WEAV - Earnings call transcript Q3 2024 | Weave Communications, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to Weave Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, Mark McReynolds, Head of Investor Relations. Sir, the floor is yours.

Mark McReynolds

Thank you, Kat. Good afternoon, and welcome to Weave's Third Quarter 2024 Earnings Call. call White, today's Taylor, and on CFO. me are: CEO; Brett Alan With

is of we date, These conference statements the made views this During course certain entail call, based management's Unless Form noted, that, can on anticipated assumptions will to of and expectations, metrics A call and exhibit are results. of regarding performance will financial on our our our Earnings statements about the X-K business. today's non-GAAP with to forward-looking as on current and the well the talk forward-looking reconciliation make call, discuss website will revise numbers SEC certain understanding Presentation with be the call, any obligation disclaimed are today I various and found risks We've of an we today's website that subject on now this metrics on basis. uncertainties update non-GAAP to over filings. available any or believe at to a furnished otherwise SEC we which as the Brett. statements. Further, all in will described before as GAAP in investors.getweave.com. And our we in forward-looking as Relations our today's to aid Investor the turn comparable be release, earnings

Brett White

and and performance operating highlights QX. line flow. We from in joining Thank the quarter start financial few solid and call improvements thanks top margins for Mark, to everyone cash gross to delivered you, a today. I'd free with like significant of and another

both patients of health representing and the over in improvement practices. range in platform payment improvement. Weave's QX and from midpoint an deliver non-GAAP and software margin first performance all-in-one for million We and growth another income achieved XXth positive for XX.X%, margin marking serve the specifically was over July. for that guidance to history. Revenue of care and mission year-over-year quarter enhance time is medium-sized major reached XXX the practices $X.X than points our designed also year, them. company's quarter greater provided We care XX% last of experiences basis above for an last experience we health Gross operating QX $XX.X million, reporting the consecutive gross customer milestone, the small-

Our to solution enables health office on engagement. care and optimize practice and care growth we streamline help communication through payment patient focus patient billing improved providers drive while operations, processing and

which $X Our MedSpa, and includes which market family is the verticals, medical, fastest-growing dental, Physical Surgery we category optometry, Specialty was addressable specialty alone. focus current Plastic practice, is billion veterinary Therapy exceeding in on an and medical in estimate U.S. QX. again our

profitability. Health care or natural intelligence, phone time and in to without practitioners a are by integrated IT, additional requests origins services. rely This and are further With helping into providers, to payment practice's the payment grow is and integration on domain. using marketing often accounts approach Pay-over-time; effectively retaining fintech and solutions increase Now, billing rates accelerate attracting, payment Weave, patients. practitioners plans like their and collections payment businesses The Buy processing; and Our engaging help acceptance of progression of Weave streamlines write-offs communication like supports practice business and receivable number trusted teams lines, intuitive finance seamlessly and software succeed. reduces workflows growth dedicated

multiyear of we integrates which Weave improved customers. announced and systems, company's in the platform New most This history. accuracy. our culmination product great strategic launch holds platform, availability more management that data and Our a a with automation the importance seamlessly our personalization, is greater is of enabling for effort practice significant the week, Weave Last

solutions the for a strengthens us our that the New robust, innovation. at to has locations, position care Assistant cutting-edge platform. market the and of customer and enables Weave throughout health Now integrated administrative accelerate practices new technology been available across an scalable AI-powered platform is AI Weave with all Weave infrastructure forefront

decade includes available voice than and is like more we of of patient have phone training interactions data set billions that messages. to mails advantage models. records SMS train unique calls, Our a This large unique language

provide transcriptions. immediate customer [ features professional that care automate reviews, tools craft tasks in reports tagging $XXX tasks of voice nearly ] AI XX% responses message automate AI-powered write Weave the Assistant Our value. like and helps e-mails branded McKinsey personalized health potentially and saving sector, mail administrative to annually. could billion

