Crosslink Capital Inc., a significant shareholder of Weave Communications, Inc. (NYSE:WEAV), recently sold 89,555 shares of the company's common stock. The transaction, which took place on November 1, 2024, was executed at a price of $12.98 per share, amounting to a total sale value of approximately $1.16 million.
Following this sale, Crosslink Capital holds approximately 8,116,688 shares of Weave Communications. The transaction was part of a series of moves by Crosslink, which also included a pro rata, in-kind distribution of 739,314 shares to its limited partners, although this was not a sale and did not involve any monetary exchange.
Crosslink Capital, along with Crosslink Capital Management, LLC, serves as an investment manager for various private investment funds, which hold these securities for the benefit of their investors. The transactions were disclosed in a filing with the Securities and Exchange Commission, signed by Mihaly Szigeti, Chief Compliance Officer of Crosslink Capital.
In other recent news, Weave reported strong Q3 growth and raised its 2024 guidance during its earnings call. The company announced a significant year-over-year revenue increase to $52.4 million, surpassing the expected guidance by $1.2 million. This marks a milestone for Weave as it reported its first positive non-GAAP operating income at $1.4 million. The company's growth is supported by advanced platform features, strategic partnerships, and an expanded market presence.
Weave's gross margin improved to 72.5%, continuing an 11-quarter streak of growth. The net revenue retention rate increased to 98%, with a gross revenue retention rate of 92%. The company also demonstrated improved operational efficiency as operating expenses as a percentage of revenue decreased.
Looking ahead, Weave anticipates Q4 2024 revenue to be in the range of $52.6 million to $53.6 million. The company also raised its 2024 revenue guidance to between $202.7 million and $203.7 million and expects to maintain positive non-GAAP operating income. The strategic partnerships, such as with Affordable Care and Patterson, are expected to drive further growth.
InvestingPro Insights
As Crosslink Capital reduces its stake in Weave Communications, Inc. (NYSE:WEAV), investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, Weave Communications has a market capitalization of $943.46 million and has shown strong revenue growth, with a 20.54% increase over the last twelve months as of Q3 2024, reaching $195.84 million.
Despite the recent share sale by a major shareholder, Weave Communications has demonstrated impressive market performance. InvestingPro data reveals a 56.37% price total return over the past six months and a 52.16% return over the last year. This aligns with an InvestingPro Tip indicating that the company has enjoyed a "High return over the last year."
However, it's important to note that Weave Communications is not currently profitable, with an operating income margin of -16.36% over the last twelve months. This is reflected in another InvestingPro Tip, which states that the company has "Not been profitable over the last twelve months." Nevertheless, analysts are optimistic about the company's future, with an InvestingPro Tip suggesting that "Analysts predict the company will be profitable this year."
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Weave Communications, providing a deeper understanding of the company's financial health and market position.
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