Weave Communications, Inc. reported a revenue of $55.8 million for the first quarter of 2025, marking an 18% increase from $47.2 million in the same period of the previous year. The company’s gross profit also rose to $39.9 million, up from $33.0 million, resulting in a gross margin of 72%, compared to 70% in the prior year. However, Weave recorded a net loss of $8.8 million, widening from a loss of $7.2 million in the first quarter of 2024. The loss per share increased to $0.12 from $0.10 year-over-year, reflecting ongoing investments in growth and operational expansion.
The company experienced notable changes in its operational metrics, with a significant increase in sales and marketing expenses, which rose by 20% to $23.5 million, driven by higher personnel costs and increased demand generation efforts. Research and development expenses also increased by 16% to $11.2 million, reflecting Weave's commitment to enhancing its platform and product offerings. General and administrative expenses surged by 23% to $14.6 million, largely due to increased personnel costs and professional services related to the pending acquisition of TrueLark, an AI-powered receptionist platform, for $35 million, which was announced on May 4, 2025.
Weave's customer base continues to grow, with the company reporting a dollar-based net retention rate of 98% for the quarter, up from 96% a year earlier. The company attributed its revenue growth primarily to new customer acquisitions, which accounted for approximately 88% of the revenue increase. The total number of shares outstanding as of March 31, 2025, was 75,181,804, reflecting ongoing stock option exercises and employee stock purchase plan activities.
Looking ahead, Weave anticipates continued growth driven by its enhanced platform, which includes new features and AI capabilities aimed at improving customer engagement and operational efficiency. The company plans to focus on expanding its market presence in the healthcare sector while also exploring opportunities in new verticals. However, Weave acknowledges the challenges posed by economic uncertainties and competitive pressures, which may impact its ability to sustain growth and profitability in the future. The company remains committed to investing in its technology and customer support to enhance its service offerings and maintain its competitive edge.
About Weave Communications, Inc.
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