Cannabis Software Firm Akerna Reports Q2 Revenue Of $4.9M, Up By 63% YoY

Cannabis software firm Akerna (NASDAQ: KERN) released its financial results Monday for the second quarter of 2021, reporting total revenue of $4.9 million, up by 63% from the same period in 2020.

Q2 Financial Highlights

• Gross profit was $3.0 million, up by $153 year-over-year;
• Net loss reached $6.1 million, flat with the corresponding quarter last year;
• Adjusted EBITDA was a loss of $.16 million, which compares to an Adjusted EBITDA loss of $3.6 million in the same period of the prior year;
• Software revenue reached $4.5 million, up by 56% from the same period in 2020;

At the end of the reporting period, on June 30, Akerna held $11.8 million in cash, which compares to $15.4 million it held at the end of March.     

Q2 Operational Highlights

• Akerna reached an exclusive partnership with the Medicinal Cannabis Authority (MCA) in Saint Vincent and the Grenadines (SVG), to provide the MCA a customer relationship management tool (CRM), making the “world’s first national government cannabis contract” with the Caribbean country;
• It closed the previously announced acquisition of the cannabis business software firm Viridian Sciences built on SAP Business One in an all-stock transaction.
• Added pharmaceutical and cannabis industry expert Barry Fishman to its board of directors;
• Finalized MJ Retail (POS offering) beta adoption;

"Our second quarter results continued the momentum in 2021, with revenue growth of 63% year over year driven by a mix of organic and inorganic software revenue and a rebound in consulting demand," Jessica Billingsley, CEO of Akerna stated.  "As consolidation within the industry continues and emerging markets begin to open, we believe our industry leadership position with multi-state, international and emerging enterprises paves the way for Akerna to be one of the largest cannabis technology winners in the years ahead."

Price Action

Akerna’s shares closed Monday market session 0.29% higher at $3.51 per share.

Photo: Courtesy of Esteban Lopez on Unsplash