WM Technology, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and operational strategies compared to the previous fiscal period.

For Q3 2024, net revenues totaled $46.6 million, a slight decrease of $0.1 million from $46.7 million in Q3 2023. For the nine months ended September 30, 2024, revenues were $136.8 million, down from $141.5 million in the same period last year. The revenue decline was primarily attributed to a $2.7 million drop in revenues from Featured Listings and WM Deal products, as clients faced constrained marketing budgets amid ongoing industry consolidation. This decline was partially offset by a $2.7 million increase in revenues from Weedmaps for Business and other SaaS solutions, driven by favorable pricing changes.

Total costs and expenses for Q3 2024 were reported at $41.3 million, a decrease of $10.9 million compared to $52.2 million in Q3 2023. This reduction was largely due to a significant decrease in asset impairment charges, which were $0 in Q3 2024 compared to $8.4 million in Q3 2023. Operating income for Q3 2024 was $5.2 million, a turnaround from an operating loss of $5.5 million in Q3 2023. Net income for the quarter was $5.3 million, compared to a net loss of $2.5 million in the prior year.

For the nine-month period, net income reached $8.5 million, a significant improvement from a net loss of $4.5 million in the same period of 2023. The company also reported a notable increase in net cash provided by operating activities, which rose to $27.3 million from $12.4 million year-over-year.

Strategically, WM Technology has focused on enhancing its product offerings, having discontinued certain products in December 2023 to streamline operations. The company aims to grow its marketplace by attracting more cannabis businesses and consumers, despite challenges such as price deflation and consolidation in the industry. As of September 30, 2024, the company had cash reserves of $45.0 million, up from $34.4 million at the end of 2023, and total assets increased to $173.6 million from $167.0 million.

The company also reported a significant improvement in stockholders' equity, which rose to $114.99 million as of September 30, 2024, compared to $103.15 million at the end of 2023. This increase reflects the company's efforts to strengthen its financial position amid a challenging market environment.

Overall, WM Technology's performance in Q3 2024 demonstrates a recovery in profitability and operational efficiency, despite a slight decline in revenue. The company continues to navigate the complexities of the cannabis market while focusing on strategic growth initiatives.