the the to text simultaneously. locations a practice platform between locations to Weave call expand without ease. The Users are users calendar workflows and Our extra settings for into of or by same and keep seamlessly extract enhanced our alongside the installed interface custom once allows at full watch and essential places accept of E-mails can e-mails easy drag-and-drop phone leverages toggle prebuilt professional It other platform the consolidating patients, to on the communications center, be insights actionable call platform staff, New daily locations Weave and on to part avoid access forms, must the can overview and New see chat tool A or creation customizable location app, and platform single templates stock we of the and Security user screen helpful new for their is manage that help on exciting system all a browser. steps effort images. and Team data. To any at from a customers. I AI the day. view comprehensive model sent professionalism elements interface, ensure The fit running ease via an to and to dashboard Weave of New all configure time. view Take Weave also our the improves enhanced messages shrink to on-brand business our the features up customers enabling platform domain you user call with intelligence practice's platform, from which chat texting multiple of the e-mail front fewer modern The a Last with spam streamlining X-minute invite a to for New or available our fully composer, a stays most a getweave.com/new. forward with businesses features can desktop now video one leap look tasks trusted new providing use, Pop-out firsthand customers. an any record. a payments date product versatility website system. our operations a to free with tasks or updates unified clicks. and ensuring represents automatically, more a marketing smoothly, app filters. software mobile and week, prioritizes launched

Weave operations These advanced the while platform daily and pets primary the personalized veterinary update interface improve access target the with By audience. The enhancements platform, -- in front and AI-powered pet collaboration the Assistant helps details. allow new quickly service veterinary Our practices. also across making right a content craft professionals user streamline built for essential for the enables to UI IR introduces Weave specialized filters Weave desk experience staff and profile clinic clients. more staff New

offer reduce and improve such This trusted Weave in-person to allow and for each up payment embedding also Weave to rates, due and payment as collect functionality on into accept flexible online new This our and optimize more turning and plans. methods or and features, with throughout communication feature direct practices payment operations, collection from payment Buy cards using customers scheduling by to balances accelerate and an opens billing Practices pay, payments campaign. to In text-to-pay, to methods. the QX, our enable less can the mobile the via or also scan addition send invoice file payment features and write-offs. In their patients text-to-pay notifications, payment collection their on Payments, billing increase simplify requests through New bill platform Practices to credit enhancements Now, past appointment effort our can Pay-over-time By options announced tap experience via and process. With to billing integration into to acceptance practice empowers options online journey seamless of can debit entire post-visit procedure pay text-to-pay the customers opportunities Weave collections easily request workflows preferred user like payment reminders. customers we've provide valuable AI-powered pay pay. and automated number. keep payments patient phone to ACH we allows outstanding accounts

Care, Dental leader last enhance America's payments relationships further X/X Weave's cash digital our replacement an and patient or its rates. Weave drive have dental with patient team. automate selected we unified dental the record market also Care particularly have advanced Weave locations to in region-specific collection boost and among Weave multi-location play announced product. for very seasoned New streamline new success Approximately operational capabilities the forms, are acceptance and Organizations, location, in for of platform designed Earlier a measurable the cycle we flow solution powers a quarter, of naturally revenue New digital patient per crucial implementing seamlessly Enterprise their achieved to multi-location organization today, excited through of by strategic databases, patient treatment announced strong our as Service across centralized Affordable and optimize online communication Weave with practices. offers share His engagements we options Weave, group, recently platform Affordable services tools, story experience experience, our patient options practices Weave multi-location ability that and head in and our overall forms robust into and and like that early management industry chose As a features. We're locations flexible DSOs. fit payment increased driven report added and XX scheduling appointments years that pilot and practices. vision and to engagement integrate and the our Affordable for role Enterprise, payment space, management efficiency experience. To presence, tooth reporting payment Enterprise Care for support in has provide and These improvements for revenue Weave of supported seeing inbox will workflows. Since for largest multi-location platform part growth capture active by sales specifically acquisition

