Akerna (Nasdaq: KERN), 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 and year ended December 31, 2021.
Akerna experienced significant growth in 2021, with our enterprise business leading the way forward into 2022
“Akerna experienced significant growth in 2021, with our enterprise business leading the way forward into 2022,” said Jessica Billingsley, CEO of Akerna. “Our platforms continued to serve our growing clients, and we continued to develop offerings that position Akerna as a differentiated provider of technology solutions to the cannabis industry. We acquired two leading enterprise solutions — 365 Cannabis and Viridian Sciences — that delivered robust increases in software revenue. We are pleased with the consistent uptake from our clients in a year of consolidation in the industry with limited new markets opening.”
“Our clients are both getting larger and individually seeing both unit and sales transactions rise. As more of the industry runs on Akerna, we are well-positioned for expected new market expansion and US federal progress. In the meantime, we continue to grow our CARR, grow the number and amount of transactions running on Akerna, and we continue to enhance our open ecosystem of solutions that can run either independently or in conjunction with our clients’ choice of our leading accounting and tax products including SAP, Microsoft, and Netsuite.”
Full Year 2021 Financial Highlights
- Software revenue was $19.0 million, up 59% year-over-year
- Total revenue was $20.7 million, up 49% year-over-year
- Gross profit was $12.6 million, up 67% year-over-year. Gross profit margin was 61% in 2021 compared to 54% in 2020
- Loss from operations was $33.4 million, up $6.6 million year-over-year
- Net loss was $33.6 million, up $6.7 million year-over-year
- Adjusted EBITDA* loss was $7.9 million compared with a loss of $11.7 million in 2020, a 32% improvement year-over-year
- Cash and Restricted Cash was $14.4 million as of December 31, 2021
*See “Explanation of Non-GAAP Financial Measures” below
2021 Metrics and Operating Highlights
- Total SaaS ARR of $20.9 million, up 51% year-over-year
- Average new business deal size up 15% year-over-year
- Q4 New Bookings ARR of approximately $1.5 million, representing a quarterly record for Akerna
- Transaction volume up 48% year-over-year
- Retail order spend up 42% year-over-year
- Acquisition of 365 Cannabis, cannabis business management software built on Microsoft’s Dynamics Office 365 Business Central
- Acquisition of Viridian, cannabis business management software built on SAP Business One
- Launched Akerna Connect, enabling cannabis dispensaries to offer online ordering, loyalty programs, and text messaging
- Secured First Federal Cannabis Regulatory Contract with St. Vincent and the Grenadines
- Issued $20 million in convertible debt to replace existing convertible debt at more attractive terms
- Achieved SAP® Certified Integration with SAP NetWeaver® for MJ Platform
Fourth Quarter 2021
- Software revenue was $6.2 million, up 80% year-over-year
- Total revenue was $6.6 million, up 61% year-over-year
- Gross profit was $3.8 million, up 42% year-over-year. Gross profit margin was 58% in the fourth quarter compared to 66% in the fourth quarter of 2020.
- Loss from operations was $20.1 million, up $9.9 million year-over-year
- Net loss was $19.5 million, up $7.2 million year-over-year
- Adjusted EBITDA* loss was $2.9 million compared with a loss of $1.9 million in the fourth quarter 2020
*See “Explanation of Non-GAAP Financial Measures” below
NOTE:
The foregoing financial results are preliminary in nature. Final financial results and other disclosures will be reported in Akerna’s annual report on Form 10-K 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-K in detail.
Conference Call Details
Akerna will host a conference call, tomorrow, Tuesday March 22, 2022 at 8:30 AM ET and will provide prepared remarks to update investors on these results, with a live Q&A Session to follow.
Any interested parties who would like to participate in the call by phone are encouraged to dial Toll-Free: 1-877-407-3982, or Toll / International: +1-201-493-6780 at least 5 minutes prior to the start of the call. The Conference ID is 13727329. The conference call will also be available via a live, listen-only webcast and can be accessed over the internet through the Investor Relations section of Akerna’s website, https://ir.akerna.com/.
