Leafly Holdings Inc. (NASDAQ:LFLY) Q2 2023 Results Conference Call August 10, 2023 4:30 PM ET Company Participants Josh deBerge - IR Yoko Miyashita - CEO Suresh Krishnaswamy - CFO Conference Call Participants Seamus Cassidy - TD Cowen Steven Hromin - Oppenheimer Operator Good afternoon, and thank you for attending today's Leafly Second Quarter 2023 Earnings Call. My name is Jason, and I'll be the moderator for today's call. All lines will be muted during the presentation portion of this call, and opportunit ...

Leafly Holdings, Inc. (NASDAQ:LFLY) Q1 2023 Earnings Conference Call May 11, 2023 6:00 PM ET Company Participants Keenan Zopf - Investor Relations, The Blueshirt Group Yoko Miyashita - Chief Executive Officer Suresh Krishnaswamy - Chief Financial Officer Conference Call Participants Operator Good morning. Thank you for attending today's Leafly First Quarter 2023 Earnings Call. [Operator Instructions] I'd now like to pass the conference over to your host Keenan Zopf, with The Blueshirt Group. You may procee ...

ROC UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Table of Contents FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39119 Leafly Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 84-2266022 ( St ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________ FORM 10-K _____________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number: 001-39119 ______________________ ...

Financial Data and Key Metrics Changes - Revenue in Q4 2022 was $12.1 million, essentially flat year-over-year, with retail revenue at $9.5 million, up 4% year-over-year, and brand revenue at $2.7 million, down 12% year-over-year [2][22] - Full year revenue grew 10% over 2021, driven primarily by retail revenue, which was $36.7 million, up 9.3% year-over-year [22] - Adjusted EBITDA loss for 2022 was negative $23 million, an improvement due to cost-cutting initiatives [24] Business Line Data and Key Metrics Changes - Retail ARPA in Q4 was $554, a decline of 7% year-over-year [3] - Revenue from brands declined 3% sequentially compared to Q3, with brands pulling back on advertising spend [4] - Ending retail accounts grew nearly 10% in 2022, with significant growth in Montana and New Mexico [22][73] Market Data and Key Metrics Changes - Continued softness in markets like Oklahoma and parts of Canada [3] - Cannabis prices are down, impacting retailers and brands using the company's services [28] - Market penetration reached 75% in New Mexico and Montana by the end of 2022, with ARPA increasing by over 50% in both markets [27] Company Strategy and Development Direction - The company is focusing on cost management and aligning its cost structure with the current industry environment, including a 21% reduction in workforce [5][9] - Emphasis on building deeper relationships with customers and increasing customer spend across the full suite of products and services [25] - Plans for 2023 include improving operational efficiency, preserving cash, and targeting resources towards high-value opportunities [70] Management's Comments on Operating Environment and Future Outlook - The company expects continued pressure on ARPA and muted growth in 2023 due to a weak macroeconomic environment [28] - Management is optimistic about consumer interest in cannabis remaining high, despite economic challenges [30] - The operational plan for 2023 aims for considerable improvement in adjusted EBITDA and a path to profitability [29] Other Important Information - The company has diversified its cash balances across several banking relationships to mitigate risk [48] - For Q1 2023, the company expects revenue of $11 million to $11.3 million and an adjusted EBITDA loss of negative $4.3 million to negative $4 million [49] Q&A Session Summary Question: What is the impact of weaker demand on advertising spending? - Management noted that brand advertising spend has seen greater softness, particularly in top-of-funnel spending, as brands pull back due to economic pressures [52] Question: How does the company plan to generate more retail demand? - The company aims to deepen relationships with retailers and show them ROI on the platform, focusing on consultative approaches to drive shopping behavior [56] Question: Is the lack of enforcement around illegal dispensaries impacting the business? - Management acknowledged that structural issues exist, with a significant number of unlicensed dispensaries affecting the market, emphasizing the need for regulatory action [58] Question: Can you provide insights on customer stickiness amid the tough macro environment? - Retail accounts are about 78% of total revenue, with over 80% being subscription-like revenue, indicating strong stickiness despite some churn in specific markets [62]

