WM Technology Reports Growing Profits and Cash Position in Q1 2024

WM Technology, (weedmaps) announced positive financial results for the first quarter of 2024 and full year 2023 in its latest SEC filings.

For Q1 2024, the company reported net income of $2.0 million, an increase of $5.9 million year-over-year. Adjusted EBITDA was $9.6 million, up $2.5 million from Q1 2023. Cash on hand grew to $35.7 million, a $9.8 million improvement.

The filings allowed WM Technology to become current on its SEC reporting obligations after delays caused by recent executive leadership changes and a review that identified an improper revenue recognition policy. However, the restatements had minimal overall impact.

"We are pleased the effects of our revenue review were relatively minor," stated Executive Chair Doug Francis. "Our client relationships and operational efficiency position us for continued profitable growth."

For full year 2023, WM Technology reported a net loss of $15.7 million on revenues of $188.0 million, down from $215.5 million in 2022. However, adjusted EBITDA improved significantly to $36.9 million compared to a loss of $9.6 million the prior year.

The company attributed the revenue decline to cannabis marketing budget constraints and industry consolidation impacting client count. However, average revenue per paying client increased, and cost discipline drove profitability improvements.

"Our streamlining efforts in 2023 supported year-over-year adjusted EBITDA and cash balance growth in Q1," commented interim CFO Susan Echard. "We look forward to resuming our quarterly reporting cadence."

For Q2 2024 guidance, WM Technology estimates revenue consistent with Q1 and adjusted EBITDA of approximately $7 million as it focuses on operational execution and capitalizing on cannabis market growth opportunities.

The filings reinstated WM Technology's compliance for Nasdaq listing as the company aims to build upon its profitable start to 2024 in the dynamic cannabis technology sector.