• Agrify reported its full-year and Q4 2021 results today. The company reported revenue of  USD 59.9 million in 2021, up 395% YoY, exceeding its guidance of USD 48–50 million for the year. However, Q4 revenue, which amounted to USD 25.3 million, (+481% YoY) was slightly below the Q4 revenue guidance range of USD 26–28 million. 

• The strong growth in revenue was driven by the demand for the company’s vertical farming units (VFUs). The company reports that it achieved USD 250 million in new bookings for Q4 2021 (+733% QoQ), also exceeding its guidance provided for Q4 by 150%. As of date, Agrify has installed 3,729 VFUs and reports that it has a total pipeline of revenue opportunities worth USD 571 million, from total turnkey solution partnerships, extraction products, and cultivation products. 

• At the gross level, the company generated a profit of USD 5.2 million for the year (9x FY2020 gross profit), reaching a gross profit margin of 8.7% from 4.7% in the previous year.

• Despite its strong topline growth, Agrify’s operating losses for FY2021 increased 178% YoY, amounting to USD 35 million. This was mainly attributed to one-time acquisition costs (USD 10.4 million), increases in depreciation and amortization (+449% YoY), and an increase in stock-based compensation (+38% YoY). 

•  Key operational milestones for FY2021 include:

<ul><li> Four acquisitions : Precision Extraction Solutions and Cascade Sciences to expand its cannabis and hemp supply chain operations and PurePressure and Lab Society to accelerate the expansion of Agrify’s solvent separation and extraction division.<ul>

<ul><li> Four TTK customer partnerships: During 1H : Bud and Mary’s Cultivation Inc (1,200 VFUS, expecting revenue of USD 28 million per year) and True House Cannabis LLC (159 VFUs, 10-year deal value of USD 45.3 million). During 2H:  Olive El Mirage Partners LLC (400 VFUs, deal value USD 28 million) and Kief USA, (485 VFUs, USD 68.7 million  over the first three years). For 2022, the company has already partnered with Gold Leaf Florida LLC (1,510 VFUs, 10-year deal value of USD 380 million).<ul>

<ul><li>New and improved VFU technology unveiled at Marijuana Business Conference and Cannabis Expo 2021 <ul>

• Agrify provides its revenue guidance in the range of USD 140–142 million for FY 2022 given the strong demand for its cultivation and extraction solutions.