Q3 2024 Weave Communications Inc Earnings Call

Speaker Change: The New York Times

Speaker Change: Ladies and gentlemen, thank you to the application of the Sleaser Main Online, your conference will begin shortly. Again, I do appreciate your patience. Please remain online, your conference will begin soon. Thank you.

Speaker Change: Episode 2

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Speaker Change: Good day, ladies and gentlemen, and welcome to weave 3rd quarter 2024 financial results conference call. All lines of them placed on a listen only mode and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero on your telephone, keep had to reach a live operator.

Speaker Change: At this time, it is my pleasure to turn the floor over to your host, Mark McReynolds, head of industrial relations, sir. The floor is yours.

Mark McReynolds: Thank you, Kat. Good afternoon and welcome to Weas third quarter 2024 earnings call.

Mark McReynolds: with me on today's call our 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.

Mark McReynolds: These forward-looking statements are based on management's current use and expectations. Until certain assumptions made out of today's date and are subject to various risks and uncertainties described in our SEC filings.

Mark McReynolds: We've disclaimed any obligation to update or revise any for looking statements.

Mark McReynolds: Further on today's call we'll also discuss certain non-gap metrics that we believe aid in the understanding of our financial results.

Mark McReynolds: And my set of ways noted, all numbers we talk about today will be on a non-cap basis.

Mark McReynolds: 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.

Mark McReynolds: As well as the earnings presentation on our investor-elession on our investor-relations website at investors.getweave.com With that, I will now turn the call over to Brett.

Brett White: Thank you, Mark, and thanks to everyone for joining the call today. I'd like to start with a few financial highlights from Q3.

Brett White: We delivered another quarter of solid top line performance and significant improvements in gross and operating margins and free cash flow. We also achieved another major performance milestone, reporting positive non-gap operating income for the first time in the company's history.

Brett White: Revenue for Q3 was $52.4 million, representing over 20% Eurover growth, and $1.2 billion above the mid-point the guidance range we provided in July.

Gross Margin reached 72.5% and improvement from last quarter and over 300 basis points greater than Q3 of last year, marking our 11th consecutive quarter of Gross Margin improvement.

We've mission is to enhance healthcare experiences for both patients and the practices that serve them. We deliver an all-in-one customer experience and payment software platform specifically designed for small and medium-sized healthcare practices.

Our solution enables healthcare providers to focus on patient care, but we help optimize office operations, streamline billing and payment processing, and drive practice growth for improved patient communication and engagement.

Our current focus is on dental, opometry, veterinary and special medical verticals, which we estimate is an addressable market exceeding $7 billion in the US alone.

Brett White: Specialty Medical, which includes family practice, medspa, plastic surgery, and physical therapy, was our fastest growing category again in Q3.

Our origins are in helping practitioners grow their businesses by effectively attracting, engaging, and retaining patients.

Brett White: The integration of FinTech Solutions, like payment processing, buy now payover time and payment plans, is a natural progression to help practitioners accelerate collections and increase acceptance rates of additional services.

Brett White: With we've billing and payment requests are seamlessly integrated into communication workflows using the practice's trust-to-fone number and domain. This approach streamlines payment timelines, reduces accounts receivable and write-offs, and further supports practice growth and profitability.

Brett White: Healthcare providers often would out-dedicated IT, business intelligence, finance, or marketing teams, rely on intuitive software like weave to succeed.

are platform-integrate seamlessly with access management systems, enabling greater personalization, more automation and improve data accuracy.

Speaker Change: Last week we announced availability of the new Weave platform, which is the most significant product launch in our company's history. This is a combination of a multi-year effort that holds great strategic importance for Weave and our customers.

Now available across all customer locations, the new we've platform strengthens our market position with a robust, scalable and cutting edge technology infrastructure that enables us to accelerate innovation.

Speaker Change: We've been at the forefront of administrative AI solutions for healthcare practices, and an AI-powered we've assisted through the new platform. Our unique advantage is that we have more than decades of patient interactions available to train large language models.

This unique training dataset includes billions of records like phone calls, voice mail and SMS messages.

Speaker Change: Alright, AI powered features provide immediate customer value.

McKinsey reports that AI tools could automate nearly 45% of administrative tasks in the health care sector, potentially saving $150 billion annually.

Speaker Change: We've Assistant Helps Craft Personalized Response is to reviews, write professional brand-today emails and automate tasks like message tagging and voicemail transcriptions.

