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WEAV NYSE· Weave Communications Inc
Earnings report Q3 2023

Weave Communications Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

Weave Communications, Inc. reported total revenue of $43.54 million for the three months ended September 30, 2023. This represents a significant increase of 20% compared to the same period last year when revenue was $36.23 million. For the nine months ended September 30, 2023, the company's revenue reached $124.78 million, up 19% from $104.43 million in the prior year.

Strengths

Weave Communications demonstrated strong revenue growth in the latest quarter, driven by increased adoption of its customer experience and payments software platform by small- and medium-sized healthcare businesses (SMBs). The company's platform, which offers a comprehensive suite of services including texting, reviews, online scheduling, appointment reminders, and more, has helped SMBs in the healthcare industry attract, engage, and retain patients. Weave's focus on unifying and modernizing the operations of these businesses has proven successful, as reflected in the significant revenue growth.

Challenges

Despite the positive revenue growth, Weave Communications still faces challenges in terms of its operating expenses. The company reported total operating expenses of $37.96 million for the latest quarter, representing an increase of 8% compared to the same period last year. While the increase in expenses is partly attributed to investments in sales and marketing, research and development, and general and administrative functions, it is important for the company to closely manage these costs to ensure sustainable profitability.

Noteworthy

Weave Communications primarily serves dental, optometry, and veterinary practices, but it is expanding its platform services to support additional specialized medical verticals. This strategic expansion indicates the company's commitment to diversifying its customer base and capturing new market opportunities. By investing in product development and integrations, Weave aims to further enhance its platform's value proposition and attract customers from various healthcare sectors.

Summary

Weave Communications delivered strong revenue growth in the latest quarter, driven by the increasing adoption of its customer experience and payments software platform by SMBs in the healthcare industry. The company's focus on unifying and modernizing operations for these businesses has proven successful, resulting in a 20% increase in revenue compared to the same period last year. However, Weave needs to carefully manage its operating expenses to ensure sustainable profitability. The company's expansion into specialized medical verticals demonstrates its commitment to diversification and capturing new market opportunities. Overall, Weave's performance in the latest quarter showcases its ability to provide valuable solutions to SMBs in the healthcare sector.

Source documents

Form 10-Q  filed on Nov 08, 2023
7 pages scanned

Reference data

Company financials Q3 revenue 43.5M
Analyst estimates Q3 EPS missed by -83.20%
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