Leafly Holdings Inc (LFLY) 2022 Q4 法說會逐字稿

Good afternoon, and thank you for attending today's Leafly Fourth Quarter and Fiscal Year 2022 Earnings Call. My name is Jason, and I'll be the moderator for today's call. (Operator Instructions) I would now like to pass the conference over to our host, Keenan Zopf, with the Blueshirt Group. You may now begin.

下午好，感謝您參加今天的 Leafly 第四季度和 2022 財年收益電話會議。我叫 Jason，我將擔任今天電話會議的主持人。 （操作員說明）我現在想將會議轉交給我們的主持人 Keenan Zopf 和 Blueshirt Group。你現在可以開始了。

Good afternoon, and welcome to Leafly's Full Year and Fourth Quarter 2022 Earnings Call. Joining me on the call today are CEO, Yoko Miyashita; and CFO, Suresh Krishnaswamy. Today's prepared remarks have been recorded after which Yoko and Suresh will host live Q&A. A copy of our press release along with an accompanying earnings presentation can be found on our website at investor.leafly.com.

下午好，歡迎來到 Leafly 的全年和 2022 年第四季度收益電話會議。今天和我一起參加電話會議的有首席執行官 Yoko Miyashita；和首席財務官 Suresh Krishnaswamy。今天準備好的發言已經錄製完畢，之後 Yoko 和 Suresh 將主持現場問答。可以在我們的網站 investor.leafly.com 上找到我們的新聞稿副本以及隨附的收益演示文稿。

Today's call will contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding the services offered by Leafly, the markets in which Leafly operates, business strategies, performance metrics, industry environment, potential growth opportunities and Leafly's projected future results and financial outlook and can be identified by words such as expect, anticipate, intend, plan, believe, seek or will. These statements reflect our views as of today only, should not be relied upon as representing our views of any subsequent date, and we do not undertake any duty to update these statements.

今天的電話會議將包含前瞻性陳述，這些陳述是根據 1995 年《私人證券訴訟改革法案》的安全港條款作出的。前瞻性陳述包括有關 Leafly 提供的服務、Leafly 經營的市場、業務戰略的陳述、績效指標、行業環境、潛在增長機會以及 Leafly 預計的未來結果和財務前景，可以用諸如預期、預期、打算、計劃、相信、尋求或將要等詞語來識別。這些聲明僅反映我們截至今天的觀點，不應被視為代表我們在任何後續日期的觀點，我們不承擔更新這些聲明的任何義務。

Forward-looking statements, by their nature, address matters that are subject to risks and uncertainties that could cause actual results to differ materially from expectations, and we caution you not to place undue reliance on such statements. For a discussion of the material risks and other important factors that could affect our actual results, please refer to the risks discussed in today's press release, our annual Form 10-K filed with the SEC on March 31, 2022, and on Form 10-K/A filed on May 2 and December 2, 2022, and our other periodic filings with the SEC.

就其性質而言，前瞻性陳述涉及可能導致實際結果與預期存在重大差異的風險和不確定性，我們提醒您不要過分依賴此類陳述。有關可能影響我們實際結果的重大風險和其他重要因素的討論，請參閱今天的新聞稿、我們於 2022 年 3 月 31 日向美國證券交易委員會提交的年度 10-K 表格以及表格 10-中討論的風險K/A 於 2022 年 5 月 2 日和 12 月 2 日提交，以及我們向美國證券交易委員會提交的其他定期文件。

During the call, we will also discuss non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. A reconciliation of the GAAP and non-GAAP results is included in our earnings press release, which has been filed with the SEC and is also available on our website at investor.leafly.com.

在電話會議期間，我們還將討論非 GAAP 財務措施，這些措施不是根據公認會計原則編制的。 GAAP 和非 GAAP 結果的對賬包含在我們的收益新聞稿中，該新聞稿已提交給美國證券交易委員會，也可在我們的網站 investor.leafly.com 上查閱。

With that, let me turn the call over to Yoko.

有了這個，讓我把電話轉給洋子。

Good afternoon. Amidst macroeconomic and industry headwinds, we ended 2022 with meaningful progress against our key initiatives. We grew full year revenue 10% over 2021 in what overall has been a challenging environment with overall cannabis sales down 1% in the United States.

下午好。在宏觀經濟和行業逆風中，我們在 2022 年結束時在關鍵舉措方面取得了有意義的進展。我們的全年收入比 2021 年增長了 10%，總體而言，這是一個充滿挑戰的環境，美國的整體大麻銷售額下降了 1%。

Growth was primarily driven from retail revenue, which was $36.7 million, up 9.3% year-over-year. Revenue from brands was $10.6 million, up 12.9% year-over-year. Ending retail accounts were up nearly 10% in 2022. We saw a stabilization of MAU to an average of 8 million monthly active users.

增長主要來自零售收入，為 3670 萬美元，同比增長 9.3%。來自品牌的收入為 1060 萬美元，同比增長 12.9%。 2022 年期末零售賬戶增長近 10%。我們看到 MAU 穩定在平均每月 800 萬活躍用戶。

Brand spend, typically outside in the period between Thanksgiving and December holidays was more muted in 2022 than in previous years, and we continue to see softness in brand advertising spend.

與往年相比，2022 年品牌支出（通常在感恩節和 12 月假期期間的戶外支出）更加低迷，我們繼續看到品牌廣告支出疲軟。

We focused on driving more value to retailers in 2022, contributing to growth in the year were the launch of new products, including our new Delivery First shopping experience, prominent marquee ad units and improved functionality of our retailer platform and services.

