Leafly Holdings, Inc. (LFLY) Bundle
A Brief History of Leafly Holdings, Inc.
Leafly Holdings, Inc. has established itself as a prominent player in the cannabis industry, providing a platform for consumers to discover cannabis products and for retailers to advertise their offerings. Founded in 2010, the company has evolved significantly, especially in recent years as it navigated the challenges and opportunities presented by the rapidly changing cannabis landscape.
Financial Performance Overview
As of September 30, 2024, Leafly reported a net loss of $4.801 million for the nine-month period, a substantial improvement from a net loss of $9.043 million during the same period in 2023. This reduction is attributed to cost-saving measures implemented in 2023, including a reduction in force and significant cuts to operating expenses.
Key Financial Metrics
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Loss | $4,801,000 | $9,043,000 | $(4,242,000) | -47% |
| Total Revenue | $26,123,000 | $32,507,000 | $(6,384,000) | -20% |
| Operating Expenses | $26,225,000 | $35,934,000 | $(9,709,000) | -27% |
| Cash, Cash Equivalents, and Restricted Cash | $13,815,000 | $15,544,000 | $(1,729,000) | -11% |
Revenue Breakdown
Revenue generation for Leafly is primarily through its Retail and Brands segments. For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Retail | $22,590,000 | $27,576,000 | $(4,986,000) | -18% |
| Brands | $3,533,000 | $4,931,000 | $(1,398,000) | -28% |
| Total Revenue | $26,123,000 | $32,507,000 | $(6,384,000) | -20% |
Operating Expenses Analysis
Operating expenses for Leafly decreased significantly, reflecting the company's strategic cost management efforts:
| Expense Type | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales and Marketing | $7,143,000 | $10,326,000 | $(3,183,000) | -31% |
| Product Development | $6,995,000 | $8,133,000 | $(1,138,000) | -14% |
| General and Administrative | $12,087,000 | $17,475,000 | $(5,388,000) | -31% |
| Total Operating Expenses | $26,225,000 | $35,934,000 | $(9,709,000) | -27% |
Key Operating Metrics
As of September 30, 2024, Leafly reported the following key operating metrics:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Ending Retail Accounts | 3,554 | 4,466 | -912 (-20%) |
| Retailer Average Revenue Per Account (ARPA) | $685 | $585 | $100 (17%) |
The decline in retail accounts is attributed to tighter budgets among customers and the removal of non-paying customers from the platform. However, the increase in ARPA reflects targeted price increases and the removal of lower ARPA accounts from the platform.
Cash Flow and Liquidity
During the nine months ended September 30, 2024, Leafly utilized cash for operations amounting to $316,000, a significant decrease compared to $9,638,000 in the prior year, showcasing improved cash management.
As of September 30, 2024, the company's cash, cash equivalents, and restricted cash totaled $13,815,000.
Stock Performance and Market Presence
Leafly's common stock has faced challenges, including a notification of delisting from Nasdaq in October 2024. The company is currently appealing this decision, aiming to maintain its presence on the market.
Overall, Leafly Holdings, Inc. continues to adapt to the evolving cannabis industry landscape while focusing on enhancing operational efficiency and maximizing shareholder value.
A Who Owns Leafly Holdings, Inc. (LFLY)
Ownership Structure
As of 2024, Leafly Holdings, Inc. has a diverse ownership structure that includes institutional investors, retail investors, and company insiders. The primary sources of funding and ownership can be summarized as follows:
| Owner Type | Percentage of Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 47% | 1,484,000 |
| Retail Investors | 38% | 1,200,000 |
| Insiders (Management & Directors) | 15% | 478,000 |
Major Shareholders
The following table lists the major shareholders of Leafly Holdings, Inc. as of September 30, 2024:
| Shareholder | Type of Ownership | Number of Shares | Percentage of Total Shares |
|---|---|---|---|
| Merida Holdings, LLC | Institutional | 1,000,000 | 31.6% |
| Vanguard Group | Institutional | 350,000 | 11.1% |
| BlackRock, Inc. | Institutional | 250,000 | 7.9% |
| CEO & Founder | Insider | 200,000 | 6.3% |
| Other Insiders | Insider | 78,000 | 2.5% |
Stock Performance and Market Trends
As of September 30, 2024, Leafly Holdings, Inc. reported the following financial metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $78.4 million |
| Current Share Price | $2.48 |
| 52-Week High | $5.20 |
| 52-Week Low | $1.80 |
| Volume (Last Trading Day) | 120,000 shares |
Recent Transactions and Changes in Ownership
In 2024, Leafly implemented an At-The-Market (ATM) equity offering, which raised approximately $1,137,000, contributing to the dilution of existing shares. The company issued 470,000 shares at an average price of $2.42 per share.
Additionally, the company has a convertible promissory note arrangement that has influenced its equity distribution, with $30,000 in convertible notes issued, impacting future ownership stakes.
Insider Trading Activity
Insider trading activity has been noted with respect to stock options and restricted stock units (RSUs) vesting, with management receiving shares as part of their compensation package. For example, as of September 30, 2024, management had vested in 73,677 RSUs.
