Californian WM Technology Inc.’s (Nasdaq – MAPS), which is the parent of the popular dispensary locator Weedmaps online, has reported a profit of $12.2 for 2024, a significant turnaround from its loss of $15.7 in 2023. Weedmaps had a profitable year in 2024, a big turnaround from its loss of $82.7 millions two years prior.
Weedmaps posted a net income of $3.75 million for the quarter that ended on Dec. 31, down from the previous quarter’s $5.3 million but higher than the $11.2 million loss in 2023.
Weedmaps reported revenues of $184.5 for the year, down from $188, but $47.7 for the quarter, which was up from $46.5. Weedmaps reported that the increase in revenue for the fourth quarter was due to their “Deal Listings and Display Ad Products”, but blamed its annual decline on “constrained Marketing Budgets” as well as “the continuing consolidation of our Industry.” Weedmaps reported that certain products it stopped offering in December of 2023 had also lost some revenue.
Weedmaps also saw a decline in its average-paying clients for the year. However, this number increased slightly during the fourth quarter. The company’s total client list for 2024 dropped to 5,077, down from 5,419 clients in 2023. However, average monthly revenue increased to $3,029, up from $2,891.
The average number of Weedmaps clients who pay on average increased from 5 014 to 5, 225 in the fourth quarter. However, average revenue per customer decreased slightly from $3 089 to $3 041.
Doug Francis, the CEO of Doug Francis Inc. said that his operational discipline as well as ability to drive profits were key to navigating through unique challenges in this industry. Now we’re in an ideal position to invest our money back into our people and technologies.
Susan Wong, CFO of Weedmaps added that “we have been able to enhance our account receivables process and improve the quality and quantity of our receivables”, which led to a stronger cash position.
Weedmaps’ overall signals look positive, especially as it has struggled to achieve profitability over the past few years. Francis and Justin Hartfield, co-founders of Weedmaps, have offered to remove the tech company from public trade at $1.70 for each share.
It was a follow-up to doubling the number outstanding shares, which had been done in December. The goal of this move was to raise $200 million dollars to continue operations. Weedmaps said in a release issued this week it will continue to make investments in its “important technology and promotional initiatives” to help strengthen their platform.
According to a company press release, it also projects a first-quarter revenue of about $43,000,000.
Weedmaps’ total assets at the end of last year were $181.8 Million, with $51.9 Million in cash. This was compared to $61.7M in liabilities.