Weedmaps Archives - Green Market Report

StaffMay 4, 2022
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The Daily Hit is a recap of the top cannabis business stories for May 4, 2022.

ON THE SITE

TOP FIVE CANNABIS FRANCHISES

It isn’t McDonald’s (NYSE: MCD), but cannabis franchising is a very real part of the industry. Using data from Cannabiz Media, Green Market Report took a look at the top franchising leaders in the overall market. We then drilled down into Canada and the U.S. to see who the leaders are in each country. Read more here

WEEDMAPS 

Stifel analysts had some sobering thoughts on the cannabis industry in the company’s recent first-quarter outlook report. The most positive comments went to Weedmaps (NASDAQ: MAPS) as the analysts wrote, “We believe WM Technology is currently the best positioned public cannabis company to capitalize on category growth, with the ability to lead growth with unmatched capital efficiency, with the shares continuing to undervalue our robust growth outlook.” Read more here.

GMR WOMEN’S LEADERSHIP AWARD WINNER: KIM RIVERS

On April, 28, 2022, Green Market Report held its first-ever Women’s Summit. During the event, the Women’s Leadership Awards were announced and presented to the winners. Over the next two weeks, we will highlight each of these winners and congratulate them on their contributions to the cannabis industry. Read more here

PSILOCYBIN FOR DYING PATIENTS

There are a number of law firms building a list of clients in the psychedelics industry, in part because there are more issues percolating within the legal system about a federally illegal substance, and more companies exploring developments in this space. Read more here

SMALL PHARMA TRIALS DMT

Small Pharma (OTC: DMTTF), a London-based neuropharmaceutical company focused on psychedelic-assisted therapies, made big news recently with the announcement of the first clinical trial in February 2021, using N, N-Dimethyltryptamine (DMT) to treat major depressive disorder. Read more here

IN OTHER NEWS

FDA WARNING ON DELTA 8

Today, the U.S. Food and Drug Administration issued warning letters to five companies for selling products labeled as containing delta-8 tetrahydrocannabinol (delta-8 THC) in ways that violate the Federal Food, Drug, and Cosmetic Act (FD&C Act). This action is the first time the FDA has issued warning letters for products containing delta-8 THC. Delta-8 THC has psychoactive and intoxicating effects and may be dangerous to consumers. The FDA has received reports of adverse events experienced by patients who have consumed these products. Read more here

GREENTHUMB INDUSTRIES, INC. 

Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE dispensaries, today reported its financial results for the first quarter ended March 31, 2022. Financial results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and all currency is in U.S. dollars. Revenue increased 25% year-over-year to $243 million, flat compared to the fourth quarter of 2021. Read more here

SUGARMADE, CANNABIS GLOBAL, INC.

Sugarmade, Inc. (OTC Pink: SGMD) announces its first transaction relative to its collaborative cannabis cultivation strategy via a definitive and executed contract with Cannabis Global, Inc. (OTC Pink: CBGL). Under the terms of the agreement, Sugarmade, via partner licensed and permitted Lake County, California, cannabis cultivators, will produce approximately 25,000 pounds of “Fresh Frozen” cannabis, which Cannabis Global, Inc. will use in its product lines and will distribute to the California marketplace. Read more here

LUCID GREEN, CANNASAFE, CANNALYSIS, LABLYNX

Lucid Green, a UPC platform today announced three new partnerships with cannabis testing labs and lab information systems (LIMS) to expand full digitization of COAs in the cannabis supply chain. The new partnerships with CannaSafe, Cannalysis, and LabLynx build on Lucid Green’s existing partnerships with Confident Cannabis and Sonoma Lab Works. Through these new lab and LIMS partnerships, Lucid Green is connected to more than 400 individual labs in the U.S. Read more here

INDUSTRIAL HEMP MARKET 

The global industrial hemp market was found to be valued at $4,452.0 million in 2021, which is projected to reach a huge $60,682.8 million by 2030, increasing at a massive CAGR of 33.7% from 2021 to 2030. The growing need for hemp in several industries and the rising legalization of the cultivation of cannabis for industrial uses are some major drivers for the market. Hemp is now used in a variety of products, such as organic body care products, clothing, health foods, and biofuels. Read more here

ITEM 9 LAB CORP. 

