Leafly Holdings Full Year 2021 Net Loss Grows By 20% YoY To $12M

Leafly Holdings, Inc. LFLY reported financial results for its fourth quarter and year, ended December 31, 2021, with quarterly revenue of $12.1 million, up 30% over Q4 2020.

Q4 Financial Highlights

• Gross margin was 88%, up from 85% in Q4 2020

• Total operating expense was $15.1 million, up 71% over $8.9 million in Q4 2020, primarily reflecting increased costs associated with additional headcount and ramping of advertising and marketing spend

• Net loss was $5.1 million, compared to net loss of $1.0 million in Q4 2020

• Adjusted EBITD was a loss of $4.1 million, compared to adjusted EBITDA loss of $0.7 million in Q4 2020

Full Year 2021 Financial Results

• Revenue was $43.0 million, up 18% over FY 2020

• Gross margin was 88%, up from 86% in FY 2020

• Total operating expense was $48.7 million, up 20% over $40.7 million in FY 2020, primarily reflecting increased sales and marketing expenses, up $6.5 million or 49% over FY 2020

• Net loss was $12.0 million, compared to net loss of $10.0 million in FY 2020

• Adjusted EBITDA loss was $9.4 million, compared to adjusted EBITDA loss of $7.9 million in FY 2020

Business Highlights

• On February 4, 2022, Leafly and Merida Merger Corp. I completed their business combination. The trading symbols of the combined company’s shares of common stock and warrants changed to LFLY and LFLYW, respectively, on Nasdaq on February 7, 2022.

• Through its convertible note financing in 2021, Leafly raised $31.5 million, and ended 2021 with cash and cash equivalents on the balance sheet of $28.6 million.

“2021 was a record year for Leafly, and our success sets the foundation for long-term growth and expanded opportunity in this large and growing market. The investments we’ve made to date have delivered topline results, and have allowed us to increase penetration in targeted markets,” stated Yoko Miyashita, CEO of Leafly. “Leafly is a marketplace that connects consumers with information, and licensed brands and retailers. With our recent influx of capital, we plan to expand the number of retailers and brands on Leafly, invest in market-leading tools that drive strong value for retailers and brands, and strengthen our consumer shopping experience with the best of our editorial and educational cannabis content.”

As Leafly nears the end of the first quarter 2022, it anticipates revenue to be approximately $11.3 million for the quarter.