Weave Communications, Inc. Q2 FY2024 Earnings Call

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. 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.

Thank you, Sachi. 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, entail certain assumptions made as 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. 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 GAAP 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 call as well as the earnings presentation on our Investor Relations website at investors.getweave.com. 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. 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. 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 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 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 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 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 seen 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 healthcare provider if offered flexible ways to pay for services. 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. 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 offerings. Integration with 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. 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 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' budgets. 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, ezyVet, InfiniteVT, and Shepherd, opening up our addressable market by more than 86,000 locations. We also expanded integrations with several existing partners in 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. Our integration with Patterson practice management software Fuse and EagleSoft now has the most complete data exchange available, including payment write-backs 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. 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 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, enhanced personalization, multitasking capabilities, and auto updates. 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. 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 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. 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. Weave was honored on Inc.'s Annual Best Workplaces list and the 2024 ParityLIST 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 and reached a very significant milestone of positive adjusted EBITDA. 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.

Thanks, Brett. 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 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 or a 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. 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've 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. 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 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. 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 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 and the costs associated with our communications solutions decrease 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. 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. 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. 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 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. 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. 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 $0.00 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 efficiencies. 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. 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 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. 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. 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. 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. And with that, I'll turn the call over to the operator for Q&A.

Thank you. We will now be conducting a question-and-answer session. The first question is from Parker Lane from Stifel. Please go ahead.

Hi, guys. Thanks for taking the question. Brett, you talked about 0.5% 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?

Sure. Thanks, Parker. So where we're seeing the traction is physical therapy, med spa, plastics, and general practice. And those are really our four primary focus areas with both sales and marketing and integrations. And 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 marketing motions to generate the inbound leads, and then we also have an outbound motion into those segments.

Got it. That makes sense. And then in terms of the rollout of the new platform, is there a timeline by which you're planning to 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 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 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. 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. We already have about one-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 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. On the second side of the Weave new experience is we've also enabled the new version of the SMB app. And really the big new features there that we are really excited about is the ability to change – to dynamically change the size and configuration of the app. Historically, our app was limited to kind of like an iPhone four size. And so you can retain that functionality or you can expand it have it pick 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 historically a source of some challenges, certainly on the support side because you couldn't guarantee all the customers are 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 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 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 and/or you can just download the app. So hopefully that helps.

Okay. Thanks, Brett. Appreciate all the color there.

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

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. 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 plan? Thanks.

So I'll start. 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 is done. 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. So that upsell motion becomes fairly compelling, given the new integrations and that the process is really one through our upsell team to dig in there.

Yes. 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 just a base Weave package, but as we add deepened 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 found is when we're in an event and we put up a banner that says now integrates with XYZ BPMS, 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.

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 this is more than just the integration of the upsell. Is that right?

That's right.

Okay. 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-off funnel growth and you've got the more formal expansion into specialty medical now that the TAM is 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 last six months on generating new leads in our now four core verticals. Dental continues to be our largest. That's the 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 our install base with the exception of medical. Medical is much stronger on a kind of percentage of growth and just number of leads relative to the base perspective.

Okay. Thank you, both.

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

Good afternoon. Thank you for taking my questions here. 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 pronounced increase here sequentially. What drove the upside this quarter? Thanks.

Sure. We are performing well on multiple fronts, and our sales momentum is building. This quarter, we closed more new sales than we have in previous quarters, especially in the last couple of quarters. New customer acquisition is increasing, which is positive news. Alan noted that we made some price adjustments this quarter, which we have been doing regularly for several years, specifically over certain cohorts, product types, and customers. Additionally, our payments sector experienced significant growth, and we saw a slight expansion in our net take rate. Is there anything else?

I think those are the key elements, yes.

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 it's a lot of it is internal execution stuff that's working for you. 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 would be helpful. Thanks.

We are very excited about the progress we are making with our partnerships. Every quarter, I share what excites me with the team, and partnering has certainly been a focus recently. In the past, Weave hasn't been very proactive in forming partnerships, but about a year ago, we decided to change our strategy and build mutually beneficial partnerships with the PMS providers. We explored various opportunities and emphasized a win-win approach. We brought on a new head of channels in December, who has been instrumental in collaborating with PMS providers to find ways to succeed together. We negotiated a deal last year with Dentrix and Dentrix Ascend, and recently secured a deal with Patterson, which is exciting. We are going to market together; Patterson has a Weave/Fuse bundle, combining our offerings, which they're promoting to around 100,000 locations and customers. They are actively sharing leads and opportunities with us, allowing for collaborative sales efforts, which benefits our customers significantly. To build traction, we sent a team to their national sales kickoff in June to train their sales team, who are enthusiastic about it. We're already receiving leads, signing deals, and adding annual recurring revenue since June. It’s off to a great start, and we look forward to more partnerships with practice management software providers in the future.

