urban-gro Q3 Financial Results: Record 119% Growth

urban-gro, Inc. UGRO, a fully integrated architectural, engineering and cultivation systems integration company focused on the indoor Controlled Environment Agriculture (CEA) market, reported record financial results with record revenues on Tuesday after the bell.

Key Financial Highlights:

• Record third-quarter revenue of $18.3 million, representing growth of 119% compared to the prior-year period;
• Quarterly net income of $0.1 million compared to a net loss of ($0.7) million in the 2020 period;
• Record quarterly adjusted EBITDA1 of $1.0 million compared to $0.3 million in the prior-year period;
• Project backlog of contractually committed equipment and service orders with deposits received was $22.5 million as of September 30, 2021;
• A strong balance sheet with $40.5 million in cash and no debt;
• Raises 2021 revenue guidance to greater than $60 million and revises adjusted EBITDA guidance to reflect strategic investments in growth.

Third Quarter 2021 Financial Results:

• Revenue was $18.3 million in the third quarter of 2021, as compared to $8.3 million in the prior-year period, representing an increase of $10.0 million, or 119%.
• Gross profit was $4.3 million or 23% of revenue in the third quarter of 2021, as compared to $1.7 million or 20% of revenue in the prior-year period, representing an increase of $2.6 million.
• Operating expenses were $4.2 million in the third quarter of 2021 compared to $1.9 million in the prior-year period, representing an increase of $2.3 million.
• Net income was $0.1 million and adjusted EBITDA was $1.0 million or 5.4% of revenue in the third quarter of 2021 compared to $0.3 million or 3.8% of revenue in the prior-year period, representing an increase of $0.7 million.

Exclusive Contract With Urban Health Farms: 20 Turn-Key, Food-Focused Vertical Farms Throughout Europe

Urban Health Farms aims to revolutionize the way food is produced and distributed through indoor vertical farms at the cutting-edge intersection between agriculture and technology. The firm seeks to be the largest indoor farm operator in Europe with plans to commission approximately 20 industrial farms to deliver locally grown food, in a sustainable model, to communities throughout Europe.

After publishing the results, Bradley Nattrass, chairman and CEO of UGRO, commented, “I am very excited about what the future holds for urban-gro as we further expand upon our integrated service model by executing on accretive and synergistic acquisitions, investing in the European indoor CEA market.”

“We have been allocating significant resources towards our European initiative this year and I am thrilled to deliver our first large contract in the region with Urban Health Farms to expand its footprint across Europe,” Nattrass added.

2021 Guidance:

Raising 2021 full-year revenue guidance to greater than $60 million, compared to a prior range of $54 to $59 million. Lowering 2021 full-year adjusted EBITDA guidance to greater than $2.5 million, compared to a prior range of $4 to $5 million, to account for incremental strategic investments in growth.

Image By Ilona Szentivanyi