Weave Communications, Inc. (NYSE:WEAV) Q4 2023 Earnings Call Transcript

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Alan Taylor: So, Tyler, yes. On the second question, as we get into the second-half, given what we’re already seeing, we can say with confidence that we’re going to see that in the second-half of the year, just given that 12-month trailing metric that the NRR is currently on. And the new customers is — I think, the new customers will follow the same pattern that we’ve seen with the exception that we’re, I do think that the partnership opportunities are going to accelerate.

Tyler Radke: Thank you.

Operator: Thank you. Our next question comes from the line of Mark Schappel with Loop Capital Markets. Please proceed with your question.

Mark Schappel: Hi, thank you for taking my call and, or my question, excuse me, and nice job on the quarter here. Brett, starting with you, on prior earnings calls, you noted that the product development group was working on building your next-gen platform. I was just wondering if you’d just give us a sense of when that will be released this year and just maybe some of the benefits financially you may expect to derive from it in the coming year.

Brett White: Sure, you bet. So, really, there’s two desired outcomes from our next-gen platform. If you’re familiar with our product, current product, it’s basically an app that sits on the desktop. It kind of looks like an iPhone, and right now we put all of our functionality into that app. So, the first outcome that’s desired by the next-generation platform is to move the current functionality from the legacy app into a more dynamic app. So, an app where you can grab the corners and make them larger or smaller and move them around, and that’s easier for the customer and it’s easier for us because we can move more functionality into the app. We’re no longer constrained by real estate. And also, the other piece of that is to move that functionality to the web.

So, you can either work in the app, kind of like a slack, or you can pull up the web version of it. And getting the functionality the same from the legacy app to the new app to the web, just as it kind of occurs over time, the majority of the way there, we’re fully done on some functionality and we’re the majority of the way done on some of the remaining functionality. So, definitely should happen this year, hopefully around midyear. So, that’s the first outcome. And then, the second outcome is adding multi-functionality. So, functionality that makes the product much more usable and useful to multi-location offices. So, for example, being able to manage multiple email inboxes at once, doing multiple texting activities. So, basically, you can pick a pick list and either pick from one office or all 10 offices or three of the seven offices, whatever you want to do.

So, it’s really around those two outcomes that they’re working on. We currently opened it up to early access late last year. I think we’ve got over a thousand customers on it, using it, testing it, playing with it. And so, I would say we’re in a very good place there. The responses and the feedback that we’ve gotten has been quite good. We’re not selling it quite yet, but we are showing it to select multi-location customers. And I think this will continue to improve, embed the legacy functionality into the new platform over — throughout 2024.

Mark Schappel: Thank you. And then, building on an earlier question, I was wondering if you’d just give us maybe a little bit of an update on your hiring plans for the year, particularly on the go-to market side.

Brett White: Right. So, we added sales capacity in 2023. We clicked it up a few notches in Q3 and Q4, so we could make sure that we’ve got the sales capacity we need kind of every quarter, but certainly throughout 2024. I expect that everything goes the way we hope and plan it will, that we’ll continue to add sales capacity throughout 2024. And then, I think we’ve got some additional hiring planned in product and engineering. Anything else you want to add, Alan?

Alan Taylor: No, I think those are the key elements. We will grow across the board, and obviously we will gauge that growth on continued execution and making sure that the metric’s supported.

Mark Schappel: Great, thank you.

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

Brett White: Okay. Well, thank you again for your continued support, and thank you to the entire Weave team for delivering another terrific quarter, and we’ll talk to you in our next call.

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

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