我們專注於在 2022 年為零售商創造更多價值，為這一年的增長做出貢獻的是新產品的推出，包括我們新的 Delivery First 購物體驗、突出的字幕廣告單元以及我們零售商平台和服務的改進功能。

We also rolled out our enhanced bidding capabilities more broadly and our recent partnership with Uber Eats in Ontario has been successful with delivering an increase in orders to Toronto retailers by 254%. Most notably, the actions we took to control costs in 2022 delivered an improvement in our adjusted EBITDA loss.

我們還更廣泛地推出了增強的競價功能，我們最近與安大略省的 Uber Eats 建立了合作夥伴關係，成功地將多倫多零售商的訂單增加了 254%。最值得注意的是，我們在 2022 年採取的成本控制措施改善了調整後的 EBITDA 損失。

We delivered negative $23 million adjusted EBITDA for 2022, above our expectations. Much of this was done through a rightsizing of the business in October, meaningful cost-cutting initiatives and tight spending controls across the company.

我們在 2022 年實現了負 2300 萬美元的調整後 EBITDA，超出了我們的預期。其中大部分是通過 10 月份的業務精簡、有意義的成本削減舉措和整個公司的嚴格支出控制來實現的。

We continue to prudently manage expenses and protect cash and are implementing additional headcount reductions of approximately 40 positions expected to yield annual savings of $8 million beginning in Q2 as we continue to rationalize our cost base and be nimble in a difficult cannabis environment.

我們繼續審慎地管理開支和保護現金，並正在實施額外裁員約 40 個職位，預計從第二季度開始每年可節省 800 萬美元，因為我們繼續合理化我們的成本基礎並在艱難的大麻環境中保持靈活。

Most notably, we are adjusting our go-to-market strategy to ensure we are allocating resources to our highest value clients while maintaining our local approach and proven track record of bringing new retailers onto the platform. As market consolidation continues to accelerate, we are focused on building deeper relationships and increasing customer spend across Leafly's full suite of products and services.

最值得注意的是，我們正在調整我們的上市戰略，以確保我們將資源分配給我們最高價值的客戶，同時保持我們的本地方法和將新零售商引入平台的可靠記錄。隨著市場整合的持續加速，我們專注於在 Leafly 的全套產品和服務中建立更深層次的關係並增加客戶支出。

As has been the case for the past many months, our focus will continue to be on prioritizing projects and product enhancements that will result in the highest returns and maximizing cost efficiencies across the business. Our operational plan for 2023 builds on these priorities and we expect considerable improvement to adjusted EBITDA on an annual basis going forward. This plan also allows us to preserve capital as we seek an improved path to profitability.

與過去幾個月的情況一樣，我們的重點將繼續放在優先項目和產品改進上，這將帶來最高回報並最大限度地提高整個企業的成本效率。我們 2023 年的運營計劃建立在這些優先事項的基礎上，我們預計未來每年調整後的 EBITDA 都會有顯著改善。該計劃還使我們能夠在尋求改善盈利途徑時保留資本。

Despite headwinds, I want to highlight the continued success we've seen from our local market strategy to enter less penetrated markets at lower price points with a focus on upsell. Both New Mexico and Montana are great examples of this. These 2 recreational markets opened last year, new stores opened and our sales team focused on getting them subscribed to the platform and upselling them with our existing and new advertising products.

儘管有不利因素，但我想強調我們從本地市場戰略中看到的持續成功，即以較低的價格進入滲透率較低的市場，並專注於追加銷售。新墨西哥州和蒙大拿州都是很好的例子。這兩個娛樂市場去年開業，新店開業，我們的銷售團隊專注於讓他們訂閱該平台並使用我們現有的和新的廣告產品進行追加銷售。

This led our market penetration to reach 75% in both of these markets by the end of '22 from just over 50% at the start of the year as well as achieve increase in ARPA of greater than 50% in both markets. This playbook is one that we've replicated multiple times as new markets come online. We will continue to increase penetration in markets where we see the greatest growth opportunities, both in landing new retailers and through upsell, which we believe will drive ARPA up in the long term. In.

這導致我們在這兩個市場的市場滲透率從年初的略高於 50% 到 22 年底達到 75%，並在這兩個市場實現了 ARPA 超過 50% 的增長。隨著新市場的上線，我們已經多次復制這本劇本。我們將繼續提高在我們看到最大增長機會的市場中的滲透率，包括吸引新零售商和通過追加銷售，我們相信這將在長期內推動 ARPA 增長。在。

In the short to medium term, with many markets still underpenetrated, ARPU will vary market by market. As we look ahead to 2023, we continue to operate in a weak macroeconomic environment. and a challenging cannabis vertical. We expect the environment to be similar to what we saw exiting 2022 with growth muted and high variability from market to market.

在中短期內，由於許多市場仍未充分滲透，ARPU 將因市場而異。展望 2023 年，我們將繼續在疲軟的宏觀經濟環境中運營。和具有挑戰性的大麻垂直。我們預計環境將與我們在 2022 年看到的情況相似，增長緩慢且市場之間存在很大差異。

Cannabis prices are down, economics are difficult with some markets like Massachusetts, Oregon and Arizona seeing significant reductions in the wholesale price [flower]. These dynamics certainly have an impact on the retailers and brands who use our services. With this in mind, we continue to take a cautious and focused approach by managing the inputs we control, including cash flow and expenses and driving significant improvements towards profitability.