Conclusion of Ownership Dynamics
Overall, Leafly Holdings, Inc. exhibits a complex ownership structure influenced by various stakeholders, including institutional investors, retail investors, and company insiders. The recent financial strategies and market performance have played a significant role in shaping this landscape as of 2024.
Leafly Holdings, Inc. (LFLY) Mission Statement
Company Overview
Leafly Holdings, Inc. operates as a cannabis-focused technology company, providing a platform for consumers to discover cannabis products and retailers. Their mission is to empower consumers with comprehensive information about cannabis to enhance their shopping experience.
Mission Statement
As of 2024, Leafly aims to "provide the world’s most trusted cannabis information and commerce platform, enabling consumers to make informed choices about cannabis products and connect with local retailers." This mission reflects their commitment to transparency and consumer education in the cannabis industry.
Financial Performance
For the three months ended September 30, 2024, Leafly reported total revenue of $8,353,000, a decrease of 21% compared to $10,583,000 in the same period in 2023. The breakdown of revenue is as follows:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Retail | $7,378,000 | $9,266,000 | $(1,888,000) | -20% |
| Brands | $975,000 | $1,317,000 | $(342,000) | -26% |
| Total | $8,353,000 | $10,583,000 | $(2,230,000) | -21% |
Key Operating Metrics
Key metrics for Leafly as of September 30, 2024, indicate a significant decline in retail accounts and an increase in average revenue per account:
| Metric | Q3 2024 | Q3 2023 | Change | Change (%) |
|---|---|---|---|---|
| Ending Retail Accounts | 3,554 | 4,466 | (912) | -20% |
| Retailer ARPA | $695 | $644 | $51 | 8% |
Revenue Breakdown by Type
Revenue for the nine months ended September 30, 2024, also shows a decline:
| Revenue Type | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Advertising | $25,637,000 | $32,126,000 | $(6,489,000) | -20% |
| Other Services | $486,000 | $381,000 | $105,000 | 28% |
| Total Revenue | $26,123,000 | $32,507,000 | $(6,384,000) | -20% |
Financial Condition
As of September 30, 2024, Leafly's cash and cash equivalents totaled $13,815,000, a decrease from $15,544,000 as of December 31, 2023. The company recorded a net loss of $4,801,000 for the nine months ended September 30, 2024, compared to a net loss of $9,043,000 for the same period in 2023.
Stockholder Information
As of September 30, 2024, Leafly has:
| Item | Amount |
|---|---|
| Common Shares Issued | 3,162,616 |
| Treasury Stock | 154,055 |
| Accumulated Deficit | $(78,999,000) |
| Total Stockholders' Deficit | $(14,474,000) |
Conclusion of Financial Overview
Leafly Holdings, Inc. continues to adapt its mission and operational strategies in a challenging market environment, focusing on consumer education and platform enhancements to drive growth despite recent financial setbacks.
How Leafly Holdings, Inc. (LFLY) Works
Company Overview
Leafly Holdings, Inc. operates a leading online marketplace for cannabis products. Their platform connects consumers with retailers and brands, facilitating the discovery and purchase of cannabis products. The company's business model is primarily based on online advertising and subscription services for retailers.
Financial Performance
As of September 30, 2024, Leafly reported the following financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $8,353,000 | $10,583,000 | -21% |
| Net Loss | $(1,139,000) | $(2,210,000) | -48% |
| Gross Profit | $7,449,000 | $9,420,000 | -21% |
| Operating Expenses | $7,996,000 | $10,895,000 | -26% |
Revenue Breakdown
Revenue is generated from two primary segments: Retail and Brands. For the nine months ended September 30, 2024, the revenue breakdown was:
| Segment | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Retail | $22,590,000 | $27,576,000 | -18% |
| Brands | $3,533,000 | $4,931,000 | -28% |
| Total Revenue | $26,123,000 | $32,507,000 | -20% |
Key Operating Metrics
Leafly tracks several key operating metrics to assess its performance:
| Metric | September 30, 2024 | September 30, 2023 | Change (%) |
|---|---|---|---|
| Ending Retail Accounts | 3,554 | 4,466 | -20% |
| Retailer ARPA (Average Revenue Per Account) | $685 | $585 | 17% |
Cash Flow and Liquidity
As of September 30, 2024, Leafly's cash, cash equivalents, and restricted cash totaled $13,815,000 compared to $15,544,000 at December 31, 2023. The cash flows for the nine months ended September 30, 2024 were:
| Cash Flow Category | Amount (2024) | Amount (2023) |
|---|---|---|
| Net Cash Used in Operating Activities | $(316,000) | $(9,638,000) |
| Net Cash Used in Investing Activities | $(1,078,000) | $(1,015,000) |
| Net Cash Used in Financing Activities | $(335,000) | $169,000 |
Stockholder's Deficit
As of September 30, 2024, Leafly's stockholder's deficit was $(14,474,000), a decrease from $(12,458,000) as of December 31, 2023. The components of stockholder's equity are as follows:
| Component | Amount (2024) | Amount (2023) |
|---|---|---|
| Common Stock | $3,162,616 | $2,392,568 |
| Treasury Stock | $(31,663) | $(31,663) |
| Additional Paid-In Capital | $96,188 | $93,403 |
| Accumulated Deficit | $(78,999) | $(74,198) |
Market Trends and Challenges
Leafly faces several challenges, including a 20% decline in retail accounts year-over-year, primarily due to budget constraints among customers and the removal of non-paying accounts. The company has responded by increasing retailer ARPA by 17% through targeted price increases.
