WM Technology(US:MAPS)2025-05-08 20:41Financial Performance - Revenues for the first quarter of 2025 were $44.6 million, a slight increase from $44.4 million in the prior year[182] - Net income rose to $2.5 million compared to $2.0 million in the same period last year[191] - Adjusted EBITDA for the first quarter of 2025 was $10.1 million, up from $9.6 million in the prior year[182] - Revenues for the three months ended March 31, 2025, were $44,612,000, a 1% increase from $44,389,000 in the same period in 2024[223] - Net income for the three months ended March 31, 2025, was $2,494,000, a 27% increase from $1,959,000 in the same period in 2024[223] Client Metrics - Average monthly paying clients increased by 5% to 5,179 from 4,937 in the same period in 2024[188] - Average monthly revenues per paying client decreased to $2,871 from $2,997 in the prior year[182] Revenue Sources - Revenues from Weedmaps for Business increased by $400,000, while revenues from other WM Ad solutions increased by $800,000, offset by a $1,000,000 decrease in revenues from Featured Listing and WM Deal products[224] Operating Expenses - Total operating expenses for the three months ended March 31, 2025, were $41,965,000, a 3% increase from $40,628,000 in 2024[227] - General and administrative expenses increased by 18% to $19,451,000 in the three months ended March 31, 2025, compared to $16,526,000 in 2024[227] - Sales and marketing expenses decreased by 7% to $8,948,000 in the three months ended March 31, 2025, from $9,634,000 in 2024[227] - Product development expenses decreased by 13% to $8,004,000 for the three months ended March 31, 2025, compared to $9,229,000 in 2024[227] Income and Other Financial Metrics - The increase in net income was primarily due to a $0.2 million increase in revenue and a $0.8 million increase in other income[191] - Other income (expense), net increased by $1.6 million, primarily due to favorable changes in fair value of warrant liability of $0.9 million and an increase in interest income of $0.4 million[234] Cash Flow and Capital Expenditures - Cash as of March 31, 2025, was $53.3 million, up from $52.0 million as of December 31, 2024, with working capital increasing to $39.9 million[237] - Net cash provided by operating activities for Q1 2025 was $5.7 million, down from $7.4 million in Q1 2024, with net income of $2.5 million[242] - Net cash used in investing activities for Q1 2025 was $3.7 million, consistent with $4.5 million in Q1 2024, both related to capital expenditures[244] - Net cash used in financing activities for Q1 2025 was $0.7 million, a decrease from $1.5 million in Q1 2024, primarily due to distributions payments[246] Strategic Plans - The company plans to continue investments in brand awareness and market expansion to capitalize on growth opportunities[181] - The company aims to grow its two-sided marketplace by attracting more cannabis businesses and consumers to its platform[198] - The company plans to accelerate investments in marketing to enhance brand awareness through both online and offline channels[210] - The company intends to continue making focused organic and inorganic investments to grow revenue and scale operations[209] Industry Insights - The cannabis industry experiences seasonality around specific holidays, which may impact future revenue generation[236] - The company expects existing cash and cash generated from operations to meet anticipated cash needs for at least the next 12 months[237] - The company may seek additional funds through equity or debt financing if existing cash flows are insufficient for future activities[238]