Item 9 Labs Corp. (OTCQX: INLB) — a vertically integrated cannabis dispensary franchisor and operator that produces premium products — announced the accelerated growth of its dispensary franchise model, Unity Rd. across the U.S. with successful expansion into multiple new markets over the past two months. Currently, the Company has two dispensaries open in Colorado and Oklahoma with development across another 10 states, driven by more than 20 entrepreneurial groups. Read more here

 

 


StaffMay 4, 2022
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WM Technology, Inc. (Nasdaq: MAPS) announced its financial results for the first quarter ended March 31, 2022, with revenue increasing to $57.5 million, up 40% from the first quarter of 2021. This beat the Yahoo Finance estimate for revenues of $55.25 million.

The net loss was $(31.2) million as compared to a net income of $7.7 million from the prior-year period. The basic and diluted net loss per share was $(0.19) based on 72.5 million Class A Common Stock weighted average shares outstanding. This missed the Yahoo Finance average analyst estimate for ($0.04) per share.

Weedmaps added over 250 Average Monthly Paying clients in the quarter including in new states like Montana, which opened for recreational sales in January.

“Our first quarter results demonstrate how we’re playing offense and continuing to drive outsized growth as well as creating distance from the pack as the leading cannabis technology provider and commerce-driven marketplace. We grew our revenue 40% year-over-year to reach $57.5 million for the quarter, which was above the top end of our guidance, as we continued to grow our user and client base,” said Chris Beals, CEO of WM Technology. “We continue to deliver what we believe is outsized value to our clients and this allows us to grow faster than our end markets as businesses rely on our marketplace and solutions to grow their own businesses. At the same time, we are accelerating the pace of new features and integrations throughout our WM Business software platform. We are driving innovation in ways that will be more visible over the course of this year as we invest in large opportunities designed to accelerate growth. Our team remains hard at work and focused on executing against driving deep client engagement, establishing Weedmaps as the center of commerce for Cannabis consumers and expanding the adoption of our products.”

Outlook

Based on current business trends and conditions, Weedmaps is giving guidance for the second quarter ending June 30, 2022. Revenue is estimated to be between $60 million and $63 million, which represents 28-34% growth over the second quarter of 2021. “We continue to expect our Adj. EBITDA margins for the First Half will be breakeven to slightly positive as we front-load previously discussed investments against growth opportunities for the back half of this year and FY23 strategic opportunities.”


Debra BorchardtMay 4, 2022
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Stifel analysts had some sobering thoughts on the cannabis industry in the company’s recent first-quarter outlook report. The most positive comments went to Weedmaps as the analysts wrote, “We believe WM Technology is currently the best positioned public cannabis company to capitalize on category growth, with the ability to lead growth with unmatched capital efficiency, with the shares continuing to undervalue our robust growth outlook.”

The analysts said that their long-term outlook remained robust, but the near-term challenges are significant: decelerating category growth, oversupply, outsized pressure on lower-income consumer spending, rising input cost inflation, and increased capital costs. The average cannabis stock is down 34.5% year-to-date versus the S&P 500 which is -13%. 

Silver Linings

On a positive note, Stifel wrote, “We estimate the 1Q22 North American regulated cannabis sales grew 10%. We estimate Cronos Group and WM Technology’s 1Q22 revenue growth will dramatically outperform the category (+86%, 35% respectfully).” Even though the analysts tweaked their estimates for 2022 U.S. state-licensed sales, they still believe it will grow to $27.2 billion, +13% year-over-year, down from the previous $28.6 billion estimates. The year is also off to a good start as they believe first-quarter U.S. state-licensed cannabis sales grew +8% with key Western markets declining in 1Q22. 

