Leafly Holdings Inc (LFLY) 2024 Q2 法說會逐字稿

Hello, and welcome to the Leafly Second Quarter 2024 earnings call. My name is Natasha, and I will be coordinating your call today.

您好，歡迎參加 Leafly 2024 年第二季財報電話會議。我叫娜塔莎，今天我將協調您的電話。

I now have the pleasure of handing you over to your host, Eileen (inaudible) to begin. Eileen, please go ahead.

現在我很榮幸將您交給主持人艾琳（聽不清楚）開始。艾琳，請繼續。

Good afternoon, and welcome to Leafly's Q2 2024 Earnings Call. Joining me on the call today are CEO, Yoko Miyashita and CFO, Suresh Krishnaswamy. In addition, Peter Lee, our President and Chief Operating Officer, is also joining us on the call today to assist with Q&A. Today's prepared remarks have been recorded. A copy of our press release can be found on our website at investor.leafly.com.

下午好，歡迎參加 Leafly 的 2024 年第二季財報電話會議。今天與我一起參加電話會議的還有執行長 Yoko Miyashita 和財務長 Suresh Krishnaswamy。此外，我們的總裁兼營運長 Peter Lee 今天也加入我們的電話會議，協助問答。今天準備好的發言已記錄下來。您可以在我們的網站 Investor.leafly.com 上找到我們的新聞稿副本。

Today's call will contain forward-looking statements, which are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995 as amended.

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》修訂版的安全港條款作出的。

Forward looking statements include statements regarding the services offered by Leafly, the markets in which we operate, business strategies, performance metrics, industry environment, potential growth opportunities, and lately it's projected future results and financial outlooks, excepted results from cost saving measures management objectives and initiatives undertaken to improve our liquidity and capitalization and can be identified by words such as expects, anticipate, Focus', intend, plan, believe, seek or will.

前瞻性陳述包括有關 Leafly 提供的服務、我們經營的市場、業務策略、績效指標、產業環境、潛在成長機會以及最近預測的未來績效和財務前景的陳述，但成本節約措施管理目標的結果除外為提高我們的流動性和資本化而採取的舉措，可以用「預期」、「預期」、「聚焦」、「打算」、「計劃」、「相信」、「尋求」或「意願」等詞語來識別。

These statements reflect our views as of today only, should not be relied upon as representing our views at any subsequent date, and we do not undertake any duty to update these statements. 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.

這些聲明僅反映我們今天的觀點，不應被視為代表我們在任何後續日期的觀點，並且我們不承擔更新這些聲明的任何責任。前瞻性陳述本質上涉及可能導致實際結果與預期有重大差異的風險和不確定性問題。

And we caution you not to place undue reliance on such statements. For a discussion of the material risks and other important factors it could affect our actual results. Please refer to the risks discussed in today's press release, our 2023 Annual Report on Form 10 K filed with the SEC on April first, 2024, and our other periodic filings with the SEC.

我們警告您不要過度依賴此類聲明。對於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 2024 年 4 月 1 日向 SEC 提交的 10 K 表 2023 年年度報告以及我們向 SEC 定期提交的其他文件中討論的風險。

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. We'll answer a few pre-submitted questions at the end of this call. And with that let me turn the call over to Yoko.

在電話會議期間，我們也將討論非公認會計準則財務指標，這些指標不符合公認會計原則。我們的獲利新聞稿中包含了 GAAP 和非 GAAP 業績的調節表，該新聞稿已向 SEC 備案，也可在我們的網站 Investor.leafly.com 上取得。我們將在本次電話會議結束時回答一些預先提交的問題。接下來讓我把電話轉給洋子。

Good afternoon. We remain steadfast in our commitment to enhancing operational efficiency on our path to profitability. And while there's still work to be done, we're making meaningful progress. We remain focused on delivering on our mission to help consumers discover the magic of cannabis.

午安.我們堅定不移地致力於提高營運效率，實現獲利。儘管仍有工作要做，但我們正在取得有意義的進展。我們仍然專注於履行我們的使命，幫助消費者發現大麻的魔力。

These efforts have concentrated on creating value at the intersection of consumers, brands and retailers by offering services and products to monetize the valuable connections created on the weekly platform, among these three groups.

