LFLY - Earnings call transcript Q4 2021

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Operator

Good afternoon. And thank you for attending today’s Leafly Fourth Quarter and Full Year 2021 Earnings Call. My name is Sam and I will be your moderator for today’s call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions] At this time, I’d now like to turn the conference over to our host, Keenan Zopf with The Blueshirt Group. ahead. go please Keenan,

Keenan Zopf

welcome call. fourth and year and XXXX earnings to afternoon quarter Leafly’s fiscal Good

be the CEO, Act Litigation will contain Safe today. CFO, We Harbor discussing Krishnaswamy. of forward-looking With release our Suresh the pursuant me, XXXX. issued statements, press provisions which our to call of Reform Leafly Today’s Yoko are and results Miyashita, will announced the in Securities Private

business expect, in strategies, subsequent duty the to views services as metrics, offered do relied intend, statements Leafly which upon Forward-looking any believe, today date. Leafly These growth include markets not operates, financial our undertake outlook. not will. reflect potential projected statements regarding environment, identified as And statements Leafly’s at views And be anticipate, can as representing our future performance we any seek, only, such and plan, and industry by and be update or of the and opportunities, words, by statements. these results should

statements the differ risk that to that results other material December factors XX, our risk and actual that XXXX. could our for cause actual results. their by with SEC on in as I and to the Please refer statement/prospectus/consent are Merida today’s press known subject risk nature Forward-looking affect from release, discussion of uncertainties expectations, solicitation formally important a the address discussed could to materially matters proxy Leafly, filed statement Merger Corp by

with XXXX. supplement Our XX, proxy statement/prospectus/consent the SEC filed December on solicitation

periodic with SEC. filings XXXX, solicitation January our statement/prospectus/consent other XX, filed supplement on the SEC proxy Our the with and

which over Yoko. which the reconciliation is been on accordance generally we filed available turn the GAAP the of will and accepted me our release, also accounting SEC with has result to measures, are prepared that, not in let call A also call, with in press non-GAAP website@investor.leafly.com. During is the our and earnings principles. With included discuss non-GAAP the financial

Yoko Miyashita

you, second work dedication we record to their a special of as team company in contributed accounts to Ground XXXX. million by brand revenue brands. helping to grow advertising XXXX, and subscriptions We the year-over-year over others an rebuilt expanded Welcome in foundation publicly I in all our over And Leafly around our a retailers Up first and forward our of of to call long-term and added people journey who start new this help which revenue or XX% In for Good Thank all want our from we passionate years, the off and have community the We of for increased us with we growth Keenan. opportunity. as cannabis product growth continued our our retail $XX.X cannabis. XX% X,XXX over QX XXXX. the thanking Leafly delivered and of thrive to and discover growth. new and With look you company. earnings mission became I XX% products unique record influx increase an year importantly, launched We public hard for most investments to We our to a XXXX, capital, industry. world. XXXX set the was welcome for half sharing entire February, you of afternoon, our everyone. shareholders. traded want supported and continue

we head cannabis growing our do millionth information over the ordering reached consumers on those shop To Leafly capabilities before and me is what spend way in leader puts and of brands license growth story, few do, are long-term a for for evolving to market. a let and in-app makes where to the poised simply connects Leafly larger be XXXX. marketplace informed with that our this quickly take to I cannabis. I see count you us we what at It’s to app a in deeper solutions team and through all and our audience new marketplace based app generate along our total this, the from launched But into those retailers. iOS brands want who XX% by cannabis of consumer listings to allow their minutes invested across download. also and that retailers every our accomplish We XX step subscription we journey. for you revenue to We reach customers opportunities Leafly. advertising

information thousands platform of consumers, retailers. barrier reviews, transition out and come rich legal delivery strain of over and understanding a also around complicated The through our and plant stigma For content, safety ordering to the comprehensive and we news plant store persist Lack of online X educational century itself concerns and is education social cannabis articles, prohibition. as product is of million they our products menus, for informational or of database, for to and our strains pick and including retailer adoption. up a

