maps-20231108
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 8, 2023


WM TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)


Delaware001-3902198-1605615
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

41 Discovery
Irvine, California
92618
(Address of principal executive offices)(Zip Code)
(844) 933-3627
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per share
MAPS
The Nasdaq Global Select Market
Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 per share
MAPSW
The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b–2 of the Securities Exchange Act of 1934 (§240.12b–2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02    Results of Operations and Financial Conditions
On November 8, 2023, WM Technology, Inc. (the "Company") announced its financial results for the third quarter ended September 30, 2023. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference.
The information in Item 2.02 and in the accompanying Exhibit 99.1 is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as expressly set forth by specific reference in such a filing.
Item 9.01    Financial Statements and Exhibits
(d) Exhibits
Exhibit NumberDescription
104Cover Page Interactive Data File (formatted in Inline XBRL and included as Exhibit 101)





SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: November 8, 2023
WM TECHNOLOGY, INC.
By:/s/ Mary Hoitt
Mary Hoitt
Interim Chief Financial Officer

Document

Exhibit 99.1
https://cdn.kscope.io/15278a733ebea4c4e479255634394b63-wmtlogoa.jpg


WM Technology, Inc. Reports Third Quarter 2023 Financial Results

Announces Third Quarter 2023 Financial Results with Revenue of $47.7 million, Net Loss of $2.5 million and
Adjusted EBITDA of $10.7 million


Irvine, Calif. -- November 8, 2023 -- WM Technology, Inc. (“WM Technology” or the “Company”) (Nasdaq: MAPS), a leading technology and software infrastructure provider to the cannabis industry, today announced its financial results for the third quarter ended September 30, 2023.

"We are pleased with our third quarter results as they reflect our commitment to operational efficiency in what continues to be constrained end markets," said Doug Francis, Executive Chair of WM Technology. "I am proud of our team for their continued focus and discipline, allowing us to drive a strong bottom line this quarter."
Third Quarter 2023 Financial Highlights

Revenue was $47.7 million as compared to $50.5 million in the third quarter of 2022 (“prior year period”).
Average monthly paying clients(1) was 5,414, as compared to 5,576 from the prior year period.
Average monthly revenue per paying client(2) was $2,938, as compared to $3,019 from the prior year period.
Net loss was $2.5 million as compared to net loss of $10.5 million from the prior year period.
Adjusted EBITDA(3) was $10.7 million as compared to $(9.6) million from the prior year period.
Basic and diluted net loss per share were both $0.02 based on 93.7 million of Class A Common Stock weighted average basic and diluted shares outstanding, respectively.
Total shares outstanding across Class A and Class V Common Stock were 149.4 million as of September 30, 2023.
Cash totaled $27.7 million as of September 30, 2023, with no debt.

Reconciliations of GAAP to non-GAAP financial measures have been provided in the tables included in this release.
______________________________

(1)Average monthly paying clients are defined as the average of the number of paying clients billed in a month across a particular period (and for which services were provided).
(2)Average monthly revenue per paying client is defined as the average monthly revenue for any particular period divided by the average monthly paying clients in the same respective period.
(3)For further information about how we calculate EBITDA and Adjusted EBITDA as well as limitations of their use and a reconciliation of EBITDA and Adjusted EBITDA to net income (loss), see “Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA” below.

Business Outlook
Based on information available as of November 8, 2023, WM Technology is issuing guidance for the fourth quarter of 2023 as follows:

Revenue is estimated to be $47 million.
Non-GAAP Adjusted EBITDA(1) is estimated to be approximately $5 million.

The guidance provided above is only an estimate of what we believe is realizable as of the date of this release. We are not readily able to provide a reconciliation of projected Non-GAAP Adjusted EBITDA to projected net income (loss) without



unreasonable effort. This guidance assumes that no business acquisitions, investments, restructurings, or legal settlements are concluded in the period. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements.” Actual results may vary from the guidance and the variations may be material. We undertake no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

Investor Call and Webcasts
The Company will host a conference call and webcast today, Wednesday, November 8, 2023, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) at https://edge.media-server.com/mmc/p/u6ey6dpj. A replay of the webcast will also be archived at ir.weedmaps.com.
The Company has used, and intends to continue to use, the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.


