Retail partnership spending fell during the period.
Online cannabis discovery platform Leafly Holdings Inc. (Nasdaq: LFLY) reported revenue of $10.7 million for the second quarter ended June 30, reflecting an 11% slump from the same period last year, which slightly beat Yahoo analyst average expectations of $10.27 million.
Despite the drop, the profit margin remained consistent at 88%. Leafly’s operational expenses saw a sizable reduction, with the company trimming its costs by 48% compared to the same period last year. That resulted in total operational expenses of $10.2 million for the recent quarter.
The net loss for this period was reported at $1.4 million, a stark contrast to the $14.8 million net income in the second quarter of 2022.
Still, CFO Suresh Krishnaswamy said that the company was working on keep things tight.
“Through diligent management of expenses, we achieved positive adjusted EBITDA in the second quarter, highlighting our efforts toward building a durable and profitable business,” he said in a statement.
Adjusted EBITDA for the period came out to $100,000, a meaningful improvement from the $8.4 million loss reported in the same period last year. Additionally, Leafly introduced updated pricing for select clients, rolling out new rate cards to add value.
Partnerships with retailers held steady at 5,261 accounts, but the average revenue per account declined to $558 from $579 in the same period last year.
On the technology front, Leafly launched a beta version of a new order API. The initiative aims to enhance integrations with point-of-sale systems, which the company said creates a smoother order process for partnered retailers.
“Our new go-to-market initiatives, coupled with Leafly’s strong value proposition has deepened relationships with high-value customers,” CEO Yoko Miyashita said.
“Just as importantly, we continue to enhance the consumer experience, providing more value with deal types, delivery options and deeper search capabilities to drive conversion to sales back to retailers and brands.”
As the company navigates the remainder of the year, management anticipates a revenue of around $11 million for the next reported quarter and project a potential adjusted EBITDA loss close to $500,000.
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