Weave Communications, Inc.

Ladies and gentlemen, greetings and welcome to the WEAVE first quarter 2025 financial results. 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 and zero on the 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. Please go ahead.

Thank you, Zico. Good afternoon and welcome to Weave's first quarter 2025 earnings call. With me on today's call are Brett White, CEO, and Jason Christensen, 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 as described in our SEC filings. We've disclaimed any obligation to update or revise any forward-looking statements. Further, on today's call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. Unless otherwise noted, all numbers we talk about today will be on a non-GAAP basis. A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website and in an exhibit to the Form 8K furnished with the SEC before this call, as well as the earning presentation on our investor relations website at investors.getweave.com. And with that, I'll now turn the call over to Brett.

Thank you, Mark, and thank you to everyone joining us today. Before I get to our Q1 financial and business highlights, I'm excited to share that we have signed a definitive agreement to acquire Trulark, an agentic AI-powered receptionist and front desk automation platform. Together, we will unlock a future of intelligent, autonomous workflows that reshape how healthcare practices operate, drive growth, connect with patients, and thrive. Before diving into more detail about Trulark, I'd like to briefly introduce Weave to those of you who may be new to our story. Weave is a patient engagement and payments platform built for small and medium-sized healthcare practices. Our customers are skilled medical professionals, experts in healthcare, not business. Yet to succeed, they must attract new patients and sustain growth in increasingly competitive markets. Retain the patients they already have with effective communication and improved in-office interaction. create a workplace that attracts and retains talent amid staffing shortages, and oversee operations and the financial health of their business. Practices are often left managing a fragmented mix of tools with limited IT resources, making it hard to streamline operations or scale effectively. This technology sprawl creates friction, slows growth, and pulls focus away from what matters most, caring for their patients. Weave unifies communication, scheduling, payments, and reviews into a single, easy-to-use platform. Built to scale from single-location practices to large multi-location groups, Weave offers centralized management, robust analytics, and authorized integrations with over 85 practice management systems. Our proprietary VoIP platform lets teams communicate from anywhere with the practice's trusted phone number. We've also embedded payment requests into communication workflows, which accelerates cash collections and improves treatment plan acceptance with flexible payment options. We are focused on dental, optometry, veterinary, and specialty medical practices, which is a high-value segment of the SMB market. The addition of Trulark expands our addressable market to over $10 billion in the U.S. alone. SMB healthcare practices face rapidly evolving demands, from rising patient volumes to growing expectations for fast, seamless digital experiences. In this environment, workflow automation is essential. Successful practices will adopt technologies built for modern care. Those technologies will enable 24-7 appointment booking and automated administrative tasks to free up time for staff and providers. This feature centers patient care on meaningful interactions with routine operations running smoothly in the background. TrueLARC is a virtual receptionist that enables fully autonomous patient engagement. It responds to missed calls, manages real-time scheduling, and answers common questions via text and web chat 24-7. TrueLARC provides an automated solution to boost lead conversion when calls are missed, even after office hours. The result is fuller schedules, round-the-clock patient engagement, improved case acceptance, and less time spent on the phone, which drives greater practice profitability. The acquisition of TrueLark will unite two companies with a shared mission, helping SMB healthcare providers run more efficient practices while delivering exceptional patient care. Our journey with TrueLark began as a partnership. and the opportunity for something greater became clear as we worked closely together. We were immediately impressed by their leadership and the passion that their customers, including those shared with Weave, have for their platform. What drove our interest and ultimately the acquisition is the meaningful progress that they have made with appointment-based single and multi-location SMBs over the last four years. Trulark delivers measurable economic value to its customers particularly in multi-location dental and med spa segments, where it has already achieved strong product market fit. We are acquiring Trulark because of the strategic fit in our product roadmap with the complementary aspects of our business. I'd like to highlight some key points of the acquisition thesis. First, while we've helped staff work more efficiently, Trulark fully automates routine tasks around the clock without human intervention. Trulark shifts front desk focus from administrative tasks to higher impact patient-centered engagement. Second, Trulark unlocks additional multi-location product functionality and expands our mid-market customer base. Third, we're gaining a team of AI experts with deep SMB healthcare experience. The acquisition will immediately accelerate our product roadmap and increase our pace of innovation, keeping us ahead of market needs. Trulark also presents a compelling cross-sell opportunity within Weave's existing customer base. Their technology is extensible to all verticals we serve and scales effectively across customers of all sizes. With the strength of our go-to-market engine, we see significant upside in expanding Trulark's reach across our business. Ultimately, this is a strategic acquisition that enhances our platform, accelerates our roadmaps, expands our market opportunity, and strengthens our ability to win. In addition to the experienced leadership joining Weave from Trulark, we're also thrilled to welcome Abhi Sharma as our new Senior Vice President of Engineering. Abhi brings deep expertise in building and scaling high-performing engineering teams and delivering AI-driven innovation. His career includes leadership roles at Salesforce, Oracle, Amazon, and Microsoft, And most recently, he led R&D for Twilio's $4 billion communications business, scaling infrastructure to support hundreds of billions of messages annually while pioneering AI-powered omni-channel experiences. Under his leadership, we are accelerating our vision to deliver an intelligent, automated platform purpose-built for the future of healthcare. Next, I'd like to share an update on our quarterly performance and the momentum we see across the business. We delivered a strong start to the year and continue to make meaningful progress across our key growth factors. We had strong demand in specialty medical, continued progress in mid-market, and solid performance in our payments business. Q1 revenue grew 18% year-over-year, marking the 13th consecutive quarter of exceeding our guidance. Our gross margin came in just above 72%. 170 basis point improvement year over year, reflecting strong underlying unit economics and operational efficiency. We had a record quarter for sales across our medical segment, driven by especially strong performance in med spa and plastic surgery with continued momentum in primary care and physical therapy. Our reach and product value continue to expand through authorized integrations with key medical systems of record. In Q1, we launched three new integrations, PROMPT, Practice Fusion and Veridigm, which increased our integrated market by approximately 60,000 locations. We've already seen an increase in new sales to practices using these platforms, with new deals and upgrades from prompt customers in Q1 outpacing all of full-year 2024 combined. Our previously announced integrations in Specially Medical are playing a meaningful role in accelerating our expansion across Specially Medical verticals. Finally, we've continued to be recognized for our commitment to delivering exceptional customer experiences and the strong performance of both our team and our platform. We've ranked in the top 50 on G2's 2025 Best Software Awards. In G2's Spring 2025 report, we've ranked first in 33 categories and was again named Leader in the Grid for Patient Relationship Management. In closing, I'm extremely proud of what the Weave team accomplished this quarter, another quarter of solid growth driven by focused execution and innovation. As more customers look to streamline their front office workflows and deepen patient engagement, Weave is delivering real measurable value. I also want to warmly welcome the Trulark team to Weave. As I reflect on our momentum, I'm more energized than ever about the road ahead and confident in our ability to continue to scale. Thank you to our customers, partners, team, and shareholders for your continued trust and support. With that, I'll turn it over to Jason.