LEHI, Utah—Erin Goodsell, Chief Legal Officer and Corporate Secretary of Weave Communications, Inc. (NYSE:WEAV), recently sold 15,000 shares of the company's common stock. The transaction, executed on November 20, 2024, was conducted under a Rule 10b5-1 sales plan that Goodsell adopted on May 16, 2024. The shares were sold at a volume-weighted average price of $13.86, with actual sale prices ranging from $13.53 to $14.01, amounting to a total transaction value of $207,900.
Following the sale, Goodsell retains direct ownership of 596,184 shares in the company. The transaction was disclosed in a filing with the Securities and Exchange Commission on November 21, 2024.
In other recent news, Weave Communications Inc reported a significant year-over-year revenue increase in its third quarter of 2024, reaching $52.4 million and surpassing the expected guidance by $1.2 million. This robust financial performance marked a milestone for the company with its first positive non-GAAP operating income of $1.4 million. The company's growth is attributed to its advanced platform features, strategic partnerships, and an expanded market presence.
Weave's gross margin improved to 72.5%, maintaining an 11-quarter streak of growth. The net revenue retention rate increased to 98%, with a gross revenue retention rate of 92%, demonstrating improved operational efficiency. The company also highlighted a strong cash and short-term investments position of $98.2 million.
Looking forward, Weave raised its 2024 revenue guidance to between $202.7 million and $203.7 million and expects continued positive non-GAAP operating income. The company anticipates Q4 2024 revenue to be in the range of $52.6 million to $53.6 million and plans to expand from four to potentially over 20 subverticals in the coming years.
Piper Sandler confirmed its Overweight rating on Weave Communications with a steady price target of $17.00, based on meetings with Weave's top executives. The firm's positive outlook is based on Weave Communications' strategic direction, which includes plans for new products, partnerships, and payment solutions. These initiatives are expected to serve as catalysts for the company's performance, particularly in the 2025-2026 timeframe.
InvestingPro Insights
To provide additional context to Erin Goodsell's recent stock sale, let's examine some key financial metrics and insights for Weave Communications (NYSE:WEAV) from InvestingPro.
Weave's market capitalization stands at $1 billion, reflecting its position as a notable player in the communications technology sector. The company has demonstrated strong revenue growth, with a 20.54% increase over the last twelve months as of Q3 2024, reaching $195.84 million. This growth trajectory aligns with the company's expanding market presence and could be a factor in the recent stock price performance.
InvestingPro Tips highlight that Weave has experienced a significant price uptick over the last six months, with data showing a 56.75% price total return over that period. This substantial increase may have influenced the timing of Goodsell's stock sale, potentially capitalizing on the stock's strong performance.
Another relevant InvestingPro Tip notes that 6 analysts have revised their earnings upwards for the upcoming period. This positive sentiment from analysts could suggest improving financial prospects for Weave, which may be of interest to investors considering the stock's recent momentum.
It's worth noting that while Weave is not currently profitable, with a negative operating income of $32.03 million over the last twelve months, analysts predict the company will be profitable this year. This expectation of turning a profit could be a significant milestone for Weave and may impact future stock performance.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 5 more InvestingPro Tips available for Weave Communications, providing a deeper understanding of the company's financial health and market position.
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