Akerna Archives - Green Market Report

StaffJuly 28, 2021
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6min4280

Prior to being appointed CTO of Akerna, David McCullough served as Akerna’s Executive Vice President of Product & Engineering, overseeing all software development, development operations, quality assurance, automations, systems, and security operations. He has 16 years of Software Engineering experience. Before joining Akerna, he was the CTO of StudentPublishing.com, where he actively managed the technical aspects of Student Publishing’s sale to and systems integration with lulu.com. David has extensive government systems experience and was also a professor at New Mexico State University where he taught courses in data communications and networking. 

 

GMR Executive Spotlight Interview Q & A:

 

Title:

Chief Technology Officer (CTO)

Company:

Akerna

Years at current company:

Six

Most successful professional accomplishment before cannabis:

Before David’s work in cannabis, he invented an online self-publishing software that allows schools and children to create and publish books online to be published as physical books and returned to the writer.

Company Mission:

We are passionate about solving problems that better our world. Akerna provides data-driven cannabis solutions worldwide across the entire cannabis supply chain. Our technology empowers the cannabis industry to prove outcomes that positively change lives every day.

Company’s most successful achievement:

Our CEO, Jessica Billingsley, co-founded the company that invented seed-to-sale tracking in 2010. This was done upon identifying the need for organic material tracking and compliance SaaS solutions in the nascent cannabis industry. We recognized that due to the unique complexities and needs of the industry, cannabis needed technology built for it specifically, not just adapted from other industries. We believed visibility across the entire supply chain from seed-to-sale would be a requirement for the industry’s sustained growth. Today, this type of tracking is a requirement of most states that regulate legal cannabis.

In 2017, we launched MJ Platform, the cannabis industry’s first ERP in response to the maturing of the cannabis market to multi-state enterprise businesses. We also led international expansion in the cannabis technology sector very early on in 2012 in Canada then into Spain. Today, our total footprint spans 23 states and 15 countries. Innovation and seeing what opportunities are next on the horizon – and then being ready for them first – has been a hallmark of Akerna since the inception of our flagship product MJ Freeway.

In 2019, Akerna became the first cannabis software business to be traded on a major U.S. exchange, Nasdaq (ticker KERN). This listing was an unprecedented milestone for the cannabis industry and signified a shift in beliefs and generated ripples of opportunity for the future of the industry.

Since then, we have grown the Akerna family to include many leading cannabis and alcohol technology solution s: Ample Organics,  Last Call Analytics,  Leaf Data Systems,  MJ Freeway/MJ Platform, solo sciences, Trellis, and Viridian Sciences.

Today,  Akerna is the cannabis industry’s only scaled technology provider, enabling compliance, regulation, and taxation. We provide the single most comprehensive product ecosystem for cannabis operators that have businesses across any part of the supply chain, from seed-to-sale. This provides transparency and accountability along virtually every piece of the supply chain.

Over the past decade, we have seen much change in the political and social environments surrounding cannabis. As we prepare for a post-legalization landscape and the industry continues to consolidate and mature, we firmly believe the enterprise capabilities we offer, including comprehensive compliance solutions and financial reporting integrations, will become increasingly crucial to the future leaders of the cannabis industry.

Has the company raised any capital (yes or no): 

Yes

If so, how much?

Since going public Akerna has raised $22,000,000

Any plans on raising capital in the future?

 We feel we are well capitalized today and continue to have institutional support and access to the markets should the need arise.  We are always carefully evaluating the needs of the business to maximize long-term shareholder value. 

Most important company  5  year  goal:

To be the dominant provider of technology to the cannabis, hemp, and CBD industries, while also serving additional verticals by providing complete accountability and transparency to what consumers are putting in and on their bodies.


Debra BorchardtJuly 21, 2021
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5min6120

Cannabis software company Akerna (NASDAQ: KERN) has released its 2021 Mid Year report that highlights upcoming trends as well as recapping the first half of the year. These trends include interstate commerce, the importance of brands, and the quickly growing power of the female consumer.

Interstate Commerce

Scott Sozio who serves as Head of Corporate Development for Akerna wrote that while consolidation and access to capital have been important issues they are laying the groundwork for interstate commerce and the importance of brands. Sozio said, “The recently proposed Cannabis Administration and Opportunity Act (“CAOA”) contemplates interstate commerce. Whether the bill passes or not, interstate commerce is now part of the conversation, and operators large and small will have to develop their plans for how they will compete when state borders open.” He suggested that the consolidation that is happening in the industry today has been focused on accumulating assets and planting as many flags in as many states as possible. He believes this focus will shift to a geographically strategic production location that is positioned to service a national footprint. 

