WM Technology, Inc. Q3 FY2023 earnings call

• Beat expectations for revenue and adjusted EBITDA for the third quarter in a row, generating positive cash flow.
• Expect to sunset WM AdSuite, WM CRM and WM Screens products on December 15, 2023 and focus on the marketplace.
• In legacy markets, working to align with surviving companies and creating personalized user interfaces within regulatory frameworks.
• In Q3, the team touched over 250 brands, added over 15,000 products to the brand catalog and curated over 200,000 menu items.
• Historically limited engagement with MSO clients, but initial conversations regarding 2024 budgets are going well with upside expected.
• Focused on maximizing profitability and cash flow, with lean and focused teams operating.

In the third quarter, WM Technology Inc. had revenue of $48 million. California represented 52% of the revenue in Q3. Adjusted EBITDA was $11 million. The company had a net loss of $3 million, primarily due to one-time non-cash expenses. The overall cash balance increased by $3 million, ending the quarter with $28 million in cash. Average monthly paying clients were 5,414, down about 3% from the previous quarter. Revenue per client was $2,938 in Q3, down 3% from Q2.

• Expect Q4 revenue to be $47 million, slightly down from Q3 due to market headwinds.
• Expect Q4 adjusted EBITDA to be in the $5 million area.
• Remain committed to double-digit adjusted EBITDA margin in fiscal year 2023 and generating positive cash flow for the year.

• Macro-economic and industry headwinds in legacy markets.
• Regulatory and industry framework variations by state, including vertical integration requirements, regulatory capture, and specific policies limiting third-party marketplaces.
• Client churn related to delivery clients and client-facing billing issues, particularly in California and Oklahoma.
• Challenges in the industry including regulatory enforcement, state GMV, and license growth.

Q: Will there be a Q&A session?

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