Akerna, a leading enterprise software company and developer of one of the most comprehensive technology infrastructures, ecosystems, and compliance engines powering the global cannabis industry, today reported its unaudited financial results for the quarter ended June 30, 2022.
“We have continued to take important steps to grow revenue, reduce costs, and position ourselves for growth in the future,” said Jessica Billingsley, CEO of Akerna. “While client demand has been mixed thus far in 2022, and with softer sales and bookings in particular during the second quarter throughout the sector, we believe we are on pace for a year of solid growth in 2022, compared with last year. On the cost side, we’re pleased with our gross margin improvement over last year at 69%, and the expense reduction program across the board that we announced in Q2 should enable more material improvements going forward, beginning with our Q3 results.”
Second Quarter 2022 Financial Highlights and Supplemental Information
- Software revenue was $5.9 million, up 33% year-over-year
- Total revenue was $6.1 million, up 24% year-over-year
- Gross profit of $4.2 million, or 69.8% of total revenues, was up 42% year-over-year compared to $3.0 million, or 60.9% of total revenues in the same period of 2021
- Loss from operations was $29.2 million, including a $24.1 million impairment of certain long-lived assets, compared to a loss of $6.1 million year—over-year
- Net loss was $29.6 million and, when excluding the impairment, was marginally lower than last year’s net loss of $6.1 million
- Adjusted EBITDA* loss was $2.1 million compared with a loss of $1.6 million for the same quarter of 2021
- Cash and Restricted Cash was $14.1 million as of July 5, 2022, following the closing of a $10 million financing via S-1 filed/effective on June 29, 2022
*See “Explanation of Non-GAAP Financial Measures” below
Second Quarter 2022 Key Metrics and Supplemental Financial Data
- CARR of $18.9 million, up 9% year-over-year
- Q2 software bookings of approximately $600K
- Transaction volume up 9% year-over-year
- Average new business deal decreased by 9% year-over-year
- Retail order spend down 4% year-over-year
- The company continues to pursue strategic alternatives to optimize the capital structure and strengthen the balance sheet
- Expense reductions announced in June are expected to generate material cost savings in second half of 2022
- The Board has approved Dean Ditto’s promotion from Interim to Full-Time CFO
The foregoing financial results are preliminary in nature. Final financial results and other disclosures will be reported in Akerna’s quarterly report on Form 10-Q and may differ materially from the results and disclosures today due to, among other things, the completion of final review procedures, the occurrence of subsequent events or the discovery of additional information. You are encouraged to review the Form 10-Q in detail.
Akerna is an enterprise software company focused on compliantly serving the cannabis, hemp, and CBD industry. First launched in 2010, Akerna has tracked more than $30 billion in cannabis sales to date and is the first cannabis software company listed on Nasdaq. The company’s cornerstone technology, MJ Platform, one of the world’s leading cannabis infrastructure as a service platform, powers retailers, manufacturers, brands, distributors, and cultivators. For more information, visit https://www.akerna.com/.