IRVINE, Calif.–(BUSINESS WIRE) — PRESS RELEASE –WM Technology, Inc., a technology and software infrastructure provider to the cannabis industry, today announced its financial results for the first quarter ended March 31, 2022.
“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,” said Chris Beals, CEO of WM Technology. “We continue to deliver what we believe is outsized value to our clients and this allows us to grow faster than our end markets as businesses rely on our marketplace and solutions to grow their own businesses. At the same time, we are accelerating the pace of new features and integrations throughout our WM Business software platform. We are driving innovation in ways that will be more visible over the course of this year as we invest in large opportunities designed to accelerate growth. Our team remains hard at work and focused on executing against driving deep client engagement, establishing Weedmaps as the center of commerce for Cannabis consumers and expanding the adoption of our products.”
First Quarter 2022 Financial Highlights
Revenue increased to $57.5 million, up 40% from the first quarter of 2021.Monthly active users (“MAUs”) increased to 16.4 million at March 31, 2022, up 52% compared to the prior year period.MAU growth of 73% when adjusting the current period to exclude the MAUs attributed to the Learn section of weedmaps.com that we were not able to track during the prior 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(5) 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.
First Quarter 2022 Operational Highlights
Added over 250 Average Monthly Paying clients in the quarter including in new states like Montana, which opened for recreational sales in January.Completed the roll-out of our Admin 2.0 portal. This surface includes a data and analytics dashboard to help our paying clients understand the significant value they derive from their spending on Weedmaps as well as local market trends. Admin 2.0 also lays the groundwork for future updates like our self-serve toolset, which will automate onboarding of new clients onto our marketplace and enable cross-product adoption and purchase upsell opportunities.Continued to improve our Deals offering with new enablement features to allow clients to publish deals at scale across their listings. We also created a new “Promotions Hub” within Admin 2.0, allowing clients to create and manage all promotions including online promo codes, in-store deals, and online deals from one place. We also rolled out new Promotions features within our WM Store eCom embed allowing clients to showcase promotions more easily on their own channels powered by WM Store.Completed the acquisition of Eyechronic, LLC. Enlighten’s ‘SmartHub’ subscription offering powers in-store digital menus and kiosks, and its ‘AdSuite’ in-store digital solution allows brands to reach consumers at the point of purchase. Enlighten adds to the value included in our WM Business platform.Expanded our available Menu and Order integrations. We now have Menu integrations in live or beta state with the key point-of-sale systems serving Cannabis and are continuing to roll-out Orders integrations with these same partners.Piloted several promising new user enhancements, including ‘express reorder’ and ‘order again’ features, along with ‘order-type’ preferences, allowing users to more easily filter through available delivery versus pickup options. We also continue to test menu personalization leveraging our first-party user affinity data.As part of our efforts to stitch our solutions more closely together, we launched an in-app messaging feature beta where businesses using our Sprout CRM solution are able to directly reach and message their followers on the Weedmaps marketplace.Continued to invest in headcount, with over 150 new hires in Q1, mostly in our Engineering, Product & Design teams as well as across our regional go-to-market teams.
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 2021We 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
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 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 quarter. 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.