Good day. Thank you for standing by. Welcome to WM Technology Inc. Q1 2023 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, VP of Investor Relations, Greg Stolowitz. Please go ahead. Hi, everyone. Thanks for joining us today to discuss our fiscal 2023 first quarter results. We have our Executive Chair, Doug Francis, and our CFO, Arden Lee, with us today. By now, everyone should have access to our earnings announcement. This announcement is also on our investor relations website, along with a supporting slide deck. During this call, we'll make forward-looking statements, including statements about our business outlook, strategies, and long-term goals. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties, some of which are beyond our control. Our actual results could differ materially from expectations reflected in any forward-looking statements. For discussion of risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC's website and our investor relations website, as well as the risks and other important factors discussed in today's earnings release. We specifically disclaim any intent or obligation to update these forward-looking statements except as required by law. For the benefit of those who may be listening to a replay or archived webcast, this call was held on May 9th, 2023. Since then, we may have made announcements related to the topics discussed, so please refer to the company's most recent press releases and SEC filings. During this call, we'll discuss certain Non-GAAP financial measures in addition to financial information prepared in accordance with GAAP. These Non-GAAP financial measures should be considered in addition to, but not as a substitute for the information prepared in accordance with GAAP. The reconciliation of these measures to our GAAP results can be found in our earnings presentation available on our investor relations website. Finally, this call in its entirety is being webcast from our investor relations website, and an audio replay will be available on our website in a few hours. With that, I'd like to turn the call over to Doug. Thanks, Greg, and hello to everyone joining us today. We had a good first quarter. We beat our expectations for revenue and adjusted EBITDA and generated positive free cash flow before making payments related to last year's headcount reduction. While we have more work to do, we believe we are on the right path. I said back in March that focus is the key for us this year. Focus on our marketplace, delivering value to our clients, and driving profitable, sustainable growth. We made progress in the first quarter on all three areas. On our marketplace, we've been using AI-driven algorithms to drive more personalized user experiences based on our first-party user affinity data. This includes personalized sort orders for menus that users see, as well as personalized product recommendations in our add-to-cart experience. We've been deploying new language models to expand our product catalog and brand-matching efforts. With more accurate tagging of products to brands, we're able to drive better user engagement and conversion through better search results, more relevant product information, and product recommendations. On delivering value to our clients, our teams have been actively executing on the first phase of an in-market activation across our major regions with our street teams, which are helping clients expand their reach and impact. We've increased our on-the-ground and field marketing presence by 3x and have a weekly cadence of client events. We're also rolling out changes to aid our clients on the marketplace. We launched a new listing redesign that allows our clients to add more hero imagery to engage new users, along with order status push notifications to give more ways for our clients to communicate with users placing orders. We've only just begun these efforts in Q1 and have more in flight during this quarter, which arguably is the most important for the industry with 4/20 setting the tone for the year. I'll touch briefly on this year's 4/20 holiday. We always have a number of initiatives around this celebration of cannabis reform. I'm particularly proud of how our teams rallied to drive value for our clients. We kicked off an integrated marketing campaign called the 20 Days of Deals to support many of our strategic clients with promotions for our users. We coupled that with regional event activations and what I call Retailer Appreciation Day dispensary tours that span markets from Boston to Kansas City to Albuquerque and to our backyard here in SoCal. The 4/20 event itself resulted in our largest-ever order volume on a single day, surpassing the volume that we've seen in each of the 4/20 events over the last five years. Finally, on driving profitable and sustainable growth, I said back in March that we'll focus on what we can control. We control how we invest and the mindset we're operating with, and Q1 bore fruit of that commitment. Our adjusted OpEx for the quarter was back to levels that we were operating under when we closed our go-public transaction in 2021. Our teams are showing discipline in where we're hiring and how we're achieving productivity to fund investments. Our net headcount declined during the quarter despite us making strategic hires as our managers are finding ways to operate more leanly. As I said at the start of