Weedmaps Stock Trading Higher On FY22 Revenue Growth Of 11%

WM Technology, Inc. MAPS revenue was $215.5 million for the year ended December 31, 2022, an increase of 11% compared to $193.1 million in the prior year.

Q4 2022 Financial Highlights

• Revenue was $49.3 million, a decrease of 9% compared to $54.2 million in the fourth quarter of 2021.

• Net loss was $60.8 million as compared to net income of $78.4 million in the prior year period. The net loss included the impact of severance payments related to headcount reductions as well as a non-cash charge related to a full valuation allowance recorded against deferred tax assets.

• Adjusted EBITDA was $1.5 million as compared to $3.8 million in the prior year period. Prior to provision for doubtful accounts (non-cash), adjusted EBITDA was $3.9 million as compared to $6.3 million in the prior year period.

• Basic and diluted net loss per share were $1.19 based on 91.4 million weighted average shares of class A common stock outstanding.

• Cash totaled $28.6 million as of December 31, 2022, with no long-term debt.

Fiscal Year 2022 Financial Highlights

• Net loss was $82.7 million as compared to net income of $152.2 million in the prior year.

• Adjusted EBITDA was $(9.6) million as compared to $31.7 million in the prior year.

• Basic and diluted net loss per share were $1.36 based on 85.0 million weighted average shares of Class A Common Stock outstanding.

“Our fourth quarter results, consistent with our prior guidance, reflect both the continued importance of WM Technology to our clients and users as well as the challenging operating environment that exists today in cannabis,” stated Doug Francis, executive chair of WM Technology. “Having returned in November to an operating role at Weedmaps, I have spent the past four months listening to our clients’ needs and working actively with our teams to build an achievable plan for 2023. This plan will enable Weedmaps to expand our leadership role, help drive market stability, and allow our clients to experience profitable and sustainable growth. Further, we now have a financial outlook that returns us to our roots of top-line growth as well as positive adjusted EBITDA and cash flow.”

Business Outlook

Based on information available as of March 16, 2023, WM Technology issued guidance for the first quarter of 2023 as follows:

• Revenue is estimated to be $47 million.

• Adjusted EBITDA is estimated to be approximately $4 million.

Price Action

WM Technology shares were trading 8.97% higher at $0.85 during Friday's pre-market session.

Benzinga's Cannabis Capital Conference Is Back

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.

Photo by Giorgio Trovato on Unsplash