Weave Communications, Inc. Q2 FY2025 earnings call

• Weave offers an AI-powered patient interaction platform for SMB health care practices, unifying various functions. • Q2 had strong financial results: $58.5M revenue, 15.6% YOY growth, 14th consecutive quarter exceeding revenue guidance top end. • Acquired TrueLark in May, which helps practices boost revenue, keep schedules full, and reduce front office burden. • Specialty Medical is now the second largest vertical by customer count, with Q2 marking a record quarter for the medical vertical driven by growth in medical aesthetics, primary care, etc. • Authorized integrations with Veradigm, Practice Fusion, Prompt, Ortho2 Edge, and IDEXX Neo launched, expanding reach. • Mid-market momentum building with a growing and diverse pipeline.

Weave delivered revenue of $58.5 million in Q2 2025, representing 15.6% year-over-year growth. Gross margin rose to 72.3%. Payments revenue continued its rapid growth. Revenue contribution: The $58.5 million revenue was 15.6% YOY growth, with gross margin at 72.3% showing improvement from Q1.

• Q3 2025 revenue expected to be in the range of $60.1 million to $61.1 million, non-GAAP operating income expected to be in the range of breakeven to $1 million. • Full year 2025 revenue expected to be in the range of $236.8 million to $239.8 million, non-GAAP operating income expected to be in the range of $1.2 million to $3.2 million, with profitability set to improve in the second half driven by revenue growth and operating efficiency.

• Potential market competition challenges that could impact market share. • Uncertainties in the integration process of TrueLark, which may affect the timely delivery of combined capabilities. • Macro-economic factors could potentially impact customers' ability to invest in the platform.

Q: Alex Sklar with Raymond James asked about commonality in Specialty Medical success and landings relative to larger integrated bundles.

A: Brett T. White responded that when entering a new vertical like Specialty Medical, they focus on key practice areas initially, ASP may be lower initially but rises as they mature, and it's consistent across landings. Jason Christiansen added that integrations are key for moving customers up the stack.

Q: Matthew Kikkert with Stifel asked about TrueLark integration progress and CAC impact.

A: Brett T. White said integration on go-to-market and product sides is underway, with joint prospecting starting, building onboarding capability for single locations, and expecting to start selling into installed base in Q4 and new single location prospects in Q1. Also mentioned mid-market CAC is good.

Q: Hannah Rudoff with Piper Sandler asked about TrueLark cross-selling and investment acceleration.

A: Brett T. White said teams are working together on cross-selling. Jason Christiansen said most investments are small, and they'll evaluate further investments based on performance.

Q: Henry with Goldman Sachs asked about specialty medical opportunities and AI integration.

A: Brett T. White said there are many opportunities in Specialty Medical's sub-verticals. On AI, adoption is mixed with early adopters and slower cycles, focus on helping customers on automation journey. Jason Christiansen added uptick in interest in AI on multi-location side.

Q: Tim Greaves with Loop Capital Markets asked about engineering hiring for integrations.

A: Jason Christiansen said progress made on hiring, but more capacity needed for TrueLark integration and unified inbox.

Q: Kylie Towbin with Citi asked about billings trajectory and price increases and call intelligence.

A: Jason Christiansen said Q2 had large cohort of annual paying customers, will evaluate price increases on cohort basis. On call intelligence, it continues to progress with finding new ways for customers to use it.