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continue as we in and is results On we addressable to subscriber by penetration America, the delivered starting brands, gain date investments to we’ve large as invest key made XX,XXX retailers line brands. The CAM will a the areas. market in that are and side, market our have North and outsizes significantly brand in of our proven just to which base three estimates expanded top total current retailer

our in subscriber growth base. continued First,

third, tools and products our retailers which for brands. new engagement, consumer and drives for increased monetization, in and Second, increased ROI turn

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to increase well local monetization to this these now execute mature competition markets position As share from increases, a increases, these competition as level. Leafly gains and customers we’re market markets strategy staffed for at acquisition new and retailers

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help positioning us grow retailer brands well marketing to local Our in teams at focused our subscriber sales our markets investments and us are base. and

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we summary, about In scale So investments will for across Leafly prospects for of the the and prospects entire platform. be and here more ahead benefits couldn’t excited may have Leafly us cannabis. the

and to We are our Coast awaiting see East legalization. discussions recreational eagerly continued please sizeable around federal sales and markets

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Suresh Krishnaswamy

you, and is continued all to want This everyone. for time I Thank an thank you your Leafly. support. welcome exciting Yoko, of for

of millions backdrop, consumers connected them they our areas are we’ve I’ll retailers We’ve strategic a we and and the established America. the marketplace in focused North this seek their the time. markets on strength our of comments just how years, spend Yoko my model of investment reach with With of and the meet initiatives expanding focused scale and on that connected over a now and business key information outlined for across majority as our playbook the needs. XXXX. today with top brands Over

financials, pay revenue be a monthly as our who launched to today scaling this me subscription comes our revenue well. I model Before a portion majority listed the spend subscription on newly to of from a The understand on It’s model. platform. our let subscription of retail XXXX, based. few With we’re revenue products into business that jump in minutes accounts important large a is brands for

are contracts We have services brands track renewals. and subscription both for strong multiple with auto and record a evergreen of continuous tiers of retailers

already investments retailer increase opportunities. Yoko to monetization are underway markets penetration mentioned, expand where we in can As accounts existing further increase key and our

through provide in based monetization to bring integrations like these And accounts add-ons. monetization further to the opportunity significant enablement. This monthly advertising with products platform through XX,XXX from from we extension, We brands addition offsite advertising, there’s addition, increased and brands is that revenue today. to Leafly brands features approximately exist comes retail this increase new subscriptions. audience new and value and bidding In auction like functionality and additional for order technology

subscription gives believe activities within and creating accounts Today, grow. revenue be these a plus addressable to we scale expandable model which break brands, our we add-on out into Our advertising model to transparency allows we while as durable and us retail market. monetize what and each by growth today

are these investments growth segments. in each addition, to In tied of

As products become can over model our business launched believe recently mature time, more we predictable.

as At brands represented driven subscribers, investments on in high growth half million, we XX% Now the million, from revenue in XX% we to Revenue million in from we QX, which delivered XX% In This of growth of a $X ads, of number financials. a to year. led an increase increase delivered more over to our monetization lower added up for This from XX% or activations products like growing adopt these $XXX, to $XX.X was year-over-year. markets of and of and second We significant on and benefit fourth Revenue $X.X from contributed population year-over-year in products year-over-year quarter, the to XXXX, revenue of decline XXXX XX%. lower the year. XXXX. QX as of compared with the provide the revenue projections. of online in by retail million. lower in a lower ARPA accounts XX% line sponsored the with revenue XXXX, revenue $XX.X add was strategic retail $XX benefits year-over-year grow in subscribers million, point, the XXXX year-over-year advertising demand new This growth from level, strong up revenue of holiday saw previous In opportunities in retail platform. is base $XX per of retail on continued expected they price added were future retailers account to capabilities. a as accounts. at ordering quickly to greater a us tradeoff of a our we X,XXX decision accounts average Many our of

active from we introduce Revenue strength from in over saw monthly brands of also as or in a to pandemics down were as increase saw XXXX platform, the as MAUs users from on XX% XXXX million, in million peak were We result solutions consumer was million XX $X.X activity brands new they lockdowns. XXXX we e-commerce our XX.X Average products. driven in a when an XXXX. of

in traffic in Leafly As XXXX, we a saw started the properties. economy reopen broader to to normalization

margin in business with XX% gross model XXXX. light Now gross over margins. margins. quarter the turning XX%, fourth asset to Leafly XXXX, margin On basis, in in total is XX%, driven and strong an a increase the was increase proven was gross Total a full increase primarily XX% scaling revenue. year an gross over in QX by

leadership end note and primarily end was in we the operating the our nearly and on marketing at following business operating marketing to at sales financing of expenses. teams. levels In XXXX. building advertising and Moving The and at our convertible breakeven investments senior making out of XXXX, started June, in

