WM Technology Inc (MAPS) 2024 Q2 法說會逐字稿

Good afternoon, everyone, and welcome to WM Technology, Inc.'s second-quarter 2024 earnings conference call.

大家下午好，歡迎參加 WM Technology, Inc. 2024 年第二季財報電話會議。

I would now like to turn the call over to your host, [Simon Yao], Director of Investor Relations.

我現在想將電話轉給主持人投資者關係總監[Simon Yao]。

Hi, everyone. Thank you for joining our fiscal 2024 second-quarter results. We have our Executive Chair, Doug Francis; and our Interim CFO, Susan Echard, with us today. By now, everyone should have access to our earnings announcement and supporting slide deck on our Investor Relations website.

大家好。感謝您關注我們的 2024 財年第二季業績。我們的執行主席是 Doug Francis；我們的臨時財務長 Susan Echard 今天也與我們在一起。到目前為止，每個人都應該可以在我們的投資者關係網站上存取我們的收益公告和支援幻燈片。

During this call, we will make forward-looking statements about our business outlook, strategies and long-term goals. Keep in mind that forward-looking statements are not guarantees of future performance and are subject to a variety of risks and uncertainties, some of which are beyond our control. Our actual results could differ materially from expectations reflected in any forward-looking statements. For a discussion of risks and other important factors that could affect our actual results, please refer to our SEC filings available on our SEC website and our Investor Relations website, as well as the risks and other important factors discussed in today's earnings release. We specifically disclaim any intent or obligation to update these forward-looking statements, except as required by law.

在本次電話會議中，我們將就我們的業務前景、策略和長期目標做出前瞻性陳述。請記住，前瞻性陳述並不能保證未來業績，並且會受到各種風險和不確定性的影響，其中一些風險和不確定性是我們無法控制的。我們的實際結果可能與任何前瞻性陳述中反映的預期有重大差異。有關可能影響我們實際業績的風險和其他重要因素的討論，請參閱我們在 SEC 網站和投資者關係網站上提供的 SEC 文件，以及今天的收益報告中討論的風險和其他重要因素。我們特別聲明不承擔任何更新這些前瞻性陳述的意圖或義務，除非法律要求。

For the benefit of those who may be listening to the replay or archived webcast, this call was held on August 8, 2024. Since then, we may have made announcements related to the topics discussed, so please refer to the company's most recent press releases and SEC filings. We will also discuss non-GAAP financial measures alongside those prepared in accordance with GAAP. Non-GAAP financial measures should be considered in addition to, but not a substitute for, the information prepared in accordance with GAAP. You can find our reconciliation of these measures to our GAAP results in our earnings presentation on our Investor Relations website. And finally, today's call is being webcast from our Investor Relations website and the audio replay will be there soon.

為了那些可能正在收聽重播或存檔網路廣播的人的利益，本次電話會議於 2024 年 8 月 8 日舉行。此後，我們可能發布了與所討論主題相關的公告，因此請參閱公司最新的新聞稿和 SEC 文件。我們還將討論非公認會計準則財務措施以及根據公認會計準則制定的財務措施。除了按照 GAAP 準備的資訊之外，還應考慮非 GAAP 財務指標，但不能取代這些資訊。您可以在我們的投資者關係網站上的收益演示中找到我們對這些措施與公認會計原則結果的調節。最後，今天的電話會議將透過我們的投資者關係網站進行網路直播，音訊重播很快就會出現。

With that, I will now turn it over to Doug.

有了這個，我現在將把它交給道格。

Thanks, [Simon], and hello to everyone joining us today. Before we get started, I'd like to introduce and welcome Susan Echard, our Interim CFO, who has been with us since the beginning of March. Susan brings a wealth of financial leadership experience and has been a key partner in getting us to where we are today. We're glad to have her on the team.

