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- **Revenue Acceleration**: Q3 2025 revenue of $61.3M (+17.1% YoY) driven by specialty medical and payments, with 15th straight quarter of guidance beat.
- **AI-Driven Efficiency**: AI receptionist booked $320K in new appointments in one quarter, while call intelligence flagged $80K in missed revenue.
- **Profitability Leap**: Operating income of $1.7M (2.7% margin) vs. prior guidance, with full-year non-GAAP operating income raised to $3.3-4.3M.
- **Cash Flow Strength**: $5M free cash flow in Q3, year-to-date total $8.5M (+$4.3M YoY), underpinning growth investments.
- **Growth Catalysts**: Payments revenue growing >2x total, AI integration with TrueLark, and <1% penetration in $10B+ specialty medical market.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue reached $61.3 million, up 17.1% YoY, driven by specialty medical and payments. This marks the 15th consecutive quarter of exceeding revenue guidance.
- **Gross Margin Expansion**: Gross margin hit a record 73%, up 50 basis points YoY, due to cloud cost optimization and hardware amortization.
- **AI Advancements**: Introduced AI receptionist with voice capabilities, booking $320K+ in new appointments in one quarter. Call intelligence flagged $80K in missed revenue opportunities.
- **Market Expansion**: Specialty medical revenue grew more than any prior quarter, with mid-market pipeline diversifying into new healthcare segments.
- **Customer Retention**: Gross revenue retention remained steady at 90%, with net retention at 94%, reflecting strong customer loyalty.

**【CFO Financial Commentary】**
- **Profitability**: Operating income of $1.7 million (2.7% margin) exceeded guidance by $700K. Full-year guidance raised to $238-239M revenue and $3.3-4.3M non-GAAP operating income.
- **Cash Flow**: Generated $5M free cash flow in Q3, with year-to-date total of $8.5M, up $4.3M YoY.
- **Expense Management**: G&A expenses declined to 16% of revenue, providing operating leverage. R&D and sales expenses tracked growth investments.

**【Q&A Highlights】**
- **Payments Growth**: Payments revenue grew >2x total revenue, driven by surcharging, bulk collections, and EMR integrations. AI receptionist will soon handle payments workflows.
- **Specialty Medical Strategy**: Penetration <1% in a $10B+ market. Success with 600+ location group (50+ locations onboarding) highlights EMR partnership potential.
- **AI Integration**: TrueLark AI receptionist now sold to mid-market and single-location customers. Voice capabilities launching Q4 to handle 24/7 patient interactions.
- **Profitability Outlook**: 2026 investments in go-to-market and engineering will balance growth with incremental profitability, targeting sustainable margin expansion.

Weave Communications, Inc. (WEAV) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: $58.5M (+15.6% YoY) with 72.3% gross margin, $4.5M free cash flow.
- **TrueLark Integration**: 24/7 scheduling automation added $35M, Q4 single-location launch planned.
- **Specialty Medical Expansion**: 1% share of $10B+ market, led by medical aesthetics and physical therapy.
- **AI Adoption**: 80% of fast-growing practices credit tech for growth, call intelligence adoption improving collections.
- **2025 Guidance**: $236.8M-$239.8M revenue, positive free cash flow expected.

**【CEO Summary Section】**
- Q2 revenue reached $58.5 million, up 15.6% YoY, driven by payments growth and TrueLark integration. Gross margin improved to 72.3%, with free cash flow of $4.5 million.
- Specialty medical vertical grew to second-largest segment, with 1% market share in a $10B+ addressable market. Medical aesthetics, physical therapy, and primary care led growth.
- TrueLark acquisition ($35M total consideration) added 24/7 scheduling automation, with 15,000+ monthly conversations for a multi-location customer. Integration with Weave inbox expected Q4.
- Promoted Abhi Sharma to CTO, accelerating AI-powered workflow innovation. Q2 saw record sales and 90% gross revenue retention.

**【CFO Financial Commentary】**
- Q2 non-GAAP EPS: $0.09 (vs. $0.07 prior year). Operating income improved $1M YoY to $70,000. Full-year 2025 revenue guidance: $236.8M-$239.8M (15.5%-17.5% growth).
- Sales & marketing expenses: $23.2M (40% of rev), up 25% YoY for mid-market expansion. R&D: $8.9M (15% of rev) for TrueLark integration.
- Cash balance: $77.8M post TrueLark acquisition. 2025 free cash flow expected to turn positive, up from $0.7M in 2024.

**【Q&A Highlights】**
- **Specialty Medical Growth**: 96% of practices report patient base growth, driving demand for Weave's recall reminders (e.g., $70K in added appointments for a single optometry office).
- **TrueLark Integration Progress**: Joint go-to-market teams closed multi-location deals, with single-location onboarding launching Q4. Customer feedback highlights 24/7 scheduling automation benefits.
- **AI Adoption**: 80% of fast-growing practices cite technology as a growth driver. Call intelligence adoption improving collections (e.g., $100K in 12 months for a dental practice).
- **Macroeconomic Resilience**: No consumer demand weakness observed; record Q2 sales and 96% NRR reflect strong SMB healthcare demand.
- **2026 Outlook**: TrueLark expected to be accretive, with mid-market and medical verticals driving 2025-2026 growth. Price increases under evaluation for 2026 cohorts.

Weave Communications, Inc. (WEAV) Q2 2025 Earnings Call Transcript

- **$35M TrueLark Acquisition**: Expands U.S. TAM to $10B, adds AI-powered front-desk automation for SMB healthcare practices.
- **Q1 2025 Results**: 18% YoY revenue growth to $55.8M, 72.1% gross margin, and $1M EBITDA.
- **Cross-Sell Opportunity**: TrueLark's 1,000+ customers represent <1% of Weave's 80,000+ locations, with potential to add $10M+ annual revenue.
- **Specialty Medical Surge**: Q1 medical locations added set a new record, driven by 3 new integrations.
- **Payment Growth**: Attach rate <10% but growing >2x revenue rate; AI-integrated payments workflows to accelerate adoption.