這些努力集中在透過提供服務和產品，將每週平台上這三個群體之間建立的寶貴聯繫貨幣化，從而在消費者、品牌和零售商的交匯處創造價值。

In an era of liberalized access to cannabis, the need for lease, trusted voice and guidance has never been greater, and we remain invigorated by the opportunities to fill that need for the many billions on their journey of cannabis discovery.

在大麻自由化的時代，對租賃、可信聲音和指導的需求從未如此強烈，我們仍然對滿足數十億人大麻發現之旅的這一需求的機會感到振奮。

Our revenue in the second quarter was in line with guidance at $8.7 million. Our net loss was $1.3 million, and we finished with our adjusted EBITDA on cash well ahead of guidance, posting $483,000 in positive adjusted EBITDA this quarter, which reflects our continued focus on building a path to profitability even while revenue performance remains muted. This beat on adjusted EBITDA in the quarter was the result of our ongoing focus on collection efforts. We were pleased to secure recoveries against previously written off customers, who are making good on their outstanding balances and reactivating on our platform. We are reaching a level of general stability with respect to bad debt.

我們第二季的營收為 870 萬美元，符合預期。我們的淨虧損為130 萬美元，調整後的現金EBITDA 遠遠高於指引，本季調整後EBITDA 為正值483,000 美元，這反映出我們在營收表現依然疲軟的情況下繼續致力於建立獲利之路。本季調整後 EBITDA 的成長是我們持續關注收款工作的結果。我們很高興能夠收回先前註銷的客戶，他們正在償還未清餘額並在我們的平台上重新啟動。壞帳方面我們正在達到整體穩定的水平。

Payment delinquencies remain the largest segment of canceled customers, accounting for just under 40% of the monthly recurring revenue lost in the quarter. Inability to pay remains a symptom of our capital deprived industry and we have implemented stricter controls to keep customers current. We expect this pressure to continue until macro conditions improve. As account declines flatten, we are building a foundation from which we can grow back our retail account base, which sat at 3,595 retail accounts at the end of Q2. This marks a 6.4% reduction quarter over quarter and reflects a similar decline in our ending retail accounts from Q1 over Q4 2023.

拖欠付款仍然是取消客戶的最大部分，佔本季每月經常性收入損失的近 40%。無力支付仍然是我們資本匱乏產業的一個症狀，我們實施了更嚴格的控制措施以維持客戶的最新狀態。我們預計這種壓力將持續到宏觀狀況改善為止。隨著帳戶下降趨於平緩，我們正在建立一個基礎，以此來恢復我們的零售帳戶基礎，截至第二季末，零售帳戶數量為 3,595 個。這標誌著季度環比減少 6.4%，反映出我們的期末零售帳戶較 2023 年第四季相比也出現了類似的下降。

Looking now to our brands business, over the second quarter, we revamped our brand subscription offering, we introduced tiers to our offering to pay gate the most engagement driving features to our paying tiers Pro and basic while offering a free listing that creates incentives to upgrade to a paying tier. By pay gating the most important features, such as more prominent placement in our products marketplace, we've seen a significant shift of GMV to subscribing brands and early results, we will be monitoring and optimizing newness over the coming quarter.

現在看看我們的品牌業務，在第二季度，我們改進了我們的品牌訂閱服務，我們在我們的產品中引入了等級，以將最具參與度的驅動功能付費到我們的付費等級專業版和基本版，同時提供免費列表，以激勵升級到付費層。透過對最重要的功能進行付費控制，例如在我們的產品市場中更突出的位置，我們已經看到 GMV 向訂閱品牌和早期結果的重大轉變，我們將在下個季度監控和優化新事物。

This is the direct power of the lease fleet platform at play, and we can use these findings to prove the value of our platform in an effort to accelerate the sell-through of our updated brand subscription product. We have also used this product launch to test our one-to-many outbound lead generation efforts and are using learnings from this project to revisit our lead generation strategy for retailers.

