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Weave Communications (WEAV)
NYSE:WEAV
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Weave Communications (WEAV) AI Stock Analysis

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WEAV

Weave Communications

(NYSE:WEAV)

Rating:62Neutral
Price Target:
$8.00
▲(4.03% Upside)
Weave Communications' overall stock score is driven by strong earnings call performance and strategic corporate events, which highlight growth potential and strategic direction. However, ongoing profitability challenges and mixed technical indicators temper the overall outlook.
Positive Factors
Acquisition
The company’s acquisition of TrueLark, an AI-powered receptionist and front-desk platform, enhances the company’s value proposition.
Revenue Growth
Payments revenue growth continues to outstrip consolidated revenue growth and provides a new vector for ARPU growth and customer retention.
Negative Factors
Operating Income Guidance
WEAV also slightly lowered full-year 2025 non-GAAP operating income guidance by $2.5mn, also driven by TrueLark.
Revenue Retention
Net revenue retention of 96% fell sequentially, as was gross revenue retention of 90%.

Weave Communications (WEAV) vs. SPDR S&P 500 ETF (SPY)

Weave Communications Business Overview & Revenue Model

Company DescriptionWeave 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 MoneyWeave Communications generates revenue primarily through a subscription-based model, offering its software solutions on a recurring monthly basis. Key revenue streams include subscription fees from its communication platform, which integrates phone systems, messaging services, and other customer engagement tools. The company may also earn revenue from additional services such as hardware sales or premium features offered to clients. Weave's earnings are influenced by the growth of its customer base, the retention of existing clients, and the expansion of its service offerings. Additionally, strategic partnerships with industry-specific associations or technology providers can contribute to its market reach and revenue growth.

Weave Communications Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements such as record sales, improved margins, successful acquisitions, and strong growth in key verticals. While there are ongoing integration challenges and high sales and marketing expenses, the positive aspects and growth trajectory outweigh the negatives.
Q2-2025 Updates
Positive Updates
Record Sales Quarter
Weave experienced another record sales quarter, marking the 14th consecutive quarter of exceeding the top end of revenue guidance with $58.5 million in revenue, a 15.6% year-over-year growth.
Strong Revenue Growth in Specialty Medical Vertical
Specialty Medical has become the second largest vertical by customer count, with record growth driven by medical aesthetics, primary care, and physical therapy.
Successful TrueLark Acquisition
The acquisition of TrueLark, an AI-powered workflow automation platform, was completed and is being integrated with Weave's offerings. Initial joint selling efforts are underway.
Improved Gross Margin
Gross margin rose to 72.3%, an increase from Q1 and an improvement of 40 basis points year-over-year.
Strong Free Cash Flow
Generated $4.5 million in free cash flow, showcasing disciplined execution and efficiency.
Promising Mid-Market Growth
Momentum is building in the mid-market, with significant traction in veterinary and specialty medical verticals.
Negative Updates
Integration Challenges
The integration of TrueLark into single location practices is still a work in progress, with full rollout expected in Q1 2026.
High Sales and Marketing Expenses
Sales and marketing expenses were $23.2 million or 40% of revenue, driven by accelerated hiring of sales account executives.
Company Guidance
In the Weave Communications' Second Quarter 2025 earnings call, the company reported a robust financial performance, highlighted by a revenue of $58.5 million, marking a 15.6% year-over-year growth and surpassing the top end of their revenue guidance for the 14th consecutive quarter. The company saw a gross margin increase to 72.3% and generated $4.5 million in free cash flow, underscoring its operational efficiency and scalability. Gross revenue retention remained strong at 90%, with net revenue retention at 96%. The acquisition of TrueLark in May, valued at $35 million, was noted as a strategic move to enhance AI-powered workflow automation, contributing to a broader growth strategy. Weave's guidance for Q3 2025 anticipates revenue between $60.1 million to $61.1 million and a non-GAAP operating income of up to $1 million, with full-year revenue projected between $236.8 million and $239.8 million.

