Weave Communications, Inc. Price & Performance (WEAV)

A reconciliation to comparable GAAP metrics can be found in today's earnings release. Which is available on our website and in its exhibit two of the Form eight ks furnished with the SEC before this call. As well as the earnings presentation on our earnings on our Investor Relations website at investors.gitmeid.com. And with that, I will now turn the call over to Gia. Thank you, Mark, and thanks to everyone joining us today. 2024 was a year of remarkable progress and transformation for Weave. I'm excited to share key financial and strategic highlights from the past year as well as our vision for 2025. We've experiences for patients and the practices that serve Our goal is to make every interaction with a healthcare provider seamless and powerful. For SMB healthcare practitioners, managing a small healthcare business while delivering quality patient care is challenging. Weave streamlined operations making it easier for providers to focus on what matters most, caring for their patients. Our vision is to elevate the patient experience through a unified platform that improves business operation enabling healthcare professionals to focus on patient care and achieve their dreams. Instead of a fragmented set of tools, Weave offers an AI powered solution that integrates communication, scheduling, forms, payments and more.

Through authorized and supported integrations, with leading practice management systems, we unlock deeper functionality without adding complexity. These integrations enable practices to automate and personalize patient communication embedding fintech solution such as Tech to Pay, PEC2Pay online bill pay and payment plans directly into the communication workflow. By streamlining payment processes, we've accelerated collections, reduces write offs improves practice profitability. Technology isn't just about efficiency and revenue growth for healthcare It's a key factor in attracting and retaining top talent. 61% of practitioners agree that hiring high quality employees is easy when their practice leverages the latest office technology and almost 70% say that retaining great staff is significantly improved with modern tools in place. Investing in the right technology enhances the workplace experience and reduces burnout. Weave platform gives practice as a competitive edge not just in patient engagement and payments, but in building strong successful teams. By helping healthcare practices attract engage and retain patients, we've enabled providers to focus on what they do best, delivering excellent care while growing their business. For many, their practice is a lifelong dream Weave appeared to help them achieve it by simplifying operations, reducing burdens, empowering them to build thriving patient centered practices.

The dental, optometry, veterinary specialty medical verticals we serve give us access to an addressable market that we believe exceeds $7,000,000,000 The U. S. Alone. Before Alan shares more details about our financial I want to share a few key highlights. In Q4 twenty twenty four, we delivered another health with strong revenue growth of nearly 19% and continued improvements of both profitability and free cash flow. Gross margins improved again with the twelfth consecutive quarter. Reaching 72.6% Q4 also marked our second consecutive quarter of positive operating income resulting in full year profitability for the first time in Weave's history. We achieved $6,100,000 in free cash flow in Q4. More than doubling year over year. And representing a free cash flow margin of 11%. We produced free cash flow of $10,400,000 for the year, representing nearly 60% year over year growth. Finally, Weave very pleased to have exceeded the high end of the revenue and profitability guidance we gave a year Weave. These results underscore the strong market demand for our solutions driven by the disciplined execution and a clear commitment to efficient growth. At the start of 2024, we identified to open up and expand new vectors of growth including expanding into specialty medical verticals, strengthening integration partnerships enhancing solutions for multi location practices elevating payments is a core component of our product and delivering AI powered innovation.

Today, alongside our financial performance, I'm excited to share the significant progress we've made in each of these areas. In 2024, we laid the groundwork for success. And we're already seeing strong early traction. As a result, in 2025, we will be expanding these initiatives and investing to further accelerate momentum. Let me provide some additional color into each of these key growth factors. In 2024, we identified a set of specialties within the SMB medical vertical as strategic expansion opportunities Revenue from specialty medical practices led by primary care, MedSpa, plastic surgery and physical therapy grew at twice the rate of the overall company revenue in 2024. Specialty Medical remained our fastest with more active medical locations added than in any previous period. Our momentum in this space was fueled by the release of new authorized integration with practice management software including eclinical works Athena Health, Doctor. Crono and NextGen expanding our reach and deepening the value of our platform. The SMB medical market in The U. S. Spans 29 specialties, representing an addressable opportunity of the dental, optometry and veterinary markets combined. With less than 1% market penetration in this vertical, we are only beginning to unlock its vast potential.

