WM Technology Inc - Ordinary Shares (MAPS) 8 Aug 24 2024 Q2 Earnings call transcript

In a recent earnings call, WM Technology, Inc. provided an update on their performance for the second quarter of 2024, shedding light on their strategic initiatives and financial health. Executive Chair Douglas Francis and Interim CFO Susan Echard shared insights into the company's approach to the evolving cannabis industry, financial results, and future outlook.

Cannabis Industry and Regulation

The cannabis industry remains dynamic, with the recommendation of the DOJ, HHS, and DEA to reschedule cannabis as a Schedule III drug offering hope for industry growth. However, the potential outcome of this recommendation remains uncertain, leaving companies like WM Technology in a challenging position. The company has largely avoided the rapidly growing intoxicating hemp market due to its uncertain regulatory landscape. Despite this, they are prepared to navigate the market if necessary, focusing on consumer safety and industry regulation.

Financial Performance

WM Technology reported Q2 revenues of $45.9 million, with adjusted EBITDA of $10.1 million, marking a strong financial performance. The company's approach to focusing on what they can control and setting long-term goals has solidified their financial position and runway for future growth. The team's operational improvements and focus on collections have resulted in a positive cash flow, maintaining a debt-free status.

Future Outlook

Looking ahead, the company anticipates Q3 net revenues of approximately $44 million and adjusted EBITDA of approximately $7 million, reflecting seasonality and ongoing industry challenges. WM Technology is committed to supporting the cannabis industry through regulation and is actively working on new initiatives to drive growth in 2025.

Conclusion

The earnings call provided a comprehensive update on WM Technology's performance and strategic initiatives. The company's focus on financial discipline and industry navigation, combined with their commitment to consumer safety and regulation, positions them well for the future. As the cannabis industry continues to evolve, WM Technology's approach to growth and financial health will be crucial in navigating the challenges and opportunities ahead.