Q3 2022 Weave Communications Inc Earnings Call

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5.1 million shares for the full year.

With that now we will be happy to take your questions.

Thank you if you would like to ask a question simply press the star key followed by the digit one on your telephone keypad.

So if you're using a speaker phone. Please make sure your meal function is turned off to allow your signal to reach our equipment.

Once again started one at this time, we'll pause for a moment.

And we will first hear from Parker leaned up Stifel.

Hi, This is Matthew kicker.

Thanks, a lot for taking my questions.

First off.

Seems like a place a lot of attention on Multilocation practices recently.

How's the traction been opportunities that outside of the dental Caroline C talks about and do you have a dedicated go to market team for those multilocation practices.

Yeah. Thanks for the question, so I'll I'll take the first part and follow.

Follow up Uhm. So yes, we have been seeing traction we've been spending a lot of time working on the product.

Some product enhancements today that that improve.

Improve our capabilities to make the product more attractive to multis. We are building that pipeline that has a longer sales cycle for sure.

Dividual locations.

And yes, we do have a dedicated team at the small team and they're they're building their pipeline now Alan.

Yeah, we were developing a new muscle with respect to really having a sale pipeline to monitor and to report on and that mid market team continues to flesh out that pipeline and these kinds of cells. As you can expect would behave a little bit more like emigrate sale, but reflect a wonderful opportunity for us to go after.

We continued.

Continue to evolve product and Nicos requirements and the most athletes space in service dsos than their counterparts near the market.

Okay, that's great to hear and then secondly, as part of your revamped to go to Mark in motion do you anticipate continue hiring throughout the remainder of year and then are you still focused on solely talent in Utah or you're expanding to remote salespeople.

<unk> as well.

So we will.

The good news there is that'd be attrition is slowing but more than anything we're going to be focused on the improvement in sales productivity.

When you see many more ramped sales.

Obviously as we've gone through the year, which is positive for us and that sales productivity is really going to be the focus of what we do there.

As far as locations, we were gonna be.

The focus on hiring where the talent is.

A lot of.

<unk> talent in Utah.

Certainly we won't limit ourselves if we can find great talent.

The location.

Okay. Thank you very much for taking my questions.

Against our one to ask a question or make a comment next we'll hear from Michael Hunk of a bank Bank of America.

Yeah fine thank you.

Questions. This evening.

You mentioned, a few times about the flywheel effect start for revenue and grow with that have a sales cycle sorry the.

Productivity.

Has increased also mentioned the negative effects from forums.

So how should we think about the sales cycle first at factory does ramp.

And then the sequencing of revenue growth next couple of quarters has that productivity improves.

You bring those forums back in house.

The forums.

We already have the form product in place.

We were growing and developing that product as we were still working with a partner.

As I mentioned it became.

Sorry for us to.

Do that a little more quickly given the developments in the third quarter. So we've done that we were in a very low margin situation with the prior forms so even though the red top line implications are a little.

More significant bottom line actually the <unk>.

Margin improvement in our in house forums is going to be very good press for a margin perspective, it will take us a little while to replace the <unk>. The top line revenue, we anticipate that taking a longer than six months, but it won't take long at all to replace the bottom line.

And then on kind of just overall revenue trajectory. So we've given you a Q4.

We're in the process of finalizing our annual operating premium for plan for 2023.

Analyze that get it through the board for approval and then we'll be sharing our outlook for for next year and our next earnings call.

Got it.

One more if I if I could.

I appreciate the commentary.

Okay industry conference days, and <unk>, maybe even just qualitatively or comparison wise.

Are we now with with gross suggestions as those <unk>.

Events ramp up in productivity increases as well relative to where you were saying.

A year ago, you've been 24 months ago.

So I I would respond.

It's very encouraging to have that are best month in September that we've had so dynamic hit.

There.

<unk> and seeing people would come back.

At pre pandemic attendance levels, but even so it becomes a productive way for us to sell.

<unk> deals at the show as well as come back with an Armful of leaves that can be work from the home office that'd be one other thing that we believe these events do.

He has a halo effects of marketing.

Those that attend these events see the energy around to reboot, they're able to view the we product.

And that presents an opportunity for them to become exposed and.

[noise] Susie Astrogate at least positive about the <unk>.

Products, so that when they are called or contacted later, we have a higher probability of success.

Right is that thank you for the questions I appreciate it.

Against Darwin to ask a question I'll make a comment will paused for a moment.

Alex Claire of Raymond James has our next question.

Hi, This is Jonathan on for Alex Thanks for taking the question it'll just be one from us.

We don't get the location count any longer but can you talk about <unk> subscription revenue for relocation is trained it you have a lot of new.

Product development, including you and all that.

<unk> online scheduling so it just kind of curious if these are contributing to increasing price points or more of a future growth opportunity there. Thanks.

So thank you for the question we have been very stable on training slightly up on M. R. R. We do have products in the queue that obviously, we are an enthusiastic about improving that but so far we've seen at table.

Annual contract values or.

Revenue amounts for our customers. So that's that's a positive sign for us despite economic conditions were facing.

Was there anything else color.

Yeah. Thank you.

Fox Chapel as a loop capital has her next question.

Hi, Thank you for taking my question Alan starting with you I was wondering if you just talk about what you saw with respect to our customer churn in the quarter was it within the normal range.

It was we track that obviously very closely you can see from our gross revenue retention rate they remained at 94%.

That's a positive results. So we're not from our customers turn standpoint, we're not saying anything out of the ordinary it's been consistent through the course of this year.

And so that we're very pleased about that.

The other thing.

Let me just add one thing.

Often when folks think about S. M b, they think about <unk>.

<unk> customer base, our customer base is incredibly resilient. These are.

Individuals who basically dedicated their lives to their crap they've gone to school. They built businesses. They don't really have another option to go do something else. So uhm business turnover business churn is very low and I can tell you for an S. M. B company. Our churn are gross retention is very very good and our churn.

Very well.

Great. Thanks, and then I was wondering if you just give us a few more details on what you're saying with respect to.

Customer responses like in the macro environment.

Think last quarter.

Noted that maybe it's a sales cycles were starting to extend a little bit what are you seeing this quarter.

Yeah, So I'm happy to share what we what we are seeing it's actually pretty interesting. So.

We're seeing uhm, so historically may be the opposite administrator would make the purchase decision and.

And now maybe the Doctor is getting involved getting maybe involved maybe if there's a couple of doctors in the practice, they're both getting involved so like we mentioned in our.

Last earnings call sales cycles appear to have a long dated a bit.

But not it's not dramatic.

The the other thing we're seeing as Alan mentioned is.

Pretty steady gross retention I think all.

All customers S. M. B business owners are all looking to insure that they are getting value for their spin.

And you know the we product is holding up quite well against that review.

And so that's one of the things we're just super focused on is making sure that our customers are happy they are getting value for our product and that we're continuing to release new features of new functionality to deliver even more products more value.

And the products that they have so.

The other interesting thing is on the news sale.

The price point is holding up very very well.

And so that's another encouraging.

<unk>.

Great. Thank you.

And then there's a final reminder, star one to ask a question I'll make a comment will pass for a moment.

It appears there are no further questions. At this time also that does conclude today's conference.

May now disconnect.

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