WM Technology, Inc. (NASDAQ:MAPS) Q4 2022 Earnings Call Transcript

If you look at the data year-to-date in 2023, so far, it’s been sequentially down for the better part of the Q1 to date period. And so we’re very mindful of that dynamic in terms of how remodeling out plan and planning against those skilled markets or the skilled states of California, Oklahoma and Colorado. What I will say though, is outside of those three states, we’re seeing very healthy demand trends amongst your clients. We’re seeing healthy demand trends, in terms of not only our ability to grow our paying client base, but also spend levels across these regions. So for us, what does that mean? We’ve got our eyes focus specifically on those three states to just to get a read around client tone and health of our clients, because it’s still touching go obviously in those three states, but outside of that it’s business as usual as getting after the opportunity.

DJ Hynes: Okay, got it. Thank you for the color.

Operator: Thank you. And our next question comes from the line of Andrew Carter from Stifel. Your question please.

W. Andrew Carter: Hey, thank you. Good evening. Good afternoon. So first question I would ask in terms of what you’re seeing on the cash needs, I think the cash burn in the quarter was $4 million versus the kind of adjusted $4 million number, how much was cash charges? How much is kind of left to go in cash charges and help us understand if there’s anything due on the distributions given the special shareholder class? Or on the cash basis?

Doug Francis: Yes, yes. So Andrew, I can take that one. So a couple things. So as we referenced earlier on the call, we still have some residual charges, cash costs related to the cost reduction efforts that we took in Q4. So we talked, or we filed in our aka last quarter, the severance charges related, the headcount reductions that we took. The bulk of those will hit in the first half. So we talked about just under $11 million of cash charges when we thought our December, we’ve paid out over the course of Q4. But a quarter of those, we still have some residual cost to go. On your question around tax distributions, our tax distributions have been averaging at about a buck, a quarter or so. And so we don’t expect much movement in the very near-term on that front.

What I will say is, we’ve fully thought through the severance charges that have — that are left to go in terms of our liquidity and cash management and planning and the like. And, as you mentioned, on the call, we feel very comfortable with our liquidity position. We’ve sized our cost base at a level where we have clear line of sight towards generating positive cash flow, regardless of what happened in California, Colorado, Oklahoma. And I’ve touched on the dynamics that we’re seeing in some of these other states.

W. Andrew Carter: Okay, second question has so third-party kind of metrics, we look at similar web shows the time on the platform is down pretty significantly and accelerated year-to-date. That might be in part a function of the in markets themselves. But also what’s kind of your sense of the MAU base? I know, you’re still kind of evaluating that, going back to draw board what you’re disclosed, but your sales teams also, obviously have to be armed with something to the value. So anything you can help on that? And do you think you’re investing at the right level? Behind that the demand generation both sides of the funnel, obviously.