Agrify's CEO Optimistic Despite YoY Decline In Q2 Revenue, Gross Profit: A Path To Profitability?

Agrify Corporation AGFY announced its second-quarter financial results on Tuesday for the three months ended June 30, 2023, revealing a 73% year-over-year decrease in revenue to $5.1 million.

Raymond Chang, chairman and CEO at Agrify provided more insight into what the company's focus was during the previous period.

"As described in our prior earnings release, the four key priorities for the Company are (1) restructuring our balance sheet, (2) reducing our costs and headcount, (3) improving our product offerings, and (4) getting our key products CE-certified for international markets," Chang said.

Q2 2023 Financial Highlights

• Gross profit was $0.6 million, compared to $1.6 million in the same period of last year.
• Operating expenses were $5.9 million, compared to $93.1 million in the same quarter of 2022. The decrease was largely due to a decrease in general and administrative costs and a decrease in impairment of goodwill and intangible assets.
• Operating loss for was $5.3 million, compared to $91.5 million in the prior year's period.
• Net loss attributable to the company was $6.8 million, or $4.39 per basic and diluted shares, compared to $74.6 million, or $561.31 per basic and diluted shares for the corresponding quarter of 2022.
• As of June 30, 2023, the company had $45.4 million in total assets, compared to $69.7 million on Dec. 31, 2022.

Chang explained that a 31% sequential decrease in total operating expenses was a result of the company's continuing efforts to reduce its operating costs and headcount.

"The total headcount has also been reduced by 55%, from 190 to 85 on June 30, 2023," he said. "As a result, our operating loss was reduced from $7.6 million in Q1 2023 to $5.3 million this quarter, a 30% sequential improvement, and net loss was reduced from $10.3 million in Q1, 2023 to $6.8 million this quarter, a 34% sequential improvement."

Chang said Agrify is working toward profitability.

"We will continue to make focused reductions in costs and increase organizational efficiency to turn the business profitable in the shortest time possible," he said.

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