Merida’s XXXX are drive to XXXX. onboarded. $XX.X investments marketing and marketing expenses and operations fourth relating fully includes sales new top for $X.X Product ramp in expenses from sales $X.X increase costs increase operating and million million and million. up our employees the QX. an D&O as the coverage expenses in in complete expenses G&A were in The to quarter Sales up line expect their were expenses beyond G&A combination. for were and million million, We Total to growth were $X.X QX in insurance engineering business and additional $X.X up prior

million less compares million, This in anticipated $XX.X For year, originally were total the XXXX. $XX.X expenses in than million to spending approximately full operating we $X XXXX.

in the XXXX. million, million. $X.X full million losses increased the interest And a Adjusted compared in fourth net and million million. periods loss of and $XX on $X.X year compared was loss year is quarter EBITDA million loss to $X.X of to Full same net net million year. the for million in XXXX, a significantly EBITDA for $X in in loss This convertible $X.X of investments in million net $X.X respectively GAAP previous loss the and As $X.X to was expense was adjusted QX notes. million year, previous was over included compared the $X.X loss $XX

the combination the February cash ended of issuance business through sheet. balance with We $XX.X turning convertible and Now added in XXXX related cash. million We with year the notes. to our in Merida

guidance. We’re public a in position excited company, right about to now for both NASDAQ legal markets a in also that markets remains to they are investments dynamic become newer it traded in on the in but legalized. better the the industry cannabis much we’re opportunity as XXXX capitalize to execute and And poised now cannabis space. remains and on with we’re XXXX making our and growth, that well we’re And current excitement The beyond.

example, markets growth gets hurdles existing few cleared. our impacting For the perspective a as in outlook retailers short-term are regulatory licenses of backlog awaiting

We’re hiring also slower than taking into pace for consideration engineering talent. expected a

areas: Our and investments by and tools driven sales and advertising to BXB growth in increased Growth our We in platform. brand and products second and market revenue retail we year. strategy revenue our drive in ad our subscription engineering talent improved following the in the gain the base local underway, driven traction higher investments them from of expect are monetization and both growth anticipate and by half

growth and year XXXX, we are projections revising full the at XXXX For $XX to revenue million between midpoint. the our representing XX% $XX over million

largest that like begun factor and process markets the legalized in not of up any Jersey reminder, including York a that sales, new use setting New As their the in markets East recreational does are New this guidance have not markets. adult Coast

expenses. we’ve been our very thoughtful projections, operating revenue revised With the about of

million million $X.X to includes in to the head in investments EBITDA costs that company expect count, $XX and and the product earlier. an year, annual we million million. For be initiatives and $X.X Yoko loss public This $XX outlined full marketing between adjusted additional estimated

to year color of was an additional with felt it to we call, provide indication Going forward, we’re and million along attracting. this XXXX. to provide Due in $XX.X transparency for guidance plan to to we’re how QX throughout timing our is revenue the appropriate full year as tracking approximately the that

we’re So forward XXXX, growth. a our top and to committed very driving remain pleased to with investing on We in expanding disciplined approach focus marketplace. with look performance in the our closing, line and

our our invest legalized and serve in our clear to in making and critical the see consumers, legalized become more markets all as that, it existing markets With more I’ll and We operator enhancements for call and that continue up over TAM expands will become you. opportunities in We timetables platform brands. long-term planned markets open retailers, for sales investments questions. Thank for to the turn growth. the newly

Operator

Thank Instructions] comes Helfstein line your of of with [Operator you, from proceed first My Suresh. question you Jason, question. the may Jason Oppenheimer.

