WM Technology CEO Chris Beals has “decided to step down” and left the company, the cannabis advertising and technology firm said.
The Irvine, California-based parent company of Weedmaps also had a quarterly loss of $10.5 million, according to a Monday news release.
Doug Francis, a co-founder, executive chair and former CEO of the company, will lead WM Technology while it looks for a new CEO.
“While end-market conditions have been challenging, we can be executing at a higher level by getting more focused and streamlined,” Francis said in a statement.
“We have significant opportunities to expand our moats and build the future rails for the cannabis industry while working to get back to our operating culture of driving profitable growth and cashflow.”
Beals, the outgoing CEO, also left the company’s board of directors.
In a LinkedIn post, he listed some of Weedmaps’ accomplishments during his seven years with the company.
WM Technology’s $10.5 million third-quarter loss came after a $49.2 million profit the year before, despite similar quarterly revenue of $50.5 million versus $50.9 million a year earlier.
The company reported 5,576 average monthly paying clients, up about 25% from the same quarter in 2021. Yet, average monthly revenue per paying client fell 21% year-over-year to $3,019.
For the current quarter, management anticipated “a year-over-year decline in the low double digit percentage area for fourth quarter revenue.”
WM Technology laid off 10% of its staff in August, citing a slowing U.S. marijuana market and economic headwinds.
The company’s Nasdaq-listed shares (MAPS) fell on Tuesday and have lost more than 75% of their value year-to-date.