On we to progress. continue make the front, partnership

the confirmations EzyVet This addressable their Our play existing athenahealth, critical automate with to of other accelerate June, more and role in commercial and Dentrix information, authorized our cycle driving also management every practices across details, markets. agreement deeper writing conversion a offering leadership practices forming growth. Even our reading of market by close and helping deepened collaboration most we through systems. co-selling management Patterson and our Fuse approach market appointment further streamline and in integrations target Dental, In then, integrations strategic patient advanced comprehensive initiatives. strategic enabling to practice and have rates compelling, entries supported integrations partnerships. integrations between our with announced include a enhance one expanded co-marketing shared collections, stage and practice Ascend, communications and Eaglesoft value efficiency the we systems customers, leading new have we with at sales Weave personalize and with and for Since enhanced improved empowers Patterson growth NextGen, year, growth. in ledger to eClinicalWorks, the payments and We've bookings and has resulting

XXXX continues and in to was the GX's in ranked named team. dedication small management products earn first again once delivering the top grid for and Fall exceptional and the our among categories Weave XX businesses. leader patient of customer Report, software our recognition listed performance platform outstanding Finally, to XX relationship and was for the experiences for In we've

named Power start, Inc. our run Partner, grow. helping in impact businesses an recognizing Weave Additionally, was and

their our constantly our to their brought that top U.S. and customers, Great year sixth want to to to now thank first is market exceptional to I delivering We and in meet some putting for truly are certified team's our and commitment reflects This incredibly We India. In achievement workplace, made customers innovative and needs. for I'm fostering the solutions Work success new products. momentum first proud year. call in ongoing Place sincerely the solid that, support half deeper share Alan time growth, to over first the team our and the as consecutive Weave financial Alan? shareholders committed members the of continue outlook. an dive closing, and partners, progress strong the QX of into results we line I'll hand for Weave. With of Weave from the our in profitability in to drove

Alan Taylor

quarter. In and Brett, excited financial on results. continued to to we're I'm afternoon, pleased share Thanks, additional our with insights this we some our well, and good performance everyone. QX, execute

over the of in $X.X achieving We significant excited the represents operating As a delivered income of largely and quarter million mentioned, revenue rate hitting in acquisitions notable million at million MedSpas new Revenue Brett continued the a range our the This growth midpoint XX%. and for growth history Medical fueled overall this income among the general result maintaining twice revenue of operating customer is by growing operating company's momentum are we last growth more first which rate of practitioners. positive about success Specialty our $XX.X time quarter. guidance with revenue $X.X non-GAAP of over milestone beat from quarter third with this provided non-GAAP was income. vertical, we while than

up Our improved from rate net QX, retention XX% last XX% revenue quarter. to in

like we we've are have continuously New Our continued We've products periodically customers, continued to number value the price across and cohorts payments well. deliver functionality benefited adjustments, to made customer upsell platform. the as of and which and perform increase additional products Weave also from

rate X the look at between Weave's over non-GAAP reminder, a past gross I'll rate has SMB across solid retention to at the the retention results to a Transitioning strong our achieved improvements gross unless among -- us years. quarter stated performers results, and XX% QX, XX%, retention. we referring consistently ranged board. otherwise. In Our revenue placing for revenue deeper operating remained each be as top XX%

revenue XX.X%, reached increase margin revenue rose year-over-year, by basis X% a gross year-over-year. grew Our of greater while XXX than only XX%. over by point Cost

decrease and the quarter, a or to reflecting of for expenses expenses $XX.X QX ago. in down a million slight optimization. operating XX% from representing from of XX% total and the revenue in at of last of Research development quarter year. Our totaled from XX% XX% as in same $X expenses continued came XXXX, million, revenue XX% focus percent a on period XX% year improved Sales this our revenue, revenue, of down marketing

in of and productivity prior or administrative revenue period. million general as year XX% were we the improvements our efficiency scale focus to $X.X or expenses revenue highlight million our XX% These Additionally, and $X.X operations. compared of on

operating significant As higher million income loss improvement $X.X margin year. an X.X% improvement July. in last of was income and than top of corresponding million, QX the the is previously that gave for operating million from to $X.X margin compared $X.X a The X.X% of guidance mentioned, last of end we operating year the

focus net outstanding. XX Our or loss is million or of and compared cash million in of last positive $X.X year-to-date. million million XX% $X.X quarter per the was and Free in million based growth flow. third to improvement cash due Cash of on improvement $X.XX negative generated We quarter, was revenue efficiencies. Adjusted quarter per compared the weighted margin This average the share from flow year ago. Shifting ended year-over-year. short-term million shares to representing balance million year. net to positive million million operations and and reported was Adjusted income $X.X $X.X share $X.XX cash the a third margin $X.X $XX.X a in million the operating the $X.X the This with X% a third $X.X sheet and a was year-over-year quarter growth in represents significant EBITDA improvement X% million, a third year-to-date. to was EBITDA flow $X.X $X investments.

to Turning our outlook.

