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WM Technology (MAPS)
NASDAQ:MAPS
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WM Technology
(NASDAQ:MAPS)
57Neutral
WM Technology (MAPS) vs. S&P 500 (SPY)
Market Cap
$194.48M
Dividend YieldN/A
Average Volume (3M)751.24K
Price to Earnings (P/E)16.1
Beta (1Y)1.06
Revenue Growth-1.85%
EPS GrowthN/A
CountryUS
Employees440
SectorTechnology
Sector Strength68
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.08
Shares Outstanding105,028,510
10 Day Avg. Volume700,957
30 Day Avg. Volume751,236
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.02
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.13
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
WM Technology Business Overview & Revenue Model
Company DescriptionWM Technology, Inc., operating under the brand name Weedmaps, is a leading technology and software infrastructure provider to the cannabis industry. Founded in 2008 and headquartered in Irvine, California, the company operates within the healthcare and technology sectors. Weedmaps offers a comprehensive suite of cloud-based software solutions designed to support cannabis businesses, including dispensaries, cultivators, and manufacturers. Its core platform serves as a marketplace connecting consumers with cannabis retailers, providing valuable information such as product listings, pricing, and reviews.
How the Company Makes MoneyWM Technology primarily generates revenue through a subscription-based model by offering its software solutions and services to cannabis retailers and brands. These clients pay recurring fees for access to the Weedmaps platform, which includes tools for point-of-sale integration, compliance, and customer relationship management. Additionally, the company earns revenue through advertising and listing fees from cannabis businesses seeking increased visibility on its platform. Key partnerships with industry stakeholders further bolster its revenue streams, as Weedmaps facilitates transactions and interactions within the cannabis ecosystem. The company's earnings are significantly influenced by the regulatory environment of the cannabis industry, impacting the expansion and adoption of its services.
WM Technology Financial Statement Overview
Summary
WM Technology faces challenges with revenue decline and profitability, impacting its income statement score. While leverage has been a concern, recent improvements in equity and cash flow management provide some optimism. The company needs to address revenue growth and operational efficiency to strengthen its financial standing.Income Statement
WM Technology's income statement reveals a declining revenue trend over recent years, with a significant drop from $215.5 million in 2022 to $184.5 million in 2024. The company has struggled with profitability, showing negative net income in multiple years, though it turned a small profit in 2024. While gross profit margins are healthy, consistent negative EBIT and EBITDA margins in prior years highlight operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a relatively high debt-to-equity ratio, indicating leverage concerns, though it has improved in recent years. The equity ratio has been weak, reflecting limited shareholder equity. However, the return to positive equity in 2024 suggests some recovery. Overall asset levels have declined, reflecting shrinking operations.55
Neutral
Cash Flow
WM Technology's cash flow statement shows positive operating cash flow, highlighting strong cash generation ability despite net losses. Free cash flow is positive and has grown significantly from 2023 to 2024. The company has maintained positive cash flow ratios, indicating solid cash management.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 184.51M | 187.99M | 215.53M | 193.15M | 161.79M | Gross Profit |
| 175.50M | 175.47M | 200.12M | 185.21M | 154.16M | EBIT |
| 14.75M | -18.46M | -69.62M | -8.18M | 41.20M | EBITDA |
| 20.96M | 23.01M | -49.15M | -1.38M | 45.18M | Net Income Common Stockholders |
| 7.64M | -9.90M | -82.65M | 152.22M | 38.83M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 51.97M | 34.35M | 28.58M | 67.78M | 19.92M | Total Assets |
| 181.87M | 167.02M | 199.03M | 365.14M | 53.89M | Total Debt |
| 30.09M | 33.04M | 39.38M | 44.84M | 205.00K | Net Debt |
| -21.87M | -1.31M | 10.79M | -22.94M | -19.71M | Total Liabilities |
| 61.80M | 63.87M | 84.26M | 233.20M | 24.62M | Stockholders Equity |
| 36.08M | 16.38M | 13.38M | 63.56M | 29.27M |
| Cash Flow | Free Cash Flow | |||
| 36.68M | 11.06M | -27.68M | 15.16M | 37.92M | Operating Cash Flow |
| 36.68M | 22.93M | -11.62M | 23.09M | 39.24M | Investing Cash Flow |
| -11.64M | -11.87M | -17.77M | -30.43M | -1.31M | Financing Cash Flow |
| -7.42M | -5.29M | -9.80M | 55.20M | -22.97M |
WM Technology Technical Analysis
Positive
1.26
Price Trends
1.21
Positive
1.29
Negative
1.13
Positive
Market Momentum
0.01
Negative
62.58
Neutral
89.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAPS, the sentiment is Positive. The current price of 1.26 is above the 20-day moving average (MA) of 1.10, above the 50-day MA of 1.21, and above the 200-day MA of 1.13, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 62.58 is Neutral, neither overbought nor oversold. The STOCH value of 89.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAPS.
