Clever Leaves Reports Fourth Quarter And Full Year 2022 Results

Clever Leaves Holdings Inc, CLVR reported its financial and operating results on Thursday for the fourth quarter and full year ended December 31, 2022. Fourth Quarter and full year 2022 revenue increased 71% and 90%, respectively. Total annual revenue growth was 16% year-over-year. 

“2022 was a transformational year for Clever Leaves as we executed on our refined growth strategy,” said Andres Fajardo, CEO of Clever Leaves. “Our full-year revenue growth exceeded our revised 2022 guidance target, reflecting the commercial traction we have gained across our target markets in our cannabinoid business, which grew 90% in 2022. We have also steadily streamlined our cost structure throughout the year, driving a 30% year-over-year decrease in our G&A expenses and sales and marketing costs combined. Similarly, our capital expenditures decreased by 82% in 2022 compared to 2021.”  

Fourth Quarter 2022 Summary vs. Same Year-Ago Quarter

• Revenue increased 10% to $4.6 million compared to $4.2 million. Cannabinoid revenue increased 71% to $1.9 million compared to $1.1 million, and non-cannabinoid revenue was $2.8 million compared to $3.1 million.
• Gross profit, including a $0.9 million inventory provision, improved to $0.7 million, as compared to $(0.3) million gross profit in the year-ago quarter, which included a $3.0 million inventory provision. 
• Gross margin, which included such inventory provision of $0.9 million, was 15.3% compared to (6.9)%, which included such inventory provision of $3.0 million. Adjusted gross margin (a non-GAAP financial measure defined and reconciled herein), which excluded such inventory provisions, was 35.2% compared to 64.1%.
• Net loss was $28.8 million compared to $24.0 million, driven primarily by a $23.1 million restructuring charge the Company recorded during the quarter. Net loss in the year-ago period included an $18.5 million non-cash goodwill impairment charge and a $3.3 million non-cash share-based compensation expense.
• Adjusted EBITDA (a non-GAAP financial measure defined and reconciled herein) improved to $(5.2) million compared to $(6.6) million.

Full Year 2022 Summary vs. 2021

• Revenue increased 16% to $17.8 million compared to $15.4 million. Cannabinoid revenue increased 90% to $6.1 million compared to $3.2 million, and non-cannabinoid revenue was $11.7 million compared to $12.1 million.
• “Throughout 2022, we worked to align our commercial efforts on a select set of core international markets, while optimizing our cost structure and balance sheet to best support these pipeline opportunities,” Fajardo continued. “We activated and ramped our market pathways across Australia, Germany, Brazil, and Israel, signing new agreements and further developing our existing partnerships. To enhance our capital efficiency, we implemented various restructuring initiatives and paid off our two largest debt instruments, which we believe will allow us to drive greater cost savings and take meaningful steps towards positive cash flow.”