這是租賃車隊平台發揮作用的直接力量，我們可以利用這些發現來證明我們平台的價值，以加快我們更新的品牌訂閱產品的銷售。我們也利用該產品的發布來測試我們的一對多外向潛在客戶開發工作，並利用從該專案中獲得的經驗教訓重新審視我們針對零售商的潛在客戶開發策略。

At Leafly, we've long been committed to helping individuals discover the power of the cannabis plant. Increasingly for many consumers, that means turning to hemp-derived cannabinoids to fill the supply gap created by State and federal legislative failure to legalize and regulate cannabis.

在 Leafly，我們長期以來致力於幫助個人發現大麻植物的力量。對許多消費者來說，這意味著越來越多地轉向大麻衍生的大麻素，以填補州和聯邦立法未能使大麻合法化和監管而造成的供應缺口。

From the introduction of popular hemp-derived CBD products following passage of the farm bill in 2018 to help drive Delta eight and increasingly drive Delta nine products, lately, it played a pivotal role in connecting brands and consumers looking for these products.

2018 年農業法案通過後，推出了流行的大麻衍生CBD 產品，以幫助推動Delta 8 和越來越多地推動Delta 9 產品，最近，它在連接品牌和尋找這些產品的消費者方面發揮了關鍵作用。

Since the start of the year, we have had very active dialogue with a number of hemp brands. While we are in the early stages of exploring this opportunity. We believe that hemp-based cannabinoids present another avenue for us to fulfill our mission to help connect consumers with the cannabis products that are right for them wherever they are located.

自今年年初以來，我們與許多大麻品牌進行了非常積極的對話。雖然我們正處於探索這一機會的早期階段。我們相信，以大麻為基礎的大麻素為我們履行我們的使命提供了另一條途徑，幫助消費者與適合他們的大麻產品聯繫起來，無論他們身在何處。

Now turning our attention to various states and provinces that are showing strong momentum within the markets. We are so excited to see the launch of Ohio's recreational program ahead of schedule this week. By 2030 annual legal adult use marijuana sales and Ohio could top $2.8 billion according to estimates from New Frontier data. We are bullish on the state's approach of creating a smooth transition for existing medical cultivators processors, testing labs and retailers, as we believe this will create a robust market that's not as challenged by competition from the illicit market that other states have experienced.

現在將我們的注意力轉向市場中表現出強勁勢頭的各州和省份。我們很高興看到俄亥俄州的娛樂項目本週提前啟動。根據 New Frontier 數據估計，到 2030 年，俄亥俄州成人合法使用大麻的年銷售額可能會突破 28 億美元。我們看好該州為現有醫療種植加工商、檢測實驗室和零售商創造平穩過渡的方法，因為我們相信這將創建一個強大的市場，不會像其他州那樣受到非法市場競爭的挑戰。

We are also very pleased to be able to offer our online ordering features to Ohio consumers, a service we were unable to offer under previous medical cannabis regulations. We also saw an expansion of the medical program in Washington, D.C. with the regulators there broadening the medical program to open access to licensees from the legacy cannabis gifting stores as well as allowing for consumers to self-certify to their qualifying medical conditions.

我們也很高興能夠向俄亥俄州消費者提供線上訂購功能，根據先前的醫用大麻法規，我們無法提供這項服務。我們還看到華盛頓特區的醫療計劃得到了擴展，那裡的監管機構擴大了醫療計劃，向傳統大麻禮品店的被許可人開放，並允許消費者自我證明其合格的醫療狀況。

This removes the need to obtain a doctor's recommendation to purchase from medical stores. Just last week, we expanded our partnership with Uber Eats into Alberta, Canada, delivering safe legal cannabis straight to people's homes, Albertans 18 and over can now place orders from local licensed cannabis retailers and Uber Eats app and have it delivered to their door by their retailers provincially certified staff.