Weave Communications Financial Statement Overview

Summary
Weave Communications shows strong revenue growth and gross profit margins, but profitability remains a concern due to continued negative net income and EBIT. The balance sheet is stable with moderate leverage, but the declining equity ratio suggests increased liability dependency. Cash flow improvements are a positive sign, though financial sustainability will require operational and profitability enhancements.
Income Statement
65
Positive
Weave Communications has shown consistent revenue growth, with the most recent TTM (Trailing-Twelve-Months) revenue increasing by 8.1% compared to the previous year. However, profitability remains a challenge, as indicated by negative EBIT and Net Income across periods. The company exhibits strong gross profit margins (71.8% TTM), but the negative net profit margin (-13.6% TTM) highlights ongoing operational inefficiencies.
Balance Sheet
60
Neutral
The balance sheet reveals a moderate debt-to-equity ratio of 0.69, indicating manageable leverage. Stockholders' equity has been improving, reflecting growing total assets. However, the equity ratio has declined over the years, now at 38.6%, suggesting a higher reliance on liabilities. The positive return on equity (ROE) remains elusive due to persistent net losses.
Cash Flow
70
Positive
Cash flows are improving, with a notable increase in free cash flow by 19.7% in the latest period. The operating cash flow to net income ratio is positive, indicating cash generation capability despite losses. However, the reliance on financing activities in past years and recent negative investing cash flows may pose future challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue220.83M204.31M170.47M142.12M115.87M79.90M
Gross Profit158.67M145.88M116.09M88.84M66.50M45.45M
EBITDA-10.67M-11.17M-13.02M-31.55M-38.31M-29.90M
Net Income-30.13M-28.35M-31.03M-49.74M-51.69M-40.42M
Balance Sheet
Total Assets204.34M188.93M201.01M208.35M187.49M92.97M
Cash, Cash Equivalents and Short-Term Investments77.84M99.13M108.84M113.34M136.00M55.70M
Total Debt54.77M56.06M59.54M73.56M25.04M18.44M
Total Liabilities125.47M121.96M122.06M125.13M75.18M54.98M
Stockholders Equity78.88M66.97M78.96M83.22M112.30M37.99M
Cash Flow
Free Cash Flow14.31M11.96M6.53M-15.89M-30.18M-19.38M
Operating Cash Flow16.40M14.15M10.22M-12.77M-20.37M-15.52M
Investing Cash Flow-10.76M8.88M-7.74M-54.03M-9.81M-3.86M
Financing Cash Flow-12.63M-22.19M-13.72M-7.21M110.48M-5.15M

Weave Communications Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.69
Price Trends
50DMA
7.85
Negative
100DMA
8.85
Negative
200DMA
11.58
Negative
Market Momentum
MACD
-0.05
Negative
RSI
49.08
Neutral
STOCH
36.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEAV, the sentiment is Neutral. The current price of 7.69 is above the 20-day moving average (MA) of 7.59, below the 50-day MA of 7.85, and below the 200-day MA of 11.58, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 36.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WEAV.

Weave Communications Risk Analysis

Weave Communications disclosed 76 risk factors in its most recent earnings report. Weave Communications reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Weave Communications Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$687.70M55.863.26%-1.35%-59.67%
63
Neutral
$748.91M74.625.33%4.51%8241.83%
62
Neutral
$579.31M-40.52%18.10%4.60%
61
Neutral
$36.05B6.66-10.10%1.86%8.68%-8.81%
59
Neutral
$635.81M298.215.20%30.92%
55
Neutral
$370.57M-55.85%4.06%57.50%
50
Neutral
$670.87M-75.71%-5.06%-2318.18%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WEAV
Weave Communications
7.69
-3.50
-31.28%
CMRC
Commerce.com
4.66
-1.22
-20.75%
DSP
Viant Technology
10.03
-0.78
-7.22%
BMBL
Bumble
6.33
-0.26
-3.95%
VMEO
Vimeo
4.24
-0.91
-17.67%
VTEX
VTEX
4.07
-2.99
-42.35%

Weave Communications Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Weave Communications Appoints Adrian McDermott to Board
Positive
Jun 26, 2025

On June 22, 2025, Weave Communications announced the appointment of Adrian McDermott to its Board of Directors, effective August 1, 2025. McDermott, currently the Chief Technology Officer at Zendesk, brings extensive experience in technology and product development, particularly in AI-powered customer service solutions and platform scalability, which will aid Weave’s strategic technology initiatives. This appointment follows Weave’s acquisition of TrueLark and its recognition in G2’s 2025 Best Software Awards, reinforcing the company’s commitment to technological innovation and expansion in the healthcare market.

M&A TransactionsRegulatory Filings and Compliance
Weave Communications Registers Shares Post TrueLark Acquisition
Neutral
Jun 4, 2025

On June 4, 2025, Weave Communications filed a prospectus supplement with the SEC to register 981,405 shares of its common stock related to the acquisition of TrueLark. This filing is part of Weave’s obligations under a registration rights agreement following the merger, ensuring compliance with SEC regulations and facilitating the sale of these shares by stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025