Total Revenue

18% increase (from $47.17M to $55.8M)

Total revenue rose by 18% in Q1 2025, driven by enhanced customer acquisition and expanded subscriptions, building on the previous period’s momentum from new customer locations and improved integrations that boosted revenue growth. " "

Subscription & Payment Processing

Dominant at $53.4M (steady contribution)

This segment continues to be the primary revenue driver as the robust base of subscription services remains stable, reflecting ongoing customer retention and incremental upgrades compared to previous periods even as overall revenue increased. "

Gross Profit

21% increase (from $32.987M to $39.945M; 71.6% margin)

Gross profit increased by 21% driven by higher revenue coupled with operational efficiencies and improved cost management, echoing earlier improvements in customer mix and pricing power observed in prior periods. " "

Operating Expenses

20% increase (from $41.142M to $49.265M)

Operating expenses rose by about 20% as investments in sales, marketing, R&D, and G&A accelerated to support strategic growth initiatives; these expense increases are in line with prior trends of higher personnel and marketing spending that help drive future revenue. " "

Net Loss

22.6% widening (from $7.203M to $8.825M)

Net loss expanded by 22.6% despite revenue gains, as higher operating expenses—including increased stock-based compensation and other investment costs—outpaced the revenue improvements seen in both the current and previous periods. " "

Operating Cash Flow

Improved from –$19.701M to –$219K

Operating cash flow improved dramatically, nearly breaking even in Q1 2025 due to better working capital management (e.g., improved receivables and accrued liabilities) and larger non-cash adjustments, which marked a significant turnaround from the deep negative cash flow in Q1 2024. " "

Cash and Cash Equivalents

Increased by roughly 74% (from $30.609M to $53.41M)

Cash and cash equivalents surged by about 74%, buoyed by the improved operating cash flow and more favorable investing/financing activities relative to the previous period, leading to a much stronger liquidity position in Q1 2025. " "

Total Revenue

Q2 2025

$54M to $55M "

$57.3M to $58.3M "

raised

Non-GAAP Operating Income

Q2 2025

-$0.7M to +$0.3M "

$1M to breakeven "

lowered

TrueLark Revenue Contribution

Q2 2025

no prior guidance

Only a small amount "

no prior guidance

Total Revenue

FY 2025

$232M to $237M "

$236.8M to $239.8M "

raised

Non-GAAP Operating Income

FY 2025

$2M to $6M "

breakeven to $3M "

lowered

Weighted Average Share Count

FY 2025

Approximately 75.9M shares "

Approximately 76.5M shares "

raised

Payments Platform Growth and Underpenetration

In Q2–Q4 2024, executives emphasized that payments revenue was a key growth driver, with multiple calls noting robust growth, underpenetration relative to the opportunity, integration with practice management systems, and improving attach rates. " " " "

In Q1 2025, payments revenue grew at more than twice the rate of total revenue, with an improving attach rate below 10% and explicit focus on integrating payments into core workflows—including leveraging the upcoming TrueLark integration—to cross the 10% threshold. " " "

Increasing focus and acceleration; strong and growing momentum with enhanced integration opportunities.

TrueLark Acquisition and Integration Risks

Prior periods (Q2–Q4 2024) did not mention TrueLark or related integration risks.

Q1 2025 introduced the TrueLark acquisition for $35 million, presenting it as a strategic fit to accelerate the product roadmap without explicitly citing any integration risks. " "

New emphasis; the topic is newly introduced with an optimistic strategic tone and no noted risks.

AI-Driven Growth Initiatives and Monetization Challenges

In Q2–Q4 2024, Weave discussed AI initiatives like Call Intelligence, AI-driven assistance, and embedded AI features to drive revenue, while also exploring upsell opportunities and challenges with pricing such features. " " " "

In Q1 2025, the emphasis on AI-driven growth continues—with TrueLark’s AI capabilities enhancing autonomous workflows—and there is a growing focus on monetizing these features through potential pricing model adjustments and subscription evaluations. " " "

Consistent focus with increased monetization opportunities; the messaging builds on prior AI efforts.