謝謝，[西蒙]，今天加入我們的大家大家好。在我們開始之前，我想介紹並歡迎我們的臨時財務長蘇珊·埃查德 (Susan Echard)，她自三月初以來一直在我們這裡工作。蘇珊帶來了豐富的財務領導經驗，並且是我們取得今天成就的關鍵合作夥伴。我們很高興她加入團隊。

I would also like to thank Duncan Grazer for the many years he has been with us, most recently as our CTO, leading us through a period of tech transition in the last 1.5 years. We have begun our search for a new CTO and I am pleased that Duncan will continue to provide support as an adviser during this transition. The cannabis industry continues to be dynamic as we have witnessed in the first half of this year. On a federal level, we are hopeful, as an industry, that the recommendation of the DOJ, HHS, and DEA to reschedule cannabis as a Schedule III drug moves forward, but we are realistic about the possibility that the nuance of the ultimate rule may not be what we need to support the industry and that it may be blocked altogether, which have been the fate of many of the other promises of government reform for our industry.

我還要感謝 Duncan Grazer 多年來與我們在一起，最近擔任我們的首席技術官，帶領我們度過了過去 1.5 年的技術轉型期。我們已經開始尋找新的技術官，我很高興鄧肯將在過渡期間繼續作為顧問提供支援。正如我們在今年上半年所看到的那樣，大麻產業繼續充滿活力。在聯邦層面，作為一個行業，我們希望司法部、衛生與公眾服務部和緝毒署將大麻重新列為附表III 藥物的建議能夠取得進展，但我們對最終規則的細微差別可能會產生現實的可能性持現實態度。

There has also been a lot of activity in the rapidly growing intoxicating hemp market. So far, we have largely stayed out of this market segment because we view it as an accident of poor drafting in the Farm Bill and expected the federal government to close this loophole before now. But if that does not happen, we will work to find a way to provide our consumers access to this market in the safest way possible while continuing our support of the licensed cannabis operators and markets. Weedmaps has long been a strong and vocal proponent of sensible cannabis regulation, which we believe results in not just a better functioning industry, but also safer products to the consumer and a more stable sales revenue base that ultimately leads to more tax revenue for the state.

快速成長的醉人大麻市場也有很多活動。到目前為止，我們基本上沒有涉足這個市場領域，因為我們認為這是《農業法案》起草不當的意外事件，並期望聯邦政府在此之前堵住這個漏洞。但如果這種情況沒有發生，我們將努力尋找一種方法，以盡可能安全的方式為我們的消費者提供進入這個市場的機會，同時繼續支持獲得許可的大麻運營商和市場。Weedmaps 長期以來一直是明智的大麻監管的堅定和直言不諱的支持者，我們相信這不僅會帶來更好的行業運作，而且還會為消費者帶來更安全的產品和更穩定的銷售收入基礎，最終為國家帶來更多稅收。

Treat cannabis like wine, not plutonium, and let the industry grow instead of taxing and regulating it into oblivion. As always, we will continue to support and navigate for our clients and consumers. Turning to our performance. I am proud of our team's accomplishments over the first half of the year. We have continued to just take the same approach and mentality that I instilled since returning to leadership team of Weedmaps, and that is to focus on what we can control and win where we need to win while playing the long game and setting our business up for success as the industry evolves. This is evidenced by our Q2 results with revenues of $45.9 million, adjusted EBITDA of $10.1 million and ending cash of $41.3 million.

像對待酒精一樣對待大麻，而不是鈽，讓這個行業發展，而不是對其徵稅和監管，使其被遺忘。一如既往，我們將繼續為我們的客戶和消費者提供支援和指導。轉向我們的表現。我對我們團隊今年上半年的成就感到自豪。自從回到 Weedmaps 領導團隊以來，我們繼續採取我所灌輸的相同方法和心態，那就是專注於我們可以控制和贏得我們需要贏得的東西，同時打持久戰並為我們的業務做好準備隨著行業的發展而取得成功。我們第二季的業績證明了這一點，營收為 4,590 萬美元，調整後 EBITDA 為 1,010 萬美元，期末現金為 4,130 萬美元。

Susan will touch more on our financial results later, but I am pleased that we were able to report another quarter of strong financial results, further solidifying our financial position and runway. I want to stress how much of a competitive advantage it is to continue building our balance sheet. This is not the time for heroes and risk, so aggressive moves for speculative growth are unwise. We have identified areas for organic and natural growth that we believe we can get after in the near term and into 2025. Continuing to drop cash to the bottom line is somewhat a rare ability in our industry, is what matters until the industry and its markets mature.

