LEHI, Utah - Weave Communications (NYSE: WEAV), a comprehensive customer experience and payments software platform for small and medium-sized healthcare businesses, reported a robust fourth quarter, surpassing analyst revenue expectations. The company announced a Q4 adjusted EPS of ($0.01), which was $0.02 better than the analyst estimate of ($0.03). Revenue for the quarter reached $45.7 million, exceeding the consensus estimate of $44.2 million and marking a significant 21.2% increase YoY from $37.7 million in the fourth quarter of the previous year.
Weave's financial performance reflects its continuous quarterly improvements, as CEO Brett White highlighted the company's revenue growth rate, gross and operating margin, adjusted EBITDA, free cash flow, and customer acquisition. "Our growing market opportunity and the economic resilience of our customer base, combined with a platform that delivers both innovation and real customer value, positions us for continued success in 2024," said White.
Looking ahead, Weave provided guidance for the first quarter of 2024 with expected revenue ranging from $45.2 to $46.2 million, compared to the consensus estimate of $45.617 million. For the full year 2024, the company anticipates revenue to be between $194.0 and $198.0 million, which is in line with the consensus estimate of $194.6 million.
The company's positive financial trajectory is also reflected in its net cash from operating activities, which was $3.7 million for the quarter, a significant improvement from the negative net cash from operating activities of $2.8 million last year. The full year also saw a positive net cash from operating activities of $10.2 million, up from negative net cash from operating activities of $12.8 million in the previous year.
In addition to these financial milestones, Weave's fourth quarter saw positive free cash flow of $2.9 million, up from negative free cash flow of $3.8 million last year, and a full year positive free cash flow of $6.5 million, a substantial rise from negative free cash flow of $15.9 million last year.
Weave's stock movement in response to the earnings release and future guidance was not provided, therefore the market's reaction to this news is not discussed in this article.
InvestingPro Insights
Weave Communications (NYSE: WEAV) has demonstrated a strong financial performance in the latest quarter, and the outlook for the company's future remains optimistic. To provide a deeper understanding of Weave's financial health and market position, let's delve into some key metrics and insights from InvestingPro.
InvestingPro Data reveals that Weave holds a market capitalization of $860.09 million, indicating a significant presence in its sector. Despite not being profitable over the last twelve months, as evidenced by an adjusted P/E Ratio of -24.46, the company has shown impressive revenue growth. The latest figures show a 19.22% increase in revenue over the last twelve months as of Q3 2023. Additionally, Weave's gross profit margin stands at a healthy 67.37%, which suggests that the company is able to retain a majority of its revenue as gross profit.
One of the InvestingPro Tips highlights that Weave has more cash than debt on its balance sheet, which is a positive sign of financial stability. This aspect, combined with the fact that liquid assets exceed short-term obligations, provides a cushion for the company to navigate through economic uncertainties. Moreover, even though analysts do not anticipate Weave to be profitable this year, the company has enjoyed a strong return over the last year, with a 149.09% price total return, showcasing investor confidence in its potential for growth.
For readers looking to gain more in-depth analysis and additional InvestingPro Tips for Weave Communications, there are currently 6 more tips available, which can be accessed through the InvestingPro platform. These tips can provide valuable insights for making informed investment decisions. To explore these insights further, visit https://www.investing.com/pro/WEAV and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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