WM Technology, Inc. (“WM Technology” or the “Company”) (Nasdaq: MAPS), a leading technology and software infrastructure provider to the cannabis industry, today announced its financial results for the third quarter ended September 30, 2023.
“We are pleased with our third quarter results as they reflect our commitment to operational efficiency in what continues to be constrained end markets,” said Doug Francis, Executive Chair of WM Technology. “I am proud of our team for their continued focus and discipline, allowing us to drive a strong bottom line this quarter.”
Third Quarter 2023 Financial Highlights
- Revenue was $47.7 million as compared to $50.5 million in the third quarter of 2022 (“prior year period”).
- Average monthly paying clients(1) was 5,414, as compared to 5,576 from the prior year period.
- Average monthly revenue per paying client(2) was $2,938, as compared to $3,019 from the prior year period.
- Net loss was $2.5 million as compared to net loss of $10.5 million from the prior year period.
- Adjusted EBITDA(3) was $10.7 million as compared to $(9.6) million from the prior year period.
- Basic and diluted net loss per share were both $0.02 based on 93.7 million of Class A Common Stock weighted average basic and diluted shares outstanding, respectively.
- Total shares outstanding across Class A and Class V Common Stock were 149.4 million as of September 30, 2023.
- Cash totaled $27.7 million as of September 30, 2023, with no debt.
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 and Adjusted EBITDA as well as limitations of their use and a reconciliation of EBITDA and Adjusted EBITDA to net income (loss), see “Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA” below. |
Business Outlook
Based on information available as of November 8, 2023, WM Technology is issuing guidance for the fourth quarter of 2023 as follows:
- Revenue is estimated to be $47 million.
- Non-GAAP Adjusted EBITDA(1) is estimated to be approximately $5 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 (loss) without unreasonable effort. This guidance assumes that no business acquisitions, investments, restructurings, or legal settlements are concluded in the period. 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.
Investor Call and Webcasts
The Company will host a conference call and webcast today, Wednesday, November 8, 2023, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) at https://edge.media-server.com/mmc/p/u6ey6dpj. A replay of the webcast 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.
