WEAVE COMMUNICATIONS, INC., 10-Q filed on 5/9/2025
Quarterly Report
v3.25.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2025
May 05, 2025
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2025  
Document Transition Report false  
Entity File Number 001-40998  
Entity Registrant Name Weave Communications, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 26-3302902  
Entity Address, Address Line One 1331 West Powell Way  
Entity Address, City or Town Lehi  
Entity Address, State or Province UT  
Entity Address, Postal Zip Code 84043  
City Area Code 385  
Local Phone Number 331-4164  
Title of 12(b) Security Common stock, par value $0.00001 per share  
Trading Symbol WEAV  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   75,181,804
Entity Central Index Key 0001609151  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 53,410 $ 51,596
Short-term investments 44,819 47,534
Accounts receivable, net 3,131 3,743
Deferred contract costs, net 11,979 11,568
Prepaid expenses and other current assets 6,919 6,298
Total current assets 120,258 120,739
Non-current assets:    
Property and equipment, net 8,562 8,443
Operating lease right-of-use assets 36,535 37,516
Finance lease right-of-use assets 11,057 10,650
Deferred contract costs, net, less current portion 9,933 9,487
Other non-current assets 1,965 2,091
TOTAL ASSETS 188,310 188,926
Current liabilities:    
Accounts payable 4,865 8,276
Accrued liabilities and other 20,550 17,638
Deferred revenue 38,864 39,987
Current portion of operating lease liabilities 4,194 4,119
Current portion of finance lease liabilities 6,696 6,600
Total current liabilities 75,169 76,620
Non-current liabilities:    
Operating lease liabilities, less current portion 37,875 38,961
Finance lease liabilities, less current portion 6,685 6,377
Total liabilities 119,729 121,958
COMMITMENTS AND CONTINGENCIES (Note 12)
Stockholders' equity:    
Preferred stock, $0.00001 par value per share; 10,000,000 shares authorized, zero shares issued and outstanding as of March 31, 2025 and December 31, 2024 0 0
Common stock, $0.00001 par value per share; 500,000,000 shares authorized as of March 31, 2025 and December 31, 2024; 74,914,866 and 73,225,253 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 0 0
Additional paid-in capital 368,919 358,549
Accumulated deficit (299,838) (291,013)
Accumulated other comprehensive loss (500) (568)
Total stockholders' equity 68,581 66,968
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 188,310 $ 188,926
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Mar. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Preferred stock par value (in dollars per share) $ 0.00001 $ 0.00001
Preferred stock authorized (in shares) 10,000,000 10,000,000
Preferred stock issued (in shares) 0 0
Preferred stock outstanding (in shares) 0 0
Common stock par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock authorized (in shares) 500,000,000 500,000,000
Common stock issued (in shares) 74,914,866 73,225,253
Common stock outstanding (in shares) 74,914,866 73,225,253
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Income Statement [Abstract]    
Revenue $ 55,809,000 $ 47,173,000
Cost of revenue 15,864,000 14,186,000
Gross profit 39,945,000 32,987,000
Operating expenses:    
Sales and marketing 23,526,000 19,630,000
Research and development 11,153,000 9,645,000
General and administrative 14,586,000 11,867,000
Total operating expenses 49,265,000 41,142,000
Loss from operations (9,320,000) (8,155,000)
Other income (expense):    
Interest income 463,000 420,000
Interest expense (397,000) (319,000)
Other income, net 500,000 865,000
Loss before income taxes (8,754,000) (7,189,000)
Provision for income taxes (71,400) (14,100)
Net loss $ (8,825,000) $ (7,203,000)
Net loss per share, basic (in dollars per share) $ (0.12) $ (0.10)
Net loss per share, diluted (in dollars per share) $ (0.12) $ (0.10)
Weighted-average common shares outstanding - basic (in shares) 73,806,981 70,452,944
Weighted-average common shares outstanding - diluted (in shares) 73,806,981 70,452,944
Other comprehensive loss    
Change in foreign currency translation, net of tax $ 54,000 $ (238,000)
Net unrealized gain (loss) on investments, net of tax 14,000 (62,000)
Total comprehensive loss $ (8,757,000) $ (7,503,000)
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Deficit
Accumulated Other Comprehensive (Loss) Income
Beginning balance (in shares) at Dec. 31, 2023   70,116,357      
Beginning balance at Dec. 31, 2023 $ 78,957 $ 0 $ 341,514 $ (262,667) $ 110
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common shares from stock option exercises (in shares)   60,548      
Issuance of common shares from stock option exercises 291   291    
Issuance of common shares from the employee stock purchase plan (in shares)   113,959      
Issuance of common shares from the employee stock purchase plan 1,020   1,020    
Vesting of restricted stock units (in shares)   1,205,838      
Common stock withheld related to net settlement of equity awards (in shares)   (516,331)      
Common stock withheld related to net settlement of equity awards (6,101)   (6,101)    
Stock-based compensation 6,772   6,772    
Foreign currency translation adjustments, net of tax (238)       (238)
Net unrealized gain (loss) on investments (62)       (62)
Net loss (7,203)     (7,203)  
Ending balance (in shares) at Mar. 31, 2024   70,980,371      
Ending balance at Mar. 31, 2024 $ 73,436 $ 0 343,496 (269,870) (190)
Beginning balance (in shares) at Dec. 31, 2024 73,225,253 73,225,253      
Beginning balance at Dec. 31, 2024 $ 66,968 $ 0 358,549 (291,013) (568)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common shares from stock option exercises (in shares) 86,212 86,212      
Issuance of common shares from stock option exercises $ 463   463    
Issuance of common shares from the employee stock purchase plan (in shares)   118,565      
Issuance of common shares from the employee stock purchase plan 1,111   1,111    
Vesting of restricted stock units (in shares)   1,486,607      
Common stock withheld related to net settlement of equity awards (in shares)   (1,771)      
Common stock withheld related to net settlement of equity awards (26)   (26)    
Stock-based compensation 8,822   8,822    
Foreign currency translation adjustments, net of tax 54       54
Net unrealized gain (loss) on investments 14       14
Net loss $ (8,825)     (8,825)  
Ending balance (in shares) at Mar. 31, 2025 74,914,866 74,914,866      
Ending balance at Mar. 31, 2025 $ 68,581 $ 0 $ 368,919 $ (299,838) $ (500)
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (8,825) $ (7,203)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation and amortization 2,804 3,046
Amortization of operating right-of-use assets 981 972
Provision for credit losses 177 250
Amortization of deferred contract costs 3,533 3,292
Stock-based compensation, net of amount capitalized 8,985 6,772
Net accretion of discounts on short-term investments (372) (637)
Changes in operating assets and liabilities:    
Accounts receivable 435 (15,757)
Deferred contract costs (4,390) (4,087)
Prepaid expenses and other assets (495) (555)
Accounts payable (3,654) (1,017)
Accrued liabilities 2,682 (4,554)
Operating lease liabilities (1,011) (977)
Deferred revenue (1,069) 754
Net cash used in operating activities (219) (19,701)
CASH FLOWS FROM INVESTING ACTIVITIES    
Maturities of short-term investments 18,556 23,770
Purchases of short-term investments (15,455) (16,821)
Purchases of property and equipment (444) (513)
Capitalized internal-use software costs (399) (305)
Net cash provided by investing activities 2,258 6,131
CASH FLOWS FROM FINANCING ACTIVITIES    
Principal payments on finance leases (1,773) (1,787)
Proceeds from stock option exercises 463 291
Payments for taxes related to net share settlement of equity awards (26) (6,101)
Proceeds from the employee stock purchase plan 1,111 1,020
Net cash used in financing activities (225) (6,577)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,814 (20,147)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 51,596 50,756
CASH AND CASH EQUIVALENTS, END OF PERIOD 53,410 30,609
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid during the period for interest 397 319
Cash paid during the period for income taxes 71 14
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:    
Equipment purchases financed with accounts payable 243 6
Finance lease liabilities arising from obtaining finance lease right-of-use assets 2,177 1,871
Operating lease liabilities arising from obtaining operating lease right-of-use assets 0 149
Unrealized gain (loss) on short-term investments 14 (62)
Stock-based compensation included in capitalized software development costs $ 67 $ 0
v3.25.1
Description of the Business
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of the Business Description of the Business
Weave Communications, Inc., with its wholly-owned subsidiaries Weave Communications Canada, Inc. and Weave Communications India Private Limited (collectively, “Weave” or the “Company”), sells subscriptions to the Weave platform, its vertically-tailored customer experience and payments software platform for small and medium-sized healthcare businesses. The Weave platform combines patient engagement, payments, and other operational software tools with voice over internet protocol (“VoIP”) phone services. The Company was incorporated in the state of Delaware in October 2015 and its corporate headquarters are located in Lehi, UT.
v3.25.1
Basis of Presentation and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
The unaudited condensed consolidated financial statements include the accounts of Weave Communications, Inc. and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 13, 2025.
