Q1 2024 Financial Results for WM Technology, Inc.

NASDAQ: MAPSW | Technology Sector | Software - Application Industry

Introduction

WM Technology, Inc. (NASDAQ: MAPSW), a leading player in the Software - Application industry within the Technology sector, has released its financial results for the first quarter of the fiscal year 2024, ending March 31, 2024. The following document provides a detailed analysis of the company's financial performance.

Income Statement

WM Technology, Inc. reported revenue of $44.39M for Q1 2024. The cost of revenue amounted to $5.24M, leading to a gross profit of $39.15M, reflecting a high gross profit margin of 88.20%. Operating expenses included Research and Development Expenses of $9.23M, General and Administrative Expenses of $16.53M, and Selling and Marketing Expenses of $9.63M. This resulted in total operating expenses of $35.39M.

The operating income for the period was $3.76M. After accounting for other expenses and income, the income before tax was $1.97M. With an income tax expense of $9,000, the net income for the quarter stood at $1.24M, yielding an EPS of $0.01.

Balance Sheet

As of Q1 2024, WM Technology, Inc. held total assets worth $165.85M. This includes $50.26M in total current assets, such as cash and cash equivalents of $35.72M and net receivables amounting to $7.89M. Total non-current assets, including property, plant, and equipment, amounted to $115.59M. The goodwill and intangible assets collectively valued at $70.74M signify the company's strong market position.

Total liabilities for the company were $59.02M, out of which $30.00M were current liabilities. Long-term debt stood at $25.41M. The total stockholders' equity was $20.79M, marking a solid equity base.

Cash Flow Statement

WM Technology, Inc. reported a net income of $1.24M for the first quarter. The company's operating activities generated a net cash flow of $7.40M, supported by non-cash expenses such as depreciation and amortization worth $4.13M and stock-based compensation of $2.82M. Cash used in investing activities primarily included investments in property, plant, and equipment totaling $-4.54M.

Financing activities led to a net cash outflow of $1.50M, primarily due to debt repayments amounting to $96,000 and dividends paid of $1.59M. The net change in cash for the quarter was $1.37M, concluding with cash and cash equivalents of $35.72M at the end of the period.

Key Financial Ratios

During the reporting period, the company's gross profit margin was an impressive 88.20%. The operating profit margin was 8.47%, and the net profit margin stood at 2.79%. The return on assets (ROA) was 0.75%, while the return on equity (ROE) was 5.96%, indicating efficient utilization of resources to generate earnings.

The current ratio of 167.57% and quick ratio of 145.39% suggest robust liquidity, providing the company with sufficient capacity to meet short-term obligations. The debt-to-equity ratio at 150.61% highlights the company's financing strategy and leverage.

Comparative Performance Analysis

In comparison to its peers, WM Technology, Inc. demonstrated a strong gross profit margin of 88.20%, outperforming peers such as Payoneer Global Inc. and Latch, Inc. However, the company trails behind on metrics like net profit margin (-3.35%) and return on equity (-31.87%), suggesting areas for potential improvement.

While the company's price-to-sales ratio stood at 45.23%, this is significantly lower than the best-performing peer, AvePoint Inc. These insights indicate WM Technology, Inc.'s performance relative to industry standards, highlighting strengths and areas for growth.

Conclusion

WM Technology, Inc. has reported a resilient performance for Q1 2024, demonstrating strong gross profits and liquidity despite competitive pressures within the industry. The company shows potential for growth with targeted strategies to improve net profit and return ratios. Investors are advised to consider these financial insights along with broader market conditions for informed decision-making.