WM Technology(MAPS) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - First quarter revenue was $44.6 million, a modest increase of $200,000 or 1% compared to $44.4 million in the prior year period, driven by growth in standard listings and display advertising [11][12] - Net income rose to $2.5 million from $2 million in the prior year, primarily due to mark-to-market adjustments on warrants and higher interest income [14] - Adjusted EBITDA for the first quarter was $10.1 million, exceeding expectations due to higher-than-expected revenue and lower-than-anticipated expenses [14] Business Line Data and Key Metrics Changes - Growth in standard listings increased by $400,000, while display advertising grew by $800,000, offset by a $1 million decline in revenue from featured and deal listings [11][12] - Average monthly paying clients increased by 5% year over year to 5,179, but average monthly revenue per paying client declined to $2,871 from $2,997, reflecting spending pullbacks in mature markets [12][13] Market Data and Key Metrics Changes - The cannabis industry continues to face challenges from over-taxation and competition from unregulated hemp, leading to decreased retail prices in mature markets [5][7] - Emerging markets show potential but remain subscale in the overall industry picture, with their growth not compensating for challenges in mature markets [7] Company Strategy and Development Direction - The company is focused on disciplined execution, maintaining a lean cost structure, and driving ROI-driven investments while generating cash [8] - Significant progress has been made in technology and product development, including improvements in data infrastructure and automation, as well as enhancements to the product catalog [9] - The marketing organization has been restructured to reconnect with the brand's heritage in the cannabis culture and community [9][10] Management's Comments on Operating Environment and Future Outlook - The regulatory environment remains unchanged, with no relief in sight regarding federal regulation around taxes, banking, or rescheduling [5][6] - Management remains hopeful for future movement towards federal legalization, as polling indicates strong public support [6][7] - The company expects revenues for the second quarter to be approximately $45 million, with non-GAAP adjusted EBITDA estimated at approximately $8 million [15][16] Other Important Information - GAAP operating expenses totaled $42 million, reflecting a 3% increase over the prior year, driven by higher general and administrative expenses [13] - The company ended the first quarter with a cash balance of $53.3 million, marking the seventh consecutive quarter of cash growth [14] Q&A Session Summary Question: What are the expectations for revenue growth in the upcoming quarters? - The company expects revenues for the second quarter to be approximately $45 million, indicating a cautious but positive outlook for growth [15] Question: How is the company addressing the challenges in the cannabis industry? - The company is maintaining a disciplined approach, focusing on cost management and strategic investments to navigate ongoing industry challenges [8][10]