這樣就無需獲得醫生的建議從醫療商店購買。就在上週，我們將與Uber Eats 的合作夥伴關係擴大到加拿大艾伯塔省，將安全的合法大麻直接送到人們的家中，18 歲及以上的艾伯塔人現在可以從當地授權的大麻零售商和Uber Eats 優食應用程式下訂單，並透過以下方式將其送貨上門：他們的零售商擁有省級認證的員工。

Finally, we remain cautiously optimistic about Florida ballot initiatives in the fall, along with awaiting the FDA's actions and rulemaking to formalize the rescheduling announcement made earlier this year. The need for educated consumers and a trusted source to inform cannabis purchasing decisions has never been greater, and we're enthused and optimistic about our ability to create value for all participants on the Leafly platform through premium content and connections between consumers and the local retailers in brands that serve them.

最後，我們對秋季佛羅裡達州的投票舉措保持謹慎樂觀，同時等待 FDA 的行動和規則制定，以正式確定今年稍早發布的重新安排公告。對受過教育的消費者和值得信賴的來源來告知大麻購買決策的需求從未如此強烈，我們對透過優質內容以及消費者與當地零售商之間的聯繫為Leafly 平台上的所有參與者創造價值的能力感到興奮和樂觀為他們服務的品牌。

I'll now turn it over to Suresh.

我現在將把它交給蘇雷什。

Thank you, Yoko, and welcome, everyone. In the second quarter, we reported revenue of $8.7 million, down 18.3% year-over-year and down 3.6% sequentially. Retail revenue in Q2 was $7.3 million and brand revenue was $1.4 million. The year-over-year decline in total revenue was primarily driven by the removal of nonpaying retail accounts from the platform over the last 12 months.

謝謝你，洋子，歡迎大家。第二季度，我們報告營收為 870 萬美元，年減 18.3%，季減 3.6%。第二季零售收入為 730 萬美元，品牌營收為 140 萬美元。總收入年減的主要原因是過去 12 個月從平台上刪除了非付費零售帳戶。

At the end of Q2, our ending retail accounts totaled 3,595, which was a sequential decline of 245 accounts compared to the end of the first quarter. The account declines were concentrated in a handful of markets with Florida, California and Oklahoma, accounting for about 40% of the decline in ending retail accounts.

截至第二季末，我們的期末零售帳戶總數為 3,595 個，較第一季末季減 245 個。帳戶下降集中在佛羅裡達州、加利福尼亞州和俄克拉荷馬州等少數市場，約佔期末零售帳戶下降的 40%。

It's important to note that the accounts that came off the platform during Q2 had a leveraged ARPA as that cohort remains under pressure. Based on what we're seeing so far in Q3, cancellations are lower, and we expect a decrease in ending retail accounts to moderate.

值得注意的是，第二季從平台上退出的帳戶具有槓桿 ARPA，因為該群體仍然面臨壓力。根據我們在第三季迄今所看到的情況，取消訂單量較低，我們預計最終零售帳戶的減少量將有所放緩。

As a result of lower ARPA accounts being removed from our site, our ARPA for the second quarter was $684, which was up 23% year-over-year and up about 1% sequentially.

由於較低的 ARPA 帳戶被從我們的網站上刪除，我們第二季度的 ARPA 為 684 美元，同比增長 23%，環比增長約 1%。

Brand revenue in the second quarter was $1.4 million, down 25% year-over-year but up from the $1.2 million reported in Q1. Our second quarter is typically a seasonally strong quarter for brand revenue due to the 420 holiday, and this year was no different. We saw brands investing in marketing during April in advance of 420. Following the holiday bump in spend, brands return to the spend levels we saw in Q1.

第二季品牌營收為 140 萬美元，年減 25%，但高於第一季報告的 120 萬美元。由於 420 假期，我們的第二季度通常是品牌收入季節性強勁的季度，今年也不例外。我們看到 4 月品牌在行銷方面的投資超過了 420 個。在假期支出激增之後，品牌回到了我們在第一季看到的支出水平。

Gross margin in the second quarter improved year-over-year to 89% compared to 88% in Q2 of '23.

第二季的毛利率年增至 89%，而 23 年第二季的毛利率為 88%。

Moving to operating expenses. In Q2, OpEx totaled $8.4 million, down 17.5% year-over-year. We continue to focus on keeping our costs in check and aligning to our revenue opportunities. Looking to Q3, we expect our OpEx excluding stock-based comp to be at similar levels to Q2.

