TECH - Is A 1500% Increase Possible? The Bull Case For This Cannabis Tech Stock Explained | Benzinga
WM Technology's (NASDAQ: MAPS) sales declined by 4.5% year-over-year and quarter-over-quarter in Q1 2024.
Average monthly paying clients decreased by 1.5% sequentially to 4,937, while average monthly revenue per client fell 1.5% to $2,997. Nevertheless, in his latest report, senior analyst Pablo Zuanic from Zuanic & Associates finds a bull case for the cannabis tech stock.
Q1 2024: Highlights
- EBITDA margins remained above 20%, reaching 21.6% in Q1 2024 due to reduced sales and marketing expenses and improved cost efficiencies.
- California accounted for approximately 55% of sales, with Colorado, Michigan and Oklahoma contributing about 30%.
- The company generated $10 million in EBITDA for Q1 2024, compared to -$9 million for all of 2022. As of March 2024, MAPS held $36 million in cash, with no financial debt, resulting in a $1.3 million quarter-over-quarter increase in cash.
- The reduction in receivables, from $11.1 million to $7.9 million, contributed to this positive cash flow. Free cash flow for Q1 2024 was $2.9 million, and the company generated $11 million in free cash flow for the entire year of 2023.
Outlook
According to Zuanic, MAPS management did not provide FY 2024 guidance but expects stable sales for Q2 2024 and anticipates EBITDA of around $7 million, down from ...