Weave Communications, Inc.

Greetings and welcome to Weave Communications second quarter 2025 financial results and conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If you'd like to get into the queue at that time, please press star 1 on your telephone keypad. That will access you into the queue. If anyone should require operator assistance during the conference, please press star 0. on your telephone PBAT. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Mark McReynolds, Head of Investor Relations. Thank you. You may begin.

Mark McReynolds Thank you, Rob. Good afternoon, and welcome to WEA's second 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 assumptions made as of today's date and are subject to various risks and uncertainties 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 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. which exclude one-time acquisition-related costs, amortization of acquired intangible assets, and stock-based compensation. A reconciliation to comparable gap 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 the earnings presentation on our investor relations website at investors.getweave.com. And with that, I will turn the call over to Brett.

Thank you, Mark, and thank you to everyone joining us today. We've delivered an AI-powered patient interaction platform tailored to the needs of small and medium-sized healthcare practices. Our solution unifies communication, scheduling, payments, practice insights, and more to one seamless platform. We help our customers grow their businesses, keep schedules full, accelerate collections, and deliver exceptional patient care. As SMB healthcare practices look to modernize, we've improved operational efficiency by automating workflows, freeing up office teams to build stronger relationships with their patients and clients. I'd like to highlight a few key financial results from a very strong Q2. We delivered revenue of $58.5 million, representing 15.6% year-over-year growth and marking our 14th consecutive quarter of exceeding the top end of our revenue guidance. We had another record sales quarter and an acceleration in sequential revenue added, even excluding the impact of TrueLark. Payments revenue continues its rapid growth, Gross margin rose to 72.3 percent, an improvement from Q1, and we also exceeded the top end of our guidance range for operating income. We delivered strong cash flow performance in the quarter, generating $4.5 million in free cash flow. This continued improvement reflects our disciplined execution and underscores the efficiency and scalability of our business. As we speak with customers across the verticals we serve, we consistently hear a common set of priorities. First, profitable growth. Ninety-six percent of SMB healthcare practices report a growing patient base. They are challenged to keep up with the demand for services while maintaining margins, especially in a market with labor constraints, inflationary pressure, and shifting payer-provider dynamics. Operational efficiency is no longer a back office concern. It's a growth lever. Standardizing recall and appointment reminder workflows reduces administrative burden and streamlines patient communications to keep schedules full. For example, in its first year in business, a single practitioner optometry office generated $70,000 in additional booked appointments using Weave's recall reminders. Next, Patients increasingly expect consistent digital-first interactions, and the majority of practices say technology is critical to developing great experiences. From personalized phone greetings to 24-7 online scheduling, practices that embrace technology are better positioned to stand out in competitive local markets. For instance, Sixty locations and a large dental service organization used WEA's missed call text feature to generate $1.5 million in revenue in a single quarter, scheduling over 7,200 appointments from missed calls. Another key priority for SMB healthcare practices is accelerating revenue cycles to strengthen financial health by reducing receivables days outstanding, increasing collections, and automating billings. As an example, a single-location dental practice collected $100,000 in outstanding balances in under a year using Weave's text-to-pay. Finally, McKinsey Research reports that AI has the potential to automate up to 45% of administrative tasks in healthcare. That's not just cost reduction. It's capacity creation. 80% of practices that reported fast growth say new office technology was a contributing factor, and over 60% reported that current technologies make hiring easier. These strategic imperatives are shaping the future of healthcare delivery, and every technology investment must directly support these priorities. That's where Weave comes in. In May, we acquired Trular, an AI-powered workflow automation platform that enables 24-7 online scheduling, missed call response, and marketing lead conversions. This acquisition marks a major step in bringing intelligent automation to the workflows that matter most to small and medium-sized healthcare practices. Trulark helps practices boost revenue, keep schedules full, and reduce front office burden. For one customer, Trulark handles over 15,000 conversations monthly across 60 locations. We're rapidly integrating Trulark and Weave across go-to-market and product teams to bring this automation to our customers and prospects. Joint selling to mid-market dental groups is already underway, and we're progressing towards offering Trulark as an add-on within Unified Weave Inbox. By unifying these AI capabilities into a single experience, Weave is positioning itself as the go-to platform for simplifying operations and increasing impact across key healthcare verticals. We are transforming everyday operations, making it possible for practices to deliver better care and service without additional strain on their teams. This foundation of intelligent, automated workflows sets the stage for our next chapter of growth. Building on this momentum, we're seeing clear signals of strength across our strategic growth vectors that we laid out for you in our February earnings call. Just one year ago, we announced that specialty medical was our third largest and fastest growing vertical. Today, it is our second largest by customer count. With under 1% share of the total specialty market, the opportunity ahead remains enormous. Q2 marked a record quarter for our medical vertical, driven by strong growth in medical aesthetics, primary care, and physical therapy. Organic demand and average revenue per location continue to improve as we launch more authorized integrations with electronic medical record systems. Our authorized integrations with Veridigm, Practice Fusion, and Prompt are off to a very strong start just five months post-launch. We also recently launched authorized integrations with Ortho2Edge, a leading orthodontic practice management system, and Idex Neo, a widely adopted cloud-based platform for veterinary clinics. These integrations address key patient engagement challenges for practices in both verticals and expand our reach to thousands of new locations. On the mid-market front, momentum is building with a growing and increasingly diverse pipeline. We have seen strong traction in veterinary and specialty services, including two multi-site physical therapy management service organizations signed in Q2, representing over 70 clinic locations combined. Everything we do at Weave is centered around helping healthcare practices grow and thrive, and our customers continue to take notice. In G2's summer 2025 report, we've ranked first in 34 categories and remain the top-rated platform in the grid for patient relationship management. G2 rankings are driven by real customer reviews and reflect the trust practices placed in Weave to power meaningful patient connections, streamline operations, and grow their businesses. Before I turn the call over to Jason, I'm excited to announce that Abhi Sharma is being promoted to Chief Technology Officer. Abhi was originally hired as our SVP of technology and in his short time at Weave has exceeded expectations demonstrating strategic vision and operational excellence. He is the clear choice to lead our technology organization. This promotion reflects our planned succession strategy and ensures strong forward-looking leadership as we accelerate innovation, scale our platform, and deliver greater value to our customers. Finally, I want to thank our customers, partners, team, and shareholders for your continued trust and support. We are very encouraged by strong momentum across the business, especially in the significant growth in medical and the AI-powered solutions we're bringing to market where there is vast opportunity ahead. I'll now turn the call over to Jason for the financial update.