WM Technology, Inc. (NASDAQ:MAPS) released its financial results for the second quarter ended June 30, 2022, revealing revenue increased to $58.3 million, up 24% from the second quarter of 2021.
Second Quarter 2022 Financial Highlights
Gross Profit was $54.4 million implying a 93% margin rate, which reflects a 250bps margin reduction from the prior year given investments made in new client solutions, the company’s WM AdSuite offering and continued investment in data initiatives.
Net income was $19.8 million as compared to net income of $16.8 million from the prior year period.
Adjusted EBITDA was $(0.6) million as compared to $8.5 million from the prior year period.
Basic and diluted net income per share was $0.14 and $0.13 based on 86.4 million and 87.2 million of class A common stock weighted average shares outstanding, respectively.
Total shares outstanding across class A and class V common stock is 145.3 million as of June 30, 2022.
Cash totaled $47.6 million as of June 30, 2022, with no long-term debt.
“Our second quarter results demonstrates how our strategy continues to drive growth for WM Technology as we grew our second quarter net revenue by 24% year-over-year to reach $58 million and increased average monthly paying clients to 5,537, both quarterly records,” stated Chris Beals, CEO of WM Technology.
“We believe these results again demonstrate how WM Technology is the enduring platform for the cannabis end-markets. And while the current macro environment, including challenges specific to the cannabis end-markets, did impact our results, our pace of innovation and continuing to deliver healthy returns to our clients resulted in us achieving growth that exceeded our end markets by a wide-margin. Clients continue to rely on our marketplace and WM Business solutions to help grow their own businesses. For that reason, we remain focused on executing against our plans to establish the Weedmaps marketplace as the center of commerce for cannabis consumers and WM Business as the software solution of choice for cannabis businesses,” continued Beals.
Second Half and Full Year 2022 Business Outlook
Based on current business trends and conditions, the company is planning against an outlook where total revenue is flat-to-down in the mid-single digit percent area on a year-over-year basis for the second half, which implies a low double-digit percent growth rate for the full year 2022. The company expects to end the year with positive adjusted EBITDA for the full year 2022.
Co-Founder Douglas Francis Appointed Executive Chair
The company’s board of directors has appointed WM Technology’s co-founder Douglas Francis as executive chair. In this newly created role, Francis will provide additional oversight and directly engage with management in developing the company’s strategy and driving its execution.
WM Technology shares were trading 27% lower at $2.4988 during Wednesday's pre-market session.
Some analysts recently lowered their price targets for the Weedmaps stock, and that might be the reason for this drop in price.
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