The accompanying interim condensed consolidated balance sheets, statements of operations and comprehensive loss, statements of stockholders' equity, statements of cash flows and accompanying notes are unaudited. These unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial condition, its operations and cash flows for the periods presented. The historical results are not necessarily indicative of future results, and the results of operations are not necessarily indicative of the results to be expected for the full year or any other period.
Segments
The Company determines its operating and reportable segments based on how the chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer (“CEO”), reviews and manages the business and establishes criteria for aggregating operating segments into reportable segments. As described in Note 13, the Company operates as one operating and reportable segment.
Use of Estimates
The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amount of sales and expenses during the reporting period. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from those estimates. Significant estimates included in the Company’s financial statements include the valuation allowance against deferred tax
assets, allowance for credit losses, recoverability of long-lived assets, fair value of stock-based compensation, and the amortization period of deferred contract costs.
Significant Accounting Policies
A summary of the Company’s significant accounting policies is discussed in Note 2 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 13, 2025. There have been no significant changes to these policies during the three months ended March 31, 2025.
Accounting Pronouncements Adopted
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 (“ASU 2023-07”), “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The Company adopted ASU 2023-07 for the annual period ended December 31, 2024 and interim periods beginning January 1, 2025 using the retrospective approach, which resulted in enhanced segment disclosures in the unaudited condensed consolidated financial statements.
Accounting Pronouncements Pending Adoption
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires the disclosure of specific categories in the rate reconciliation and greater disaggregation for income taxes paid. ASU 2023-09 will be effective for annual periods beginning after December 15, 2024 and should be adopted prospectively with the option to be adopted retrospectively. The Company is currently evaluating the impact of ASU 2023-09 on its related disclosures.
In November 2024, the FASB issued ASU No. 2024-03, “Income Statement (Topic 220): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires additional disclosures of certain amounts included in the expense captions presented on the statements of operations and comprehensive loss as well as disclosures about selling expenses. ASU 2024-03 is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, and early adoption is permitted. The Company is currently evaluating the impacts of adopting this guidance on its unaudited condensed consolidated financial statement disclosures and statements of operations and comprehensive loss.
As an “emerging growth company,” the Jumpstart Our Business Startups Act (the “JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies.
v3.25.1
Revenue
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts With Customers for all periods presented.
Contract Balances
The Company recognized revenue that was included in the corresponding deferred revenue balance at the beginning of the period of $18.9 million and $19.3 million for the three months ended March 31, 2025 and 2024, respectively.
Deferred Contract Costs
The Company capitalizes incremental costs of obtaining and fulfilling a contract. Amortization expense related to these costs was $3.5 million and $3.3 million for the three months ended March 31, 2025 and 2024, respectively, and is reflected in the sales and marketing line item on the condensed consolidated statements of operations and comprehensive loss.
Concentration of Credit Risk, Significant Customers, and Provision for Credit Losses
There were no customers with revenue as a percentage of total revenue exceeding 10% for the three months ended March 31, 2025 and 2024. As of March 31, 2025 and December 31, 2024, there were no customers with outstanding accounts receivable balances as a percentage of total accounts receivable greater than 10%.
The Company’s provision for credit losses was $0.5 million as of March 31, 2025 and December 31, 2024.
Disaggregation of Revenues
Revenue has been disaggregated into recurring and non-recurring categories to identify revenue and costs of revenue that are one-time in nature from those that are term-based and renewable.
The table below outlines revenue for our recurring subscription (software and phone services) and payment processing services, as well as for our onboarding services, and phone hardware for the three months ended March 31, 2025 and 2024 (in thousands):
Three Months Ended March 31,
20252024
Subscription and payment processing$53,415 $45,092 
Onboarding888 960 
Phone Hardware (embedded lease)
1,506 1,121 
Total revenue$55,809 $47,173 
v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Financial instruments recorded at fair value in the unaudited condensed consolidated financial statements are categorized as follows:
•Level 1: Observable inputs that reflect quoted prices for identical assets or liabilities in active markets.
•Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3: Unobservable inputs reflecting management's assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.
The following table summarizes the assets measured at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2025 (in thousands):
Level 1Level 2Level 3Total
Cash equivalents
Money market funds$37,157 $— $— $37,157 
Short-term investments
US government and agency securities29,518 — 29,518 
Commercial paper— 15,301 — 15,301 
Total$66,675 $15,301 $— $81,976 
The following table summarizes the assets measured at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2024 (in thousands):
Level 1Level 2Level 3Total
Cash equivalents
Money market funds$31,708 $— $— $31,708 
Short-term investments
US government and agency securities32,323 — 32,323 
Commercial paper— 15,211 — 15,211 
Total$64,031 $15,211 $— $79,242 
The following tables summarize the Company's short-term investments on the unaudited condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024 (in thousands):
March 31, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term investments
US government and agency securities$29,511 $15 $(8)$29,518 
Commercial paper15,301 1 (1)15,301 
Total$44,812 $16 $(9)$44,819 
December 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term investments
US government and agency securities$32,309 $23 $(9)$32,323 
Commercial paper15,203 8 — 15,211 
Total$47,512 $31 $(9)$47,534 
The following tables summarize the Company’s cash and cash equivalents on the unaudited condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024 (in thousands):
March 31, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Cash$16,253 $— $— $16,253 
Cash equivalents
Money market funds 37,157 — — 37,157 
Total$53,410 $— $— $53,410 
December 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Cash$19,888 $— $— $19,888 
Cash equivalents
Money market funds 31,708 — — 31,708 
Total$51,596 $— $— $51,596 
As of March 31, 2025, the weighted-average remaining contractual maturities of available-for-sale securities was approximately three months.
No available-for-sale securities held as of March 31, 2025 have been in a continuous unrealized loss position for more than twelve months. As of March 31, 2025, unrealized losses on available-for-sale securities are not attributed to credit risk and are considered temporary. The Company believes it is more likely than not that investments in an unrealized loss position will be held until maturity or the cost basis of the investment will be recovered. The Company believes it has no other-than-temporary impairments on its securities as it does not intend to sell these securities and does not believe it is more likely than not that it will be required to sell these securities before the recovery of their amortized cost basis. To date, the Company has not recorded any impairment charges on securities related to other-than-temporary declines in fair value. The Company’s cash equivalents and short-term investments are scheduled to mature within one year from the balance sheet date.
For the three months ended March 31, 2025 and 2024, both unrealized holding gains and losses were immaterial and the resulting net unrealized holding losses and gains have been included in accumulated other comprehensive loss.
As of March 31, 2025 and December 31, 2024, the Company had no outstanding debt. The carrying amounts of certain financial instruments, including accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short-term maturities and are excluded from the fair value tables above.