Our new call intelligence product leverages a custom AI model to extract actionable insights from called data.

To keep their businesses running smoothly, our customers must manage communications and payments workflows simultaneously. The new Weed Platform and Proves Practice Operations by consolidating tasks into a more unified system.

It features a modern user interface that prioritizes versatility and ease of use, and is a premium dining daily tax with few other steps and clicks.

Speaker Change: Popout Texting in Team Chat, the Los users to Text Patience Chat with staff except a phone call and do the calendar all at the same time.

Speaker Change: The user can toggle between locations to access one or all locations and configure forms, messages and other settings once for single location or multiple locations with ease.

Speaker Change: The newly platform features an enhanced user interface which can now expand to full screen for a comprehensive view or shrink to fit seamlessly alongside the practices system of record.

and Fully Customizable Dashboard places the most essential elements front and center, providing a helpful overview of the day.

The new week platform is available via mobile app, desktop app or any browser. Security and software updates are installed automatically, ensuring the platform stays up to date without any extra effort on the part of our customer.

Speaker Change: I invite you to watch a two-minute video on our website to see firsthand the exciting leap forward our new platform represents for our customers. Take a look at getweave.com slash new.

Speaker Change: Last week we also launched an enhanced email marketing tool on the new We've Platform, enabling the easy creation of professional, on brand emails with a drag and drop composer, prebuilt templates and free stock images.

E-Mills can be sent from the trusted business domain to ensure professionalism and help avoid spam filters. Our I-I-I-I power of weavacist and helps craft content while advanced filters target the right audience.

The new week's platform also introduces a new specialized user interface for veterinary practices. These UI enhancements built in collaboration with veterinary professionals, streamline daily operations, and improve the experience for clinic, staff, and clients.

By making pets the primary profile across the We've platform, the update enabled more personal service and allow front-dest staff to quickly access essential pet details.

Speaker Change: In addition to enhancements to our user experience and AI power features, the new weaves platform opens up a valuable opportunity for seamless integration of payments functionality into communication workflows via the trusted practice phone number.

Speaker Change: By embedding billing and payment features throughout the entire patient journey from appointment scheduling to post visit text-to-pay notifications, we simplify and enable customers to accelerate the billing and collection process.

With weaf payments, our customers can easily allow their patients to pay using their preferred methods.

Practice is consent payment request via text to pay, accept payments through credit cards or ACH direct debit, and offer online and in-person payment options like online bill pay, scan to pay, and mobile tap to pay.

Speaker Change: Practices can also keep payment methods on file and provide flexible options such as buy now pay over time and payment plans. This empowers practices to increase procedure acceptance rates, optimize billing operations, improve collections on past two accounts and reduce write-ups.

Speaker Change: In Q3, we've also announced payment reminders. This new feature allows our customers to collect more outstanding balances with less effort by turning each week payment invoice or text the pay request into an automated collection campaign.

As we announce last quarter, the new week platform powers weave enterprise, our solution designs specifically for multi-location practices.

Approximately one-third of our active locations are part of multi-location group and we've enterprise offers advanced capabilities like a unified inbox for appointment and forms, centralized management tools, region-specific reporting, and robust payment and collection features.

We're very excited to share at an early success story for the new week platform in our enterprise product.

Speaker Change: Earlier today, we announced that Affordable Care, America's largest dental support organization for tooth replacement services, has selected weave as the platform of record for patient engagement and payments across its supported dental practices.

The Affordable Care Chows Wee for our ability to integrate seamlessly with their databases, streamline and automate patient engagement, and provide new digital payment options that fit naturally into patient communication workflows.

Speaker Change: Since implementing we've affordable care pilot locations have achieved measurable improvements in operational efficiency through online scheduling and digital forms by also seeing boost and patient acquisition and treatment acceptance rates.

These practices report increased cash flow and revenue capture per location, driven by flexible payment options that are that optimized revenue cycle management and enhanced overall patient experience.

To further drive growth in the multi-location space, we've recently added a seasoned leader with 20 years of industry experience to head our multi-location sales team.

His experience, strategic vision, and strong market relationships will play a crucial role in weaves presence, particularly among dental service organizations or the SPS.

Speaker Change: On the partnership front, we continue to make progress, our authorized and supporting innovations with leading practice management systems and powers practices to automate and personalize their communications and play a critical role in driving growth across our target markets.

