Q2 2024 Weave Communications Inc Earnings Call

Speaker Change: Thanks for watching!

Operator: Greetings and welcome to the Weave second quarter 2024 financial results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your 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. Thank you. You may begin.

Operator: Greetings and welcome to the Weave second quarter 2024 financial results conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

Speaker Change: Greetings and welcome to the Weave Second Quarter 2024 Financial Results Conference Call.

Speaker Change: At this time, all participants are in a listen-only mode.

Speaker Change: A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad.

Operator: Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

Mark McReynolds: It is now my pleasure to introduce your host, Mark McReynolds, Head of Investor Relations. Thank you, you may begin.

Speaker Change: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mark McReynolds, Head of Investor Relations. Thank you. You may begin.

Mark McReynolds: Thank you, Sachi.

Mark McReynolds: Thank you, Saatchi. Good afternoon, and welcome to Weave's second quarter 2024 earnings call. With me on today's call are Brett White, CEO, and Alan Taylor, 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, involve certain assumptions made as of today's date, and are subject to various risks and uncertainties described in our SEC filings. We have disclaimed any obligation to update or revise any forward-looking statement.

Mark McReynolds: Good afternoon and welcome to Weave second quarter 2024 earnings call. With me on today's call are Brett White, CEO, and Alan Taylor, CFO.

Mark McReynolds: Thank you, Saatchi. Good afternoon, and welcome to Weave's second quarter 2024 earnings call.

Mark McReynolds: With me on today's call are Brett White, CEO , and Alan Taylor, CFO .

Brett White: 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 until certain assumptions made out 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.

Speaker Change: During the course of this conference call, we will make forward-looking statements regarding the anticipated performance of our business.

Speaker Change: These forward-looking statements are based on management's current views and expectations, entail certain assumptions made as of today's date, and are subject to various risks and uncertainties described in our SEC filings.

Speaker Change: Weave disclaims any obligation to update or revise any forward-looking statements.

Brett White: 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.

Brett T. White: 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. 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 8-K furnished with the SEC before this, as well as the earnings presentation on our investor relations website at investors.getweave.com.

Speaker Change: Further, on today's call we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results.

Speaker Change: Unless otherwise noted, all numbers we talk about today will be on a non-GAP basis.

Brett White: A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website and Anderson Exhibit to the form 10 to the, as well as the earnings presentation on our investor relations website at investors.getweave.com.

Speaker Change: 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.

Speaker Change: as well as the earnings presentation on our investor relations website at investors.getweave.com.

Brett White: And with that, I will now turn the call over to Brett. Thank you, Mark, and thank you to everyone for your participation today. I'd like to start today's call with financial highlights from Q2. I'm thrilled to share that we had an outstanding quarter, continuing our track record of improving financial performance and setting the stage for a strong second half of the year. We delivered another quarter of solid top-line performance, significant gross and operating margin improvements, and for the first time in our company's history, Pazid adjusted even down. Revenue for Q2 was $50.6 million, representing 21.4% euro year-over-year growth, compared to 19.2% growth last quarter, and $1.4 million above the high end of the range that we provided in May.

Brett T. White: And with that, I will now turn the call over to Brett. Thank you, Mark. And thank you to everyone for your participation today. I'd like to start today's call with financial highlights from Q2. I'm thrilled to share that we had an outstanding quarter, continuing our track record of improving financial performance and setting the stage for a strong second half of the year. We delivered another quarter of solid top-line performance, significant gross and operating margin improvements, and, for the first time in our company's history, positive adjusted EBITDA.

Speaker Change: And with that, I will now turn the call over to Brett.

Brett T. White: Thank you, Mark.

Brett T. White: And thank you to everyone for your participation today.

Brett T. White: I'd like to start today's call with financial highlights from Q2. I'm thrilled to share that we had an outstanding quarter, continuing our track record of improving financial performance and setting the stage for a strong second half of the year.

Brett T. White: We delivered another quarter of solid top-line performance, significant gross and operating margin improvements, and for the first time in our company's history, positive adjusted EBITDA.

Brett T. White: Revenue for Q2 was $50.6 million, representing 21.4% year-over-year growth compared to 19.2% growth last quarter and $1.4 million above the high end of the range that we provided in May. Gross margin reached 71.9%, 400 basis points greater than Q2 of last year, marking our 10th consecutive quarter of gross margin improvement.

Brett T. White: Revenue for Q2 was $50.6 million, representing 21.4% year-over-year growth compared to 19.2% growth last quarter and $1.4 million above the high end of the range that we provided in May.

Brett White: Gross margin reached 71.9%, 400 basis points greater than Q2 last year, marking our 10th consecutive quarter of gross margin improvement. Additionally, our adjusted even down margin improved by over 700 basis points from last year. These results highlight the continued strong demand for our software and payments plan for platform and our ongoing commitment to business efficiency. Our mission is to enhance healthcare experiences for every practice, patient, and interaction. We have created a comprehensive customer experience software and payments platform tailored to small and medium-sized healthcare practices. Our solution empowers healthcare providers to focus on patient care, while we optimize office operations, manage payment processing, and drive practice growth for enhanced patient communication and engagement.

Brett T. White: Gross margin reached 71.9%, 400 basis points greater than Q2 of last year, marking our 10th consecutive quarter of gross margin improvement.

Brett T. White: Additionally, our adjusted EBITDA margin improved by over 700 basis points from last year. These results highlight the continued strong demand for our software and payments plan for platform and our ongoing commitment to business efficiency. Our mission is to enhance health care experiences for every practice, patient, and interaction. We have created a comprehensive customer experience software and payments platform tailored to small and medium-sized health care practices. Our solution empowers healthcare providers to focus on patient care while we optimize office operations, manage payment processing, and drive practice growth through enhanced patient communication and engagement. For over 15 years, we've delivered solutions that meet the unique needs of SMB healthcare providers. These providers often lack dedicated IT teams and depend on software like Weave.

Brett T. White: Additionally, our adjusted EBITDA margin improved by over 700 basis points from last year.

Brett T. White: These results highlight the continued strong demand for our software and payments platform and our ongoing commitment to business efficiency.

Speaker Change: Our mission is to enhance healthcare experiences for every practice, patient, and interaction.

Speaker Change: We have created a comprehensive customer experience software and payments platform tailored to small and medium-sized healthcare practices.

Speaker Change: Our solution empowers healthcare providers to focus on patient care while we optimize office operations, manage payment processing, and drive practice growth through enhanced patient communication and engagement.

Brett White: For over 15 years, we have delivered solutions that meet the unique needs of SMB health care providers. These providers often lack dedicated IT teams and depend on intuitive software like Weave. Our platform integrates with these practices' system of record and simplifies attracting, engaging, and retaining patients. Our total addressable market in the US exceeds $7 billion, including specialty medical, our third largest and fastest growing vertical market, where growth rates accelerated again in Q2. In addition to new customer growth, we have the substantial opportunities to increase our share of wallet within our current customer base. First, we are enhancing our payments platform by embedding digital collections processes in the communication workflows, including text-to-pay and online payments, all using the trusted practice telephone number.

Speaker Change: For over 15 years we have delivered solutions that meet the unique needs of SMB health care providers.

Speaker Change: These providers often lack dedicated IT teams and depend on intuitive software like Weave.

Brett T. White: Our platform integrates with these practices' systems of record and simplifies attracting, engaging, and retaining patients. Our total addressable market in the U.S. exceeds $7 billion, including specialty medical, our third largest and fastest growing vertical market, where growth rates accelerated again in Q2. In addition to new customer growth, we have substantial opportunities to increase our share of wallet within our current customer base. First, we are enhancing our payments platform by embedding digital collections processes into communication workflows, including text-to-pay and online payments, all using the Trusted Practice telephone number. 65% of patients say they would be more likely to choose a health care provider if they were offered flexible ways to pay for services.

Speaker Change: Our platform integrates with these practices' system of record and simplifies attracting, engaging, and retaining patients.

Speaker Change: Our total addressable market in the U.S. exceeds $7 billion, including specialty medical, our third largest and fastest growing vertical market, where growth rates accelerated again in Q2.

Speaker Change: In addition to new customer growth, we have substantial opportunities to increase our share of wallet within our current customer base.

Speaker Change: First, we are enhancing our payments platform by embedding digital collections processes into communication workflows, including text-to-pay and online payments, all using the Trusted Practice telephone number.

Brett White: 65% of patients say they would be more likely to choose a health care provider if offered flexible ways to pay for services. Weave makes it easy for providers to offer buy now, pay later in payment plans, which help increase conversion from consultation to accepted treatment. Weave Payments helps practices streamline revenue cycle management, modernizing the payment processing workflow, and improve collection efficiency. In Q2, we welcome Greg Leos to the newly created position of General Manager of Weave Payments. Greg brings an extensive feedback background to our team, and we'll focus on expanding the adoption of Weave Payments within our customer base and broadening our payments offering.

Speaker Change: 65% of patients say they would be more likely to choose a healthcare provider if offered flexible ways to pay for services.

Brett T. White: Weave makes it easy for providers to offer buy-now, pay-later, and payment plans, which help increase conversion from consultation to accepted treatment. Weave Payments helps practices streamline revenue cycle management, modernizing the payment processing workflow, and improve collection efficiency. In Q2, we welcomed Greg Leos to the newly created position of General Manager of Weave Payments.

Speaker Change: Weave makes it easy for providers to offer buy now, pay later and payment plans, which help increase conversion from consultation to accepted treatment.

Speaker Change: Weave Payments helps practices streamline revenue cycle management, modernizing the payment processing workflow, and improve collection efficiency.

Brett T. White: Greg brings an extensive FinTech background to our team and will focus on expanding the adoption of weave payments within our customer base and broadening our payments offering. This includes improving our payments platform for multi-location practices by streamlining reconciliation processes and improving analytics and reporting tools to optimize billing and collection performance. Next, we are adding and deepening authorized and certified partner integrations, expanding our addressable market, and strengthening product market fit. This improves our customer experience and ability to upsell customers to premium offers.

Greg Laios: In Q2, we welcome Greg Laios to the newly created position of General Manager of Weave Payments.

Speaker Change: Greg brings an extensive FinTech background to our team, and will focus on expanding the adoption of Weave payments within our customer base and broadening our payments offering.

Brett White: This includes improving our payments platform for multi-location practices by streamlining reconciliation processes and improving analytics and reporting tools to optimize billing and collection performance. Next, we are adding and deepening authorized and certified partner integrations, expanding our addressable market and strengthening product-market fit. This improves our customer experience and ability to upsell customers to premium offerings. Integrations power automated and personalized communications, which increase operational efficiency, improve patient engagement, and boost practice growth. These efforts have a clear correlation with higher average sales prices and improved retention rates. Additionally, we continue to develop innovative solutions that simplify office operations, including AI-driven assistance.

Speaker Change: This includes improving our payments platform for multi-location practices by streamlining reconciliation processes and improving analytics and reporting tools to optimize billing and collection performance.

Speaker Change: Next, we are adding and deepening authorized and certified partner integrations, expanding our addressable market and strengthening product market fit. This improves our customer experience and ability to upsell customers to premium offerings.

