WM Technology(MAPS) - 2021 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Q2 2021 revenue reached $47 million, representing a 21% year-over-year growth, and a 55% growth when excluding Canadian revenue from last year [7][50] - Gross profit for Q2 was $45 million, reflecting a 96% margin rate, with a slight margin expansion of 70 basis points year-over-year [61] - Adjusted EBITDA for Q2 was $9 million, showing a decline compared to the previous year due to operational expense investments [61][62] Business Line Data and Key Metrics Changes - The Weedmaps marketplace and WM business software offerings both contributed to revenue growth, with the featured listings product accounting for 55% of Q2 gross revenue [51][53] - Average monthly revenue per paying client in the US increased by 21% year-over-year, with a 28% growth in paying clients [54] Market Data and Key Metrics Changes - The company has over 4,300 paying clients, with an average spend of approximately $3,600 per month [17] - There are over 12 million monthly active users, with 90% consuming cannabis at least once a week [18] Company Strategy and Development Direction - The company aims to establish the Weedmaps marketplace as the center of commerce for cannabis consumers and WM business as the preferred software solution for cannabis businesses [15][24] - Focus on expanding client acquisition through promotional offers and targeted outreach, while enhancing product offerings to drive cross-product adoption [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the cannabis market's growth, citing the legalization momentum and the potential for new market openings [39][40] - The company anticipates total revenue growth of $205 million for the full year, with a focus on Q4 for significant growth [72][74] Other Important Information - The company ended Q2 with $92 million in cash and no financial debt, providing flexibility for future investments [69] - The DOJ has withdrawn a subpoena related to a previous investigation, which management views positively for future compliance and growth [38] Q&A Session Summary - No specific questions or answers were documented in the provided content [77]