Cannabis tech company Weedmaps posts $2 million profit after rough period

California-based WM Technology, which does business as cannabis advertising platform Weedmaps, reported a profit for its most recent quarter, signaling a potential turnaround for the technology company.

WM Technology reported a net income of nearly $2 million for the quarter ending June 30, according to a news release.

That’s compared with a net loss of $4 million in the previous quarter, Green Market Report noted.

For the second quarter of 2022, the company reported a net income of $19.8 million but finished the year with an overall net loss of $82.7 million.

The company attributed much of the losses to severance payments for significant layoffs in the fourth quarter.

Weedmaps’ number of average monthly paying clients is up slightly from 5,537 to 5,609, according to a news release.

But average monthly revenue per paying client is down to $3,022 from $3,509 for the same period the previous year.

As of June 30, the company has $24.6 million in cash and no debt.

“We continue to strengthen our financial position, and we’re seeing the strategic and operational changes we’ve implemented take hold, delivering increased value to our stakeholders which in turn will generate long-term, sustainable growth and profitability for WM Technology,” Executive Chair Doug Francis said in a statement.

Francis is leading the company after former Chief Executive Officer Chris Beals resigned last year.

Arden Lee resigned in July as chief financial officer at WM Technology.

The company trades on the Nasdaq as MAPS.

Source: https://mjbizdaily.com/cannabis-tech-company-weedmaps-posts-2-million-profit-after-rough-period/