We began 2025 Weave the launch of authorized integration further expanding our presence in the medical At the same time, we are expanding our go to market efforts by broadening our target specialties, increasing demand generation investments and advancing sales enablement programs. These initiatives will accelerate our growth in high potential medical specialties and solidify Weave's position as a category leader while expanding our market share. Turning to partnerships. In early twenty twenty four, we launched a dedicated partnerships team led by an experienced executive to drive new growth opportunities. This investment expanded our serviceable market by over 100,000 across all of our vertical markets. Our strategic partnership with Patterson Dental announced in June significantly broadened our market reach through co marketing and co selling efforts resulting in increased bookings and payments revenue in the latter half 2024. Additionally, our commercial and integration partnership with PROMPT launched this month, marks a major milestone in our expansion into the physical therapy market. Since launch, we have actively driven adoption through co marketing efforts engaging both shared customers and new prospects. To build on this momentum, we are launching a dedicated partner sales team in 2025 that will work closely with our commercial partners.

By embedding within their go to market strategy, we aim to deepen collaboration increase engagement, drive referrals and accelerate revenue growth. Given the strong early success of our partnership strategy, we will continue to invest in 2025 strengthening both sales and marketing resources to further expand our market presence and accelerate growth. Another key focus of our strategy this year is expanding our mid market customer base. In Q2 of 'twenty four, we launched an enterprise solution on our platform meet the unique needs of multi location practices we added a proven sales leader in Q3 to accelerate our progress and in Q4, Affordable Care, the nation's largest dental service organization for tooth replacement, shows Weave as its platform of record for patient engagement and payment. In 2025, we are expanding our mid market sales capacity and increasing our marketing investments. These efforts will deepen engagement and expansion in existing accounts drive pipeline growth and position Weave for sustained success in this segment. In line with our other focus areas, Weave are seeing strong traction in our payments business. In 2024, we appointed a General Manager of Payments and doubled the size of our operations and in engineering teams. We integrated payments with some of the largest practice management systems in our space including Open Dental and Patterson's Eaglesoft and Fuse.

To deliver more streamlined communication and collection workflows for our customer. We enhanced our payments product suite with payment plans and payment reminders which help improve case acceptance and reduce outstanding accounts receivables for our customers. Timely payments are crucial for the financial health of any practice Weave Payments is designed to make that 74% of practices believe they get paid faster by offering tech and 62% say it helps prevent overdue invoices. Affordable Care selected the Weave Enterprise Weave to improve collections and reduce write offs with integrated digital payment solutions like Text to Pay. By leveraging mobile terminals, flexible payment options and embedding payments into patient communication workflows, affordable care practices using Weave exceed significant revenue cycle management [indiscernible] In 2025, payments will be a core element of our product and go to market strategy. Payments are now seamlessly integrated into our initial sale. Reducing time to value for our customers. We are also investing in dedicated payments team focused on adoption and increasing usage within our customer base. We believe that these resources will result in a scalable resilient payments business that is well positioned to drive continued growth in the coming years. Another important aspect of our strategy is AI.

Last year, last year, we made meaningful strides in this area. We launched our AI power platform, for both single and multi location practices. Weave AI is embedded throughout our platform to help streamline communications between a practice and its patients through review responses email marketing creation, message tagging and prioritization, and voicemail transcriptions. In Q4, we announced our AI powered call intelligence product. This revolutionary technology transforms how healthcare practices analyze and leverage call data enabling them to elevate patient experiences boost operational efficiencies and unlock new revenue streams. 88% of practice say technology is crucial to delivering a great patient experience. In 2025, we will continue advancing AI powered solutions to transform patient engagement and optimize complex practice operations. By automating workflows and enhancing communication, is leading the way in intelligent automated healthcare solutions making our platform an essential tool the modern healthcare In summary, in 2024, we laid the foundation for expansion. Achieving early success across multiple growth areas. In 2025, we will continue making disciplined strategic investments where we see the greatest opportunity and a clear path to winning your business. Medical vertical markets, mid market, partnerships payments and AI. The traction we gained in 2024 reinforces our confidence that these investments will strengthen our market leadership and unlock new revenue streams.