Jason Helfstein

you that Thanks. in talk to the factor Maybe have control, your impediments about growth. the

So a because to you spending maybe harder little people. did talk about less it’s R&D hire

you the Thank on from deploy is other the online, the this versus new side, customers? bodies customer factors about putting that kind for talk customers then However, the just impede who you the to how much relative are how from that separating of existing you. could money online. but Street revenue more customers boosting on are And sales getting

Suresh Krishnaswamy

as impacts Sure. answer to and our chime industry from the we’re let in some that the in of it relates then the on I’ll forecast. I’ll question financial, seeing Yoko

our growth our to So, more opportunities as delay company. We a plan. the and a in this outlook changed as has of our see long-term be implementation about of nothing clear,

of year. impact are that the XXXX. Jason, roles year, team leadership look our current the senior to here we XXXX, added We factors into for some of things expectations and key this first our of as late So raised, some to this in quarter you the and that ahead key

we’ve of and at term. for initiatives year. this both done Ground modeled So And we’ve to product point tied the We’ve we that from we’ve position have one into across another is growth at revenue this sales to long over taken the better look business. specific reorganized growth visibility things Up. also And the year and the the

side, buckets revenue on our there’s investing monetization of existing customers, well we’re of as new in include So products roadmap. that on the areas. as these And both

technical labor is six market. pace hiring the the slower roles. ago, a it’s hiring On of than months for especially And side, we anticipated tough

PDE For many still hires sales of the full ramping in made on contribution. still up [ph] we’ve ramp that quarter to in and

that factor another that’s see. So we

progress the of is these new and and investments our good many feel in estimates. roadmap. we’re the revised making the this to So continue delayed products of we good launch But scaling on about we make

Yoko Miyashita

response. awesome really Suresh. Nothing add a there, to That’s

Jason Helfstein

Thank you.

Operator

Jason. you, Thank

of Gerald Our Gerald, Cowen. proceed. next question from please is Pascarelli

Gerald Pascarelli

very Hi, you good evening, thank much for and questions. the

Just on guide. the top line

and be versus going there into Is subscription color increased understand your you that maybe of XQ, it’s would halfway million out rate trying advertising, can just think it between expect million, retail to pretty and clearly you I the you both, Thanks. I’m doing end a end. to end are any, what’s high range and it be run you a a helpful. fees what’s there that of the the or combination to or it guide? back end Any but the XX year, embedded laid the high at $XX.X you’re clear increased given combination when and the like increased of look provide like million low kind low driving and to of guess in XX be I subscription

Suresh Krishnaswamy

positive very about, Yes, products those menu out those. sure, year. And building QX, QX, revenues talked like we putting good like this with portal. feel adding we’ve to Gerald. had success QX We initiatives about and look guidance products bidding Gateway on to to in now just today. on And new And merchandising. delivery around in launched going new initiatives forward about And right. really about we’re the It’s we’ve we’re the back quite good launches execution we all

we’re the on. and timing hiring a That’s and have a product lot products that we focused planned of new roadmap need something We to So of talked we talent. very have about we execute.

take I’d to we them to they in that we’re a the medium bit today. That get is into a That’s we have But could say factor term. overall to factor up be big get And predict. how other once providing ramp. to the long confident regulation. we’re guidance very that swing in the to visibility near addition In tough

Yoko Miyashita

add little Let a color the me bit on of just regulation.

Sorry, Gerald, ahead. go

Gerald Pascarelli

no, ahead. Yoko, go No, please thanks. no, Sure

Yoko Miyashita

just bit Florida, No, swings openly layer where we’ve right? challenged swing wanted the and Department of and just cause large the to Health regulation position on risk significantly a about ability on the That on for that in a customers to online turn on ordering to states I like quickly. through ability medical about so headwinds in challenges tailwinds, ordering our marketplaces, We’ve right? these our – That in can is our factors the cause And the has us positive. talked market.

also tied about got up know challenges licenses Illinois, XXX litigation. you’ve about in where in We

become in we’ve available. up strong issued that soon – licenses and is as those And get market. ready, We’re got these they our foothold partners a set platform to onboard as

we prepped have it’s I to playbook that things those ready those on get as to are quickly here our and issued. think move So and visibility pretty things licenses execute

