WM Technology Inc Announces Second Quarter 2024 Financial Results
Intellectia.AI1970-01-01
WM Technology, Inc. Announces Second Quarter 2024 Financial Results
WM Technology, Inc. ("WM Technology" or the "Company") (NASDAQ:MAPS), a leading technology and software infrastructure provider to the cannabis industry, today released its financial results for the second quarter ended June 30, 2024.
Financial Highlights
| Financial Metric | Q2 2024 | Q2 2023 | YoY Change (%) | Consensus Estimates | Comparison to Consensus |
|---|---|---|---|---|---|
| Total Revenue | $45.9 million | $48.4 million | -5.2% | $43 million | Above Estimates |
| Earnings Per Share (EPS) | $0.02 | - | - | $0.02 | Met Estimates |
| Net Income | $1.2 million | $2.0 million | -40% | - | - |
| Adjusted EBITDA | $10.1 million | $10.2 million | -0.98% | - | - |
Interpretation
WM Technology reported a total revenue of $45.9 million, surpassing the consensus estimate of $43 million, reflecting the company's ability to manage operations despite industry challenges. However, net income declined by 40% year-over-year to $1.2 million, indicating some underlying issues yet to be overcome. The Adjusted EBITDA also showed a slight decrease, showcasing tight operational efficiency.
Segment Revenue Performance
| Revenue Segment | Q2 2024 | Prior Guidance | Comparison to Guidance |
|---|---|---|---|
| Net Revenues | $45.9 million | - | - |
Interpretation
The company did not provide specific prior guidance for segment revenue, making direct comparisons challenging. However, achieving a net revenue of $45.9 million indicates a robust performance, considering the marketplace's contractions and budget constraints faced by clients.
Operational Data
| Operational Data | Q2 2024 | Q2 2023 | YoY Change (%) |
|---|---|---|---|
| Average Monthly Paying Clients | 5,045 | 5,609 | -10.1% |
| Average Monthly Net Revenues Per Client | $3,033 | $2,878 | +5.4% |
Input from Company Officers
Doug Francis, Executive Chair, emphasized the company’s strengthened financial position and operational discipline, expressing optimism about ongoing initiatives and future opportunities. Interim CFO Susan Echard highlighted the streamlined operational processes and strong foundation, expressing confidence in the company's future potential.
Dividend and Share Repurchase Program
There were no announcements regarding dividends or share repurchase programs in the provided report.
Forward Guidance
For the third quarter of 2024, WM Technology estimates:
- Net revenues: approximately $44 million
- Non-GAAP Adjusted EBITDA: approximately $7 million
Stock Price Movement
Post-earnings, WM Technology's stock showed a slight decrease of -0.486%, indicating a relatively stable market reaction to the news.
WM Technology’s Q2 2024 financial results reflect a mix of resilience and challenges in the current cannabis industry climate. The company's ability to exceed revenue expectations despite external pressures is noteworthy, but the decline in net income and number of paying clients highlights areas needing further management focus and strategy refinement.
For more detailed information, visit Weedmaps Investor Relations .
About WM Technology
Founded in 2008, WM Technology operates Weedmaps, a premier destination for cannabis consumers, and offers a wide range of eCommerce and compliance software solutions for cannabis businesses. The company advocates for full U.S. legalization, industry-wide social equity, and continued education about cannabis.
For additional information, visit Weedmaps .
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