Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• WM Technology Inc $(MAPS)$ achieved sequential growth and profitability in the fourth quarter of 2024, with $47.7 million in revenue and $11.9 million in adjusted EBITDA.
• The company ended the year with a strong debt-free balance sheet, closing with $52 million in cash.
• WM Technology Inc (NASDAQ:MAPS) experienced a 3% increase in revenue compared to the fourth quarter of the prior year, driven by growth from deal listings and display ad products.
• The company reported a net income of $3.7 million for the fourth quarter, compared to a net loss of $11.2 million in the same period last year.
• WM Technology Inc (NASDAQ:MAPS) successfully collected significant past due accounts, boosting free cash flow in 2024.

Negative Points

• The average monthly revenue per paying client in Q4 decreased by 2% compared to the prior year period due to ongoing client marketing budgetary constraints.
• The company faced challenges from regulatory burdens, wholesale pricing pressures, and competition from illicit and hemp markets.
• WM Technology Inc (NASDAQ:MAPS) reported a decline in full-year revenue to $184.5 million from $188 million in the prior year.
• The average monthly paying clients for the full year period declined to 5,077 from 5,419 in the prior year.
• The company anticipates regulatory uncertainty and ongoing industry pressures to continue impacting client profitability and driving further consolidation.

Q & A Highlights

• Warning! GuruFocus has detected 4 Warning Sign with MAPS.

Q: Can you provide more details on the revenue growth drivers for the fourth quarter? A: Susan Echard, CFO, explained that the revenue growth in Q4 was driven by an increase in deal listings and display ad products. However, this was partially offset by lower spending on featured listings and the impact of products discontinued in Q4 of the previous year.

Q: How did the average monthly paying clients perform in Q4, and what factors influenced this? A: Susan Echard noted that Q4 saw an increase in average monthly paying clients to 5,225, marking a 4% increase from the previous year. This growth was attributed to new client acquisitions and reactivations, despite some churn due to ongoing industry pressures.

Q: What were the main challenges faced by WM Technology in 2024, and how did the company address them? A: Doug Francis, CEO, highlighted regulatory burdens, pricing pressures, and competition from illicit and hemp markets as significant challenges. The company focused on optimizing its operating structure and strengthening its core marketplace to navigate these issues.

Q: What is the company's strategy for 2025 in terms of investments and growth? A: Doug Francis stated that WM Technology plans to prioritize investments in technology and marketing to enhance the Weedmaps platform. The focus will be on initiatives that drive long-term value while maintaining cost management.

Q: How did the company's financial position change by the end of 2024? A: Susan Echard reported that WM Technology ended 2024 with a strong, debt-free balance sheet and $52 million in cash. This was achieved through operational discipline and effective management of accounts receivable and collections.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.