Clever Leaves Holdings Q2 Revenue Jumps 89% To $3.7M Slightly Beating Estimates, Projects FY Revenue Between $17M To $20M

Multinational cannabis operator Clever Leaves Holdings Inc. CLVR reported its financial and operating results Thursday for the second quarter of 2021, with revenue of $3.7 million, beating Seeking Alpha estimates of $3.48 million.

Second Quarter 2021 Summary vs. Same Quarter A Year Ago

• Revenue increased 89% to $3.7 million compared to $1.9 million, driven by both core segments of the Company.
• Loss per share amounted to $(0.90) compared to loss per share of $(1.87).
• All-in cost per gram of dry cannabis flower equivalent was $0.22 compared to $0.11, attributed to ramping early-stage operations in Portugal.
• Gross profit increased 157% to $2.3 million, reflecting a 63.6% gross margin.
• Net loss was $(9.0) million compared to $(8.8) million.
• Adjusted EBITDA improved to $(5.8) million compared to $(6.7) million.

“Our second-quarter performance marked sustained progress towards our long-term vision, as we continued to optimize our positioning within the global cannabinoid supply chain,” Kyle Detwiler, CEO of Clever Leaves stated. “The nearly 4x year-over-year growth of our cannabinoid segment, as well as continued recovery from COVID-related challenges affecting our non-cannabinoid business, drove our revenue growth during the quarter, while our market-leading cultivation and production efficiencies led to improvements in adjusted EBITDA.”

Detwiller highlighted the improvement of the company’s global operations, noting that it made its first commercial flower shipment to Australia and has also reached the Mexican market.

“With these advances, all of our operational units, including the U.S., Colombia, Portugal and Germany are now producing revenue. Through our progress in expanding our international export footprint, and our sustained focus on product quality and operational efficiency, we have built a solid foundation from which to capitalize on further growth opportunities,” Detwiller concluded.

2021 Outlook – Still On Track To Reach Its Goal

Based on continued momentum achieved through the first half of 2021 on expansion, execution of the revenue pipeline and cost containment measures, the Company continues to believe that it is on track to achieve its 2021 plan. Revenue is expected to be between $17 million and $20 million with a gross margin of approximately 61%, and adjusted EBITDA in the range of $(24) million to $(26) million, inclusive of costs associated with being a public company as well as capital expenditures of approximately $10 million.

Price Action

Clever Leaves’ shares were trading 2.43% lower at $10.84 during Friday’s pre market session.  

Photo: Courtesy of CRYSTALWEED cannabis on Unsplash