Breaking Down WM Technology, Inc. (MAPS) Financial Health: Key Insights for Investors

Are you keeping a close watch on WM Technology, Inc. (MAPS) and trying to decipher its financial performance? With the company reporting a revenue of $47.7 million for the fourth quarter of 2024 and a full-year revenue of $184.5 million, it's crucial to understand the story behind the numbers. Did you know that WM Technology achieved a net income of $12.2 million for the full year, a significant turnaround from a net loss of $15.7 million in 2023? How did strategic pricing changes and operational discipline contribute to an adjusted EBITDA of $42.9 million? Dive in to explore these key insights and more, helping you make informed decisions about MAPS.

WM Technology, Inc. (MAPS) Revenue Analysis

Understanding WM Technology, Inc.'s (MAPS) financial health requires a detailed look into its revenue streams. A breakdown of where the company's revenue comes from, how quickly it's growing, and the impact of different business areas is essential for investors.

For the fiscal year 2024, WM Technology, Inc. (MAPS) reported revenue of $218.1 million. The gross profit was $174.8 million, representing a gross margin of 80.1%. This indicates a strong ability to control the costs associated with generating revenue.

Here's a closer look at some key aspects of WM Technology, Inc.'s (MAPS) revenue:

• Primary Revenue Sources: The company generates revenue primarily through its software solutions and marketplace for cannabis businesses and consumers.
• Year-over-Year Revenue Growth: In 2024, WM Technology, Inc. (MAPS) experienced a revenue increase of 7% compared to the previous year.
• Contribution of Business Segments: The company's core software and marketplace solutions are the primary drivers of revenue, with ancillary services contributing a smaller portion.

To provide more context, here's a summary of WM Technology, Inc.'s (MAPS) financial performance metrics:

Analyzing these figures helps to understand the financial trajectory and operational efficiency of WM Technology, Inc. (MAPS).

To gain further insights into the foundational principles guiding WM Technology, Inc. (MAPS), explore: Mission Statement, Vision, & Core Values of WM Technology, Inc. (MAPS).

WM Technology, Inc. (MAPS) Profitability Metrics

Assessing the profitability of WM Technology, Inc. (MAPS) involves examining several key financial metrics. These metrics provide insights into the company's ability to generate profit from its revenue and manage its operational costs effectively. The following analysis delves into gross profit, operating profit, and net profit margins, alongside trends and comparisons with industry averages.

As of the fiscal year 2024, WM Technology, Inc. (MAPS) showcases the following profitability metrics:

• Gross Profit: Gross profit is the profit a company makes after deducting the costs associated with producing and selling its goods or services.
• Operating Profit: Operating profit is a profit from business operations before deduction of interest and taxes.
• Net Profit Margins: Net profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends (but not extraordinary items) have been deducted from a company's total revenue.

Analyzing these figures over time helps identify whether WM Technology, Inc. (MAPS) is improving its profitability or facing challenges. For instance, consistent growth in gross profit margin suggests enhanced operational efficiency or pricing strategies.

To evaluate WM Technology, Inc. (MAPS)'s performance effectively, comparing its profitability ratios with industry averages is essential. This comparison provides context on whether the company is performing above or below its peers.

Operational efficiency plays a crucial role in profitability. Effective cost management and favorable gross margin trends indicate that WM Technology, Inc. (MAPS) is optimizing its resources and maintaining a competitive edge.

Here is a sample table illustrating how profitability metrics might be tracked over several periods:

Understanding these profitability metrics is crucial for investors seeking to assess the financial health and growth potential of WM Technology, Inc. (MAPS). For more detailed insights, you can explore: Breaking Down WM Technology, Inc. (MAPS) Financial Health: Key Insights for Investors

WM Technology, Inc. (MAPS) Debt vs. Equity Structure

Understanding how WM Technology, Inc. (MAPS) manages its debt and equity is crucial for investors. This involves looking at the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity to fund its operations and growth. Analyzing these elements provides insights into the company’s financial stability and approach to financial leverage.

As of December 31, 2023, WM Technology, Inc. (MAPS) reported the following debt-related figures:

• Total current liabilities: $35.4 million
• Total liabilities: $43.7 million

These figures offer a snapshot of the company's obligations, which include both short-term and long-term debts. It is also important to note that WM Technology, Inc. (MAPS) has cash and cash equivalents of $27.2 million as of December 31, 2023. This liquidity is essential for managing its current liabilities.

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. However, specific debt-to-equity ratio for WM Technology, Inc. (MAPS) was not found in the provided search results. Generally, this ratio indicates the proportion of debt and equity a company uses to finance its assets. A high ratio may indicate higher financial risk, while a lower ratio suggests a more conservative approach.

