IRVINE, Calif. — WM Technology Inc., a leading marketplace and technology solutions provider to the cannabis industry, reported its financial results for the fourth quarter and year ending December 31, 2024.
“We are proud of our team’s efforts and operational focus in delivering another period of strong financial results to close out the year,” said Doug Francis, CEO. “Our operational discipline and ability to drive profitability have been key in navigating the unique challenges our industry faces, and we are now well-positioned to invest back in our people and technology. As we build for the future, we will continue to focus on the value of our marketplace and enhance the Weedmaps experience for both consumers and clients as we adapt in this evolving industry.”
Fourth Quarter 2024 Financial Highlights
- Revenue of $47.7 million increased from $46.6 million in the prior quarter and $46.5 million in the prior year period. The increase from the prior year period was driven by increases in our Deal Listing and Display Ad products.
- Average monthly paying clients of 5,225 increased from 5,100 in the prior quarter and 5,014 in the prior year period. The increase from the prior year period was due to new client acquisitions and client reactivations, partially offset by churn across our mature markets.
- Average monthly revenue per paying client of $3,041 was consistent with $3,043 in the prior quarter and decreased from $3,089 in the prior year period. The decrease from the prior year period was driven by ongoing constraints on our clients’ marketing budgets and their limited capacity for upsells.
- Net income decreased to $3.7 million from $5.3 million in the prior quarter and increased from net loss of $11.2 million in the prior year period.
- Adjusted EBITDA increased to $11.9 million from $11.3 million in the prior quarter and $8.9 million in the prior year period.
Fiscal Year 2024 Financial Highlights
- Revenue of $184.5 million decreased from $188.0 million in the prior year. The decrease from the prior year was impacted by our clients continuing to face constrained marketing budgets, the ongoing consolidation of our industry, specifically amongst our client base, and a loss in revenue from products that were sunset in December 2023, partially offset by an increase in revenues from our Weedmaps for Business, driven by favorable pricing changes.
- Average monthly paying clients of 5,077 decreased from 5,419 in the prior year. The decrease from the prior year was due to the decrease in client count related to the aforementioned sunset products, the removal of paying clients from our platform who have become delinquent, as well as client churn due to continued industry challenges, such as price deflation and ongoing consolidation.
- Average monthly revenue per paying client of $3,029 increased from $2,891 in the prior year. The increase from prior year was due to the aforementioned sunset products, which had lower average monthly spending clients.
- Net income increased to $12.2 million from net loss of $15.7 million in the prior year.
- Adjusted EBITDA increased to $42.9 million from $36.9 million in the prior year.
- Total shares outstanding across Class A and Class V Common Stock were 153.4 million as of December 31, 2024.
- Cash increased to $52.0 million as of December 31, 2024, as compared to $34.4 million as of December 31, 2023.
“We believe that our financial performance directly reflects our ability to manage costs in line with revenue performance to maintain our profitability,” said Susan Echard, CFO. “Through tighter collaboration across our teams and with our clients, we’ve been able to improve our accounts receivable and collections process, leading to recoveries of past-due accounts and strengthening the quality of our receivables. With a strong cash position and no financial debt, we remain focused on initiatives that provide the greatest impact to the company.”
About WM Technology
Founded in 2008, WM Technology operates Weedmaps, a leading cannabis marketplace for consumers, as well as a broad set of eCommerce and compliance software solutions for cannabis businesses and brands in U.S. state-legal markets. WM Technology holds a strong belief in the power of cannabis and the importance of enabling safe, legal access to consumers worldwide.
The Company is committed to advocating for full U.S. legalization, industry-wide social equity, and continued education about the plant through key partnerships and cannabis subject matter experts.