With a strong team, a clear vision and proven ability to execute, Weave is well positioned to accelerate growth and drive long term success. Finally, Weave continues to earn recognition for our dedication to delivering exceptional customer experiences and the outstanding performance of our team and our plan. In Q2's winter twenty twenty five report, we ranked first 23 categories and was once again named the leader in the grid for patient relationship management We were also selected as an Weave. Power Partner Award winner, We are committed to fostering in 2024 for innovation, employee appreciation, employee well-being, leadership and compensation and benefits. In closing, I'm deeply proud of the Weave team's accomplishments of the past year We achieved robust top line growth advanced profitability [indiscernible] that address the evolving needs of our customers. These results highlight our unwavering focus on delivering value and driving innovation. As I sit here today, I am more confident in our opportunities and outcomes than I was just twelve months ago. A heartfelt thank you to our customers, partners, team members and shareholders for their continued trust and support. Before I turn the call over, I'd like to take a moment to address the announcement we made earlier today.

Our Chief Financial Officer, Alan Taylor, will be retiring at the end of [indiscernible] As part of a planned succession, Jason Christensen, Weave President of Finance, will be replacing Alan as Weave's new Chief Financial Officer and will join the executive team upon Alan's retirement. I would like to thank Alan for his significant contributions to the company. During his nine years at Weave, he built our finance function and guided Weave along the journey from start up to successful public company. I want to express my gratitude for his partnership and for his commitment to ensuring smooth transition before he embarks his well deserved retirement. I've had the privilege of working closely with Jason throughout his four year tenure at Weave. His extensive experience in our business understanding of our strategy and deep insights into our customers make him the ideal successor. Having personally been served as a CFO for over twenty years, I'm confident in Jason's ability to continue to scale Weave and drive continued growth and performance for many years to come. With that, I'll turn the call over to Adam. Thanks, Brad, and good afternoon, everyone. It's been a great privilege to serve the CFO Weave we've for the last nine years. [indiscernible] I'm looking forward to the next stage in my life and I have enormous confidence in JC as he takes the range as Jason's extensive finance experience and leadership will be integral to our IPO and last few years Business Transformation Group.

In addition to leading financial planning and analysis Jason has played a central role in driving strategic corporate initiatives, including business technology, business intelligence, [indiscernible] [indiscernible] Jason's deep understanding of Weave is aligned with our mission and is an embodiment of our core values that Jim will suit you for this role. Jason will join us for Q and A at the right remarks. Starting with Q4, we had an excellent quarter and continued to execute well across the board. In Q4, we delivered revenue of $54,200,000 reflecting nearly 19% growth year over year. Exceeding midpoint of our guidance by $1,100,000 or 2%. Revenue growth was driven by new customer acquisitions, payments, upsells, ongoing momentum in our specialty medical verticals. Continues to grow rapidly Notable successes were achieved among the primary care, med spa, plastic surgery, and physical therapy vertical. Our net revenue retention rate is 98% in Q4. Up from 95% last year. This reflects the positive contributions from AT and T customers and price adjustments for additional functionality made to select customer cohorts. And products throughout 2024. Gross revenue retention or GR remains strong and ramped to 91% in Q4 which is a minor decrease of 20 basis points from Q3 twenty twenty four and thirty basis points from a year ago.

Our GRR has consistently ranged between 9194% over the past four years, positioning us in a top performing Turning to operating results, I'll be referring to non GAAP figures unless otherwise In Q4, gross margin improved 72 points. [indiscernible] Representing a two ninety basis point increase year over year and our twelfth quarter of sequential improvement. Our total operating expenses as a percent of revenue improved to 69% this down from 73% in Q4 of twenty twenty three. Reflecting disciplined cost management and operational efficiencies. We saw the biggest improvement in general and administrative expenses which were $9,300,000 or 17% revenue down from 19% revenue last year. Sales and marketing expenses came in at $20,000,000 or 37% of revenue, a slight decrease from 38% in the same period Research and development expenses for the quarter totaled $8,300,000 representing 15% of revenue down from 16% of revenue in the year ago. These improvements highlight focus on efficiency [indiscernible] In Q4, we achieved our second consecutive quarter of non GAAP operating income with 1,800,000.0 a $3,500,000 and $800,000 higher than the top end of our guidance. The corresponding operating income margin of 3.3% is a significant improvement to the operating loss margin of 3.8% last year.