大麻價格下降，經濟困難，馬薩諸塞州、俄勒岡州和亞利桑那州等一些市場的批發價格 [花] 大幅下降。這些動態肯定會對使用我們服務的零售商和品牌產生影響。考慮到這一點，我們繼續採取謹慎和專注的方法，管理我們控制的投入，包括現金流和費用，並推動盈利能力的顯著改善。

Our approach for the new year is rooted in the successes we made in 2022, knowing that the product innovations we have brought to market over the last 18 months, along with the focus and discipline on our cost base have set us up to sustain ourselves through this turbulence and thrive once it subsides.

我們新的一年的方法植根於我們在 2022 年取得的成功，知道我們在過去 18 個月中推向市場的產品創新，以及對成本基礎的關注和紀律，使我們能夠通過這種動盪一旦平息就會蓬勃發展。

Despite some of these industry and economic challenges, consumer interest in cannabis is persistent and remains high with volumes of product orders holding steady. But consumers are looking for deals in value as we see them trading down to lower price point products. What does this mean for us? Targeted solutions for the cost-conscious consumer like price comparison and deal and discount discovery to connect them with the same quality products they seek for less.

儘管存在一些行業和經濟挑戰，但消費者對大麻的興趣持續存在，並且隨著產品訂單量保持穩定而保持高位。但消費者正在尋找有價值的交易，因為我們看到他們正在購買價格更低的產品。這對我們意味著什麼？為註重成本的消費者提供有針對性的解決方案，如價格比較、交易和折扣發現，將他們與他們尋求更少的相同質量產品聯繫起來。

We have a tremendously diverse set of products, more than 160,000 available on the platform today. This also provides us with an immense amount of data that we can share with our retail and brand customers to further establish trust and reinforce the value of our platform.

我們擁有極其多樣化的產品集，目前平台上有超過 160,000 種產品可供選擇。這也為我們提供了大量數據，我們可以與零售和品牌客戶共享這些數據，以進一步建立信任並增強我們平台的價值。

Part of servicing the consumer, is continuing to improve the consumer experience and increase retention, which is critical to our success. We're focused on a couple of different things in 2023. First, consumer enhancements. We're building off our proprietary data to drive better personalization, curation and effect-based shopping, which allows consumers to shop based on how they want to feel. We'll also focus on getting more deals to consumers to deliver what they're looking for in today's market, and that is value.

為消費者提供服務的一部分是繼續改善消費者體驗並提高保留率，這對我們的成功至關重要。我們在 2023 年專注於幾件不同的事情。首先，消費者的增強。我們正在構建我們的專有數據，以推動更好的個性化、策劃和基於效果的購物，讓消費者能夠根據他們想要的感受進行購物。我們還將專注於為消費者提供更多優惠，以提供他們在當今市場上尋找的東西，這就是價值。

In mobile apps, we've seen significant growth, and we continue to emphasize native more than 1 million downloads of the Leafly app occurred in 2022 and 18.5% increase year-over-year. Mobile is where our most engaged customers are. They search more. They shop more, and we have an easier path to retention and engagement. Our app creates a sticky closed-loop experience where we can more freely interact through notifications, offers and relevant content.

在移動應用程序中，我們看到了顯著增長，我們繼續強調 2022 年 Leafly 應用程序的原生下載量超過 100 萬次，同比增長 18.5%。移動設備是我們參與度最高的客戶所在的地方。他們搜索更多。他們購物更多，我們有更容易的途徑來保留和參與。我們的應用程序創造了一種粘性閉環體驗，我們可以通過通知、優惠和相關內容更自由地進行交互。

Orders on mobile saw tremendous growth, 384% year-over-year partially fueled by our Uber Eats partnership announced in October. This relationship is an extension of our strong belief that mobile is a critical component to our strategy. We are encouraged by early successes and continue to ramp up in Ontario. While still in its nascency, we think the Uber Eats partnership and our belief in a Delivery First shopping experience has tremendous opportunity as local markets embrace e-commerce and delivery.

移動端訂單出現了巨大增長，同比增長 384%，部分原因是我們在 10 月份宣布的 Uber Eats 優食合作夥伴關係。這種關係是我們堅信移動是我們戰略的關鍵組成部分這一信念的延伸。我們對早期的成功感到鼓舞，並繼續在安大略省發展壯大。雖然仍處於初期階段，但我們認為 Uber Eats 的合作夥伴關係和我們對交付至上購物體驗的信念具有巨大的機會，因為當地市場正在接受電子商務和交付。

We also believe that reducing friction for our retail and brand customers will continue to demonstrate our commitment to making working with Leafly as easy and beneficial as possible, creating efficiency and value for our partners. We're hearing from our customers more and more, that they want to understand how they can best leverage the Leafly platform to grow their business.

我們還相信，為我們的零售和品牌客戶減少摩擦將繼續表明我們致力於使與 Leafly 的合作盡可能簡單和有益，為我們的合作夥伴創造效率和價值。我們從越來越多的客戶那裡聽到，他們想了解如何最好地利用 Leafly 平台來發展他們的業務。

We have a lot of information and data and 2023 is about bringing that to life and making that data actionable for our customers and combining it with our expertise and know-how. Third-party integrations, which are critical for reducing friction for our retailers will benefit from a new and more robust ordering API. We'll improve ordering features with schedule-to-pickup windows, giving retailers greater control to manage their order flow. And to deliver for shoppers, we'll make it easier for retailers to create deals on Leafly and offer new deal types.

