Weave Communications, Inc.

Good day and welcome to the Reeve Communications third quarter 2021 financial results and conference call. At this time, I would like to turn the conference over to Barry Hutton. Please go ahead.

Good afternoon, and thank you for joining us for the WEAVE third quarter 2021 earnings call. Joining me on the call today are Roy Banks, Chief Executive Officer, and Alan Taylor, Chief Financial Officer. Full details of our results and additional management commentary are available in our earnings release, which can be found on the Investor Relations website at investors.getweave.com. Please note that this call will be simultaneously webcast on the investor relations section of the company's corporate website. Before we start, I would like to remind you that the following discussion contains forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding WEAVE's future financial results and management expectations and plans for the business. These statements are neither promises nor guarantees and involve risk and uncertainties that may cause the actual results to differ materially from those discussed here. You should not place undue reliance on any forward-looking statements. Factors that could cause actual results to differ from the forward-looking statements can be found in our prospectus dated November 10, 2021, filed with the SEC on November 12, 2021, which is accessible on the FCC's website at www.scc.gov and also available on our website at investors.getweave.com, as may be supplemented in subsequent periodic reports we file with the FCC. Any forward-looking statements made in this conference call, including responses to your questions, are based on current expectations as of today. and we've assumed no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. The following discussion contains non-GAAP financial measures. For reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP metric, please see our earnings release, which is available on the IR section of our website at investors.getweave.com. Now, I turn the call over to Roy, Chief Executive Officer of Weave.