Brett T. White: Integrations power automated and personalized communications, which increase operational efficiency, improve patient engagement, and boost practice growth. These efforts have a clear correlation with higher average sales prices and improved retention rates. Additionally, we continue to develop innovative solutions that simplify office operations, including AI-driven assistive technology. Staffing often represents the largest line item in a practice's budget, making staff efficiency and effectiveness critical to practice profitability. On average, 30% of calls into a practice during business hours go unanswered.

Speaker Change: Integrations power automated and personalized communications, which increase operational efficiency, improve patient engagement, and boost practice growth.

Speaker Change: These efforts have a clear correlation with higher average sales prices and improved retention rates.

Speaker Change: Additionally, we continue to develop innovative solutions that simplify office operations, including AI-driven assistance.

Brett White: Staffing often represents the largest line item in a practice's budget, making staff efficiency and effectiveness critical to practice profitability. On average, 30% of calls into a practice during business hours go unanswered. Our AI driven solutions will address this issue by capturing these otherwise mis-revenue opportunities. This not only helps practices run more efficiently, but also frees up staff to focus on delivering exceptional patient care. Finally, we continue to enhance the marketing tools in our platform and improve practice analytics and insights to help customers expand their audience and grow their business. By broadening our offerings, we aim to boost our value proposition, foster deeper customer relationships, drive long-term loyalty and growth, and capture a larger share of our customer's budget.

Speaker Change: Staffing often represents the largest line item in a practice's budget, making staff efficiency and effectiveness critical to practice profitability.

Speaker Change: On average, 30% of calls into a practice during business hours go unanswered.

Brett T. White: Our AI-driven solutions will address this issue by capturing these otherwise missed revenue opportunities. This not only helps practices run more efficiently but also frees up staff to focus on delivering exceptional patient care. Finally, we continue to enhance the marketing tools in our platform and improve practice analytics and insights to help customers expand their audience and grow their business. By broadening our offerings, we aim to boost our value proposition, foster deeper customer relationships, drive long-term loyalty and growth, and capture a larger share of our customers' budget.

Speaker Change: Our AI-driven solutions will address this issue by capturing these otherwise missed revenue opportunities.

Speaker Change: This not only helps practices run more efficiently, but also frees up staff to focus on delivering exceptional patient care.

Speaker Change: Finally, we continue to enhance the marketing tools in our platform and improve practice analytics and insights to help customers expand their audience and grow their business.

Speaker Change: By broadening our offerings, we aim to boost our value proposition, foster deeper customer relationships, drive long-term loyalty and growth, and capture a larger share of our customers' budgets.

Brett White: Transitioning to Partnerships. We have made significant strides this year, and I'd like to highlight a few key accomplishments. Year-to-date, we've delivered 20 new integrations, including E-clinical Works, Easy Vet, Infinite VT, and Shepherd, opening up our addressable market by more than 86,000 locations. We also expanded integrations with several existing partners and enabling an enriched customer experience with products like digital forms, online scheduling, and payments. In July, we jointly announced a commercial partnership with Patterson Dental, the second-largest dental practice management software provider globally. This agreement allows Patterson Dental to sell Weave directly into the roughly 100,000 locations that their sales team engages with.

Brett T. White: Transitioning to partnerships, we have made significant strides this year, and I'd like to highlight a few key accomplishments. Year-to-date, we've delivered 20 new integrations, including eClinicalWorks, EasyVet, InfiniteVT, and Shepherd, opening up our addressable market to more than 86,000 locations. We also expanded integrations with several existing partners and enabled an enriched customer experience with products like digital forms, online scheduling, and payments. In July, we jointly announced a commercial partnership with Patterson Dental, the second largest dental practice management software provider globally.

Speaker Change: Transitioning to partnerships, we have made significant strides this year, and I'd like to highlight a few key accomplishments.

Speaker Change: Year-to-date, we've delivered 20 new integrations, including eClinicalWorks, EasyVet, InfiniteVT, and Shepard, opening up our addressable market by more than 86,000 locations.

Speaker Change: We also expanded integrations with several existing partners in enabling an enriched customer experience with products like digital forms, online scheduling, and payments.

Brett T. White: This agreement allows Patterson Dental to sell Weave directly into the roughly 100,000 locations that their sales team engages. Our integrations with Patterson Practice Management Software FUSE and EagleSoft now have the most complete data exchange available, including payment writebacks to the ledger. Deepened integrations with Dolphin Management, Dolphin Cloud, and Dolphin Blue are also in development.

Speaker Change: In July , we jointly announced a commercial partnership with Patterson Dental, the second largest dental practice management software provider globally.

Speaker Change: This agreement allows Patterson Dental to sell Weave directly into the roughly 100,000 locations that their sales team engages with.

Brett White: Our integrations with Patterson Practice Management Software Fuse and Eaglesoft now have the most complete data exchange available, including payment right back to the ledger. Deepened integrations with Dolphin Management, Dolphin Cloud, and Dolphin Blue are also in development. Our team continues to work on other leading systems of record on similar commercial and integration partnerships.

Speaker Change: Our integrations with Patterson Practice Management Software, FUSE, and EagleSoft now have the most complete data exchange available, including payment writebacks to the ledger.

Speaker Change: Deepened integrations with Dolphin Management, Dolphin Cloud, and Dolphin Blue are also in development.

Brett T. White: Our team continues to work on other leading systems of record in similar commercial and integration partnerships. Finally, in Q2, we launched an affiliate partner marketplace to showcase best-in-class technology and services for health care practices. This initiative opens up additional revenue streams through recommended patient experience solutions that meet our customers' evolving needs. In addition to delivering new and deepened partner integrations, we've been diligently developing our next-generation platform, which modernizes our product infrastructure and improves usability. Key improvements include dynamic sizing to optimize screen real estate.

Speaker Change: Our team continues to work on other leading systems of record on similar commercial and integration partnerships.

Brett White: Finally, in Q2, we launched an affiliate partner marketplace to showcase best-in-class technology and services for healthcare practices. This initiative opens up additional revenue streams through recommended patient experience solutions that mean our customers' evolving needs. In addition to delivering new and deep and partner integrations, we've been diligently developing our next-generation platform, which modernizes our product infrastructure and improves usability. Key improvements include dynamic sizing to optimize screen real estate, enhanced personalization, multitasking capabilities, and auto updates. This rebuilt experience also enables Weave to scale with a more robust and modern technology framework.

Speaker Change: Finally, in Q2 we launched an affiliate partner marketplace to showcase best-in-class technology and services for healthcare practices.

Speaker Change: This initiative opens up additional revenue streams through recommended patient experience solutions that meet our customers' evolving needs.

Speaker Change: In addition to delivering new and deepened partner integrations, we have been diligently developing our next generation platform, which modernizes our product infrastructure and improves usability.

Speaker Change: Key improvements include dynamic sizing to optimize screen real estate.

Brett T. White: Enhanced Personalization, Multitasking Capabilities, and Auto-Update. This rebuilt experience also enables Weave to scale with a more robust and modern technology framework. In June, we were thrilled to announce Weave Enterprise. This new solution for practices with multiple locations is built entirely on our Next Generation platform. It is designed to help dental service organizations, vision, veterinary, and medical groups standardize their operations and streamline revenue cycle management.

Speaker Change: Enhanced Personalization, Multitasking Capabilities, and Auto-Updates.

Speaker Change: This rebuilt experience also enables Weave to scale with a more robust and modern technology framework.

Brett White: In June, we were thrilled to announce Weave Enterprise. This new solution for practices with multiple locations is built entirely on our next-generation platform. It is designed to help dental service organizations, vision, veterinary, and medical groups, standardize their operations and streamline revenue cycle management. Weave Enterprise provides a centralized way to manage dozens or even hundreds of offices seamlessly. Weave Enterprise also provides powerful insights and analytics, enabling the evolution of evaluation of trends, performance benchmarking, and discovery of actionable data across locations. Finally, we continue to invest in both predictive and generative AI, leveraging over a decade of call, text, and voicemail data to train our large language models.

Speaker Change: In June , we were thrilled to announce Weave Enterprise. This new solution for practices with multiple locations is built entirely on our next generation platform.

Speaker Change: It is designed to help dental service organizations, vision, veterinary, and medical groups standardize their operations and streamline revenue cycle management.

Brett T. White: Weave Enterprise provides a centralized way to manage dozens or even hundreds of offices seamlessly. Weave Enterprise also provides powerful insights and analytics, enabling the evolution of evaluation of trends, performance benchmarking, and discovery of actionable data across locations. Finally, we continue to invest in both predictive and generative AI, leveraging over a decade of call, text, and voicemail data to train our large language model.

Speaker Change: Weave Enterprise provides a centralized way to manage dozens or even hundreds of offices seamlessly.

Speaker Change: Weave Enterprise also provides powerful insights and analytics, enabling the evolution of evaluation of trends, performance benchmarking, and discovery of actionable data across locations.

Speaker Change: Finally, we continue to invest in both predictive and generative AI, leveraging over a decade of call, text, and voicemail data to train our large language models.

Brett White: This extensive data set, along with our dedicated AI team, uniquely positions us within the industry, giving us a competitive edge in developing AI solutions that deliver efficiency and productivity for healthcare practices. Weave has consistently received accolades that affirm our commitment to our customers' experience and the industry-leading performance of our platform and team. Weave was again recognized by G2 in their Summer 2024 report, ranking first in 27 categories, being named a leader in the grid for patient relationship management and a top 50 software product for small businesses. We're also proud to be recognized for our commitment to creating an outstanding workplace.

Brett T. White: This extensive data set, along with our dedicated AI team, uniquely positions us within the industry, giving us a competitive edge in developing AI solutions that deliver efficiency and productivity for healthcare practices. Weave has consistently received accolades that affirm our commitment to our customers' experience and the industry-leading performance of our platform and team. Weave was again recognized by G2 in their summer 2024 report, ranking first in 27 categories, being named a leader in the grid for patient relationship management and a top 50 software product for small business.

Speaker Change: This extensive data set, along with our dedicated AI team, uniquely positions us within the industry, giving us a competitive edge in developing AI solutions that deliver efficiency and productivity for healthcare practices.

Speaker Change: Weave has consistently received accolades that affirm our commitment to our customers' experience and the industry-leading performance of our platform and team.

Speaker Change: Weave was again recognized by G2 in their summer 2024 report, ranking first in 27 categories, being named a leader in the grid for patient relationship management and a top 50 software product for small businesses.

Brett T. White: We're also proud to be recognized for our commitment to creating outstanding work. We were honored on Inc.'s annual best workplaces list and the 2024 parody list celebrating companies with exceptional work environments and inclusive cultures. In closing, I'm immensely proud of what the team has accomplished in Q2, continuing the strong start to the year. We accelerated our top-line growth, reached a very significant milestone, and generated positive adjusted EBITDA.

Speaker Change: We're also proud to be recognized for our commitment to creating an outstanding workplace.

Brett White: Weave was honored on Inx annual Best Workplaces list in the 2024 parity list, celebrating companies with exceptional work environments and inclusive cultures. In closing, I'm immensely proud of what the team has accomplished in Q2, continuing the strong start to the year. We accelerated our top line growth, reached a very significant milestone, and positive adjusted even up. This success is a testament to our dedication to providing innovative solutions that address our customers' need. I'd like to extend a big thank you to our customers, partners, team members, and shareholders for their continued supportive week.

