WM Technology, Inc. Q4 FY2024 earnings call

• Welcomed new Chief Technology Officer Sarah Griffiths who has made an impact on the technology organization. - 2024 saw sequential growth and profitability, ending the year debt-free with $52 million in cash. - The industry faces challenges such as regulatory burdens, over-taxation, and competition from illicit and hemp markets. - In 2025, plan to invest in technology and marketing to strengthen the Weedmaps platform. - Aim to expand horizontally into hemp, head shop, and homegrown seed markets, with initiatives scheduled for the second half of 2025.

In the fourth quarter, WM Technology, Inc. achieved $47.7 million in revenue and $11.9 million in adjusted EBITDA. The full year revenue reached $184.5 million with adjusted EBITDA of $42.9 million. Fourth quarter revenue saw a 3% year-over-year increase, driven by growth in deal listings and display ad products, while partially offset by lower spend on featured listings and revenue from sunset products in the prior year's fourth quarter. The average monthly paying clients in Q4 were 5,225, a 4% year-over-year increase. GAAP OpEx in Q4 decreased 27% compared to the prior year's Q4, mainly due to $16 million impairment charges from sunsetting certain products, leases, and minority investments. For the full year, revenue decreased from $188 million to $184.5 million, affected by client marketing budget constraints and industry consolidation, but partially offset by favorable pricing changes for the Weedmaster for Business product in Q4 2023. The average monthly paying clients for the full year dropped to 5,077. The adjusted EBITDA margin for the year was 23%, an increase from the prior year.

• Expect Q1 revenues to be approximately $43 million and Q1 non-GAAP adjusted EBITDA to be approximately $7 million, with a focus on strategic investments in technology and marketing to support long-term growth.

• Regulatory uncertainty at state and federal levels, including potential excise tax increases in California, regulatory obstacles in New York and Florida, and federal cannabis reform not being a priority. - Industry consolidation due to client profitability challenges. - Regulatory uncertainty for emerging markets like industrial hemp, including Texas' proposed regulation that could alter the opportunity landscape.