Agrify Corporation (Nasdaq: AGFY) delivered financial results for the third quarter ending September 30, 2021. Agrify’s revenue increased 460% to $15.8 million versus $2.8 million for the same time period in 2020 and increased 33% sequentially from $11.8 million in the second quarter. The net loss for the quarter was $9.7 million, which was higher than last year’s net loss of $2.7 million.
“We are thrilled to announce that Q3 was another strong and impactful quarter for our team,” said Raymond Chang, Chief Executive Officer of Agrify. “In the third quarter, we generated new highs in quarterly bookings and revenue while also moving our headquarters to Billerica, Massachusetts, launching Agrify University, securing new business opportunities and partnerships, and expanding our relationship with one of our valued legacy customers.”
Agrify said that as a result of the strength of its operations, rapid growth, and new strategic acquisition of Precision Extraction Solutions and Cascade Sciences, the company expects fourth quarter 2021 bookings to exceed $100 million and fourth quarter revenue of approximately $26 million to $28 million, bringing the full-year guidance to $60 million to $62 million, up from the previous guidance of $48 million to $50 million. The company also said it expects EBITDA margins to improve significantly as it continues to see positive synergies and contributions from our newly acquired extraction division.
Mr. Chang added, “I am immensely proud of our team for showing tremendous character and tenacity in achieving a wide range of objectives in the third quarter and for setting us up for what we believe will be a hugely successful fourth quarter. Not only did we continue to translate the growing demand for our solutions into improved new bookings and revenue in Q3, but we also put a massive amount of time and energy into laying the foundation for the many deals and developments we’ve already announced in Q4, such as our transformative acquisition of Precision Extraction Solutions and Cascade Sciences, our VFU technology improvements, our entry into the attractive Arizona market through our transaction with Olive El Mirage, and our 10-year TTK partnership with Kief USA.”
Agrify said that it has secured an order for 400 VFUs from Olive El Mirage, in Arizona, including the opportunity for Olive El Mirage to determine whether to proceed with a cash purchase of the VFUs or finance most of this transaction within 90 days, except without the need for construction financing. It also secured a TTK partnership with Kief USA, including the installation of 485 VFUs at its Massachusetts facility, and 20% of all construction and equipment costs provided by Kief USA.
Mr. Chang concluded, “We fully anticipated that the second half of 2021 would build upon our many successes from earlier in the year while meaningfully reshaping the trajectory of Agrify in a profound way. We believe our recent performance shows that we are right on the mark and confirms that the future looks bright for Agrify. As we forge ahead, we are in advanced discussions with over 20 MSOs, we are actively engaging with more than 15 potential TTK and VFU cash customers, and we continue to explore other strategic acquisition opportunities. We look forward to closing out 2021 well-positioned for accelerated growth, and we will be providing our 2022 outlook in the coming months.”