Weave Communications, Inc. ((WEAV)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Weave Communications recently held an earnings call that highlighted a robust performance, marked by record revenue growth and improved margins. The sentiment during the call was overwhelmingly positive, with significant achievements overshadowing the few challenges mentioned. The successful acquisition of TrueLark further underscored the company’s strong momentum.
Record Revenue and Growth
Weave Communications reported a revenue of $58.5 million, which represents a 15.6% increase year-over-year. This marks the 14th consecutive quarter that the company has exceeded the top end of its revenue guidance, showcasing its consistent growth trajectory.
Improved Gross Margin
The company’s gross margin improved to 72.3%, up 40 basis points from the previous year. This improvement highlights Weave’s efficient operational strategies and its ability to enhance profitability.
Strong Cash Flow Performance
Weave generated $4.5 million in free cash flow, reflecting its disciplined execution and the scalability of its business model. This strong cash flow performance is indicative of the company’s financial health and operational efficiency.
Successful Acquisition of TrueLark
The acquisition of TrueLark, an AI-powered workflow automation platform, is expected to be a valuable asset by 2026. This acquisition enhances Weave’s capabilities in 24/7 online scheduling and missed call response, positioning the company for future growth.
Promising Specialty Medical Growth
Specialty Medical has become the second largest vertical by customer count for Weave, with notable growth in medical aesthetics, primary care, and physical therapy. This expansion into specialty medical fields demonstrates the company’s ability to diversify and capture new markets.
Excellent Customer Feedback
Weave received top rankings in 34 categories in G2’s summer 2025 report, reflecting high levels of customer satisfaction. This positive feedback underscores the company’s commitment to delivering quality products and services.
Promotion of Abhi Sharma to CTO
Abhi Sharma’s promotion to Chief Technology Officer reflects Weave’s strategic vision and operational excellence. His leadership is expected to drive further innovation and technological advancements within the company.
Integration Challenges for TrueLark
While the acquisition of TrueLark is promising, Weave is currently addressing integration challenges. Efforts are focused on onboarding single locations and integrating TrueLark with existing systems to ensure a seamless transition.
Ongoing Engineering Hiring Needs
Weave continues to face challenges in expanding its engineering capacity. The company is actively working to build integrations with additional EHR systems, which is crucial for its growth and operational efficiency.
Forward-Looking Guidance
Looking ahead, Weave Communications expects its third-quarter revenues to range between $60.1 million and $61.1 million, with full-year revenues projected between $236.8 million and $239.8 million. The company anticipates a non-GAAP operating income of $1.2 million to $3.2 million, indicating a positive outlook for the future.
In summary, Weave Communications’ earnings call highlighted a strong performance with record revenue growth and improved margins. The acquisition of TrueLark and the promotion of Abhi Sharma to CTO are strategic moves that position the company for continued success. Despite some integration and hiring challenges, the overall sentiment remains positive, with promising forecasts for the upcoming quarters.