蘇珊稍後將更多地談到我們的財務業績，但我很高興我們能夠報告另一個季度的強勁財務業績，進一步鞏固了我們的財務狀況和跑道。我想強調繼續建立我們的資產負債表有多大的競爭優勢。現在不是英雄和風險的時代，因此為投機性增長而採取的激進舉措是不明智的。我們已經確定了有機和自然成長的領域，我們相信我們可以在短期內和 2025 年實現這些領域。在我們的行業中，持續將現金降至底線是一種罕見的能力，在行業及其市場成熟之前，這一點至關重要。

That said, growth is not where it needs to be even in this environment, so we must do better. We have plenty of bright spots, but they are typically offset by the headwinds in challenged markets. Next quarter, we will speak to some of the new initiatives underway that we believe will allow us to get back to meaningful growth in 2025.

也就是說，即使在這種環境下，成長也達不到應有的水平，因此我們必須做得更好。我們有很多亮點，但它們通常會被充滿挑戰的市場中的逆風所抵消。下個季度，我們將討論一些正在進行的新舉措，我們相信這些舉措將使我們能夠在 2025 年恢復有意義的成長。

Before I turn it over to Susan, I want to thank our team for their hard work so far this year. Operationally, we have improved each quarter, and I feel great about our team's absolute focus around the first principles that define what success means to us. I've enjoyed being in the trenches with this group, tackling the problems that we face internally and as an industry. As a team, we are excited about the updates we are making to our product road map and we'll talk more about that next quarter.

在將其交給 Susan 之前，我要感謝我們的團隊今年迄今為止的辛勤工作。在營運方面，我們每個季度都取得了進步，我對我們團隊絕對專注於定義成功對我們意味著什麼的首要原則感到高興。我很高興與這個團隊一起奮戰，解決我們內部和整個產業面臨的問題。作為一個團隊，我們對產品路線圖的更新感到興奮，我們將在下個季度對此進行更多討論。

With that, I will turn it over to Susan.

這樣，我就把它交給蘇珊。

Thanks, Doug. Over the last few months, I've had the opportunity to work closely with Doug and the talented Weedmaps teams to gain a deep understanding of our company and the cannabis industry. I'm impressed by the strong foundation that has been built and the potential that lies ahead. We've accomplished a lot over the past several months, and I'm committed to supporting our initiatives as we continue to drive the company forward.

謝謝，道格。在過去的幾個月裡，我有機會與 Doug 和才華橫溢的 Weedmaps 團隊密切合作，深入了解我們公司和大麻產業。已經建立的堅實基礎和未來的潛力給我留下了深刻的印象。在過去的幾個月裡，我們取得了許多成就，我致力於支持我們的舉措，並繼續推動公司向前發展。

Turning to our financial results. Weedmaps finished the second quarter with $45.9 million in net revenues, which represents a $2.5 million or 5% decline when compared to the same period last year. This decrease was driven by lower spend on our featured and [delistings] product as our clients continued to face constrained marketing budgets, and in part, due to the impact on revenue from certain products we sunset in Q4 of last year.

轉向我們的財務表現。Weedmaps 第二季淨收入為 4,590 萬美元，與去年同期相比下降了 250 萬美元，即 5%。這一下降是由於我們的客戶繼續面臨行銷預算有限，導致我們的特色和[下架]產品支出減少，部分原因是我們在去年第四季取消的某些產品對收入的影響。

On a sequential basis, net revenues were up 3% over Q1, driven by increased client spend related to promotional activity associated with the industry's 420 holiday. Q2 average monthly paying clients of 5,045 declined about 10% when compared to the prior year period. This decline reflects the removal of paying clients from our platform who've become delinquent, the client count impact related to the products we sunset at the end of last year as well as expected client churn due to continued industry challenges such as price deflation and the ongoing consolidation in our industry.

環比來看，淨收入比第一季成長了 3%，這得益於與行業 420 假期相關的促銷活動相關的客戶支出增加。第二季平均每月付費客戶數為 5,045 名，較去年同期下降約 10%。這一下降反映了我們平台上已拖欠的付費客戶的移除、與我們去年年底淘汰的產品相關的客戶數量影響，以及由於持續的行業挑戰（例如價格通貨緊縮和我們行業的持續整合。

As a result of the lower average monthly paying client count, the average monthly net revenue per paying client in Q2 increased 5% to 3,033 when compared to the prior year period since the clients using the aforementioned sunset products and the clients churned typically had a lower average selling price and monthly net revenue.

