Weed-Focused Tech Company Reports Positive Adjusted EBITDA In Q2, What About Net Income?

Cannabis-focused tech company WM Technology, Inc. MAPS released its financial results for the second quarter ended June 30, 2023, disclosing revenue of $50.9 million, compared to $48.0 million in the previous quarter and $58.3 million in the same period last year.

“Our second quarter results reflect the positive changes we have made to our business over the past few quarters and our commitment to returning to positive cash flow and Adjusted EBITDA,” stated Doug Francis, executive chair of WM Technology. “We continue to strengthen our financial position, and we’re seeing the strategic and operational changes we’ve implemented take hold, delivering increased value to our stakeholders which in turn will generate long-term, sustainable growth and profitability for WM Technology. It’s imperative that we continue to develop and deliver valuable products and services for our clients, ensuring Weedmaps is the best destination for consumers to discover and order cannabis through participating retailers. While there is more to do, I am proud of the progress we have made to date.”

Q2 2023 Financial Highlights

• Net income was $2.0 million as compared to net income of $19.8 million from the prior year period.

• Adjusted EBITDA was a gain of $10.2 million as compared to an adjusted EBITDA loss of $595,000 in the second quarter of 2022.

• Basic and diluted net income per share were both $0.01 based on 92.9 million and 93.6 million of Class A Common Stock weighted average shares outstanding, respectively.

• Cash totaled $24.6 million as of June 30, 2023, with no debt.

Business Outlook

Based on information available as of August 8, 2023, WM Technology is issuing guidance for the third quarter of 2023 as follows:

• Revenue is estimated to be $47 million

• Non-GAAP Adjusted EBITDA⁽ is estimated to be approximately $4 million.

Price Action

WM Tech shares were trading 3.33% higher at $1.24 during Wednesday’s pre-market session.

Benzinga Cannabis Capital Conference

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo: Courtesy of Avery Meeker on Unslpash