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WM Technology (MAPS)
NASDAQ:MAPS
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WM Technology
(NASDAQ:MAPS)
Rating:58Neutral
Price Target:
$1.00
▼(-3.85%Downside)
WM Technology (MAPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$160.55M
Dividend YieldN/A
Average Volume (3M)636.21K
Price to Earnings (P/E)13.0
Beta (1Y)1.00
Revenue Growth0.20%
EPS GrowthN/A
CountryUS
Employees440
SectorTechnology
Sector Strength84
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding105,053,764
10 Day Avg. Volume447,410
30 Day Avg. Volume636,206
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)3.04
Price to Sales (P/S)0.00
P/FCF Ratio6.90
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit0.88
Enterprise Value/Ebitda1.28
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 Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -11.11%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted modest revenue growth and client base expansion, alongside significant technological advancements and a solid cash position. However, these positives were balanced by substantial regulatory challenges, a decrease in revenue from specific listings, declining revenue per client, and increased operating expenses.Q1-2025 Updates
Positive Updates
Revenue Growth and Exceeding Guidance
First quarter revenue was $44.6 million, a modest increase of $0.2 million or 1% year-over-year, driven by growth in standard listings and display advertising. Adjusted EBITDA for the first quarter was $10.1 million, exceeding expectations.
Client Base Expansion
Average monthly paying clients for the quarter increased 5% year-over-year to 5,179, driven by new client acquisitions in underpenetrated markets.
Cash Growth and No Debt
The company generated $1.3 million in cash from operations and ended the first quarter with a cash balance of $53.3 million, marking the seventh consecutive quarter of cash growth, with no debt on the balance sheet.
Technological Advancements
Progress in technology and product development with improvements to data infrastructure, automation, and machine learning capabilities under the new CTO.
Negative Updates
Regulatory Challenges
The cannabis industry faces ongoing challenges due to regulatory inaction, over-taxation, and competition from unregulated hemp. Tariffs also pose a new challenge, potentially increasing operating costs.
Revenue Decline in Featured and Deal Listings
A $1 million decline in revenue from featured and deal listings reflects financial pressures in the industry, limiting discretionary spend.
Decline in Revenue Per Client
Average monthly revenue per paying client declined to $2,871 from $2,997 in the prior year, due to pricing pressures, consolidation, and reduced marketing budgets.
Increase in Operating Expenses
GAAP operating expenses increased by $1.3 million or 3% year-over-year, with a rise in general and administrative expenses due to non-recurring charges.
Company Guidance
During the first quarter of 2025 earnings call, WM Technology, Inc. provided a cautiously optimistic guidance amidst industry challenges. The company reported a first-quarter revenue of $44.6 million, a 1% year-over-year increase, with growth in standard listings and display advertising partially offset by a decline in featured and deal listings. The average monthly paying clients rose by 5% to 5,179, although the average monthly revenue per paying client dropped to $2,871 due to financial pressures in mature markets. Despite a 3% increase in GAAP operating expenses to $42 million, net income grew to $2.5 million, driven by warrant adjustments and higher interest income. Adjusted EBITDA exceeded expectations at $10.1 million, supported by reduced advertising and wage costs. The company ended the quarter with a cash balance of $53.3 million, marking seven consecutive quarters of cash growth with no debt. For the second quarter, WM Technology anticipates revenues of approximately $45 million and a non-GAAP adjusted EBITDA of around $8 million, as it continues to navigate regulatory and market challenges within the cannabis industry.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 |
| 31.80M | 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 | |||
| 25.04M | 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
Negative
1.04
Price Trends
1.11
Negative
1.22
Negative
1.14
Negative
Market Momentum
-0.03
Positive
44.56
Neutral
37.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAPS, the sentiment is Negative. The current price of 1.04 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.11, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 37.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 2 New Risks
1.
Public statements from investors, including expressions of interest or proposals to purchase our company, may increase the volatility of, or otherwise have an adverse impact on, the market price of our Class A common stock. Q4, 2024
2.
In the past we have not met, and may in the future not comply with, the listing standards of Nasdaq, and as a result our Class A Common Stock may be delisted. Delisting could adversely affect the liquidity of our Class A Common Stock and the market price of our Class A Common Stock could decrease. Q4, 2024
WM Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $183.33M | 27.52 | 4.60% | ― | 11.28% | 41.56% | |
61 Neutral | $11.55B | 10.41 | -6.86% | 2.93% | 7.50% | -8.30% | |
58 Neutral | $160.55M | 13.03 | 23.24% | ― | 0.20% | ― | |
56 Neutral | $236.59M | ― | -24.47% | ― | -8.39% | 7.79% | |
56 Neutral | $247.48M | ― | -33.75% | ― | 3.84% | -76.01% | |
51 Neutral | $158.63M | ― | -22.66% | ― | -25.43% | -135.09% | |
39 Underperform | $224.28M | ― | 103.42% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
MAPS
WM Technology
1.05
0.05
5.00%
ONTF
ON24
5.49
-0.30
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SMRT
SmartRent
0.91
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PERF
Perfect Corp
1.80
-0.15
-7.69%
LAW
CS Disco
4.16
-1.73
-29.37%
MRT
Marti Technologies
2.88
1.13
64.57%
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.