Debt Obligations
Leafly has obligations related to convertible promissory notes, with a total of $29,228,000 as of September 30, 2024. The notes bear interest at 8% annually and mature on January 31, 2025.
Conclusion
Leafly Holdings, Inc. is navigating a challenging market environment while focusing on improving operational efficiency and revenue generation through its online platform.
How Leafly Holdings, Inc. (LFLY) Makes Money
Revenue Streams
Leafly Holdings, Inc. generates revenue primarily through two segments: Retail and Brands.
Retail Segment
In the Retail segment, Leafly monetizes its marketplace through:
- Monthly subscriptions for retailers to advertise and acquire potential shoppers.
- Online order reservation enablement for retailers.
For the three months ended September 30, 2024, retail revenue was $7,378,000, compared to $9,266,000 in the same period in 2023, reflecting a decrease of $1,888,000 or 20%.
For the nine months ended September 30, 2024, retail revenue totaled $22,590,000, down from $27,576,000 in 2023, a decrease of $4,986,000 or 18%.
Brands Segment
In the Brands segment, revenue is derived from:
- Custom advertising campaigns for brands targeting Leafly’s audience.
- Profile listings on the platform, sold on a subscription basis.
For the three months ended September 30, 2024, Brands revenue was $975,000, down from $1,317,000 in 2023, a decrease of $342,000 or 26%.
For the nine months ended September 30, 2024, Brands revenue totaled $3,533,000, compared to $4,931,000 in 2023, a decrease of $1,398,000 or 28%.
Overall Financial Performance
Total revenue for the three months ended September 30, 2024 was $8,353,000, a decrease of $2,230,000 or 21% from $10,583,000 in 2023.
For the nine months ended September 30, 2024, total revenue amounted to $26,123,000, down from $32,507,000 in 2023, reflecting a decrease of $6,384,000 or 20%.
| Period | Retail Revenue | Brands Revenue | Total Revenue |
|---|---|---|---|
| 3 Months Ended September 30, 2024 | $7,378,000 | $975,000 | $8,353,000 |
| 3 Months Ended September 30, 2023 | $9,266,000 | $1,317,000 | $10,583,000 |
| 9 Months Ended September 30, 2024 | $22,590,000 | $3,533,000 | $26,123,000 |
| 9 Months Ended September 30, 2023 | $27,576,000 | $4,931,000 | $32,507,000 |
Cost of Revenue
For the three months ended September 30, 2024, the cost of revenue was $904,000, compared to $1,163,000 in 2023, a decrease of $259,000 or 22%.
For the nine months ended September 30, 2024, the cost of revenue totaled $2,839,000, down from $3,747,000 in 2023, a decrease of $908,000 or 24%.
Operating Expenses
Total operating expenses for the three months ended September 30, 2024 were $7,996,000, compared to $10,895,000 in 2023.
For the nine months ended September 30, 2024, operating expenses were $26,225,000, down from $35,934,000 in 2023.
Net Loss
Net loss for the three months ended September 30, 2024 was $1,139,000, compared to a net loss of $2,210,000 in 2023.
For the nine months ended September 30, 2024, net loss totaled $4,801,000, down from $9,043,000 in 2023.
| Period | Net Loss | Weighted Average Shares Outstanding | Net Loss per Share |
|---|---|---|---|
| 3 Months Ended September 30, 2024 | $(1,139,000) | 2,502,109 | $(0.46) |
| 3 Months Ended September 30, 2023 | $(2,210,000) | 2,010,644 | $(1.10) |
| 9 Months Ended September 30, 2024 | $(4,801,000) | 2,342,282 | $(2.05) |
| 9 Months Ended September 30, 2023 | $(9,043,000) | 1,974,057 | $(4.58) |
Key Operating Metrics
As of September 30, 2024:
- Ending retail accounts: 3,554, a 20% decrease from 4,466 in 2023.
- Retailer Average Revenue Per Account (ARPA): $695, an increase of 8% from $644 in 2023.
| Metric | Value (2024) | Value (2023) | Change (%) |
|---|---|---|---|
| Ending Retail Accounts | 3,554 | 4,466 | -20% |
| Retailer ARPA | $695 | $644 | 8% |
Cash Position
As of September 30, 2024, cash, cash equivalents, and restricted cash totaled $13,815,000, down from $15,544,000 at the end of 2023.
Debt Obligations
Leafly has convertible promissory notes totaling $29,228,000 as of September 30, 2024, with an interest rate of 8% annually, maturing on January 31, 2025.
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Resources:
- Leafly Holdings, Inc. (LFLY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Leafly Holdings, Inc. (LFLY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Leafly Holdings, Inc. (LFLY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.