WM Technology, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

Fourth Quarter 2024 Revenue of $47.7 million and Full Year Revenue of $184.5 million

Ninth Consecutive Quarter of Adjusted EBITDA Profitability and Full Year Net Income Profitability

IRVINE, Calif.--(BUSINESS WIRE)--March 13, 2025-- 

WM Technology, Inc. ("WM Technology" or the "Company") (Nasdaq: MAPS), a leading marketplace and technology solutions provider to the cannabis industry, today announced its financial results for the fourth quarter and year ending December 31, 2024.

"We are proud of our team's efforts and operational focus in delivering another period of strong financial results to close out the year," said Doug Francis, CEO of WM Technology. "Our operational discipline and ability to drive profitability have been key in navigating the unique challenges our industry faces, and we are now well-positioned to invest back in our people and technology. As we build for the future, we will continue to focus on the value of our marketplace and enhance the Weedmaps experience for both consumers and clients as we adapt in this evolving industry."

Fourth Quarter 2024 Financial Highlights

   -- Revenue of $47.7 million increased from $46.6 million in the prior 
      quarter and $46.5 million in the prior year period. The increase from the 
      prior year period was driven by increases in our Deal Listing and Display 
      Ad products. 
 
          -- Average monthly paying clients(1) of 5,225 increased from 5,100 in 
             the prior quarter and 5,014 in the prior year period. The increase 
             from the prior year period was due to new client acquisitions and 
             client reactivations, partially offset by churn across our mature 
             markets. 
 
          -- Average monthly revenue per paying client(2) of $3,041 was 
             consistent with $3,043 in the prior quarter and decreased from 
             $3,089 in the prior year period. The decrease from the prior year 
             period was driven by ongoing constraints on our clients' marketing 
             budgets and their limited capacity for upsells. 
 
   -- Net income decreased to $3.7 million from $5.3 million in the prior 
      quarter and increased from net loss of $11.2 million in the prior year 
      period. 
 
   -- Adjusted EBITDA(3) increased to $11.9 million from $11.3 million in the 
      prior quarter and $8.9 million in the prior year period. 

Fiscal Year 2024 Financial Highlights

   -- Revenue of $184.5 million decreased from $188.0 million in the prior 
      year. The decrease from the prior year was impacted by our clients 
      continuing to face constrained marketing budgets, the ongoing 
      consolidation of our industry, specifically amongst our client base, and 
      a loss in revenue from products that were sunset in December 2023, 
      partially offset by an increase in revenues from our Weedmaps for 
      Business, driven by favorable pricing changes. 
 
          -- Average monthly paying clients(1) of 5,077 decreased from 5,419 in 
             the prior year. The decrease from the prior year was due to the 
             decrease in client count related to the aforementioned sunset 
             products, the removal of paying clients from our platform who have 
             become delinquent, as well as client churn due to continued 
             industry challenges, such as price deflation and ongoing 
             consolidation. 
 
          -- Average monthly revenue per paying client(2) of $3,029 increased 
             from $2,891 in the prior year. The increase from prior year was 
             due to the aforementioned sunset products, which had lower average 
             monthly spending clients. 
 
   -- Net income increased to $12.2 million from net loss of $15.7 million in 
      the prior year. 
 
   -- Adjusted EBITDA(3) increased to $42.9 million from $36.9 million in the 
      prior year. 
 
   -- Total shares outstanding across Class A and Class V Common Stock were 
      153.4 million as of December 31, 2024. 
 
   -- Cash increased to $52.0 million as of December 31, 2024, as compared to 
      $34.4 million as of December 31, 2023. 

Reconciliations of GAAP to non-GAAP financial measures have been provided in the tables included in this release.

 
______________________________ 
(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 revenues per paying client is defined as the average 
       monthly revenues for any particular period divided by the average 
       monthly paying clients in the same respective period. Average monthly 
       revenues per paying client is calculated in the same manner as our 
       previously-reported "Average monthly net revenue per paying client," 
       and the description of the metric is being updated solely because we 
       changed the reporting line item from "Net revenue" to "Revenue". See 
       "Basis of Presentation" and "Revenue Recognition" of Note 2. "Summary 
       of Significant Accounting Policies," of the Company's audited 
       consolidated financial statements included in the Company's Annual 
       Report on Form 10-K for fiscal year December 31, 2024. 
(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. 
 

"We believe that our financial performance directly reflects our ability to manage costs in line with revenue performance to maintain our profitability," said Susan Echard, CFO of WM Technology. "Through tighter collaboration across our teams and with our clients, we've been able to improve our accounts receivable and collections process, leading to recoveries of past-due accounts and strengthening the quality of our receivables. With a strong cash position and no financial debt, we remain focused on initiatives that provide the greatest impact to the company."

Business Outlook

While we are very pleased with the progress we made in 2024, the challenges we face as we enter 2025 remain and will require strategic investments to support our long-term growth and health. To that end, we are prioritizing key technology and marketing initiatives to further strengthen our platform. As a result, based on information available as of March 13, 2025, we are issuing guidance for the first quarter of 2025 as follows:

   -- Revenue is estimated to be approximately $43 million. 
 
   -- Non-GAAP Adjusted EBITDA is estimated to be approximately $7 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 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 Conference Call and Webcasts

We will host a conference call and webcast today, Thursday, March 13, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) at https://edge.media-server.com/mmc/p/y4xujkrd. A webcast replay will also be archived at ir.weedmaps.com.

We have used, and intend to continue to use, the investor relations portion of our website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.

About WM Technology

Founded in 2008, WM Technology operates Weedmaps, a leading cannabis marketplace for consumers, as well as a broad set of eCommerce and compliance software solutions for cannabis businesses and brands in U.S. state-legal markets. WM Technology holds a strong belief in the power of cannabis and the importance of enabling safe, legal access to consumers worldwide.

Over the past 16 years, the Weedmaps marketplace has become a premier destination for cannabis consumers to discover and browse cannabis-related products, access daily dispensary deals, order ahead for pick-up and delivery by participating retailers (where applicable) and learn about the plant. The Company also offers eCommerce-enablement tools designed to help cannabis retailers and brands reach consumers, create business efficiency, and manage industry-specific compliance needs.

The Company is committed to advocating for full U.S. legalization, industry-wide social equity, and continued education about the plant through key partnerships and cannabis subject matter experts.

Headquartered in Irvine, California, WM Technology supports remote and hybrid work for eligible employees. Visit us at www.weedmaps.com.

Forward-Looking Statements

(MORE TO FOLLOW) Dow Jones Newswires

March 13, 2025 16:52 ET (20:52 GMT)