Strategic Partnerships and Market Expansion

Q2–Q4 2024 calls prominently featured strategic partnerships (e.g. with Patterson Dental and Prompt) and new integrations that expanded market reach across tens of thousands of locations across various verticals. " " " "

Q1 2025 highlighted expanded integrations (e.g. Prompt, Practice Fusion, Veradigm) that broadened the addressable market by approximately 60,000 locations, reinforcing the role of strategic partnerships and extending market expansion alongside the TrueLark acquisition. " "

Broadened and more aggressive market expansion efforts; evolving partnerships and integrations drive growth.

New Weave Enterprise Platform Adoption and Sales Cycle Challenges

In Q2–Q3 2024, the New Weave Enterprise Platform was discussed in the context of adoption for multi-location practices and noted longer sales cycles for mid-market deals, with strategic wins like Affordable Care. " " " "

Q1 2025 did not specifically mention the New Weave Enterprise Platform adoption or associated sales cycle challenges, suggesting a de-emphasis of this topic in the current period.

Topic no longer emphasized; previous focus on adoption and sales cycle has receded in Q1 2025.

Revenue Growth Dynamics and Price Adjustment Strategies

In Q2–Q4 2024, revenue dynamics were strong with robust year-over-year growth driven by new customer acquisitions, payments, and upsell products; substantial price adjustments were made in 2024 to reflect value added across cohorts. " " " "

Q1 2025 continued to show strong revenue growth—driven by payments performance and the TrueLark acquisition—with less aggressive price adjustments anticipated this period compared to 2024, as the focus shifts towards upselling new features rather than across-the-board increases. " " "

Refinement in pricing strategy and continued strong revenue momentum; a stable growth narrative with moderated price hikes.

Net Revenue Retention Trends and Customer Upsell Effectiveness

In Q2–Q4 2024, NRR gradually improved—from 96% to 98%—with effective upsell strategies around products like call intelligence, insurance verification, and integrated payments boosting revenue per location. " " " "

In Q1 2025, NRR remained at 98%, with strong new deals and upgrades—especially in specialty medical—indicating effective upsell execution and sustained customer retention. " "

Stable performance with effective upsell strategies; consistency in customer retention and upsell efficacy.

Operational Efficiency and Gross Margin Improvement

During Q2–Q4 2024, Weave consistently reported improvements in gross margins (reaching figures around 71.9%–72.6%) and operational efficiency through lower G&A percentages and optimized cost structures. " " " " "

Q1 2025 reported a gross margin of 72.1% (despite a slight sequential decline due to seasonal and integration-related cost factors) along with improved operating profits and controlled G&A expenses, underscoring strong underlying unit economics. " "

Consistent operational improvements, with minor short-term headwinds from seasonality/integration costs.

Integration Challenges and Customer Resistance to New Platforms

In Q2–Q3 2024, some discussion centered on the need for deep integrations and transitioning customers from legacy to new platforms—with acknowledgement of a natural pace in adoption and minimal resistance noted. " " "

Q1 2025 did not mention integration challenges or customer resistance, suggesting that prior issues have been resolved or are no longer a focus as integration efforts mature. " "

Not a primary focus in the current period; earlier concerns have diminished or been effectively managed.

Compliance and Regulatory Burden (Sarbanes-Oxley Section 404)

In Q4 2024, it was noted that 2025 would be the first year requiring compliance with Section 404(b), with anticipated increases in audit and compliance fees affecting expenses. "

Q1 2025 acknowledged the increased compliance and regulatory burden (Sarbanes-Oxley Section 404) that contributed to higher audit fees and slightly elevated general and administrative costs, reflecting ongoing adjustments. "

Ongoing increased compliance costs; the focus has shifted from future anticipation in Q4 2024 to active cost considerations in Q1 2025.

Vulnerability to Macro-Economic Downturns in Elective Verticals

In Q2 2024, management reassured that core markets (dental, medical, veterinary) were stable and less vulnerable, while elective verticals were implicitly less emphasized in growth assessments. "

In Q1 2025, executives explicitly acknowledged that elective verticals could face challenges during economic downturns but reiterated that the majority of customers are in more stable segments, noting historical resilience in elective services. "

Consistent awareness of macro risks with an emphasis on resilience; caution is maintained but overall stability is highlighted.