Akerna (Nasdaq: KERN), an enterprise software, leading compliance technology provider and developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), today announced financial results for its quarter ended September 30, 2020.
“I’m thrilled to report we achieved 40% year over year software revenue growth in this quarter and have increased our total SaaS ARR by 44% over this same time last year,” said Jessica Billingsley, CEO of Akerna. “Looking forward, we are entering a period of massive market expansion. Five new states have approved cannabis via ballot measure in the recent election potentially representing approximately $18M in new TAM for our software and services offerings, and many more states and countries have legislative initiatives proposed over the coming months. Our scaled ecosystem is uniquely positioned to capture these opportunities, with the most robust cannabis technology suite available.”
September Quarter 2020 Financial Highlights
- Software revenue was $3.2 million, an increase of 40% year over year
- Total revenue was $3.7 million, an increase of 16% year over year
- Gross Profit was $2.0 million, an increase of 9% year over year
- Net Loss was $4.7 million compared to a net loss of $2.3 million for the period ended September 30, 2019
- Adjusted EBITDA was ($3.0 million), compared to ($2.2 million) for the period ended September 30, 2019
- See “Explanation of Non-GAAP Financial Measures” below
- Cash was $14.3 million as of September 30, 2020
September Quarter 2020 Key Metrics
- Total SaaS ARR of $14.1 million, up 44% year over year
- Average new MJ Platform order up 94% year over year
- MJ Platform transaction volume up 181% year over year
- Retail order volume up 68% year over year
- Retail order value up 127% year over year
- New Bookings ARR of $1.2 million
September Quarter 2020 Operational Highlights
- Close the acquisition of Ample Organics
- Signed an agreement with Priority Technology Holdings, Inc. to provide CBD and Hemp retailers that use Akerna’s Point of Sale products with a credit card payment processing solution
- Launched MJ Retail, a first-of-its-kind proprietary software technology designed to provide merchants and consumers with a flexible and mobile-friendly experience offering a clean and lightweight Point of Sale solution that connects to the Akerna eco-system and which can leverage our Priority payments partnership
- Announced the release of MJ Analytics, a next generation cannabis data analytics platform made possible through a partnership with the Business Intelligence firm Domo
- Akerna consulting clients won 100% of the medical cannabis dispensary licenses awarded in Iowa
- Closed a $12 million follow on offering
Conference Call Details
The Company will host a conference call Thursday November 12, 2020 at 8:30am ET to discuss its financial results and business highlights. A question and answer session will follow prepared remarks.
To participate in the conference call, please dial 877-407-3982 (domestic) or 201-493-6780 (international). Participants should request the Akerna Corp. Earnings Call or provide confirmation code 13713080. Please dial into the call at least five minutes before the scheduled start time.
A replay of the call will be available through November 26, 2020, at (844) 512-2921 (domestic) or (412) 317-6671 (international). The passcode for the call and replay is 13713080.