Realized gains, consisting of discount accretion, for the three months ended March 31, 2025 and 2024, were $0.4 million and $0.6 million, respectively.
v3.25.1
Property and Equipment
 3 Months Ended
Mar. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consisted of the following for the periods presented (in thousands):
March 31, 2025December 31, 2024
Office equipment$5,187 $6,626 
Office furniture5,670 5,670 
Leasehold improvements2,796 2,763 
Capitalized internal-use software7,525 7,059 
Payment terminals2,409 2,308 
Property and equipment, gross23,587 24,426 
Less accumulated depreciation and amortization(15,025)(15,983)
Property and equipment, net$8,562 $8,443 
Depreciation and amortization expense on property and equipment (excluding amortization on operating right-of-use (“ROU”) assets) was $2.8 million and $3.0 million for the three months ended March 31, 2025 and 2024, respectively. Of this expense, $1.8 million for each of the three months ended March 31, 2025 and 2024 was related to phone hardware finance ROU assets (see also Note 6) and has been included in cost of revenue in the condensed consolidated statements of operations and comprehensive loss. Of the remaining depreciation and amortization expense, $0.5 million was included in cost of revenue in the statements of operations and comprehensive loss for each of the three months ended March 31, 2025 and 2024. $0.5 million and $0.7 million was recorded in operating expenses on the statements of operations and comprehensive loss for the three months ended March 31, 2025 and 2024, respectively.
v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases Leases
The Company has lease arrangements, both as a lessor and a lessee, and makes assumptions and judgments when assessing contracts for lease components, determining lease classifications, and calculating ROU asset and lease liability values. These assumptions and judgements may include the useful lives and fair values of the leased assets, the implicit rate underlying the Company’s leases, the Company’s incremental borrowing rate, or the Company’s intent to exercise or not exercise options available in lease contracts.
Lease expense and other information for the periods presented consisted of the following (in thousands, except terms and rates):
Three Months Ended March 31,
20252024
Lease expense
Finance lease expense:
Amortization of right-of-use assets$1,788 $1,820 
Interest on lease liabilities347 318 
Operating lease expense1,386 1,423 
Short-term lease expense10 8 
Variable lease expense88 47 
Total lease expense$3,619 $3,616 
Supplemental cash flow information
Finance leases:
Operating cash outflow from finance leases$347 $318 
Financing cash outflow from finance leases$1,773 $1,787 
Finance lease liabilities arising from obtaining finance lease right-of-use assets$2,177 $1,871 
Operating leases:
Operating cash outflow from operating leases$1,416 $1,431 
Operating lease liabilities arising from obtaining operating lease right-of-use assets$— $149 
Other information as of March 31, 2025
Finance leases:
Weighted-average remaining lease term (years)1.9
Weighted-average discount rate11.1 %
Operating leases:
Weighted-average remaining lease term (years)7.8
Weighted-average discount rate3.9 %
Operating leases
The Company as the Lessee
The Company leases office space for its headquarters under a non-cancelable operating lease agreement which expires in January 2033. Though the Company will consider renewal options on its lease as it nears expiration, the Company has not recognized any renewal options as part of the current lease term as it is not reasonably certain that it will exercise its option as of March 31, 2025. The rate implicit in the Company’s operating lease is not readily determinable. Thus, the Company uses its incremental borrowing rate to discount lease payments to present value. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis, and is based on the Company’s secured line of credit, which may be adjusted for the specific terms and collateral of the lease. The operating lease agreement does not contain any residual value guarantees or other restrictions or covenants that would cause the Company to incur additional significant financial obligations. The office space lease agreement contains non-lease components, which represent charges for common area maintenance, taxes and utilities. The Company has elected the practical expedient on not separating lease components from non-lease components.
The Company has other leases for office space with terms less than twelve months from contract inception and no options to purchase the underlying asset. These agreements are accounted for as short-term leases in accordance with ASC 842.
Total rent expense for office space leases was $1.4 million for each of the three months ended March 31, 2025 and 2024, and is reported gross of sublease income received.
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of March 31, 2025 are as follows (in thousands):
Years ending December 31,
2025$4,284 
20265,843 
20275,989 
20286,139 
20296,292 
Thereafter20,403 
Total48,950 
Less: imputed interest(6,881)
Present value of operating lease obligations$42,069 
The Company as the Lessor
The Company provides varying quantities of phone hardware to customers without adjustments to the base subscription price. The Company is deemed a lessor in these arrangements. For the three months ended March 31, 2025 and 2024, the Company recorded lease revenues associated with phone hardware of $1.5 million and $1.1 million, respectively.
In April 2023, the Company entered into a Sublease Agreement for the fourth floor of its corporate headquarters in Lehi, Utah. During each of the three months ended March 31, 2025 and 2024, the Company recorded sublease revenues associated with this agreement of $0.2 million. These revenues are included in other income (expense) on the condensed consolidated statements of operations and comprehensive loss.
Finance leases
The Company is the lessee in all of its finance lease arrangements. In June 2016, the Company began financing its purchases of phone hardware through lease agreements classified as finance leases. As of March 31, 2025 the Company had 94 executed and active lease agreements, respectively, for phone hardware with maturity dates ranging from April 2025 to March 2028. As of March 31, 2025, the gross value of phone hardware acquired under these finance leases approximated $21.1 million. Amortization expense on finance-leased phone hardware was $1.8 million for each of the three months ended March 31, 2025 and 2024, which is included in the depreciation expense referenced in Note 5.
Future minimum lease payments for the Company’s finance leases as of March 31, 2025 were as follows (in thousands):
Years ending December 31,
2025$6,154 
20265,447 
20273,024 
2028392 
2029— 
Thereafter— 
Total15,017 
Less: amounts representing interest(1,636)
Present value of finance lease obligations$13,381 
Leases Leases
The Company has lease arrangements, both as a lessor and a lessee, and makes assumptions and judgments when assessing contracts for lease components, determining lease classifications, and calculating ROU asset and lease liability values. These assumptions and judgements may include the useful lives and fair values of the leased assets, the implicit rate underlying the Company’s leases, the Company’s incremental borrowing rate, or the Company’s intent to exercise or not exercise options available in lease contracts.
Lease expense and other information for the periods presented consisted of the following (in thousands, except terms and rates):
Three Months Ended March 31,
20252024
Lease expense
Finance lease expense:
Amortization of right-of-use assets$1,788 $1,820 
Interest on lease liabilities347 318 
Operating lease expense1,386 1,423 
Short-term lease expense10 8 
Variable lease expense88 47 
Total lease expense$3,619 $3,616 
Supplemental cash flow information
Finance leases:
Operating cash outflow from finance leases$347 $318 
Financing cash outflow from finance leases$1,773 $1,787 
Finance lease liabilities arising from obtaining finance lease right-of-use assets$2,177 $1,871 
Operating leases:
Operating cash outflow from operating leases$1,416 $1,431 
Operating lease liabilities arising from obtaining operating lease right-of-use assets$— $149 
Other information as of March 31, 2025
Finance leases:
Weighted-average remaining lease term (years)1.9
Weighted-average discount rate11.1 %
Operating leases:
Weighted-average remaining lease term (years)7.8
Weighted-average discount rate3.9 %
Operating leases
The Company as the Lessee
The Company leases office space for its headquarters under a non-cancelable operating lease agreement which expires in January 2033. Though the Company will consider renewal options on its lease as it nears expiration, the Company has not recognized any renewal options as part of the current lease term as it is not reasonably certain that it will exercise its option as of March 31, 2025. The rate implicit in the Company’s operating lease is not readily determinable. Thus, the Company uses its incremental borrowing rate to discount lease payments to present value. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis, and is based on the Company’s secured line of credit, which may be adjusted for the specific terms and collateral of the lease. The operating lease agreement does not contain any residual value guarantees or other restrictions or covenants that would cause the Company to incur additional significant financial obligations. The office space lease agreement contains non-lease components, which represent charges for common area maintenance, taxes and utilities. The Company has elected the practical expedient on not separating lease components from non-lease components.
The Company has other leases for office space with terms less than twelve months from contract inception and no options to purchase the underlying asset. These agreements are accounted for as short-term leases in accordance with ASC 842.
Total rent expense for office space leases was $1.4 million for each of the three months ended March 31, 2025 and 2024, and is reported gross of sublease income received.
