Seattle-based digital cannabis marketplace Leafly Holdings Inc. (Nasdaq: LFLY) said quarterly revenue grew even as average monthly active users declined.
According to the company's second quarter 2022 financial results, released Thursday, Leafly generated $12.1 million in revenue during the quarter, up 13.8% from the same time period last year.
"We’re also bringing more tools, greater flexibility and reduced friction to retailers and brands, creating a seamless experience between consumers and our supply partners,” CEO Yoko Miyashita said in a release. “Despite the uncertainties of the current macroeconomic environment, we remain committed to maximizing efficiencies and prioritizing projects that will result in the highest returns.”
Leafly saw a 28% year-over-year decline in its average monthly active users, however, which it attributed to a spike in online visitors during the Covid-19 pandemic. The company had 7.9 million average monthly active users during the second quarter, down from 10.9 million during the second quarter of 2021 but up from 7.7 million during the first quarter of 2022.
Leafly, founded in 2010, allows consumers to research and shop cannabis products online. The company went public in February through a merger with a special purpose acquisition company. Miyashita, previously the company's general counsel, took over as CEO in August 2020. Leafly rang the opening bell on the Nasdaq on April 20, the unofficial holiday for marijuana.
Like many tech companies, Leafly's stock has struggled in recent months. The company's stock was trading at $11.34 per share in early May but has since dropped about 80%, closing at $2.18 on Friday.
“We made progress in the quarter on our long-term objectives. Concurrently, we have encountered challenges in our less mature markets and seen signs that customers are more cautious with their ad budgets,” Suresh Krishnaswamy, chief financial officer of Leafly, said in a release. “We remain focused on our execution and managing our expenses carefully.”