Speaker Change: We was honored on Inc.'s annual Best Workplaces list and the 2024 Parity list, celebrating companies with exceptional work environments and inclusive cultures.

Speaker Change: In closing, I'm immensely proud of what the team has accomplished in Q2, continuing the strong start to the year. We accelerated our top-line growth, reached a very significant milestone, and positive adjusted EBITDA.

Brett T. White: This success is a testament to our dedication to providing innovative solutions that address our customers' needs. I'd like to extend a big thank you to our customers, partners, team members, and shareholders for their continued support of Weave. With that, I'll turn the call over to Alan to provide more detailed financial results and review our outlook.

Speaker Change: This success is a testament to our dedication to providing innovative solutions that address our customers' needs. I'd like to extend a big thank you to our customers, partners, team members, and shareholders for their continued support of Weave.

Alan Taylor: With that, I'll turn the call over to Alan to provide more detailed financial results and review our outcome. Alan?

Speaker Change: With that, I'll turn the call over to Alan to provide more detailed financial results and review our outlook. Alan?

Alan Taylor: Thanks, Brett.

Alan Taylor: Thanks, Brett. Good afternoon, everyone.

Alan Taylor: Good afternoon, everyone. I'm excited to provide some additional color on our financial performance for the quarter. We continued to execute in Q2, resulting in a strong quarter of results. We delivered second quarter revenue with $50.6 million, re-accelerating our growth rate to 21.4% year over year, compared to 19.2% last quarter. This represents a $1.9 million beat or 4% beat over the midpoint of the range we provided last quarter. Revenue growth in the quarter was driven by a combination of new customer additions, particularly in our specialty medical vertical, and increases in average revenue per location. Exciting part of the progress with specialty medical is that, despite it being our fastest growing vertical, we are still less than 1.5% of 1% penetrated into the total addressable market.

Alan Taylor: Thanks, Brett. Good afternoon, everyone. I'm excited to provide some additional color on our financial performance for the quarter.

Alan Taylor: I'm excited to provide some additional color on our financial performance for the quarter. We continued to execute in Q2, resulting in a strong quarter of results. We delivered second quarter revenue of $50.6 million, reaccelerating our growth rate to 21.4 percent year over year, compared to 19.2 percent last quarter. This represents a $1.9 million beat, or 4% beat, over the midpoint of the range we provided last quarter. Revenue growth in the quarter was driven by a combination of new customer additions, particularly in our specialty medical vertical, and increases in average revenue per location. The exciting part of the progress with specialty medical is that, despite it being our fastest growing vertical, we are still less than one half of 1% penetrated into the total addressable market.

Alan Taylor: We continued to execute in Q2, resulting in a strong quarter of results.

Alan Taylor: We delivered second quarter revenue of $50.6 million, reaccelerating our growth rate to 21.4% year over year, compared to 19.2% last quarter. This represents a $1.9 million beat.

Alan Taylor: or 4% beat over the midpoint of the range we provided last quarter. Revenue growth in the quarter was driven by a combination of new customer additions, particularly in our specialty medical vertical, and increases in average revenue per location.

Alan Taylor: The exciting part of the progress with specialty medical is that despite it being our fastest growing vertical, we are still less than one half of one percent penetrated into the total addressable market.

Alan Taylor: Weave's average revenue per customer has steadily increased over the past three years as we have been successful in selling higher-priced bundles. We have seen some impressive performance from the products we have released in the last couple of years. Digital forms, bulk messaging, and insurance verification have performed really well over the past several quarters and are beginning to contribute meaningfully to total revenue growth.

Alan Taylor: We've established revenue per customer as steadily re-increased over the past three years as we have been successful in selling higher priced bundles. We have seen some impressive performance from the products we have released in the last couple of years. Digital forms, bulk messaging, and insurance verification have performed really well over the past several quarters and are beginning to contribute meaningfully to total revenue growth. Our net revenue retention rate improved to 97% in Q2, up from 96% last quarter. This includes the results of our upsell motion and price adjustments, which are periodically made to some customers and products as we continuously deliver additional value and functionality on our platform.

Alan Taylor: Weave's average revenue per customer has steadily increased over the past three years as we have been successful in selling higher priced bundles.

Alan Taylor: We have seen some impressive performance from the products we have released in the last couple of years. Digital forms, bulk messaging, and insurance verification have performed really well over the past several quarters and are beginning to contribute meaningfully to total revenue growth.

Alan Taylor: Our net revenue retention rate improved to 97% in Q2, up from 96% last quarter. This includes the results of our upsell motion and price adjustments, which are periodically made to some customers and products as we continuously deliver additional value and functionality on our platform. Some examples of functionality we have delivered recently include our AI Reviews Assistant, Voicemail Transcription, Deepened Integration, and AI Email Assistant.

Alan Taylor: Our Net Revenue Retention Rate improved to 97% in Q2, up from 96% last quarter. This includes the results of our upsell motion and price adjustments, which are periodically made to some customers and products as we continuously deliver additional value and functionality on our platform.

Alan Taylor: Some examples of functionality we have delivered recently include our AI Reviews Assistant, voicemail transcription, deepened integration, and AI Email Assistant. Our gross revenue retention rate held steady at 92%, among the best in class for SMB retention. Logo retention has been very consistent per week, with gross revenue retention landing between 91% and 94% every quarter for the last four years.

Alan Taylor: Some examples of functionality we have delivered recently include our AI Reviews Assistant, Voicemail Transcription, Deepened Integration, and AI Email Assistant.

Alan Taylor: Our gross revenue retention rate held steady at 92%, among the best in class for SMB retention. Logo retention has been very consistent for Weave, with gross revenue retention landing between 91% and 94% every quarter for the last four years. Transitioning to our operating results. As a reminder, I'll be referring to non-GAAP results unless stated otherwise.

Alan Taylor: Our gross revenue retention rate held steady at 92%, among the best in class for SMB retention. LOGA retention has been very consistent for Weave, with gross revenue retention landing between 91% and 94% every quarter for the last four years.

Alan Taylor: Funditioning to our operating results, as a reminder, I'll be referring to non-GAAP results unless stated otherwise. In Q2, we saw across the board improvement in our results. Gross margin was 71.9%. This represents a 400 basis point increase year over year and a 150 basis point increase sequentially. Our costs are good, sold, increased by just 6% year over year, while revenue increased by over 21%. Gross margin improvements are driven by economies of scale in the costs associated with our communication solutions, increases in hardware costs, and efficiencies gained in our support model. Based on customer usage in the second half of 2021, we adjusted our product packaging to reduce the number of included phones from 10 to 5.

Speaker Change: Transitioning to our operating results, as a reminder I'll be referring to non-GAP results unless stated otherwise.

Alan Taylor: In Q2, we saw an across-the-board improvement in our results. Gross margin was 71.9%. This represents a 400 basis point increase year-over-year and a 150 basis point increase sequentially. Our cost of goods sold increased by just 6% year-over-year, while revenue increased by over 21%. Gross margin improvements are driven by economies of scale in the costs associated with our communication solutions, decreases in hardware costs, and efficiencies gained in our support model. Based on customer usage in the second half of 2021, we adjusted our product packaging to reduce the number of included phones from 10 to 5.

Speaker Change: In Q2, we saw across-the-board improvement in our results.

Speaker Change: Gross margin was 71.9%. This represents a 400 basis point increase year over year, and a 150 basis point increase sequentially.

Speaker Change: Our cost of goods sold increased by just 6% year-over-year, while revenue increased by over 21%. Gross margin improvements are driven by economies of scale in the costs associated with our communication solutions, decreases in hardware costs, and efficiencies gained in our support model.

Speaker Change: Based on customer usage in the second half of 2021, we adjusted our product packaging to reduce the number of included phones from 10 to 5. Phone costs are amortized over 36 months, and the impact of that change continues to contribute consistent and incremental gross margin improvements.

Alan Taylor: Phone costs are amortized over 36 months, and the impact of that change continues to contribute consistent and incremental gross margin improvements. It's also worth noting the efficiencies gained in our support model have concurrently yielded improvements in our ability to deliver an outstanding customer experience. Selvin marketing expenses came in at $20.2 million, representing 40% of revenue compared with 39% in the same period last year, as we have expanded our address, address the market into specialty medical and mid-market, invested in strategic partnerships, and continue to grow in our core verticals. Region research and development expense totaled $8.8 million in the second quarter, representing 15% of revenue compared with $7.3 million or 17% of revenue in the same period last year.

Alan Taylor: Phone costs are amortized over 36 months, and the impact of that change continues to contribute consistent and incremental gross margin improvement. It's also worth noting that efficiencies gained in our support model have concurrently yielded improvements in our ability to deliver an outstanding customer experience. Sales and marketing expenses came in at $20.2 million, representing 40% of revenue, compared with 39% in the same period last year. As we have expanded our addressable market into specialty medical and mid-market, invested in strategic partnerships, and continue to grow in our core vertical.

Speaker Change: It's also worth noting the efficiencies gained in our support model have concurrently yielded improvements in our ability to deliver an outstanding customer experience.

Speaker Change: Sales and marketing expenses came in at $20.2 million, representing 40% of revenue, compared with 39% in the same period last year, as we have expanded our addressable market into specialty medical and mid-market, invested in strategic partnerships, and continue to grow in our core verticals.

Alan Taylor: Recent research and development expense totaled $7.8 million in the second quarter, representing 15% of revenue, compared with $7.3 million, or 17% of revenue, in the same period last year. This 200 basis point improvement was largely driven by our operational scale, while simultaneously increasing throughput as the team delivered Weave Enterprise on our next generation platform. We've also ramped up delivery on integration and strategic partnerships like Patterson Dental, and we have delivered key product improvements.

Speaker Change: Research and development expense totaled $7.8 million in the second quarter, representing 15% of revenue, compared with $7.3 million, or 17% of revenue, in the same period last year.

Alan Taylor: This 200 basis point improvement was largely driven by our operational scale while simultaneously increasing throughput as the team delivered we've enterprise on our next generation platform. We've also ramped up delivery on integration and strategic partnerships like Patterson Vental and have delivered key product improvements. General and administrative expenses were $9.4 million in the second quarter, representing 19% of revenue, compared with $8.8 million or 21% of revenue in the same period last year. The fixed costs associated with operating as a public company will continue to decrease as a percentage of revenue as we continue to grow in the years to come.

Speaker Change: This 200-basis point improvement was largely driven by our operational scale while simultaneously increasing throughput as the team delivered Weave Enterprise on our next-generation platform.

Speaker Change: We have also ramped up delivery on integration and strategic partnerships like Patterson Dental and have delivered key product improvements.

Alan Taylor: General and administrative expenses were $9.4 million in the second quarter, representing 19% of revenue, compared with $8.8 million or 21% of revenue in the same period last year. The fixed costs associated with operating as a public company will continue to decrease as a percentage of revenue as we continue to grow in the years to come. Our operating loss for Q2 was $1 million, an improvement of $3 million, or 76% compared to last year, and $500,000 higher than the top end of the guidance that we gave in May.