我們擁有大量信息和數據，而 2023 年就是要將這些信息和數據變為現實，並使這些數據對我們的客戶具有可操作性，並將其與我們的專業知識和專業知識相結合。第三方集成對於減少我們零售商的摩擦至關重要，它們將受益於一個新的、更強大的訂購 API。我們將通過計劃到取貨窗口改進訂購功能，讓零售商更好地控制他們的訂單流程。為了為購物者提供服務，我們將使零售商更容易在 Leafly 上創建交易並提供新的交易類型。

We will continue to innovate and improve on our ad products, including the extension of our marquee ad units into our mobile app, providing an increase in impressions on our most engaged platform. We will streamline the ad creation process through an improved ad builder, giving retailers and brands greater control.

我們將繼續創新和改進我們的廣告產品，包括將我們的字幕廣告單元擴展到我們的移動應用程序中，從而增加我們參與度最高的平台上的展示次數。我們將通過改進的廣告製作工具簡化廣告製作流程，為零售商和品牌提供更大的控制權。

Looking at 2023, we are seeking an improved path to profitability through sustainable revenue growth and cash conservation. We see opportunities to rationalize our sales and support cost base by offshoring some operational support tasks, while focusing our talent on higher-value activities such as in-market activations and building stronger relationships with our highest value customers.

展望 2023 年，我們正在尋求通過可持續的收入增長和現金保護來提高盈利能力的途徑。我們看到了通過離岸一些運營支持任務來合理化我們的銷售和支持成本基礎的機會，同時將我們的人才集中在更高價值的活動上，例如市場激活和與我們最高價值的客戶建立更牢固的關係。

We'll continue to manage this year through a conservative approach as we seek a path to profitability, preserving cash and targeting our resources against the key opportunities ahead. That's in places like Missouri, which just recently opened their rec market. They have approximately 200 stores in market that drove $100 million in sales of cannabis in its first month. We are in that market in front of licensees, bringing them on to our platform and activating ordering. At full penetration across Missouri, that's a sizable revenue opportunity just by using our current ARPA rates.

今年我們將繼續通過保守的方法進行管理，因為我們尋求盈利途徑，保留現金並將我們的資源用於未來的關鍵機會。這是在像密蘇里這樣的地方，最近剛剛開放了他們的娛樂市場。他們在市場上擁有大約 200 家商店，在第一個月推動了 1 億美元的大麻銷售額。我們在被許可人面前進入該市場，將他們帶到我們的平台並激活訂購。在整個密蘇里州的全面滲透中，僅使用我們當前的 ARPA 費率，這就是一個可觀的收入機會。

Cannabis with all of its regulatory hurdles and starts and pauses, is a long game. We're going to see, for the first time how cannabis performs in a down economy and what we see gives us reason for optimism. We're adjusting to give consumers what they're looking for, value, and providing retailer and brand clients with clearer and simpler paths to reach shoppers.

大麻及其所有監管障礙以及開始和暫停，是一場漫長的比賽。我們將首次看到大麻在經濟低迷中的表現，以及我們所看到的讓我們有理由保持樂觀。我們正在調整以向消費者提供他們正在尋找和重視的東西，並為零售商和品牌客戶提供更清晰、更簡單的途徑來接觸購物者。

We've positioned ourselves in the market to benefit as opportunities start to take hold. And we believe we're positioned well for the year ahead and set up for success when the market reaccelerates.

我們已將自己定位在市場中，以便隨著機會的到來而受益。我們相信我們為來年做好了準備，並在市場重新加速時為成功做好準備。

Now I'll turn it over to Suresh.

現在我將把它交給 Suresh。

Thank you, Yoko, and welcome, everyone. As Yoko discussed, we are operating in a difficult environment. We started to see a shift in our business in the second half of 2022 with ad budgets coming under increased scrutiny. This shift in the market impacted results and our sales growth slowed.

謝謝 Yoko，歡迎大家。正如 Yoko 所討論的，我們在困難的環境中運營。 2022 年下半年，我們開始看到我們的業務發生了變化，廣告預算受到越來越嚴格的審查。市場的這種轉變影響了業績，我們的銷售增長放緩。

Revenue in the fourth quarter was $12.1 million, essentially flat year-over-year. Breaking that down, revenue from retail was $9.5 million up 4% year-over-year. Revenue from brands was $2.7 million, down 12% year-over-year, reflecting the softening we started to see in the second half of last year.

第四季度收入為 1210 萬美元，同比基本持平。細分來看，零售收入為 950 萬美元，同比增長 4%。來自品牌的收入為 270 萬美元，同比下降 12%，反映出我們在去年下半年開始看到的疲軟。

I'll speak to our retail results first.

我先談談我們的零售業績。

During the fourth quarter, we continued to focus on growing our market share in both new and more established markets. Our success in this area led to ending retail accounts growth of 10% year-over-year. We had great spots with healthy account growth in Montana, New Mexico and California. We continue to see softness in the same markets we have called out previously, like Oklahoma and parts of Canada.

在第四季度，我們繼續專注於增加我們在新市場和更成熟市場的市場份額。我們在這一領域的成功導致零售賬戶同比增長 10%。我們在蒙大拿州、新墨西哥州和加利福尼亞州擁有健康的客戶增長點。我們繼續看到我們之前提到的相同市場疲軟，例如俄克拉荷馬州和加拿大部分地區。

Our retail ARPA in the fourth quarter was $554, a decline of 7% year-over-year and flat quarter-over-quarter. We expect to see continued pressure on ARPA this year. We're prioritizing growth of accounts in newer markets, and these come on at lower average ARPA. We also continue to see industry and market dynamics put pressure on how customers approach ad spend.