Our net income was $2,400,000 or $0.03 per share in the fourth quarter based on 72,900,000.0 weighted average shares outstanding. Reflecting a $3,200,000 Adjusted EBITDA for Q4 was $2,600,000 improving from $3,400,000 year over year due to revenue growth and operational Turning to the balance sheet and cash flow, we ended the year with $99,100,000 in cash and short term investments. Up from $98,200,000 last quarter Cash flow generated from operations in Q4 was $6700000.02900000.0 dollars improvement year over year. Free cash flow was $6,100,000 in the fourth quarter representing year over year growth of 109 We're particularly pleased with the profitability and free cash flow progress in in 2024. We anticipate operating income and free cash flow will remain positive year 2025. So Q1 will likely show negative free cash flow due to the timing of the payout of annual employee bonuses and certain one time Before reviewing our guidance, I'll provide a brief recap of the full year results. In 2024, total revenue grew 20% to $204,300,000 Discurt Entertainment revenue grew 21%, up 919% last year Our gross margin improved to 71.9%. Up from 68.7% last year. Our operating margin improved to a positive 0.4% As we delivered the first year of operating income, the company did a significant improvement over the nearly 6.8% margin We made substantial progress on free cash flow ending the year having generated $10,400,000 up from $6,500,000 last year.

We ended the year with nearly 35,000 customer locations on our platform landing at 34,997 up 15% year over year. Weave pleased with our progress this year and would like to thank all of our team members Weave we, our customers and partners, for their contributions throughout the year. I'd like to provide some color regarding our outlook for 2025.

As we outlined in 2024, we continue to believe that our pricing strategy to align with market dynamics.

Business objectives, While we will continue to make adjustments as necessary, we do not anticipate the same magnitude of price changes in 2025 as we implemented in 2024. The most significant pricing updates occurred in Q2 of twenty twenty.

Making Q2 our toughest year over year comparison. Of 2025, as we lapped the effects of that cohort, However, excluding these activities, we anticipate growth in our core business in 2025 to exceed '20 As Greg mentioned, we are in we are investing in payments and AI to ensure innovative workflow Workflow based solutions which we believe will unlock greater lifetime value in expand wallet share in the next few years. Additionally, in 2024, we launched a new platform secured some transformative partnerships and made great strides in our mid market business. We will we are still in the early stages of these opportunities and we're encouraged by the green shoots we see, but we're not assuming significant contributions the first half of twenty twenty five from these new vectors grew On the expense side, 2025 will be the first year that we will be required to comply with Section four forty of the Sarbanes Oxley Act. And as a result, we are expecting an increase in compliance lot fees compared to 2024. To add more color on expenses, there are seasonal factors that result in a sequential increase in expenses in Q1. Including the reset of payroll factor [indiscernible] taking effect and the timing of the annual product fees which are weighted more heavily in Q1.

For the first quarter of twenty twenty five, we expect total revenue in the range of $54,000,000 to $55,000,000 and non GAAP operating income in the range of negative $700,000 positive $300,000 For the full year 2025, we expect total revenue be in the range of $232,000,000,000 to $2.37 We expect the range for our full year 2025 non GAAP operating income to be from $2,000,000 to $6,000,000 We expect that weighted average share count approximately 75,900,000.0 shares.

