E Key Takeaways From Akerna Corp. Q1 2021 Results Of Operation

On 5/10/21 Akerna Corp. (KERN) hosted their Q1 2021 earnings conference call which showed the following continued progress towards the company’s “path to profitability”:


First Quarter 2021 Financial Highlights

  • Software revenue was $3.8 million, up 62% year over year.
  • Total revenue was $4.0 million, up 31% year over year.
  • Gross profit was $2.6 million, up 53% year over year. 
  • Net loss was $6.3 million compared to a net loss of $4.8 million in the same period last year.
  • Adjusted EBITDA was negative $1.8 million compared to negative Adjusted EBITDA of $3.2 million for the same quarter last year.


First Quarter 2021 Key Metrics

  • Total SaaS ARR of $15.7 million, up 73% year over year.
  • Average new MJ Platform order up 29% year over year.
  • MJ Platform transaction volume up 51% year over year.
  • Retail order volume up 51% year over year.
  • Retail order value up 29% year over year.
  • New Bookings ARR of approximately $1M.

These are encouraging signs and the year-over-year comparisons should become more favorable going forward which would provide a catalyst for KERN to trade higher. Another key point is that 2021 will be the first full 12-month results of operation for the 3 acquisitions made in 2020. In addition, KERN will report 9 months of operation from the 4/1/21 acquisition of Viridian Corp., which the company has stated will be cash positive, which increase investor interest in KERN stock. The company’s recent trading volume has been much lower than the 90-day average of 1,370,000. Based on the promising Q1 results of operation, I anticipate increased volume and trend towards the 50-day of $4.44, which was last achieved on 4/13/21. KERN is a portfolio company of the Amplify Seymour Cannabis ETF (CNBS) and continued improving performance may attract the support of institutional investors, who as a group are known to be “patient” (or "long-term”) investors. 

As part of my due diligence in the preparation of this article, I reviewed KERNs 2021 Q-1 filed on 5/21/21 which stated in part:

“ During 2020, we implemented a number of cost reduction initiatives reducing costs and identifying cost savings that we expect to result in annual savings of an additional $3.0M to $4.0M”

This will positively affect the company’s 2021 “bottom line” and coupled with increased revenues due to the aforementioned acquisitions and is a bullish indicator. 

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Disclosure: This article is part of a new “UnderCovered” series of exclusive articles featuring companies with limited coverage. Authors are compensated by TalkMarkets for their time ...

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Leslie Miriam 1 week ago Member's comment

Impressive!

Kurt Benson 2 weeks ago Member's comment

Thanks, I've been following $KERN since Lorimer Wilson and Maithya Kitonyi started covering it. Lorimer/Maithya, are you still bullish on $KERN?

Maithya Kitonyi 2 weeks ago Contributor's comment

Yes absolutely. There is a lot to unlock still. My previous target was $7.00-$8.00 but actually, now I think it's not farfetched to look at the price potentially hitting double digits in the next 12 months.

Sandy Newman 2 weeks ago Member's comment

Nicely done. $KERN looks good.

Stock Profit 2 weeks ago Member's comment

Good read, thanks.