Breaking Down Weave Communications, Inc. (WEAV) Financial Health: Key Insights for Investors

Are you keeping a close watch on Weave Communications, Inc. (WEAV) and wondering about its financial stability? With a 19.9% year-over-year revenue increase, reaching $204.3 million in 2024, and a GAAP operating loss improvement from $34.4 million to $31.4 million, is Weave turning the corner? Considering the boost in free cash flow to $10.4 million and a solid customer retention rate, what does this mean for investors looking at long-term potential? Dive in to explore the key financial insights that could shape your investment decisions.

Weave Communications, Inc. (WEAV) Revenue Analysis

Weave Communications, Inc. generates revenue primarily through its software and related services tailored for small businesses. These services encompass a range of communication and customer engagement tools designed to streamline operations and enhance customer interactions. A detailed analysis reveals the composition and performance of these revenue streams, offering insights into the company's financial health.

Weave's revenue is segmented into several key areas:

• Subscription Revenue: This constitutes the largest portion, derived from recurring subscriptions to Weave’s software platform.
• Services Revenue: Includes fees for implementation, training, and other professional services.
• Hardware Revenue: Although a smaller component, it includes sales of related hardware products that complement the software offerings.

Analyzing the year-over-year revenue growth rate provides a clear picture of Weave's performance. For instance, examining historical trends reveals the percentage increase or decrease in total revenue from one year to the next.

In 2024, Weave Communications reported a revenue of $166.4 million, marking a 21.2% increase compared to $137.3 million in 2023. Subscription revenue accounted for $153.4 million, a 21.2% increase year-over-year, while services and other revenue totaled $13.0 million, showing a 21.1% increase. This growth reflects the increasing adoption of Weave’s platform among small businesses looking to modernize their communication systems.

The contribution of different business segments to Weave's overall revenue is crucial for understanding the company's strengths and areas for potential growth. Subscription services, being the primary revenue driver, highlight the importance of recurring revenue models in Weave's business strategy.

Here's a summary of Weave Communications, Inc.'s revenue streams based on the latest financial data:

Any significant changes in revenue streams, such as shifts in customer preferences or the introduction of new products, can significantly impact Weave's financial performance. Monitoring these changes is essential for investors to assess the company's adaptability and long-term prospects.

For further insights into the investment landscape surrounding Weave Communications, explore Exploring Weave Communications, Inc. (WEAV) Investor Profile: Who’s Buying and Why?

Weave Communications, Inc. (WEAV) Profitability Metrics

Analyzing Weave Communications, Inc. (WEAV)'s profitability involves examining several key metrics that provide insights into its financial health and operational efficiency. These include gross profit, operating profit, and net profit margins, as well as trends in these metrics over time. Comparing these ratios with industry averages helps to benchmark Weave's performance and identify areas for improvement. Additionally, evaluating cost management and gross margin trends offers a deeper understanding of the company's ability to generate profit from its core operations.

As of the fiscal year 2024, a comprehensive analysis of Weave Communications, Inc. (WEAV)'s profitability reveals the following:

• Gross Profit: Weave reported a gross profit of $89.7 million.
• Operating Loss: The company experienced an operating loss of $64.1 million.
• Net Loss: Weave's net loss amounted to $74.5 million, or $1.13 per share.

The financial results for the year ended December 31, 2024, highlight both strengths and areas of concern for Weave. While the gross profit indicates a solid revenue-generating capacity, the operating and net losses suggest challenges in managing expenses and achieving overall profitability.

Here's a more detailed breakdown of Weave's financial performance:

Understanding the trends in Weave's profitability over time requires comparing these figures with previous years. This historical analysis can reveal whether the company is improving its operational efficiency and moving towards profitability or if it continues to face significant financial challenges. For example, improvements in cost management and gross margin trends would indicate positive progress, while increasing losses would raise concerns about the company's long-term financial sustainability.

To gain a comprehensive understanding of Weave's strategic direction, it is also helpful to consider their Mission Statement, Vision, & Core Values of Weave Communications, Inc. (WEAV).

Weave Communications, Inc. (WEAV) Debt vs. Equity Structure

Understanding how Weave Communications, Inc. (WEAV) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and its approach to balancing debt and equity financing. Let's delve into these aspects with available data.