Weedmaps

Analyst W. Andrew carter is keeping his Buy rating on WM Technology, Inc. (NASDAQ: MAPS), but is cutting his price target to $10 per share. The analysts wrote, “Our outlook suggests WM Technology will showcase a differentiated growth profile profitably capitalizing on cannabis category growth while utilizing its significant capital advantage to expand the platform’s reach and evolve its comprehensive SaaS offering for cannabis operators. We estimate 28% CAGR revenue growth (FY21-FY23E) predicated on increasing penetration, growing wallet share, and participating in the growth of six key U.S. markets we estimate will grow to over $13 billion in 2023.” The actual numbers could be even better because the analysts don’t include a significant contribution from the Canadian adult-use market or new adult-use markets like New York and Connecticut. “We believe our outlook will prove conservative given the resources for advertising, product development, and M&A. We believe the current U.S. environment provides WM Technology the ability to enhance its platform and deepen its moat without competition from well-resourced technology companies, thereby enhancing the ability to capitalize on our $100 billion U.S. state licensed category estimate.”

Hydroponics Dry Up

The hydroponics business that showed so much promise has dried up for the time being. The analysts reduced their outlooks for both ScottsMiracle-Gro and Hydrofarm. “Our outlook now includes a deeper and longer hydroponics category recession with the category not resuming growth until 4Q22.” However, the two stocks still have buy ratings but lowered price targets. 

 

Scotts

The Scotts Miracle-Gro Company (SMG) now has a price target of $130 per share and was lately selling at $105. They wrote, “We believe the long-term earnings growth profile is dramatically undervalued. We believe this earnings growth will come into focus following F2Q22 earnings with our outlook suggesting 11% CAGR from the F2Q22 trough through FY24.”  On a positive note, Stifel said that the Hawthorne business is undervalued within the current structure with capital allocation increasingly inefficient and likely crowding out investors. “But we believe the company will be unable to execute a separation potentially unlocking value even as hydroponics category conditions improve given the investment behind RIV Capital (RIV-CNQ). We believe the investment behind RIV Capital is a mistake and will require additional commitments from ScottsMiracle-Gro. We believe a standalone Hawthorne would be unable to support continued investments. We believe RIV Capital’s anchor investment Etain was expensive, and we view the strategy outlined by RIV Capital as undifferentiated with the investment potentially driving concern/scrutiny from Hawthorne customers.”

Hydrofarm

Hydrofarm Holdings Group Inc. (HYFM) now has a price target of $13 per share, but was lately selling at $9.56. “We believe that Hydrofarm is between a rock and hard place in the current environment with the category leader actively touting increased promotion and hydroponics category conditions deteriorating. But Hydrofarm is not at the mercy of the current environment, and we believe Hydrofarm is positioned to emerge stronger for a reacceleration in category growth as supply normalizes while new state cannabis systems present more fulsome hydroponics category growth opportunities.”  Having said that the analysts think that the significant underperformance has pushed the shares to a level undervaluing the profit growth relative to peers in similar verticals. “We believe our outlook will prove conservative with enthusiasm likely to build for the platform’s earnings power as well as the ability to profitably capitalize on cannabis category growth.”

Bad Buzz

Stifel was pretty downbeat on Canopy Growth Corporation (WEED.CN). The analysts have a Sell rating on the company and a target price of C$6 per share. It was recently trading at C$7.82.  The report wrote, “Even with additional cost savings, our outlook underscores the growing risk with Canopy not able to satisfy its C$600 million convertible debt maturity in cash while maintaining its minimum liquidity requirement. We expect additional actions to complement the recent cost savings initiatives, but we believe there are no actions Canopy can take to drive the equity price higher with the core issue, the need to reaccelerate revenue growth, increasingly difficult. When Constellation invested C$5 billion into Canopy Growth, the platform enjoyed an unmatched capital advantage for capitalizing on cannabis sector growth; through mismanagement and poor stewardship, in our view, by Constellation Brands, Canopy Growth is now at the mercy of a difficult environment with non-Constellation investors bearing outsized risk.”

