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Wm Technology, Inc. (MAPS)
:MAPS
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WM Technology
(NASDAQ:MAPS)
Rating:60Neutral
Price Target:
$1.00
▼(-1.96%Downside)
WM Technology (MAPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$157.46M
Dividend YieldN/A
Average Volume (3M)585.17K
Price to Earnings (P/E)12.7
Beta (1Y)1.03
Revenue Growth0.20%
EPS GrowthN/A
CountryUS
Employees440
SectorTechnology
Sector Strength79
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding105,053,764
10 Day Avg. Volume540,872
30 Day Avg. Volume585,175
Financial Highlights & Ratios
PEG Ratio8.21
Price to Book (P/B)1.34
Price to Sales (P/S)0.00
P/FCF Ratio265.60
Enterprise Value/Market Cap1.96
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit1.76
Enterprise Value/Ebitda2.53
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. provides ecommerce and compliance software solutions to retailers and brands in cannabis market in the United States, Canada, and internationally. The company offers Weedmaps marketplace that allows cannabis users to search for and browse cannabis products from retailers and brands, and reserve products from local retailers; and information on the cannabis plant, and the industry and advocate related services for legalization. It also provides WM Business suite of monthly subscription-based software solutions, including WM Orders, WM Dispatch, WM Store, WM Dashboard, integrations, and API platform, as well as access to its WM Retail and WM Exchange products. In addition, the company offers advertising solutions; Sprout, a customer relationship management solution; and Cannveya, a delivery and logistics software solution. WM Technology, Inc. was founded in 2008 and is headquartered in Irvine, California.
How the Company Makes MoneyWM Technology generates revenue primarily through its software solutions and marketplace services tailored to the cannabis industry. The company earns money by charging subscription fees to cannabis businesses for access to its suite of software tools and marketplace platform. These tools help businesses manage operations, enhance customer engagement, and ensure regulatory compliance. Additionally, Weedmaps derives revenue from advertising services, where cannabis brands and retailers pay for enhanced visibility and promotional placements within the marketplace. Strategic partnerships with cannabis industry stakeholders further contribute to its revenue streams by expanding the reach and adoption of its technology solutions.
WM Technology Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -12.82%|
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 demonstrates solid operational capabilities with strong gross margins and improving cash flow metrics. However, challenges remain in revenue growth and profitability consistency. The balance sheet reflects a stable capital structure with moderate leverage, and cash flow indicators point to efficient cash management.Income Statement
The company shows a strong gross profit margin with TTM at 95.16%, indicating effective cost management. However, the net profit margin is modest at 4.36% TTM, with recent years showing inconsistent profitability. Revenue growth is negative year-over-year, indicating a decline from 2022 to 2024. EBIT and EBITDA margins are improving but were negative in earlier years, highlighting past operational challenges.55
Neutral
Balance Sheet
The debt-to-equity ratio is moderate at 0.60 TTM, showing a manageable level of leverage. The return on equity has improved significantly to 16.61% TTM, indicating better utilization of equity. The equity ratio is 26.37% TTM, suggesting a stable capital structure, although there were fluctuations in previous years.60
Neutral
Cash Flow
The company has a strong free cash flow to net income ratio of 3.01 TTM, indicating good cash generation relative to earnings. Operating cash flow to net income ratio stands at 4.34 TTM, showing efficient cash operations. Free cash flow growth is stable, reflecting good cash management, although past periods showed variability.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 184.74M | 184.51M | 187.99M | 215.53M | 193.15M | 161.79M | Gross Profit |
| 175.78M | 175.50M | 175.47M | 200.12M | 185.21M | 154.16M | EBIT |
| 14.51M | 14.75M | -18.46M | -69.62M | -8.18M | 41.20M | EBITDA |
| 30.52M | 31.80M | 23.01M | -49.15M | -1.38M | 45.18M | Net Income Common Stockholders |
| 8.05M | 7.64M | -9.90M | -115.99M | 60.38M | 38.83M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 53.27M | 51.97M | 34.35M | 28.58M | 67.78M | 19.92M | Total Assets |
| 183.83M | 181.87M | 167.02M | 199.03M | 365.14M | 53.89M | Total Debt |
| 29.23M | 30.09M | 33.04M | 39.38M | 44.84M | 205.00K | Net Debt |
| -24.04M | -21.87M | -1.31M | 10.79M | -22.94M | -19.71M | Total Liabilities |
| 60.11M | 61.80M | 63.87M | 84.26M | 233.20M | 24.62M | Stockholders Equity |
| 48.47M | 36.08M | 16.38M | 13.38M | 63.56M | 29.27M |
| Cash Flow | Free Cash Flow | ||||
| 24.19M | 25.04M | 11.06M | -27.68M | 15.16M | 37.92M | Operating Cash Flow |
| 34.94M | 36.68M | 22.93M | -11.62M | 23.09M | 39.24M | Investing Cash Flow |
| -10.75M | -11.64M | -11.87M | -17.77M | -30.43M | -1.31M | Financing Cash Flow |
| -6.63M | -7.42M | -5.29M | -9.80M | 55.20M | -22.97M |
WM Technology Technical Analysis
Negative
1.02
Price Trends
1.10
Negative
1.20
Negative
1.14
Negative
Market Momentum
-0.02
Negative
41.51
Neutral
30.95
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 1.02 is below the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.10, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.51 is Neutral, neither overbought nor oversold. The STOCH value of 30.95 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 0 New Risks
WM Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $185.37M | 27.83 | 4.60% | ― | 11.28% | 41.56% | |
62 Neutral | $11.80B | 10.10 | -7.47% | 2.99% | 7.37% | -8.16% | |
60 Neutral | $157.46M | 12.66 | 23.24% | ― | 0.20% | ― | |
57 Neutral | $245.66M | ― | -33.75% | ― | 3.84% | -76.01% | |
51 Neutral | $166.46M | ― | -22.66% | ― | -25.43% | -135.09% | |
50 Neutral | $224.69M | ― | -24.47% | ― | -8.39% | 7.79% | |
42 Neutral | $186.80M | ― | 103.42% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
MAPS
WM Technology
1.02
-0.01
-0.97%
ONTF
ON24
5.29
-0.22
-3.99%
SMRT
SmartRent
0.88
-1.53
-63.49%
PERF
Perfect Corp
1.82
-0.03
-1.62%
LAW
CS Disco
4.04
-1.58
-28.11%
MRT
Marti Technologies
2.45
0.66
36.87%
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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.