Gerald Pascarelli

seems there. that’s your platform like your it but outlook Suresh Got the just squeeze pick would consumer super as in wood, thoughts traffic to love helpful and Thank is on up you. color continuing it. one consumer another mobility to get for I could XQ a knock levels. certainly in, on from particular Yoko, to If

relationship would versus specific more over XXXX, your Thank you. mobility you do course to like of great. be that to traffic the consumer you about platform? how look Any as between out color think there So

Yoko Miyashita

products in two markets you why traffic saw some really the to with we post-COVID to are We peak and stores no, them and only match and We’ve could right which vectors, peak’s for an Yes, to at with locked that consumer the for this come for the with in people at but we is ability need strains their of right? sort site amount people into COVID, the and not saw look also homes, traffic wanting that. traffics natural shopping, go of back reasons order normalized, changed, has that of were seen and those their online needs. unusual a us

really think better we’re about and if at think traffic, question we answering for consumers. So getting on building I really focused that

So, business, of content very kind of we’re that consumer underlying refine top funnel, to focused answers historically SEO really but continuing the that powers need. very and

Gerald Pascarelli

Perfect. I Thank color. back will the hop you very much into for the queue.

Operator

Our question Capital next is of [Operator Gerald. you, Des from Lauriers Eric, Eric Group. proceed. Craig-Hallum please Instructions] Thank

Eric Des Lauriers

Great. Thank questions. my you for taking

we out So you guys the markets at have the of increase a accounts. time, retail you increasing, look competition seeing to And white out, have as pretty of clearly as which within lot are steadily increase acquisition number we leads to space same pointed customer spend.

So, that long and in increase pretty both sort is accounts ARPA of term clear.

you maybe Illinois that could you. that? ARPA Just those more color expect accounts provide or Florida term. mentioned might wondering between like if on Thank out some of you you bit And how challenges growth how in a versus to shake impact in near the

Suresh Krishnaswamy

Yes, sure.

good when came that from we in continuing. very a adding off retail of we look accounts QX at So terms

really we’ve at looking and it’s success the important markets of level. the really at As playbook understand we our releasing market the local the market market look And at that level and is had what what seeing we’re it’s we’re penetration ARPA of local an and average the to at at level seeing that we’re to in where that them up. along we’re to we our And start are last seeing made after year roadmap And certainly with going a go we markets strategic that and the the the investments at going they’re this product the and expecting ARPA accounts year target that decision up. curve. they sign

both So fronts. growth on it’s Eric, I it’s think, growth –

sales to accounts. size of the our retail add and mean, going we’ve than certainly I looking doubled We’re more team.

the and going the expand been has phase. in this to opportunities roadmap. XX the in market Just roll since products expand August to land And we’re managers I new strategy. year, to basically really And support out, strategy, see our see see going think which over monetization going local to we’re we’ve of as we lot customer to we’re our for support a hired

Yoko Miyashita

a we’re move strongest of couple of point. launched are We some threads bidding ARPA able markets. on as we pull Let our upwards me that And result we illustrate launched what bidding are to in and that, mentioned we of our just markets. targeted a those this to in seeing

in market get to and to to I.e., faster to you’ve got marketplace dynamic. have be it, But us it, tools and sufficient the kind concentration establishing make retailers platform the sufficient the back drive marketplace work, see we’re competition of bidding augment to make we on piece. go which to right is have on happening, model both why consumers that there’s we Now investing and of context. for a it to got and

execute, were, hey, allows over win to hand from and The integrated over were time. Leafly. you market were let – We order also and understand kind the that able menu are that’s the those instance? level other you share, cases, great on about through their menu increase at drive And our did upload for enabling. a Illinois, having tailwinds what to Illinois help me coming asked In partner, do excited that the in about spend what would Florida combat the market local to XXXX tactical start then to markets, hand little specifically retailer and menu we it’s strong impediments particular, increasing through market and having in single platform don’t a footholds local that took like onto we’ve a each, us see got of forward. to we Jane we maintain friction those very us and give color that that. on that calling do to Leafly Jane every as a framework What to was work of many we that regulation in thing