The other sell rating is reserved for Aurora Cannabis Inc. (ACB) with a lowered target price of C$3.00. “Our outlook suggests Aurora will not return to y/y revenue growth until 2H23. While our outlook for profitability conforms to the company’s guidance, the outlook is uninspiring with our estimates suggesting just C$10 million in FY24 EBITDA implying an EV/FY24E EBITDA multiple of over 80x. The company cash needs are manageable but ongoing, and the company has $329 million of convertible debt due in February 2024 that we believe the company will have to manage the balance sheet through additional equity issuances yielding additional dilution.”

In Closing

While some of the Stifel report is pretty downbeat, it really just seems like a reality check. Companies with mountains of debt coming due is certainly worth commenting on and if those companies don’t have growing revenue, then that’s a problem. The industry itself continues to grow which is why the analysts said the long-term outlook is good. It’s these near-term hurdles that some companies will be unable to jump.


Andrew WardApril 4, 2022
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It’s a well-accepted anecdotal fact that cannabis and music go together. From the jazz clubs to the headbangers ball to underground hip hop shows and beyond, where there’s music playing, pot’s often being consumed. 

That long-lasting bond has recently come in handy for brands looking to connect with legal consumers. Federal regulations prohibit cannabis from online ads, forcing marketers and brands to ramp up creativity. In recent years, cannabis brands have become increasingly present at music festivals and concerts through sponsorships, activations and other consumer-facing endeavors.

“When executed correctly and compliantly, live event marketing collaborations can absolutely drive sales and brand awareness, as well as form lasting consumer relationships and promote brand loyalty,” said Andreas Neumann, Jushi Holdings Inc (OTCMKTS: JUSHF) (CNSX: JUSH) chief creative director and 2020 Grammy award winner for Best Album Package. 

While short on data, cannabis leaders say they’ve witnessed the potential in live events marketing and partnerships with cannabis-friendly artists. 

Live Event Marketing Grows In Cannabis

Like cannabis and its various medical claims, most seem to accept anecdotal feedback regarding the return on investment (ROI) for live event sponsorships. While additional findings would conclude the debate, most already agree on its efficacy.

“While legal cannabis is still a relatively young industry, the effectiveness of event marketing has been proven over and over in many other industries, including CPG,” said Glass House Brands Inc (OTCMKTS: GLASF) President Graham Farrar.

The uptick in cannabis at events has been noticeable, particularly in states with legalized adult-use and/or relaxed public consumption laws. 

“While we have more regulations to contend with, it doesn’t change the value that live events can bring,” said Farrar. 

Additional regulations, like bans on sales and onsite consumption, can prove detrimental, but brands have not let them thwart live music marketing endeavors. 

Associating With Live Acts Reportedly Pays Off

As cannabis becomes more widely accepted, its presence grows at significant live events. So much so that the plant is sometimes front and center. 

In October 2021, Eaze’s Grass Lands served as the hub for all things cannabis during the three-day Outside Lands Festival. Grass Lands came complete with its own stage and a three-day live music and comedy lineup. Event partners included Cookies, PAX, and Autumn Brands.

In January 2022, Veritas Fine Cannabis sponsored the 10th anniversary of the Winter on the Rocks concert held at Denver’s Red Rocks Amphitheater. Diplo and Talib Kweli headlined the event. Veritas’ featured onsite activations to improve the concert experience, including free shuttle rides and live paintings by artist Morgan Mandala.

“Live event marketing enables us to position ourselves in front of a new audience, as these events bring people from various backgrounds together,” said Veritas Marketing Director Jordan Plunkett. 

The company also offered dispensary workers exclusive perks, including a performance by funk band Lettuce, catered meals, and early access to new products. 

Taylor Saralli, the company’s presentation manager, noted that Veritas engages in various live events each year, including activations with electronic artist Pretty Lights and art exhibits from Meow Wolf. 

Saralli, who considers live music one of the company’s most effective marketing tools, added, “Live events allow us to interact with, celebrate and create genuine relationships with our consumers and the budtenders who sell our products.”

Plunkett noted positive results from the Red Rocks event, including over 5,000 new consumer signups, 5,700 unique website visits, approximately 12% increase in social media engagement and roughly 300 new social media followers.

Others are reporting the benefits of live events. Juanjo Feijoo, COO & CMO for WM Technology Inc (NASDAQ: MAPS), didn’t offer financial figures but noted that activation partners had seen increased numbers from live event activations.

He noted that a 2021 live event collaboration at the multi-day Aftershock Festival with Sacramento-based dispensary and delivery service KOLAS paid off immensely. Their endeavor, the Loud Lounge, allowed guests to kick back while waiting for delivery orders. 

Feijoo said sales boomed for KOLAS, resulting in “The equivalent of two or three weekends of orders for them.” He attributed the success to finding consumers in one collective event.

Thinking Beyond The Show

Opportunities exist beyond the venue, offering brands and performers ample opportunity to collaborate. 

One example includes the September 2021 partnership between Denver’s Seed & Smith and electronic artists Big Gigantic. The company featured strains chosen by the band as part of the release of the company’s DART pod system. The company reported seeing a worthwhile ROI from the deal.

“Having that name attached to the DART certainly influenced some purchasing,” said Robbie Wroblewski, director of community outreach for Seed & Smith. The company did not provide financial data to support its report.

 


Debra BorchardtFebruary 23, 2022
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WM Technology, Inc. (Nasdaq: MAPS) announced its financial results for the fourth quarter ending December 31, 2021. Total revenue increased to $54.2 million, up 22% from the fourth quarter of 2020 or 39% in the U.S. (when adjusting the prior fourth quarter to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were subsequently removed from the Weedmaps marketplace). This beat the Yahoo Finance average estimate for sales of $51 million and was higher than the third quarter’s sales of $50 million.

The net income was $78.4 million versus $10.1 million from the prior-year period. However, the total operating expenses were $59  million so the quarter was still operating at a loss. The company benefited from a change in the fair value of a warrant liability to the tune of $82 million.

For the full year, total revenue increased to $193.1 million, up 19% from the prior year or 48% in the U.S. (when adjusting the prior year to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were subsequently removed from the Weedmaps marketplace). Net income was $152.2 million as compared to $38.8 million from the prior year.The basic and diluted net income per share was $0.53 based on 66.0 million and 66.3 million of Class A Common Stock weighted average shares outstanding, respectively. This also beat analyst estimates, which was for $0.04.

“Our fourth quarter performance was the largest quarterly revenue in our Company’s history at $54 million, which represents a 39% year-over-year growth in our U.S. business. Further, we added over 300 new paying clients during the fourth quarter and expanded our share of licensees in the U.S.,” said Chris Beals, CEO and Chairman of WM Technology. “We believe our growth in the current environment underscores the value we continue to deliver to our clients and is evidence of how they fundamentally understand the importance of Weedmaps to grow their businesses. I’m excited by the opportunities ahead of us in 2022. We will continue to drive deep client engagement, establish Weedmaps as the center of commerce for cannabis consumers and expand adoption of WM Business as we look to attack new markets. Finally, I’d like to thank all of the team members at WM Technology for their collective contribution to our growth.”

2022 Outlook

The outlook for the fiscal year ending December 31, 2022, is expected to be as follows:

  • Full year Revenue is estimated to be between $255 million and $265 million, which represents 32-37% growth, with first-quarter revenue between $54 million and $56 million, which represents 31-36% growth
  • Full year Adjusted EBITDA is estimated to be between $15 million and $20 million and includes the impact of approximately $30 million in planned investments related to initiatives for growth in fiscal year 2023 and beyond. Adjusted EBITDA margins for the first quarter are expected to be breakeven

StaffDecember 3, 2021
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WM Technology, Inc. (Nasdaq: MAPS) filed a Form S-1 with the Securities and Exchange Commission on December 2, 2021 to register for resale shares of Class A common stock of the company previously issued as partial consideration for previously announced acquisitions that occurred in the fiscal third quarter of 2021. Weedmaps said it would not receive any proceeds from the sales of the shares.

In the third quarter Weedmaps bought MembersRSVP, LLC and Text Ripple, Inc. collectively known as “Sprout” and the equity interests of Transport Logistics Holding Company also known as Merry Go Jane (“Cannveya and Canncurrent”). As part of the deal, Weedmaps issued a total of 1,938,798 shares of Class A common stock to certain stakeholders of the counterparties to such transactions.

