Agrify Corporation (Nasdaq: AGFY) reported that its fourth-quarter 2021 new bookings exceeded $250 million and the company reaffirmed its fourth-quarter 2021 revenue guidance of $26 million to $28 million, subject to the completion of its standard audit process.
“Our record-high revenue and bookings this quarter are a testament to the current strength of our business and our growth trajectory,” said Raymond Chang, Chairman, and CEO of Agrify. “2021 was a transformational year for Agrify. We have seen significant and consistent improvement in our financial results quarter-over-quarter. Additionally, the introduction of our TTK Solution has proven to address multiple pain points in the rapidly evolving cannabis and hemp industry, while simultaneously creating compelling and long-term value for our shareholders. We look forward to providing a more detailed update on our recent progress and future prospects during our next earnings call.”
The more than $250 million in new bookings for the fourth quarter of 2021 is $150 million greater than the previously provided fourth-quarter guidance of $100 million and over $220 million greater than the bookings the company generated in the third quarter of 2021. The new bookings are an operational metric comprised of Agrify’s sales of its state-of-the-art cultivation and extraction solutions, including its Vertical Farming Units, as well as the expected revenue from Agrify’s Total Turn-Key Solution agreements over the first three years of cultivation. The company said it expects to generate substantially more value over the full 10-year term of the TTK partnerships.
The Agrify TTK Solution is a first-of-its-kind program in which Agrify partners with qualified cannabis and hemp cultivators in the early phases of their business plans and provides critical support over a 10-year period, which includes: access to capital, design, and buildout of their cultivation and extraction facilities, state-of-the-art cultivation and extraction equipment, process design, training, implementation, data analytics, and consumer branding. The company was recently the subject of a short-seller attack that criticized Agrify for working with early-stage companies suggesting that Agrify was working with unlicensed producers. The stock has lost half its value since that report was issued.
Despite that, Agrify noted that it has contractual commitments for over 3,000 VFUs that will be powered by the Agrify Insights SaaS cultivation software as well as the value-added services mentioned above. Cumulatively, all of the 10-year agreements under Agrify’s TTK Solution program are currently projected to generate an estimated $850 million in total revenue.