**【CEO Summary Section】**
- Announced the acquisition of TrueLark, an AI-powered front-desk automation platform, expanding the U.S. TAM to $10 billion.
- Q1 2025 revenue grew 18% YoY to $55.8 million, driven by specialty medical and payments growth.
- Highlighted TrueLark's value as a revenue-generating tool for SMB healthcare practices, with cross-sell opportunities across Weave's existing customer base.
- Introduced Abhi Sharma as Senior Vice President of Engineering to accelerate AI-driven innovation.
- Q1 gross margin improved to 72.1%, up 170bps YoY, reflecting operational efficiency.

**【CFO Financial Commentary】**
- Acquired TrueLark for $35 million ($25M cash, $10M equity), with performance-based equity tied to 2025-26 revenue milestones.
- Q1 non-GAAP operating income was $39,000, up $1.4M YoY, with adjusted EBITDA of $1M.
- 2025 full-year revenue guidance raised to $236.8-$239.8 million, including $2.5M from TrueLark.
- Q2 2025 revenue expected to grow 18-19% YoY, despite tough comparisons due to 2024 pricing adjustments.
- Operating expenses remain disciplined, with R&D and go-to-market investments to accelerate TrueLark integration.

**【Q&A Key Highlights】**
- **TrueLark Pricing & Monetization**: Sold on subscription basis with multi-year contracts; customers see 100% ROI within 6 months. Cross-sell to Weave's 80,000+ locations could add $10M+ annual revenue.
- **Specialty Medical Growth**: Q1 medical locations added set a new record, driven by integrations with Prompt, Practice Fusion, and Veradigm.
- **Payment Solutions**: Attach rate <10% but growing >2x revenue growth rate; integrating TrueLark's AI with payments workflows to accelerate adoption.
- **Market Resilience**: Dental and optometry verticals >10% penetrated, while specialty medical <1% penetrated. elective procedures (e.g., plastic surgery) show macro resilience due to inelastic demand.
- **Mid-Market Expansion**: New 30-location DSO win demonstrates ability to scale into multi-location groups through partner referrals.


Weave Communications (WEAV)-5 May 25-2025 Q1 Earnings call transcript

- **Record Growth**: Q4 2024 revenue up 19% YoY to $54.2M, with full-year revenue hitting $204.3M (+20% YoY).
- **Profitability Milestone**: First full-year operating profit in company history, with Q4 operating income of $1.8M.
- **Strategic Investments**: 
  - $10.4M free cash flow (+59% YoY) fuels expansion into medical verticals, AI, and mid-market.
  - New payments partnerships and AI-driven workflows expected to accelerate 2025 growth.
- **Key Metrics**: 
  - Gross margin 72.6% (up 290bps YoY)
  - NRR 98% (vs. 95% YoY)
  - 34%+ new medical locations added in Q4
- **2025 Outlook**: Target $232-237M revenue, with operating income of $2-6M, driven by disciplined investment in high-impact growth vectors.

**【CEO Key Highlights】**
- **Revenue Growth**: Q4 2024 revenue of $54.2M (+19% YoY), exceeding guidance midpoint by $1.1M. Full-year revenue reached $204.3M (+20% YoY).
- **Gross Margin Expansion**: Q4 gross margin improved to 72.6% (up 290bps YoY), 12th consecutive quarter of sequential improvement.
- **New Vectors of Growth**: 
  - **Specialty Medical Verticals**: Revenue grew twice the rate of overall company, with 34%+ new medical locations added in Q4.
  - **Partnerships**: Expanded integrations with eClinicalWorks, Athenahealth, and Prompt, reaching 100,000+ new locations.
  - **Mid-Market Expansion**: Secured Affordable Care as platform of record, with dedicated sales team expansion.
  - **AI Innovations**: Launched Call Intelligence, achieving 88% customer satisfaction rate for call analysis.
- **2025 Outlook**: Target $232-237M revenue, with operating income of $2-6M. Investments in payments, AI, and partnerships expected to drive long-term growth.

**【CFO Financial Breakdown】**
- **Profitability**: Q4 non-GAAP operating income of $1.8M (vs. -$3.5M YoY), full-year operating margin turned positive at 0.4%.
- **Cash Flow**: Q4 free cash flow of $6.1M (+109% YoY), full-year free cash flow of $10.4M (+59% YoY).
- **Expense Management**: 
  - Sales & Marketing: 37% of revenue (down from 38% YoY)
  - R&D: 15% of revenue (down from 16% YoY)
  - G&A: 17% of revenue (down from 19% YoY)
- **Balance Sheet**: $99.1M cash & short-term investments as of Q4 end.

**【Q&A Key Takeaways】**
1. **2025 Growth Strategy**: 
   - **Payments**: New Head of Payments, doubled engineering team, integrating ACI payments workflows.
   - **AI**: Call Intelligence monetized via premium bundles, with 74% of practices seeing faster collections.
   - **Partnerships**: Dedicated partner sales team to accelerate co-selling with Patterson Dental, Prompt.
2. **Challenges**: 
   - Q2 2025 will face tough comp from Q2 2024 pricing adjustments.
   - Section 404(b) compliance costs expected to rise.
3. **NRR Trends**: 
   - Q4 NRR 98% (vs. 95% YoY), driven by payments adoption and price adjustments.
   - GRR 91% (stable vs. prior years), among top SMB SaaS performers.


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