the call, we are free cash flow positive before termination payments from the headcount reductions we did back in December. Taking a step back, yes, licensed end markets continue to be challenged in a way that we haven't seen since the onset of legalization. Yes, our clients are still struggling to bring consumer demand back to licensed channels while dealing with crippling taxes and a lack of federal regulatory help. I continue to see tremendous opportunities in our regions and the focused approach we are taking on marketplace and our clients. Our clients are seeing the impact of us bringing back cannabis culture and feeling the strength of our marketplace in the streets of their hometowns, which itself is bringing more opportunity. I'll turn it over to Arden. Thanks, Doug, and thanks everyone for joining our call. Our first quarter performance beat our expectations on growth and profitability. Q1 revenue came in at $48 million, which compares to the $47 million expectation that we gave in March. Q1 adjusted EBITDA was a positive $7 million, which compares to the $4 million expectation that we had. As Doug said, we were cash flow positive prior to residual payments from the headcount reductions we took in Q4. Our paying client base was marginally down versus last quarter, though up 12% versus last year. We continue to see client churn due to billing issues, which is masking the new licensees that we're bringing on our platform. Our revenue per client was also marginally down versus last quarter, which primarily reflects mixed considerations as we saw higher levels of growth in our emerging regions, which have lower revenue per client dynamics, as opposed to spend declines in our established markets. For example, revenue per client in California was flat versus last quarter. Our marketplace revenue in California itself grew in Q1 versus Q4, which drove a slight increase in share of mix for California, which now stands at 55% of our Q1 revenue. What's also encouraging to see is that our monthly net dollar retention on our subscription revenue was back above 100% in Q1. Q1 adjusted EBITDA of $7 million reflected a 32% reduction in adjusted OpEx versus last year and 15% reduction versus last quarter. Our Q1 adjusted OpEx, as Doug noted, is at the same level as where we were in Q2 and Q3 at fiscal 2021 when we closed our go public transaction and prior to the investment acceleration to build out our platform. We saw the largest declines in spend across sales and marketing and to a lesser extent, G&A. Our adjusted sales and marketing and G&A declined by 50% and 22% versus last year. Our adjusted G&A includes a $2 million non-cash charge related to provisions for doubtful accounts. We reported a net loss of $4 million for the quarter, which includes $3 million in D&A, $4 million in stock-based compensation, along with approximately $4 million in other non-recurring charges. Our GAAP OpEx, excluding cost of goods and D&A, was $45.5 million in Q1, a reduction of 29% versus last year. More information on these charges is available in our earnings release and will be in our Form 10-Q. We closed the quarter with $26 million in cash, which is after $5 million in payments that we accrued for in Q4 related to the headcount reductions we've spoken about previously. We continue to be debt-free and are comfortable with our liquidity position. Our fully diluted share count across our Class A and B shares classes was 148 million at the end of the quarter. A reconciliation of Non-GAAP metrics to the nearest GAAP result, as well as the details of our share classes and share count calculation, are provided in our earnings presentation posted to our investor relations site. Turning to our outlook, we're encouraged by the tone we're seeing in recent weeks with the client dialogues our teams are having, the initiatives to drive premium listings fill rates across our established markets, and the continued opportunities to grow our client base and spend levels in emerging regions with the more focused approach we're taking to these markets. With that said, we also remain cautious about the environment given continued uncertainty across license end markets in the broader macro environment. As such, we are planning as if our Q2 revenue will be consistent with Q1. On profitability, we have been investing selectively in strategic marketing in support of the 4/20 holiday for our clients and expect Q2 adjusted EBITDA will be in the $4 million area. We expect our marketing investments will ramp back down to more normalized levels in the second half. As we noted last quarter, we expect our cash in Q2 will continue to be impacted by remaining termination costs related to the headcount reductions we took last quarter and will represent a low point for the year. As we also noted last quarter, we're committed to driving double-digit adjusted EBITDA margins and positive cash flow for the year as we demonstrated in Q1. Before we open it up to questions, I wanna thank our team at Weedmaps for their continued focus on delivering against our plan for this year. We're widening our moats and creating more distance versus the competition, thanks to our employees' efforts. With that, let's take questions. Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. One moment, please. Our first question comes from the line of William Carter of Stifel. Your line is now open. Hey, thanks. This is Andrew on for William. First thing I wanted to ask is, looking at the kind of sequential decline in average paying clients, could you give us a sense of how much of that was cut off? How much, I guess what's cut off would be probably the mature markets. How much came from kind of the new markets? Within that, kind of give us a sense of what the mix degradation is from new markets. I guess better said is kind of what's kind of the delta between a new market coming online, spend per client and kind of a mature market? Thanks. First thing I wanted to ask is, looking at the kind of sequential decline in average paying clients, could you give us a sense of how much of that was cut off? How much, I guess what's cut off would be probably the mature markets. How much came from kind of the new markets? Within that, kind of give us a sense of what the mix degradation is from new markets. I guess better said is kind of what's kind of the delta between a new market coming online, spend per client and kind of a mature market? Thanks. First thing I wanted to ask is, looking at the kind of sequential decline in average paying clients, could you give us a sense of how much of that was cut off? How much, I guess what's cut off would be probably the mature markets. How much came from kind of the new markets? Within that, kind of give us a sense of what the mix degradation is from new markets. I guess better said is kind of what's kind of the delta between a new market coming online, spend per client and kind of a mature market? Thanks. First thing I wanted to ask is, looking at the kind of sequential decline in average paying clients, could you give us a sense of how much of that was cut off? How much, I guess what's cut off would be probably the mature markets. How much came from kind of the new markets? Within that, kind of give us a sense of what the mix degradation is from new markets. I guess better said is kind of what's kind of the delta between a new market coming online, spend per client and kind of a mature market? Thanks. First thing I wanted to ask is, looking at the kind of sequential decline in average paying clients, could you give us a sense of how much of that was cut off? How much, I guess what's cut off would be probably the mature markets. How much came from kind of the new markets? Within that, kind of give us a sense of what the mix degradation is from new markets. I guess better said is kind of what's kind of the delta between a new market coming online, spend per client and kind of a mature market? Thanks. First thing I wanted to ask is, looking at the kind of sequential decline in average paying clients, could you give us a sense of how much of that was cut off? How much, I guess what's cut off would be probably the mature markets. How much came from kind of the new markets? Within that, kind of give us a sense of what the mix degradation is from new markets. I guess better said is kind of what's kind of the delta between a new market coming online, spend per client and kind of a mature market? Thanks. First thing I wanted to ask is, looking at the kind of sequential decline in average paying clients, could you give us a sense of how much of that was cut off? How much, I guess what's cut off would be probably the mature markets. How much came from kind of the new markets? Within that, kind of give us a sense of what the mix degradation is from new markets. I guess better said is kind of what's kind of the delta between a new market coming online, spend per client and kind of a mature market? Thanks. Andrew, it's Arden here. Just to clarify, when you say cut off, I assume you mean what we talked about previously around clients that we've unpublished. Correct. That's right. Yeah. Yeah. Let me give you one way to think about it, which is, if we removed some of the churn that we've seen exactly due to that issue, our paying client count would've been relatively flat, marginally up quarter-over-quarter. That's point number one. Point number two is if you look at our net client kind of adds over the course of the last quarter, the vast majority of that is coming from what we would characterize as emerging regions. These are the regions where, again, we're not as penetrated from a licensee perspective, and we're still scaling on monetization. Point number three to the question that you asked around mix. Listen, we touched on it during the commentary. One way to think about the impact of mix is the decline that we saw quarter-over-quarter on a revenue per paying client for this quarter was largely driven by that mix. Meaning we had more client adds in emerging regions where the revenue per client dynamics are lower than the company average. We had elevated churn due to billing issues in our more mature markets where the spend levels are higher. That's what you saw quarter-over-quarter. We got it. Looking at the kind of the second quarter, the EBITDA, the kind of step down in EBITDA with a similar rate of sales, I'm assuming gross margin's gonna hold on at the same rate. You did say it was incremental advertising, but is all of that kind of step down related to kind of incremental advertising spend? Yeah. Yeah. again, it related to the profitability, the adjusted EBITDA number for Q2, that's exactly the right way to think about it. gross margin rate, we believe, should be pretty