Great. Well, it sounds like that partner channel is really starting to blossom for the company. So great to see. Thank you.

Thank you.

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

Hi, thanks for taking my question. Nice job on the quarter and the guide. Brett, 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 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?

I would say the changes that are happening are minor. David McNeil, who has joined us, is very thoughtful and has spent considerable time understanding our people and business. We're quite unique, and he's applying his experiences to help us improve. The adjustments being made are small, focusing on observations, tweaks, and improvements. We strongly believe that even a small improvement of 1% to 2% each month can accumulate over time. He has taken a thoughtful approach, particularly in getting our middle market business up and running. Historically, this has been a small area for us with limited offerings, but he has worked closely with sales leadership to develop a solid product for that market. Now that we have a product that works effectively for that segment, I believe we are well-positioned for growth. He has also provided substantial support to both inbound and outbound leadership, who are actively engaged. Overall, he's contributing ideas, thoughts, leadership, and opportunities for incremental improvement, but there are no major dramatic changes.

Great. Thanks. And then secondly, 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 this quarter?

Yes, the quantities continue at the same rate. We stopped reporting it because it was essentially the same number with a slight increase. However, that trend remains. A competitor will reach out and claim they can offer everything Weave provides for $100 less a month. Customers may find that appealing, switch over, but ultimately return when they realize they lack the functionality, integration depth, and quality of the Weave solution. This trend is still ongoing.

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

Hi. This is Kylie on for Tyler. Congrats on the quarter. And I guess I'll start off with you raised the full year more than DAV. I'd love to hear what gives you the better visibility into the second half? And any comments on the macro changing relative to last quarter? Thanks.

Thank you, Kylie. I appreciate your observation. This is a crucial part of our business. We have successfully met and exceeded our guidance for ten consecutive quarters, and we take that responsibility very seriously as we set guidance we believe in. This demonstrates that our business is performing well. Our sales performance remains strong and continues to improve, as Brett pointed out. We are confident in our ability to maintain this momentum. Regarding macro trends, they are present, but our small businesses, including dentists, optometrists, veterinarians, and the medical sector, are very stable and reliable. They do not face the same risk of going out of business as typical small and medium-sized businesses. From a macro perspective, we still need to see our dentists and doctors, and we still need to take our pets to the vet. These services are not as significantly affected by macro trends as many others are. This is promising news for us. I believe one of the aspects that the market may not fully grasp about Weave is the strength and resilience of our customer base, which can withstand various macro challenges that might disrupt other parts of the economy.

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 have on how that compares to the overall business and the attach rates you anticipate?

So Call Intelligence has great potential. As we introduce these products, we continue to listen to our customers to ensure we meet their needs. We possess extensive historical data on calls, texts, and emails from our 15 years in the industry, which positions us uniquely. We are developing models to train our AI, enabling us to inform customers about incoming calls, their call patterns, and the emotions surrounding these calls. We are enthusiastic about its future development. While it's still in the early stages, we believe it will become a crucial tool for customers to understand how their front desk interacts with patients and how to enhance that interaction. Ultimately, it's about ensuring that every potential revenue opportunity from phone calls is fully leveraged.

Thank you.

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

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

The reacceleration with respect to the verticals is across the board. Specialty medical is the fastest of those given the new integrations that we've done in that space as well as just the uptake. So we're pleased to see the revenue reacceleration kind of across the board.

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?

Not many insights since the launch. Sales cycles for the mid-market are significantly longer than those for single location SMBs. We are currently demonstrating the product extensively. This is our primary offering aimed at middle market opportunities, and our pipeline is growing. The interest in the product is strong. When we demonstrate the functionality and multitasking capabilities to practice leaders, they show genuine interest. We need to keep building the pipeline and close those deals. Sorry, what was the second part of the question?

Just the nuances between the go-to-markets which you address.

Yes, it's a completely different sales cycle and requires a different type of sales team.

Thank you.

The next question is from Henry Dane from Goldman Sachs. Please go ahead.

Hey guys, congrats on the great quarter, another great quarter. Just one for me. On NRR, another quarter of inflection to 97%, can you just break down where that inflection is coming from just between attrition and upsell/cross-sell and where investors could see that metric go in the future?

Yes, thank you, Henry. We've observed our Net Revenue Retention reaching as high as 105% in previous quarters. We definitely aim to surpass 100% once again. Various factors contribute to this, though we don't quantify them specifically. These factors include payments and upsells. As noted, we're seeing products like forms, bulk messaging, and insurance verification significantly contribute to our growing revenue streams and upsell opportunities. We’re also working on new initiatives, such as Call Intelligence, which we believe will be a valuable addition to our upsell offerings. These elements are pivotal in driving our performance. It's an exciting inflection point, and we expect this momentum to continue.

Great. Thanks for the color.

There are no further questions at this time. 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 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.

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