Speaker Change: General and administrative expenses were $9.4 million in the second quarter, representing 19% of revenue, compared with $8.8 million, or 21% of revenue, in the same period last year.

Speaker Change: The fixed costs associated with operating as a public company will continue to decrease as a percentage of revenue as we continue to grow in the years to come.

Alan Taylor: Our operating loss per Q2 was $1 million and improvement of $3 million or 76% compared to last year, and $500,000 higher than the top end of the guidance that we gave in May. The corresponding operating loss margin of 1.9% is a significant improvement from the operating loss margin of 9.5% last year. Our net loss was $300,000, or 0 cents per share, in the second quarter, based on 71.3 million weighted average shares outstanding. This is compared to a net loss of 3.1 million, or 5 cents per share last year. This represents a $2.8 million improvement due to revenue acceleration and operating efficiencies.

Speaker Change: Our operating loss for Q2 was $1 million, an improvement of $3 million, or 76% compared to last year, and $500,000 higher than the top end of the guidance that we gave in May.

Alan Taylor: The corresponding operating loss margin of 1.9% is a significant improvement from the operating loss margin of 9.5% last year. Our net loss was $300,000 or 0 cents per share in the second quarter, based on 71.3 million weighted average shares outstanding. This is compared to a net loss of $3.1 million, or $0.05 per share, last year. This represents a $2.8 million improvement due to revenue acceleration and operating efficiency. As Brent mentioned, adjusted EBITDA was positive for the first time in our company's history, landing just above breakeven at $5,000, a $3 million improvement year over year.

Speaker Change: The corresponding operating loss margin of 1.9% is a significant improvement from the operating loss margin of 9.5% last year.

Speaker Change: Our net loss was $300,000 or 0 cents per share in the second quarter, based on 71.3 million weighted average shares outstanding.

Speaker Change: This is compared to a net loss of $3.1 million or $0.05 per share last year. This represents a $2.8 million improvement due to revenue acceleration and operating efficiencies.

Alan Taylor: As Brent mentioned, adjusted EBITDA was positive for the first time in our company's history, landing just above breakeven at $5,000, a $3 million improvement year over year. Achieving positive adjusted EBITDA is a significant improvement compared to the negative 7.3% margin reported a year ago. Shifting focus to the balance sheet and cash flow, we ended the second quarter with $99 million in cash to ensure term investments and improvement of over $16 million sequentially. As a reminder last quarter, we implemented a new billing system that necessitated deferring some Q1 billings into Q2.

Speaker Change: As Brett mentioned, Adjusted EBITDA was positive for the first time in our company's history, landing just above breakeven at $5,000, a $3 million improvement year over year.

Alan Taylor: Achieving positive adjusted EVA die is a significant improvement compared to the negative 7.3% margin reported a year ago. Shifting focus to the balance sheet and cash flow, we ended the second quarter with $99 million in cash and short-term investments, an improvement of over $16 million sequentially. As a reminder, last quarter we implemented a new billing system that necessitated deferring some Q1 billings into Q2. This resulted in a one-time disruption to cash flow last quarter, which reversed in Q2. Cash flow generated from operations was $22.7 million in the second quarter and $3 million year-to-date. Free cash flow was $21.2 million in the second quarter and $700,000 year-to-date.

Brett T. White: Achieving positive adjusted EVA die is a significant improvement compared to the negative 7.3 percent margin reported a year ago.

Speaker Change: Shifting focus to the balance sheet and cash flow, we ended the second quarter with $99 million in cash and short-term investments.

Speaker Change: and improvement of over $16 million sequentially. As a reminder, last quarter we implemented a new billing system that necessitated deferring some Q1 billings into Q2. This resulted in a one-time disruption to cash flow last quarter which reversed in Q2.

Alan Taylor: This resulted in one-time disruption to cash flow last quarter, which reversed in 2-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3-3 Q2. Cashflow generated from operations was $22.7 million in the second quarter and $3 million year-to-date. Precashflow was $21.2 million in the second quarter and $700,000 a year-to-date.

Speaker Change: Cash flow generated from operations was $22.7 million in the second quarter and $3 million year-to-date.

Speaker Change: Free cash flow was $21.2 million in the second quarter and $700,000 year-to-date.

Alan Taylor: Turning to our outlook for the third quarter in full year 2024, for the third quarter of 2024, we expect total revenue in the range of $50.7 million to $51.7 million and non-GAAP operating loss in the range of $1.2 million to $0.2 million. For the full year 2024, we are raising our outlook, and we expect total revenue to be in the range of $201 million to $203 million. We expect our full year 2024 non-GAAP operating loss to be in the range of $3.8 million to $1.8 million. We expect to have a weighted average share count of approximately $71.7 million shares for the full year.

Alan Taylor: Turning to our outlook for the third quarter and full year 2024, for the third quarter of 2024, we expect total revenue in the range of $50.7 million to $51.7 million and a non-GAAP operating loss in the range of $1.2 million to $0.2 million. For the full year 2024, we are raising our outlook, and we expect total revenue to be in the range of $201 million to $203 million. We expect our full-year 2024 non-GAAP operating loss to be in the range of $3.8 million to $1.8 million.

Speaker Change: Turning to our outlook for the third quarter and full year 2024. For the third quarter of 2024, we expect total revenue in the range of $50.7 million to $51.7 million, and non-GAAP operating loss in the range of $1.2 million to $0.2 million.

Speaker Change: For the full year, 2024, we are raising our outlook, and we expect total revenue to be in the range of $201 million to $203 million.

Speaker Change: We expect our full year 2024 non-GAAP operating loss to be in the range of $3.8 million to $1.8 million. We expect to have a weighted average share count of approximately 71.7 million shares for the full year.

Alan Taylor: In summary, we've achieved excellent results in Q2, underscoring the continuing demand for our platform. We are optimistic about our future opportunities and are committed to strengthening our long-term value through sustained business growth.

Alan Taylor: We expect to have a weighted average share count of approximately 71.7 million shares for the full year. In summary, we achieved excellent results in Q2, underscoring the continuing demand for our platform. We are optimistic about our future opportunities and are committed to strengthening our long-term value through sustained business growth. And with that, I'll turn the call over to the operator for Q&A.

Speaker Change: In summary, we've achieved excellent results in Q2, underscoring the continuing demand for our platform.

Speaker Change: We are optimistic about our future opportunities and are committed to strengthening our long-term value through sustained business growth. And with that, I'll turn the call over to the operator for Q&A.

Operator: With that, I'll turn the call over to the operator for Q&A. Thank you.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Operator: We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your hands that before pressing the star keys. One moment, please. I'll be pulled for questions.

Speaker Change: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Speaker Change: You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Operator: One moment, please, while we poll for questions. The first question is from Parker Lane from Stiefel. Please go ahead.

Speaker Change: One moment, please, while we poll for questions.

Parker Lane: The first question is from Parker Lane from Steeple. Please go ahead.

Speaker Change: The first question is from Parker Lane from Stiefel. Please go ahead.

Brett White: Hi, guys. Thanks for taking the question. Brad, you talked about half a percent of penetration coming from specialty medical loss. We're going to be talking about what pockets are specialty medical. You're seeing the most traction in today and how to go to market. Motion is aligned around those particular areas. Sure. Thanks, Parker. Where we're seeing the traction is physical therapy, med spa, plastics, and general practice. Those are really our four primary focus areas with both sales and marketing and integrations. Our go-to market is pretty similar to our past history; the only difference we were new to these spaces.

Jeffrey Parker Lane: Yeah, hi, guys. Thanks for taking the question. Brett, you talked about half a percent of penetration coming from specialty medical. I was wondering if you could talk about what pockets of specialty medical you're seeing the most traction in today and how the go-to-market motion is aligned around those particular areas.

Jeffrey Parker Lane: Yeah, hi guys. Thanks for taking the question.

Jeffrey Parker Lane: Brent, you talked about half a percent of, you know, penetration coming from specialty medical. I was wondering if you could talk about, you know, what pockets of specialty medical you're seeing the most traction in today and how the go-to-market motion is aligned around those particular areas.

Brett T. White: Sure, thanks, Parker. So where we're seeing the traction is physical therapy, med spa, plastics, general practice. Those are really our four primary focus areas with both sales and marketing and integrations. And our go-to-market strategy is pretty similar to our past history, the only difference being that we're new to these spaces. So we have to seed them with some brand marketing, and then we run our usual marketing motions to generate the inbound leads. And then we also have an outbound motion to nurture those leads.

Brett T. White: Sure, thanks Parker. So where we're seeing the traction is...

Speaker Change: Physical Therapy, MedSpa, Blastix,

Speaker Change: General practice.

Speaker Change: Those are really our four...

Speaker Change: primary focus areas with both sales and marketing and integrations. And, you know, our go-to-market is pretty similar to our past history, the only difference being we're new to these spaces, so we have to seed them with some brand marketing and then run our usual, you know,

Brett White: We have to seed them with some brand marketing and then run our usual marketing motions to generate the inbound leads, and then we also have an outbound motion into those segments. That makes sense.

Speaker Change: Marketing motions to generate the inbound leads, and then we also have an outbound motion into those segments.

Brett T. White: That makes sense. And then, in terms of the rollout of the new platform, is there a timeline by which you're planning to, you know, sort of get that in customers' hands, and what sort of enhanced features do you think are coming to the table that would potentially drive, you know, expansion or further retention momentum going forward?

Brett White: Then, in terms of the rollout of the new platform, is there a timeline by which you're planning to get that in customers' hands, and what sort of enhanced features do you think are coming to the table that would potentially drive expansion or further retention momentum going forward? Sure, so we developed an entirely new product platform we call the new Weave Experience, and built on that are really two products. Weave Enterprise, which is a product focused almost primarily, almost exclusively on multi-locations, and so that product offers those customers the ability to manage multiple locations through one application, through one login, so that will be very, very helpful.

Speaker Change: That makes sense. And then in terms of the rollout of the new platform, is there a timeline by which you're planning to, you know, sort of get that in customers hands? And what sort of enhanced features do you think are coming to the table that would potentially drive, you know, expansion or further retention and momentum going forward?

Brett T. White: Sure, so, um, we developed an entirely new product platform we call the New Weave Experience, and built on that are really two products. Weave Enterprise is a product focused almost, well, primarily, almost exclusively on multi-locations. And so that product offers those customers the ability to manage multiple locations through one application, through one login. So that will be very, very helpful. They can also multitask.

Speaker Change: Sure, so the...

Speaker Change: We've developed an entirely new product platform we call the New Weave Experience, and built on that are really two products.

Speaker Change: Weave Enterprise, which is a product-focused

Speaker Change: almost, well, primarily, almost exclusively on multi-locations. And so ...

Speaker Change: That product offers those customers the ability to manage multiple locations.

Speaker Change: through one application, through one login, so that will be very, very helpful. They can also multitask. They can also use the application to take up as much or little real estate on their screen as they like. So that is really the opportunity, the product opportunity that we now have.

Brett White: They can also multi-task; they can also use the application to take up as much or little real estate on their screen as they like. So that is really the opportunity, the product opportunities that we now have to really move in a big way into multi-location sales. We already have about a third of our customers in multi-location, but we really haven't had a great, you know, dedicated tool that meets all their needs or dedicated product, and now we do. So with this release, we are sharing this product. We are demoing this product currently with multi-location opportunities, and it's getting quite a bit of interest and excitement on the multi-location opportunity side.

