Clever Leaves' Q4 Revenue Up 25% YoY, Introduces 2022 Outlook & New CEO

Clever Leaves Holdings Inc. CLVR reported its preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2021, along with its 2022 outlook.

Q4 2021 Financial Estimates vs. Same Year-Ago Quarter

• Revenue is expected to increase 25% to approximately $4.2 million compared to $3.3 million.
• Gross profit is expected to increase 5% to approximately $2.4 million compared to $2.3 million, with a gross margin of approximately 56.8% compared to 67.9%.
• Net loss is expected to range between approximately $17.1 million and $17.5 million compared to $0.9 million.
• Adjusted EBITDA (a non-GAAP number defined and reconciled herein) is expected to come in negative and range between approximately $(7.3) million and $(7.7) million compared to $(6.3) million.
• At December 31, 2021, the company’s cash, cash equivalents, and restricted cash are expected to be approximately $37 million compared to $79.5 million.

Full Year 2021 Financial Estimates vs. 2020:

• Revenue is expected to increase 27% to approximately $15.4 million compared to $12.1 million.
• Gross profit is expected to increase 28% to approximately $9.5 million compared to $7.4 million, with a gross margin of approximately 61.7% compared to 61.2%.
• Net loss is expected to range between approximately $38.8 million and $39.2 million compared to $25.9 million.
• Adjusted EBITDA is expected to range between approximately $(24.4) million and $(24.8) million compared to $(23.3) million.

“We generated strong revenue growth year-over-year and maintained our prudent approach to cost management, which allowed us to drive continued margin benefits for the full year,” Kyle Detwiler, the company’s CEO, said. “We have executed on the milestone targets provided in our revised 2021 outlook, and I am proud of our team’s relentless dedication to sustaining production efficiencies and advancing our distribution efforts across key international markets.”

The company expects full year 2022 revenue to range between $20 million and $25 million, with a gross margin of between 50% and 55%.

Clever Leaves also projects that adjusted EBITDA will came in negative and range between ($23) million and ($20) million. The Company expects approximately $2 million to $3 million of annual capital expenditures, representing an estimated 70% reduction compared to 2021.

Management Shake-Ups

Separately, the Boca Raton, Florida-based company revealed that Andres Fajardo, currently a director and president of the Clever Leaves, has been selected to succeed Kyle Detwiler as CEO, effective March 24, 2022.

Detwiler will remain CEO until March 24, 2022, to ensure a smooth transition, and he will continue to serve as the Company’s Chairman until such date.

“Today’s leadership changes are the culmination of a succession planning process that our board and Kyle have worked on together,” Elisabeth DeMarse, who has served as an independent director of the board since December 2020, said.

Fajardo brings more than 20 years of management experience to the company.

He has served as a director of the board since December 2020 and as president since 2019, and in various other roles at the Company since its establishment in 2016.

Prior to Clever Leaves, from 2016 to 2018, Fajardo was a founding partner of Mojo Ventures. He also served as CEO of CoIombia-based Q Outsourcing, and as a principal member at Booz & Company from 2000 to 2010.

Photo: Courtesy of Benzinga