Weave Q1 2025 presentation slides: 18% revenue growth, TrueLark acquisition

Introduction & Market Context

Weave Communications Inc (NYSE:WEAV) released its Q1 2025 investor presentation on May 5, 2025, highlighting the company’s continued growth trajectory and strategic initiatives. The presentation comes as Weave reported an 18.3% year-over-year revenue increase to $55.8 million, slightly exceeding analyst expectations of $54.74 million. Despite the positive results, the stock saw a minor decline of 0.93% in aftermarket trading, closing at $10.60.

Weave positions itself as an all-in-one customer communications, engagement, and payments platform specifically designed for small and medium-sized healthcare practices across dental, optometry, veterinary, and specialty medical verticals. With 35,000+ customer locations and a total addressable market estimated at $22 billion internationally, the company continues to focus on modernizing healthcare practice operations.

As shown in the following overview slide, Weave has achieved significant growth with $213 million in trailing twelve months revenue as of Q1 2025:

Quarterly Performance Highlights

Weave’s Q1 2025 financial results demonstrate continued momentum, with total revenue reaching $56 million, representing an 18% year-over-year increase. The company has maintained strong customer retention with a 91% gross revenue retention rate and 98% net revenue retention rate, indicating successful upselling to existing customers.

Notably, Weave has made significant progress on profitability metrics, achieving $1 million in Q1 2025 Adjusted EBITDA, a $1 million improvement year-over-year. The company’s non-GAAP gross margin expanded to 72.1%, representing a 170 basis point improvement compared to the same period last year.

The following slide highlights these key financial metrics:

Weave’s path to profitability shows steady improvement, with Q1 2025 operating margins approaching breakeven on a non-GAAP basis at -0.10%, while GAAP operating margins reached 16.7%, representing a 300 basis point improvement:

The company’s gross margin performance has also shown consistent progress, reaching 72.1% on a non-GAAP basis in Q1 2025, a 170 basis point improvement year-over-year:

Strategic Initiatives

A centerpiece of Weave’s strategic roadmap is the recent acquisition of TrueLark, an AI-powered virtual receptionist that enables fully autonomous patient engagement. According to CEO Brett White during the earnings call, "TrueLark is a virtual receptionist that enables fully autonomous patient engagement." This acquisition is expected to enhance Weave’s AI capabilities and expand its market reach.

The TrueLark platform responds to 100% of missed calls and delivers 24/7 patient support via SMS and web chat, handling scheduling, answering questions, and sending reminders without staff involvement:

The acquisition aligns with Weave’s broader AI-powered tools roadmap, which includes various capabilities introduced between 2023 and 2025:

Weave’s platform addresses key challenges faced by healthcare practices, including missed calls and appointment scheduling. According to the presentation, the average dental practice misses 300 calls per month, with 80% of those calls related to booking requests. TrueLark helps solve this problem by ensuring every missed call receives a prompt response:

Competitive Industry Position

Weave differentiates itself from competitors by offering a unified platform that combines multiple point solutions into a single integrated system. The platform includes phones, texting, reminders, payments, analytics, and reviews, eliminating the need for healthcare practices to manage a patchwork of different software solutions.

As illustrated in the following slide, Weave’s unified approach addresses the fragmentation problem faced by many healthcare practices:

The company’s competitive position is further validated by its leadership status in the G2 Grid for Patient Relationship Management, where Weave is positioned as the clear leader:

Weave’s platform integrates with numerous practice management systems, enhancing its value proposition for healthcare providers:

Forward-Looking Statements

Looking ahead, Weave has raised its full-year revenue guidance to a range of $236.8-$239.8 million, reflecting confidence in its growth trajectory. For the second quarter of 2025, the company projects revenue between $57.3 million and $58.3 million.

The company’s growth strategy focuses on multiple vectors, including expansion into specialty medical verticals, increased penetration of payments solutions, and AI-powered capabilities:

Weave’s revenue growth has been consistent over the past two years, as shown in the following chart:

The company’s long-term vision includes further AI integration into healthcare operations, with future applications in insurance verification, scheduling, billing, and treatment planning:

Weave’s journey from its founding in 2008 to its current position as a public company with over 35,000 customer locations demonstrates its consistent execution and growth:

While Weave continues to show strong revenue growth and improving profitability metrics, investors should note that the company remains in investment mode as it integrates the TrueLark acquisition and expands its AI capabilities. According to the earnings call, TrueLark is expected to be accretive by 2026, indicating that near-term profitability may be impacted by integration costs and continued investments in growth initiatives.

Full presentation:

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