Gross Margin Outlook
Q: What drives future margin improvement; where can margins end up?
A: Gross margin has expanded for 11 consecutive quarters. Key drivers include increasing payments revenue, which is growing faster than overall revenue, and phone component amortization after three years, leading to structural improvements. Support and engineering teams are managing costs effectively, using new tools to deliver world-class service without growing staff. Long-term, they see themselves as a 75% to 80% gross margin company.

Net Revenue Retention Growth
Q: How can NRR be increased further?
A: NRR has improved recently, with payments being a major driver due to higher take rates from partnerships like Patterson. Payments revenue is growing faster than the overall business. Upsell products like call intelligence, bulk messaging, insurance verification, and forms are contributing significantly to quarterly revenue and NRR growth. Moving customers from stand-alone to integrated platforms enhances functionality and stickiness, leading to upsells.

Patterson Partnership Impact
Q: When will Patterson partnership impact the pipeline?
A: The impact is happening now; they've trained over 700 Patterson sales reps, leading to higher conversion rates and growing bookings. Weave sales on the Patterson platform have increased, and they expect momentum to continue. Adoption of Weave payments at the time of software sale through Patterson is higher than in their core business, which is very encouraging.

Specialty Medical Expansion
Q: What's driving momentum in Specialty Medical and plans for expansion?
A: Success is driven by building integrations, meeting pent-up demand to move from point solutions to integrated platforms. Specialty Medical is larger than dental, optometry, and veterinary markets combined. They currently have 4 core subverticals, potentially expanding to 8, focusing on integrating with predominant Practice Management Software (PMS) for good product-market fit. They see significant inbound interest from customers and PMS vendors, indicating a ripe market .

Price Adjustments and Monetization
Q: How are price adjustments handled; can you extract more price?
A: Price adjustments occur quarterly, usually upon customer renewal or product changes; they experiment with bundles. Customers tolerate price increases when value is delivered, especially with the New Weave platform. Payments help increase wallet share by integrating into customer workflows and improving office efficiencies. The New Weave platform is significantly better but is currently offered at no extra charge, presenting future monetization opportunities.

Practice Management Systems Integration
Q: Are PMS vendors more proactive in building integrations?
A: Yes, there's increased inbound interest from PMS vendors wanting to integrate with Weave. Previously, PMS vendors viewed Weave as a competitor, but now they approach Weave requesting integrations. Announcing new integrations at events generates significant attention, demonstrating strong demand.

Adoption of New Weave Platform
Q: What's the timeline for customers adopting the new platform?
A: They desire customers to move over soon to benefit from automatic updates and the best available solutions. There are no plans to force a change; they're encouraging adoption through marketing initiatives and pop-ups.