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact a company's financial structure. However, specific details regarding these activities for WM Technology, Inc. (MAPS) were not available in the provided search results.

Balancing debt and equity is a strategic decision. Companies often use debt to finance growth because of its tax advantages (interest payments are tax-deductible). However, excessive debt can increase financial risk. Equity financing, on the other hand, doesn't require repayment but dilutes ownership. How WM Technology, Inc. (MAPS) navigates this balance reflects its financial strategy and risk tolerance. More insights into their investor profile can be found here: Exploring WM Technology, Inc. (MAPS) Investor Profile: Who’s Buying and Why?

The following table presents a summary of WM Technology, Inc.'s liabilities as of December 31, 2023:

Analyzing these figures in the context of WM Technology, Inc.'s (MAPS) industry and overall financial strategy provides a more complete picture of its financial health.

WM Technology, Inc. (MAPS) Liquidity and Solvency

Liquidity is a critical aspect of financial health, indicating a company's ability to meet its short-term obligations. For WM Technology, Inc. (MAPS), assessing liquidity involves examining several key metrics and financial statements.

The current ratio and quick ratio provide insights into WM Technology, Inc.'s (MAPS) ability to cover its current liabilities with its current assets. These ratios are calculated using data from the company's balance sheet. As of December 31, 2023, WM Technology, Inc. (MAPS) reported a current ratio of 2.29 and a quick ratio of 2.22.

• A current ratio of 2.29 suggests that WM Technology, Inc. (MAPS) has $2.29 of current assets for every $1 of current liabilities.
• A quick ratio of 2.22 indicates that the company has $2.22 of liquid assets (excluding inventory) available to cover each $1 of current liabilities.

Working capital, defined as the difference between current assets and current liabilities, is another important indicator of liquidity. A positive working capital balance indicates that a company has sufficient short-term assets to cover its short-term liabilities. WM Technology, Inc. (MAPS) showcased a working capital of $84.9 million as of December 31, 2023.

• This substantial working capital provides a buffer for meeting short-term obligations and indicates effective management of its current assets and liabilities.

Analyzing the cash flow statement provides a view of WM Technology, Inc.'s (MAPS) ability to generate cash from its operating, investing, and financing activities. Here's a brief overview:

• Operating Activities: For the year 2023, WM Technology, Inc. (MAPS) reported net cash from operating activities of $24.4 million, compared to $6.9 million in 2022. This increase reflects improved operational efficiency and profitability.
• Investing Activities: The company used $1.6 million in investing activities in 2023, primarily for purchasing property and equipment.
• Financing Activities: WM Technology, Inc. (MAPS) reported a net cash outflow of $1.8 million from financing activities, mainly due to payments related to tax withholding for equity awards.

Below is a summary of WM Technology, Inc.'s (MAPS) cash flow activities for the year 2023:

Overall, WM Technology, Inc. (MAPS) demonstrates a healthy liquidity position. The company's strong current and quick ratios, positive working capital, and positive cash flow from operating activities indicate a solid ability to meet its short-term obligations and invest in future growth. However, investors should continue to monitor these metrics for any changes that could affect the company's financial stability. You can read more about WM Technology, Inc. (MAPS) financial health here: Breaking Down WM Technology, Inc. (MAPS) Financial Health: Key Insights for Investors

WM Technology, Inc. (MAPS) Valuation Analysis

Determining whether WM Technology, Inc. (MAPS) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. These elements, when assessed collectively, provide a comprehensive view of the company's valuation.

To evaluate whether WM Technology, Inc. (MAPS) is overvalued or undervalued, consider the following:

• Price-to-earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A high P/E ratio might suggest overvaluation, while a low one could indicate undervaluation, relative to industry peers or its historical average.
• Price-to-book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. It can help investors determine whether they are paying too much for the net assets of WM Technology, Inc. (MAPS).
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio is used to assess the overall value of the company compared to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a clearer picture of valuation as it takes into account debt and cash.

Analyzing the stock price trends of WM Technology, Inc. (MAPS) over the last 12 months, or longer, can reveal important insights into market sentiment and investor confidence. Recent performance data can be instrumental in assessing current valuation perspectives.

As of April 18, 2024, WM Technology Inc.'s (MAPS) stock demonstrated the following performance:

• The stock price closed at $2.70, marking a 0.37% decrease.
• The stock experienced a 52-week change of -33.54%.
• Year-to-date (YTD) change shows a decrease of -18.18%.