Speaker Change: This year, we have expanded our addressable markets for new integrations with e-clinical works, Athena Health, next gen, easy vet and other practice management systems.

Speaker Change: We've also deep in existing integrations with dentrix-assent, EagleSoft and Fused.

to include reading and writing patient information, appointment details.

and Measure Entries to streamline payments collection helping practices for their enhanced efficiency and accelerate growth.

Even more compelling, we have advanced our strategic approach by forming deeper commercial partnerships. In June, we announced a strategic agreement with Patterson Dental offering one of the most comprehensive integrations in the market and enabling co-marketing and co-selling initiatives.

Speaker Change: Since then, close collaboration between Weave and Patterson Leadership has enhanced value for our shared customers, resulting in improved conversion rates at every stage of the sale cycle and booking's graph.

Finally, we've continues to earn recognition for our dedication to delivering exceptional customer experiences and the outstanding performance of our platform and team.

and G2's fall 2024 report. We ranked first in 21 categories and was once again named V-Liter in the Grid for Patient Relationship Management and was listed among the top 50 software products for small businesses.

Additionally, we was named an ink power partner, recognizing our impact and helping businesses start Ron and Growl.

We are committed to fostering an exceptional workplace and we have now great place to work certified in the US for six consecutive year and for the first time in India.

In closing, I'm incredibly proud of the weaved teams achievement in Q3 as we continue our momentum from the first half of the year. We drove strong top line growth, made solid progress and profitability and brought to market some truly innovative new products.

To success, reflexes are commitment to putting our customers first and constantly delivering solutions that meet their needs.

Speaker Change: I want to sincerely thank our customers, partners, team members and shareholders for their ongoing supportive weight.

Speaker Change: with that, I'll hand the call over to Alan to dive deeper into the financial results and share our outlook.

Alan Taylor: Thanks Brett, good afternoon everyone.

I'm excited to share some additional insights on our financial performance this quarter.

Alan Taylor: In Q3 we continue to execute well and we're pleased with our results.

As Brett mentioned, we are excited about hitting $1.4 million in positive non-gap operating income. This operating income result represents a $2.1 million beat.

Over the midpoint of the guidance range we provided last quarter. We delivered the significant milestone of non-gap operating income first time in the company's history while achieving third quarter revenue of $52.4 million and maintaining a revenue growth rate of over 20%.

Alan Taylor: Revenue Growth this quarter was largely fueled by new customer acquisitions, with continued momentum from our special Dmitrika vertical, which is growing at more than twice the rate of overall revenue growth, with notable success among medspas and general practitioners.

are never ever in a retention rate improved to 98% in Q3, up from 97% last quarter.

Our upsell products have continued to perform well. We've continued to increase the number of payments customers and we've also benefited from price adjustments which are periodically made across customer cohorts and products as we continuously deliver additional value and functionality like the meet new we platform.

Our gross revenue retention rate remains strong at 92%. Placing us among the top performers for SMB retention. We've gross revenue retention rate is consistently ranged between 91% and 94% each quarter over the past four years.

Alan Taylor: Transitioning to a deeper look at our operating results as a reminder of referring to non-gap results in a state otherwise. In Q3,

We achieved solid improvements across the board. Our gross margin reached 72.5% greater than a 300 basis point increase year over year. Cost of revenue rose by only 8% year over year while revenue grew by over 20%.

Our total operating expenses as a percent of revenue improved to 70% this quarter, down from 74% in Q3 of 2023, reflecting our continued focus on optimization.

Alan Taylor: Sales and Marketing expenses came in at $19.4 million or 37% of revenue. A slight decrease from 38% in the same period last year.

Research and Development Expenses for the quarter total $8 million. Representing 15% of revenue, down from 16% of revenue a year ago.

Alan Taylor: Additionally, General in Administrative Expenses were $9.2 million or 17% of revenue compared to $8.3 million or 19% of revenue in the prior year period. These improvements highlight our focus on efficiency and productivity as we scale our operations.

As previously mentioned, operating income for Q3 was $1.4 million, and improvement of $3.2 million compared to last year, and $1.6 million higher, then the top end of the guidance that we gave in July.

Alan Taylor: The corresponding operating income margin of 2.7% is a significant improvement from the operating loss margin of 4.2% last year.

Alan Taylor: Our net income was $2.1 million or $3 per share in the third quarter, based on $72 million weighted average shares outstanding.

This is compared to an at loss of $1 million or 1 cent per share last year. This represents a $3.1 million improvement due to revenue growth and operating efficiencies.