constant versus what we saw in Q1. We expect our product dev and G&A to stay relatively constant as a% of sales versus Q1. the delta is the increase in sales and marketing that we highlighted on the call. One final one, kind of thinking through, like, your top of the funnel metrics, kind of MAUs. I know you haven't disclosed that in a while. All we can really rely on third party is third party data. Are you seeing any kind of stability on that front or kinda anything you can give us on that front? Yeah, you know, I'll start and Doug may chime in as well. What I'd say is that at the moment, our teams have been primarily focused on driving mid and lower funnel conversion. A lot of the work that we're doing, both from a content strategy perspective, from a marketing strategy perspective, from a product roadmap perspective, is really optimizing for those mid and lower funnel conversion. For example, we talked about one of the things that we were promoting around the 4/20 holiday, 20 Days of Deals. That was all around, again, driving conversion to deal claims. So, you know, the top of the funnel, as we've talked about in quarters past, it tends to kinda ebb and flow based on how we're investing against marketing, full stop. Right now, where a lot of our efforts are from a funnel perspective are around really driving that conversion activity. Thanks. I'll pass it on. Thank you. Our next question comes from the line of Brett Knoblauch of Cantor Fitzgerald. Your line is now open. Hi, guys. Thanks for taking my question. Really appreciate it. I guess, you know, coming into second quarter, maybe, you know, when you guys last spoke, when you reported first quarter results, would you say you're more optimistic about the demand environment as a whole than you were, call it, you know, 45 days, 60 days ago? Yeah, Brett. When you say demand environment, do you mean client demand or user demand? Or, maybe we can address both. Oh, yeah. I guess on the client demand. Yeah, go ahead, sorry. Yeah. Yeah. If you can address both would be great. More so on the client demand. Yeah. Yeah. Listen, I'd say, it's a bit of a tale of two different sets of markets. What I mean by that is, we have some very established markets where we do business, right? We've talked in the past about California. We've talked in the past about Colorado. These are states that, as a lot of folks have seen based on the third party data, continue to be in, continue to be sideways dealing with headwinds, right? When you look at the licensed end market GMV data that's put out by third parties, it'll show for those two states that I just quoted, that for most of this year, we've seen pretty steady sequential week over week declines. With that being said, there's all the other regions where we have a footprint. What I'd say is, if you looked at our top states where we do business, we do business where you would expect us to, any state that has some form of medical or rec regulation. If you look at our top 20 states, we have a number of states that are up double digits, some states up triple digits, just given we have a small base of business that's growing at a very rapid clip. We're still dealing with the end market kinda headwinds that are impacting states like California or a Colorado or an Oklahoma. That is what's weighing on kind of the overall sentiment as we think about client demand. Listen, folks for sure across the board have demand for Weedmaps, whether you're in a market that's dealing with these headwinds or not. I'd say the clients that are in markets that are dealing with headwinds are even kind of more, I guess, anxious in their desire to be on our platform, just given their need to get in front of the consumer. That's on the client side. I'd say on the user side, we've said this for a while now that we think cannabis demand, consumer demand for cannabis is still very strong. We think it's resilient. Of course, we are keeping our eye on a lot of what's happening across the macro environment, 'cause that always is a risk to consumer pocketbooks and their spend for discretionary product. Based on the data that we're tracking, it seems as if the consumer continues to hold in there. The question is how much of that demand continues to be allocated to licensed channels versus non-licensed channels, and that therein lies the source of headwinds across a lot of these established markets. Okay. No, thank you for that color. Then maybe just on your 20 deals for 20 days, you know, 4/20 promotion. Can you maybe help quantify, you know, you said it was kind of the largest 4/20 that you've had from an order volume. Can you just maybe help quantify the% kind of growth you're seeing, or you saw from that event over the year-ago period? Thank you. Yeah. I'll take a crack at that in terms of metrics. Doug talked about on the call how our order volume for this past 4/20 eclipsed the prior 4/20 holidays. We had our largest single day order volume in the company's history. I characterize it as year-over-year, we were up in the low single-digit% area, where we also saw big increases in deal claims specifically due to the 20 Days of Deals campaign. Year-over-year, our deal claims were up well into the double-digits on a% growth basis. Appreciate that. Thanks, guys. Thank you. At this time, I see no further questions. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.