In the latest earnings call, Leafly's leadership provided insights into the company's operational performance and strategic initiatives. Here are the key takeaways from the call.
Financial Performance
Leafly reported a second-quarter revenue of $8.7 million, which was in line with guidance. The company's net loss was $1.3 million, with adjusted EBITDA standing at $483,000. This positive EBITDA was attributed to the company's collection efforts, specifically the recovery of previously written-off customers' balances.
Operational Efficiency
Leafly remains committed to enhancing operational efficiency and has made significant strides towards profitability. Despite the revenue performance remaining muted, the company has demonstrated a focus on building a path to profitability.
Brands Business
Leafly revamped its brand subscription offering in the second quarter, introducing tiers to monetize the most engagement-driving features. This shift has led to a significant shift of GMV to subscribing brands, with early results showing promising results. The company also used this product launch to test its outbound lead generation efforts, which will be optimized in the coming quarters.
Market Expansion
Leafly is expanding its reach into new markets, including Ohio's recreational program and a partnership with Uber Eats in Alberta, Canada. These strategic moves are expected to create new revenue opportunities and strengthen the company's market position.
Financial Outlook
For the third quarter, Leafly expects revenue of around $8.4 million and an adjusted EBITDA loss of less than $1 million. The company is focused on stabilizing its account base and revenues through new sales efforts and product enhancements.
Regulatory Update
Leafly continues to work towards Nasdaq compliance and provided an update on the proposed plan of compliance. The company's stock remains listed and traded on the Nasdaq Capital Market, and updates on this matter will be shared as more information becomes available.
Investor and Shareholder Questions
Key questions from shareholders and investors included inquiries about the second half of the year, new account additions, and the status of the Nasdaq listing. Leafly's management provided detailed responses, highlighting the company's strategic initiatives and financial performance.
Overall, Leafly's earnings call underscored the company's commitment to operational efficiency and strategic expansion. Despite challenges, Leafly remains focused on its mission to help consumers discover the magic of cannabis and is optimistic about future growth opportunities.