Alan Taylor: Operate adjusted to EBITDA was positive $2.2 million dollars, a $3.2 million improvement year over year. Adjusted EBITDA margin of positive 4% was a significant improvement compared to the negative 2% margin reported a year ago.

Schifting the focus to the balance sheet and cash flow, we ended the third quarter with 98.2 million dollars in cash and short-term investments.

Alan Taylor: Cashflow generated from operations was $4.5 million in the third quarter and $7.5 million a year today.

Precast Flow was $3.5 million in third quarter, representing year over your growth of 70% and $4.2 million year to date.

Turning to our outlook, we are raising our guidance for the full year 2024, and we expect total revenue to be in the range of $202.7 million to $203.7 million.

We also expect to produce positive non-gap operating income for the full year 2024.

For the fourth quarter of 2024, we expect total revenue in the range of $52.6 million to $53.6 million and non-gap operating income in the range of $.9 million to $1.9 million.

We expect to have a weighted average share count of approximately 71.6 million shares for the full year.

In summary, we've continued to execute well in Q3 and we're excited about the success we're having across all the verticals that we serve.

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

Speaker Change: Thank you, the floor is now open for questions. If you do have a question, please press star 1 on your telephone keypad at this time. If your question has been answered, you can remove yourself from the queue by pressing 1. Again, ladies and gentlemen, it's star 1. Please hold while we pull.

Speaker Change: Hello, first question comes from Brett. Brent.

Speaker Change: Braceland from Piper Sandler Gohead Brent

Thank you, good afternoon, great to see the profitability crossover this quarter. I had two questions if I could hear one. Wind, new Patterson relationship here start to have a bigger impact on the pipeline, top of funnel and then two.

Alan Taylor: I was hoping you could talk a little bit about specialty medical, what's driving them mental in there and maybe more specifically could you frame how the new Weave Enterprise Platform could expand to reach into hospitals. It looks like hospitals are now one of the areas you could go after with that new platform. So thanks.

Speaker Change: Alright, thanks, Brett.

Right, this down. Okay, let's start with Patterson when we expect that to start affecting kind of funnel. It's happening now. So we saw, you know, we originally now, we built the integration. We announced the partnership. We went to their sales conference, trained about 700 of their reps.

and then we've gone to visit them.

And train their sales teams. We, I think we've done three or four of those and we're actually seeing it show up in the results. Now we're getting higher conversion rates all through the funnel. We're getting growing bookings. So the.

Speaker Change: Weave sales on the Patterson platform have definitely increased and we expect that momentum to continue.

Perfect. And then could you talk a little bit about the specialty medical and you know maybe a little bit more about Weave Enterprise. I do see you're targeting hospitals now on the website. I'd love to understand that opportunity. I know historically you haven't addressed you know larger hospitals and I'd love to know what Enterprise opens up for you particularly given that proof point with affordable care in their 450 locations.

Sure. So specialty medical is really quite fragmented. So the success we're seeing there is really around building the integrations. As we build the integrations, there's really a pent-up demand, I think, to move off of a lot of their point solutions onto an integrated platform. So that's really why we're seeing a lot of success there. As we roll out the integrations, as we get the payments integrations written and the sales teams trained, we're seeing a lot of success there. So I expect that to continue to grow. Actually specialty medical in aggregate is a larger market.

Speaker Change: than dental, opto, and vet. So we're very excited about what we're seeing there. And as far as hospitals, you know, we're really focused on

small and medium size practices. So

The multi-location, we view the multi-location opportunity as just an aggregation of small and medium-sized locations. So as you mentioned, Affordable Care's 450 locations, it's a very large enterprise and we're seeing great opportunity with those. The new Weave Enterprise platform really fits well for their needs and their use case and the Affordable Care win really proves that out. Once you bring a multi-location, a modern multi-location product.

It's just a winning combination, and in fact...

Speaker Change: You probably noticed in my comments or in the press release, Affordable Care selected us not only for the engagement solution, the communication engagement solution, but also all of their payments.

which is a terrific win. So we're not really at this point targeting large hospitals. We've got more than enough opportunity just in the single location and the multi-location businesses.

Speaker Change: Very clear, helpful color. Thank you.

Thank you.

And our next question comes from Alex Glar from Raymond James. Go ahead, Alex.

