Weave Communications Reports $204.3 Million Revenue, 20% Growth for Fiscal Year 2024

Weave Communications, Inc. reported a revenue of $204.3 million for the fiscal year ending December 31, 2024, marking a 20% increase from $170.5 million in the previous year. The company attributed this growth to the addition of approximately 3,995 new customer locations, bringing the total to nearly 35,000. Despite the revenue increase, Weave continued to operate at a loss, with a net loss of $28.3 million compared to a loss of $31.0 million in 2023. The improvement in net loss was primarily due to a higher gross margin of 71%, up from 68% in the prior year, driven by a favorable customer mix and operational efficiencies.

In terms of operational developments, Weave expanded its product offerings and enhanced its platform, which now includes features powered by artificial intelligence. The company has focused on serving small and medium-sized healthcare businesses, particularly in the dental, optometry, and veterinary sectors. As of December 31, 2024, Weave reported a dollar-based net retention rate of 98%, up from 95% in 2023, indicating strong customer loyalty and increased usage of its platform among existing clients.

Weave's strategic initiatives included the introduction of the Weave Enterprise platform, designed for multi-location healthcare organizations, which allows for centralized administration and reporting. The company also expanded its international presence, particularly in India and the Philippines, where it has increased its engineering and customer support workforce. As of the end of 2024, Weave employed 854 individuals, reflecting its commitment to scaling operations to meet growing demand.

The company’s financial outlook remains cautious, as it continues to navigate challenges associated with customer acquisition and retention in a competitive market. Weave's management emphasized the importance of maintaining high-quality customer support and enhancing product functionality to drive future growth. The company also highlighted potential risks related to economic conditions that could impact its customer base, primarily composed of small and medium-sized businesses, which are often more vulnerable to economic downturns.

Looking ahead, Weave plans to invest in further product development and marketing efforts to expand its market share and enhance customer engagement. The company remains focused on achieving profitability while managing its operational costs and leveraging its existing customer relationships to drive revenue growth.