them our experience of they selling timing appreciate to And to with none It's we provide that six customers the that in customers in our comes effective. garner was be we're AE to wanted ramp be substantial will very a make we proper doing the to to them they things really need to And nine then on one I identity of platform various empathize very technology the understand, ways that's and platform, the we also the training can an becoming that target of focused and of that they mention and way ways that and the on the important that of in there. that with market customers. up ourselves that and of in our industries we not only competitors one the months in thing it that

Unidentified Analyst

Appreciate color. Thank the you.

Roy Banks

you. Thank

Operator

you. Thank

America. Funk Bank will of hear from next We with Michael

Michael Funk

couple for A Yes. if tonight. the Thank I questions of could. you

I XXXX around think revolves I additions understand guide for gross expected. the primarily than previously lower the at

in force turnover. Omicron, geopolitical. But out your mentioned threw earlier sales a You comments, things few inflation, you the

impacting or the ramp specifically, on the Is just migrating in the price a your On lower down here customers that guide lower functionality? based slower as purely for expectations XXXX? inflation well? plans conditions in in adoption, incremental comment Or it either is XXXX pricing part that of is growth to

Alan Taylo

It's primarily the latter there.

customer, churn about base. on and that that. But we that annual price normal we'll cycled anything like I customer price increases through resulting the and think aren't question the in work those kind We're been we think do of everyone's There by into responding seen those is no a or churn based that hit inflation. leaving I based that. of on customers our haven't lot the or

a is So I terms the the of growth. think for it's That challenge everybody. the latter in inflation just obviously

we're year. close of respond a we'll eye balance keeping So need that we to through the as on the and

Michael Funk

the and kind me the math additions right that are to around and flattish pricing envelope onboarding assume in that the the midpoint in I of the each there. of XXXX Okay, of at guidance Is gets quarter roughly revenue that? same back with hardware your net range. flattish

Alan Taylo

Yes, it is.

Michael Funk

to did the didn't X so then marketing ramps and that you as us Okay, X I and but for think one when new more and get to that please. month period how help metrics productivity? quantify sales earlier on hear could, get full turnover potentially the employees I if about productivity you they to bring they

Alan Taylo

even along and with it in challenge. the won't country. think, I it line we slopes quantify quantifying It's been didn't right be silicon a the across and today. We're definitely others We area

Roy Banks

given And some we'll that enough that and really might made fact there kind But watch changes we've in to have obviously don't like. monitor. look the suggest we of area what that continue that's something even history to that

Michael Funk

Thank Understood. much. very you

Roy Banks

Thank you.

Alan Taylo

you. Thank

Operator

Thank next from hear with Citi. We'll Radke you. Tyler

Unidentified Analyst

[indiscernible] Radke. much this my Hi, so question. for is you on Thank taking for Tyler

sales in forward slower seeing you you of labor have if efforts and from are vendors? pull are And like, related and Thanks. I know UcaaS in and all lot I So we seen communication to most the demand up. you impact challenging from follow other a that the a what the to any pointed had sphere CPaaS market. to onboarding then extent like and at But so,

Roy Banks

our think we're that don't be that that any necessarily that having seeing I impact metric being indicate to related we're would mean, an impact know anything on I with a a I that, cite business. an don't that or statistic I particular can honest seeing think to of you. we

Unidentified Analyst

was near And had I service to initial through that like the you conversation term? the But then organization. I that customer in at it. communications module one have wanted that understand dental network Got of to the for add the module. the all potential customers? you the also tied the that about appetite payments core that discussed ask large from to Where's

Alan Taylo

But possibility. the be make office it that future. see will compelling contractual and it giving may enough for nothing point I a us team understanding customers mid sure those with exposure some on and our option of that that in is people we interest sure of that payments this will in the make There offering land always at multi and we're we think opportunities is to the that in that the that factor are payments customers. It's We want where billing that market as other well. those definitely

Roy Banks

And as on it relates can to the that and basis our at our of an customer we base. payment upsell both offer point existing into sale offering,

right just the what's payments. So depends oftentimes, introduce it motion to sales on

back option base selling we have customer going into And or upselling our payments. always the so and of

Unidentified Analyst

on thank Great, you And very much. customer congratulations [indiscernible]. that

Alan Taylo

Thank Very exciting. you.

