Cannabis Tech Leader Sees Revenue Falling But Losses Shrinking

WM Technology Inc MAPS, the California-based tech provider behind Weedmaps, announced a mixed financial performance for Q3 2023.

Q3 2023 Financial Highlights

• Revenue decreased to $47.7 million from $50.5 million in the same quarter last year.
• Despite the reduction in revenue, the net loss was $2.5 million compared to a $10.5 million loss in Q3 2022.
• Adjusted EBITDA stood at a positive $10.7 million, a stark contrast to the loss of $9.6 million from the previous year.

The average number of monthly paying clients dropped from 5,576 to 5,414, which aligns with the slight decline in average monthly revenue per client from $3,019 to $2,938.

Although gross profit was not announced in the report, WM Technology’s balance sheet remains stable with $27.7 million in cash and no debt, maintaining a good liquidity position. 

Adjusted EBITDA showed a positive shift to $10.7 million, compared to a negative $9.6 million previously, marking an improvement in the company's operational performance year-over-year.

Company's Stance and Forward Movement

As the company prepares for the final quarter of 2023, it projects revenues of around $47 million and an adjusted EBITDA of $5 million. This guidance reflects the cautious but strategic planning by the company amidst the volatile cannabis market, with a focus on maintaining profitability and sustainable growth.

MAPS Price Action

MAPS’ shares were trading 5.50% lower at $1.03 per share at the time of this writing around 2:30 PM ET Thursday.