Weave Communications, Inc. (WEAV) reported a total debt of $129.40 million as of December 31, 2023. This debt is broken down into:

• Short-term debt: $1.47 million
• Long-term debt: $127.93 million

The debt-to-equity ratio is a key metric for assessing financial leverage. As of the latest data, Weave Communications, Inc. (WEAV) has a debt-to-equity ratio of 2.19. This ratio indicates the proportion of debt and equity the company is using to finance its assets. A higher ratio suggests that the company relies more on debt, which can amplify both profits and losses.

Here’s a snapshot of Weave Communications, Inc. (WEAV)’s capital structure:

Keeping an eye on Weave Communications, Inc. (WEAV)’s strategies for managing its debt and equity is essential for assessing its financial health and growth potential. Understanding these elements provides a clearer picture for making informed investment decisions.

For more detailed insights, check out: Breaking Down Weave Communications, Inc. (WEAV) Financial Health: Key Insights for Investors

Weave Communications, Inc. (WEAV) Liquidity and Solvency

When evaluating Weave Communications, Inc.'s financial health, understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its capacity to meet long-term debts.

Here's an overview of key liquidity indicators for Weave Communications, Inc.:

• Current Ratio: The current ratio measures a company's ability to pay off its current liabilities with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities. For Weave Communications, Inc., analyzing the trend of this ratio over the past few years provides insights into its short-term financial health.
• Quick Ratio: Also known as the acid-test ratio, the quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets (excluding inventory). This ratio provides a more conservative view of liquidity.

Analyzing working capital trends involves assessing the difference between a company's current assets and current liabilities over a period. Effective management of working capital is essential for maintaining liquidity. Monitoring these trends helps to understand how efficiently Weave Communications, Inc. is managing its short-term assets and liabilities.

The cash flow statement provides a detailed look at how Weave Communications, Inc. generates and uses cash. It is divided into three main sections:

• Operating Activities: This section shows the cash generated from the company's core business operations.
• Investing Activities: This section includes cash flow from the purchase and sale of long-term assets.
• Financing Activities: This section reports cash flow from debt, equity, and dividends.

Reviewing these cash flow trends helps to identify whether Weave Communications, Inc. is generating enough cash from its operations to cover its expenses and investments. Consistent positive cash flow from operating activities is generally a sign of financial strength.

Potential liquidity concerns might arise if Weave Communications, Inc. shows:

• Declining current and quick ratios
• Negative trends in working capital
• Negative cash flow from operating activities

Conversely, strengths in liquidity might be indicated by:

• Increasing current and quick ratios
• Positive working capital trends
• Strong positive cash flow from operating activities

By carefully examining these factors, investors can gain a better understanding of Weave Communications, Inc.'s financial health and its ability to meet its short-term and long-term obligations.

Weave Communications, Inc. (WEAV) Valuation Analysis

When evaluating whether Weave Communications, Inc. (WEAV) is overvalued or undervalued, several key financial ratios and indicators should be considered. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend information (if applicable), and analyst consensus.

Here's a breakdown of these elements:

• Price-to-Earnings (P/E) Ratio: As of April 2025, Weave Communications has a negative P/E ratio of -23.3 [1]. A negative P/E ratio typically indicates that the company is currently not profitable, as earnings are negative.
• Price-to-Book (P/B) Ratio: The P/B ratio for Weave Communications is around 10.27 [3]. This indicates how much investors are willing to pay for each dollar of the company's net assets.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is -71.33 [10]. A negative EV/EBITDA ratio, similar to a negative P/E ratio, suggests that the company has negative earnings before interest, taxes, depreciation, and amortization (EBITDA).

To gain more insights about Weave Communications, Inc., explore its Mission Statement, Vision, & Core Values of Weave Communications, Inc. (WEAV).

Here's a table summarizing Weave Communications' Valuation Ratios:

Stock price trends provide insight into market sentiment and company performance. Over the past year, Weave Communications' stock has experienced volatility. As of April 17, 2025, the stock closed at $9.31, with a 52-week high of $17.63 and a low of $8.10 [1, 3]. Recent performance shows a decline of nearly 7% over the past ten days [1].

The historical data for Weave Communications Inc. (WEAV) is the following:

As of April 2025, Weave Communications does not offer a dividend [1, 7]. Therefore, dividend yield and payout ratios are 0.00%.

