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Weedmaps CEO resigns as losses pile up

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WM Technology lost $10,5 million in the third quarter of this year: a drastic drop from last year

WM Technology Inc. (Nasdaq: MAPS) posted a loss of $10,5 million in the third quarter of this year – a drastic drop from a year ago. This news was accompanied by the departure of longtime CEO Chris Beals.

Revenue for the quarter was relatively flat at $50,5 million, compared to $50,9 million for the prior year period.

Co-founder and executive chairman Doug Francis will take over the role of CEO, a position he held before Beals, while the company searches for a new chief executive officer. Mr. Beals is also stepping down from his seat on the company's board.

"Although end-market conditions have been challenging, we can achieve a higher level of execution by becoming more focused and streamlining our operations," Mr. Francis said in the communicated, also noting that the company has “evolved significantly” since its inception 14 years ago.

We have significant opportunities to expand our base and build the future rails of the cannabis industry, while working to return to our operating culture of generating profitable growth and cash flow. »

It hasn't been a good year for Weedmaps.com, the dispensary search website and primary revenue engine of parent company WM Technology.

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Year-to-date, WM Technology has lost $21,8 million, a stark contrast to the same period in 2021, when the company posted a profit of $73,7 million, according to the earnings report. of the third trimester.

Although the company's user base is up — 5 paying customers for Q576 2022 from 4 for the same quarter last year — average revenue per customer is down to $444 for the quarter, compared to $3 per customer in 019.

WM Technology also doesn't expect a turnaround anytime soon, even with the change in leadership.

"We expect ... a year-over-year decline in the double-digit percentage area for fourth-quarter revenue," the company said in the statement.

WM Technology's share price is also at its lowest level since going public in June last year, trading at $1,83 per share at the close on Monday.


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