Akerna (NASDAQ:KERN) reported on Monday its unaudited financial results for the third quarter, which ended September 30, 2022.
The company saw a “double-digit growth in reported software sales for the quarter,” Jessica Billingsley, CEO of Akerna, said.
The Denver-based company also implemented aggressive cost control measures throughout the year resulting in the narrowing of its adjusted EBITDA losses.
“We continue to focus our resources on building a stable and sustainable financial model at Akerna, and we are well-positioned for future growth,” Billingsley continued.
Q3 2022 Financial Highlights
- Software revenue was $5.3 million, up 17% year-over-year.
- Total revenue was $5.4 million, up 5% year-over-year.
- Gross profit of $3.4 million, or 62% of total revenues, was essentially flat with $3.2 million, or 62% of total revenues, in the same period of 2021.
- Loss from operations was $0.8 million, which included a $3 million benefit, attributable to an acquisition earn-out adjustment, compared to a loss of $3.7 million in last year’s same period.
- Net loss was $2.3 million compared to a loss of $1.5 million in last year’s third quarter.
- Adjusted EBITDA loss was $1.4 million compared with a loss of $1.5 million for the same quarter of 2021 and compared to an Adjusted EBITDA loss of $2.1 million in the second quarter of 2022
- Cash and restricted cash was $9.5 million as of September 30, 2022.
Q3 2022 Key Metrics
- CARR of $16.9 million, up 3% year-over-year.
- Q3 software bookings of approximately $440K.
- Transaction volume up 10% sequentially.
- Average new business deal size decreased by 16% year-over-year.
- Transaction dollar amount down 10% sequentially.
Other Key Developments
- The company continues to explore strategic and financial alternatives to strengthen its balance sheet.
- Closed an equity transaction providing net proceeds of $9.2 million on July 5, 2022.
- Announced that shareholders voted in favor of a 20-for-1 reverse stock split which was effectuated immediately thereafter in order to maintain compliance with Nasdaq listing standards.
Price Action
Akerna’s shares traded 7.75% up at $1.53 per share during a pre-market session on Monday morning.
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Photo: Courtesy of geralt and Kindel Media by Pixabay
