Leafly’s Tech Innovations In The Marijuana Industry Lead To 10% Annual Revenue Growth
Leafly Holdings, an Online Store that Sells Marijuana, Fired Another 40 People This Week, Which Is 21% of Its Workforce. the Layoffs Happened a Day Before the Company Released Its Full-Year and Fourth-Quarter Financial Results.
According to a news release about Leafly’s earnings from Thursday, the Seattle-based company made $47.4 million in revenue in 2022, which is a 10% increase from 2021.
Last year, Leafly’s operating costs went up by more than 40%, but the company still made more than $5 million in profit.
Leafly CEO Officer Yoko Miyashita said in a statement, “We have been very focused on managing our expenses and cash flow.”
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“Advertising spending is expected to stay low in 2023, so we’re building stronger relationships with our customers and making our teams work better.”
Leafly let go of 56 workers in October, which is what led to the layoffs on Wednesday.
In the last few months, there have been a lot of layoffs in the cannabis industry in North America. This is because companies are trying to cut costs after the price of marijuana dropped, sales growth slowed, and it became harder to get money
This is likely to keep happening well into 2023.
Leafly’s earnings report also showed that their total operating costs rose by 43% from $48.7 million in 2021 to $69.5 million in 2022.
The company said that the increase was because of the costs of hiring new people and running as a public company.
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Leafly Began Trading on The NASDAQ (under the Symbol Leafly) in February 2022.
In 2022, the company had a net income of $5.1 million. In 2021, it had a net loss of $12 million.
Leafly said at the same time
A loss of $23.2 million in adjusted EBITDA, which is more than the $9.4 million loss in 2021.
A net loss of $5.8 million in the fourth quarter, compared to $5.1 million in 2021.
The reduction in staff is expected to cost the company about $700,00, but it will save $8 million in costs starting in the second quarter.
A Leafly representative told the media that employees were sent emails on Wednesday about the layoffs.
“The cannabis industry is going through a time of big changes and uncertainty,” Miyashita said.
“Over the past few months, our sales have been hurt by a weaker holiday season and a slower-than-expected start to 2023, when clients cut their advertising spending.
“Our customers are tightening their belts, which means they can’t spend as much on Leafly.”
Employees were told that their jobs would not change if they did not get an invitation to a meeting with leadership and human resources by Wednesday at 10:30 a.m. PT.
“These kinds of changes are hard because they affect our teammates, coworkers, and friends,” Miyashita wrote.
“People we’ve worked with and gotten to know through Leafly’s ups and downs.
“I completely agree with that, and I’m very sorry that things have turned out this way.”