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.”
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.”