Akerna Reports Software Revenue Increase Of 40% YTD, Double-Digit YoY Growth For Q3

Akerna Reports Software Revenue Increase Of 40% YTD, Double-Digit YoY Growth For Q3

Akerna KERN reported on Monday its unaudited financial results for the third quarter, which ended September 30, 2022.

The company saw a “double-digit growth in reported software sales for the quarter,Jessica Billingsley, CEO of Akerna, said.

The Denver-based company also implemented aggressive cost control measures throughout the year resulting in the narrowing of its adjusted EBITDA losses.

“We continue to focus our resources on building a stable and sustainable financial model at Akerna, and we are well-positioned for future growth,” Billingsley continued.

Q3 2022 Financial Highlights

  • Software revenue was $5.3 million, up 17% year-over-year.
  • Total revenue was $5.4 million, up 5% year-over-year.
  • Gross profit of $3.4 million, or 62% of total revenues, was essentially flat with $3.2 million, or 62% of total revenues, in the same period of 2021.
  • Loss from operations was $0.8 million, which included a $3 million benefit, attributable to an acquisition earn-out adjustment, compared to a loss of $3.7 million in last year’s same period.
  • Net loss was $2.3 million compared to a loss of $1.5 million in last year’s third quarter.
  • Adjusted EBITDA loss was $1.4 million compared with a loss of $1.5 million for the same quarter of 2021 and compared to an Adjusted EBITDA loss of $2.1 million in the second quarter of 2022
  • Cash and restricted cash was $9.5 million as of September 30, 2022.

Q3 2022 Key Metrics

  • CARR of $16.9 million, up 3% year-over-year.
  • Q3 software bookings of approximately $440K.
  • Transaction volume up 10% sequentially.
  • Average new business deal size decreased by 16% year-over-year.
  • Transaction dollar amount down 10% sequentially.

Other Key Developments

  • The company continues to explore strategic and financial alternatives to strengthen its balance sheet.
  • Closed an equity transaction providing net proceeds of $9.2 million on July 5, 2022.
  • Announced that shareholders voted in favor of a 20-for-1 reverse stock split which was effectuated immediately thereafter in order to maintain compliance with Nasdaq listing standards.

Price Action

Akerna’s shares traded 7.75% up at $1.53 per share during a pre-market session on Monday morning.

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Photo: Courtesy of geralt and Kindel Media by Pixabay

Posted In: financial reportJessica Billingsleymarijuana salespremiumrevenuethird quarter resultsCannabisEarningsNewsPenny StocksMarkets

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