Back in June, Weedmaps combined with the SPAC Silver Spike Acquisition Corp. and became known as WMH and Silver Spike changed its name to WM Technology, Inc.

As a result of the Business Combination, holders of units of WMH will be able to exchange such Units, together with corresponding shares of Class V common stock of the company, for Class A common stock of the Company during Quarterly Exchange Notice Periods, the first of which begins on the third business day after the Company announces its Q4 FY21 earnings. The company though has not released a date for that announcement. After any such exchange, such holders would be able to sell their shares of Class A Common Stock.


Julie AitchesonNovember 16, 2021
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This week Weedmaps (NASDAQ: MAPS) releases “Cannabis in America”, a first-of-its-kind data and insights report on the cannabis marketplace, industry trends, and cultural revelations. This report represents a major step forward in Weedmaps’ intention to become an essential resource of direct-from-consumer data for policy makers, business owners, and investors. The report highlights topics such as the impacts of the Coronavirus pandemic and social justice movement on the cannabis industry as well as a strong trend of cannabis category experimentation, among other topics. The report also highlights the continuing trend of legalization across the country and a corresponding market growth that shows no signs of slowing down.  

Millenial Consumption Increased 57%

“Cannabis in America” shows that cannabis consumers are using and ordering more cannabis than ever before, with more than half increasing their consumption since the start of the pandemic. Generation Z was a particular stand-out demographic, increasing their consumption 125% year-over-year with overall cannabis deliver increasing by 97%. Millennials increased their consumption of cannabis by 57% since the start of the pandemic, placing them just one percentage point behind Gen Zers in increased consumption since the WHO declared Coronavirus a pandemic in March 2020, with Generation X not far behind at 52%. But it’s not only who is consuming cannabis that is significant, but what is being consumed. Weedmaps’ data point to a belief among 47% of cannabis consumers that edibles are becoming more popular, with Vape pends and Topicals not far behind. Millennials appear to be driving demand for products across all categories with a slight preference for concentrates. 

As stigma around cannabis use continues to decrease, it is gaining a foothold in the daily lives of more and more Americans as well as the culture at large. According to the report, 72% of cannabis consumers say that everyone or almost everyone they know uses cannabis while more than half of cannabis non-consumers say they don’t mind members of their social circles using it. More than a quarter of those surveyed claim they would use cannabis in a workplace setting and a full 31% would use cannabis in a multigenerational social setting. 

The Weedmaps report does reveal a need for credible, consistent cannabis education as more than half of consumers get cannabis information from friends and family and 17% get cannabis information from celebrities or use cannabis or have cannabis businesses. While this helps reduce stigma and drive popularity, it does not always result in accurate, safe information about consumption. The need for education is reflected in another area of the study, which looks at a lack of understanding on behalf of non-consumers of how cannabis can impact their local communities. 39% say they are not sure how cannabis legalization laws may affect them personally while 61% say they are not sure what will happen once cannabis is legalized in their state.

Brand Loyalty

A strong trend of consumer brand loyalty may be accelerating growth, with more than 54% of consumers declaring loyalty to a favorite brand, nearly half of all consumers always buying branded products, and half of consumers believing that branded products offer the best results. 48% of consumers overall say they are creatures of habit and prefer to stick to what they are currently using, with a full 60% of baby boomers topping the list of those disinclined to experiment with new products or brands.

But it’s not just about the brand. The fight for social equity is a major concern for consumers, who are demanding that businesses address socioeconomic disparities within the cannabis industry. More than half of those surveyed believe that everyone should have access to opportunities in cannabis with an equal amount expressing the belief that increased equity stands to benefit everyone. Almost half expressed a desire to support women-owned cannabis businesses while nearly as many feel the same about minority-owned businesses. More than a third declared a desire to patronize LGBTQ+-owned businesses and 44% of consumers want to shop at veteran-owned businesses, reflecting an overall trend towards diversification. Weedmaps’ report does show a disconnect, however, between what people are saying they want and what they are willing to support, with only 27% stating support for social equity programs. With 2021 nearly in the rearview mirror and the uncertainties of 2022 looming ahead, analyses such as this that highlight the complexities and contradictions of consumer behavior play a key role in learning for the past and preparing for the future.