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of March 31, 2025 are as follows (in thousands):
Years ending December 31,
2025$4,284 
20265,843 
20275,989 
20286,139 
20296,292 
Thereafter20,403 
Total48,950 
Less: imputed interest(6,881)
Present value of operating lease obligations$42,069 
The Company as the Lessor
The Company provides varying quantities of phone hardware to customers without adjustments to the base subscription price. The Company is deemed a lessor in these arrangements. For the three months ended March 31, 2025 and 2024, the Company recorded lease revenues associated with phone hardware of $1.5 million and $1.1 million, respectively.
In April 2023, the Company entered into a Sublease Agreement for the fourth floor of its corporate headquarters in Lehi, Utah. During each of the three months ended March 31, 2025 and 2024, the Company recorded sublease revenues associated with this agreement of $0.2 million. These revenues are included in other income (expense) on the condensed consolidated statements of operations and comprehensive loss.
Finance leases
The Company is the lessee in all of its finance lease arrangements. In June 2016, the Company began financing its purchases of phone hardware through lease agreements classified as finance leases. As of March 31, 2025 the Company had 94 executed and active lease agreements, respectively, for phone hardware with maturity dates ranging from April 2025 to March 2028. As of March 31, 2025, the gross value of phone hardware acquired under these finance leases approximated $21.1 million. Amortization expense on finance-leased phone hardware was $1.8 million for each of the three months ended March 31, 2025 and 2024, which is included in the depreciation expense referenced in Note 5.
Future minimum lease payments for the Company’s finance leases as of March 31, 2025 were as follows (in thousands):
Years ending December 31,
2025$6,154 
20265,447 
20273,024 
2028392 
2029— 
Thereafter— 
Total15,017 
Less: amounts representing interest(1,636)
Present value of finance lease obligations$13,381 
v3.25.1
Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. The Company reported provision for income taxes of $71.4 thousand and $14.1 thousand for the three months ended March 31, 2025 and 2024, respectively, which resulted in an effective tax rate of (0.8)% and (0.2)% for the three months ended March 31, 2025 and 2024, respectively. The provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate of 21% for the periods presented primarily due to changes in the Company’s valuation allowance, state and foreign taxes, and the tax effects of stock-based compensation.
The Company is subject to income tax in the U.S. as well as other tax jurisdictions in which the Company operates. The Company’s U.S. operations have resulted in losses, and as such, the Company maintains a valuation allowance against all U.S. deferred tax assets. While the Company believes its current valuation allowance is appropriate, the Company assesses the need for an adjustment to the valuation allowance on a quarterly basis. The assessment is based on all available positive and negative evidence including past results of operations, forecasted earnings, tax planning strategies, and all sources of future taxable income. In the event the Company determines that it will be able to realize all or part of its net deferred tax assets in the future, all or part of the valuation allowance will be released in the period in which the Company makes such determination. The release of all or part of the valuation allowance against deferred tax assets may cause greater volatility in the effective tax rate in the periods in which it is released.
v3.25.1
Debt
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
In August 2021, the Company established a revolving line of credit with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (“SVB”) allowing for total borrowing capacity up to $50.0 million, subject to reduction should the Company fail to meet certain metrics for recurring revenue and customer retention (the “August 2021 Agreement”). The line of credit, as amended, matures in August 2025. Amounts outstanding on the line of credit accrue interest at the greater of prime rate plus 0.25% and 3.50%. The Company is required to pay an annual fee of $0.1 million beginning on the effective date of the August 2021 Agreement, and continuing on the anniversary of the effective date as well as a quarterly unused line of credit fee of 0.15% per annum of the available borrowing amount should the outstanding principal balance drop below $10.0 million (calculated based on the number of days and based on the average available borrowing amount). The line of credit is collateralized by substantially all of the Company’s assets. In March 2024, the Company amended the revolving line of credit agreement with SVB, which amended certain terms of the August 2021 Agreement, including but not limited to, setting EBITDA financial covenants of the Company for the 2024 fiscal year. The August 2021 Agreement, as amended, includes financial covenants requiring that, at any time, if the Company’s total unrestricted cash and cash equivalents held at SVB plus the Company’s short-term investments managed by SVB is less than $100.0 million, the Company must at all times thereafter maintain a consolidated minimum $20.0 million in liquidity, meaning unencumbered cash and short-term investments plus available borrowing on the line of credit, and the Company must meet specified minimum levels of EBITDA, as adjusted for
stock-based compensation and changes in its deferred revenue. The Company was in compliance with all debt covenants for the three months ended March 31, 2025 and the year ended December 31, 2024. As of March 31, 2025, we had no outstanding borrowings under our line of credit.
v3.25.1
Stockholders’ Equity
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Stockholders’ Equity Stockholders’ Equity
Stock-Based Compensation Expense
Stock-based compensation expense, consisting of service-based expense related to the equity incentive plans, including expense from stock options and restricted stock units, and the employee stock purchase plan, was classified as follows in the accompanying condensed consolidated statements of operations and comprehensive loss for each of the periods presented (in thousands):
Three Months Ended March 31,
20252024
Cost of revenue$285 $239 
Sales and marketing1,841 1,151 
Research and development2,362 1,898 
General and administrative4,497 3,484 
Total$8,985 $6,772 
Equity Incentive Plan
In November 2021, in connection with the Company’s initial public offering (“IPO”), the Company adopted the 2021 Equity Incentive Plan (the “2021 EIP”) under which the Company could issue stock options or restricted stock units (“RSUs”) as awards. In addition to shares remaining available for issuance under a prior plan and shares subject to awards under the prior plan that may return to the 2021 EIP, the Company reserved 9.0 million shares of common stock for future issuance under the 2021 EIP, with scheduled annual increases to the reserve for amounts to be determined by the board of directors of the Company (the “Board”), subject to a maximum amount. In the first quarters of 2025 and 2024, the Board reserved an additional 3.7 million and 3.5 million common shares, respectively, for future issuance under the 2021 EIP.
In March 2023, the Company adopted the 2022 Inducement Equity Incentive Plan (the “Inducement Plan”) and reserved an additional 7.0 million shares of common stock for future issuance.
Stock-based compensation expense related to the 2021 EIP and the Inducement Plan was $8.8 million and $6.6 million for the three months ended March 31, 2025 and 2024, respectively.
Stock Options
Most stock options have a four-year vesting schedule with a one-year cliff and are classified as incentive stock options (“ISOs”). Some stock options have been granted in lieu of bonuses and have expedited two- or three-year vesting schedules. All awards vest based on service conditions.
Unrecognized stock-based compensation expense related to outstanding stock options as of March 31, 2025 and 2024 was $0.2 million and $2.6 million, respectively. Stock-based compensation expense is recognized on a straight-line basis over the remaining weighted-average vesting periods. As of March 31, 2025 and 2024 the weighted-average vesting periods approximated 0.43 years and 1.02 years, respectively.
Stock option activity was as follows:
Number of Stock Options
Weighted Average Exercise PriceWeighted Average Remaining Contractual Life (years)Aggregate Intrinsic Value
(in thousands)
Outstanding as of December 31, 20241,461,110 $4.01 4.54$17,408 
Exercisable as of December 31, 20241,400,993 $3.88 4.46$16,866 
Granted— $— 
Exercised(86,212)$4.35 
Forfeited and expired— $— 
Outstanding as of March 31, 20251,374,898 $3.98 4.53$9,630 
Exercisable as of March 31, 20251,325,547 $3.91 4.49$9,513 
The aggregate intrinsic value of stock options exercised is outlined in the table above. The intrinsic value represents the excess of the estimated fair value of the Company’s common stock on the date of exercise over the exercise price of each stock option.
Stock-based compensation expense is measured at the grant date based on the estimated fair value of the award. The fair value of the awards is fixed at grant date and amortized over the remaining service period. The Company uses the Black-Scholes model to estimate the value of its stock options issued under the 2021 EIP. Management reviews stock option grants and determines whether further valuation adjustments are appropriate based on recent company performance and/or changes in market conditions. The volatility assumed in the estimate was based on comparable publicly traded companies in the same industry and considers the expected term calculated by the Company. The expected term of the options was derived from a simplified method which estimated the term based on an averaging of the vesting period and contractual term of the stock option grant. The risk-free rate utilized was the average of the five- and seven-year U.S. Treasury yields as the estimated expected term for stock options approximated 6 years. The Company has no plans to declare dividends in the foreseeable future.
