tiprankstipranks
Trending News
More News >
Weave Communications (WEAV)
NYSE:WEAV
US Market

Weave Communications (WEAV) AI Stock Analysis

Compare
191 Followers

Top Page

WE

Weave Communications

(NYSE:WEAV)

Rating:62Neutral
Price Target:
$10.00
▲(0.91%Upside)
The overall stock score reflects strong earnings call highlights and positive corporate events that indicate future growth potential. However, financial challenges, bearish technical indicators, and valuation concerns temper the outlook.

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:May 05, 2025
(Q1-2025)
|
% Change Since: -7.38%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant growth in revenue and strategic acquisitions enhancing future prospects. However, there were challenges related to increased operating expenses and negative free cash flow.
Q1-2025 Updates
Positive Updates
Revenue Growth and Record Performance
Q1 revenue grew 18% year-over-year, marking the 13th consecutive quarter of exceeding guidance. Gross margin improved by 170 basis points year-over-year to 72.1%.
Acquisition of TrueLark
Weave signed a definitive agreement to acquire TrueLark for $35 million, expanding its addressable market to over $10 billion in the U.S. alone and enhancing its AI and automation capabilities.
Strong Performance in Specialty Medical
Record sales across the Medical segment driven by strong performance in MedSpa and Plastic Surgery, with continued momentum in primary care and physical therapy.
New Integrations and Expanding Market Reach
Launched three new integrations with Prompt, Practice Fusion, and Veradigm, increasing the integrated market by approximately 60,000 locations.
Recognition and Awards
Weave ranked in the Top 50 on G2's 2025 Best Software Awards, and ranked first in 33 categories in G2's spring 2025 report.
Negative Updates
Increased Operating Expenses
Sales and marketing expenses increased sequentially due to Q1 seasonality and the addition of sales reps, impacting overall expenses.
Negative Free Cash Flow
Free cash flow was negative $1.1 million, consistent with expectations due to timing of annual employee bonus payouts.
Tough Year-Over-Year Comparisons
Q2 is expected to be the toughest year-over-year revenue comparison of 2025, as the company laps the effect of a price adjustment in Q2 2024.
Company Guidance
During Weave's first quarter 2025 earnings call, the company provided guidance indicating continued strong performance and growth. Revenue for Q1 grew by 18% year-over-year to $55.8 million, marking the 13th consecutive quarter of exceeding guidance. The gross margin improved by 170 basis points to 72.1%, demonstrating operational efficiency. The company raised its full-year revenue guidance to a range of $236.8 million to $239.8 million, reflecting the acquisition of TrueLark and a raise in the core business guidance. Non-GAAP operating income for the year is expected to be between breakeven and $3 million. Additionally, the company anticipates that TrueLark will be accretive to the bottom line by 2026, with an estimated $2.5 million contribution to 2025 revenue. The retention metrics were robust, with a net revenue retention rate of 98% and a gross retention rate of 91%.

Weave Communications Financial Statement Overview

Summary
Weave Communications shows strong revenue growth and improving cash flows, but faces challenges with ongoing net losses and moderate leverage. Continued focus on operational efficiency and debt management is crucial.
Income Statement
68
Positive
Weave Communications has shown consistent revenue growth over recent years, with a significant increase from $79.9M in 2020 to $213M in TTM (Trailing-Twelve-Months) 2025. Gross profit margin is strong at approximately 71.8%, indicating effective cost management. However, the company continues to face challenges in achieving profitability, with negative net profit and EBIT margins. The net profit margin stands at -14.1%, indicating ongoing losses despite revenue growth.
Balance Sheet
55
Neutral
The balance sheet presents a mixed picture. While the company maintains a solid equity base with an equity ratio of 36.4%, the debt-to-equity ratio of 0.81 reflects moderate leverage. The return on equity is negative due to ongoing net losses, indicating a struggle to generate returns for shareholders. However, the company has managed to maintain a stable asset base and improve its cash position over time.
Cash Flow
72
Positive
Cash flow analysis reveals a positive trajectory, with significant improvement in operating cash flows, reaching $33.6M in TTM 2025. The free cash flow has also turned positive, showing a remarkable increase from negative figures in previous years. The operating cash flow to net income ratio is strong, reflecting better cash generation relative to net losses. This improvement in cash flows provides a positive outlook for liquidity and operational stability.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
212.95M204.31M170.47M142.12M115.87M79.90M
Gross Profit
152.84M145.88M116.09M88.84M66.50M45.45M
EBIT
-32.58M-31.41M-34.37M-49.70M-50.39M-39.57M
EBITDA
-14.21M-11.17M-13.02M-31.55M-38.31M-29.90M
Net Income Common Stockholders
-29.97M-28.35M-31.03M-49.74M-51.69M-40.42M
Balance SheetCash, Cash Equivalents and Short-Term Investments
113.34M99.13M108.84M113.34M136.00M55.70M
Total Assets
208.35M188.93M201.01M208.35M187.49M92.97M
Total Debt
73.56M56.06M59.54M73.56M25.04M18.44M
Net Debt
11.57M4.46M8.79M11.57M-110.95M-37.26M
Total Liabilities
125.13M121.96M122.06M125.13M75.18M54.98M
Stockholders Equity
83.22M66.97M78.96M83.22M112.30M37.99M
Cash FlowFree Cash Flow
30.63M11.96M6.53M-15.89M-30.18M-19.38M
Operating Cash Flow
33.63M14.15M10.22M-12.77M-20.37M-15.52M
Investing Cash Flow
5.01M8.88M-7.74M-54.03M-9.81M-3.86M
Financing Cash Flow
-15.84M-22.19M-13.72M-7.21M110.48M-5.15M

