Crosslink Capital Inc., a significant shareholder in Weave Communications, Inc. (NYSE:WEAV), has sold 125,000 shares of the company, according to a recent SEC filing. The shares were sold at an average price of $13.99, amounting to a total transaction value of approximately $1.75 million. The sale, which took place on November 6, 2024, leaves Crosslink with about 7.9 million shares of Weave Communications following the transaction.
In addition to this sale, the filing reported a prior distribution of 75,733 shares to its members without additional consideration. This transaction, however, did not involve any monetary exchange. The shares are held indirectly by funds advised by Crosslink and its related entities, including Crosslink Capital Management, LLC, and are managed for the benefit of their investors.
In other recent news, Weave, the renowned provider of communication and payment solutions for healthcare practices, disclosed strong Q3 results, emphasizing a year-over-year revenue increase to $52.4 million. This figure surpassed the projected guidance by $1.2 million and marked the company’s first positive non-GAAP operating income of $1.4 million. The company’s growth trajectory has been bolstered by its advanced platform features, strategic partnerships, and increased market presence.
Weave’s Q3 earnings call also highlighted an improvement in gross margin to 72.5%, continuing an 11-quarter streak of growth. The company’s net revenue retention rate increased to 98%, indicating improved customer loyalty. In addition, Weave’s operating expenses as a percentage of revenue decreased, demonstrating improved operational efficiency.
The company has also raised its 2024 revenue guidance to between $202.7 million and $203.7 million and expects to maintain its positive non-GAAP operating income. Looking ahead, Weave anticipates Q4 2024 revenue to be within the range of $52.6 million to $53.6 million and aims for long-term gross margins between 75% and 80%.
These recent developments emphasize Weave’s strategic partnerships, such as those with Affordable Care and Patterson, which are expected to drive further growth. The company’s focus on integrating with leading practice management systems is seen as a significant growth opportunity.
InvestingPro Insights
While Crosslink Capital Inc. has reduced its stake in Weave Communications, Inc. (NYSE:WEAV), recent data from InvestingPro suggests that the company’s stock has been performing well. The stock has seen a strong return over the last three months, with a 41.13% price total return. This upward trend extends to a 67.46% return over the past year, indicating sustained investor interest despite the recent insider sale.
Weave’s financial metrics paint a mixed picture. The company’s revenue for the last twelve months as of Q3 2023 stood at $195.84 million, with a notable revenue growth of 20.54%. However, Weave is not currently profitable, with an adjusted operating income of -$32.03 million for the same period. This aligns with an InvestingPro Tip noting that the company has not been profitable over the last twelve months.
Another InvestingPro Tip highlights that 6 analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism about Weave’s future performance. This could be particularly relevant in light of the recent insider sale, as it may indicate that despite the sale, there’s still confidence in the company’s prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 11 more tips available for Weave Communications. These tips could provide valuable context for understanding the company’s position and potential future performance.
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