WM Technology (MAPS) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenues were $45.9 million, down 5% year-over-year from $48.4 million, primarily due to lower client spend, product sunsets, and industry price deflation, but up 3% sequentially.

• Adjusted EBITDA was $10.1 million with a 22% margin, nearly flat year-over-year and exceeding expectations.

• Net income for Q2 2024 was $1.2 million, compared to $2.0 million in Q2 2023.

• Average monthly paying clients declined 10% year-over-year to 5,045, but average monthly net revenue per client increased to $3,033 from $2,878.

• Cash balance increased to $41.3 million as of June 30, 2024, up from $34.4 million at year-end 2023, with no debt.

Financial highlights

• Q2 net revenues declined $2.5 million year-over-year, mainly due to lower client spend and sunsetting of certain products, but increased 3% sequentially.

• Adjusted EBITDA margin remained stable at 22% compared to 21% in Q2 2023.

• Cash provided by operating activities was $20.1 million for the first half of 2024, up from $4.1 million in the prior year period.

• Cost of revenues and sales/marketing expenses fell 31% and 12% year-over-year, respectively.

• Total shares outstanding were 152.4 million as of June 30, 2024.

Outlook and guidance

• Q3 2024 net revenues are expected to be approximately $44 million.

• Q3 2024 Adjusted EBITDA is projected at approximately $7 million.

• Q3 cash flow will be impacted by one-time payments, including a potential $1.5 million SEC settlement.

• Guidance assumes no major acquisitions, investments, restructurings, or additional legal settlements.