WM Technology, Inc. MAPS, a technology and software provider to the cannabis industry commonly known as Weedmaps, reported a significant improvement in its third-quarter 2024 financial performance. The company announced on Tuesday afternoon a 312% year-over-year surge in net income, reaching $5.3 million and a 31% rise in cash reserves from year-end, totaling $45 million.
Q3 2024 Financial Highlights
- Revenue was $46.6 million, up from $45.9 million in the previous quarter but slightly down from $46.7 million in the same period last year.
- Net income was $5.3 million, up from $1.2 million in the prior quarter, reversing a net loss of $2.5 million in the prior year period.
- Adjusted EBITDA was $11.3 million, compared to $10.1 million in the previous quarter and $10.7 million year-over-year.
- Gross profit was not disclosed in the press release.
Steady Revenue Growth Despite Product Changes
Net revenues stood at $46.6 million, a slight increase from $45.9 million in the prior quarter but marginally down from $46.7 million in the same period last year. This fluctuation was attributed to the sunset of certain products in late 2023, partially offset by growth in other products.
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The company also reported an average of 5,100 monthly paying clients, a modest increase from 5,045 in the prior quarter. Average monthly net revenue per paying client rose to $3,043, up from $2,874 in the same period last year.
Management Commentary
“Our third quarter results mark yet another consecutive period of strong financial performance and positive cash flow, underscoring the solid foundation our team has built,” Doug Francis, CEO of WM Technology said in a press release. He emphasized the company’s focused approach and strategic positioning for future growth.
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Achieving its eighth consecutive quarter of adjusted EBITDA profitability, the company reported $11.3 million in adjusted EBITDA, up from $10.1 million in the previous quarter and $10.7 million in the same period last year. “The fundamentals of our business continue to strengthen, as evidenced by our eighth consecutive quarter of Adjusted EBITDA profitability,” added CFO Susan Echard, highlighting the positive momentum heading into 2025.
Outlook For Q4 2024
WM Technology provided guidance for the fourth quarter of 2024, projecting net revenues of approximately $46 million and a non-GAAP adjusted EBITDA of around $7 million. The company expressed confidence in its strategic investments and debt-free balance sheet as it moves into the next fiscal year.
MAPS Price Action
MAPS’s shares were trading 2.59% lower at $0.716 per share when the market closed Tuesday.
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