Weave Communications Technical Analysis

Technical Analysis Sentiment
Negative
Last Price9.91
Price Trends
50DMA
10.06
Negative
100DMA
12.16
Negative
200DMA
12.78
Negative
Market Momentum
MACD
-0.18
Negative
RSI
47.47
Neutral
STOCH
68.50
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 9.91 is below the 20-day moving average (MA) of 10.07, below the 50-day MA of 10.06, and below the 200-day MA of 12.78, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 68.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEAV.

Weave Communications Risk Analysis

Weave Communications disclosed 75 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 2 New Risks
1.
The concentration of our share ownership may limit your ability to influence corporate matters. Q4, 2024
2.
We process business and personal information of our customers and employees, which subjects us to HIPAA and other stringent and changing federal, state and foreign laws, regulations, industry standards, information security policies, self-regulatory schemes, contractual obligations, and other legal obligations related to data processing, protection, privacy, and security, and our actual or perceived failure to comply with such obligations could harm our business, financial condition, results of operations, and prospects and could expose us to liability. Q4, 2024

Weave Communications Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$747.11M47.084.29%-0.05%23.22%
71
Outperform
$1.22B79.566.26%7.71%
DSDSP
70
Outperform
$910.34M470.764.15%30.64%
62
Neutral
$745.05M-42.20%19.58%6.58%
62
Neutral
$11.81B10.34-7.44%2.91%7.41%-7.93%
56
Neutral
$548.48M-46.57%-2.39%-2961.26%
54
Neutral
$421.32M-64.59%5.33%58.41%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WEAV
Weave Communications
9.88
1.03
11.64%
BIGC
BigCommerce Holdings
5.36
-2.71
-33.58%
DSP
Viant Technology
14.17
4.76
50.58%
BMBL
Bumble
5.34
-5.58
-51.10%
VMEO
Vimeo
4.59
0.59
14.75%
VTEX
VTEX
6.58
-0.04
-0.60%

Weave Communications Corporate Events

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.

The most recent analyst rating on (WEAV) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Weave Communications stock, see the WEAV Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Weave Communications Holds 2025 Stockholders Meeting
Positive
May 23, 2025

On May 21, 2025, Weave Communications held its 2025 Annual Meeting of Stockholders, where stockholders voted to elect two Class I directors and ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The election of directors and ratification of the accounting firm are expected to impact the company’s governance and financial oversight positively, ensuring continued strategic alignment and transparency.

The most recent analyst rating on (WEAV) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Weave Communications stock, see the WEAV Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Weave Communications Acquires TrueLark for $35 Million
Positive
May 5, 2025

On May 4, 2025, Weave Communications announced its strategic acquisition of TrueLark, an AI-powered receptionist and front-desk automation platform, for $35 million. This acquisition aims to enhance Weave’s leadership in healthcare communications by integrating TrueLark’s AI capabilities, which will help automate front-office operations, improve patient engagement, and fill more appointments. The merger is expected to close in the second fiscal quarter of 2025, subject to customary closing conditions. This move positions Weave to address the growing demand for intelligent automation in multi-location healthcare practices, expanding its market reach and offering significant ROI to customers.

Executive/Board Changes
Weave Communications CTO Branden Neish Announces Retirement
Neutral
May 5, 2025

On April 30, 2025, Branden Neish announced his retirement from Weave Communications, Inc., stepping down as Chief Product and Technology Officer effective May 16, 2025. He will continue in a consulting role until September 16, 2025, to aid in the transition of his responsibilities to Abhi Sharma and Marcus Bertilson. The company has entered into a Transition Agreement with Neish, allowing his unvested restricted stock units to continue vesting during his consulting term.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.