Recently, Leafly Holdings, Inc. LFLY, announced its financial results for its second quarter ended June 30, 2022.
Second Quarter 2022 Financial Results:
- Total revenue was $12.1 million, up 13.8% over Q2 2021 driven by growth in retailer and brand revenues
- The gross margin was 88.0%, compared to 88.5% in Q2 2021
- Total operating expense was $19.5 million, up 83.9% over $10.6 million in Q2 2021, and included investments in platform, product development, and sales and marketing to position the business for long-term growth
- Net Income was $14.8 million, and included $24.4 million of gains on derivative liabilities, compared to a net loss of $1.3 million in Q2 2021
- Adjusted EBITDA loss was $8.4 million, compared to an adjusted EBITDA loss of $0.8 million in Q2 2021
- Ended the quarter with $35.4 million of cash and $31.9 million of restricted cash. Effective August 1, 2022, holders of the forward share purchase agreements exercised their options to have the Company repurchase all of their remaining shares underlying the agreements, for a total purchase price of approximately $31.7 million.
In addition, Leafly “delivered 13.8% revenue growth and 19% ending retail account growth over Q2 2021.” Moreover, “100% of all legal dispensaries in New Jersey on the Leafly platform in Q2.”
Key Performance Metrics:
- Year over year, ending retail accounts grew, and ARPA declined, as a result of Leafly’s strategy to lower entry point subscription fees in order to rapidly expand in lower penetrated markets.
- Quarter over quarter, ending retail accounts was impacted by higher than historical average churn levels in markets where the competitive marketplace dynamics have yet to fully develop.
- MAUs increased quarter over quarter, highlighting the strength of news and learn content, technical improvements to SEO, and the Company’s expertise in the cannabis category. In Q2 2021, MAUs reflected an increase in user traffic primarily as a result of the pandemic.
- Q2 2022 revenue from retail accounts was $9.1 million, up 11.3% over Q2 2021, reflecting increased advertising spending from retailers.
- In Q2, all licensed dispensaries in New Jersey subscribed to the Leafly platform and published their menus, giving residents a single platform to shop the menus of every legal dispensary in the state. In many cases, residents can place online orders for in-store pickup.
- Released improvements and enhancements to Leafly’s retailer dashboard, giving retailers robust features to help them make informed decisions and have greater visibility and transparency in their ad spend on Leafly, which is even more critical in today’s environment. Additionally, Leafly rolled out tools that allow clients instant access to ROI metrics and valuable insights.
- Q2 2022 revenue from brands was $3.0 million, up 22.2% over Q2 2021, primarily due to channel marketing, data licensing, and Leafly’s new subscription product offerings that drove a 134.4% year over year increase in the number of brand advertisers on the platform and increased sales of display advertising for products and brands.
- Continued to add enhancements to the delivery ordering experience, including better filtering options to help users find the right dispensary and products they want. These enhancements help drive conversion and create a stickier customer experience to keep them coming back to the platform.
- Launched, “Leafly PLUS University,” which allows accredited cannabis researchers to supplement their work with Leafly’s large cannabis dataset that would otherwise not be available.
- For the full year of 2022, Leafly expects revenue to be in the range of $48.0 million to $51.0 million, representing 15% growth over 2021 at the midpoint. We expect the Adjusted EBITDA loss to be in the range of $28.5 million – $26.0 million.
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“Revenue in the quarter was $12.1 million, up 13.8% over Q2 last year, and up 5.5% over Q1 as we continue to build on the investments we’ve made in the first half of this year,” said Leafly CEO Yoko Miyashita.
“We released several new enhancements that drive consumer engagement and differentiation. In addition, we’re also bringing more tools, greater flexibility, and reduced friction to retailers and brands, creating a seamless experience between consumers and our supply partners,” Miyashita added.
Photo: Courtesy Of MOHD AZRIN On Unsplash
Image and article originally from www.benzinga.com. Read the original article here.