WM Technology, Inc. (Nasdaq: MAPS) announced its financial results for the second quarter ending June 30, 2022. WeedMaps reported that its revenue increased 24% to $58.3 million over the second quarter of 2021. This slightly missed the Yahoo Finance average analyst estimate for revenues of $62 million. Net income was $19.8 million as compared to net income of $16.8 million from the prior year period.
The basic and diluted net income per share was $0.14 and $0.13 based on 86.4 million and 87.2 million Class A Common Stock weighted average shares outstanding, respectively. This bat the analyst estimate for earnings of ($0.05).
“Our second quarter results demonstrate how our strategy continues to drive growth for WM Technology as we grew our second quarter net revenue by 24% year-over-year to reach $58 million and increased Average Monthly Paying Clients to 5,537, both quarterly records,” said Chris Beals, CEO of WM Technology. “We believe these results again demonstrate how WM Technology is the enduring platform for the cannabis end-markets. And while the current macro environment, including challenges specific to the cannabis end-markets, did impact our results, our pace of innovation and continuing to deliver healthy returns to our clients resulted in us achieving growth that exceeded our end markets by a wide-margin. Clients continue to rely on our marketplace and WM Business solutions to help grow their own businesses. For that reason, 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.”
Weedmaps said that its monthly active users increased to 17.4 million on June 30, 2022, up 41% compared to the prior year’s period. The average monthly revenue per paying client decreased to $3,509, a 5% decrease compared to the prior year period. The average monthly paying clients increased to 5,537, a 31% increase compared to the prior year period. The company noted that it grew its average monthly paying clients by over 30% vs. last year, with many of these clients coming from regions where its licensee share is under 50%, demonstrating its ability to execute in newer markets.
Weedmaps was pretty honest when it came to the outlook, that company said it was planning for total revenue to be flat-to-down in the mid-single digit percent area on a year-over-year basis for the second half, which implies a low double-digit percentage growth rate for the full year 2022. “We expect to end the year with positive Adjusted EBITDA for the full year 2022,” said the company in a statement.
The company was clear to point out that the guidance provided is only an estimate of what it believes is realizable as of the date of this release. The company said that the guidance assumes that no business acquisitions, investments, restructurings, or legal settlements are concluded in the quarter.
“We continue to lean into the tremendous opportunity ahead of us and are focused on driving both near and long-term sustainable growth and profitability,” said Arden Lee, CFO of WM Technology. “In this environment, we also understand the need for prudent operational and investment decision making and we have taken steps to ensure these remain the case. We are as confident as ever in our business model and strategy.”