As we wrap things up in this final earnings call, we need incredibly fortunate on the end to be a part of [indiscernible] This last chapter of my career started with an opportunity to work with [indiscernible] remarkable people and capable leaders. And the success that we presently enjoy as Science Group in MirrorVision Weave determination to do something extraordinary. Brandon is one of the most serious and optimistic people I've ever met. [indiscernible] [indiscernible] committed and a delight to work with and I will The investors and Board members of Sharpen and Sytiv as well as [indiscernible] What we do is we as a vital part of our health care practitioners and their staff. [indiscernible] That's an important goal, and it's been hugely rewarding to watch what they create weak teams trying to realize Weave been able to tap into a market with great potential. The greatest portion of which is still ahead. [indiscernible] [indiscernible] make their own special contributions to our success through their loved sacrificed patients and support. I'm grateful to Paula and to the extended Weave family who are assessing for the of making it all happen. Paul and I look forward to spending more time together with our 16 grandchildren [indiscernible] [indiscernible] [indiscernible] Looking ahead, I'm very confident that we will continue to capitalize on new opportunities because the entire organization is passionate about commission and will be disciplined to execute.

We use exceptionally well positioned to grow and succeed years With that, I'll turn the call over to the operator for [indiscernible] Great. Thank you. At this time, we will be conducting a question and answer session. First [indiscernible] Thank you. Alan, congratulations on the retirement and Jason on the new role. First question for me is just on the 2025 guide. It implies kind of step back in the rule out framework. I know we saw something similar with how you approach the 2024 outlook, but could you provide some more color on what you're factoring from an incremental investment perspective? And when we could expect those to contribute to growth Alex, thanks. Hey, I'll start. So Weave gave clear last year and this year, four that our bias is going to be towards growth. And so the investment profile with all of the things that we have in terms of partnerships, the new markets Weave going into, especially medical markets, our investments in AI that's those are the areas where we will continue to invest so that we can lay the groundwork for just continued growth. And so that's I think fairly consistent. [indiscernible] terms of the way we'll plan on that.

Yes. And Alex, maybe I'll add to that.

So I know the word investment can be a scary word sometimes. When giving guidance. So let me just give a little color. In each of these vectors of growth where we're really starting to see the green shoots growing, In order to really capture the opportunity to celebrate them, each of them needs a team. And so instead of having the existing team turn out work on partnerships or work on payments, we're actually setting up dedicated teams. They're small teams, to get us started and to grow. So we're not going crazy We're just making very targeted small team investments in each one of these growth sectors to really get the kind of traction that we think we can. These are really important multiyear growth opportunity And so Weave seeding those out with some teams to really get them going. And we mentioned, we're going to be more deliver more next year than we did this year. We're going to see growth accelerate in the second half. So be scared by the investment words. It's just some few teams, but Weave we're levering those up this quarter to really to hit the end of the year to hit the second half of the year, at Stride.

Okay. Thank you both for that color. Just one maybe follow-up then on one of those growth vectors payments. So you've had a new head of payments in place now. It's top priority. You're talking about seeding more of the team there. Can you just kind of update us on where that solution stands in terms of how accretive it's been to growth and and just given some of the learnings from Patterson, how do you view the payments opportunity 2025 versus 2024? [indiscernible] the key for us for payments is getting [indiscernible] integrated into the office workflow. And so much of this year was hiring ahead of payments. Actually, Jason was our acting head of payments for the first half of the year. [indiscernible] team. We've doubled the size of the engineering. We've built in some new integration flows. We're working with ACI to to bring their payments over to our platform So I think we've got all the the pieces in place and now the rest of the work really is building out the workflows And then the other major change we've made this year is we've changed the sales compensation model. So starting January, all of our sales account executives now have a payments number, they all get paid on closing payments and they also get on payment residuals.

So Weave changed the go to market model. We've changed the sales model, have got many of the integrations done, there is still work to be done. I think we Weave be working on the work for quite a while, but we make incremental improvements there getting traction with new ads Weave. We're getting traction with partners. So I would say Everything is proceeding nicely and it will definitely continue to have an accretive effect in 2025 for both our growth and our margins.

All right, great. Thank you both. Next question is from Brent Preassellem from Piper Sandler. Good afternoon, Alan. It's been a pleasure working with you.

Best of luck in retirement, 16 grandchildren sounds like you're going to remain pretty active. Jason, congrats on the new role, much deserved. Maybe Alan, we'll double click into the guide. If I go back, your guide for 'twenty three was 11%. Actual was 19.9%, 2024 initial guide was 15% actual growth 19.9%.

