Wm Technology, Inc. (NASDAQ: MAPS)

WM Technology, Inc., also known as MAPS, is a prominent player in the cannabis industry, specializing in online marketplaces and comprehensive software solutions for cannabis businesses. The company was established in 2008 and has since expanded its operations to the United States, Canada, and other regions where medical and/or adult-use cannabis is legal.

WM Technology's primary offerings include the Weedmaps marketplace, an online platform that provides cannabis consumers with information about retailers and brands. Additionally, Weedmaps for Business, a Software-as-a-Service (SaaS) solution, assists cannabis retailers and brands in managing their front and back-end operations, compliance needs, and marketing efforts.

The Weedmaps marketplace enables consumers to search for and review cannabis products from various retailers and brands, while also reserving products from local retailers. With Weedmaps for Business, retailers and brands can create online browsing and ordering functionality on their websites, manage pickup and delivery orders, and utilize data and analytics to inform marketing and merchandising decisions.

WM Technology generates revenue through its Weedmaps for Business monthly subscription package. This package includes WM Listings, WM Orders, WM Store, WM Connectors, and WM Insights. The company also offers additional products and services, such as WM Ads, WM Deals, and WM Dispatch, for additional fees.

The cannabis industry is highly competitive, with key competitors including Leafly, Green Flower, and CannaQwest. Despite this competition, WM Technology boasts several competitive advantages. These include its long-standing history as a technology leader in the cannabis industry, its largest two-sided platform for cannabis businesses and consumers, and its unique and expanding data asset.

WM Technology's customers encompass cannabis retailers and brands, as well as consumers who utilize the Weedmaps marketplace to search for and purchase cannabis products.

The cannabis industry is heavily regulated, with numerous countries and territories legalizing and taxing cannabis. In the United States, the cultivation, processing, distribution, sale, advertisement of sale, and possession of cannabis by WM Technology's customers violate federal law. WM Technology has implemented a trademark and service mark registration program and has been issued trademark registrations in several countries, including the United States, Canada, Japan, the European Union, the United Kingdom, Mexico, and Australia.

WM Technology's workforce consisted of 440 full-time employees and 19 temporary employees as of December 31, 2023. The company believes that attracting and retaining top talent is crucial for its success and the realization of its mission to power a transparent and inclusive global cannabis economy.

The cannabis industry experiences certain seasonal fluctuations, with industry holidays such as 420, July 10th, and Green Wednesday resulting in increased purchases by cannabis consumers. WM Technology's clients typically increase their spending before these events, and the company often invests in marketing spend during these periods, leading to some seasonality in its sales and marketing expenses.