WM Technology Announces Q2 2023 Financial Results and Projects Q3 Performance

NEW YORK — WM Technology, Inc., a technology and software infrastructure provider for the cannabis industry, released its Q2 2023 financial results, showing certain key shifts in their business performance.

Doug Francis, Executive Chair of WM Technology, stated, “Our Q2 outcomes highlight the transformative changes we’ve made recently, emphasizing our drive toward a positive cash flow and Adjusted EBITDA.” Francis noted the company’s efforts in bolstering its financial position, aiming for sustained growth. “Our priority is to ensure Weedmaps remains the top platform for consumers to explore and purchase cannabis from our partnered retailers,” he added.

Financial Summary for Q2 2023:

• Revenue: Stood at $50.9 million, a decrease from Q2 2022’s $58.3 million.
• Client Metrics: The average monthly paying clients saw a slight increase to 5,609, up from 5,537 in the same quarter the previous year. However, the monthly revenue per paying client dropped to $3,022 from $3,509 year over year.
• Net Income: Profits amounted to $2.0 million, a marked difference from Q2 2022’s $19.8 million.
• Adjusted EBITDA: This increased to $10.2 million, compared to the prior year’s negative $0.6 million.
• Share Value: Both basic and diluted net income per share were $0.01, based on different counts of Class A Common Stock shares.
• Cash Reserves: As of June 30, 2023, the company had cash reserves of $24.6 million and was free of debt.

The above financial results included certain non-GAAP measures, which were reconciled to GAAP equivalents within the company’s disclosures.

Q3 2023 Business Forecast:

WM Technology anticipates revenue of around $47 million for Q3 2023, with a projected Non-GAAP Adjusted EBITDA of approximately $4 million. The company’s estimates hinge on assumptions and may be subject to significant change based on various business factors.

Change in Accounting Firm:

In an administrative update, as of June 8, 2023, WM Technology parted ways with Baker Tilly US, LLP, their previous accounting firm, due to the latter’s staffing constraints. The company has since aligned with Moss Adams LLP, effective post the Q2 2023 report, for their accounting needs for the fiscal year ending December 31, 2023.