Are you trying to flag the 15% growth as a some near term challenges you see to growing in 2025 or should we think about the guide as kind of a typical conservative amount of of conservatism in the guide this year. Just trying to parse that out if there's something specific you're trying to flag to us or if this is kind of the normal cadence of guidance you give? Thanks.

So, Brent, first of all, thank you very much. It's been a pleasure working with you as well. The only thing that I would point out is what we mentioned in the prepared remarks, which is that we do have a typical comp in Q2 But other than that, this is the same philosophy that we've been using And so I appreciate that setup that is thirty germane to this conversation in terms of the way that we were The only other thing I would add is the green shoots that we've been talking about these are pretty exciting things. I mean, I'm very convinced that we've got some opportunity for things that Weave have a room condition that year progresses. But with one quarter of dip compared to Q2.

Got it. Very clear. So Q2 compare is the only kind of thing kind of factoring into the guide that's That's super helpful color. Brett for you, you're clearly excited by these four, five new [indiscernible] to actually drive an acceleration in growth? I ask because we've had good stabilization in growth the last two years.

When do you think the green shoots could be material enough to drive action and acceleration in top line? Yes. Thank you, Brent. [indiscernible] in some areas, it's already happening. But you kind of can't see it yet. I think one of the point I wanted to make sure that came through is is, as Alan mentioned, we're lapping our price adjustments from last year which will happen in the final quarter in Q2. And we're not planning to stay low low [indiscernible] in our '25 guide.

So absent the price increases, we believe our core business will grow faster in 'twenty five than in 'twenty four.

So I think there are already it's already showing up in the numbers.

In the business that we really look at. And then I think the second half is when we'll see market acceleration relative to these initiatives. Definitely on the partnership front, definitely on the multi location front, definitely on the specialty medical front.

If we're able to screen through the pricing adjustments, think you'd be seeing more of it now.

But net of all that, I think you'll see it mostly in the second Yes. Thank you.

Next question is from Parker Leen from Stifel. Please go ahead.

Hey guys, thanks for taking the question. And Alan, I'll echo my congrats on the successful career environment here. Maybe the question is for Brett here. When you look at the multi location and enterprise motion, much of that is aimed at largely the dental vertical where you have the biggest exposure and the history there versus the broader, swathe of the go to market motion? I would say currently, if you look at our primary pipeline, and our focus areas, it's primarily dental.

And it's just because we've got the brand, we've got the product, we've got the partnerships with the big practice management software vendors And frankly, that's where we get the most investment. So, we've totally changed the go to market motion We've totally changed the team. We're going to be changing the events we go to. So it's it's a major rebuild of that function and it's off to a great start. So So kind of like the rest of our SMB business, we'll start in dental get our traction there.

And then move into probably other areas Dial Dental Optometry and then Specialty Medical.

Understood. And then Alan, I know you referenced the pricing increase last year impacting 2Q. When you look at some of the AI functionality you're bringing things like call recording etcetera, Why isn't there an opportunity to take more price on those feature sets that you're bringing to the market here in 2025? Or is that something you think about in longer terms? Or simply just customer success and differentiating the platform?

Yes. Parker, I think there will be. The The AI functionality we're doing will obviously the capability, call intelligence for instance, doing well. We're seeing that uplifted. But when we're talking about price, specifically just increasing the price on existing products versus existing customers, I think we're just kind of separating that out a little bit. And so Weave will take advantage of just some price increases this year just won't AI products and the other upsell products that are presently being sold and will be introduced. Can I add something to that? We also don't want to do price increases that a inhibit our ability to move customers onto the new platform. But we are seeing greater adoption and higher NPS and better better customer response from that platform. And we know that's something that we want to move customers towards. And so Weave trying to be very careful and cautious in how we balance those two in 2025.

Understood. Thanks for the feedback guys. [indiscernible] Next question is from Tyler Raffy from Citi.

Hi, this is Kylie on for Tyler.

Congratulations echoing the congrats for Alan on your retirement and [indiscernible] thanks again for the question. NRR up tick nicely through the year. I'd just love to hear any direction comments for expectations on NRR trends for FY '25.

