Leafly(US:LFLY)2024-08-10 18:23Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $8.7 million, down 18.3% year-over-year and down 3.6% sequentially [12][14] - Net loss for Q2 2024 was $1.3 million, an improvement from a net loss of $1.4 million in Q2 2023 [14] - Adjusted EBITDA was positive at $483,000, compared to $80,000 in Q2 2023, reflecting improved collection efforts [14][15] - Operating expenses totaled $8.4 million, down 17.5% year-over-year [14] Business Line Data and Key Metrics Changes - Retail revenue in Q2 was $7.3 million, while brand revenue was $1.4 million, with brand revenue down 25% year-over-year but up from $1.2 million in Q1 [12][14] - The average revenue per account (ARPA) for Q2 was $684, up 23% year-over-year and up about 1% sequentially [13] Market Data and Key Metrics Changes - The decline in retail accounts was concentrated in Florida, California, and Oklahoma, which accounted for about 40% of the total decline [12] - Ending retail accounts totaled 3,595, reflecting a sequential decline of 245 accounts compared to Q1 [12][14] Company Strategy and Development Direction - The company is focused on enhancing operational efficiency and building a path to profitability while creating value for consumers, brands, and retailers [5] - A revamped brand subscription offering was introduced, with tiers to incentivize upgrades to paying tiers [8] - The company is exploring opportunities in hemp-derived cannabinoids to connect consumers with cannabis products [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the future, noting that account cancellations are lower and expecting a moderation in the decline of retail accounts [13] - The company is working on several projects to stabilize revenues and is seeing early positive results from new sales efforts and product enhancements [17] Other Important Information - The company ended Q2 with $13.6 million in cash and has launched an at-the-market offering program to raise capital [16] - The company is in discussions regarding its outstanding convertible notes due in January 2025 [16] Q&A Session Summary Question: How is the second half of the year shaping up? When can you get back to top line growth? - Management indicated that they are not providing guidance beyond Q3 but are working hard to stabilize the account base and revenues, seeing early positive signs from new initiatives [18] Question: How many new accounts did you add in the second quarter? - The gross account additions in Q2 were similar to Q1, but net declines in retail accounts continue [19] Question: Can you provide an update on the status of your Nasdaq listing? - The company submitted a proposed plan of compliance to Nasdaq and is working to regain compliance with listing standards [20]