Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the decline in net revenues for Q2 2024? A: Susan Echard, Interim CFO, explained that the $2.5 million or 5% decline in net revenues compared to the same period last year was due to lower spending on featured and delisting products as clients faced constrained marketing budgets. Additionally, the impact of sunsetting certain products in Q4 of the previous year contributed to this decline.
Q: What factors contributed to the increase in average monthly net revenue per paying client in Q2? A: Susan Echard noted that the average monthly net revenue per paying client increased by 5% to $3,033 compared to the prior year period. This was due to the removal of lower-revenue clients who used sunset products and those who churned, leading to a higher average selling price among remaining clients.
Q: How did cost management impact the company's financial performance in Q2? A: Susan Echard highlighted that cost of revenues and sales and marketing expenses declined by 31% and 12%, respectively, compared to the prior year. This was due to eliminated costs from discontinued products and decreased wage expenses from lower headcount. However, these savings were partially offset by increased general and administrative expenses related to legal and audit services.
Q: What is the company's outlook for Q3 2024? A: Susan Echard stated that despite some positive trends, the company anticipates fluctuations due to seasonality. They expect Q3 net revenues to be approximately $44 million and Q3 adjusted EBITDA to be around $7 million.
Q: How is the company positioned in terms of liquidity and cash flow? A: Susan Echard reported that WM Technology generated $5.5 million in cash during the quarter, closing with $41.3 million in cash and remaining debt-free. The company maintains a strong liquidity position and positive cash flow, although Q3 cash flow may be impacted by potential one-time payments, such as an SEC settlement.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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