Brett T. White: They can also use the application to take up as much or little real estate on their screen as they like. So that is really the opportunity, the product opportunity that we now have to really move in a big way into multi-location sales. You know, we already have about a third of our customers in multi-location, but we really haven't had a great, you know, dedicated tool that meets all their needs or a dedicated product, and now we do. So with this release, we are sharing this product. We are demoing this product currently with multi-location opportunities, and it's getting quite a bit of interest and excitement on the multi-location opportunity side.

Speaker Change: to really move in a big way into multi-location sales. We already have about a third of our customers in multi-location, but we really haven't had a great dedicated tool that meets all their needs or dedicated product.

Speaker Change: And now we do. So with this release...

Speaker Change: We are sharing this product, we are demoing this product currently with multi-location opportunities, and it's getting quite a bit of interest and excitement on the multi-location opportunity side.

Brett White: On the second side of the Weave experience, we've also enabled the new version of the SMB app, and really the big, the new features there that are be, you know, I think we're really excited about is the ability to change, to dynamically change the size and configuration of the app. Historically, our app was limited to, you know, kind of like an iPhone 4 size, and so you can retain that functionality or you can expand it, have it take up your whole screen, you can have different types of views, so that should be very helpful. Also, it's got auto update features so that the app just auto updates like a modern app versus having to go and download it and delete and replace, and that was, you know, that was historically a source of some challenges.

Brett T. White: On the second side of the Weave new experience, we've also enabled the new version of the SMB app. And really, the big new features there that will be, you know, I think we're really excited about are the ability to change – to dynamically change the size and configuration of the app. Historically, our app was limited to, you know, kind of like an iPhone 4 size, and so you can retain that functionality, or you can expand it, have it take up your whole screen.

Speaker Change: On the second side of the Weave New Experience is...

Speaker Change: We've also enabled the new version of the SMB app.

Speaker Change: And really the big, the new features there that'll be, you know, I think we're really excited about is the ability to change, to dynamically change the size.

Speaker Change: and configuration of the app. Historically, our app was limited to kind of like an iPhone 4 size. And so you can retain that functionality, or you can expand it, have it take up your whole screen. You can have different types of views.

Brett T. White: You can have different types of views, so that should be very helpful. Also, it's got auto-update features so that the app just auto-updates like a modern app versus having to go and download it and then delete and replace it. And that was, you know, that was historically a source of some challenges, certainly on the support side because you couldn't guarantee that all the customers were running the same version of the app. So, that should be very helpful. I think we have about 7,000 customers currently using the SMB Weave app. And, you know, I think they switch back and forth.

Speaker Change: So that should be very helpful. Also, it's got auto-update features so that the app just auto-updates like a modern app versus having to go and download it and delete and replace.

Speaker Change: And that was, you know, that was historically a source.

Brett White: Certainly on the support side because you couldn't guarantee all the customers were running the same version of the app. So that should be very helpful. I think we have about about 7,000 customers currently using the SMB Weave app, and, you know, I think they toggle back and forth; they can use the legacy app that they want, they can use the new one. But we've got about 7,000 on it now. The other interesting thing about the new app for the SMB, actually both products, is you can run them on Chrome, which historically we couldn't do. They're very browser friendly, or you can just download, download the app.

Speaker Change: of some challenges, certainly on the support side, because you couldn't guarantee all the customers were running the same version of the app. So that should be very helpful. I think we have about

Speaker Change: about 7,000 customers currently using the SMB Weave app and, you know, I think they toggle back and forth. They can use the Legacy app if they want. They can use the new one. But we've got about 7,000.

Brett T. White: They can use the legacy app if they want. They can use the new one. But we've got about 7,000 on it now. The other interesting thing about the new app for SMB, actually both products, is you can run them on Chrome, which historically we couldn't do. They're very browser-friendly, or you can just download the app. So, hopefully that helps. Thanks.

Speaker Change: on it now.

Speaker Change: The other interesting thing about the new app for the SMB, actually both products, is you can run them on Chrome, which historically we couldn't do. They're very browser-friendly, or you can just download the app. So hopefully that helps.

Brett White: So hopefully that helps.

Jeffrey Parker Lane: Thanks, Brett. I appreciate all the color there.

Brett White: Thanks, Brett. Appreciate all the color there.

Speaker Change: Thanks, Brett. Appreciate all the color there.

Alex Sklar: The next question is from Alex Sklar from Raymond James. Please go ahead.

Operator: The next question is from Alex Sklar from Raymond James. Please go ahead.

Speaker Change: The next question is from Alex Sklar from Raymond James. Please go ahead.

Alex Sklar: Great, thank you. Brett or Alan, just in terms of all the added integration work you've announced over the last year, can you spring the size of your install base today that's not on one of your integrated bundles, but they now have access to one of those plans, given all the work you've done in the past several years. And then with that, what does that back-to-base motion look like as you try and upsell from these customers to your elite plans?

Alexander James Sklar: Great, thank you. Brett or Alan, just in terms of all the added integration work you've announced over the last year, can you just frame the size of your installed base today that isn't on one of your integrated bundles, but they now have access to one of those plans, given all the work you've done in the past several years? And then with that, what does that back-to-base motion look like as you try and upsell some of these customers to your elite plans? Thanks.

Alexander James Sklar: Great, thank you. Brett or Alan, just in terms of all the added integration work you've announced over the last year, can you just frame the size of your installed base today that's not on one of your integrated bundles, but they now have access to one of those plans, given all the work you've done in the past several years?

Speaker Change: And then with that, what does that back-to-base motion look like as you try and upsell some of these customers to your elite plans? Thanks.

Brett White: Thanks. So I'll start, thanks Alex. About 10% of our customers are now on a non-integrated product. And so we continue to penetrate into that, given these integrations, and it opens that up. And so the upsell team can then take that as soon as that integration's done, give them a call, describe what now can be accomplished, including just the call pop feature. This is we have the right back capability for appointment reminders, and with deep enough integrations, obviously we can go clear through to payments. So that upsell motion becomes fairly compelling, given the new integrations and the process is really one through our upsell team to dig in there.

Alan Taylor: So I'll start. Thanks, Alex.

Speaker Change: So I'll start. Thanks, Alex. About 10% of our customers are now on non-integrated product.

Alan Taylor: About 10% of our customers are now on non-integrated products. And so we continue to penetrate into that, given these integrations, and it opens that up. And so the upsell team can then take that as soon as the integration is done, give them a call, and describe what can now be accomplished, including just the call pop feature, depending on the level of the integration. Obviously, we read from that integration. In some cases, we have the write-back capability for appointment reminders.

Speaker Change: And so we continue to penetrate into that given these integrations.

Speaker Change: And it opens that up, and so the upsell team can then take that as soon as the integration's done.

Speaker Change: Give them a call. Describe what now can be accomplished, including just the call pop feature. Depending on the level of the integration, obviously we read from that integration. In some cases, we have the write-back capability for appointment reminders. And with deep enough integrations, obviously we can go clear through to payments.

Alan Taylor: And with deep enough integrations, obviously, we can go clear through to payments. So that upsell motion becomes fairly compelling, given the new integrations, and then the process is really one through our upsell team to dig in.

Speaker Change: So that upsell motion becomes fairly compelling given the new integrations and the process is really one through our upsell team to dig in there.

Alan Taylor: Yeah, I would add, Alex, that in addition to new integrations, we've spent a lot of time deepening integrations. So a customer may be on, you know, just the base Weave package, but as we add deeper integrations, then other upsells, other higher-end bundles become much more interesting to them because they just work better as we deepen an integration. So that'd be one point. And then the second point is events. One thing we've found is when we're at an event and we put up a banner that says, you know, now integrates with XYZ PMS, we get a lot of interest and a lot of activity.

Brett White: Yeah, I would add, Alex, that in addition to new integrations, we've spent a lot of time deepening integration. So a customer may be on, you know, just the base weave package, but as we add deepening integrations, then other upsells, other hiring bundles become much more interesting to them because they just work better as we deepen an integration. So that'd be one point. And then the second point is events. One thing we found is when rendered event and we put up a banner that says, you know, now integrates with XYZPMS, we get a lot of interest and a lot of activity.

Speaker Change: Yeah, I would add, Alex, that...

Alexander James Sklar: In addition to new integrations, we've spent a lot of time deepening integrations. So, a customer may be on, you know, just a base

Alexander James Sklar: Weave Package, but as we add deepened integrations then...

Alexander James Sklar: other upsells, other higher-end bundles become much more interesting to them because they just they just work better as we deepen in integration. So that'd be one point. And then the second point is events. One thing we found is when we're in an event

Alexander James Sklar: And we put up a banner that says, you know, now integrates with XYZ PMS. We get a lot of interest and a lot of activity. So it's not really an upsell, but it is taking prospects who are interested in Weave but haven't yet pulled the trigger because we didn't have the integration. It makes that a much more compelling opportunity for them.

Brett White: So it's not really an upsell, but it is taking prospects who are interested in Weave, but having it pulled the trigger because we didn't have the integration, it makes that a much more compelling opportunity for them.

Alan Taylor: So it's not really an upsell, but it is taking prospects who are interested in Weave but haven't yet pulled the trigger because we didn't have the integration yet. It makes that a much more compelling opportunity for them.

Alex Sklar: Okay, great color on that new logo piece, too. And so it sounds like probably more than 10% like in terms of the upsell opportunity, but the customers that are not on integrated products are 10%. But there's more than just the integration; it's the upsell. That's right.

Alexander James Sklar: Great color on that new logo piece, too. And so it sounds like probably more than 10% in terms of the upsell opportunity, but the customers that are not on integrated products are 10%. But it's more than just the integration of the upsell. Is that right? That's right. Okay.

Speaker Change: Okay, great color on that new logo piece too. And so it sounds like probably more than 10%, like in terms of the upsell opportunity, but the customers that are not on integrated products are 10%, but it's more than just the integration of the upsell, is that right?

Brett White: Okay, and then just as a follow-up, I want to ask kind of following up on Parker's first question, but she's in terms of top-of-funnel growth. And you've got the more formal expansion, the specialty medical now that tams larger than your other ones you talked about. How is that top of funnel kind of lead gen tracked relative to your overall kind of 20% top line growth, and where have kind of been the biggest incremental lead gen successes over the last year. So lead gen continues to grow. We've got strong performance over the definitely of the last six months on generating new leads in our now four core verticals.

Brett T. White: And then just as a follow-up, I want to ask kind of following up on Parker's first question, but just in terms of top-of-funnel growth, and you've got the more formal expansion to specialty medical now, that TAM's larger than your other ones you talked about. How is that top-of-funnel kind of lead gen tracked relative to your overall kind of 20% top-line growth? And where have kind of been the biggest incremental lead gen successes over the last year?

Speaker Change: That's right.

Speaker Change: Okay, and then just as a follow-up, I want to ask kind of following up on Parker's first question But she's in terms of top of funnel growth

Jeffrey Parker Lane: And you've got the more formal expansion to specialty medical now, that TAM's larger than your other ones you talked about. How is that top of funnel kind of lead gen tracked relative to your overall kind of 20% top line growth? And where have kind of been the biggest incremental lead gen successes over the last year?