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About WM Technology
Founded in 2008, WM Technology operates the leading online cannabis marketplace for consumers together with a comprehensive set of eCommerce and compliance software solutions for cannabis businesses, which are sold to retailers and brands in the U.S. state-legal and Canadian cannabis markets. The Company is driven by a passion for the plant, and is on a mission to champion the truth and stand with all who believe in open access to cannabis.
The Company’s technology addresses the challenges facing both consumers seeking to understand cannabis products and businesses who serve cannabis users in a legally compliant fashion. Over the past 15 years, the Weedmaps marketplace has become the premier destination for cannabis consumers to discover and browse information regarding cannabis and cannabis products, permitting product discovery and order-ahead for pickup or delivery by participating retailers. Weedmaps for Business is a set of eCommerce-enablement tools designed to help retailers and brands get the best out of the Weedmaps consumer experience, create labor efficiencies and manage compliance needs.
WM Technology holds a strong belief in the power of cannabis and the importance of enabling safe, legal access to consumers worldwide. Since inception, WM Technology has worked tirelessly, not only to become the most comprehensive platform for consumers, but to build the software solutions that power businesses compliantly in the space, to advocate for legalization, social equity, and licensing in many jurisdictions, and to facilitate further learning through partnering with subject matter experts on providing detailed, accurate information about the plant.
Headquartered in Irvine, California, WM Technology supports remote work for all eligible employees. Visit us at www.weedmaps.com.
Forward-Looking Statements
This press release includes “forward-looking statements” regarding our future business expectations which involve risks and uncertainties. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial and performance metrics and projections of market opportunity and market share. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including the Company’s financial and business performance, including key business metrics and any underlying assumptions thereunder; market opportunity and the Company’s ability to acquire new clients and retain existing clients; expectations and timing related to commercial product launches; success of the Company’s go-to-market strategy; ability to scale its business and expand its offerings; the Company’s competitive advantages and growth strategies; the Company’s future capital requirements and sources and uses of cash; the Company’s ability to obtain funding for our future operations; the impact of the material weakness in our internal controls and our ability to remediate this material weakness on the timing we anticipate, or at all; the outcome of any known and unknown litigation and regulatory proceedings; changes in domestic and foreign business, market, financial, political and legal conditions; the effect of macroeconomic conditions, including but not limited to health crises like the COVID-19 pandemic, inflation, uncertain credit and global financial markets, recent and potential future disruptions in access to bank deposits or lending commitments due to bank failures and geopolitical events, including the military conflict between Russia and Ukraine or the recent state of war between Israel and Hamas and the related risk of a larger regional conflict; future global, regional or local economic and market conditions affecting the cannabis industry; the development, effects and enforcement of and changes to laws and regulations, including with respect to the cannabis industry; the Company’s ability to successfully capitalize on new and existing cannabis markets, including its ability to successfully monetize its solutions in those markets; the Company’s ability to manage future growth; the Company’s ability to effectively anticipate and address changes in the end-user market in the cannabis industry; the Company’s ability to develop new products and solutions, bring them to market in a timely manner, and make enhancements to its platform and the Company’s ability to maintain and grow its two-sided marketplace, including its ability to acquire and retain paying clients; the effects of competition on the Company’s future business; the Company’s success in retaining or recruiting, or changes required in, officers, key employees or directors; cyber-attacks and security vulnerabilities; the possibility that we may be adversely affected by other economic, business or competitive factors; the possibility that the Company may be adversely affected by other economic, business or competitive and those factors discussed in the Company’s 2022 Annual Report on Form 10-K filed with Securities and Exchange Commission (the “SEC”) on March 16, 2023 and subsequent Form 10-Qs or Form 8-Ks filed with the SEC. If any of these risks materialize or these assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company does not presently know or that the
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Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Use of Non-GAAP Financial Measures
Our financial statements, including net income (loss), are prepared in accordance with principles generally accepted in the United States of America (“GAAP”).
To provide investors with additional information regarding our financial results, we have disclosed EBITDA and Adjusted EBITDA, both of which are non-GAAP financial measures that we calculate as net income (loss) before interest, taxes and depreciation and amortization expense in the case of EBITDA and further adjusted to exclude stock-based compensation, change in fair value of warrant liability, transaction related bonus, legal settlements and other legal costs, discharge of holdback obligation related to prior acquisition, reduction in force, impairment of right-of-use asset and investment securities, transaction costs, change in tax receivable agreement liability and other non-cash, unusual and/or infrequent costs in the case of Adjusted EBITDA. Below we have provided a reconciliation of net loss (the most directly comparable GAAP financial measure) to EBITDA; and from EBITDA to Adjusted EBITDA.
We present EBITDA and Adjusted EBITDA because these metrics are a key measure used by our management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of investment capacity. Accordingly, we believe that EBITDA and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.
Each of EBITDA and Adjusted EBITDA has limitations as an analytical tool, and you should not consider any of these non-GAAP financial measures in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows:
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and
EBITDA and Adjusted EBITDA do not reflect tax payments that may represent a reduction in cash available to us.
Because of these limitations, you should consider EBITDA and Adjusted EBITDA alongside other financial performance measures, including net loss and our other GAAP results.

