Agrify Corporation (Nasdaq: AGFY) announced financial results for the first quarter ended March 31, 2022, as revenue increased 271% to $26 million for the first quarter versus $7 million for the prior-year period. This was also higher than Agrify’s fourth-quarter revenue of $25.3 million and beat the Yahoo Finance average analyst estimate for revenues of $25..3 million. The stock price was up by over 6% in early trading to lately sell at $2.60.
The net loss for the first quarter was $8.9 million, or $0.36 per diluted share, compared to a net loss of $3.8 million, or $0.33 per diluted share, in the prior-year period. The earnings missed the estimates, which were ($0.33) per share.
Agrify reiterated its previously provided revenue guidance for the Fiscal Year 2022 to be in the range of $140 million to $142 million.
“Increased customer adoption across our product lines not only fueled our Q1 growth but also helped strengthen the foundation for future high-margin recurring revenue streams, which we expect to begin to realize later this year,” said Raymond Chang, Chairman and Chief Executive Officer of Agrify. “We continue to make tremendous progress on the successful execution of our growth strategy as we expand our Vertical Farming Units (“VFUs”) and extraction customer base, selectively enter new limited-license states and international markets, and innovate and improve our product offerings.”
Cash flow used in operating activities was $34.2 million for the first quarter, compared to $7.3 million in the prior-year period. First-quarter 2022 cash flows used in operating activities related to the increase in inventory associated with the current and future construction of the Company’s VFUs, current quarter operating performance, first quarter renewals of insurance policies, and the capitalization of debt issuance costs.