Weave Communications (WEAV) AI Stock Analysis

• Market Cap: $695.40M
• Dividend Yield: N/A
• Average Volume (3M): 975.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• Revenue Growth: 19.85%
• EPS Growth: 13.78%
• Country: US
• Employees: 854
• Sector: Technology
• Sector Strength: 40
• Industry: Software - Application
• EPS (TTM): -0.40
• Shares Outstanding: 73,900,240
• 10 Day Avg. Volume: 701,096
• 30 Day Avg. Volume: 975,621
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.23
• Price to Cash Flow (P/CF): 32.40
• P/FCF Ratio: 30.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.20
• Price Target Upside: 93.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Weave Communications demonstrates strong revenue growth and improving cash flow, positioning it well for future growth. However, it faces challenges with profitability, and technical indicators show bearish momentum. The earnings call provided a positive outlook with strategic advancements. Valuation concerns remain due to the negative P/E ratio.

Weave Communications Business Overview & Revenue Model

Company Description

Weave Communications, Inc. provides a customer communications and engagement software platform in the United States and Canada. Its platform enables small and medium-sized businesses to maximize the value of their customer interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current customers, provide information at every call, and manages heavy call times; Weave Text Messaging to communicate with customers; Weave Missed Call Text to take action in real time upon notification of a missed call; Weave Team, a group messaging solution that helps businesses and their team members communicate with each other from their work stations; and Weave Mobile App to text customers, request payments, and receive and make calls. It also offers Weave Reviews to request, collect, monitor, and respond to reviews; Weave Email Marketing, an email system; Web Assistant Appointment Requests and Text Connect to interact with their existing and potential customers online directly through their websites; Weave Payments, a payment processing solution; Customer Insights to collect payments faster, improve personalized engagement with each customer, and recommend follow-up items; and Analytics to identify unscheduled treatments, canceled appointments, unpaid invoices, and other needs. In addition, the company provides Digital Forms to fill out critical information; and Scheduling to send automatic scheduling reminders through text message or email reminders. It serves customers in dental, optometry, veterinary, physical therapy, home services, audiology, medical specialty services, and podiatry industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.

How the Company Makes Money

Weave Communications generates revenue through a subscription-based model, where businesses pay recurring fees to access its integrated communication platform. The company's key revenue streams include monthly or annual subscription plans tailored to the size and specific needs of each client. Additional income is derived from offering premium features and add-ons, such as enhanced reporting tools, advanced analytics, and customer engagement solutions. Partnerships with other technology providers and third-party integrations also contribute to its revenue by enhancing the platform's capabilities and expanding its customer base.

Weave Communications Financial Statement Overview

Summary

Weave Communications shows strong revenue growth and improving cash flow metrics, indicating future potential. However, challenges with profitability and return on equity persist. The balance sheet reflects moderate financial health with a manageable debt-to-equity ratio.

Income Statement

Weave Communications shows positive revenue growth with a TTM increase of 19.88% compared to the previous year, indicating strong top-line growth. However, profitability remains a significant challenge, with negative net profit and EBIT margins at -13.87% and -15.38%, respectively. The company has improved its EBITDA margin to -7.90%, but it still needs to achieve profitability to enhance its financial health.

Balance Sheet

The balance sheet of Weave Communications reflects a moderate financial position. The debt-to-equity ratio stands at 0.84, indicating a manageable level of leverage. The equity ratio is 35.44%, suggesting a stable capital structure. However, the negative return on equity of -42.33% highlights ongoing profitability challenges.

Cash Flow

Cash flow analysis reveals positive developments with a significant improvement in free cash flow, growing by 67.50% in the TTM. The operating cash flow to net income ratio is strong at -0.50, indicating efficient cash conversion, despite ongoing net losses. Continued focus on cash flow management will be crucial for sustaining growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
204.31M	170.47M	142.12M	115.87M	79.90M
	Gross Profit
145.88M	116.09M	88.84M	66.50M	45.45M
	EBIT
-31.41M	-34.37M	-49.70M	-50.39M	-39.57M
	EBITDA
-11.17M	-13.02M	-20.43M	-38.31M	-29.90M
	Net Income Common Stockholders
-28.35M	-31.03M	-49.74M	-51.69M	-41.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
99.13M	108.84M	113.34M	136.00M	55.70M
	Total Assets
188.93M	201.01M	208.35M	187.49M	92.97M
	Total Debt
56.06M	59.54M	73.56M	25.04M	18.44M
	Net Debt
4.46M	8.79M	11.57M	-110.95M	-37.26M
	Total Liabilities
121.96M	122.06M	125.13M	75.18M	54.98M
	Stockholders Equity
66.97M	78.96M	83.22M	112.30M	37.99M
Cash Flow		Free Cash Flow
11.96M	6.53M	-15.89M	-30.18M	-19.38M
	Operating Cash Flow
14.15M	10.22M	-12.77M	-20.37M	-15.52M
	Investing Cash Flow
8.88M	-7.74M	-54.03M	-9.81M	-3.86M
	Financing Cash Flow
-22.19M	-13.72M	-7.21M	110.48M	-5.15M

Weave Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEAV, the sentiment is Negative. The current price of 9.41 is below the 20-day moving average (MA) of 11.20, below the 50-day MA of 13.64, and below the 200-day MA of 12.74, indicating a bearish trend. The MACD of -0.68 indicates Negative momentum. The RSI at 36.07 is Neutral, neither overbought nor oversold. The STOCH value of 28.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEAV.

Weave Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TWLO	63 Neutral	$12.76B	―	-1.24%	―	7.32%	88.51%
FIVN	62 Neutral	$1.74B	―	-2.21%	―	14.44%	84.58%
RNG	60 Neutral	$2.05B	―	16.58%	―	8.99%	63.84%
BAND	60 Neutral	$353.50M	―	-2.14%	―	24.52%	61.08%
Sector *	57 Neutral	$18.57B	9.42	-13.42%	2.72%	5.01%	-23.43%
WEAV	56 Neutral	$695.40M	―	-38.85%	―	19.85%	13.78%
EGHT	51 Neutral	$226.51M	―	-40.78%	―	-2.23%	19.48%

Weave Communications Corporate Events

Weave Communications Announces CFO Retirement and Succession

On February 20, 2025, Weave Communications announced its CFO, Alan Taylor, will retire by the end of the first quarter of 2025, with Vice President Jason Christiansen set to succeed him. The company also released its financial results for the fourth quarter and full year 2024, reporting a significant increase in revenue and improvements in operating income. Weave’s strategic investments in medical vertical markets and partnerships are expected to expand its market leadership and revenue opportunities in 2025.