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.”
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