Restricted Stock Units
RSUs granted under the 2021 EIP and the Inducement Plan vest and settle upon the satisfaction of a service-based condition. The service-based condition for these awards is generally satisfied over three years. As of March 31, 2025, a total of 19,788 RSUs are outstanding for awards that were issued to non-employee directors have a three-year vesting schedule, with 33% vesting one year from the grant date and the remaining 67% vesting annually over the remaining two years. As of March 31, 2025, a total of 116,298 RSUs are outstanding that were issued to non-employee directors that have a one-year vesting schedule, with 100% vesting on the earlier of one year from the grant date or the annual meeting of stockholders. The remaining RSUs that have been issued have a three-year vesting schedule with 33% vesting one year from grant date and the remaining 67% vesting quarterly over the remaining two years.
RSU activity was as follows:
Number of SharesWeighted Average Grant Date Fair Value
Outstanding as of December 31, 20246,675,938 $8.93 
Granted1,496,600 $12.06 
Vested(1,486,607)$8.40 
Forfeited(174,496)$9.55 
Outstanding as of March 31, 20256,511,435 $9.75 
The total fair value of RSUs that vested during the three months ended March 31, 2025 and 2024 was $12.5 million and $6.4 million, respectively.
As of March 31, 2025, there was $57.0 million of unrecognized stock-based compensation expense related to outstanding RSUs, which is expected to be recognized over a weighted-average period of 2.3 years.
Employee Stock Purchase Plan
In October 2021, the Company adopted the Employee Stock Purchase Plan (“ESPP”) in which eligible employees may contribute up to 50% of their base compensation to purchase shares of common stock at a price equal to 85% of the lower of (1) the fair market value of a share of the Company’s common stock at the beginning of the offering period and (2) the fair market value of a share of the Company’s common stock on the purchase date. No participant may purchase more than 2,500 shares during any offering period. The ESPP became effective in November 2021 in connection with the Company’s IPO. As of March 31, 2025 and December 31, 2024, 4,034,053 and 3,301,800 shares were reserved for issuance, and 796,200 and 677,635 shares, respectively, of common stock had been issued under the ESPP. The number of shares available for issuance under the ESPP may be increased on the first day of each fiscal year beginning with the 2022 fiscal year by an amount to be determined by the board of directors. In the first quarter of 2025, the Board reserved an additional 732,253 common shares for issuance under the ESPP.
The 2021 ESPP provides for six-month offering periods beginning February 16 and August 16 of each year, and the last day of each offering period is the purchase date for that period.
During each of the three months ended March 31, 2025 and 2024, the Company recognized $0.2 million of stock-based compensation expense related to the ESPP. As of March 31, 2025 and December 31, 2024, $0.5 million and $1.0 million in accrued ESPP employee payroll contributions are included within accrued liabilities on the consolidated balance sheets, respectively. As of March 31, 2025, total unrecognized compensation expense related to the ESPP was $0.3 million, which will be amortized over the remaining offering period through August 15, 2025.
v3.25.1
Related Party Transactions
 3 Months Ended
Mar. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions Related Party TransactionsApart from payments pursuant to our non-employee director compensation program, there were no related-party transactions during the three months ended March 31, 2025 and 2024
v3.25.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Matters
As of March 31, 2025, and through the issuance date of these unaudited condensed consolidated financial statements, the Company is not involved in any legal proceedings that it believes could have a material adverse effect on its business, financial condition or results of operations.
Indemnification
The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claims brought by any third-party against such indemnified party with respect to licensed technology. The term of these indemnification agreements is generally perpetual any time after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future but have not yet been made. To date, the Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements.
The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. No liability associated with such indemnifications has been recorded as of March 31, 2025.
v3.25.1
Net Loss Per Share
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Net Loss Per Share Net Loss Per Share
The following tables present the calculation of basic and diluted net loss per share for the three months ended March 31, 2025 and 2024 (in thousands, except share and per share amounts):
Three Months Ended March 31,
20252024
Numerator:
Net loss$(8,825)$(7,203)
Denominator:
Weighted-average common shares outstanding - basic and diluted73,806,981 70,452,944 
Net loss per share
Net loss per share, basic and diluted$(0.12)$(0.10)
The following potentially outstanding common shares were excluded from the computation of diluted net loss per share attributable to common stockholders as of the end of the periods presented because their inclusion would have been antidilutive:
March 31, 2025March 31, 2024
Options to purchase common stock1,374,898 1,778,112 
Number of shares issuable from ESPP168,046 130,113 
Restricted stock units6,511,435 8,286,146 
Total8,054,379 10,194,371 
v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has one reportable segment: Weave platform. The Weave platform segment provides communications and payments services to customers under software-as-a-service arrangements. The Company derives revenue exclusively in North America and manages the business activities on a consolidated basis. The technology used in the customer arrangements is based on a single software platform that is deployed to and implemented by customers in a similar manner.
The Company’s CEO, who is also the CODM, reviews operating results using consolidated net loss as the measure of segment profitability. The CODM considers budget-to-actual variances on a monthly basis for this profit measure when making decisions about allocating capital and personnel. Significant expense categories regularly provided to the CODM are the consolidated functional expense categories reported in the Company’s statements of operations and comprehensive loss. Consolidated net loss and functional expenses are not presented as their presentation would be duplicative of the condensed consolidated statements of operations and comprehensive loss. Asset information is not presented because it is not a significant measure utilized by the CODM, and its presentation would be duplicative of the condensed consolidated balance sheets.
The following table presents information about reported segment revenue, significant segment expenses, and segment net loss for the three months ended March 31, 2025 and 2024 (in thousands):
Three Months Ended March 31,
20252024
Revenue55,809 47,173 
Costs and Expenses:
Direct costs of goods sold9,557 8,266 
Payroll and employee-related costs41,651 35,519 
Marketing costs4,730 3,495 
Partner costs1,235 959 
Professional fees1,701 1,030 
Facilities costs2,014 2,076 
Software costs3,060 2,895 
Capitalized software deferred costs(473)(305)
Other segment items1
1,159 441 
Net loss(8,825)(7,203)
¹ Other segment items include interest income and expense, other income, income taxes, property tax, bad debt expense, business insurance, and travel-related expenses.
v3.25.1
Subsequent Events
 3 Months Ended
Mar. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
On May 4, 2025, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) to acquire Vidurama, Inc., a Delaware corporation (“TrueLark”), an AI-powered receptionist and front-desk automation platform provider. Pursuant to the Merger Agreement, Project Sparrow Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Weave (“Merger Sub”), will merge with and into TrueLark (the “Merger”), with TrueLark continuing as the surviving corporation of the Merger. Under the terms and conditions of the Merger Agreement, all of the outstanding capital stock of TrueLark, and all options and other rights to purchase TrueLark capital stock, will be canceled and converted into the right to receive an aggregate of $35.0 million (the “Purchase Price”), comprised of $25.0 million in cash and $10.0 million in shares, subject to certain closing and potential post-closing adjustments. Weave expects to issue 999,810 shares of its common stock in connection with the closing of the Merger (the “Shares). Certain portions of the Purchase Price (both cash and Shares) will be subject to holdback provisions to secure potential post-closing adjustments to the Purchase Price and the indemnification obligations of certain TrueLark securityholders.The Company intends to fund the cash portion of the Purchase Price with cash on hand. Additionally, in connection with the closing of the transaction, Weave intends to grant performance-based restricted stock unit awards to certain key personnel of TrueLark with vesting over a two-year period.
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Pay vs Performance Disclosure    
Net loss $ (8,825) $ (7,203)
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Weave Communications, Inc. and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 13, 2025.
The accompanying interim condensed consolidated balance sheets, statements of operations and comprehensive loss, statements of stockholders' equity, statements of cash flows and accompanying notes are unaudited. These unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial condition, its operations and cash flows for the periods presented. The historical results are not necessarily indicative of future results, and the results of operations are not necessarily indicative of the results to be expected for the full year or any other period.
