WM Technology Inc. (Nasdaq: MAPS) posted a $10.5 million loss in the third quarter this year – a drastic downturn from a year ago. That news was accompanied by the departure of longtime CEO Chris Beals.
Revenues for the quarter held relatively steady at $50.5 million compared with $50.9 million for the previous-year period.
Co-founder and executive chairman Doug Francis will step back into the role of CEO, a post he held before Beals, while the company searches for a new chief executive. Beals is also resigning his seat on the company board of directors.
“While end-market conditions have been challenging, we can be executing at a higher level by getting more focused and streamlined,” Francis said in the release, also noting the company has “evolved significantly” since its founding 14 years ago.
“We have significant opportunities to expand our moats and build the future rails for the cannabis industry while working to get back to our operating culture of driving profitable growth and cash flow.”
The year has not been kind to Weedmaps.com, the dispensary finder website and primary revenue driver for parent company WM Technology.
Year to date, WM Technology lost $21.8 million, a stark contrast to the same period in 2021 when the company turned a $73.7 million profit, according to the Q3 earnings report.
Though the company’s user base is up – 5,576 paying clients for third quarter 2022 compared to 4,444 the same quarter last year – the average revenue per client is down to $3,019 for the quarter, contrasted with $3,817 per client in 2021.
WM Technology isn’t expecting a turnaround anytime soon, either, even with the leadership change.
“We expect … a year-over-year decline in the low double-digit percentage area for fourth quarter revenue,” the company stated in the release.
WM Technology’s stock price is also at its lowest level since it went public in June last year, trading at $1.83 per share at close on Monday.