Great, thank you. Alan, just starting off the first question on the outlook for NRR to take nicely the last couple quarters. Can you just help frame where you see some of the biggest opportunities to get that figure even higher? I know you talked about payments being a big bucket. What are some of the other lowest hanging fruit as you look at that metric in particular? Thanks.

Yeah, thanks Alex. So, NRR payments clearly is one of the big ones with the increased take rate that we're seeing through

Partnerships like Patterson as well as just across our sales team. We continue to expand payments. It's growing faster than our business as a whole The revenue growth as a whole and so that will be a key component. We're also introducing some very great

Speaker Change: upsell products that we've talked about with.

Speaker Change: call intelligence and bulk messaging and insurance verification and forms. These are kind of coming into their own to be a substantial part of the quarterly revenue that's helping us to grow our NRR. And so those are the things that we are going to continue to emphasize. We're going to continue to improve those so that the downgrade rates improve as well. And those are really the focus areas for increasing the NRR.

Alex, I would add that as we build out more of these integrations, we have greater opportunity within our install base to move from customers who are maybe running Weave standalone in a non-integrated way onto an integrated platform and then and when that happens they just have access to more functionality and it's just a lot stickier and obviously it's an Epson.

Speaker Change: Great. Oh, that's a great color.

Speaker Change: Thank you.

Maybe a follow-up for you, Brett, just on specialty medical broadly. So four cup core sub-verticals today. I think you talked about going to eight. How is your sales coverage broadly for that opportunity?

Speaker Change: And then what do you need to see? It's already growing twice as fast as kind of the overall organization. What do you need to see to kind of take that formal go-to-market hiring from four to eight of the sub-verticals to something north of 10 or 20 over the next couple of years? Thanks.

Speaker Change: Yeah, so, you know

Speaker Change: Again, we keep coming back to this. Integrations are really, really important. And so in order for us to enter into a new vertical,

We want to be able to integrate with the practice management software that is predominant in that subvertical. We want to make sure that we have

really good product market fit. And as you can kind of tell, the way we've been rolling out verticals over the last couple years, we're quite thoughtful about it. So we're going to be adding new verticals, but

not just adding them for adding sake, but we're gonna make sure we got good product market fit, adding integrations, and then delivering more and more value. You know, outside of the verticals where we currently are, it is actually very, very fragmented. So the market is there. It's ripe for us to bring our solution into those.

Speaker Change: those verticals and we just want to do it in a very thoughtful and successful way so we have kind of a win-win relationship with our customers on day one.

I would just add to Alex, we are seeing inbound interest from customers for whom we do not have an integration.

These folks are pretty starved for a solution like Weave to communicate with their patients. And so it represents a great opportunity for us to know where the biggest interest is and make sure that we've got on our roadmap the integrations that will even better serve them in the future.

Great. Maybe just a quick follow-up on both those about the inbound. Are you seeing an increase in inbound interest from those fragmented practice management systems that they're looking to build the integrate? They're being more proactive saying, hey, can we build the integration to you all in the process? Is that at all inflected from your seat?

Yeah, very much so.

Speaker Change: and yeah and I'll add another little anecdote there when when we go into an event you know an on-site event trade show whatever it may be and we you know put up in a banner in our in our booth it says you know we now integrate with XYZ

We get a lot of attention. So there's definitely demand. And the other great thing is, you know, a year and a half ago,

You know, a lot of practice management software kind of viewed us as a competitor, and they were not super interested in working with us. And really, it took a mindset shift on our side.

to show that we're interested in a win-win relationship with the PMS vendors. And it's almost down to 180, where now we have practice management software vendors coming to us and asking us to integrate, and it's really just...

building the queue to write the integrations and then develop the go-to-market plan. So we're quite optimistic on moving into new verticals and deepening the quantity and then depth of the integrations that we have.

Speaker Change: Thank you both.

Thank you again, ladies and gentlemen, to ask a question at Star 1. And our next question comes from Parker Lane from SIFL. Go ahead, Parker.

Hey guys, thanks for taking the question here. Alan, you alluded to some price adjustments that you periodically do. I'd love to get some more color on where those took place. Longer term, you're bringing a lot of functionality to the table here. How should we think about your ability to extract more price for some of these more premium-type features that you're bringing to the table?

Speaker Change: Yeah, thanks Parker.

Price adjustments are something that we do every quarter.

We manage those usually on a cohort basis.

of when the customers renew, but they also are based on product changes. We're always experimenting with bundles. So, we have found that so long as we are delivering value just like the new WE platform, that our customers are tolerant of these price increases, particularly, you know, we're just exiting a fairly high inflationary period.

