Loading...
01/11 16:21
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary presents mixed signals. While there is modest revenue growth and positive cash generation, regulatory challenges and declining client spending pose risks. The Q2 guidance shows stability but lacks significant upside. Product development and client base growth are positive, but operational challenges and market pressures could offset gains. Without a strong catalyst or significant market cap details, the stock price is likely to remain stable in the near term.
Revenue $44.6 million, up $0.2 million or 1% year-over-year, driven by growth in standard listings ($0.4 million) and display advertising ($0.8 million), partially offset by a $1 million decline in revenue from featured and deal listings.
Average Monthly Paying Clients 5,179, up 5% year-over-year, driven by new client acquisitions in certain markets.
Average Monthly Revenue per Paying Client $2,871, down from $2,997 in the prior year, reflecting spend pullbacks in more mature markets due to pricing pressures and consolidation.
GAAP Operating Expenses $42 million, up $1.3 million or 3% year-over-year, driven by a $2.9 million increase in general and administrative expenses, partially offset by lower sales and marketing and product development expenses.
Net Income $2.5 million, up from $2 million in the prior year, primarily driven by mark to market adjustments on warrants and higher interest income.
Adjusted EBITDA $10.1 million, exceeding expectations, driven by slightly higher than expected revenue and lower than anticipated expenses.
Cash from Operations $1.3 million, with a cash balance of $53.3 million, marking the seventh consecutive quarter of cash growth.
Product Development: Significant progress in enhancing product catalog, taxonomy, and search capabilities, laying groundwork for next generation ad products and marketplace innovation.
Client Base Growth: Continued growth in client base, especially in underpenetrated markets, despite challenges in mature markets.
Revenue Performance: First quarter revenue was $44.6 million, a modest increase of 1% year-over-year, driven by growth in standard listings and display advertising.
Operational Efficiency: GAAP OpEx totaled $42 million, a 3% increase year-over-year, with a notable increase in G&A expenses due to non-recurring charges.
Cash Generation: Generated $1.3 million in cash from operations, marking the seventh consecutive quarter of cash growth.
Marketing Restructuring: Restructured marketing organization to reconnect with brand heritage, exemplified by successful 420 activations.
Long-term Positioning: Focused on building for the long term, staying close to customers, and operating with discipline amid industry challenges.
Regulatory Environment: The regulatory environment remains challenging due to over taxation and competition from unregulated hemp, with little progress on increased regulation of intoxicating hemp products.
Tariffs: New tariffs may increase clients' operating costs at a time when consumers are more price sensitive, leading to further compression of margins.
Market Forces: Decreasing retail prices in mature markets, coupled with lack of regulatory relief on operating costs, are reducing cash flow for clients, impacting their ability to purchase services.
Client Spending: Average monthly revenue per paying client declined due to persistent industry headwinds, including pricing pressures and consolidation affecting marketing budgets.
Operational Challenges: Despite growth in client base, the overall financial pressures limit discretionary spending across the industry, impacting revenue from featured and deal listings.
Technology and Product Development: Significant progress under new CTO focusing on data infrastructure, automation, machine learning, and AI.
Marketing Restructuring: Restructured marketing organization to reconnect with cannabis culture, highlighted by successful 420 activations.
Client Base Growth: Continued growth in client base, especially in underpenetrated markets.
Q2 Revenue Guidance: Expected revenues for Q2 2025 to be approximately $45 million.
Q2 Adjusted EBITDA Guidance: Estimated non-GAAP adjusted EBITDA for Q2 2025 is approximately $8 million.
Share Count: 154.4 million shares as of March 31, 2025.
Cash Balance: $53.3 million at the end of Q1 2025.
Cash from Operations: Generated $1.3 million in cash from operations.
The earnings call highlights revenue decline, price compression, and regulatory challenges, which are significant concerns. While the company maintains profitability and cash reserves, the negative trends in core markets and client churn overshadow the positives. The lack of clear guidance and the focus on long-term prospects at the expense of near-term revenue add to the uncertainty, suggesting a negative market reaction.
The earnings call summary presents mixed signals. While there is modest revenue growth and positive cash generation, regulatory challenges and declining client spending pose risks. The Q2 guidance shows stability but lacks significant upside. Product development and client base growth are positive, but operational challenges and market pressures could offset gains. Without a strong catalyst or significant market cap details, the stock price is likely to remain stable in the near term.
The earnings call presented mixed signals. Positive aspects include revenue and EBITDA exceeding guidance, sequential growth, and a share buyback program. However, the EPS miss, regulatory risks, and competitive pressures introduce uncertainties. The Q&A highlighted ongoing challenges in the cannabis industry and lack of clarity on regulatory strategies. These factors balance out, leading to a neutral sentiment.
The earnings call highlights mixed signals: a slight revenue decline for the full year, but improved Q4 performance and profitability. Regulatory and competitive pressures pose risks, but management's optimism and new product launches offer potential upside. The Q&A reveals some uncertainty, particularly around supply chain issues and product timelines. Overall, the sentiment remains neutral, with no major catalysts for a significant stock move in either direction.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