So, the NRR will continue to be set by improvements in payments. We obviously have some NRR through pricing last year. [indiscernible] the sales are doing well. And so Weave got a few sectors that can help us to improve the NRR. I think it's important for all of everybody on offering on a location basis And so some of the NRR and Weave lander that we [indiscernible] the full features that EPYC's offers and yet Weave still have the opportunity to continue to improve as we add in penetration within our customer base and we continue to improve the [indiscernible] [indiscernible] And just one point I would add, just clarification. We measure NRR on a location basis. [indiscernible] don't measure it on a logo basis. So for example, As ACI has locations over time, that does not positively affect the ACI logo and RR per se.

So, I think that's a really important one to understand. So, an ACI location is the same as any any other and they're measured year over year on the individual location basis.

Not as a number of locations added by a logo.

Makes total sense. Thanks. And then if I could slip in one more. I'd love to hear any comments on demand trends in the quarter. And then keeping in mind that comment that you're more confident than twelve months ago. But just noticing that software revenue did have a slight de sell off of 3Q. What drove the revenue upside and the incremental confidence?

Yes. So So at the beginning of the year, beginning of twenty twenty four, we laid out our plan in all of our focus areas.

And throughout the year, We just kept adding really good leadership and they were tapping into these these veins of opportunity and producing results. And so so lots of green shoots, lots of green lights, are coming out of our kind of strategic plan for 2024. So So as I was preparing for our kickoff, our employee kickoff, I kind of looked at on the same stage twelve months later, how's the view from the space? It was just a lot better because we have a lot more vectors to pursue. And so really the question is how aggressively do we want to pursue them on an investment basis. So we're being we're being measured in our investment. Weave putting full teams behind each one of these opportunities. Demand was terrific in Q4.

And so From my things look pretty pretty darn good.

And our next question is from Mark Chappell from Loop Capital Markets. Please go ahead. [indiscernible] [indiscernible] first of all, Alan, congrats on your retirement here. Question for you Brett, I was wondering, I appreciate your comments regarding your investment priorities in the coming year. With respect to the sales enablement initiatives to expand your presence in specialty medical, Is that strategy to go deeper in the current say, handful of sub segments that you currently plan or is the plan to maybe expand into other sub segments?

So, kind of the way the model works [indiscernible] Weave look at demand we look at product market fit, and then we design our integration timing, our integration rollout based on those factors. And so really where we really start getting track in new verticals is with we build the integration. So Weave build our integration roadmap, we start rolling out integrations, and then the go to market falls right behind that. And the concept of sales enablement is let's not try to make our old Scripts and the old verticals work in the new verticals, let's actually make them very, very tailored, very pointed So our sales teams get more efficient more quickly The previous question was Why the optimism? A year ago, we had We were looking for integration to write. We were in we were trying to get partners to sign up with us we can write the integration. Now we're exactly flipped.

Now we have more partners who want to partner with us more integration agreements signed than we have actually have the capacity to deliver.

So Weave actively hiring more on the engineering side so we can meet the demand. So it's identified the vertical that are the closest product market fit, build the integrations, tailor the go to market motions to that vertical and then and then unleash the teams. Great. Thank you. And then with respect to your AI products, specifically assistant and call intelligence, if you could just provide some additional color on how you plan to actually monetize those products?

So they're currently so currently they are included in the top bundle And then also Weave can sell them on upsell. So Call Intelligence an upsell or it's an additional cost in the higher bundle And I think the results we've seen recently is our new sales are more biased towards the higher end bundle. We kind of have the standard good, better, best, bundling. And ASPs are coming up because our sales are more biased towards the higher bundle. So Call Intelligence is not a freebie. Some of the other embedded AI technologies come with the new Weave Experienced platform.

But that's one of the ways that we're able to deliver value and therefore get price on both the SMB segment but really importantly, on the multi market segment.

Or multi location segment.

Great.

Thank you. This concludes the question and answer session. I'd like to turn the floor back to Brett White for any closing comments. Well, another big thank you to Alan for all his years of commitment and just being a great partner And thanks to all of you for joining the call and thanks again to the entire Wix team. This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.