Announces Fourth Quarter 2022 Financial Results with Revenue of $49.3 million with Full Year Revenue of $215.5 million
IRVINE, Calif.–(BUSINESS WIRE)–Mar. 16, 2023– WM Technology, Inc. (“WM Technology” or the “Company”) (Nasdaq: MAPS), a leading technology and technology solutions provider to the cannabis industry, today announced its financial results for the fourth quarter ending December 31, 2022.
“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,” said 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.”
Fourth Quarter 2022 Financial Highlights
- Revenue was $49.3 million as compared to $54.2 million in the fourth quarter of 2021.
- Average monthly paying clients(1) was 5,689, as compared to 4,766 in the prior year period.
- Average monthly revenue per paying client(2) was $2,888, as compared to $3,789 in the prior year period.
- 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(3) 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(3)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.
- Total shares outstanding across Class A and Class V Common Stock were 147.5 million as of December 31, 2022.
- Cash totaled $28.6 million as of December 31, 2022, with no long-term debt.
Fiscal Year 2022 Financial Highlights
- Revenue was $215.5 million for the year ended December 31, 2022, as compared to $193.1 million in the prior year.
- Average monthly paying clients(1) was 5,457, as compared to 4,337 in the prior year.
- Average monthly revenue per paying client(2) was $3,291, as compared to $3,711 in the prior year.
- Net loss was $82.7 million as compared to net income of $152.2 million in the prior year.
- Adjusted EBITDA(3) 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.
Reconciliations of GAAP to non-GAAP financial measures have been provided in the tables included in this release.
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| (1) | Average monthly paying clients are defined as the average of the number of paying clients billed in a month across a particular period (and for which services were provided). | |
| (2) | Average monthly revenue per paying client is defined as the average monthly revenue for any particular period divided by the average monthly paying clients in the same respective period. | |
| (3) | For further information about how we calculate EBITDA, Adjusted EBITDA, and Adjusted EBITDA before Provision for Doubtful Accounts as well as limitations of their use and a reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA before Provision for Doubtful Accounts to net (loss) income, see “Reconciliation of Net (Loss) Income to EBITDA, Adjusted EBITDA, and Adjusted EBITDA before Provision for Doubtful Accounts” below. |
Business Outlook
Based on information available as of March 16, 2023, WM Technology is issuing guidance for the first quarter of 2023 as follows:
- Revenue is estimated to be $47 million.
- Non-GAAP Adjusted EBITDA(1) is estimated to be approximately $4 million.
The guidance provided above is only an estimate of what we believe is realizable as of the date of this release. We are not readily able to provide a reconciliation of projected Non-GAAP Adjusted EBITDA to projected net income without unreasonable effort. This guidance assumes that no business acquisitions, investments, restructurings, or legal settlements are concluded in the periods. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements.” Actual results may vary from the guidance and the variations may be material. We undertake no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
(1) For further information about how we calculate EBITDA, Adjusted EBITDA, and Adjusted EBITDA before Provision for Doubtful Accounts as well as limitations of their use and a reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA before Provision for Doubtful Accounts to net (loss) income, see “Reconciliation of Net (Loss) Income to EBITDA, Adjusted EBITDA, and Adjusted EBITDA before Provision for Doubtful Accounts” below.
Investor Conference Call and Webcasts
The Company will host a conference call and webcast today, Thursday, March 16, 2023, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) at https://edge.media-server.com/mmc/p/nbphbmfy. A webcast replay will also be archived at ir.weedmaps.com.
The Company has used, and intends to continue to use, the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.