Segments The Company determines its operating and reportable segments based on how the chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer (“CEO”), reviews and manages the business and establishes criteria for aggregating operating segments into reportable segments. As described in Note 13, the Company operates as one operating and reportable segment.
Use of Estimates
The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amount of sales and expenses during the reporting period. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from those estimates. Significant estimates included in the Company’s financial statements include the valuation allowance against deferred tax
assets, allowance for credit losses, recoverability of long-lived assets, fair value of stock-based compensation, and the amortization period of deferred contract costs.
Accounting Pronouncements Adopted and Accounting Pronouncements Pending Adoption
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 (“ASU 2023-07”), “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The Company adopted ASU 2023-07 for the annual period ended December 31, 2024 and interim periods beginning January 1, 2025 using the retrospective approach, which resulted in enhanced segment disclosures in the unaudited condensed consolidated financial statements.
Accounting Pronouncements Pending Adoption
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires the disclosure of specific categories in the rate reconciliation and greater disaggregation for income taxes paid. ASU 2023-09 will be effective for annual periods beginning after December 15, 2024 and should be adopted prospectively with the option to be adopted retrospectively. The Company is currently evaluating the impact of ASU 2023-09 on its related disclosures.
In November 2024, the FASB issued ASU No. 2024-03, “Income Statement (Topic 220): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires additional disclosures of certain amounts included in the expense captions presented on the statements of operations and comprehensive loss as well as disclosures about selling expenses. ASU 2024-03 is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, and early adoption is permitted. The Company is currently evaluating the impacts of adopting this guidance on its unaudited condensed consolidated financial statement disclosures and statements of operations and comprehensive loss.
As an “emerging growth company,” the Jumpstart Our Business Startups Act (the “JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies.
v3.25.1
Revenue (Tables)
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The table below outlines revenue for our recurring subscription (software and phone services) and payment processing services, as well as for our onboarding services, and phone hardware for the three months ended March 31, 2025 and 2024 (in thousands):
Three Months Ended March 31,
20252024
Subscription and payment processing$53,415 $45,092 
Onboarding888 960 
Phone Hardware (embedded lease)
1,506 1,121 
Total revenue$55,809 $47,173 
v3.25.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Assets Measured on Recurring Basis
The following table summarizes the assets measured at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2025 (in thousands):
Level 1Level 2Level 3Total
Cash equivalents
Money market funds$37,157 $— $— $37,157 
Short-term investments
US government and agency securities29,518 — 29,518 
Commercial paper— 15,301 — 15,301 
Total$66,675 $15,301 $— $81,976 
The following table summarizes the assets measured at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2024 (in thousands):
Level 1Level 2Level 3Total
Cash equivalents
Money market funds$31,708 $— $— $31,708 
Short-term investments
US government and agency securities32,323 — 32,323 
Commercial paper— 15,211 — 15,211 
Total$64,031 $15,211 $— $79,242 
Schedule of Debt Securities, Available-for-Sale
The following tables summarize the Company's short-term investments on the unaudited condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024 (in thousands):
March 31, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term investments
US government and agency securities$29,511 $15 $(8)$29,518 
Commercial paper15,301 1 (1)15,301 
Total$44,812 $16 $(9)$44,819 
December 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term investments
US government and agency securities$32,309 $23 $(9)$32,323 
Commercial paper15,203 8 — 15,211 
Total$47,512 $31 $(9)$47,534 
Schedule of Cash and Cash Equivalents
The following tables summarize the Company’s cash and cash equivalents on the unaudited condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024 (in thousands):
March 31, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Cash$16,253 $— $— $16,253 
Cash equivalents
Money market funds 37,157 — — 37,157 
Total$53,410 $— $— $53,410 
December 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Cash$19,888 $— $— $19,888 
Cash equivalents
Money market funds 31,708 — — 31,708 
Total$51,596 $— $— $51,596 
v3.25.1
Property and Equipment (Tables)
 3 Months Ended
Mar. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment
Property and equipment consisted of the following for the periods presented (in thousands):
March 31, 2025December 31, 2024
Office equipment$5,187 $6,626 
Office furniture5,670 5,670 
Leasehold improvements2,796 2,763 
Capitalized internal-use software7,525 7,059 
Payment terminals2,409 2,308 
Property and equipment, gross23,587 24,426 
Less accumulated depreciation and amortization(15,025)(15,983)
Property and equipment, net$8,562 $8,443 
v3.25.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Schedule of Lease Expense and Other Information
Lease expense and other information for the periods presented consisted of the following (in thousands, except terms and rates):
Three Months Ended March 31,
20252024
Lease expense
Finance lease expense:
Amortization of right-of-use assets$1,788 $1,820 
Interest on lease liabilities347 318 
Operating lease expense1,386 1,423 
Short-term lease expense10 8 
Variable lease expense88 47 
Total lease expense$3,619 $3,616 
Supplemental cash flow information
Finance leases:
Operating cash outflow from finance leases$347 $318 
Financing cash outflow from finance leases$1,773 $1,787 
Finance lease liabilities arising from obtaining finance lease right-of-use assets$2,177 $1,871 
Operating leases:
Operating cash outflow from operating leases$1,416 $1,431 
Operating lease liabilities arising from obtaining operating lease right-of-use assets$— $149 
Other information as of March 31, 2025
Finance leases:
Weighted-average remaining lease term (years)1.9
Weighted-average discount rate11.1 %
Operating leases:
Weighted-average remaining lease term (years)7.8
Weighted-average discount rate3.9 %
Schedule of Operating Lease Liability Maturity
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of March 31, 2025 are as follows (in thousands):
Years ending December 31,
2025$4,284 
20265,843 
20275,989 
20286,139 
20296,292 
Thereafter20,403 
Total48,950 
Less: imputed interest(6,881)
Present value of operating lease obligations$42,069 
Schedule of Finance Lease Liability Maturity
Future minimum lease payments for the Company’s finance leases as of March 31, 2025 were as follows (in thousands):
Years ending December 31,
2025$6,154 
20265,447 
20273,024 
2028392 
2029— 
Thereafter— 
Total15,017 
Less: amounts representing interest(1,636)
Present value of finance lease obligations$13,381 
v3.25.1
Stockholders’ Equity (Tables)
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Schedule of Equity Based Compensation Expense
Stock-based compensation expense, consisting of service-based expense related to the equity incentive plans, including expense from stock options and restricted stock units, and the employee stock purchase plan, was classified as follows in the accompanying condensed consolidated statements of operations and comprehensive loss for each of the periods presented (in thousands):
Three Months Ended March 31,
20252024
Cost of revenue$285 $239 
Sales and marketing1,841 1,151 
Research and development2,362 1,898 
General and administrative4,497 3,484 
Total$8,985 $6,772 
Schedule of Stock Option Activity
Stock option activity was as follows:
Number of Stock Options
Weighted Average Exercise PriceWeighted Average Remaining Contractual Life (years)Aggregate Intrinsic Value
(in thousands)
Outstanding as of December 31, 20241,461,110 $4.01 4.54$17,408 
Exercisable as of December 31, 20241,400,993 $3.88 4.46$16,866 
Granted— $— 
Exercised(86,212)$4.35 
Forfeited and expired— $— 
Outstanding as of March 31, 20251,374,898 $3.98 4.53$9,630 
Exercisable as of March 31, 20251,325,547 $3.91 4.49$9,513 
Schedule of Restricted Stock Unit Activity
RSU activity was as follows:
Number of SharesWeighted Average Grant Date Fair Value
Outstanding as of December 31, 20246,675,938 $8.93 
Granted1,496,600 $12.06 
Vested(1,486,607)$8.40 
Forfeited(174,496)$9.55 
Outstanding as of March 31, 20256,511,435 $9.75 
v3.25.1
Net Loss Per Share (Tables)
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Calculation of Basic and Diluted Net Loss Per Share
The following tables present the calculation of basic and diluted net loss per share for the three months ended March 31, 2025 and 2024 (in thousands, except share and per share amounts):
Three Months Ended March 31,
20252024
Numerator:
Net loss$(8,825)$(7,203)
Denominator:
Weighted-average common shares outstanding - basic and diluted73,806,981 70,452,944 
Net loss per share
Net loss per share, basic and diluted$(0.12)$(0.10)
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share
The following potentially outstanding common shares were excluded from the computation of diluted net loss per share attributable to common stockholders as of the end of the periods presented because their inclusion would have been antidilutive:
March 31, 2025March 31, 2024
Options to purchase common stock1,374,898 1,778,112 
Number of shares issuable from ESPP168,046 130,113 
Restricted stock units6,511,435 8,286,146 
Total8,054,379 10,194,371 
v3.25.1
Segment Reporting (Tables)
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
The following table presents information about reported segment revenue, significant segment expenses, and segment net loss for the three months ended March 31, 2025 and 2024 (in thousands):
Three Months Ended March 31,
20252024
Revenue55,809 47,173 
Costs and Expenses:
Direct costs of goods sold9,557 8,266 
Payroll and employee-related costs41,651 35,519 
Marketing costs4,730 3,495 
Partner costs1,235 959 
Professional fees1,701 1,030 
Facilities costs2,014 2,076 
Software costs3,060 2,895 
Capitalized software deferred costs(473)(305)
Other segment items1
1,159 441 
Net loss(8,825)(7,203)
¹ Other segment items include interest income and expense, other income, income taxes, property tax, bad debt expense, business insurance, and travel-related expenses.
