WM Technology, Inc. Q1 FY2025 earnings call

• CEO Doug Francis mentioned the company exceeded Q1 guidance, grew revenue, adjusted EBITDA, and ending cash year-over-year despite a challenging cannabis industry environment with regulatory inaction, over taxation, competition from unregulated hemp, and new tariff issues. • Noted the regulatory environment remains unchanged with no relief in sight for federal regulation around taxes, banking, or rescheduling but remains hopeful for federal legalization. • Highlighted the team's disciplined execution, growing client base in underpenetrated markets, and helping existing clients navigate dynamics. • Technology and product development made progress with foundational improvements to data infrastructure, automation, machine learning, AI, and enhanced product catalog, taxonomy, and search capabilities. • Marketing organization restructured in Q1 with early impact seen, including 420 activations.

First quarter revenue was $44.6 million, roughly in line with the $44.4 million reported in the prior year period. The modest increase of $0.2 million or 1% was driven by growth in standard listings ($0.4 million increase) and display advertising ($0.8 million increase), partially offset by a $1 million decline in revenue from featured and deal listings. Average monthly paying clients for the quarter increased 5% year-over-year to 5,179, but average monthly revenue per paying client declined to $2,871 from $2,997 in the prior year.

• Expect revenues for the second quarter to be approximately $45 million. • Non-GAAP adjusted EBITDA is estimated to be approximately $8 million.

• Regulatory environment remains unchanged with over taxation and competition from unregulated hemp. • Tariffs could increase clients' operating costs when consumers are price sensitive, compressing margins. • Mature markets have decreasing retail prices and lack of regulatory relief, reducing clients' cash flow and ability to buy services. • Emerging markets remain subscale and don't make up for challenges in mature markets.