Benzinga | Aug 13, 2021 08:54AM EDT

Agrify Second Quarter Revenue Rises 203% To $11.8M, Reaffirms Its Full Year Guidance Of $48 to $50M

Agrify Corporation (NASDAQ:AGFY) announced financial results for the period ended June 30, 2021, revealing 203% revenue improvement from the same period in 2020, reaching $11.8 million. The company, based in Billerica, Massachusetts, missed Seeking Alpha estimates of $15.15 million in revenue for the quarter.

Q2 2021 Financial And Operational Highlights

* Revenue increased 203% to $11.8 million for Q2 2021 compared to $3.9 million for Q2 2020 and increased 69% sequentially from $7 million in Q1 2021.

* New bookings were $30.7 million for Q2 2021, which is the highest quarterly bookings total for the Company to date.

* Total backlog increased to $101.1 million from $82.2 million at the end of Q1 2021.

* The company announced the first Agrify Total Turn-Key Solution customer partnership, signing a definitive agreement with Bud & Mary's Cultivation, Inc. to install up to 1,200 Agrify Vertical Farming Units at its 50,000-square-foot facility. The partnership is anticipated to generate an estimated $28 million in annual revenue with up to $280 million expected in the next 10 years.

* Expanded and amplified partnerships with existing customers including WhiteCloud, Greenstone and Nevada Holistic Medicine.

Management Commentary

"We are very pleased to share that our Q2 revenue grew to a record $11.8 million, a year-over-year increase of 203%, and sequential growth of 69%," Raymond Chang, CEO of Agrify stated. "At the beginning of the year, we set out to achieve $40 million in top-line revenue, secure a partnership with a major MSO, and launch our latest technology, VFU 3.6. I am proud to report that we have already exceeded these goals, and we are well on our way to realizing our expanded full year 2021 revenue guidance of $48-$50 million."

Key Q3 2021 Developments To Date

* Established multi-year vertical farming research and development partnership with Curaleaf Holdings (OTCQX: CURLF) to study the impact of cultivation environment on plant health and harvest yields;

* Opened new cultivation and production facility, product showcase, and corporate office in Billerica, Massachusetts, following the Company's receipt of a license for the cultivation and production of industrial hemp from the state

* Launched Agrify University, a 3,500-square-foot state-of-the-art indoor vertical farming facility featuring Agrify's latest technology and advanced cultivation methods, and an innovative, project-based learning program providing participants with in-classroom, on-site

* and on-demand learning options;

* Announced the second Agrify TTK Solution customer partnership with True House Cannabis LLC, a partnership that is anticipated to generate an estimated $45.3 million in expected revenue in the next 10 years;

2021 Outlook and Guidance

As a result of the continued strength of Agrify's operations, the Company remains on track to achieve the upper target of its previously disclosed total revenue guidance of $48 to $50 million for the full year 2021.

Price Action

Agrify's shares were trading 2.60% higher at $27.20 per share during Friday's pre-market session.

Photo: Courtesy of Diyahna Lewis on Unsplash