John Schroyer
California-based WM Technology Inc. (Nasdaq: MAPS), the parent company of dispensary-finder website Weedmaps, found its way back into the black this past quarter after a lengthy financial losing streak, posting a $1.9 million profit.
That wasn’t enough, however, to put the company into profitability for the calendar year, however, since Weedmaps lost $4 million in the first quarter. That means that the company is $1.9 million in the red for 2023 so far.
Weedmaps also saw a slight increase in average monthly paying clientele, from 5,537 a year ago to 5,609, but the average those clients have been paying Weedmaps has shrunken, from $3,509 a year ago to $3,022 today.
That disparity drove company revenue down, to $50.9 million from $58.3 million the same quarter a year prior. Revenue is also down year-to-date compared to 2022, to $98.5 million from $115.7 million.
Weedmaps finished the quarter with $24.6 million in the bank, down from $28.5 million at the start of Q2, another sign the company continues to burn cash; Weedmaps had $67.7 million at the start of the second quarter in 2022.
The cannabis advertising giant has been on a financial roller coaster for a few years now. The once-profitable company posted an $83 million loss last year, and its longtime CEO, Chris Beals, stepped aside in November, which paved the way for Executive Chairman Doug Francis to take over.
Francis said in a press release Tuesday that the profits of Q2 “reflect the positive changes we have made to our business over the past few quarters and our commitment to returning to positive cash flow.”
