WM Technology, Inc. (NASDAQ:MAPS), a leading marketplace and technology solutions provider to the cannabis industry, announced its financial results late Wednesday for the fourth quarter ending December 31, 2021.
“Our fourth quarter performance was the largest quarterly revenue in our Company’s history at $54 million, which represents a 39% year-over-year growth in our U.S. business. Further, we added over 300 new paying clients during the fourth quarter and expanded our share of licensees in the U.S.,” said Chris Beals, CEO and chairman of WM Technology.
“We believe our growth in the current environment underscores the value we continue to deliver to our clients and is evidence of how they fundamentally understand the importance of Weedmaps to grow their businesses. I’m excited by the opportunities ahead of us in 2022. We will continue to drive deep client engagement, establish Weedmaps as the center of commerce for cannabis consumers and expand adoption of WM Business as we look to attack new markets," Beals continued.
Fourth Quarter 2021 Financial Highlights
- Total revenue increased to $54.2 million, up 22% from the fourth quarter of 2020 or 39% in the U.S. (when adjusting the prior fourth quarter to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were subsequently removed from the Weedmaps marketplace).
- Monthly active users (“MAUs”) increased to 15.7 million as of December 31, 2021 or 57% compared to the prior year period (or 49% when adjusting the current period to exclude the MAUs attributed to the Learn section of weedmaps.com that we were not able to track during the prior period).
- Average monthly revenue per paying client slightly decreased to $3,789 or less than 1% compared to the prior year period (or increased 9% when excluding revenue from Canada-based retail operators who failed to provide valid license information from the prior year period).
- Average monthly paying clients increased by 23% to 4,766 compared to the prior year period (or increased 27% when excluding Canada-based retail operators who failed to provide valid license information from the prior year period).
- Gross Profit was $52.0 million implying a 96% margin rate, which reflects a 70bps margin expansion from the prior year period.
- Net income was $78.4 million as compared to $10.1 million from the prior year period.
- Adjusted EBITDA was $3.8 million as compared to $11.1 million from the prior year period.
- Basic and diluted net income per share was $0.53 based on 66.0 million and 66.3 million of Class A Common Stock weighted average shares outstanding, respectively.
- As of December 31, 2021, WM share count includes:
- 65.7 million shares of Class A Common Stock.
- 65.5 million shares of Class A Common Stock issuable upon exchange of Class A units representing limited liability company interests of WM Holding Company, LLC combined with an equivalent number of shares of Class V Common Stock.
- 7.0 million shares of Class A Common Stock issuable upon exercise of warrants originally issued in a private placement in connection with the initial public offering of Silver Spike Acquisition Corp.
- 12.5 million shares of Class A Common Stock issuable upon exercise of the public warrants originally issued in the initial public offering of Silver Spike.
- Up to 25.7 million shares of Class A Common Stock, 23.7 million of which have vested, issuable upon exchange of Class P units representing limited liability company interests of WMH.
- 6.6 million granted restricted stock units, of which 0.6 million had vested as of December 31, 2021.
- 2.4 million granted and unvested performance-based restricted stock units.
- Cash totaled $67.8 million as of December 31, 2021.
- Photo created by JRod of Benzinga.