Analyst consensus is generally positive. As of April 2025, the consensus rating is a 'Buy' or 'Strong Buy' [2, 4, 5]. The average price target from analysts is $17.38 to $18.20, suggesting a potential upside of approximately 85.29% to 95.49% from the current price [2, 5]. However, it's important to note that some analysts have a 'Hold' rating [4].

Weave Communications, Inc. (WEAV) Risk Factors

Understanding the risks Weave Communications, Inc. (WEAV) faces is crucial for investors. These risks can stem from both internal and external factors, influencing the company's financial stability and future prospects.

Here's an overview of key risks impacting Weave Communications, Inc.'s (WEAV) financial health:

• Industry Competition: The market for communication and customer engagement software is intensely competitive. Weave Communications, Inc. (WEAV) competes with both established players and emerging companies, which could pressure pricing and market share.
• Regulatory Changes: Changes in regulations, particularly those related to data privacy and communication, could require Weave Communications, Inc. (WEAV) to modify its services and incur additional compliance costs.
• Market Conditions: Economic downturns or shifts in business spending can affect the demand for Weave Communications, Inc.'s (WEAV) solutions, impacting revenue and profitability.

Operational, financial, and strategic risks are often detailed in Weave Communications, Inc.'s (WEAV) earnings reports and filings. These may include:

• Operational Risks: These can involve issues related to the reliability and security of Weave Communications, Inc.'s (WEAV) platform, which is critical for maintaining customer trust.
• Financial Risks: Weave Communications, Inc. (WEAV) must manage its cash flow, debt, and investments effectively to ensure long-term financial health.
• Strategic Risks: The company needs to adapt to changing market dynamics and technological advancements to remain competitive.

Mitigation strategies and plans are vital for addressing these risks. While specific details may vary, common strategies include:

• Diversification: Expanding Weave Communications, Inc.'s (WEAV) product offerings and target markets can reduce reliance on specific segments.
• Innovation: Continuous innovation and investment in research and development can help Weave Communications, Inc. (WEAV) stay ahead of competitors.
• Compliance: Maintaining strict compliance with regulations and industry standards can minimize legal and financial risks.

For additional insights into Weave Communications, Inc.'s (WEAV) values and objectives, you might find this resource helpful: Mission Statement, Vision, & Core Values of Weave Communications, Inc. (WEAV).

Weave Communications, Inc. (WEAV) Growth Opportunities

Weave Communications, Inc. (WEAV) faces a dynamic landscape of growth prospects driven by product innovation, market expansion, strategic initiatives, and competitive advantages. These elements collectively shape the company's potential for future revenue growth and enhanced market position.

Key growth drivers for Weave Communications, Inc. (WEAV) include:

• Product Innovations: Continuous development and introduction of new features and integrated solutions tailored to the needs of small and medium-sized businesses (SMBs).
• Market Expansion: Targeting new geographic regions and expanding the customer base within existing markets.
• Acquisitions: Strategic acquisitions to broaden the product portfolio and enhance market reach.

Future revenue growth projections and earnings estimates will depend on Weave Communications, Inc.'s (WEAV) ability to capitalize on these growth drivers. Investors should monitor the company's financial reports and management guidance for updated projections.

Strategic initiatives and partnerships that may drive future growth:

• Partnerships: Collaborations with other technology providers to integrate Weave Communications, Inc.'s (WEAV) platform with complementary solutions.
• New Verticals: Expanding into new industry verticals beyond its core customer base.
• Platform Expansion: Growing their all-in-one platform to include more features.

Weave Communications, Inc. (WEAV) possesses several competitive advantages that position it for growth:

• All-in-One Platform: The comprehensive platform integrates various communication and customer engagement tools, offering convenience and efficiency to SMBs.
• Customer Focus: A strong emphasis on customer support and tailored solutions to meet the specific needs of SMBs.
• Cloud-Based Technology: Leveraging cloud technology to provide scalable and reliable services.

For instance, Weave Communications, Inc. (WEAV) total revenue for the year 2024 was reported at $165.2 million. The company's focus on innovation is evident in its introduction of new features and integrations designed to streamline communication and enhance customer engagement for SMBs.

Here's a look at Weave Communications, Inc.'s (WEAV) financial performance for the fiscal year 2024:

Investors can delve deeper into the ownership and investment trends surrounding Weave Communications, Inc. (WEAV) by exploring: Exploring Weave Communications, Inc. (WEAV) Investor Profile: Who’s Buying and Why?