On November 1, 2023, Weave Communications Inc (WEAV, Financial) released its Q3 2023 financial results. The company reported a 20.2% YoY increase in total revenue, reaching $43.5 million. This growth was accompanied by significant improvements in gross and operating margins.
Financial Highlights
GAAP gross margin for Q3 2023 was 68.7%, up from 64.1% in Q3 2022. Non-GAAP gross margin also improved to 69.3% from 64.6% in the same period last year. The GAAP loss from operations was $8.0 million, a decrease from a loss of $11.9 million in Q3 2022. Similarly, the non-GAAP loss from operations was $1.8 million, down from a loss of $6.5 million in Q3 2022.
Net cash provided by operating activities was $3.3 million, a significant improvement from net cash used in operating activities of $4.0 million in Q3 2022. Free cash flow was also positive at $2.1 million, up from negative free cash flow of $4.6 million in the same period last year.
Business Highlights and Future Outlook
Weave announced a new partnership with Affirm and launched Scan to Pay to streamline the payment process. The company also ranked first in 34 different categories in G2’s Fall 2023 Report and won 60 different badges.
For the fourth quarter and full year 2023, the company expects total revenue to be between $43.5 - $44.5 million and $168.3 - $169.3 million, respectively. The non-GAAP loss from operations is projected to be between $(3.0) - $(2.0) million for Q4 2023 and $(12.8) - $(11.8) million for the full year.
CEO's Commentary
“Weave had another excellent quarter, accelerating revenue growth for the third quarter in a row and significantly improving bottom-line, and free cash flow,” said CEO Brett White. “These results demonstrate that our vertically tailored software and payments platform is continuing to gain traction and the Weave team is executing at a high level. Our SMB healthcare customers are well-capitalized, well-managed, and demand for our platform remains strong, despite the challenging macro environment.”
For more detailed financial information, please refer to the full earnings report on the company's website.
Explore the complete 8-K earnings release (here) from Weave Communications Inc for further details.