轉向營運費用。第二季度，營運支出總計 840 萬美元，年減 17.5%。我們繼續專注於控製成本並適應我們的收入機會。展望第三季度，我們預計不包括股票的營運支出將與第二季度相似。

Our net loss in Q2 was $1.3 million, a modest improvement from the $1.4 million net loss reported in Q2 of '23. We are pleased to report that our adjusted EBITDA in Q2 was positive $483,000 compared to $80,000 reported in Q2 of '23.

我們第二季的淨虧損為 130 萬美元，比 2023 年第二季報告的 140 萬美元淨虧損略有改善。我們很高興地報告，第二季調整後的 EBITDA 為正 483,000 美元，而 2023 年第二季的報告為 80,000 美元。

As Yoko discussed, our success and recovery of bad debt expense contributed to the positive EBITDA in Q2. We continue to work towards building a long-term profitable business and leveraging our business model to achieve this.

正如 Yoko 所討論的，我們的成功和壞帳費用的回收為第二季的正 EBITDA 做出了貢獻。我們繼續致力於建立長期盈利的業務，並利用我們的商業模式來實現這一目標。

Before turning to the balance sheet, I want to highlight the progress we've made with our bad debt and collections. As we mentioned last quarter, we had been focused on improvements and saw the results of those efforts in Q2 with a net recovery in the quarter. Year-to-date, our bad debt expense as a percentage of revenue is 2.4% compared to the 6.5% average for the full year 2023.

在討論資產負債表之前，我想強調一下我們在壞帳和催收方面取得的進展。正如我們上季度提到的，我們一直專注於改進，並在第二季度看到了這些努力的成果，本季實現了淨復甦。今年迄今，我們的壞帳支出佔收入的比例為 2.4%，而 2023 年全年的平均比例為 6.5%。

Overall, our number of delinquent accounts continues to trend downwards. Based on what we're seeing so far in July, this trend has continued, and we plan to maintain these tighter processes to sustain and improve on this trend.

總體而言，我們的拖欠帳戶數量持續呈下降趨勢。根據我們 7 月迄今所看到的情況，這種趨勢仍在繼續，我們計劃維持這些更嚴格的流程，以維持和改善這一趨勢。

Now to the balance sheet. We ended the quarter with $13.6 million in cash, excluding restricted cash. We expect Q3 cash burn to come in just a little more than the $1.2 million interest payment on the convertible notes.

現在來看資產負債表。本季末，我們擁有 1,360 萬美元現金（不包括限制性現金）。我們預計第三季的現金消耗僅略高於可轉換票據的 120 萬美元利息支付。

In order to allow us flexibility around offering our common stock from time to time and giving us additional optionality in raising capital, in late June, we launched an at-the-market, or ATM, offering program. Since the end of the second quarter, we have raised a modest amount of capital in our ATM offering. Going forward, we will be opportunistic based on market conditions in our use of this facility.

為了讓我們能夠靈活地不時發行普通股，並在籌集資金方面給予我們額外的選擇權，6 月下旬，我們啟動了一項市場（ATM）發行計劃。自第二季末以來，我們在 ATM 發行中籌集了少量資金。展望未來，我們將根據市場情況靈活利用該設施。

We also continue to have conversations with our lender and our financial advisers regarding our outstanding $29.4 million convertible notes that are due in January of 2025. We don't have any further updates on this today but look forward to keeping you informed of this matter as appropriate.

我們也將繼續與貸款人和財務顧問就 2025 年 1 月到期的未償 2,940 萬美元可轉換票據進行對話。今天我們沒有關於此事的任何進一步更新，但期待在適當的時候向您通報此事。

Now to our guidance. For Q3 '24, we expect revenue of around $8.4 million and an adjusted EBITDA loss of less than $1 million. We have a number of projects and initiatives underway in both product development and sales strategy to stabilize revenues. We are seeing green shoots associated with these efforts, and we'll have more confidence as we see the results of these initiatives over the next few quarters. The team is focused on executing on these projects, and we look forward to updating you on our products.