Operator

question you. Raymond Thank We'll take James. with Brian from next our Peterson

Unidentified Analyst

Hi, for Brian. thanks for taking John the question. is on This

a said the sources. while generation lead quantify contribution you you I conferences? on question from live there's historic year. amount this of conferences And Can First and events that pipeline know lower

in the We contributions stand seen have pipeline some present? return. person conferences is How

Alan Taylo

XX% about ones. it historical somewhere the those was almost conferences and that recently, we a between went in until been attendance those pre-pandemic XX% the we're of third XX%, pre-pandemic. was now where Obviously, then last and recent on John, impact So rate through way such most conferences levels, about leads and the our at fall deals largely got and versus pandemic

the it some flow worth see to The flow. of still going larger makes we're lead it's definitely lead so those attending conferences. And

return conferences factor a to a to really of You levels, number those things. pre-pandemic get be whether of is going

attended credits, things team lot professionals that. do pre-pandemic our who's of credits education avenue through wanted to to is by be at and as still full our see sales the conferences be were the ones customer back so these a for would attended One use know reps do we associated these be with make And one there good we a who we are to that aware conferences that pandemic of now coming are of, to strength instructions of us and do, costs will level an [indiscernible] the and remote and largely that whether sales have to shows. these with yet often those they viable same but from online and conferences our opportunity determined, saying an continuing we it earn Zoom CD will to will completely efforts acquisition ever on get

Unidentified Analyst

then outlook factoring of very was there. color. given XXXX, with you And here. gross It as takes Perfect in and move How XXXX some hardware about your margin Thank and helpful the the of for much. through cadence we implementation? puts we should thanks think progression

Roy Banks

welcome. You're

Alan Taylo

customers providing will we ultimately proposition Yes. expensive and and hardware implementations positive are in summonses what of our expansion result as well. in the The key onboarding margin elements forward, them as go

half expansion from in year. margin of the range of XX the going, use kind back we'll the XX So the to range

Unidentified Analyst

very much. Thank you

Roy Banks

You are welcome.

Operator

question next Thank our from take Benchmark. you. with Schappel We'll Mark

Mark Schappel

seeing in taking given to? that you, Thank adoption trends business, sales the leadership you fair for my question change the hoped for the strategy your in you're business question. it in is to My you payments assume initially and that your not payment

Alan Taylo

still build product payments. year, for We much stages still trying when very were in market to the last fit we the early were

payment so increase have that a really leader put on to us adoption that we really offering, gives really could was believe product that the bring and a on And and features rightly for sales now payment the robust all it functionality it time we was that steroids quite it.

a this, we payments So having over processed without billion that product. real volume, a payments about dollars think in leader

great the payments really a product, just with with now So and new payments leader to be opportunity for we product a it have we have breakout us felt a us. was opportunity a for that robust it's

going excited we're to So what we're about see.

Unidentified Analyst

bit And you industry? you. wondering outside remarks provide little Are In could Thank you a helpful. reps going go if Maybe seeing That's color in more you noted further believe question. just additional am was anticipated. turnover I that. your sales sales one than higher Are then force prepared a this? the the comment little competitors? to on on bit just they I

Alan Taylo

Yes.

fervent Silicon talent, it's real here as part the talent. for Utah, seeing competition for it we're a in Slopes is environment we're known, of So affectionately of

we in that's what but is some of because And here. don't know country, other it's like what of the seen have so it And churn there. that, I areas

and changes different as those folks We frankly or excited a some result that more the sales put as place there's about as system. are enthusiastic also, we are new model that familiar not quite are with of a into

And are those of so selecting as well. some self

that churn a in. is And rich so driving of this talent what has that kind are been we've of that seen. we that's Unfortunately, environment really some

selling a fit. continue recruit is great While to because is have the competition we Weave product talent for we great market and fierce, experience

incentives And and more We've real those think starting organization. top part of selling effective up as created navigating keeping and we're lead. scale value we So to in we some particular some I extract per of results more to our ramp that are our for for continue people really sales are more retention challenges. that drive tier

Mark Schappel

Great, thank you.

Roy Banks

You are welcome.

Operator

any like no the back queue. Instructions] turn you. for to to closing I'd Thank have over the Roy or remarks. We additional additional in covers questions [Operator

Roy Banks

our to second have especially this a on plan like as to for like optimistic thank it. that everyone as of appreciate re-accelerating hope clear today. of for for would your half Really very for day. the call business have and look call you of of challenges in that time many the the company and thank this prospects and very and much growth really We I as for Well, gives much Weave. enthusiasm company. and your the of to make we Awesome. appreciate appreciate all we the look we we implemented year the being as we within Thank the would confidence we've wonderful some a We and you changes the rest of your navigate on you in forward path company changes impact the that about the and a today the We support needed ongoing to remain and overcome we've exciting we highlighted call. interest

Operator

all And you. thank for conference. Thank do your We does you conclude today's participation. that

disconnect. now may You

Weave Communications (WEAV) 3 Mar 222021 Q4 Earnings call transcript