So yeah, we will continue to do that and manage those prices, making sure that we are delivering the value that warrants that. And in terms of extracting, you know, it's all about wallets here.

Payments helps us with that.

Getting into the workflows of these customers is key. That includes the integrations, the better that we're able to integrate with.

payments and to record those payments to eliminate reconciliation efforts at the office.

Speaker Change: to just improve the lives of the office staff, that's where we win. And they know that we represent one of the best solutions out there, and so they're willing to pay for that so long as we continue to deliver, and that's what we intend to do.

Speaker Change: and the American Heart Association. If you'd like to receive a copy of this book, please visit our website at www.amherts.org. Thank you for watching. We hope you enjoyed the lecture. If you did, please subscribe for more. And if you want to support our work, please give us a thumbs up and leave a comment. See you next time. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye.

One thing I would add is the new Weave platform is a vastly superior product.

to the legacy app in kind of every possible way. And right now it's available to all of our customers existing and new customers at no additional charge.

Speaker Change: Even though it's a significantly more valuable product, so I think we've got opportunity there in the future, but but right now it's it's it's just an upgrade at no additional charge.

Speaker Change: Brett, just to follow up on that, is there any timeline by which customers will sort of adopt that newer platform? Is there going to be a big changeover moment for everyone? Is it a case-by-case basis, just varying from a change management standpoint, how you're handling that?

Brett White: Yeah so it's it's our desire to move customers over sooner rather than later just so they can get a lot of the benefits. I mean one of the great benefits is they get updates to the software as they're developed and pushed out as opposed to you know having to go in and update their app so they kind of have to constantly have the best

That solution that's available to them. So it's it's to their benefit to move over quickly, but we understand that there will always be

folks who are just comfortable with what they're using and and you know we don't have any plans at this time to kind of force people over we just hope that they they get the word through our marketing initiatives and

and our pop-ups that, hey, give us a try and I think you'll like it and, you know, sooner is better for everyone.

Speaker Change: Understood. Thanks again.

Again, ladies and gentlemen, it's star one to ask a question. And our next question comes from Mike Funk from Bank of America. Go ahead, Mike.

Speaker Change: Great, thanks. Hi, this is Matt on for Mike Great to see the the profitability this quarter and continued gross margin expansion

Speaker Change: Maybe if you could just help us frame some of the drivers for...

potential future margin improvement as a whole and then maybe help us think about where terminal gross margins can end up in a couple years out. Thanks.

Thanks, Matt. Yeah, the gross margin has been a great story. As we mentioned, it's 11 quarters of continued expansion.

The drivers there continue to be around the payments product on the revenue side. As we continue to extend that payment product into our existing customer base as well as new customers, that's a positive factor for gross margin expansion.

Speaker Change: the phone component of our GoToMarket.

comes off amortization after three years and so it sets us up with just kind of a

A structural improvement as those phones come off amortization and customers stay with us as we go along. So that that's an improvement. And then just everything every other category. We've got a support organization that is focused on delivering world class service. Well, managing costs, they're putting into place new tools processes in the last quarter that are just allowing us to do a better job of servicing the customers without having to grow that staff.

Speaker Change: and when an engineering organization that is focused

Speaker Change: bandwidth providers that provide to us. They're doing a great job of managing those costs and our scale helps us with some efficiencies there as well.

Speaker Change: Long term, with respect to the gross margin, we see ourselves as a 75-80% gross margin company.

And that's where we know we can get to as we continue to go on and just improve payment success and keep a vigilant eye on all of the costs.

Super helpful. Thank you.

Thank you.

And at this time, there are no more questions. I would now like to turn it back to management for any closing remarks.

Yeah, I'd like to just kind of circle back on a question we got at the beginning of the call, and it was a question around, you know, kind of how our, our

Speaker Change: relationship with Patterson was turning out. And one observation I'd like to share, which is

very exciting for us is that

The Adoption of Weave Payments at the Time of Sale of the Weave Platform

Speaker Change: on Patterson is.

very, very high. It's higher than our core business, so that would be adoption of payments at sale of the software, and so that's a very encouraging sign as well.

Speaker Change: So with that, with that said, I'd like to thank.

the entire WEAVE team.

I'd like to thank everyone, all of our shareholders, for your support. Thank you for joining the call. We here are really 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, so thank you.