Weave Communications, Inc. (NYSE: WEAV), a leading all-in-one customer communications and engagement software platform for small and medium-sized businesses, today announced its financial results for the three months ended September 30, 2021.
“Weave was started to enable small and medium sized businesses everywhere to unify, modernize and personalize every customer interaction. Today we provide these businesses with a purpose-built communications and software platform that is intuitive to use and offers a high ROI,” said CEO Roy Banks. “In the third quarter we continued executing our mission and grew revenue by 42% year-over-year. As we recently completed our IPO, we welcome our public shareholders to the very early innings of a large opportunity we are endeavoring to address. We believe we are well positioned to capitalize on the market and opportunity before us.”
Third Quarter 2021 Financial Highlights:
- Total revenue was $30.3 million, representing a 42% year-over-year increase compared to $21.4 million in the third quarter of 2020.
- GAAP loss from operations was $13.9 million, compared to a GAAP loss from operations of $10.1 million in the third quarter of 2020.
- Non-GAAP loss from operations was $10.0 million, compared to a non-GAAP loss from operations of $5.4 million in the third quarter of 2020.
- GAAP net loss attributable to common stockholders was $14.8 million, compared to a GAAP net loss attributable to common stockholders of $10.9 million in the third quarter of 2020.
- Non-GAAP net loss attributable to common stockholders was $10.3 million, compared to a non-GAAP net loss attributable to common stockholders of $5.7 million in the third quarter of 2020.
- GAAP net loss per share attributable to common stockholders was $1.03 on 14,317,575 weighted average shares outstanding, compared to a net loss per share attributable to common stockholders of $0.95 in the third quarter of 2020.
- Non-GAAP net loss per share attributable to common stockholders was $0.72 on 14,317,575 weighted average shares outstanding, compared to a non-GAAP net loss per share attributable to common stockholders of $0.50 in the third quarter of 2020.
- Adjusted EBITDA was $(9.1) million, compared to Adjusted EBITDA of $(5.0) million in the third quarter of 2020.
- Operating cash flow of $(3.3) million, compared to $(2.3) million in the third quarter of 2020.
- Free cash flow of $(6.4) million, compared to $(2.8) million in the third quarter of 2020.
- Dollar-Based Net Retention Rate (NRR) was 104% as of September 30, 2021, reflecting ongoing customer acceptance and utilization of our platform.
- Dollar-Based Gross Retention Rate (GRR) was 93% as of September 30, 2021, reflecting product-market fit and our ability to retain our customers.
Business Highlights
- Priced our initial public offering on November 10, 2021 and raised $111.6 million in net proceeds.
- We added key integration partnerships with Quickbooks Online and Sycle in the third quarter, laying the foundation for new market growth in the home services vertical and deeper penetration into a sub-vertical of audiology.
- We added 1,326 net new customer locations in the three months ended September 30, 2021 and had 22,553 customer locations as of September 30, 2021.
- In the third quarter, Weave was Certified by Great Place to Work, adding to a number of workplace recognitions the company achieved in 2021.
- We were recognized by being named to the Forbes Cloud 100 and Utah Business Fast 50 in August, marking repeat appearances on both lists.
- Our product continues to receive accolades in key verticals for its performance, and Weave was named a Cellerant Best of Class award winner in September, a notable recognition in the dental community.
- Ashish Chaudhary was promoted to Chief Technology Officer in August, aligning our product and engineering organizations to drive technological developments moving forward.
Financial Fourth Quarter and Full Year 2021 Outlook
|
|
Fourth Quarter |
Full Year |
|
Total revenue (in millions) |
$31.5 – $32.5 |
$115.5 – $116.5 |
|
Non-GAAP loss from operations (in millions) |
$(11.0) – $(10.0) |
$(36.5) – $(35.5) |
Non-GAAP loss from operations, non-GAAP net loss and adjusted EBITDA excludes estimates for, among other things, equity-based compensation expense. A reconciliation of these non-GAAP financial guidance measures to corresponding GAAP financial guidance measures is not available on a forward-looking basis because we do not provide guidance on GAAP net loss and are not able to present the various reconciling cash and non-cash items between GAAP net loss and non-GAAP net loss without unreasonable effort. In particular, equity-based compensation expense is impacted by our future hiring and retention needs, as well as the future fair market value of our common stock, all of which is difficult to predict and is subject to constant change. The actual amount of these expenses during 2021 will have a significant impact on our future GAAP financial results.
Webcast
The company will host a conference call for analysts and investors on Tuesday, December 7, 2021, beginning at 5 p.m. EST.
Individuals interested in listening to the conference call may do so by dialing (929) 477-0591 or (866) 248-8441 for toll free. Please reference the following conference ID: 4823211. The live webcast and a webcast replay of the conference call can be accessed from the investor relations page of Weave’s website at investors.getweave.com.
Partial Early Lock-Up Release
Beginning at the opening of trading on Friday, December 10, 2021 and ending at the close of trading on December 15, 2021, Weave’s current and former employees (excluding our directors and executive officers) are permitted, pursuant to the terms of lock-up agreements they have entered into with Goldman Sachs & Co. LLC, BofA Securities, Inc., and Citigroup Global Markets, as representatives of the underwriters for Weave’s recent initial public offering, to sell up to 25% of their vested shares (including shares issuable upon exercise of vested options). Accordingly, Weave estimates that up to 1,103,644 shares will become eligible for sale in the public market at the open of trading on December 10, 2021.
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