Weave Communications, Inc.

Greetings and welcome to the WEAVE first quarter 2024 financial results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mark McReynolds, head of investor relations. Thank you, Mark. You may begin.

Thank you, Paul. Good afternoon and welcome to WEAVE's first quarter 2024 earnings call. With me on today's call is our Brett White, CEO, and Alan Taylor, CFO. During the course of this conference call, we will make forward-looking statements regarding the anticipated performance of our business. These forward-looking statements are based on management's current views and expectations and tell certain assumptions made as of today's date and are subject to various risks and uncertainties described in our SEC filings. We've disclosed any obligation to update or revise any forward-looking statements. Further, on today's call, we will also discuss non-GAAP metrics that we believe aid in the understanding of our financial results. Unless otherwise noted, all numbers that we talk about today will be on a non-GAAP basis. Reconciliation to comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the Form 8K furnished with the SEC before this call. as well as in the earnings presentation on our investor relations website at investors.getweave.com. And with that, I'll turn the call over to Brett.

Thanks, Mark. And thank you to everyone for joining us today. I'm pleased to report that we had another terrific quarter, providing a strong start to the year. At Weave, our aim is to deliver a better healthcare experience. Every patient, every practice, every interaction. We specialize in an integrated customer experience and payments platform built specifically for small and medium-sized healthcare practices. We empower practitioners to prioritize patient care while we streamline office operations, handle payments processing, and deliver practice growth for improved patient communication and engagement. SMBs are a cornerstone of the U.S. business landscape. For the past 15 years, we've dedicated ourselves to developing a solution finely tuned to the unique requirements of SMB healthcare practitioners. Unlike larger healthcare institutions, dental clinics, veterinary hospitals, optometry, and medical practices operate without dedicated IT teams, relying instead on a user-friendly software solution like Weave. Our platform streamlines disparate point solutions often utilized by these practitioners, making it easier to attract, engage, and retain patients. I'm excited to share some of the financial highlights from Q1. We've started the year with solid top-line performance, significant improvements in gross and operating margin, and adjusted EBITDA. Revenue for Q1 was $47.2 million, representing a 19.2% year-over-year growth and a million dollars above the high end of the range we provided in February. This is our ninth consecutive quarter of exceeding the top end of our revenue guidance. When we went public, our gross margin was approximately 57%, and we set crossing the 70% mark as an important goal and milestone for our business. We are proud to report that in Q1, gross margin reached 70.4%, 280 basis points greater than Q1 last year, marking the ninth consecutive quarter of gross margin improvement. Additionally, our adjusted EBITDA margin is getting very close to breakeven, improving by over 700 basis points from last year to a negative 0.8 of revenue, compared to a negative 7.9% of revenue a year ago. These results underscore the market's demand for our vertically tailored software and payments platform and our continued efforts to improve efficiency. In our February call, I shared our business focus areas for 2024, and I'd like to highlight some of our progress in the first quarter. Accelerating revenue growth is a top priority, with an emphasis on expanding our presence in dental, optometry, and veterinary verticals, and growing in specialty medical markets, We are pleased with the growth that we saw across all of these verticals in Q1, with specialty medical being our fastest growing segment. Partnerships are a vital contributor to growth across our target verticals. Authorized and certified integrations with partner practice management systems and other healthcare systems of record serve to both increase our addressable market and enhance our product market fit by automating and personalizing communications, which boosts practice growth and efficiency. We aim to become our partner's top choice for patient engagement and communication, allowing Weave to enrich the patient experience and improve data synchronization. Our customers count on Weave to run their business operations and authorized integrations increase the reliability of their experience. We made great progress in both new and deepening integration partnerships, and I'd like to highlight a few. In March, we delivered our initial integration with Athena Health, a leading provider of cloud-based healthcare software for 160,000 physicians serving over 110 million patients. We also signed an integration partnership with IDEX, an industry leader that serves as the system of record for over 20% of the veterinary market. Scoping and development has commenced on our integration with two of their brands, EasyVet and Neo, whose veterinary software solutions service more than 8,000 veterinary hospitals. In addition to developing new integrations, we are successfully pursuing deeper product integrations and go-to-market programs with existing partners. We have renewed and enhanced our partnership with Dr. Crono, a leading electronic health record provider serving tens of thousands of physicians and over 17 million patients. We are deepening our existing integration and working closely to inform their large customer base of these enhancements. We also deepened our partnership with Patterson Veterinary, maker of Navator and IntraVet practice information management systems that service over 3,000 veterinary hospitals. This partnership includes a commercial agreement enabling the Patterson sales team to recommend Weave as a preferred solution for client communication and engagement for animal hospitals and clinics. Lastly, we signed a product integration and commercial partnership with Prompt EMR, a leading electronic medical record provider for outpatient therapy clinics, serving over 8,000 physical, occupational, and speech therapists. Our customers' experience is the keystone to retention, and Weave has consistently been awarded accolades affirming our platform's industry-leading performance. Weave was once again recognized by G2 in their spring 2024 report, reflecting our unwavering dedication to customer service. Weave has also been named a top 50 software product for small business for 2024 and is the leader in the G2 grid for patient relationship management. Moreover, we are honored to be recognized for our dedication to building an excellent workplace environment for our employees. For the third consecutive year, we've received a Top Workplaces USA award. We've also been named to the 2024 Shatter List by the Women Tech Council. This important recognition acknowledges our commitment to our people and our future. In closing, I'm immensely proud of what we have accomplished in Q1, making a strong start to the year. We continue to grow our top line and hit a significant milestone by crossing the 70% gross margin mark. This success is a testament to our dedication to providing innovative solutions that effectively address our customers' needs. I'd like to extend a big thank you to our customers, partners, team members, and shareholders for their continued support of WEAVE. With that, I'll turn the call over to Alan to provide more detailed financial results and review our outlook. Alan?