我們第四季度的零售 ARPA 為 554 美元，同比下降 7%，環比持平。我們預計今年 ARPA 將繼續面臨壓力。我們正在優先考慮新市場中的賬戶增長，而這些市場的平均 ARPA 較低。我們還繼續看到行業和市場動態對客戶處理廣告支出的方式施加壓力。

Turning to brands. On a sequential basis, revenue declined 3% compared to Q3. We started to see brands pulling back on advertising spend in the third quarter. Given the importance of the holiday and the historical seasonality in brand spend, we had anticipated an uptick for December. However, the typical boost in ad spend in the period after Thanksgiving did not materialize. Looking at Q1 activity, brand spend continues to be soft given the macro environment as brands are not activating at the same level as they were in 2022.

轉向品牌。按順序計算，收入與第三季度相比下降了 3%。我們開始看到品牌在第三季度縮減廣告支出。鑑於假期的重要性和品牌支出的歷史季節性，我們曾預計 12 月份會出現增長。然而，感恩節後廣告支出的典型增長並未實現。從第一季度的活動來看，鑑於宏觀環境，品牌支出繼續疲軟，因為品牌的活躍程度與 2022 年不同。

Now turning to gross margin. Total gross margin in the fourth quarter was 88%, in line with levels reported in the year ago quarter. Our team is focusing on cost management measures and optimizing resources. And as a result, we expect gross margin to remain at similar levels in 2023.

現在轉向毛利率。第四季度的總毛利率為 88%，與去年同期報告的水平一致。我們的團隊專注於成本管理措施和優化資源。因此，我們預計 2023 年毛利率將保持在類似水平。

Moving on to operating expenses. Our Q4 total operating expenses were $16.3 million, which was relatively flat compared to Q3. Today, we announced additional cost-cutting measures and a reduction in force. The measures we are taking will align our cost structure to reflect the current industry and macroeconomic environment while also focusing on our largest opportunities. We are reducing headcount by approximately 40 positions or 21% of the company's workforce and expect a onetime cash restructuring charge for the layoffs of approximately $700,000 in Q1 of this year. We expect total annual cash savings of approximately $8 million, with about half of that realized this year.

繼續經營費用。我們第四季度的總運營費用為 1630 萬美元，與第三季度相比持平。今天，我們宣布了額外的成本削減措施和裁員。我們正在採取的措施將調整我們的成本結構以反映當前的行業和宏觀經濟環境，同時也將重點放在我們最大的機會上。我們將裁員約 40 個職位，占公司員工總數的 21%，預計今年第一季度裁員的一次性現金重組費用約為 700,000 美元。我們預計每年可節省現金總額約 800 萬美元，其中約一半將在今年實現。

Moving forward, we will be intently focused on 3 priorities: one, aligning all of our resources around one common theme, building a stronger marketplace; two, supporting the areas of the business that will provide the greatest return from a near-term revenue perspective; and three, continuing to improve operating efficiency and preserving cash. Our team is laser focused on managing costs in order to extend our cash runway and stay on course to achieve profitability as we have outlined previously.

展望未來，我們將專注於 3 個優先事項：第一，圍繞一個共同主題調整我們所有的資源，建立更強大的市場；第二，支持從近期收入角度來看將提供最大回報的業務領域；三是持續提昇運營效率，保有現金。正如我們之前概述的那樣，我們的團隊非常專注於管理成本，以擴大我們的現金跑道並繼續實現盈利。

Now turning to the balance sheet. We ended the quarter with $24.6 million in cash. Our team has been diligent in managing our cash resources. We remain committed to prudently managing our capital our cost reduction starting last October are a testament to this. We will continue to operate with this disciplined approach and focus on improving efficiency.

現在轉向資產負債表。我們以 2460 萬美元的現金結束了本季度。我們的團隊一直在努力管理我們的現金資源。我們仍然致力於審慎管理我們的資本，我們從去年 10 月開始的成本削減就證明了這一點。我們將繼續以這種紀律嚴明的方式運作，並專注於提高效率。

In light of recent events, we wanted to inform investors that we do not have a banking relationship with SVB, Signature Bank or First Republic. We diversify our cash balances across several banking relationships to mitigate risk, and we are actively evaluating options to increase cash protection.

鑑於最近發生的事件，我們想告知投資者，我們與 SVB、Signature Bank 或 First Republic 沒有銀行業務關係。我們將現金餘額分散到多個銀行關係中以降低風險，並且我們正在積極評估增加現金保護的選項。

Now to our guidance. Given the challenging environment and the lack of visibility for the year, we have decided not to provide full year guidance at this time, and instead only provide quarterly guidance for the near term. For Q1 '23, we expect revenue of $11 million to $11.3 million and an adjusted EBITDA loss of negative $4.3 million to negative $4 million. We continue to focus on our path to profitability and are executing against our plans to achieve this in the next 24 months.

現在是我們的指導。鑑於充滿挑戰的環境和今年缺乏可見性，我們決定此時不提供全年指導，而只提供近期的季度指導。對於 23 年第一季度，我們預計收入為 1100 萬美元至 1130 萬美元，調整後的 EBITDA 虧損為負 430 萬美元至負 400 萬美元。我們繼續專注於我們的盈利之路，並正在執行我們在未來 24 個月內實現這一目標的計劃。

Over 2023, we expect our annual cash burn rate to be approximately $10 million and are targeting a meaningful improvement over 2022 in full year adjusted EBITDA loss. While external factors are impacting our growth rates, we're focusing on the things we can control and taking the opportunity to realign the business for greater efficiency. The changes that we announced today are designed to better serve our customers, deepen our relationships and help them navigate this challenging environment.

