Weave Communications (WEAV) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 revenue of $50.6M, up 21.4% year-over-year, with record gross margin expansion and first-ever positive adjusted EBITDA, driven by strong demand, operational efficiency, and recurring subscription growth.

• Net loss improved, with non-GAAP net loss nearly breakeven at $0.3M and GAAP net loss at $8.6M, reflecting higher revenue and margin gains.

• Free cash flow and net cash from operations surged, aided by collection of deferred billings and operational improvements.

• Expanded market reach through new integrations, a major partnership with Patterson Dental, and the launch of Weave Enterprise for multi-location practices.

• Recognized for product leadership, workplace excellence, and industry-leading software serving over 31,000 customers.

Financial highlights

• Q2 2024 revenue: $50.6M, up 21.4% year-over-year, beating guidance midpoint by $1.9M.

• GAAP gross margin: 71.4% (up 410 bps); Non-GAAP gross margin: 71.9% (up 400 bps), marking the 10th consecutive quarter of expansion.

• Adjusted EBITDA positive at $5K, first in company history; non-GAAP operating margin improved by 760 bps year-over-year.

• Net loss per share: $(0.12) GAAP, $(0.00) non-GAAP; cash and short-term investments at $99M as of June 30, 2024.

• Free cash flow for Q2 2024 was $21.2M, a significant increase from prior year.

Outlook and guidance

• Q3 2024 revenue guidance: $50.7M–$51.7M; non-GAAP operating loss: $(1.2)M–$(0.2)M.

• Full-year 2024 revenue guidance: $201M–$203M; non-GAAP operating loss: $(3.8)M–$(1.8)M.

• Weighted average share count for the year expected to be 71.7M.