Weave Communications (WEAV) Q4 2024 earnings summary

Executive summary

• Achieved $204.3M in 2024 revenue, representing 20% year-over-year growth, with 21% growth in subscription and payment processing revenue and continued improvements in profitability and free cash flow.

• Q4 2024 gross margin reached 72.6%, marking 12 consecutive quarters of improvement and a 290bps increase year-over-year; full-year profitability achieved for the first time.

• Free cash flow for 2024 was $10.4M, up 59% year-over-year, and adjusted EBITDA was $4.6M, a $12.4M increase from the prior year.

• Net revenue retention rate in Q4 2024 was 98%, a 3% increase year-over-year.

• Strategic focus on expanding specialty medical verticals, international markets, partnerships, payments, and AI-powered innovations.

Financial highlights

• Q4 revenue: $54.2M, up 18.6% year-over-year, exceeding guidance midpoint by $1.1M.

• Q4 non-GAAP net income was $2.4M ($0.03/share), compared to a non-GAAP net loss of $0.8M last year.

• Adjusted EBITDA for 2024 was $4.6M, a significant turnaround from prior losses.

• Free cash flow in Q4: $6.1M, up 109% year-over-year; full-year free cash flow: $10.4M, up from $6.5M.

• Ended year with $99.1M in cash and short-term investments.

Outlook and guidance

• FY2025 revenue guidance: $232M–$237M; non-GAAP operating income guidance: $2M–$6M.

• Q1 2025 revenue expected at $54M–$55M; Q1 non-GAAP operating income expected between -$0.7M and $0.3M.

• Core business growth in 2025 (excluding 2024 price adjustments) anticipated to exceed 20%.

• Continued investment in payments, AI, and new growth vectors; expect growth acceleration in the second half of 2025.

• Guidance excludes stock-based compensation and other non-cash items.