Definition of Key Operating and Financial Metrics
Average Monthly Revenue Per Paying Client: Average monthly revenue per paying client measures how much clients, for the period of measurement, are willing to pay us for our subscription and additional offerings and the efficiency of the bid-auction process for our featured listings placements. We calculate this metric by dividing the average monthly revenue for any particular period by the average monthly number of paying clients in the same respective period.
Average Monthly Paying Clients: We define average monthly paying clients as the monthly average of clients billed each month over a particular period (and for which services were provided).
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WM TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except for share data)
September 30, 2023December 31, 2022
Assets
Current assets
Cash$27,721 $28,583 
Accounts receivable, net12,314 17,438 
Prepaid expenses and other current assets6,894 8,962 
Total current assets46,929 54,983 
Property and equipment, net24,660 24,928 
Goodwill68,368 68,368 
Intangible assets, net2,646 10,339 
Right-of-use assets27,781 31,447 
Other assets8,310 8,970 
Total assets$178,694 $199,035 
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable and accrued expenses$17,731 $33,635 
Deferred revenue6,090 6,256 
Operating lease liabilities, current6,867 6,334 
Tax receivable agreement liability, current400 — 
Other current liabilities— 98 
Total current liabilities31,088 46,323 
Operating lease liabilities, non-current27,842 33,043 
Tax receivable agreement liability, non-current789 500 
Warrant liability2,870 2,090 
Other long-term liabilities1,323 2,302 
Total liabilities63,912 84,258 
Stockholders’ equity
Preferred Stock - $0.0001 par value; 75,000,000 shares authorized; no shares issued and outstanding at September 30, 2023 and December 31, 2022— — 
Class A Common Stock - $0.0001 par value; 1,500,000,000 shares authorized; 93,881,130 shares issued and outstanding at September 30, 2023 and 92,062,468 shares issued and outstanding at December 31, 2022
Class V Common Stock - $0.0001 par value; 500,000,000 shares authorized, 55,486,361 shares issued and outstanding at September 30, 2023 and December 31, 2022
Additional paid-in capital77,339 67,986 
Accumulated deficit(57,407)(54,620)
Total WM Technology, Inc. stockholders’ equity19,946 13,380 
Noncontrolling interests94,836 101,397 
Total stockholders’ equity114,782 114,777 
Total liabilities and stockholders’ equity$178,694 $199,035 
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WM TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for share data)

Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Net revenues$47,725 $50,500 $146,584 $166,246 
Operating expenses
Cost of revenues (exclusive of depreciation and amortization shown separately below)3,015 4,272 9,748 11,870 
Sales and marketing11,544 17,882 36,171 61,887 
Product development7,748 11,988 27,882 38,341 
General and administrative19,189 33,490 60,897 92,155 
Depreciation and amortization11,777 2,513 17,799 8,916 
Total operating expenses53,273 70,145 152,497 213,169 
Operating loss(5,548)(19,645)(5,913)(46,923)
Other income (expenses), net
Change in fair value of warrant liability(460)6,590 (780)20,605 
Change in tax receivable agreement liability(69)— (689)— 
Other income (expense)3,565 (50)2,884 (1,230)
Loss before income taxes(2,512)(13,105)(4,498)(27,548)
Benefit from income taxes— (2,641)— (5,699)
Net loss(2,512)(10,464)(4,498)(21,849)
Net loss attributable to noncontrolling interests(974)(5,300)(1,711)(14,484)
Net loss attributable to WM Technology, Inc.$(1,538)$(5,164)$(2,787)$(7,365)
Class A Common Stock:
Basic and diluted loss per share$(0.02)$(0.06)$(0.03)$(0.09)
Class A Common Stock:
Weighted average basic and diluted shares outstanding93,651,871 89,552,914 92,947,191 82,872,137 



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WM TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine Months Ended September 30,
20232022
Cash flows from operating activities
Net loss$(4,498)$(21,849)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization17,799 8,916 
Change in fair value of warrant liability780 (20,605)
Change in tax receivable agreement liability689 — 
Impairment of right-of-use asset and investment securities— 1,317 
Stock-based compensation10,389 17,250 
Deferred tax asset— (5,699)
Discharge of holdback obligation related to prior acquisition(3,705)— 
Provision for doubtful accounts4,862 14,867 
Changes in operating assets and liabilities:
Accounts receivable262 (13,125)
Prepaid expenses and other current assets2,419 5,222 
Other assets21 (263)
Accounts payable and accrued expenses(16,441)5,008 
Deferred revenue(167)(1,505)
Net cash provided by (used in) operating activities12,410 (10,466)
Cash flows from investing activities
Purchases of property and equipment(8,870)(13,135)
Cash paid for acquisitions, net of cash acquired— (713)
Cash paid for acquisition holdback— (1,000)
Net cash used in investing activities(8,870)(14,848)
Cash flows from financing activities
Repayments of insurance premium financing(1,450)(5,832)
Distributions(3,233)(2,448)
Proceeds from repayment of related party note286 — 
Taxes paid related to net share settlement of equity awards(5)(13)
Net cash used in financing activities(4,402)(8,293)
Net decrease in cash(862)(33,607)
Cash – beginning of period28,583 67,777 
Cash – end of period$27,721 $34,170 

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WM TECHNOLOGY, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(Unaudited)
(In thousands)

Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Net Loss$(2,512)$(10,464)$(4,498)$(21,849)
Benefit from income taxes— (2,641)— (5,699)
Depreciation and amortization expenses11,777 2,513 17,799 8,916 
Interest income(11)— (23)— 
EBITDA9,254 (10,592)13,278 (18,632)
Stock-based compensation2,297 1,639 10,389 17,250 
Change in fair value of warrant liability460 (6,590)780 (20,605)
Transaction related bonus (recovery) expense833 1,039 3,400 4,069 
Legal settlements and other legal costs1,470 2,148 3,003 3,212 
Discharge of holdback obligation related to prior acquisition(3,705)— (3,705)— 
Reduction in force (recovery) expense(7)1,960 194 1,960 
Impairment of right-of-use asset and investment securities— 766 — 1,317 
Transaction costs— — — 251 
Change in tax receivable agreement liability69 — 689 — 
Adjusted EBITDA$10,671 $(9,630)$28,028 $(11,178)
______________________________
(1)    Stock-based compensation expense is recorded in the following expense categories on the accompanying consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Sales and marketing$587 $956 $2,180 $4,839 
Product development944 1,065 3,226 3,993 
General and administrative766 (382)4,983 8,418 
Total stock-based compensation expense2,297 1,639 10,389 17,250 
Amount capitalized to software development365 337 959 1,266 
Total stock-based compensation cost$2,662 $1,976 $11,348 $18,516 



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WM TECHNOLOGY, INC. AND SUBSIDIARIES
SELECTED KEY OPERATING METRICS
(Unaudited)

Selected Key Operating Metrics

Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Average monthly paying clients5,414 5,576 5,555 5,380 
Average monthly revenue per paying client$2,938 $3,019 $2,932 $3,433 






























Contacts

Investor Relations:

investors@weedmaps.com

Media Contract:
press@weedmaps.com



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