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.
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).