MAPS guided significantly below prior guidance for 4Q21 and 2022, blaming softness on a demand shift to the illicit market and slower than expected license issuances.
Our more detailed review and updated model for Premium Members can be found below.
While the long-term cannabis exposure growth narrative seems to be intact, the issue is that it appears the company will be generate lower margins for longer than expected as it grows requiring more acquisitions, and the growth will be slower.
The next catalysts will be:
note: the commentary below was exclusive to Premium Members from November 16, 2021 until February 25, 2022 after Weedmaps reported their 4Q21 results and reduced margin guidance more than we expected in November – but guided to where we expected if you ignore the $30 million of discretionary growth investment