由於平均每月付費客戶數量減少，第二季度每位付費客戶的平均每月淨收入與去年同期相比增長了5%，達到3,033 名，因為使用上述日落產品的客戶和流失的客戶通常較低。

Turning to our expenses. Cost of revenues and sales and marketing expenses declined 31% and 12%, respectively, versus the prior year and were a result of eliminated costs associated with our discontinued products in addition to decreased wage expenses related to lower head count. These reduced costs, however, were offset primarily by an increase in general and administrative expenses due to elevated legal and audit services related to our SEC filings in May. Also secondarily, we saw marginal increases across product development and depreciation and amortization.

轉向我們的開支。與前一年相比，收入成本以及銷售和行銷費用分別下降了 31% 和 12%，這是由於消除了與我們停產產品相關的成本以及與人員數量減少相關的工資費用減少所致。然而，這些成本的降低主要被一般和管理費用的增加所抵消，這是由於與我們 5 月向 SEC 提交的文件相關的法律和審計服務增加所致。其次，我們看到產品開發以及折舊和攤提的邊際成長。

Net income for the quarter came in at $1.2 million, which was slightly down from $2 million in Q2 of last year. Our Q2 adjusted EBITDA of $10.1 million and adjusted EBITDA margin of 22% beat our expectations and demonstrates the operational discipline we continue to maintain throughout the organization. Relative to our Q2 guidance, upside in adjusted EBITDA was the result of better-than-expected revenue as well as lower-than-expected provision for credit losses, which reflects our team's efforts and focus on AR and collections. We generated $5.5 million in cash in the quarter and closed with $41.3 million in cash, and we remain debt free. We continue to maintain a strong liquidity position and positive cash flow, and we are well positioned as we move into Q3.

該季度淨利潤為 120 萬美元，略低於去年第二季的 200 萬美元。第二季調整後 EBITDA 為 1,010 萬美元，調整後 EBITDA 利潤率為 22%，超出了我們的預期，體現了我們在整個組織中繼續維持的營運紀律。相對於我們第二季度的指導，調整後 EBITDA 的上升是由於收入好於預期以及信貸損失準備金低於預期的結果，這反映了我們團隊對 AR 和催收的努力和關注。本季我們產生了 550 萬美元現金，最終現金為 4,130 萬美元，我們仍然沒有債務。我們繼續保持強勁的流動性部位和正現金流，並且在進入第三季時我們處於有利地位。

We do expect Q3 cash flow to be impacted by certain onetime payments such as the potential SEC settlement, as described in our 8-K at the end of July. Our share count across our Class A and V common stock was 152 million as of August 4, 2024. A reconciliation of non-GAAP metrics to their nearest GAAP results as well as the details of our share classes and share count calculation are provided in our earnings presentation posted on our Investor Relations website.

我們確實預計第三季現金流將受到某些一次性付款的影響，例如潛在的 SEC 和解，正如我們在 7 月底的 8-K 中所述。截至 2024 年 8 月 4 日，我們的 A 類和 V 類普通股數量為 1.52 億股。我們的投資者關係網站上發布的收益演示中提供了非公認會計原則指標與其最接近的公認會計原則結果的調節，以及我們的股票類別和股票數量計算的詳細信息。

Now turning to our Q3 outlook. While we are encouraged by some positive trends and our team's progress in developing markets, we do anticipate some fluctuations in our results due to seasonality, and therefore, expect Q3 net revenues to be approximately $44 million and Q3 adjusted EBITDA to be approximately $7 million.

現在轉向我們的第三季展望。雖然我們對發展中市場的一些積極趨勢和團隊取得的進展感到鼓舞，但我們確實預計由於季節性因素，我們的業績會出現一些波動，因此，預計第三季度淨收入約為4400 萬美元，第三季調整後EBITDA 約700 萬美元。

With that, I'll now turn the call back over to the operator to conclude our call.

這樣，我現在將把呼叫轉回接線員以結束我們的呼叫。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。