Seattle-based digital cannabis marketplace Leafly posted a $27.4 million in profit during the first nine months of 2021, according to the company.
The profit number, a 16% year-over-year increase, was part of quarterly and year-to-date financial results Leafly released Monday for the period ending Sep. 30. Leafly's results come ahead of an anticipated merger with the special purpose acquisition company (SPAC) Merida Merger Corp. I, expected to close this quarter, which will take Leafly public on the Nasdaq.
“Our successful results year-to-date, building on the momentum we have generated over the last year, are a testament to the power of our marketplace and the dedication of the skilled, rapidly growing Leafly team,” CEO Yoko Miyashita said in a news release.
Leafly posted $31 million in revenue during the first nine months of 2021, a 14% year-over-year increase. The company said its third quarter revenue grew 21% year over year.
Leafly was founded in 2010. The company allows consumers to shop and research various cannabis products online. According to the company, it had 4,769 retailers on its platform as of Sep. 30. Leafly faced a difficult few months at the start of 2020 when it had to lay off more than 140 employees, but Miyashita recently told the Business Journal the company is hiring again.
With its planned IPO coming soon, Leafly has also made a string of crucial hires. Kimberly Boler took over as general counsel in late September, a role left vacant when Miyashita left the role for her current CEO position in August of 2020. Suresh Krishnaswamy, meanwhile, became the company's first chief financial officer in late September. Earlier this month, Rebecca Warner was named Leafly's senior vice president of sales.
Leafly's growth and planned IPO come as more and more states legalize recreational cannabis. New York, Connecticut, Virginia and New Mexico have all legalized recreational cannabis in 2021. To date, 18 states and the District of Columbia have legalized recreational cannabis.
“We are encouraged to see continued legalization tailwinds across the U.S., particularly in East Coast markets where Leafly is the clear leader and we have tremendous growth opportunities," Miyashita said in a news release. "While our business model has demonstrated success within the country’s current legal framework, sustained legalization momentum provides meaningful upside to our growth trajectory.”
