WM TECHNOLOGY INC (NASDAQ:MAPS) reported second-quarter revenue and earnings that both fell short of analyst estimates, sending shares modestly lower in extended trading as the company continued to navigate a difficult operating environment for cannabis retailers and brands.
Results versus estimates
For the quarter ended June 30, revenue was $42.4 million, compared with a consensus estimate of $43.6 million, a shortfall of roughly 2.6%. Non-GAAP earnings per share came in at $0.02, below the $0.031 analysts had expected.
The top-line decline reflects pressure on the company's paying client base. Revenue fell from $44.8 million in the same period last year, with management pointing to margin compression and cash flow constraints among customers in more established cannabis markets.
Key second-quarter metrics
- Revenue: $42.4 million, down from $44.8 million year over year
- Net income: $2.9 million, up from $2.2 million
- Adjusted EBITDA: $5.0 million, down from $11.7 million
- Average monthly paying clients: 5,040, down from 5,241
- Average monthly revenue per paying client: $2,807, down from $2,852
- Cash and cash equivalents: $60.5 million at quarter end
The company said client churn in mature markets was partially offset by new client acquisitions in developing states, but pricing pressure and industry consolidation continued to weigh on average spending per client.
Market reaction
Shares were down about 0.9% in after-hours trading following the release. The move comes after a difficult stretch for the stock, which is down roughly 41% over the past month despite a 6.8% gain over the last week. The relatively muted after-hours response suggests some of the disappointment had been priced in ahead of the print.
Outlook
For the third quarter, WM Technology said it expects revenue to decline by mid-single digit percentages sequentially from the second quarter. That would imply revenue in the low-$40 million range, broadly consistent with the current consensus estimate of approximately $40.8 million. The company noted that the guidance assumes no acquisitions, investments, restructurings, or legal settlements during the period.
Investors looking for additional historical earnings detail can review the earnings history page. For updated estimates and projections, the forecast page provides the latest consensus data.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
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WM Technology (NASDAQ:MAPS) Misses Q2 Estimates and Guides to Sequential Revenue Decline
WM TECHNOLOGY INC (NASDAQ:MAPS) reported second-quarter revenue and earnings that both fell short of analyst estimates, sending shares modestly lower in extended trading as the company continued to navigate a difficult operating environment for cannabis retailers and brands.
Results versus estimates
For the quarter ended June 30, revenue was $42.4 million, compared with a consensus estimate of $43.6 million, a shortfall of roughly 2.6%. Non-GAAP earnings per share came in at $0.02, below the $0.031 analysts had expected.
The top-line decline reflects pressure on the company's paying client base. Revenue fell from $44.8 million in the same period last year, with management pointing to margin compression and cash flow constraints among customers in more established cannabis markets.
Key second-quarter metrics
The company said client churn in mature markets was partially offset by new client acquisitions in developing states, but pricing pressure and industry consolidation continued to weigh on average spending per client.
Market reaction
Shares were down about 0.9% in after-hours trading following the release. The move comes after a difficult stretch for the stock, which is down roughly 41% over the past month despite a 6.8% gain over the last week. The relatively muted after-hours response suggests some of the disappointment had been priced in ahead of the print.
Outlook
For the third quarter, WM Technology said it expects revenue to decline by mid-single digit percentages sequentially from the second quarter. That would imply revenue in the low-$40 million range, broadly consistent with the current consensus estimate of approximately $40.8 million. The company noted that the guidance assumes no acquisitions, investments, restructurings, or legal settlements during the period.
Investors looking for additional historical earnings detail can review the earnings history page. For updated estimates and projections, the forecast page provides the latest consensus data.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »