Ancillary Cannabis Stocks Leading the Digital Revolution
Ancillary companies that offer crucial internet services and solutions are a key component of the cannabis industry’s success as it grows. These supplementary marijuana stocks are starting to have a more significant impact on how the cannabis sector is portrayed online. These businesses are positioned for major prospects in the near and long term, as the cannabis sector is expected to grow exponentially in the upcoming years.
The cannabis industry is expanding significantly; projections suggest a $90 billion global market by 2026. In this thriving sector, ancillary companies focus on online platforms, e-commerce, and digital marketing to build the industry’s online presence. These firms offer investors chances for short-term gains due to industry momentum and long-term growth potential as the cannabis market matures. Exploring the cannabis landscape, ancillary marijuana stocks offer a dynamic avenue to capitalize on digital transformation and long-term viability.
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Navigating the Online Cannabis Space: Top Ancillary Marijuana Stocks for 2023
- Leafly Holdings, Inc. (NASDAQ: LFLY)
- WM Technology, Inc. (NASDAQ: MAPS)
Leafly Holdings, Inc.
Leafly Holdings, Inc. is a prominent player in the cannabis industry, known for its comprehensive online platform and mobile app. Based in Seattle, Washington, Leafly provides valuable information to both consumers and businesses in the cannabis space. Their platform offers a wealth of data on various cannabis strains, products, and dispensaries, helping users make informed choices about their cannabis consumption.
Leafly has a presence in over 20 states, serving cannabis enthusiasts and medical patients. They’ve partnered with numerous dispensaries and delivery services, simplifying access to preferred products. Leafly’s user-friendly interface enables strain exploration, review reading, and online ordering, bolstering its popularity in the cannabis market.
Third Quarter Financial Results
In the third quarter of 2023, Leafly Holdings, Inc. reported a total revenue of $10.6 million, a slight decrease compared to the same period in 2022, when it generated $11.8 million in revenue. However, there was a notable improvement in gross margin, which reached 89%, up from the 87% gross margin in Q3 2022. This indicates the company’s ability to maintain healthy profit margins.
Leafly demonstrated strong cost management in Q3 2023, with total operating expenses reduced to $10.9 million, a significant 33% reduction from the $16.3 million incurred in Q3 2022. Despite these efforts, the company reported a net loss of $2.2 million for the quarter, in contrast to a net income of $15.5 million in Q3 2022. It’s worth noting that the prior year’s net income included a $22.3 million non-cash benefit from a change in fair value derivative liabilities.
Regarding adjusted EBITDA, a non-GAAP measure used to assess operational performance, Leafly reported a loss of $0.2 million in Q3 2023, an improvement from the adjusted EBITDA loss of $5.2 million in the same quarter of the previous year. The company ended the quarter with $14.5 million in cash reserves, excluding restricted cash, which remained relatively stable compared to the previous quarter. These financial results suggest Leafly’s commitment to financial discipline and adaptability in a dynamic industry.
LFLY Stock Performance
LFLY stock closed on November 30th at $5.09, down 16.28% in the past month of trading. In this case, the stock ranges from $4.68-$18.40 and is down 60.96% year to date.
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WM Technology, Inc.
WM Technology, Inc., commonly known as Weedmaps, is a prominent player in the cannabis industry. Headquartered in Irvine, California, the company operates an online platform and mobile app as a comprehensive resource for cannabis consumers and businesses. Weedmaps provides a wide range of information, including details on various cannabis strains, products, and nearby dispensaries.
Weedmaps is present in over 30 U.S. states, serving as a top choice for cannabis products and information. The platform links consumers to dispensaries and delivery services, simplifying access to desired cannabis items. Additionally, Weedmaps offers tools for businesses in the industry to manage their operations and reach a broader audience. The company has played a significant role in shaping the cannabis landscape. It connects consumers with the products and services they need.
Third Quarter 2023 Financial Highlights
In the third quarter of 2023, WM Technology, Inc. (Weedmaps) reported financial highlights that reflect its position in the cannabis industry. The company generated revenue of $47.7 million during the quarter, slightly down from the $50.5 million in the same period of the prior year. While the average monthly paying clients decreased from 5,576 in the prior year to 5,414, the average monthly revenue per paying client also saw a slight decline, going from $3,019 to $2,938.
Despite these changes, Weedmaps showcased strong financial discipline, reporting a net loss of $2.5 million for the quarter, a significant improvement compared to the net loss of $10.5 million in the same period of the previous year. Notably, the company achieved a positive adjusted EBITDA of $10.7 million in Q3 2023, in contrast to the negative adjusted EBITDA of $(9.6) million in the prior year period. Weedmaps also maintained a healthy cash position of $27.7 million as of September 30, 2023, with no debt, indicating a solid financial foundation. The company’s performance highlights its resilience and ability to adapt to the dynamic cannabis industry.
MAPS Stock Performance
MAPS stock closed at $0.8318 on November 30th, down 24.38% in the last month of trading. The stock has a 52-week price range of $0.596- $1.88 and is down 17.64% year to date. According to analysts at CNN Business, MAPS stock has a 12-month average price target of $2.06 per share. In essence, this would represent an upside of 51.10% from its last trading price of $1.36.
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Navigating the Online Cannabis Space: Top Ancillary Stocks for 2023
In conclusion, the role of ancillary cannabis stocks in boosting the industry’s online presence in 2023 is pivotal. As the cannabis market expands, these companies lead digital transformation, offering diverse services like e-commerce and digital marketing. The global legal cannabis market is set for exponential growth. Investors looking for short-term gains and long-term potential should closely watch these innovative ancillary stocks.
These companies are digital pioneers in the cannabis frontier. They facilitate consumer access to cannabis products and shape the industry’s online image and reputation. They are not merely following the industry’s growth but actively driving it forward. Investors can engage in the cannabis industry’s evolution, benefiting from its digital and market impact. In 2023 and beyond, ancillary cannabis stocks will continue their essential role in the industry’s digital dominance journey. This makes them an attractive option for those seeking to capitalize on this flourishing sector.
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