Eric Des Lauriers

maturity sense makes you we very think sales penetration and that you’re marketing that Can leverage That’s you these that and leverage great. within of see just fall. just increases Thank a helpful. such And really markets, of that just I Okay, number operating I back, increasing in those when kind operating sort overall ARPA lot the think investments ARPA of the of more then will specific lines, you of should level you that sort and the guess along that taking increased high step of today, basically that accounts see here? just in that you. and then given have a that making how

Suresh Krishnaswamy

the thinking and of disciplined by at. the to be need in the on the sales investments markets and market those local is that decisions states they’re what and We’ve really depending through been to target make timing local sure. in are sort we Yes, going very part of through able we’re reorg

mean, OpEx sales at midpoint. XX% better have high we in I side. the a about was when growth up, we’re So just of few this roll at all markets leverage give high where we for total seeing X we’re XXXX. certainly looking I we can points seeing marketing XXXX, and looking And And comp. on sort XX% share of growing penetration, about you stock-based of in And the pricing at are ARPA, OpEx data year. you that see OpEx that

going is there to So investment. more be

And to penetration more realizing value bidding. in the the leverage second plan just we our initiatives margins. value and that I we’re that think more seeing penetration revenue in of lead think platform with. markets higher up and through going is to competitive services retailers these start year get to And from forecasting through I on through the half better products a be to and as pick them delivery more in increase of terms the we’re we just of combination have like adding our and market definitely driving

Eric Des Lauriers

It’s very helpful very much. you great. Okay, color. Thank

Suresh Krishnaswamy

Thanks. Sure.

Yoko Miyashita

Thank you.

Operator

Eric. of take please Pablo, you, Zuanic proceed. from now We’ll question Cantor last Thank Pablo our Fitzgerald.

Pablo Zuanic

you. thank Yes,

but a decline to the question, So XQ XX.X it’s fourth in quarter. you a very XX right, something look, compared for point sales guiding in are sequential simplistic

you maybe I also that in enter can that, for to having you whether about, to a especially the in explain and if basis, as side So retailer about talk do new prices subscriptions. But stickiness right. adjust talked in of understand market. per terms market subscriptions the customer you’re you

have package, wondering subscription in adjustments the state, answer you side. up, lower You Thank subscription pricing you. but may existing but can if that retailer a to a any need whereas I’m offer I’ll first. follow we on

Suresh Krishnaswamy

Absolutely. sure. Yes,

the our in brands. had at look to So, just doesn’t just year, and When and expect second lower of inventory based up anticipate holiday take throughout you of have growth that, targeted QX, the on the the In right, year. second year-over-year a to growth We year. the investments big half here. right? benefit seen we picture in QX So do rate pick we increased roadmap we our product have hold, as the modestly of growth particularly half

we’re QX QX, build gateway and continue going mentioned, year, out I launching like products rolled delivery That’s bidding this something that also We as well. a right. menu just as new to to And in success portal merchandising. we in had

So product roadmap. we have a

and increase as increase We’re we to the we out the confident monetization. have that that’s going roll and to we’re very through progress new products going leverage year,

In And and as to say products. is customers. our most the revenue product, terms by new well driven it’s mix, come as can fair I of newer acceleration revenues from base, to That’s subscription from existing that that of of new model. say stickiness be existing going increased that monetization monetization customer the increased

So like visibility we feel into the have reasonable quarter. we

Yoko Miyashita

a just want comments to of layer on there. I couple

stickiness about top stickiness talked and is there market and correlation. a You in pricing, our

looking retention stickiness, great But plus So We at zone in we the They’re publicly prices subscription are our They’re just we’ve this to not see, of you want the that would you we’re that our platform. is is retailers. are like have we for be it that retailer the The of in where that. a you that Leafly And in on flip market pricing not of Arizona, concentration a look afford cannot markets And side emerging situation talking us. first markets, reflected the is have in power but our low not are top the to and driven. platform. kind ability. and with driven. market for becomes zones to just we driven market or market level, that’s is X,XXX market we a foremost, nascent pricing on what Arizona disclosed. very see when if a a levels and

price same that point. at You can’t price

our that local strategy do all each price market go-to-market those about accordingly. the And our how attributes conditions? designing unique is So and is market you understanding market of for what