Brett T. White: So LeadGen continues to grow. We've definitely had strong performance over the last six months in generating new leads in our now four core verticals. Dental continues to be our largest, that's the largest part of our, in just sheer numbers, largest part of our install base, largest source of leads, largest number of new customers closed. But I would say we're fairly well distributed on lead gen versus the kind of our install base with the exception of medical. Medical is much stronger on a kind of percentage of growth and just the number of leads relative to the base perspective.

Speaker Change: So lead gen continues to grow. We've got...

Speaker Change: Strong performance definitely over the last six months.

Speaker Change: on generating new leads in our now four core verticals. You know, dental continues to be our largest. That's the largest part of our.

Brett White: You know, dental continues to be our largest. That's the largest part of our, in just sheer numbers, largest part of our install base, largest source of leads, largest number of new customers closed. But I would say we're fairly well distributed on lead gen versus kind of our install base, with the exception of medical. Medical is much stronger on a kind of percentage of growth. And just, you know, number of leads relative to the base.

Speaker Change: and just sheer numbers, largest part of our install base, largest source of leads, largest number of new customers closed.

Speaker Change: But I would say we're fairly well distributed on leave gen versus kind of our install base, with the exception of medical. Medical is much stronger on a, you know, kind of percentage of growth.

Speaker Change: and just, you know, number of leads relative to the base perspective.

Brett White: Okay, great. Thank you both.

Alexander James Sklar: Okay, great. Thank you both.

Speaker Change: Okay, great. Thank you both.

Brent Bracelin: The next question is from Brent Bracelin from Piper Sandler. Please go ahead.

Operator: The next question is from Brent Bracelin on behalf of Piper Sandler. Please go ahead.

Speaker Change: The next question is from Brent Bracelin from Piper Sandler. Please go ahead.

Brent Bracelin: Good afternoon. Thank you for taking my question here. I guess, Brad, I want to start with just the demand trends in the quarter. Subscription and payment revenue looks like it was up the most sequentially over three million here in well over three years. What's driving the strength here? Again, it was pronounced increased here sequentially. What drove the upside this quarter? Thanks.

Brent Alan Bracelin: Good afternoon. Thank you for taking my question here.

Brent Alan Bracelin: Good afternoon. Thank you for taking my question here. I guess, Brett, I want to start with

Brett T. White: I guess, Brett, I want to start with just the demand trends in the quarter. Subscription and payment revenue looks like it was up the most sequentially over 3 million here in well over three years. What's driving the strength here? Again, it was a pronounced increase here sequentially. What drove the upside this quarter?

Brett T. White: Thank

Brent Alan Bracelin: Just the demand trends in the quarter

Speaker Change: Subscription and payment revenue looks like it was up the most sequentially over three million here in well over three years.

Speaker Change: What's driving the strength here again? It was pronounced increase here sequentially. What drove the upside this quarter? Thanks.

Brett White: Sure. So it was on multiple fronts. Sales is doing quite well. We've been building on our sales momentum. We had a good quarter. I think this quarter we closed more new sales than previous quarters, or certainly in the previous couple quarters. So I would say new customer acquisition has been growing. So that's good news. Alan mentioned that we did some price adjustments this quarter, and we do them pretty regularly for the last several years, but we have price adjustments this quarter over certain kind of cohorts, product types, customers, etc. And then payments did well. We had a nice payments growth.

Brett T. White: Sure. So it was on multiple fronts. Sales are doing quite well. You know, we've been building on our sales momentum. We had a good quarter. I think this quarter we closed more new sales than in previous quarters or certainly in the previous couple of quarters. So, I would say, you know, new customer acquisition has been growing. So, that's good news. Alan mentioned that we did some price adjustments this quarter. And, you know, we have done them pretty regularly for the last several years.

Brad: Sure, so it was on multiple fronts. Sales is doing quite well. You know, we've been

Speaker Change: building on our sales momentum we had a good quarter I think it was

Speaker Change: I think this quarter we closed more new sales than previous quarters.

Speaker Change: are certainly in the previous couple quarters.

Speaker Change: So I would say, you know, new customer acquisition has been growing, so that's good news.

Speaker Change: Alan mentioned that we did some price adjustments this quarter, and you know, we do them pretty regularly for the last several years, but we have price adjustments this quarter over certain, you know, kind of cohorts.

Brett T. White: But we have price adjustments this quarter over certain, you know, kind of cohorts, product types, customers, et cetera. And then payments did well. We had nice payment growth. We had a bit of expansion in our net take rate. Anything

Alan Taylor: Anything else? I think those are the key points. The key elements.

Alan Taylor: product types, customers, etc. And then payments did well. We had a nice payments growth. We had a bit of expansion in our net take rate. Anything else? I think those are the key points.

Brett White: We had a bit of expansion in our net take rate. Anything else? I think those are the key point key elements. Yeah. A helpful color there, just as we think about the mem the business, particularly against a macro environment that's certainly not getting any better. So it does sound like it's a lot of it is internal execution stuff that's working for you.

Brett T. White: helpful color there, just as we think about the business, particularly against a macro environment, certainly not getting any better. So it does sound like a lot of it is internal cut execution stuff that's working for you. I wanted to double click into the Patterson-Dennell relationship and see what changes. You've had a relationship there. It seems like there's something new, and I'm just trying to better understand what that means, tapping into that Salesforce team. What does it do? Is this a strategic relationship that might blossom into incremental net new ACV build next year? Or could you start to see things earlier?

Speaker Change: Helpful color there, just as we think about the business.

Speaker Change: particularly against a macro environment, certainly not getting any better. So it does sound like it's a lot of it is internal cut execution stuff that's working for you. I wanted to double click into the Patterson-Dennell relationship.

Brett White: I wanted to double-click into the Patterson-Dental relationship and what changes. You've had a relationship there. It seems like there's something new, and just trying to better understand what that means, tapping into that sales force team. What does it do? Is this a strategic relationship that might blossom into incremental net new ACV build next year? Could you start to see things earlier, any sort of additional details on what that means to the business and the opportunity to be helpful. Thanks.

Speaker Change: and what changes. You've had a relationship there. It seems like there's something new and just trying to better understand what that means.

Speaker Change: Tapping into that Salesforce team, what does it do?

Speaker Change: Is this a strategic relationship that might blossom into incremental net new ACV bill next year? Could you start to see things earlier? Any sort of additional details on what that means to the business and the opportunity would be helpful. Thanks.

Brent Alan Bracelin: Any sort of additional details on what that means for the business and the opportunity would be helpful.

Brett White: Sure. So we are really, really excited about the traction we're getting on the partnership side. You know, every quarter, I stand up in front of the team and I talk about the things that get me excited. And for the last couple of quarters, partnerships has definitely been in it. Historically, we've had not been super, I would say, not partner friendly, but we haven't really gone out of our way to establish an additional channel in partnerships. And we decided about a year ago that we just wanted to, you know, kind of change our approach and establish win-win partnerships with the PMS providers.

Brett T. White: Sure. So we are really, really excited about the traction we're getting on the partnership side. You know, every quarter, I stand up in front of the team, and I talk about the things that get me excited.

Speaker Change: Sure. So we are really, really excited about the traction.

Speaker Change: we're getting on the partnership side. You know, every quarter, I stand up in front of the team and I talk about the things that get me excited. And for the last couple of quarters, partnerships has definitely been in it. Historically, Weave has not been super

Brett T. White: And for the last couple of quarters, partnerships have definitely been in it. Historically, Weave has not been super-successful... I would say not partner-friendly, but we haven't really gone out of our way to establish an additional channel and partnerships. And we decided about a year ago that we just wanted to, you know, kind of change our approach and establish win-win partnerships with the PMS providers. And so we sat down and talked about all the opportunities and how we really were interested in a win-win.

Speaker Change: I would say, not partner friendly, but we haven't really gone out of our way to establish an additional channel in partnerships, and we decided about a year ago that we just wanted to, you know, kind of change our, our,

Speaker Change: change our approach and establish win-win partnerships with the PMS providers.

Brett White: And so we sat down and talked about all the opportunities and how we really were interested in win-win. And we hired a new head of channels, very clever guy in December and really just started working with these PMS providers to figure out how we could win together. And we hashed out a deal end of last year with Dentrix and Dentrix Ascend. And then we closed this deal with Patterson. And it's terrific. We're going to market together. They, Patterson has a weave slash fuse, fuses there, their enterprise cloud solution. They have a weave fuse bundle that they're selling.

Speaker Change: And so we sat down and talked about all the opportunities and how we really were

Brett T. White: And we hired a new head of channels, a very clever guy, in December and really just started working with these PMS providers to figure out how we could win together. And we hashed out a deal at the end of last year with Dentrix and Dentrix Ascend. And then we closed this deal with Patterson. And it's terrific.

Speaker Change: interested in Win-Win and we hired a new head of channels, very clever guy, in December and and really just started working with these PMS providers to figure out how we could win together.

Speaker Change: and we hashed out a deal end of last year with Dentrix and Dentrix Ascend and then we closed this deal with Patterson and it's terrific. We're going to market together. They

Brett T. White: We're going to market together. They – Patterson has a Weave slash Fuse. Fuse is their enterprise cloud solution. They have a Weave + Fuse bundle that they're selling.

Speaker Change: Patterson has a Weave slash Fuse. Fuse is their enterprise cloud solution. They have a Weave Fuse bundle that they're selling. They're calling on about 100,000 locations and customers, so they're now calling into that with...

Brett White: They're calling on about 100,000. Locations and customers. So they're now calling into that with the Weave Patterson bundle. And also they're sharing leads with us. They're sharing opportunities with us. So really collaborating on selling weave and Patterson together. Because it just really is 1 plus 1 equals 3 for the customers. And you know, as far as getting traction, we actually sent a team to their National Sales Kickoff. And June trained their sales people. Their sales people are excited about it. Or we're already getting leads sent over. We've got a deal signed. We've got ARR added already, you know, kind of from June to today.

Brett T. White: They're calling on about 100,000 locations and customers, so they're now calling into that with the Weave Patterson bundle. And also, they're sharing leads with us. They're sharing opportunities with us. So really collaborating on selling Weave and Patterson together because it just really is one plus one equals three for the customers. And, you know, as far as getting traction goes, we actually sent a team to their national sales kickoff in June and trained their salespeople.

Speaker Change: The Weave Patterson Bundle, and also they're sharing leads with us, they're sharing opportunities with us, so really collaborating on selling

Speaker Change: Weave and Patterson together, because it just really is 1 plus 1 equals 3 for the customers. And, you know, as far as getting traction...

Speaker Change: We actually sent a team to their national sales kickoff in June , trained their sales people, their sales people are excited about it, we're already getting leads sent over.

Brett T. White: Their salespeople are excited about it. We're already getting leads sent over. We've got deals signed. We've got ARR added already, you know, kind of from June to today. So it's off to a positive start. And we hope to have more partnerships with practice management software providers like this going forward. Great.

Speaker Change: We've got deals signed. We've got ARR added already, you know, kind of from June to today. So it's off to

Brett White: So it's off to a positive start, and we hope to have more partnerships with practice management software providers like this going forward.

