Crosslink Capital Inc., a significant shareholder in Weave Communications, Inc. (NYSE:WEAV), recently offloaded a substantial portion of its holdings in the company. According to a recent filing, Crosslink sold a total of 212,031 shares of Weave Communications stock over a three-day period from November 19 to November 21. The shares were sold at prices ranging from $13.61 to $13.86 per share, resulting in a total transaction value of approximately $2.9 million.
Following these transactions, Crosslink Capital now holds 7,628,924 shares of Weave Communications. The sales were conducted indirectly, with the shares held for the benefit of investors in funds advised by Crosslink. These transactions reflect Crosslink's ongoing management of its investment portfolio, though the firm has not publicly disclosed its reasons for the sales.
In other recent news, Weave Communications reported significant revenue growth in its third quarter of 2024, with a year-over-year increase to $52.4 million, exceeding the expected guidance by $1.2 million. This robust financial performance also marked the company's first positive non-GAAP operating income of $1.4 million. Piper Sandler maintains an Overweight rating on Weave, citing confidence in the company's new leadership and strategic growth plans, which include new products, partnerships, and payment solutions.
The company's gross margin improved to 72.5%, continuing an 11-quarter streak of growth. Furthermore, Weave's net revenue retention rate increased to 98%, demonstrating improved operational efficiency. The company also reported a strong cash and short-term investments position of $98.2 million.
Looking ahead, 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 also anticipates Q4 2024 revenue to be in the range of $52.6 million to $53.6 million. These recent developments underscore Weave's commitment to growth and operational efficiency.
InvestingPro Insights
Weave Communications' recent stock performance and financial metrics provide additional context to Crosslink Capital's decision to reduce its stake. According to InvestingPro data, Weave's stock has shown strong momentum, with a 52.55% price total return over the past six months and a 22.29% return in the last three months. This upward trend might have presented an opportune moment for Crosslink to realize gains on its investment.
Despite the positive stock performance, Weave faces some financial challenges. An InvestingPro Tip reveals that the company is not profitable over the last twelve months, with an adjusted operating income of -$32.03 million for the same period. However, it's worth noting that 6 analysts have revised their earnings upwards for the upcoming period, suggesting potential improvement in the company's financial outlook.
Weave's revenue growth remains solid, with a 20.54% increase in the last twelve months, reaching $195.84 million. This growth, coupled with a high gross profit margin of 70.68%, indicates the company's ability to generate sales and maintain pricing power in its market segment.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 9 more tips available for Weave Communications. These tips could provide valuable perspective on the company's financial health and future prospects.
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