Financial Performance - Revenue for Q3 2022 was $11,781,000, an increase of 8.1% compared to $10,896,000 in Q3 2021[18] - Gross profit for Q3 2022 reached $10,266,000, up from $9,635,000 in Q3 2021, reflecting a gross margin improvement[18] - Operating expenses for Q3 2022 totaled $16,298,000, compared to $13,470,000 in Q3 2021, representing a 20.9% increase[18] - The net income for Q3 2022 was $15,454,000, a significant turnaround from a net loss of $4,454,000 in Q3 2021[18] - Basic net income per share for Q3 2022 was $0.43, compared to a loss of $0.18 per share in Q3 2021[18] - For the nine months ended September 30, 2022, Leafly reported a net income of $10,837,000, compared to a net loss of $6,880,000 for the same period in 2021[26] - Total revenue for the nine months ended September 30, 2022, was $35,251, an increase from $30,959 in the same period of 2021[120] - Total gross profit for the three months ended September 30, 2022, was $10,266, compared to $9,635 in the same period of 2021, reflecting a gross profit margin improvement[120] Assets and Liabilities - Total assets as of September 30, 2022, were $36,828,000, slightly up from $36,153,000 at the end of 2021[16] - Total current liabilities decreased to $8,503,000 from $44,725,000 at the end of 2021, indicating improved financial health[16] - The company reported an accumulated deficit of $58,933,000 as of September 30, 2022, down from $69,770,000 at the end of 2021[16] - Cash and cash equivalents were $27,829,000 as of September 30, 2022, compared to $28,565,000 at the end of 2021[16] Cash Flow and Expenses - Net cash used in operating activities was $25,130,000 for the nine months ended September 30, 2022, compared to $3,101,000 for the same period in 2021[26] - Cash, cash equivalents, and restricted cash at the end of the period was $28,436,000, down from $33,246,000 at the end of September 2021[26] - Stock-based compensation expense increased significantly to $3,159,000 in 2022 from $729,000 in 2021[26] - The company reported a significant increase in bad debt expense to $1,023,000 in 2022 from $841,000 in 2021[26] Mergers and Acquisitions - The merger with Merida on February 4, 2022, resulted in Leafly becoming a wholly-owned subsidiary of Merida, with a total of 42,924,000 shares outstanding post-merger[30] - Cash received from escrow from the merger amounted to $8,089,000 from February 4, 2022, to September 30, 2022[32] - Leafly's total payment to Merida public redeeming stockholders was $49,466,000 at the closing of the merger[32] Stock and Equity - The Company repurchased 3,081 shares of its common stock at a weighted-average price of $10.28 per share for a total of $31,663[80] - The Public Warrants allow holders to purchase one share of common stock at an exercise price of $11.50, with 6,501 warrants outstanding as of September 30, 2022[86] - The Private Warrants, totaling 3,950, are non-redeemable as long as held by initial purchasers and are exercisable for cash or on a cashless basis[90] - The Company has the option to redeem the 2022 Notes at a cash redemption price equal to 100% of the principal amount plus accrued interest[62] Employee Compensation and Stock Options - The 2021 Equity Incentive Plan reserved 4,502 shares for issuance, with automatic increases starting January 1, 2023, based on the lesser of 10% of fully diluted shares or 4,502 shares[98] - In August 2022, the company granted stock options for 101 shares at an exercise price of $1.98 per share and 1,228 restricted stock units[99] - As of September 30, 2022, there was $114 of unrecognized compensation cost related to stock options, expected to be recognized over 3.36 years[100] - The company recorded a charge of $1,366 for modified stock options granted to the CEO, reflecting changes in vesting provisions[108] Market and Compliance - The Company received notifications from Nasdaq regarding noncompliance with the $50 million market value requirement and the $1.00 minimum bid price requirement for continued listing[133] - The Company has until April 26, 2023, to regain compliance with the minimum bid price requirement, needing a market value of $50 million for 10 consecutive business days[135] Restructuring and Future Plans - The estimated cash pre-tax restructuring charges due to the Restructuring Plan are approximately $500,000, primarily in Q4 2022[132] - The Company plans to decrease total headcount by approximately 56 employees as part of the restructuring efforts[131]