 


StaffNovember 11, 2021
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WM Technology, Inc. (Nasdaq: MAPS) announced its financial results for the third quarter ended September 30, 2021. Revenue for WeedMaps increased to $50.9 million, up 9% from the third quarter of 2020 or 46% in the U.S. (when adjusting the prior third quarter to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were subsequently removed from the Weedmaps marketplace). Net income was $49.2 million as compared to $15.5 million from the prior year period.

The adjusted EBITDA was $10.4 million as compared to $16.5 million from the prior year period. Basic net income per share was $0.32 based on 64.2 million of Class A Common Stock weighted average shares outstanding. Diluted net income per share was $0.02 based on 68.3 million Class A Common Stock weighted average diluted shares outstanding.

“Our third quarter results reflect the momentum we are seeing as we focus on executing and investing against our growth opportunities. We achieved revenue growth in the U.S. of 46% year-over-year, maintained healthy EBITDA profitability and also had double-digit year-over-year growth across a number of our key metrics. Our ability to outpace our end-market growth is especially notable given the challenges many of our clients faced given what we believe is accelerating consumer demand shifts to non-licensed channels,” said Chris Beals, CEO and Chairman of WM Technology. “Additionally, we continue to accelerate investment in both organic and inorganic growth in our platform during the third quarter as we look towards 2022. In addition to the acquisition of Sprout announced in mid-September, we also acquired the parent company to Cannveya and CannCurrent. These acquisitions complement the suite of integrated solutions we provide through our WM Business offering that help both large and small clients. We are very excited to welcome each of these teams and technology to the WM Technology family and are more excited than ever at the near and long-term opportunity for WM Technology.”

The company also forecast that revenue is estimated to be between $50 million and $52 million in the fourth quarter and adjusted EBITDA is estimated to be between $3 million and $5 million.

Users Grow

Monthly active users increased to 13.9 million on September 30, 2021, or 37% compared to the prior-year period (or 28% when adjusting the current period to exclude the MAUs attributed to the Learn section of weedmaps.com that we were not able to track during the prior period). Average monthly revenue per paying client increased to $3,817 or 7% compared to the prior-year period (or 18% when excluding revenue from Canada-based retail operators who failed to provide valid license information from the prior year period). Average monthly paying clients(1)(4) increased to 4,444 or 2% compared to the prior year period (or increased 24% when excluding Canada-based retail operators who failed to provide valid license information from the prior-year period).

 

 


Debra BorchardtSeptember 14, 2021
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WM Technology, Inc., better known as Weedmaps  (Nasdaq: MAPS) is buying Sprout, a leading, cloud-based CRM & marketing platform for the cannabis industry. Weedmaps did not disclose the valuation of the deal. Sprout is a cannabis CRM and marketing software platform used by dispensaries and cannabis brands across the United States, Canada, and Puerto Rico. Sprout’s cannabis CRM platform includes an entire suite of omnichannel marketing solutions including customer relationship management, text & email marketing, loyalty, mobile wallets, QR codes, mobile surveys, mobile coupons, advanced customer segmenting, and analytics.

“Our strategy focuses on establishing WM Business as the software solution of choice for cannabis businesses. With the addition of Sprout, we are one step closer to realizing this vision of providing an all-in-one seamless and integrated solution to run, manage, and grow one’s cannabis business,” said Chris Beals, CEO and Chairman of WM Technology, Inc. “This acquisition will allow our clients to better target, reach, acquire and retain customers at scale. I also want to welcome Jaret Christopher, Sprout’s exceptionally talented Founder and CEO, and everyone at Sprout to our team.”

WM Technology says its acquisition of Sprout reinforces the company’s end-to-end operating system as one of the most comprehensive software solutions available in the cannabis market today. WM Technology’s acquisition of Sprout will strengthen the company’s position between retailers and consumers in the legal cannabis industry.