到 2023 年，我們預計我們的年度現金消耗率約為 1000 萬美元，目標是到 2022 年全年調整後的 EBITDA 損失有顯著改善。雖然外部因素正在影響我們的增長率，但我們正在專注於我們可以控制的事情，並藉此機會重新調整業務以提高效率。我們今天宣布的變化旨在更好地為我們的客戶服務，加深我們的關係，並幫助他們應對這個充滿挑戰的環境。

We'll now open up the call for questions. Operator?

我們現在將打開問題電話。操作員？

(Operator Instructions) Our first question is from Jason Helfstein with Oppenheimer.

（操作員說明）我們的第一個問題來自 Jason Helfstein 和 Oppenheimer。

So let's maybe help us think through this. So in some cases, one would argue that as there's weaker demand, advertisers or retailers would want to lean into advertising to try to capture a greater share of but lower demand. Do you think that there is like a price point at which your product, if you lower the prices, that starts to unlock that? Or is it really on the retailer side, we're just dealing with generally unsophisticated businesses and just when their demand is shrinking, they are willing to spend more? And I would assume that on a brand side, they're more sophisticated, but just talk about how you think you can ultimately drive more demand through your platform from a revenue standpoint?

因此，讓我們或許幫助我們思考一下。因此，在某些情況下，有人會爭辯說，由於需求疲軟，廣告商或零售商會希望依靠廣告來爭取更大份額但需求較低。您是否認為您的產品有一個價格點，如果您降低價格，就會開始解鎖它？或者真的是在零售商方面，我們只是在處理一般不成熟的業務，只是當他們的需求萎縮時，他們願意花更多錢？我假設在品牌方面，它們更加複雜，但只是談談您認為從收入的角度來看，您最終如何通過您的平台推動更多需求？

Let's break this up here between the brand side spend and the retail side. And as it relates to the brand advertising, where we see the greater softness, I think -- remember, that's not -- that's very much top of funnel brand spend. It's not the bottom of the funnel shopping type of spend where you can show that direct ROI.

讓我們在品牌端支出和零售端之間進行分解。當它與品牌廣告相關時，我們看到更大的軟性，我認為——記住，那不是——這是漏斗品牌支出的最高點。這不是您可以顯示直接投資回報率的漏斗購物類型支出的底部。

And I think as pressure on brands and MSO to carry brands to show a tighter path to profitability take over, you're just seeing that general pullback in brand spend. So I think you need to really differentiate between what's happening on the brand side of this business and the retail side.

而且我認為，隨著品牌和 MSO 承受品牌展示更嚴格的盈利途徑的壓力接管，你只是看到品牌支出普遍回落。因此，我認為您需要真正區分該業務的品牌方面和零售方面正在發生的事情。

So I do think there's a macro aspect to this, and price points, yes, have some sensitivity and can drive a little bit more of the demand. But I think what we just saw was that signaling from early on that they were pulling back on spend, they essentially sort of sat out the holiday season, slow start to '23 on that end. And at the same time, we're also seeing some of these brands come back into the market. So that's the brand side of things.

所以我確實認為這有一個宏觀方面，價格點，是的，有一些敏感性，可以推動更多的需求。但我認為我們剛剛看到的是，他們從一開始就發出信號，表明他們正在縮減開支，他們基本上是在假期裡閒逛，開局緩慢到 23 歲。同時，我們也看到其中一些品牌重新進入市場。這就是事物的品牌方面。

And I think on the retail side, slightly different dynamics because of the products and services we have to service that account base. And for them, it's all about showing the actual shopping and ordering activity, what I call that bottom funnel activity to justify that spend. And what we've heard consistently is when you can show that value to those retailers, they're willing to put more money into the channel.

我認為在零售方面，由於我們必須為該客戶群提供服務的產品和服務，動態略有不同。對於他們來說，這一切都是為了展示實際的購物和訂購活動，我稱之為底部漏斗活動以證明支出的合理性。我們一直聽到的是，當您可以向這些零售商展示這種價值時，他們願意在渠道中投入更多資金。

So how do you -- just to follow up how do you generate more retail demand if the macro environment stays weak?

那麼，如果宏觀環境保持疲軟，你如何 - 只是跟進如何產生更多的零售需求？

So remember, more retail demand looks like 2 things in this space. One is new licenses, new stores. And the other is increasing share of wallet with existing licensees. So we've talked at length about our land and expand, capturing the new licensees that come into market. We don't bank that simply because we don't control when licenses are issued.

所以請記住，在這個領域，更多的零售需求看起來像是兩件事。一是新牌照、新店面。另一個是增加與現有被許可人的錢包份額。因此，我們詳細討論了我們的土地和擴張，吸引了進入市場的新被許可人。我們不會僅僅因為我們無法控制許可證的頒發時間而存入銀行。

At the same time, what we do have control over is the deepening relationships with retailers, building that stronger partnership to show them ROI on the platform and also really working with them in that consultative capacity to show how we can make the platform work best for them.

與此同時，我們確實可以控制的是加深與零售商的關係，建立更牢固的合作夥伴關係以向他們展示平台上的投資回報率，並以諮詢身份真正與他們合作，以展示我們如何使平台最適合他們。

That's not just being on the platform with a subscription. It's about activating ordering. It's about activating deals, and it's about activating advertising as layers on to this to drive the kind of shopping behavior you want to see as a retailer.