v3.25.1
Basis of Presentation and Summary of Significant Accounting Policies (Details)
 3 Months Ended
Mar. 31, 2025
segment
Accounting Policies [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.25.1
Revenue - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]      
Deferred revenue recognized $ 18,900 $ 19,300  
Amortization of deferred contract costs 3,533 $ 3,292  
Allowance for doubtful accounts $ (500)   $ (500)
v3.25.1
Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Disaggregation of Revenue [Line Items]    
Phone Hardware (embedded lease) $ 1,506 $ 1,121
Total revenue 55,809 47,173
Subscription and payment processing    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer 53,415 45,092
Onboarding    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer $ 888 $ 960
v3.25.1
Fair Value Measurements - Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments $ 44,819 $ 47,534
US government and agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 29,518 32,323
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 15,301 15,211
Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 81,976 79,242
Fair Value, Recurring | US government and agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 29,518 32,323
Fair Value, Recurring | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 15,301 15,211
Fair Value, Recurring | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 37,157 31,708
Fair Value, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 66,675 64,031
Fair Value, Recurring | Level 1 | US government and agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 29,518 32,323
Fair Value, Recurring | Level 1 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 0 0
Fair Value, Recurring | Level 1 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 37,157 31,708
Fair Value, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 15,301 15,211
Fair Value, Recurring | Level 2 | US government and agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 0 0
Fair Value, Recurring | Level 2 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 15,301 15,211
Fair Value, Recurring | Level 2 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Fair Value, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 0 0
Fair Value, Recurring | Level 3 | US government and agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments
Fair Value, Recurring | Level 3 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 0 0
Fair Value, Recurring | Level 3 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 0 $ 0
v3.25.1
Fair Value Measurements - Cash , Cash Equivalents and Short-term Investments (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Short-term investments    
Amortized Cost $ 44,812 $ 47,512
Gross Unrealized Gains 16 31
Gross Unrealized Losses (9) (9)
Fair Value 44,819 47,534
Cash and Cash Equivalents    
Cash 16,253 19,888
Money market funds 37,157 31,708
Total 53,410 51,596
US government and agency securities    
Short-term investments    
Amortized Cost 29,511 32,309
Gross Unrealized Gains 15 23
Gross Unrealized Losses (8) (9)
Fair Value 29,518 32,323
Commercial paper    
Short-term investments    
Amortized Cost 15,301 15,203
Gross Unrealized Gains 1 8
Gross Unrealized Losses (1) 0
Fair Value $ 15,301 $ 15,211
v3.25.1
Fair Value Measurements - Narrative (Details)
 3 Months Ended
Mar. 31, 2025
USD ($)
security
Mar. 31, 2024
USD ($)
Dec. 31, 2024
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Continuous unrealized loss position, 12 months or longer, number of positions | security 0    
Fair value of debt $ 0   $ 0
Realized investment gains $ (400,000) $ (600,000)  
Weighted Average      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, term 3 months    
v3.25.1
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 23,587 $ 24,426
Less accumulated depreciation and amortization (15,025) (15,983)
Property and equipment, net 8,562 8,443
Office equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 5,187 6,626
Office furniture    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 5,670 5,670
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 2,796 2,763
Capitalized internal-use software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 7,525 7,059
Payment terminals    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 2,409 $ 2,308
v3.25.1
Property and Equipment - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Property, Plant and Equipment [Line Items]    
Depreciation $ 2,800 $ 3,000
Amortization of right-of-use assets 1,788 1,820
Cost of Revenue    
Property, Plant and Equipment [Line Items]    
Depreciation 500 500
Operating Expense    
Property, Plant and Equipment [Line Items]    
Depreciation 500 700
Phone hardware    
Property, Plant and Equipment [Line Items]    
Amortization of right-of-use assets $ 1,800 $ 1,800
v3.25.1
Leases - Schedule of Lease Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Lease expense    
Amortization of right-of-use assets $ 1,788 $ 1,820
Interest on lease liabilities 347 318
Operating lease expense 1,386 1,423
Short-term lease expense 10 8
Variable lease expense 88 47
Total lease expense 3,619 3,616
Finance leases:    
Operating cash outflow from finance leases 347 318
Financing cash outflow from finance leases 1,773 1,787
Finance lease liabilities arising from obtaining finance lease right-of-use assets 2,177 1,871
Operating leases:    
Operating cash outflow from operating leases 1,416 1,431
Operating lease liabilities arising from obtaining operating lease right-of-use assets $ 0 $ 149
Finance leases:    
Weighted-average remaining lease term (years) 1 year 10 months 24 days  
Weighted-average discount rate 11.10%  
Operating leases:    
Weighted-average remaining lease term (years) 7 years 9 months 18 days  
Weighted-average discount rate 3.90%  
v3.25.1
Leases - Narrative (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
USD ($)
lease
Mar. 31, 2024
USD ($)
Lessee, Lease, Description [Line Items]    
Lease income $ 1,506 $ 1,121
Sublease income $ 200 200
Number of leases | lease 94  
Phone hardware finance lease $ 21,100  
Amortization of right-of-use assets 1,788 1,820
Phone Hardware (embedded lease)    
Lessee, Lease, Description [Line Items]    
Amortization of right-of-use assets 1,800 1,800
Office Space    
Lessee, Lease, Description [Line Items]    
Operating lease expense $ 1,400 $ 1,400
v3.25.1
Leases - Schedule of Maturities of Operating Lease Liabilities (Details)
$ in Thousands
Mar. 31, 2025
USD ($)
Leases [Abstract]  
2025 $ 4,284
2026 5,843
2027 5,989
2028 6,139
2029 6,292
Thereafter 20,403
Total 48,950
Less: imputed interest (6,881)
Present value of operating lease obligations $ 42,069
v3.25.1
Leases - Schedule of Maturities of Finance Lease Liabilities (Details)
$ in Thousands
Mar. 31, 2025
USD ($)
Leases [Abstract]  
2025 $ 6,154
2026 5,447
2027 3,024
2028 392
2029 0
Thereafter 0
Total 15,017
Less: amounts representing interest (1,636)
Present value of finance lease obligations $ 13,381
v3.25.1
Income Taxes (Details) - USD ($)
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Income Tax Disclosure [Abstract]    
Provision for income taxes $ 71,400 $ 14,100
Effective tax rate (0.80%) (0.20%)
v3.25.1
Debt (Details) - Line of Credit - USD ($)
 1 Months Ended
Aug. 31, 2021
Mar. 31, 2025
Debt Instrument [Line Items]    
Outstanding balance   $ 0
Revolving credit facility    
Debt Instrument [Line Items]    
Borrowing capacity $ 50,000,000.0  
Basis spread on variable rate (percent) 0.25%  
Debt agreement fee $ 100,000  
Unused line fee (percent) 0.15%  
Debt covenant, outstanding principal balance threshold $ 10,000,000.0  
Debt covenant, minimum unrestricted cash and cash equivalents 100,000,000.0  
Debt covenant, minimum consolidated liquidity $ 20,000,000.0  
Revolving credit facility | Minimum    
Debt Instrument [Line Items]    
Interest rate, minimum (percent) 3.50%  
v3.25.1
Stockholders’ Equity - Equity Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total $ 8,985 $ 6,772
Cost of revenue    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total 285 239
Sales and marketing    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total 1,841 1,151
Research and development    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total 2,362 1,898
General and administrative    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total $ 4,497 $ 3,484
v3.25.1
Stockholders’ Equity - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Oct. 31, 2021
