Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| We think we do this better than most in our industry |
| Turning to outlook, we continue to be pleased with the progress we are making across three priority focus areas and are confident we are making the right strategic, operational, and financial decisions to set WM Technology up for the near-term and long-term |
| For the third quarter in a row, we beat expectations for revenue and adjusted EBITDA while generating positive cash flow |
| Relative to our Q3 guidance, upside in adjusted EBITDA was driven by a beat in our top line and continued efficiencies we are finding in the business across wage and non-wage |
| Our third-quarter performance beat our expectations on top-line growth and profitability |
| I'm very proud of how lean and focus our teams are operating |
| And we expect upside in this category for next year |
| While that process remains ongoing, I'm confident in the abilities of the existing leadership team, to keep moving the business forward and continue to execute |
| We generated positive cash flow and ended Q3 with $28 million in cash up from $25 million in cash in Q2 |
| We continue to work with clients in this soft macro environment, but we believe this will lead to a healthier client base in the long run |
| We remain committed to our previous guidance of double-digit adjusted EBITDA margin in fiscal year 2023 and generating positive cash flow for the year |
| To win all markets we need to have the best data served up with high affinity and within the framework of our cannabis that's sold in that state |
| We are working on major expansions to our product offering for brands and are excited about this category in 2024 |
| We have accomplished much in the last three quarters and installed operational philosophies that will carry us into the future |
| As it relates to non-wage expenses, we realized lower-than-expected marketing expenses relating to advertising and events, as well as favorable costs from outside vendors in our product development organization |
| I believe we did just that in the third quarter and demonstrated our teams continue to tune in with tight and more focused execution |
| We are focused on improving the product offering and coverage data within our brands platform |
| Our team broadly navigated the continued headwinds in our legacy markets while driving our growth in our target markets including MSOs |
| In addition to savings from headcount reductions, we also realized higher levels of capitalization within our product development organization that led to a decrease in wage expenses |
| We continue to be debt-free and are comfortable with our liquidity position |
| We continue to see productivity, across our organization with a quarterly decline in our adjusted sales and marketing and adjusted product development costs, by 16% and 17% respectively |
| For our clients, the industry and our shareholders we are hopeful that the powers that be figure this out soon |
| Finally, our bad debt expense of $1 million reflects the fourth consecutive quarter in which our bad debt has declined, which we believe is related to the policies and procedures we have implemented over the past few quarters |
| Our overall cash balance increased by $3 million and we ended the quarter with a cash balance of $28 million |
| Our industry moves fast and with the macroeconomic and industry changes over the past year, we believe we should narrow our focus and not overreach |
| With stricter enforcement of our collections policy, we have proactively removed clients in the platform after a period of non-payment |
| In our legacy markets, we are working hard to align with the companies that we feel will survive |
| The team is hard at work creating personalization and affinity with dynamic user interfaces that can solve for the best journey within a specific framework |
| Continuing with the concept of what we can control, I wanted to call out a few highlights and accomplishments to that end |
| Statement |
|---|
| Revenue per client was $2,938 in Q3 down 3% from Q2, driven by client churn and lower upgrade of activity in our more mature markets |
| We must continue to prudently plan for and spend against a realistic and responsible view of our topline and such we are planning for Q4 revenue to be $47 million, slightly down from this quarter as a result of anticipated continued and market headwinds |
| With that said, we are acutely aware of the well-known challenges still facing our industry and the lack of progress on multiple fronts including regulatory enforcement, state GMV, and license growth |
| Our average monthly paying clients of 5,414, was down about 3% from last quarter |
| As with last quarter while our teams continue to win new clients churn related to delivery clients and client-facing billing issues continued to persist particularly in California and Oklahoma |
| We had a net loss of $3 million, primarily due to one-time non-cash expenses related to the sun-setting of some of our non-core offerings |
| The massive headwinds continue and we were very active offering services to those who can pay |
| This was impacted by new clients onboarded at lower levels of spend in our emerging markets, continuing the trend that we described last quarter |
| Our adjusted G&A which includes a $1 million non-cash charge, related to provisions for doubtful accounts decreased by 24% versus last quarter |
| California represented 52% of our revenue in Q3, slightly down from 54% in Q2 |
| Q3 adjusted EBITDA of $11 million reflected an 8% reduction in adjusted OpEx from last quarter |
| Our GAAP OpEx, excluding cost of revenues and D&A, was $38 million in Q3, a reduction of 39% versus last year |
Please consider a small donation if you think this website provides you with relevant information