這不僅僅是通過訂閱在平台上。這是關於激活訂購。它是關於激活交易，它是關於激活廣告作為在此之上的層，以推動您希望作為零售商看到的那種購物行為。

And that's -- like think about that, that's a consultative approach that's very hands on, which is what we're very excited to be focused on as we come into '23 and make adjustments to our go-to-market strategy.

那就是——想想看，這是一種非常實用的諮詢方法，這是我們在進入 23 年並調整我們的上市戰略時非常高興能夠關注的重點。

And then last question for me. Do you think the lack of enforcement around illegal dispensaries is having an impact on the business?

然後是我的最後一個問題。您認為對非法藥房缺乏執法是否會對業務產生影響？

I think as we recently published, there were 2 licensed stores in New York compared to the 1,200 unlicensed counted in a given week. So listen, this is all structural as we know, and I think what makes this space interesting isn't the fact that the consumer demand isn't there. It's all about shifting that consumer demand that already exists into the legal space.

我認為正如我們最近發布的那樣，紐約有 2 家獲得許可的商店，而在給定的一周內有 1,200 家未獲得許可的商店。所以聽著，正如我們所知，這都是結構性的，我認為讓這個空間變得有趣的不是消費者需求不存在的事實。這一切都是為了將已經存在的消費者需求轉移到法律領域。

And that's why the partnership, this push the influence we need to continue and the pressure we need to continue to put on regulators to issue licenses and open stores is so critical for the long-term success of this space.

這就是為什麼合作夥伴關係，這推動了我們需要繼續的影響力，以及我們需要繼續向監管機構施加壓力以頒發許可證和開設商店對於這個領域的長期成功至關重要。

Our next question comes from Vivien Azer with TD Cowen.

我們的下一個問題來自 TD Cowen 的 Vivien Azer。

So I wanted to start on the new incremental headcount reductions that you guys announced today, is certainly encouraging that you continue to challenge the organization to work more efficiently as you strive towards profitability. I was wondering, though, if you could offer some incremental color around where in the organization, which capabilities you're finding opportunities to find more operating leverage? Maybe we can start there.

所以我想從你們今天宣布的新的增量裁員開始，這肯定鼓勵你們在努力實現盈利的同時繼續挑戰組織以提高工作效率。不過，我想知道，如果您可以圍繞組織中的哪些地方提供一些增量顏色，您正在尋找哪些能力來找到更多的運營槓桿？也許我們可以從那裡開始。

Yes. Sure, Vivien. Today, we announced the 21% headcount reduction, right, to align our cost structure with the current environment. To put that in context, and we have been hyper-focused on costs and conserving cash since last year, right? And so the cost reductions today reflect about $8 million of annualized savings. And this is after the $16 million of annual savings from the reductions we announced back in October that we said would take effect in January.

是的。當然，薇薇安。今天，我們宣布裁員 21%，對吧，以使我們的成本結構與當前環境保持一致。綜上所述，自去年以來，我們一直高度關注成本和節約現金，對吧？因此，今天的成本降低反映了每年約 800 萬美元的節省。這是在我們於 10 月份宣布將在 1 月份生效的削減措施每年節省 1600 萬美元之後。

So taking into consideration all of these efforts plus additional OpEx cuts, we expect annual operating costs, excluding stock-based comp to be a little over 20% lower than last year. In this cost level, we can support a similar revenue base, and at the same time, be well positioned to take advantage of the growth opportunities as they emerge.

因此，考慮到所有這些努力以及額外的運營支出削減，我們預計年度運營成本（不包括基於庫存的成本）將比去年低 20% 以上。在這個成本水平上，我們可以支持類似的收入基礎，同時，可以很好地利用出現的增長機會。

So to give you a little bit more color on that, our OpEx structure really last year was about 40% each in sales and marketing and G&A. And with the cuts that we have announced, it's more like 30% in sales and marketing, 30% in PDE and 40% in G&A, of course, with all the numbers coming down.

所以為了給你更多的顏色，我們去年的 OpEx 結構實際上在銷售和營銷以及 G&A 中各佔 40%。隨著我們宣布的裁員，銷售和營銷更像是 30%，PDE 30%，G&A 40%，當然，所有數字都在下降。

So we have, as part of the sales restructure, really looked at how can we align our strategy with the environment that we're operating in, continue to focus on our local go-to-market strategy, but again, how can we do that with smaller, tighter, more efficient teams that can respond more quickly on the sales side and just align more closely with customers.

因此，作為銷售重組的一部分，我們真正研究瞭如何使我們的戰略與我們所處的環境保持一致，繼續專注於我們當地的上市戰略，但同樣，我們如何才能做到擁有更小、更緊密、更高效的團隊，可以在銷售方面更快地做出響應，並且更緊密地與客戶保持一致。

That's very helpful detail. And just a follow-up then on the sales realignment. Considering the challenging operating backdrop, does your field team have like different scorecard where they would evaluate current and potential new relationships? Obviously, there's a fixed cost to onboard new relationships, either brands or retail. So I'm just wondering if you're raising the bar at all there so that you're really maximizing the effort of that more efficient sales force.