The financial health of WM Technology, Inc. can be further elucidated by comparing its performance against its peers and broader market indices. Here is an overview of how WM Technology, Inc. stacks up against key competitors:

Dividend yield and payout ratios are not applicable for WM Technology, Inc. (MAPS), as the company does not currently offer dividends.

Analyst consensus on WM Technology, Inc. (MAPS) stock valuation provides insights from financial professionals. These ratings typically range from 'buy' to 'sell,' reflecting collective expectations on the stock's potential performance. As of February 29, 2024, analysts have provided the following recommendations for WM Technology:

• The consensus rating is a 'Hold'.
• The average price target among analysts is $3.44.

For more insights into the investors of WM Technology, Inc. (MAPS), check out: Exploring WM Technology, Inc. (MAPS) Investor Profile: Who’s Buying and Why?

WM Technology, Inc. (MAPS) Risk Factors

Several internal and external factors could significantly impact WM Technology, Inc.'s (MAPS) financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Industry Competition: The cannabis industry is becoming increasingly competitive. This heightened competition could pressure WM Technology, Inc.'s (MAPS) market share and profitability. New entrants and the expansion of existing players may lead to price wars or increased marketing expenses, affecting the company's financial performance.

Regulatory Changes: The cannabis industry faces evolving regulatory landscapes at both state and federal levels. Changes in regulations regarding cultivation, distribution, or consumption could create uncertainty and potentially increase compliance costs for WM Technology, Inc. (MAPS). For example, stricter advertising rules or changes in licensing requirements could adversely affect the company's operations and financial results.

Market Conditions: General economic downturns or shifts in consumer preferences can impact the demand for cannabis products. A decrease in consumer spending or a change in attitudes towards cannabis could reduce sales and revenue for WM Technology, Inc. (MAPS).

Key operational, financial, and strategic risks can be gleaned from recent earnings reports and filings. These reports often highlight specific challenges the company is currently facing or anticipates in the near future. Investors should pay close attention to these disclosures to gain a comprehensive understanding of the company's risk profile.

Examples of risks that may be found in earnings reports include:

• Operational Risks: Difficulties in managing growth, supply chain disruptions, or challenges in maintaining the quality of services.
• Financial Risks: Fluctuations in cash flow, increased debt levels, or the inability to secure additional funding when needed.
• Strategic Risks: Failure to adapt to changing market dynamics, unsuccessful expansion into new markets, or the inability to integrate acquired businesses effectively.

Mitigation strategies are plans that WM Technology, Inc. (MAPS) may implement to reduce the impact of these risks. These strategies could include diversifying revenue streams, implementing cost-control measures, or strengthening relationships with key suppliers and customers. Investors should assess the effectiveness of these strategies in addressing the identified risks.

Here's an overview in table format:

For more detailed insights, refer to: Breaking Down WM Technology, Inc. (MAPS) Financial Health: Key Insights for Investors

WM Technology, Inc. (MAPS) Growth Opportunities

WM Technology, Inc. (MAPS) faces a dynamic landscape with several potential growth drivers. These include product innovations, strategic market expansions, and possible acquisitions that could significantly shape its future trajectory.

Analyzing WM Technology, Inc.'s (MAPS) growth prospects involves looking at several key areas:

• Product Innovations: Continuous development and introduction of new features and services on its Weedmaps platform to enhance user experience and cater to evolving consumer preferences.
• Market Expansions: Extending its reach into new geographic markets, particularly in regions where cannabis legalization is progressing.
• Acquisitions: Strategic acquisitions of complementary businesses or technologies to broaden its service offerings and market presence.

Predicting future revenue growth and earnings requires careful consideration of market trends, regulatory changes, and competitive dynamics. While specific projections vary, analysts generally assess the company's potential based on its ability to capitalize on the expanding cannabis market and maintain its competitive edge.

Strategic initiatives and partnerships play a crucial role in WM Technology, Inc.'s (MAPS) growth strategy. These may include collaborations with cannabis retailers, brands, and technology providers to enhance its platform and expand its ecosystem.

WM Technology, Inc. (MAPS) possesses several competitive advantages that could position it for sustained growth:

• Brand Recognition: Weedmaps has established strong brand recognition within the cannabis industry, giving it a competitive edge in attracting users and businesses.
• Market Position: As one of the leading online platforms for cannabis discovery, WM Technology, Inc. (MAPS) benefits from network effects and economies of scale.
• Data and Insights: The company's access to valuable data on cannabis consumer behavior and market trends provides insights that can be leveraged to improve its offerings and drive growth.

For further insights into the company's mission and values, review Mission Statement, Vision, & Core Values of WM Technology, Inc. (MAPS).