Clever Leaves’ Fourth Quarter Revenue Increases 25% Year Over Year, Outlines 2022 Outlook and New CEO

Clever Leaves Holdings Inc. CLVR reported sound preliminary unaudited financial results for the fourth quarter and year ended December 31, 2021, as well as its outlook for 2022.

Financial estimates for the fourth quarter of 2021 compared to the corresponding quarter of the previous year

  • Revenue is expected to increase 25% to approximately $4.2 million compared to $3.3 million.
  • Gross profit expected to increase 5% to approximately $2.4 million compared to $2.3 million, with a gross margin of approximately 56.8% compared to 67.9%.
  • Net loss should vary between approximately $17.1 million and $17.5 million compared to $0.9 million.
  • Adjusted EBITDA (a non-GAAP number defined and reconciled here) should be negative and within a range between approximately ($7.3) million and ($7.7) million compared to ($6.3) million.
  • As of December 31, 2021, the Company’s cash, cash equivalents and restricted cash are expected to be approximately $37 million, compared to $79.5 million.

Financial estimates for the year 2021 compared to 2020:

  • Income should increase by 27% to approximately $15.4 million compared to $12.1 million.
  • Gross profit should increase by 28% to approximately $9.5 million compared to $7.4 million, with a gross margin of approximately 61.7% compared to 61.2%.
  • Net loss is expected to be between approximately $38.8 million and $39.2 million compared to $25.9 million.
  • Adjusted EBITDA is expected to be between approximately ($24.4) million and ($24.8) million compared to ($23.3) million.

“We delivered strong year-over-year revenue growth and maintained our cautious approach to cost management, which enabled us to generate continued margin profits for the full year,” Kyle Detwiler, CEO of the company, noted. “We have achieved the milestone targets provided in our revised 2021 outlook, and I am proud of our team’s relentless dedication to maintaining production efficiency and advancing our distribution efforts in key international markets. “

The company expects turnover for the year 2022 between 20 and 25 million dollars, with a gross margin between 50% and 55%.

Clever Leaves also expects Adjusted EBITDA to be negative and to be between $(23) million and $(20) million. The Company expects approximately $2-3 million in annual capital expenditures, which represents an estimated 70% reduction from 2021.

Management changes

Separately, the Boca Raton, Florida-based company revealed that Andres Fajardo, currently director and president of Clever Leaves, has been chosen to succeed Kyle Detwiler as CEO, effective March 24, 2022.

Detwiler will remain CEO until March 24, 2022, to ensure a smooth transition, and will continue to serve as President of the Company until that date.

“Today’s leadership changes are the culmination of a succession planning process that our Board and Kyle have worked on together,” Elisabeth De Marse, who has served as an independent director on the board since December 2020, said.

Fajardo brings over 20 years of management experience to the company.

He has been a Director of the Board since December 2020 and Chairman since 2019, and has held various other positions with the Company since its inception in 2016.

Prior to Clever Leaves, from 2016 to 2018, Fajardo was a founding partner of Mojo Ventures. He was also CEO of CoIombia-based Q Outsourcing and Principal Fellow of Booz & Company from 2000 to 2010.

Photo: Courtesy of Benzinga

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