這是非常有用的細節。然後只是關於銷售調整的後續行動。考慮到充滿挑戰的運營背景，您的現場團隊是否有不同的記分卡來評估當前和潛在的新關係？顯然，無論是品牌還是零售，建立新關係都有固定成本。所以我只是想知道您是否在提高標準，以便真正最大限度地發揮更高效的銷售人員的作用。

That's fun, Vivien, in terms of really thinking through, I'm talking about higher value clients, we're really looking at the segmentation and the opportunity set that exists with -- been existing as onboarding and onboarding new retailers. So just getting smarter and more judicious in how we leverage our resources as it relates to onboarding as it relates training, as it relates to client success is a key part of this strategy going forward.

這很有趣，Vivien，就真正思考而言，我說的是更高價值的客戶，我們真的在研究細分和存在的機會集——作為入職和入職新零售商而存在。因此，在我們如何利用與入職相關的資源、與培訓相關的資源、與客戶成功相關的資源方面變得更聰明、更明智，是該戰略向前發展的關鍵部分。

And we know based on the value we drive for retailers and brands, there's greater monetization opportunities. So how do we put those resources towards those opportunities as opposed to a more broad-based higher touch across many accounts approach.

我們知道，基於我們為零售商和品牌創造的價值，存在更大的貨幣化機會。那麼，我們如何將這些資源用於那些機會，而不是在許多客戶方法中進行更廣泛的更高接觸。

Our next question is from Eric Des Lauriers with Craig Hallum.

我們的下一個問題來自 Eric Des Lauriers 和 Craig Hallum。

I know one of the key benefits of your platform or subscriber base is that there is a sort of ongoing recurring payment to you guys that gives you some of that increased visibility. I'm just wondering if you could comment on the overall kind of stickiness of the accounts that you continue to have if you're starting to see any turnover perhaps in addition to some of the license or I guess lack of license renewals with some of these licenses kind of falling off. Just kind of speak to some of the potential changes in the stickiness of your customers as this macro environment has kind of gotten a little tougher for cannabis.

我知道你們的平台或訂閱者群的一個主要好處是，有一種持續不斷的定期付款給你們，這讓你們在一定程度上提高了知名度。我只是想知道，如果您開始看到任何營業額，也許除了一些許可證之外，您是否可以評論您繼續擁有的帳戶的整體粘性，或者我猜缺少一些許可證續訂這些許可證有點脫落。只是談談客戶粘性的一些潛在變化，因為這種宏觀環境對大麻來說有點艱難。

Yes, sure, Eric. I could start off with some numbers there. Overall, I mean, retail is about 78% of our total revenue. And of that total, over 80% is subscription-like revenue, right? So I mean, half of that is subscription. The other half are advertising units that we have a really good history on in terms of placements. They may change hands, but we have good visibility and confidence in that continuing.

是的，當然，埃里克。我可以從那裡的一些數字開始。總體而言，我的意思是，零售約占我們總收入的 78%。在這個總數中，超過 80% 是類似訂閱的收入，對吧？所以我的意思是，其中一半是訂閱。另一半是我們在展示位置方面擁有非常好的歷史的廣告單元。他們可能會易手，但我們對這種繼續下去有很好的知名度和信心。

And that really has led to sort of more predictability and stickiness on the retail side. And you kind of see that in the numbers, even though growth has slowed on the retail side in the numbers, we continue to see quarter-over-quarter increases and we're certainly projecting those increases this year as well.

這確實導致了零售方面的某種程度的可預測性和粘性。你可以從數字中看到，儘管零售方面的數字增長放緩，但我們繼續看到季度環比增長，我們當然預計今年也會出現增長。

The variability has been more on the brand side as we talked about. In the second half of last year, we saw the slowdown that has continued into the first quarter so far. That being said, just to give some color, it was mainly in January, I mean, from what we've seen so far in March, I mean February and March, things have seem to have stabilized.

正如我們所談到的，可變性更多地出現在品牌方面。去年下半年，我們看到經濟放緩一直持續到第一季度。話雖這麼說，只是為了給一些顏色，主要是在 1 月份，我的意思是，從我們目前在 3 月份看到的情況來看，我的意思是 2 月和 3 月，情況似乎已經穩定下來。

It's still very early to make any predictions on the brand revenue for the rest of the year, and that's one of the reasons we're not providing guidance. But in terms of just talking about the stickiness, we did see on the retail side, churn continue in the same markets that we kind of saw last year.

現在對今年剩餘時間的品牌收入做出任何預測還為時過早，這也是我們不提供指導的原因之一。但就粘性而言，我們確實在零售方面看到，我們去年看到的相同市場仍在繼續流失。

So we've called out Oklahoma we continue to see that. In terms of last year, we also saw Ontario, which had churn, especially in Q1 of last year. But it's interesting that since our partnership with Uber and the value that that's created for both our consumers and our retailers, we've seen little to no churn in Q1 this year in Ontario. So just wanted to give a little bit of color around that.

所以我們已經召集了俄克拉荷馬州，我們會繼續看到這一點。就去年而言，我們還看到安大略省出現了流失，尤其是在去年第一季度。但有趣的是，自從我們與 Uber 建立合作夥伴關係並為我們的消費者和零售商創造價值以來，我們在安大略省今年第一季度幾乎沒有看到客戶流失。所以只是想給它一些顏色。

There are no further questions. So I'll pass the call back over to the management team for closing remarks.

沒有其他問題了。所以我會把電話轉回給管理團隊，讓他們發表結束語。

Thanks, everyone. We look forward to speaking with you throughout the rest of the year and excited what lies ahead. Goodbye.

感謝大家。我們期待在今年餘下的時間裡與您交談，並對未來的發展感到興奮。再見。