William Blair initiated research coverage of Weave Communications, Inc. (WEAV $16.68), which provides a unified communications and customer engagement platform augmented by industry-vertical-specific functionality designed for small and midsize businesses, or SMBs.
Analyst Matt Stotler estimated the company would generate total revenue of $116.0 million in 2021, $153.0 million in 2022, and $207.5 million in 2023. He noted that in the first half of 2021, Weave generated revenue of roughly $54 million, representing 55% year-over-year growth.
“Consumers increasingly want to have the convenience, flexibility, and personalized experiences that they enjoy with leading brands from all businesses they interact with,” Stotler said. “Meeting these evolving expectations is becoming increasingly critical for small businesses to add and retain customers. However, traditional communications and engagement solutions in the SMB market are limited. Weave enables small businesses to meet these needs, with a proprietary cloud communications platform that is intuitive and easy to use, specifically designed to meet the needs of the modern small and midsize business. This platform helps businesses improve customer engagement, attract more customers, and increase retention while saving money and improving efficiency.”
Stotler continued, “Weave has achieved rapid growth in recent years through expansion in the base of subscribing customer locations and dollar-based net revenue retention. Overall, we expect that further growth in the customer location base, upsell of add-on products, innovation in the product portfolio, and expansion into new verticals can drive sustained strong growth for the next several years as Weave continues to benefit from secular demand drivers.”
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Current Ratings Distribution (as of 12/5/21)
Outperform (Buy): 76%
Market Perform (Hold): 23%
Underperform (Sell): 1%
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Outperform (Buy): 34%
Market Perform (Hold): 12%
Underperform (Sell): 0%
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