Blake G. Modersitzki, a director at Weave Communications, Inc. (NYSE:WEAV), recently sold a significant portion of the company's stock. According to a recent SEC filing, Modersitzki sold a total of 121,148 shares on October 31, 2024, at an average price of $14.05 per share, amounting to approximately $1.7 million. These transactions were made under a pre-established Rule 10b5-1 trading plan.
Following these sales, Modersitzki retains indirect ownership of 4,331,678 shares through Pelion Ventures VI, L.P., and 296,182 shares through Pelion Ventures VI-A, L.P. Additionally, Modersitzki holds shares indirectly through Pelion Ventures VII, L.P., Pelion Ventures VII-A, L.P., and Pelion Ventures VII-Entrepreneurs Fund, L.P., with respective holdings of 530,529, 109,323, and 59,592 shares. Direct ownership includes 111,097 shares. These transactions highlight Modersitzki's continued significant investment in the company despite the recent sale.
In other recent news, Weave reported strong financial results in its third quarter of 2024, with a significant year-over-year revenue increase to $52.4 million, surpassing the expected guidance by $1.2 million. The company also marked a milestone with its first positive non-GAAP operating income of $1.4 million. These developments are supported by Weave's advanced platform features, strategic partnerships, and expanded market presence.
Further, the company reported an improved gross margin of 72.5% and an increased net revenue retention rate of 98%. The operational efficiency of Weave was also highlighted with decreased operating expenses as a percentage of revenue.
In terms of future outlook, Weave raised its 2024 revenue guidance to between $202.7 million and $203.7 million and expects continued positive non-GAAP operating income. The company anticipates Q4 2024 revenue to be in the range of $52.6 million to $53.6 million and aims for long-term gross margins between 75% and 80%.
These recent developments underline Weave's growth trajectory and its strategic focus on delivering value to its customers. Its partnerships with Affordable Care and Patterson, coupled with the integration with leading practice management systems, are expected to drive further growth.
InvestingPro Insights
To provide context for Blake G. Modersitzki's recent stock sale, it's worth examining Weave Communications' current financial position and market performance. According to InvestingPro data, Weave Communications has a market capitalization of $951.43 million USD, reflecting its status as a growing technology company.
The company's revenue for the last twelve months as of Q3 2023 stood at $195.84 million USD, with a notable revenue growth of 20.54% during this period. This growth trajectory aligns with the company's expansion efforts and could be a factor in the stock's recent performance.
InvestingPro Tips highlight that Weave Communications holds more cash than debt on its balance sheet, which is a positive indicator of the company's financial health. This strong cash position may provide reassurance to investors despite the director's stock sale.
Another relevant InvestingPro Tip notes that the stock price movements are quite volatile. This volatility is reflected in the impressive price performance over various timeframes. For instance, the stock has shown a strong return of 27.17% over the last three months and a substantial 56.37% over the six months preceding October 31, 2024.
These insights suggest that while Modersitzki has sold a portion of his holdings, the company's financial fundamentals and market performance remain strong. Investors seeking a more comprehensive analysis can access additional tips and data through InvestingPro, which offers 10 more tips for Weave Communications.
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