$XXX.X raising are in and to the full total our guidance range We million year $XXX.X the for of revenue be to million. we XXXX, expect

XXXX. non-GAAP We full operating the positive for also year produce expect income to

we $XX.X range in to expect range income million XXXX, million. of the quarter fourth the million the operating $XX.X of in million of $X.X to For total non-GAAP $X.X revenue and

our for summary, well across have about execute we're XX.X business We're are long-term through QX, We serve. average strengthening about to our of all continued optimistic we've and the turn verticals weighted success with excited the for million we expect sustained the that, future approximately I'll to year. In and operator we're in committed count growth. And over opportunities full the having value back Q&A. that the to shares a share to call

Operator

Sandler. question first our Bracelin -- Brent from comes Piper And from Brett

Brent Bracelin

quarter. there? I then here. I you profitability of the could pipeline, the a when start see little I bit you could the funnel? And X to expand hoping here if bigger two, was It hospitals new what's looks to Patterson enterprise momentum questions, relationship about platform talk into could top Weave one of could a the impact that this more with the hospitals? your Medical, maybe could new Great you on New And are the crossover now Specialty go driving One, areas had could like have how specifically, reach frame after platform.

Brett White

Brent. All right. Thanks,

this break me down. Let

Okay.

do When to that with we now. of Let's expect start affecting It's start Patterson. funnel? happening kind

trained the their partnership. their to then announced reps, to gone saw we their went -- about sales XXX originally announced we've and the We visit integration. conference, them we train teams. we built of and We So -- sales

of We're done up results we're getting now. through we've bookings. think X show higher conversion getting We're it seeing or rates those, the I X all in and actually funnel. growing the

on and sales Weave have definitely the continue. So we momentum that Patterson to expect the increased, platform

Brent Bracelin

a understand given that Perfect. Affordable Enterprise bit hospitals. you Specialty Care to know website. their for you love Proofpoint talk what addressed about particularly Medical the love the I about opens know locations? opportunity. on and XXX to do And little now haven't in historically, maybe with more I I'd hospitals a targeting little you're that Enterprise. I'd Weave see bit up you, larger then could

Brett White

Sure.

really is quite fragmented. Medical Specialty So

integrations. So success the really is around seeing there we're building the

pent-up build platform. As their the demand, move really point think, integrations, onto of solutions of an I lot off integrated a to we there's a

lot really of So success seeing a why that's we're there.

integrations, As written lot the get payments success we seeing a out and sales the we're trained, of teams integrations we the roll as there.

Medical than larger in Specialty continue Vet. aggregate expect market that to Opto and I Actually, Dental, is grow. So to a

and we're seeing as very far as we're medium-sized small- focused hospitals, on there. And practices. we're So really about excited what

just -- multi-location as medium-sized of we view aggregation an multi-location locations. opportunity the the small- and So

So New you with mentioned, really -- win large deep and proves The with that bring enterprise Care as really very Once a together and They're opportunity their really and enterprise, is Weave Affordable in the solution press the only Affordable it's a you us platform have we're all their for Care a XXX in is and win. a the great selected a product solution, solution, Affordable out. in fits payments, also you noticed combination. And fact, Engagement the locations. case Care in we probably or needs modern for but it's those. payments, use with their seeing case Affordable winning Care of well multi-location, multi-location which this the my terrific release, Engagement comments integrations just not as Communication

we're So really, opportunity just the not multi-location enough location than We've hospitals. more in targeting point, large the single at this got and businesses.

