WM Technology, Inc. Q3 FY2023 earnings call

• Doug Francis mentioned that the team navigated continued headwinds in legacy markets while driving growth in target markets like MSOs. The company beat expectations for revenue and adjusted EBITDA for the third quarter in a row, generated positive cash flow. • They plan to sunset WM AdSuite, WM CRM and WM Screens products on December 15, 2023 and focus on the marketplace. • In legacy markets, the team is working to align with surviving companies, creating personalized and affinity-driven user interfaces. • In Q3, the team touched over 250 brands, added over 15,000 products to the brand catalog and curated over 200,000 menu items. Focus on improving the product offering and coverage data within the brands platform. • Engaged with MSO clients, initial conversations regarding 2024 budgets are going well with upside expected. • Focused on maximizing profitability and cash flow, teams are lean and focused. • Board engaged a search firm to find next CEO, but existing leadership team is confident in moving the business forward.

In the third quarter, WM Technology Inc. had revenue of $48 million, adjusted EBITDA of $11 million, and a net loss of $3 million. California represented 52% of the revenue in Q3. The overall cash balance increased by $3 million and ended the quarter with a cash balance of $28 million. Revenue per client was $2,938 in Q3, down 3% from Q2. Average monthly paying clients were 5,414, down about 3% from last quarter.

• Plan Q4 revenue to be $47 million, slightly down from current quarter due to market headwinds. • Expect Q4 adjusted EBITDA to be in the $5 million area. • Remain committed to previous guidance of double-digit adjusted EBITDA margin in fiscal year 2023 and generating positive cash flow for the year.

• Industry faces headwinds such as regulatory enforcement, state GMV, and license growth challenges. • Churn related to delivery clients and client-facing billing issues persisted, particularly in California and Oklahoma. • Macro environment being soft, which could impact client base and revenue.

Q: Will there be a Q&A session?

A: Please note, we will not be holding a Q&A session on this call.