“We’re incredibly excited to join WM Technology. We look forward to leveraging the breadth and scale of users, retailers and brands on the Weedmaps marketplace to accelerate the reach of Sprout as part of WM Business,” said Jaret Christopher, Founder and CEO of Sprout.

Sports Deal

Last month, Weedmaps announced a multi-year agreement with Kevin Durant and Thirty Five Ventures as well as a sponsorship deal with Boardroom. Weedmaps will become an official sponsor of Thirty Five Ventures’ sports business media network, Boardroom, as part of the agreement. In addition to its sponsorship agreement, Boardroom will collaborate with Weedmaps to produce an original content series, which is tentatively slated for debut in 2022. The multi-year agreement also comprises ongoing integrations with Boardroom, including: Out of Office podcast, development and distribution of original content, co-branded collaborations and events, exclusive merchandise, and more.

“As the largest technology provider in the sector, we are serious about our responsibility to lead the national discussion around cannabis and the need for cannabis regulations to be updated across the board,” said Chris Beals, Chief Executive Officer of Weedmaps. “This partnership with Kevin Durant, Rich Kleiman, and the team at Thirty Five Ventures is a pivotal step forward in our ongoing efforts to break down stigmas surrounding cannabis, especially in the sports industry.”


StaffAugust 12, 2021
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WM Technology, Inc.  (Nasdaq: MAPS) announced its financial results for the second quarter ending June 30, 2021. Revenue increased to $46.9 million, up 21% from the second quarter of 2020 or 55% when adjusting the prior second quarter to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were subsequently removed from Weedmaps marketplace.

WeedMaps reported a net income of $16.8 million versus $9.4 million from the prior-year period. Adjusted EBITDA was $8.5 million as compared to $10.4 million from the prior year period. Basic net income per share was $0.07 based on 63.7 million of Class A Common Stock weighted average shares outstanding. Diluted net loss per share was $(0.17) based on 71.3 million Class A Common Stock weighted average diluted shares outstanding. Cash totaled $91.7 million as of June 30, 2021.

“Our second-quarter results and momentum are evidence of the opportunities we have across our end-markets. We saw strong growth in both users accessing the Weedmaps marketplace, and clients leveraging our WM Business software offering within our U.S. end-markets. The growth in client monetization we are driving versus a year ago is evidence of WM Technology’s value proposition to our clients as they seek to grow their businesses compliantly and access hard-to-reach users. We have also seen positive developments with the pace of license issuance within our existing end-markets and the pace of new states passing regulations for adult-use,” said Chris Beals, CEO, and Chairman of WM Technology. “While we are proud of these results, we remain focused on executing against our plans to establish the Weedmaps marketplace as the center of commerce for cannabis consumers and WM Business as the software solution of choice for cannabis businesses.”

Users Increase

Weedmaps said that monthly active users (“MAUs”) increased to 12.3 million at the end of June or 75% compared to the prior-year period (or 56% when adjusting the current period to exclude the MAUs attributed to the Learn section of weedmaps.com that we were not able to track during the prior period). Average monthly revenue per paying client increased to $3,706 or 24% compared to the prior-year period (or 21% when excluding revenue from Canada-based retail operators who failed to provide valid license information from the prior-year period). Average monthly paying clients decreased to 4,221 or (2)% compared to the prior-year period (or increased 28% when excluding Canada-based retail operators who failed to provide valid license information from the prior-year period).

Arden Lee, WM Technology’s CFO, added, “Our $47 million in second quarter revenue represents a 55% increase over the second quarter of last year, when adjusting the second quarter of last year to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were removed from the Weedmaps marketplace during the second half of 2020. Our results reflect double-digit year-over-year increases in both Average Monthly Revenue per Paying Client and Average Monthly Paying Clients using WM Business within our U.S. end-markets. We are investing heavily on multiple product-driven growth opportunities and new market openings for 2022 and beyond, while capitalizing on solid operating momentum across our existing end-markets. We continue to expect total revenue and adjusted EBITDA of $205 million and $50 million for 2021, consistent with our prior guidance.”


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