Operator

from question from James. And Sklar Raymond our next comes Alex

Alexander Sklar

you Alan or to is the being look on metric get you you hanging opportunities biggest Brett, fruit help if up at picked just in big other figure starting particular? of bucket. payments see in where you It's talked of higher? I frame first outlook question couple off quarters. some for NRR. the of maybe the Can nicely lowest with know last the about that that a even some What the just

Alan Taylor

Thanks, Alex. Yes.

payments So one sales across with ones as our NRR the big that increased through rate like Patterson as we're the partnerships team. well seeing clearly of is take just

faster payments. to whole. a than our as business whole, the revenue It's growth growing as continue We a expand

And a will that component. key be so

are about to we've bulk the coming a and very us and some intelligence own into that's of forms. and NRR. with revenue introducing be that kind helping also part upsell our verification are talked quarterly messaging substantial of grow These their products to We great call insurance

are the rates those emphasize. -- we we well. downgrade improve to to And that so focus the that are areas NRR. continue going those are those really We're to things for to continue the improve increasing going as And so the

Brett White

Alex, of within that Weave opportunity as maybe a a we they -- when we access move just base to I our lot have upsell. platform. and an just to in build stickier; that happens, would are and installed then these it's more stand-alone more to and on customers way out integrations, who add nonintegrated greater have from an obviously, functionality integrated running it's And

Alexander Sklar

color. a Maybe for Brett, you, on Medical just Specialty great Great. follow-up That's broadly.

So subverticals X today. core

go-to-market do as to about I talked It's that subverticals growing need to organization you opportunity? said. think to over you need or something your the to twice see XX it sales of of X couple kind How see? the And then, take fast from going north broadly the to hiring next is of X. as coverage you what overall kind of What for do you formal X to years? of XX already that

Brett White

Yes.

are keep again, coming really So Integrations back important. this. we really, to

we over kind quite us enter that fit. into so tell, of sure want market years, want predominant couple have with a is in that to new We to for last -- that thoughtful rolling Management we've way when integrate really can vertical, subvertical. And the we in Software as verticals Practice make be to order of the about out been able product the good And it. we're you to

verticals, going sure the adding to we're more very, market integrations more for to delivering and and currently then fit, we're is but it adding be make are, actually value. Outside adding not adding good product very we fragmented. of going sake, got verticals So but new we where just them

want a is those very to thoughtful market our ripe and bring the do just us verticals. for way. And solution in we there. It's into it to So successful

win-win kind a X. So on of with Day customers relationship we have our

Alan Taylor

solution add, we communicate I Weave whom a Alex, from are are an patients. pretty have would to folks do we like seeing customers with starved for for inbound their not just These interest integration.

the And biggest so serve the that great in map, and the got our road interest us opportunity to on is for a it future. represents make them integrations we will sure know even that better where

Alexander Sklar

to that all of on looking follow-up any they're at more quick integrate increase "Hey, process?" your up inbound, saying, inflected fragmented from those the Great. speed the are -- both we being the build systems seeing all to that those proactive interest you the And Is can inbound seat? maybe in they're and integration management you about from just build a practice

Alan Taylor

very much so. Yes,

Brett White

on-site little a now trade anecdote there. XYZ", I'll put go in event, banner we event, of "We we says it with may and be, yes, an When an up that lot whatever booth add integrate we into a and show, get another And attention. our

in demand. And years super lot a competitor, win-win vendors Management there's X.X where really, definitely Software the PMS viewed a and write plan. -- is it's it the done of of it's to they XXX, shift and ago, we and in building really and coming great almost we're now on go-to-market the a the So queue vendors a not working interested integrate, interested relationship us with side Practice that were with as us. us have thing Software to Practice a kind the Management to asking to our then other mindset us And just and develop show took integrations

into depth on the of verticals the optimistic moving quite new and deepening we have. the we're integrations and So that quantity

Operator

Lane And our next question comes from from Parker Stifel.