Thank you, Barry. Good afternoon, everyone, and thank you for joining us for our first earnings call as a public company. In Q3, our team delivered strong growth, and I'm very pleased to report that our third quarter revenue grew 42% year over year to $30.3 million. In addition to becoming a public company this year, just a mere 26 days ago, we also celebrated our 10-year corporate anniversary, which sees us now positioned as a leading publicly traded all-in-one customer communications and engagement software platform for small businesses. Alan will go into further detail on our strong financial performance shortly. Since this is our first earnings call as a public company, I'd like to provide a brief overview of our business and the core drivers of growth that enable us to deliver a much-needed small business commerce, communication, and engagement solutions. I will also walk through a few strategic initiatives and our vision for how we plan to execute this with additional proceeds we brought to the balance sheet by going public. More than 99% of U.S. businesses are small businesses, and they employ more than 61 million people. We estimate that our total current addressable market opportunity is approximately $11.1 billion in the U.S., and we believe the businesses represented by this market have been underserved by existing solutions. Small businesses are the lifeblood of our communities and our economy. It's a group of people we could not be more proud to serve. For too long, small businesses have had to suffer through a patchwork of point solutions to power their customer communications and interactions. These disparate, complex, and expensive tools to manage customer communications, engagement, and commerce result in inefficiency in the business and a disjointed experience for their patients, clients, and customers. And delivering a high-quality customer experience matters to small business. Take, for example, Riverfront Dental in Salem, Oregon. Before switching to our platform in August 2016, Riverfront Dental's sole receptionist would spend an hour a day calling scheduled patients to confirm their appointments. Patients in the office would often need to wait to be served while future patients were being confirmed, reducing the quality of the in-office customer experience. Riverfront Dental now uses our platform to manage scheduling, reviews, and payments. By allowing patients to confirm their appointments with a simple text, Riverfront Dental estimates that we've saved their staff over 25 hours a month, enabling them to provide better patient experience. Our mission is to create a world where small businesses just like Riverfront Dental can utilize state-of-the-art technology to transform how they communicate, attract, retain, and engage customers. grow their business, and realize their dreams. Our platform enables business owners to maximize the value of their customer interactions and minimize the time and effort spent on manual or mundane tasks. A small business that used to juggle six or seven software solutions to manage their customer interactions can now replace those separate tools with just one, Weave. Weave was founded in 2011 out of the desire to help one service-based small business, a dental practice, become more efficient through a smarter phone system. Since then, it has become a unique and powerful blend of proprietary integrated phone communication and engagement technology. We've added new features like messaging, marketing tools, digital forms, payments, reputation management, analytics, and scheduling to cohesively enable additional interactions across the customer journey. Weed brings together this powerful suite of tools and features into a single, unified platform to give both businesses and their customers more convenient, modernized, and personalized ways to interact with each other. Businesses no longer have to deal with the headaches of a point solution patchwork and can opt instead for a high-value, low-cost solution that helps businesses attract more customers, engage with them across many channels, and keep them coming back. Given the success we've enjoyed in the dental market and other early verticals, we've also selectively expanded into new vertical markets, such as optometry, specialty medical, veterinary, and most recently, vertical markets within the large home services industry, such as plumbing and HVAC. As we tackle new vertical markets, we also expand our product set to best serve each vertical, such as adding new features like vaccine reminders for veterinary practices. Our products and services are focused on how small businesses care for their customers, and I mean that as an acronym, communicate, attract, retain, and engage. Our product development is aligned with these core pillars, and as we expand our products and services, we intend to focus on each of these pillars along with the specific customer needs in each of our vertical markets. We have also made significant progress on our strategic priorities, As we approach new markets, we are increasingly aware of and adapting to conditions in our existing markets. In response to the consolidation trend of dental offices by dental service organizations during the pandemic, we have responded to the more complex small business needs like multi-office locations, widening our customer acquisition funnel, and positioning us for faster customer growth. Leveraging our vertical domino growth strategy, we have recently entered into the home services industry and have received positive customer feedback and early signs of success. Results from our first few months in home services have outperformed and even surpassed results for the same time period of any previous vertical we've entered, and we are optimistic home services will become another significant growth vertical market for Weave. In 2020, we launched our nascent payment processing solution to our customers. In the first 18 months, we have processed more than $700 million in payment volume through our platform, and we believe there is significant potential to increase our payment processing volume within our existing and future customers. In the third quarter, we announced integrations with both QuickBooks Online and Cycle. These integrations are key to supporting the home services and audiology vertical markets, respectively, demonstrating our ability to grow in both existing and new markets. We plan to continue executing this integrations playbook as a key part of our go-to-market and vertical market growth and expansion strategy. What might be most impressive about Weave is our resilience and our ability to innovate at critical times. COVID threw every business a curveball, regardless of size, location, or industry. Before this global pandemic, we used trade shows, events, and conferences as significant customer acquisition channels within our go-to-market strategy. As these channels came to a grinding halt, we needed to quickly pivot and adapt to alternative customer acquisition and market growth strategies. Due to our scrappiness, incredible product market fit, and ability to innovate world-class solutions, we shifted our lead generation activities to focus on inbound and outbound channels and found new ways to not only survive but to thrive. Everyone had to adapt to a changing environment, including our small business customers. And with solutions like curbside check-in, contactless payments, and digital forms, which we quickly brought to market, we helped thousands of small businesses around the country provide essential services exactly when and where they needed them. And as a long-term result, more and more small businesses are recognizing the need for digital transformation in the way they do business and interact with their customers, creating a greater need for a solution like Weave. As we have continued to grow rapidly, our platform and products have been incredibly sticky for our customers. We had an impressive dollar-based gross revenue retention rate of 93% at September 30, 2021, and a net revenue retention rate of 104%, which we believe demonstrates how effectively our platform addresses and solves our customers' commerce, communication, and engagement needs. As we look ahead, we're excited about what the future has in store for WEEDs. In particular, we look forward to the launch of new products within our all-in-one commerce communication and engagement platform to increase our penetration into new verticals like those within the home services sector and to increase our land and expand revenue opportunities within our customer base. Putting it all together, I am confident that we can achieve our long-term growth potential, especially given the opportunity to use the proceeds from our recent IPO to help accelerate growth. We've grown revenue 42% year over year. We're leading the charge to deliver enterprise-level technology to small businesses in a unified, modernized, and personalized all-in-one platform that helps our customers operate more efficiently while delivering a higher quality of patient and customer experience. While continued vertical market expansion is a key part of our growth strategy, we continue to remain committed and excited about the large customer growth opportunity within our existing vertical markets where we are penetrated no more than 10%. Our ability to accelerate and expand the growth of our payments business revenue is a particularly compelling opportunity. Along with our healthy dollar-based net retention rate, increased from the same period last year, we believe payments growth provides an opportunity to continue scaling the business while retaining high-quality customers and deepening their reliance on our all-in-one platform through new capabilities. I'd like to end by thanking the 900-plus Weave employees in the U.S. and India for their dedication and tireless efforts, and to our investors and our customers across the U.S. and Canada for their trust and partnership. We look forward to discussing all the progress with you in quarters ahead. With that, I will turn the call over to Alan to provide more color on our third quarter results.