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Mar. 31, 2023
Nov. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based payment arrangement, expense   $ 8,985 $ 6,772      
Unrecognized equity-based compensation expense   200 2,600      
Payments for taxes related to net share settlement of equity awards   $ (26) $ (6,101)      
Employee Stock Options            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   4 years        
Expected term   6 years        
Employee Stock Options | Weighted Average            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   5 months 4 days 1 year 7 days      
Employee Stock Options | Tranche One            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   1 year        
Options Granted in Lieu of Bonuses | Minimum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   2 years        
Options Granted in Lieu of Bonuses | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   3 years        
Restricted stock units            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   3 years        
Granted (in shares)   1,496,600        
Share-based payment award, equity instruments other than options, vested in period, fair value   $ 12,500 $ 6,400      
Share-based cost not yet recognized   $ 57,000        
Restricted stock units | Non-Employee Directors With Three-Year Vesting Schedule            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   3 years        
Granted (in shares)   19,788        
Restricted stock units | Non-Employee Directors With One-Year Vesting Schedule            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   1 year        
Granted (in shares)   116,298        
Vesting percentage   100.00%        
Restricted stock units | Minimum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   3 years        
Restricted stock units | Weighted Average            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Period for share-based expense recognition (in years)   2 years 3 months 18 days        
Restricted stock units | Tranche One            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   1 year        
Vesting percentage   33.00%        
Restricted stock units | Tranche One | Non-Employee Directors With Three-Year Vesting Schedule            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   1 year        
Vesting percentage   33.00%        
Restricted stock units | Tranche Two            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   2 years        
Vesting percentage   67.00%        
Restricted stock units | Tranche Two | Non-Employee Directors With Three-Year Vesting Schedule            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   2 years        
Vesting percentage   67.00%        
Restricted stock units | Tranche Two | Non-Employee Directors With One-Year Vesting Schedule            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term   1 year        
ESPP            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares authorized (in shares)   4,034,053   3,301,800    
Share-based compensation arrangement by share-based payment award, authorized (in shares)   732,253        
Share-based payment arrangement, expense   $ 200 $ 200      
Contribution limit as a percent of base compensation (in percent) 50.00%          
Purchase price of stock (in percent) 85.00%          
Maximum number of shares per employee (in shares) 2,500          
Shares issued during period (in shares)   796,200   677,635    
Share-Based compensation arrangement by share-based payment award, purchase period   6 months        
Share-based payment arrangement, employee contributions withheld   $ 500   $ 1,000    
Share-based payment arrangement, amount capitalized   $ 300        
2021 Equity Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares authorized (in shares)           9,000,000.0
Share-based compensation arrangement by share-based payment award, authorized (in shares)   3,700,000 3,500,000      
Share-based payment arrangement, expense   $ 8,800 $ 6,600      
2022 Equity Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares authorized (in shares)         7,000,000.0  
v3.25.1
Stockholders’ Equity - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Number of Stock Options    
Outstanding as of beginning of the period (in shares) 1,461,110  
Exercisable as of beginning of the period (in shares) 1,400,993  
Granted (in shares) 0  
Exercised (in shares) (86,212)  
Forfeited and expired (in shares) 0  
Outstanding as of end of the period (in shares) 1,374,898 1,461,110
Exercisable as of end of the period (in shares) 1,325,547 1,400,993
Weighted Average Exercise Price    
Outstanding as of beginning of the period (in dollars per share) $ 4.01  
Exercisable as of beginning of the period (in dollars per share) 3.88  
Granted (in dollars per share) 0  
Exercised (in dollars per share) 4.35  
Forfeited and expired (in dollars per share) 0  
Outstanding as of end of the period (in dollars per share) 3.98 $ 4.01
Exercisable as of end of the period (in dollars per share) $ 3.91 $ 3.88
Weighted Average Remaining Contractual Life (years)    
Outstanding 4 years 6 months 10 days 4 years 6 months 14 days
Exercisable 4 years 5 months 26 days 4 years 5 months 15 days
Aggregate Intrinsic Value (in thousands)    
Outstanding $ 9,630 $ 17,408
Exercisable $ 9,513 $ 16,866
v3.25.1
Stockholders’ Equity - Restricted Stock Unit Activity (Details) - Restricted stock units
 3 Months Ended
Mar. 31, 2025
$ / shares
shares
Number of Shares  
Beginning balance outstanding (in shares) | shares 6,675,938
Granted (in shares) | shares 1,496,600
Vested (in shares) | shares (1,486,607)
Forfeited (in shares) | shares (174,496)
Ending balance outstanding (in shares) | shares 6,511,435
Weighted Average Grant Date Fair Value  
Beginning balance outstanding (in dollars per share) | $ / shares $ 8.93
Granted (in dollars per share) | $ / shares 12.06
Vested (in dollars per share) | $ / shares 8.40
Forfeited (in dollars per share) | $ / shares 9.55
Ending balance outstanding (in dollars per share) | $ / shares $ 9.75
v3.25.1
Related Party Transactions (Details) - USD ($)
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Related Party Transactions [Abstract]    
Related party transactions $ 0 $ 0
v3.25.1
Net Loss Per Share - Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Numerator:    
Net loss $ (8,825) $ (7,203)
Denominator:    
Weighted-average common shares outstanding - basic (in shares) 73,806,981 70,452,944
Weighted-average common shares outstanding - diluted (in shares) 73,806,981 70,452,944
Net loss per share    
Net loss per share, basic (in dollars per share) $ (0.12) $ (0.10)
Net loss per share, diluted (in dollars per share) $ (0.12) $ (0.10)
v3.25.1
Net Loss Per Share - Antidilutive Securities (Details) - shares
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities (in shares) 8,054,379 10,194,371
Options to purchase common stock    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities (in shares) 1,374,898 1,778,112
Number of shares issuable from ESPP    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities (in shares) 168,046 130,113
Restricted stock units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities (in shares) 6,511,435 8,286,146
v3.25.1
Segment Reporting - Narrative (Details)
 3 Months Ended
Mar. 31, 2025
segment
Segment Reporting [Abstract]  
Number of reportable segments 1
v3.25.1
Segment Reporting - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Segment, Reconciliation of Other Items from Segments to Consolidated [Line Items]    
Revenue $ 55,809 $ 47,173
Costs and Expenses:    
Net loss (8,825) (7,203)
Reportable Segment    
Segment, Reconciliation of Other Items from Segments to Consolidated [Line Items]    
Revenue 55,809 47,173
Costs and Expenses:    
Direct costs of goods sold 9,557 8,266
Payroll and employee-related costs 41,651 35,519
Marketing costs 4,730 3,495
Partner costs 1,235 959
Professional fees 1,701 1,030
Facilities costs 2,014 2,076
Software costs 3,060 2,895
Capitalized software deferred costs (473) (305)
Other segment items 1,159 441
Net loss $ (8,825) $ (7,203)
v3.25.1
Subsequent Events - Narrative (Details) - TrueLark - Subsequent Event - Forecast
$ in Millions
 2 Months Ended
Jun. 30, 2025
USD ($)
shares
Subsequent Event [Line Items]  
Consideration transferred $ 35.0
Payments in cash 25.0
Equity interests issued $ 10.0
Number of shares issued (in shares) | shares 999,810
Vesting term 2 years