Leafly FY22 Revenue Grows 10%, Announces Workforce Reduction Of 21% - 'Optimizing Teams For Efficiency'

Leafly Holdings, Inc. LFLY revenue was $47.4 million for the year ended December 31, 2022, an increase of 10% compared to $43 million in the prior year.

Full Year 2022 Financial Results

• Gross margin was 88%, consistent with FY 2021.

• Net income for 2022 was $5.1 million, compared to net loss of $12.0 million in FY 2021.

• Adjusted EBITDA loss was $23.2 million, compared to adjusted EBITDA loss of $9.4 million in FY 2021.

Fourth Quarter 2022 Financial Results

• Total revenue was $12.1 million, in line with Q4 2021.

• Gross margin was 88%, consistent with Q4 2021.

• Net loss was $5.8 million, compared to net loss of $5.1 million in Q4 2021.

• Adjusted EBITDA loss was $4.2 million, compared to adjusted EBITDA loss of $4.1 million in Q4 2021.

Cost Savings

The company announced a headcount reduction of approximately 40 positions - or 21% of the company’s workforce - through a combination of layoffs and attrition. The company expects a one-time cash restructuring charge for the layoffs of approximately $700,000 in Q1 of 2023. Leafly expects total annual cash savings on an annual basis of approximately $8 million, beginning in Q2.

“Despite a year filled with challenges broadly for the cannabis industry, and the associated impact on our revenue growth, we grew the number of subscribing retailers and brands using our platform by double digits in 2022 and continued to focus on delivering an outstanding consumer experience while driving more value for clients who use Leafly to reach high-intent shoppers. Our recently launched products, combined with our subscriber base, continue to create opportunities for us to increase monetization,” stated Yoko Miyashita, CEO of Leafly. “At the same time, we’ve been intently focused on managing our expenses and cash flow. With softer ad spend expected to continue in 2023, we are driving deeper relationships with our customers and optimizing teams for efficiency."

Financial Outlook

Leafly issued first quarter 2023 guidance. Based on current business trends and conditions, the financial outlook is expected to be as follows:

For the first quarter 2023, Leafly expects revenue to be between $11.0 million and $11.3 million

Adjusted EBITDA loss to be in the range of $4.3 million to $4.0 million.

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