Cannabis tech provider WM Technology Inc. (NASDAQ:MAPS), d.b.a. Weedmaps, announced Wednesday its financial results for the first quarter ended March 31, 2022, revealing revenue growth of 40% year-over-year to $57.5 million.
“Our first quarter results demonstrate how we’re playing offense and continuing to drive outsized growth as well as creating distance from the pack as the leading cannabis technology provider and commerce-driven marketplace. We grew our revenue 40% year-over-year to reach $57.5 million for the quarter, which was above the top end of our guidance, as we continued to grow our user and client base,” stated Chris Beals, CEO of WM Technology. “
First Quarter 2022 Financial Highlights
- Monthly active users (“MAUs”) increased to 16.4 million at March 31, 2022, up 52% compared to the prior year period.
- Average monthly revenue per paying client increased to $3,810, a 9% increase compared to the prior year period.
- Average monthly paying clients increased to 5,026, a 28% increase compared to the prior year period.
- Gross profit was $53.7 million implying a 93% margin rate, which reflects a 200bps margin reduction from the prior year given previously discussed growth investments and initiatives.
- Net loss was $(31.2) million as compared to net income of $7.7 million from the prior year period.
- Adjusted EBITDA was $(1.0) million as compared to $9.0 million from the prior year period.
- Basic and diluted net loss per share was $(0.19) based on 72.5 million of class A common stock weighted average shares outstanding.
- Total shares outstanding across class A and class V common stock is 144.3 million.
- Cash totaled $55.9 million as of March 31, 2022 and the company remains debt-free.
Second Quarter Business Outlook
Based on current business trends and conditions, our outlook for the second quarter ending June 30, 2022, is as follows:
- Revenue is estimated to be between $60 million and $63 million, which represents 28-34% growth over the second quarter of 2021
- We continue to expect our Adj. EBITDA margins for the First Half will be breakeven to slightly positive as we front-load previously discussed investments against growth opportunities for the back half of this year and FY23 strategic opportunities
WM Technology’s shares traded 4.15% lower at $6.00 per share during Thursday pre-market session.
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