WM Technology Risk Analysis
WM Technology disclosed 81 risk factors in its most recent earnings report. WM Technology reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WM Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $189.44M | 28.44 | 4.60% | ― | 11.28% | 41.56% | |
60 Neutral | $10.94B | 10.58 | -7.08% | 2.98% | 7.52% | -12.04% | |
57 Neutral | $194.48M | 16.11 | 29.12% | ― | -1.85% | ― | |
50 Neutral | $186.76M | ― | -10.65% | ― | -26.16% | 2.89% | |
48 Neutral | $200.62M | ― | -24.82% | ― | -9.55% | 12.28% | |
46 Neutral | $223.42M | ― | -32.07% | ― | 4.89% | -31.44% | |
43 Neutral | $173.21M | ― | 103.42% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
MAPS
WM Technology
1.26
0.01
0.80%
ONTF
ON24
4.74
-2.11
-30.80%
SMRT
SmartRent
0.97
-1.48
-60.41%
PERF
Perfect Corp
1.86
-0.37
-16.59%
LAW
CS Disco
3.70
-4.26
-53.52%
MRT
Marti Technologies
3.02
1.36
81.93%
WM Technology Earnings Call Summary
Earnings Call Date:Mar 13, 2025
(Q4-2024)
| % Change Since: 7.69%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While WM Technology demonstrated sequential growth, profitability, and effective cost reduction, it continues to face substantial industry and regulatory challenges which are impacting client profitability and revenue. The company is investing in technology and expansion into adjacent markets, but the uncertainty in the regulatory landscape remains a significant hurdle.Q4-2024 Updates
Positive Updates
Sequential Growth and Profitability
For the fourth quarter, WM Technology delivered $47.7 million in revenue, $11.9 million in adjusted EBITDA, bringing full year revenue to $184.5 million and adjusted EBITDA of $42.9 million. The company ended the year with a strong debt-free balance sheet, closing with $52 million in cash.
Operational Discipline and Cost Reduction
GAAP OpEx decreased 27% versus the prior year Q4 results, driven by the $16 million impairment charges taken last year. Similarly, for the full year, GAAP OpEx decreased 22% compared to fiscal year 2023. Net income for the quarter was $3.7 million, compared to a net loss of $11.2 million in Q4 of last year.
Strategic Investments and Technological Advancements
WM Technology is prioritizing investments in technology and marketing to strengthen the foundation of the Weedmaps platform and unlock future opportunities. Notable initiatives include expanding into the hemp, head shop, and homegrown seed markets.
Client Base Growth and Revenue Increases
Q4 average monthly paying clients increased 4% versus the prior year period. Additionally, revenues in the fourth quarter increased sequentially and exceeded guidance, driven by growth from deal listings and display ad products.
Negative Updates
Industry Pressures and Regulatory Challenges
The cannabis industry faces significant challenges, including regulatory burdens, over-taxation, wholesale pricing pressures, and competition from the illicit and hemp markets. The federal and state-level regulatory uncertainty continues to affect the overall industry health.
Average Monthly Revenue Per Paying Client Decrease
The average monthly revenue per paying client in Q4 decreased 2% compared to the prior year period due to ongoing client marketing budgetary constraints and limited capacity for upsell.
Full Year Revenue Decline
The full year 2024 revenue of $184.5 million decreased from $188 million in the prior year, mainly due to constraints in clients' marketing budgets and industry consolidation.
Company Guidance
During the call, WM Technology reported fiscal year 2024 revenues of $184.5 million and an adjusted EBITDA of $42.9 million, reflecting a 23% margin. The fourth quarter alone saw $47.7 million in revenue and $11.9 million in adjusted EBITDA, marking a 25% margin. The company ended the year with a strong balance sheet, featuring $52 million in cash and a debt-free status. Average monthly paying clients in Q4 2024 numbered 5,225, up 4% year-over-year, although average monthly revenue per paying client dropped by 2% to $3,041. Despite ongoing industry challenges, including regulatory pressures and client budget constraints, WM Technology exceeded its guidance for Q4 revenue and adjusted EBITDA. Looking forward to the first quarter of 2025, the company anticipates revenues of approximately $43 million and an adjusted EBITDA of around $7 million, as it invests in technology and marketing initiatives to support long-term growth.WM Technology Corporate Events
M&A Transactions
WM Technology Receives Acquisition Proposal from Co-Founders
Neutral
Dec 19, 2024
WM Technology has received a non-binding proposal from co-founders Douglas Francis and Justin Hartfield to acquire all outstanding shares of the company not already owned by them for $1.70 per share, representing a significant premium over current trading levels. A special committee of independent directors has been formed to evaluate the proposal with the assistance of financial and legal advisors, although there is no guarantee that a definitive agreement will be reached or the transaction completed.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.