J. Lane

lot more Alan, price place. color guess, took the extract to adjustments functionality term, longer I you the these love think to here. that more to, should I'd some bring those that get How you're a table? bringing where some more premium-type about features we your ability you some on alluded price And for do. to periodically of of you to table

Alan Taylor

when the cohort they every those also with product always We're Yes. Thanks, on based of are Price do renew, bundles. usually basis We on something quarter. experimenting based we but a adjustments customers Parker. are that manage changes.

yes, extracting, manage that period. to Payments warrants price customers as exiting the these -- delivering and that. like integrations, inflationary able of share. will particularly delivering key. those sure are into That integrate wallet just the the And value at these we high that represent better helps record of about continue terms New But those that includes increases, it's efforts our is of long that one we office office so to that. And Getting to with we're fairly reconciliation to a the we're us the know we customers that that just there. prices, that platform in payments with found and best workflows tolerant do where they so value, we improve of out the have kind making staff, all Weave we payments are are win. to of of we just the So solutions that's eliminate lives the the

pay so what we for as we intend to And do. continue long willing to so they're to and that deliver, that's

Brett White

thing every available superior to the the of more new one additional it's Parker, platform possible Weave a at valuable product New right a add though in to legacy way. it's kind no even existing product. our And customers of significantly is is all and I app now, would all charge, vastly customers,

an the it's So no we've think got future. there in But opportunity charge. now, I right at just upgrade additional

J. Lane

a Brett, you're just that? a of time be management from changeover going follow-up any change moment on handling Just that. standpoint, by everyone? big platform? how sort coming it will customers line which there basis? to newer Is Is there for that a adopt Is a case-by-case

Brett White

Yes.

as move in our customers to having go and opposed than of the they as can so their to mean, is pushed updates they're one to I later lot get of they get app. sooner out just desire great to the it's a and benefits update over software developed rather So benefits. the

best available of have kind to that's have they So the solution constantly them. to

move is quickly, but they're And don't to over what any kind it's that be plans just folks using. benefit you'll to always force the over. for us think sooner I that And try, it." marketing everyone. give just initiatives their through a we So who that, understand word time our We hope there at of people this we to and comfortable "Hey, and pop-ups will our better like have are with they get

Operator

from of comes Bank Mike And America. from our next Funk question

Unknown Analyst

expansion. Mike. potential continued gross some think on where and end about margin help And the to drivers just a Maybe gross as for could the Matt margins out? can maybe couple is of then this whole. This frame margin future in Great quarter us improvement years see help if up profitability a us you terminal for of

Alan Taylor

Thanks, Matt. Yes, a great the has been story. gross margin

mentioned, the we continue there product continued The on revenue expansion. payments to be it's XX of the As quarters around drivers side.

product into gross payment our existing margin As customers, well expansion. base new for that's to as extend positive as that we continue factor a customer

our the We X of after comes phone also off go-to-market -- amortization component years.

And as amortization customers those us so up along. of come and just kind a phones off stay structural it sets us with as improvement we go with

tools improve to can providers XX% managing ] helps a organization bandwidth ourselves on got us respect So as every we support quarter gross those as category. we of on service that know we is they're get focused everything well. Long-term, They're grow are focused better costs. other customers us and place into some a with other margin some to the us, the just our all world-class and to company. on provide And continue that's putting scale [ last that processes, delivery that's centers, all the great there in allowing to see servicing in success just through while costs. of then that is delivering do costs the improvement. And our payment organization doing with to having an of we and significant to managing a ones including new margin, without and gross that We've a our an staff. when Engineering just to that where go efficiencies XX% eye keep data on job -- vigilant And job

Operator

more no back it And remarks. at any now turn management would like questions. closing are time, there this I for to to

Brett White

our business. exciting of it one of out. relationship kind was I'd back question on turning was is adoption higher I'd It's to for very observation with Patterson a like a Patterson just question platform at call, of like circle the very, to share, the and high. than And at of kind got payments we very the our of sale us on time the Weave Yes. that core Weave of how is which is beginning the around

at So that would be software. the adoption of payments of sale

that's very well. so And sign a as encouraging

So coming on to over with excited that all thank your Thank team. really said, outcomes for like both thank continue to our the here made for our We shareholders joining the progress you customers improved to I'd everyone, like we've and deliver of build shareholders for entire the our the are call. Weave support. to quarters. that I'd to

you. thank So

Operator

for your you thank We participation. conference. today's conclude does This you. Thank

your You and disconnect time, day. a this at may wonderful lines have

Weave Communications (WEAV) 30 Oct 242024 Q3 Earnings call transcript