Pablo Zuanic

X,XXX of Michigan, numbers plus right. New XXX right. lot doing is Jersey, All XX from the in and a Yoko. up, accounts follow accounts, talked background accounts in I this you’ve then U.S., Eastern more plus your those suppose Oklahoma, Thank you to Pennsylvania. when have coming maybe know talk I a question. But to And maybe I you, right. exposure about California, but I the if be just about mean, start a

that spending to I’m facing are trying in So you revenue more to can more color and a your of regional dynamics sense am I can’t right. if if I’m you I’m just are more me? I understand the facing, trying And just if about get a platform? at alternatives Massachusetts exposure more mean, there the retailer give for terms a customers I’m those are talk also of region. by to competition, What I’m and company. better on that mix coming least,

Thanks. also XXX and right. chunk because I have something be sounds are facing But share great you big and Oklahoma like then mean, can terms that, to of means there, again, California the you dynamics in a revenues. number, If that a just

Yoko Miyashita

and reflect see figures Yes. And disclosures, does necessarily read TAM Oregon our markets, our and Arizona if revenue our disclosed. that revenue three But not California, penetration. top those you are you’ll like

medical drive our are smaller that you. are unique but states. to this you marketplace? in dynamics service really a that of significant and actually So huge interesting know, think I you’ve could And What specific that dynamics pricing show frankly, within business and zones got Yes, representation picked the kind number much within on market get nuance up massive there And you’ve as in like, does we population. Oklahoma. a retailers Oklahoma,

those what’s in particular it a understanding again, to and serving needs. market back goes So happening

mentioned You lot mentioned right one, us. California that structural challenges, some great still licensed under of are, spend legacy frankly, market. with a for the Michigan, Those into you are a bringing California’s penetrated

And market. on the we all And it’s How think have we product make is, sure the implement the you from how making Jersey today, sure nuances that gotten the So to does our opportunity. will consumer give do else rec I first they’re delivery delivery have we menus right you XXXX? strategy. dual one today, those from be the as to med and that, platform going after two will who set stores platform really strong there even and that of to sure California all hey, after something say, that What out audience. is, right in a be sell – we I East product, make to the that’s expand our are need us can them? We product set which land with talk in Coast, mentioned, providers that us for to rolling go perspective, New and including already Jersey, our reach haven’t on New about space they go in medical tools need

Pablo Zuanic

course like platform you. one on Are you you XXX about on can? a if close talking your last sounds Thank there? it. brands, about that may just type in of what color just so And you XX,XXX to do of or penetration if Got I big one you the talk there, that number. have brands Can XX,XXX

Yoko Miyashita

we break the as number. we a remember to significant could down some which frankly, that you, just THC And brands, the well to that non-infused number on Yes. to infused how the of be as is we And it than brand see. higher based both serve reporting get

low again, of ads is presence does that sponsored brands market, by kind Those in consumers, funnel connect use are channels early days, to depending audience. menu and to challenges that build on that engaged are that to reach about for and are on trying hear the points entry the excited all been menus that is adding are subscription of that, providing retailers. we and bottom we you a in And consumer. ads. Those here. And point there valuable give scale and We this trying new engagement front and to I They’re what really get to about retailer where we leverage but that you find what be because intent similar sponsored are of profile, then us this of the pricing different are subscription. get in the shopper They product with language face they with to audience. why brand super products advertising is ability high are very brand’s that incredibly the clear retail have talking to – about want merchandising. and customer advertising size

Pablo Zuanic

you. Thank

Yoko Miyashita

Pablo. Thanks,

Operator

Yoko Thank I’ll you, time, any now this At remarks. for to the back over conference Pablo. closing hand

Yoko Miyashita

call. QX look Sam. you, earnings. joining you And Thank We first to again everyone earnings forward our for our with us for for thank you speaking

Operator

That you your participation. full year the for Thank earnings quarter and call. fourth all Leafly concludes XXXX

your disconnect You may now lines.

Leafly (LFLY) 30 Mar 222021 Q4 Earnings call transcript