Speaker Change: a positive start and we hope to have more partnerships with practice management software providers like this going forward.

Brent Alan Bracelin: Great, well, it sounds like that partner channel has really started to blossom for the company, so great to see you. Thank you.

Brett White: Great. Well, it sounds like that partner channel has really started to blossom for the company. So great to see. Thank you.

Speaker Change: Great, well it sounds like that partner channel has really started to blossom for the company, so great to see you.

Mark Schappel: The next question is from Mark Schappel from Loop Capital Markets. Please go ahead.

Speaker Change: Thank you.

Operator: The next question is from Mark Schappel from Loop Capital Markets. Please go ahead.

Speaker Change: The next question is from Mark Schappel from Loop Capital Markets. Please go ahead.

Brett White: Hi, thanks for taking my question and a nice job on the, on the quarter of the guide. Brett, it's been a couple of quarters now since I think you've got on board news sales leadership.

Mark William Schappel: Hi, thanks for taking my question and nice job on the quarterly guide. It's been a couple of quarters now since I think you've brought on board new sales leadership. And often when such leadership comes on board, that typically means sales changes or changes to the sales team. I was wondering if you could just give us an update on whether there have been any meaningful changes to sales recently that could be helping drive the upside here?

Mark William Schappel: Hi, thanks for taking my question and nice job on the quarter of the guide.

Mark William Schappel: It's been a couple of quarters now since I think you brought on board new sales leadership. And often when such leadership comes on board, that typically means changes to the sales team. I was wondering if you could just give us an update on whether there have been...

Brett White: And often when, when such leadership comes on board, there are that typically mean sales changes or changes to the sales team. As one of you just give us an update on whether there have been any meaningful changes to sales recently that could be helping drive the upside here. I would say the changes that are being, you know, so, so, um, this is David McNeil who joined and he's a very thoughtful person. It's been a lot of time getting to know the people, how the business works, um, you know, we're, we're a very unique animal. And then bringing to bear his lessons learned, his experiences on how we can do better.

Speaker Change: Any meaningful changes to sales recently that could be helping drive the upside here?

Brett T. White: I would say the changes that are being made. This is David McNeil who joined us, and he's a very thoughtful person, spent a lot of time getting to know the people, how the business works. We're a very unique animal, and then bringing to bear his lessons learned, his experiences on how we can do better. So I would say the changes that have occurred have been small, so very small incremental changes, just making observations, making tweaks, making improvements.

Mark McReynolds: I would say the changes that are being, so this is David McNeil who joined, and he's a very thoughtful person, spent a lot of time getting to know the people, how the business works.

Speaker Change: You know, we're a very unique animal, and then bringing to bear his lessons learned, his experiences on how we can do better. So, I would say the changes that have occurred have been small, so, you know, very small incremental changes, just making observations, making tweaks, making improvements.

Brett White: So I would say, um, the changes that have occurred have been small, um, so, you know, very small incremental changes, just making observations, making tweaks, making improvements. Um, you know, we're strong believers here that if you just do a little bit better, one to two percent a month, um, it, it adds up over time. And he's taken a very thoughtful approach. Um, you know, one of the motions that he's been very involved with is, um, really getting our middle market business up and running. Historically, you know, we have a very small group there, and historically we just haven't had a great, you know, specific middle market multi-location product to sell.

Brett T. White: We're strong believers here that if you just do a little bit better, 1% to 2% a month, it adds up over time, and he's taken a very thoughtful approach. One of the things that he's been very involved with is really getting our middle market business up and running. Historically, we had a very small group there, and historically, we just haven't had a great specific middle market multi-location product to sell. So he spent a lot of time working with sales leadership, ideating on what the right structure was, and developing that model for that team.

Speaker Change: We're strong believers here that if you just do a little bit better, 1-2% a month, it adds up over time. And he's taken a very thoughtful approach. One of the motions that he's been very involved with is

Speaker Change: Really getting our middle market business up and running historically, you know, we have a very small group there and historically we just haven't had

Speaker Change: a great, you know...

Speaker Change: specific middle market multi-location product to sell. So he spent a lot of time working with sales leadership.

Brett White: So he spent a lot of time working with sales leadership, um, ideating on what's the right structure, developing that model for that team. And so now that we actually have a product that works really, really well for that segment, I think we're well positioned, um, to grow there. Um, he's provided a lot of support to the inbound and outbound leadership. Uh, they're, they're cranking away. Um, so overall, I would say, you know, kind of providing ideas, thoughts, leadership, and just opportunities for incremental improvement, but no, no big dramatic changes. Great. Thanks.

Speaker Change: ideating on what's the right structure, developing that model for that team, and so now that we actually have a product that works really, really well for that segment.

Brett T. White: And now that we actually have a product that works really, really well for that segment, I think we're well positioned to grow there. He's provided a lot of support to the inbound and outbound leadership. They're cranking away. So overall, I would say kind of providing ideas, thoughts, leadership, and just opportunities for incremental improvement, but no big dramatic changes.

Speaker Change: I think we're well positioned.

Speaker Change: to grow there. He's provided a lot of support to the inbound and outbound leadership.

Speaker Change: They're cranking away. So overall, I would say, you know, kind of providing ideas, thoughts, leadership, and just opportunities for incremental improvement, but no big dramatic changes.

Mark William Schappel: Great, thanks. And then secondly, you know, last year Boomerang customers returning to the Weave platform were a big part of the Weave story, and I was wondering if there's anything to report on that front or this quarter. Yeah, it's,

Brett White: And then, uh, secondly, you know, last year boomerang customers returning to the Weave platform were a big part of the, uh, the Weave story. And it's wondering if there's anything to report on that front or on this quarter? Yeah, it's, it continues that the quantities continue at the same rate. I mean, we stopped reporting it because it was basically, you know, the same number plus a little bit more, um, but that phenomenon still occurs. We have, we have, you know, a competitor will call in and they'll say, hey, we can do everything we can do for a hundred bucks less a month, and the customer says, that's up great.

Speaker Change: Great, thanks. And then secondly, you know, last year Boomerang customers returning to the Weave platform were a big part of the Weave story and I was wondering if there's anything to report on that front or this quarter?

Brett T. White: Yeah, it continues; the quantities continue at the same rate. I mean, we stopped reporting it because it was basically, you know, the same number plus a little bit more. But that phenomenon still occurs.

Speaker Change: Yeah, it continues. The quantities continue at the same rate. I mean, we stopped reporting it because it was basically, you know, the same number plus a little bit more. But that phenomenon still occurs. We have, you know, a competitor will call in and they'll say, hey, we can do everything Weave can do for a hundred bucks less a month. And the customer says, that's great. And they quit and they go there and then they come right back.

Brett T. White: We have, you know, a competitor will call in and they'll say, hey, we can do everything Weave can do for a hundred bucks less a month. And the customer says, that's great. And they quit and they go there, and then they come right back because they find out that they just don't have the functionality, the depth of integration, the quality of the Weave solution. So that phenomenon is continuing.

Brett White: And they quit and they go there and then they come right back because they find out that they just don't have the functionality, the depth of integration, the quality, um, the weave solution. So that phenomenon's continuing.

Speaker Change: because they find out that they just don't have the functionality, the depth of integration, the quality of the Weave solution. So that phenomenon is continuing.

Brett White: Great.

Brett White: Thanks.

Operator: Thank you.

Speaker Change: Great, thank you.

Tyler Radke: The next question is from Tyler Radke from City. Please go ahead.

Operator: The next question is from Tyler Radke from Citi. Please go ahead.

Speaker Change: The next question is from Tyler Radke from Citi. Please go ahead.

Brett White: Hi, this is Kylie Johnson Tyler, because that's on the corner and I guess I'll start off with, you know, you raised the full year more than you be. I'd love to hear what gives you the better visibility into the second half and any comments on the macro, you know, changing relatives to last quarter. Thanks. Yeah, thanks, Kylie. Thanks for noticing. We are an important aspect of the business. We're on 10 consecutive quarters of being able to meet and exceed our guidance, and we take that seriously, providing, you know, so guys that we have a high conviction around.

Tyler Maverick Radke: Hi, this is Kylie. I'm from Tyler.

Speaker Change: Hi, this is Kylie on for Tyler. Congrats on the quarter, and I guess I'll start off with...

Kylie: Congratulations on the quarter. And I guess I'll start off by saying, you raised the full year more than you beat. I'd love to hear what gives you the better visibility into the second half and any comments on the macro changes relative to last quarter.

Kylie: You know, you raised the full year more than you beat. I'd love to hear what gives you the better visibility into the second half and any comments on the macro, you know, changing relative to last quarter. Thanks.

Alan Taylor: Yeah, thanks, Kylie. The thanks for noticing us is an important aspect of the business we've got. We're on 10 consecutive quarters of being able to meet and exceed our guidance, and we take that seriously, providing you know guys that we have a high conviction around. So it's just indicative of the fact that the business is executing well. The sales performance has been good. It continues to be incrementally better, as Brent mentioned.

Speaker Change: Yeah, thanks, Skylee. Thanks for noticing. It is an important aspect of the business. We're on ten consecutive quarters of being able to meet and exceed our guidance, and we take that seriously, providing, you know,

Brett White: So it's just indicative of the fact that the business is executing well. The stealth performance has been good. I continue to be incrementally better as Brent mentioned, and so we're confident in being able to roll out through and do so with high confidence. On the second thing regarding macro trends, they are out there, but I think one of the things that is unique to our small businesses are that dentists, optometrists, veterinarians, the medical industries, they are very stable and reliable businesses. They are not subject to being going out of business at anywhere near the same rate as typical SMBs.

Speaker Change: guys that we have a high conviction around so it's just indicative of the fact that the the business is executing well

Speaker Change: The stealth performance has been good. It continues to be incrementally better, as Brent mentioned. And so we're confident in being able to roll that through and do so with high confidence. On the second thing regarding macro trends,

Alan Taylor: And so we're confident in being able to roll that through and do so with high confidence. On the second thing regarding macro trends, they're out there, but I think one of the things that are unique to our small businesses is that dentists, optometrists, veterinarians, the medical industries, they are very stable and reliable businesses. They are not subject to going out of business at anywhere near the same rate as a typical SMB.

Speaker Change: They're out there, but I think one of the things that is unique to our small businesses are that dentists, optometrists, veterinarians, the medical industries, they are very stable and reliable businesses.

Speaker Change: They are not subject to going out of business at anywhere near the same rate as typical SMBs. And so from a macro perspective, you know, just overall, we still need to see our dentist. We still need to see our doctor. We need to take our dogs to the vet.

Alan Taylor: And so, from a macro perspective, just overall, we still need to see our dentists. We still need to see our doctors. We need to take our dogs to the vet.

Brett White: And so from a macro perspective, you know, just overall, we still need to see our dentists, we still need to see our doctor, we need to take our dogs to the vet. And those things aren't as impacted by the macro trends largely as many others. And so that's that's really good news for us. And I really think it's one of the things that the market doesn't fully understand or appreciate about weed is just the strength of the kind of customers and the resiliency through any kind of macro trends that may disrupt other segments of the economy.

