Yahoo Finanza Weave Communications Q1 2024 Earnings: Surpasses Revenue Estimates Amidst Challenges
Revenue: Reported $47.2 million, marking a 19.2% increase year-over-year, exceeding estimates of $45.79 million.
GAAP Gross Margin: Increased to 69.9%, up from 67.1% the previous year, reflecting a 280 basis point improvement.
Non-GAAP Gross Margin: Reached 70.4%, up from 67.6% year-over-year, also improving by 280 basis points.
GAAP Net Loss: Recorded at $7.2 million, or $0.10 per share, compared to a net loss of $7.9 million, or $0.12 per share in the prior year, showing a reduction in losses.
Non-GAAP Net Loss: Improved to $6.4 million, or $0.01 per share, significantly better than the previous year's $3.3 million, or $0.05 per share.
Free Cash Flow: Reported as negative $20.5 million, a decrease from positive $0.6 million in the prior year, influenced by new billing system implementation and timing of employee bonus payouts.
Future Outlook: Anticipates Q2 revenue between $48.2 million and $49.2 million, with full-year revenue projected between $197 million and $200 million.
Weave Communications Inc (NYSE:WEAV) unveiled its financial results for the first quarter of 2024 on May 1, 2024, demonstrating a robust revenue increase and significant improvements in gross margins. The company's 8-K filing highlights a year-over-year revenue growth of 19.2%, reaching $47.2 million, which surpasses the analyst's expectation of $45.79 million.
Weave Communications, a pivotal player in the SMB healthcare sector, offers an integrated customer experience and payments software platform. This platform streamlines patient interactions from the initial contact to billing, enhancing operational efficiencies and patient engagement through its comprehensive suite of services including communication tools, appointment scheduling, and payment processing.
Financial Performance Overview
The first quarter results reflect a positive trajectory with a GAAP gross margin of 69.9%, up from 67.1% in the previous year, and a non-GAAP gross margin of 70.4%. However, Weave reported a GAAP net loss of $7.2 million, or $0.10 per share, an improvement from a net loss of $7.9 million, or $0.12 per share, year over year. The non-GAAP net loss stood at $0.4 million, or $0.01 per share, significantly better than the expected $-0.02 EPS.
Despite these gains, the company faced challenges with its cash flow. Net cash used in operating activities was $19.7 million, a stark contrast to the net cash provided by operating activities of $1.5 million in the same quarter last year. This was largely due to the implementation of a new billing system and the timing of annual employee bonuses.
Strategic Developments and Market Position
Weave continues to strengthen its market position through strategic integrations with major practice management systems and key executive hires, aimed at enhancing operational capabilities and driving revenue growth. The company has also been recognized as a leading platform in several categories by G2 and has received accolades for its workplace environment.
Balance Sheet and Cash Flow Analysis
As of March 31, 2024, Weave reported total assets of $190.174 million and total liabilities of $116.738 million. The balance sheet shows a healthy level of cash and short-term investments totaling approximately $82.3 million, despite a decrease in cash and cash equivalents from the previous quarter.
Looking Ahead
For Q2 2024, Weave anticipates revenue between $48.2 million and $49.2 million and projects a non-GAAP loss from operations between $2.5 million and $1.5 million. The full-year outlook is also optimistic, with revenue expectations ranging from $197.0 million to $200.0 million.
Conclusion
Weave's Q1 2024 performance, characterized by revenue growth and margin improvements, positions the company positively in the competitive SMB healthcare market. However, investors should consider the cash flow challenges and the ongoing need to manage operating losses. As Weave continues to execute its strategic initiatives, it remains a noteworthy entity for stakeholders tracking growth in healthcare technology solutions.
For detailed financial figures and future updates, stakeholders are encouraged to view the full earnings release.
Explore the complete 8-K earnings release (here) from Weave Communications Inc for further details.
This article first appeared on GuruFocus.
