Software revenue up 38%, total revenue up 24% year-over-year

DENVERMarch 22, 2021 /PRNewswire/ — Akerna (Nasdaq: KERN), an enterprise software, leading compliance technology provider and developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), today reported its unaudited financial results for the quarter ended December 31, 2020.

“In the December quarter we delivered strong financial results, with 38 percent software growth year over year and 36 percent sequential improvement in adjusted EBITDA,” said Jessica Billingsley, CEO of Akerna.  “With the recent announced plans to acquire Viridian, we continue to bolster the strength of our channel connections with existing ERP providers.  As we prepare for a post-legalization landscape and the industry continues to consolidate and mature, we firmly believe enterprise capabilities, including comprehensive compliance solutions and financial reporting integrations, will become increasingly important to the future leaders of the cannabis industry.”

Quarter Ended December 31, 2020 Financial Highlights

  • Software revenue was $3.4 million, up 38% year over year
  • Total revenue was $4.1 million, up 24% year over year
  • Gross profit was $2.7 million, up 60% year over year
  • Net loss was $12.2 million compared to a net loss of $3.8 million for the quarter ended December 31, 2019
  • Adjusted EBITDA was ($1.9 million) compared to ($2.7 million) for the quarter ended December 31, 2019
  • Cash was $17.8 million as of December 31, 2020

See “Explanation of Non-GAAP Financial Measures” below

Quarter Ended December 31, 2020 Key Metrics

  • Total SaaS ARR of $13.8 million, up 42% year over year
  • Average new MJ Platform order up 52% year over year
  • MJ Platform transaction volume up 63% year over year
  • Retail order volume up 56% year over year
  • Retail order value up 105% year over year
  • New Bookings ARR of $0.8 million

Quarter Ended December 31, 2020 Operational Highlights

  • Akerna Launches MJ Retail Point of Sale Solution
  • November elections open five new markets for Akerna products and services
  • Transitioned to fully remote workforce, closed offices and lowered operating costs
  • Closed $12 million public offering of common stock
  • Transitioned fiscal year-end to December 31

Conference Call Details

Akerna will host a conference call tomorrow, Tuesday, March 23, 2021, at 8:30 a.m. Eastern Time to discuss its financial results and business highlights. A question-and-answer session will follow prepared remarks.
Interested parties may listen to the call by dialing:

Toll-Free: 1-877-407-3982
Toll / International: 1-201-493-6780
Conference ID: 13717601

The conference call will also be available via a live, listen-only webcast and can be accessed through the Investor Relations section of Akerna’s website, https://ir.akerna.com/

To be included on the Company’s email distribution list, please sign up at https://ir.akerna.com/news-events/email-alerts

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