WM Technology(MAPS) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported revenues of $45.9 million for Q2 2024, representing a $2.5 million or 5% decline compared to the same period last year [11] - Adjusted EBITDA for the quarter was $10.1 million, with an adjusted EBITDA margin of 22%, exceeding expectations [14] - Net income for Q2 was $1.3 million, slightly down from $2 million in Q2 of the previous year [14] - The company generated $5.5 million in cash during the quarter, ending with $41.3 million in cash and remaining debt-free [15] Business Line Data and Key Metrics Changes - Average monthly paying clients decreased by about 10% year-over-year to 5,045, reflecting client churn and the impact of discontinued products [12] - Average monthly net revenue per paying client increased by 5% to $3,033 compared to the prior year, due to the removal of lower-revenue clients [12] Market Data and Key Metrics Changes - The cannabis industry remains dynamic, with ongoing discussions about federal rescheduling of cannabis, which could impact the market [6] - The company has largely avoided the intoxicating hemp market but is prepared to adapt if federal regulations do not close existing loopholes [6] Company Strategy and Development Direction - The company aims to focus on organic and natural growth opportunities while maintaining a strong balance sheet, avoiding speculative growth strategies [8] - There is an emphasis on operational discipline and improving cash flow, with plans to discuss new initiatives in the next quarter [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that growth is not at desired levels and recognizes the need for improvement despite some bright spots [9] - The outlook for Q3 anticipates net revenues of approximately $44 million and adjusted EBITDA of about $7 million, with expected fluctuations due to seasonality [15] Other Important Information - The company is in the process of searching for a new CTO following the departure of the previous CTO, who will continue to provide advisory support [5] - Management emphasizes the importance of sensible cannabis regulation for industry stability and consumer safety [7] Summary of Q&A Session - There was no Q&A session for this event [16]