Leafly Holdings, Inc. (NASDAQ:LFLY) Q3 2022 Earnings Conference Call November 10, 2022 4:30 PM ET Company Participants Keenan Zopf – Investor Relations, The Blueshirt Group Yoko Miyashita – Chief Executive Officer Suresh Krishnaswamy – Chief Financial Officer Conference Call Participants Harrison Vivas – Cowen Jason Helfstein – Oppenheimer Eric Des Lauriers – Craig-Hallum Operator Hello, and welcome to today’s Leafly Third Quarter 2022 Earnings Call. My name is Jordan, and I’ll be coordinating your call tod ...

| --- | --- | |--------------|-------| | | | | | | | | | | | | | | | | Q3 2022 | | | Earnings | | | Presentation | | | | | | | | | | | | | | | | | 2 Disclaimer Forward-Looking Statements This document contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the services offered by Leafly and the markets in which Leafly operates, business strategies, performance metrics, industry environment, potential growth opportunities, and Leafly's pro ...

Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $12 million, representing a 14% increase year-over-year and a 6% increase sequentially from Q1 2022 [6][31] - Total gross margin in Q2 was 88%, slightly down from 88.5% in Q2 2021 due to increased business platform expenses [37] - Total operating expenses were $19.5 million, an increase of 83.9% compared to $10.6 million in Q2 2021, primarily due to increased headcount and marketing costs [37][39] - Net income was reported at $14.8 million, benefiting from a $24.4 million change in the fair value of derivative liabilities [40] Business Line Data and Key Metrics Changes - Revenue from retail was $9.1 million, up 11.3% year-over-year, while revenue from brands was $3 million, up 22.2% year-over-year [31][32] - Retail ARPA (Average Revenue Per Account) in Q2 was $579, a 9.8% decline year-over-year, but showed slight improvement from the previous quarter [33] - Brand accounts grew by 6.4% over Q1, indicating a continued increase in the brand's subscriber and advertiser base [34] Market Data and Key Metrics Changes - The company reached 100% market penetration in New Jersey, with every dispensary having a menu on the Leafly platform [27] - In Arizona, ARPA increased by 25.9% quarter-over-quarter, showcasing strong market performance [34] - The company is experiencing higher churn rates in lower penetrated markets, such as Oklahoma, where marketplace dynamics have not developed sufficiently [54] Company Strategy and Development Direction - The overall strategy remains focused on maximizing efficiencies and prioritizing projects that yield the highest returns [9] - The company is implementing a hiring freeze and reducing operating expenses to navigate macroeconomic challenges [8][41] - Investments are being redirected to strengthen B2B integration and enhance the platform, while pausing additional product launches to focus on existing products [46] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic headwinds affecting advertising budgets and anticipates these factors will impact the second half of the year [7][8] - Despite current challenges, management remains bullish about the long-term prospects of the cannabis industry and believes in the company's growth potential [8][30] - The company expects revenue for the full year 2022 to be between $48 million and $51 million, reflecting a cautious outlook due to anticipated softening in ad spend [43][45] Other Important Information - The company ended the quarter with $35.4 million in cash and $31.9 million in restricted cash [42] - A new automated auction-based bidding tool for retailers has been rolled out in five states, leading to increased ad revenue in most of those markets [20][21] Q&A Session Summary Question: Can you discuss the churn levels and specific markets experiencing the greatest churn? - Management identified Oklahoma as a market with structural challenges leading to increased churn, particularly in lower ARPA markets [53][54] Question: What is the impact of the sales reorganization on new account additions? - The sales reorganization temporarily slowed down execution, impacting the rate of new account acquisitions, but there are signs of stabilization in Q3 [55][56] Question: What are the dynamics in Oklahoma regarding competitive marketplace conditions? - Management noted that Oklahoma has an oversaturation of licenses, which complicates the competitive dynamics and affects monetization [58][59] Question: Can you elaborate on the new retailer dashboard and its engagement? - The retailer dashboard is continuously evolving, and management emphasized the importance of driving adoption and usage among retailers to maximize benefits [68][72] Question: What are the expectations for ad spend in the current macroeconomic environment? - Management anticipates continued downward pressure on ad spend due to macroeconomic factors, particularly in discretionary spending [35][36]

Washington, D.C. 20549 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number: 001-39119 Leafly Holdings, Inc. (Exact name of registrant as specified in its charter) ___________________ ...