現在請我們指導。對於 24 年第三季度，我們預計營收約為 840 萬美元，調整後 EBITDA 損失將低於 100 萬美元。我們在產品開發和銷售策略方面正在進行許多項目和舉措，以穩定收入。我們看到了與這些努力相關的萌芽，當我們在接下來的幾個季度看到這些舉措的結果時，我們將更有信心。團隊專注於執行這些項目，我們期待為您提供有關我們產品的最新資訊。

I'll now turn the call back to Yoko.

我現在將電話轉回給洋子。

Thank Suresh. As Eileen making Peter Lee, our President and Chief Operating Officer, is also joining us on the call today to assist with Q&A. Eilene will now move to the questions that we received prior to the call.

謝謝蘇雷什。正如 Eileen 所言，我們的總裁兼營運長 Peter Lee 也加入了我們今天的電話會議，協助進行問答。艾琳現在將討論我們在電話會議之前收到的問題。

First, we received this question, how is the second half of the year shaping up? When can you get back top line growth?

首先，我們收到這個問題，下半年情況如何？什麼時候才能恢復營收成長？

Thanks for the question, Eileen. We did provide guidance for revenue and adjusted EBITDA for Q3, and we're not providing guidance beyond that. What I can say is that the team is hard at work to stabilize both the account base and revenues as I said earlier, we're seeing green shoots associated with the new sales efforts and product enhancements. It's a high priority across the business, and we're working closely with customers, and we are encouraged by the responses to our efforts.

謝謝你的提問，艾琳。我們確實提供了第三季的收入指導和調整後的 EBITDA，但我們不會提供除此之外的指導。我能說的是，正如我之前所說，該團隊正在努力穩定客戶群和收入，我們看到了與新的銷售努力和產品增強相關的萌芽。這是整個企業的一個高度優先事項，我們正在與客戶密切合作，我們對我們的努力所得到的反應感到鼓舞。

Another question we received, which I'll have Peter answer is how many new accounts did you add in the second quarter?

我們收到的另一個問題是，您在第二季新增了多少個新帳戶？

Sure. The gross account adds in Q2 were similar to those in Q1. We continue to have net declines in retail accounts, and we believe our work over the past few quarters and delinquent accounts will help stabilize the account base in the upcoming quarters. As Suresh mentioned in his closing remarks, we're executing on new sales initiatives and strategies with the goal of winning new business and mitigating churn.

當然。第二季的總帳戶增加與第一季相似。我們的零售帳戶持續出現淨下降，我們相信我們過去幾季的工作和拖欠帳戶將有助於穩定未來幾季的帳戶基礎。正如蘇雷什在結論中提到的，我們正在執行新的銷售計劃和策略，目標是贏得新業務並減少客戶流失。

And the final question we received, which Yoko can address is can you provide an update on the status of your NASDAQ's next thing?

我們收到的最後一個問題，Yoko 可以解決的是，您能否提供納斯達克下一件事的最新狀態？

Thanks for the question. In late May. We submitted a proposed plan of compliance to NASDAQ, and we're continuing to work with them to provide them updates on our progress to regain compliance with the applicable listing standards in the meantime, our stock continues to be listed and traded on the NASDAQ capital markets, and we'll provide updates on this when we have more information to share.

謝謝你的提問。五月下旬。我們向納斯達克提交了擬議的合規計劃，我們將繼續與他們合作，向他們提供我們重新遵守適用上市標準的最新進展情況，同時，我們的股票繼續在納斯達克資本上市和交易市場，當我們有更多資訊可供分享時，我們將提供相關更新。

That's it for questions.

問題就這樣了。

Great. Thanks, Eileen. Thanks so much for your questions. I want to thank you all for your participation today and for your continued interest and Lee, please.

偉大的。謝謝，艾琳。非常感謝您的提問。我要感謝大家今天的參與和持續的關注，李先生。

Ladies and gentlemen, this concludes today's call. You may now disconnect your line.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開線路。