Alan Taylor: And those those things aren't as impacted by macro trends as much as many others. And so that's really good news for us. And I really think it's one of the things that the market doesn't fully understand or appreciate about Weave, is just the strength of the kind of customers and their resiliency through any kind of macro trends that may disrupt other segments of the economy.

Speaker Change: And those things aren't as impacted by the macro trends largely as many others. And so that's really good news for us, and I really think it's one of the things that the market doesn't.

Speaker Change: What I fully understand or appreciate about Weave is just the strength of the kind of customers and their resiliency through any kind of macro trends that may disrupt other segments of the economy.

Brett White: Understood. That's helpful.

Kylie: Understandable, that's helpful. Next, I'd love to hear about any feedback you've had on the Call Intelligence product that you guys have released. And, you know, any margin comments you have on how that compares to the overall business and that attach rates you. So Collin tells you...

Speaker Change: Understood. That's helpful. Next, I'd love to hear about any feedback you've had on the call intelligence product that you guys have released. And any margin comments you'd have on how that compares to the overall business and the attach rates you anticipate.

Brett White: Next, I'd love to hear about any feedback you had on the call intelligence product that you guys have released. And, you know, any margin comments you have on how that compares to the overall business and that attach rates you anticipate. So call intelligence has been we as we roll out these products, we continue to listen to customers and making sure they are, they are meeting all of the needs of these customers. Call intelligence has some great promise, and as Brett mentioned, you know, we have a better. More historical data than just about anybody else with respect to the calls, texts, and emails associated with, you know, our 15 years in the business.

Alan Taylor: So Call Intelligence has been, we, as we roll out these products, continue to listen to customers and make sure that they are meeting all of the needs of these customers. Call Intelligence has some great promise. And as Brett mentioned, you know, we have better, more historical data than just about anybody else with respect to the calls, texts, and emails associated with our 15 years in the business.

Speaker Change: So, Call Intelligence has been, as we roll out these products, we continue to listen to customers and making sure that they are meeting all of the needs of these customers. Call Intelligence has some great promise, and as Brett mentioned, you know, we have a better...

Brett T. White: historical data than just about anybody else with respect to the calls, texts, and e-mails associated with, you know, our

Alan Taylor: And so, we're building out these models that allow us to train the AI so that we can show customers when calls are coming in, what their call patterns are, and what the emotion is around these calls. And so, we're excited about where that's going to go. It's still relatively early, and we continue to roll that out. And we believe over time, this will become a very important aspect of how our customers really come to understand how their front desk is interacting with their patients and how they can improve that. And really, it's about making sure that every opportunity for revenue that comes in via a phone call is actually capital.

Brett White: And so we're building out these models that allow us to train the AI so that we can show customers when calls are coming in what their call patterns are, what the emotion is around these calls. And so we're excited about where that's going to go. It's still relatively early, and we continue to roll that out, and we believe over time, this will become a very important aspect of how our customers really come to understand how their front desk is interacting with their patients and how they can improve that. And, really fundamentally, it's about making sure that every opportunity for revenue that comes in via phone call is actually capitalized on.

Brett T. White: 15 years in the business.

Speaker Change: And so we're building out these models that will...

Brett T. White: that allow us to train the AI.

Brett T. White: so that we can show...

Speaker Change: customers when calls are coming in, what their call patterns are, what the emotion is around these calls. And so we're excited about where that's going to go. It's still relatively early, and we continue to roll that out. And we believe over time, this will become a very important aspect of how our customers really come to understand how their front desk

Speaker Change: is interacting with their patients and how they can improve that and really, fundamentally, it's about making sure that every opportunity for revenue that comes in via phone call is actually capitalized on.

Brett White: Thank you.

Speaker Change: Thank you.

Mike Funk: The next question is from Mike Funk from Bank of America.

Operator: The next question is from Mike Funk from Bank of America. Please go ahead.

Speaker Change: The next question is from Mike Funk from Bank of America. Please go ahead.

Matt: Please go ahead. Hi, great.

Michael J. Funk: Hi, great. This is Matt on behalf of Mike.

Matt: This is Matt on for Mike. Thanks for taking the question. Great to hear about the Revenue Reexceleration and Specialty Medical with love. Some additional color on some of the other verticals, and more specifically, did any other verticals re-accelerate during the quarter, or was it just specialty medical? The re-acceleration with respect to the verticals is across the board. Specialty Medical is the fastest of those. Given the new integrations we've done in that space, as well as just the uptake, so we're pleased to see the revenue reexceleration across the board. Got it.

Speaker Change: Hi, great. This is Matt on for Mike. Thanks for taking the question. Great to hear about the revenue re-acceleration in specialty medical. Would love some additional color on some of the other verticals. And more specifically, did any other verticals re-accelerate during the quarter or was it just specialty medical?

Matt: Thanks for taking the question. Great to hear about the revenue re-acceleration and specialty medical. Would love some additional color on some of the other verticals, and more specifically, did any other verticals re-accelerate during the quarter, or was it just specialty medical?

Alan Taylor: The re-acceleration with respect to the verticals is across the board, especially medical is the fastest of those, given the new integrations we've done in that space as well as just the uptake. So we're pleased to see the revenue re-acceleration kind of across the board.

Speaker Change: The re-acceleration with respect to the verticals is across the board. Specialty Medical is the fastest of those, given the new integrations we've done in that space as well as just the uptake. So we're pleased to see the revenue re-acceleration kind of across the board.

Brett White: Thank you.

Brett White: And then just one quick follow-up on Weave Enterprise, anything on just the early learning and early reception since the launch, and then anything we should know in terms of the nuances in terms of the go-to-market plan? Not a whole lot of insights since the launch. You know, sales cycles are for mid-market are much longer than for the single location SMB. So we are demoing it. Now we're kind of in full demo mode. This is the primary product. Well, it is the only product that we're pointing at our middle market opportunities, and that pipeline continues to build.

Speaker Change: Got it, thank you. And then just one quick follow-up on Weave Enterprise. Anything on just the early learning and early reception since the launch and then anything we should know in terms of the nuances in terms of the go-to-market plan?

Speaker Change: Not a whole lot of insights since the launch. You know, sales cycles are, for mid-market, are much longer than for the single-location SMBs.

Speaker Change: We are demoing it. Now we're kind of in full demo mode.

Speaker Change: This is the primary product, well it is the only product that we're pointing at.

Speaker Change: Our Middle Market Opportunities. And that pipeline continues to build. The interest in the product is high. When we show practice leaders the functionality, the multitasking capability, they express

Brett White: The interest in the product is high. When we show practice leaders, functionality, the multitasking capability, they express sincere interest. So now we just need to continue to build the pipeline and close those deals.

Brett White: Sorry, what was the second part of the question? Oh, it's just the nuances between the go-to-market, which you address. Yeah, it's a totally different sales cycle. It's a different type of sales team. Yeah, so that's.

Speaker Change: Oh, it's just the nuances between the go-to-markets, which you addressed.

Brett White: Thank you.

Henry Dane: The next question is from Henry Dane from Goldman Sachs.

Matt: Got it. Thank you.

Operator: And then just one quick follow-up on Weave Enterprise. Anything on just the early learning and early reception since the launch? And then anything we should know in terms of the nuances in terms of the go-to-market plan?

Brett T. White: [inaudible] Not a whole lot of insights since the launch. You know, sales cycles for the mid-market are much longer than for single-location SMBs. So, we are demoing it. Now we're, you know, kind of in full demo mode.

Henry Dane: Please go ahead. Hey guys, congrats on the great quarter or another great quarter. Just one for me on NRR, another quarter of inflection to 97%.

Brett T. White: This is the primary product. Well, it is the only product that we're pointing at our middle market opportunities. And that pipeline continues to build. The interest in the product is high. When we show practice leaders the functionality, the multitasking capability, they are, they express sincere interest. So, now we just need to continue to build the pipeline and close those deals.

Brett T. White: Oh, it was just the nuances between the go-to-markets, which were... Yeah, yeah, it's totally different.

Brett T. White: Yeah, yeah, it's a totally different sales cycle. It's a different type of sales team.

Henry Dane: Can you just break down where that inflection is coming from just between nutrition, upsell, cross-el, and where investors could see that metric going the future? Yeah, Henry, thank you. We've seen our NRR size 105% in past quarters. We certainly think we want to get above 100% again, but the things that are driving that are kind of across the board. We don't break them out in a quantitative way, but it includes payments. It includes our upsells. As we mentioned, we're seeing products like forms and bulk messaging and insurance verification become a substantial part of the growing revenue streams that we have and that are available for upsell.

Operator: Yeah, so that's there you go. Thank you. The next question is from Henry Dane from Goldman Sachs. Please go ahead.

Operator: The next question is from Henry Dane from Goldman Sachs; please go ahead. Hey guys, congrats on the great co-

Speaker Change: want to get above 100% again.

Henry Dane: Yeah, Henry, thank you. We've seen our NRR as high as 105% in recent quarters. We certainly think we want to get above 100% again. But the things that are driving that are kind of across the board. We don't break them out in a quantitative way, but it includes payments.

Speaker Change: But the things that are driving that are kind of across the board. We don't break them out in a quantitative way, but it includes payments.

Alan Taylor: It includes our upsells. As we mentioned, we're seeing products like forms, bulk messaging, and insurance verification become a substantial part of the growing revenue streams that we have and that are available for upsell. So those are the areas that we see coming on, and we continue to develop new ones. We call intelligences in the works there that will become, we're sure, a nice element of upsell, and those are the things that are driving that. So it is a great inflection point, it's nice to see, and we intend for it to continue.

Speaker Change: It includes our upsells. As we mentioned, we're seeing...

Speaker Change: You know, products like forms and bulk messaging and insurance verification become a substantial part of the growing revenue streams that we have and that are available for upsell.

Henry Dane: So those are the areas that we see coming on, and we continue to develop new ones. We've made call intelligences in the works there. They will become, we're sure. with a nice element of upsell. And those are the things that are driving that. So it is a great inflection point. It's nice to see, and we intend for it to continue. Great. Thanks for the color.

Speaker Change: It's a nice element of upsell, and those are the things that are driving that. So it is a great inflection point, it's nice to see, and we intend for it to continue.

Speaker Change: Great, thanks for the color.

Operator: There are no further questions at this time.

Brett T. White: There are no further questions at this time. I would like to turn the floor back over to Brett White for closing comments.

Brett White: I would like to turn the floor back over to Brett White for closing comments. Okay. Well, thank you all for joining the call. And thank you again so very much to the Weave team. I'm excited to continue build on the progress that we've made to deliver improved outcomes for both our customers and our shareholders, overcoming quarters. Thank you.

Speaker Change: There are no further questions at this time. I would like to turn the floor back over to Brett White for closing comments.

Brett T. White: Okay, well, thank you all for joining the call. And thank you again, so very much to the Weave team. I'm excited to continue to build on the progress that we've made to deliver improved outcomes for both our customers and our shareholders in the coming quarters. Thank you.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Brett T. White: Okay, well thank you all for joining the call and thank you again so very much to the Weave team. I'm excited to continue to build on the progress that we've made to deliver improved outcomes for both our customers and our shareholders over coming quarters. Thank you.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Brett T. White: [inaudible]

Brett T. White: [inaudible]