“The first evidence that the larger operators are positioning for interstate commerce came earlier this year when Curaleaf acquired Los Suenos, the largest outdoor grow in Colorado. The announcement noted that the transaction would provide Curaleaf with one of the largest outdoor cannabis cultivation facilities in the U.S. while building on its strategy of constructing low-cost supply chains critical to eventual interstate commerce,” he wrote in the report.  Sozio thinks there will be more acquisitions of strategic supply as companies begin building their national footprints now. 

Big Brands

Akerna thinks that the brands being built today could become the cannabis household names of the future. However, the company said many questions have yet to be answered. “Will a successful California brand resonate in Florida? Will the product be consistent from one state to the next? As in any industry, there will be national brands and niche brands.” There are brands that are flexing their muscle now as they begin to compete on a national stage. Cannabis brand Cookies was recently named by Ad Age as one of the Hottest Brands of 2021. The company is both creating its own dispensaries and selling its product in multiple states. It’s a strategy that many other brands are sure to try to replicate.

Girl Power

James Arhrendt Business Intelligence Architect at Akerna also noted in the report the growth of the female consumer in the cannabis industry. “Since 2019, females have steadily increased their percentage of sales, a total of 3.2%. While that may seem like a low number, it’s actually a significant change considering the vast numbers of cannabis consumers – 14.9 million have purchased in 2021 so far.” Like the rest of the market, women are also buying mostly flower. Even though flower purchases account for 44% of the female spend, concentrate purchases are taking preference over edibles. 

Akerna found that the concentrate category showed a direct correlation between age and the percentage of sales share for females. The report noted that the younger age groups spend more (14% of sales for under 30), and the sales percentage gradually drops in each age group as you increase in age (60+ age group only spends 5%). “Edibles also correlate with age but in an inverse relationship to concentrates. For the under 30 female age group, edibles are only 5.37% of their sales, 30-40 its 6.93% of their sales, and this trend continues up as the 60+ age group spends 19% of their sales on edibles.”

So, it seems that as the importance of the female customer grows, brands and companies will want to adapt and address the desires of this group. Money talks and if this group is gaining importance, it will also gain power.


Kaitlin DomangueJune 29, 2021
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5min8300

Cannabis software and intelligence company, Akerna (NASDAQ: KERN), released a new flash report this morning, predicting the 4th of July, 2021 to bring in over $206,000,000 in legal cannabis sales across the United States. 

With Connecticut being the most recent state to legalize, 38 states now have legislation permitting an adult-consumption and/or medical cannabis program. Not everyone has dispensaries up and running yet, so this data doesn’t reflect sales in all 38 legal states. 

2021 4th of July sales predictions

According to the flash report, historical data shows cannabis sales typically spike the weekend before the 4th and Friday, July 2nd is expected to retail nearly $91,000,0000 – up 60% from an average Friday. The report predicts July 2nd to be the second highest sales day of the year, just after 4/20. Saturday, July 3rd, is forecasted to generate $72,000,000 in cannabis sales, with Sunday, July 4th, expecting to see $43,000,0000. Sundays are typically the lowest sales day of the week when you look at historical data, but dispensaries will still see more sales than normal because it’s a holiday. 

“Year over year, we’ve seen a 23% increase in the number of products consumers and patients are purchasing for the 4th of July holiday weekend,” said James Ahrendt, Business Intelligence Architect at Akerna. “With the holiday falling on a Sunday this year, dispensaries should be evaluating staffing and preparing inventory ahead of the weekend to ensure they are ready to accommodate these increases in both traffic and sales.” 

Some other Independence Day weekend (7/02-7/04) sales predictions: 

Product Categories

  • The average order total will be $8 more than normal: $109 vs. $101 
  • Each basket will carry an average of 3.6 products per transaction

 

  • Flower will make up 49% of sales
  • Cartridges/pens will make up 31% of sales 
  • Concentrates will account for 10% of sales
  • Infused edibles will account for 9% of sales
  • Other products will make up 1% of sales

 

Demographics 

  • 61% of consumers will be male
  • 39% of consumers will be female 
  • 29% of consumers will be under the age of 30
  • 30-40 year olds will make up 31% of consumers
  • 20% of consumers will be between the age of 40 and 50
  • 50-60 year olds will account for 11% of consumers 
  • Consumers over the age of 60 will account for 9% of sales

Akerna regularly releases flash reports. Last year’s 4th of July report anticipated an 87% increase in sales over the 4th of July weekend, with Americans expected to spend more on cannabis than bbq meats. Historically, consumers spend more than $371 million on chicken during the two weeks leading up to July 4th, equalling about $37 million per day. Akerna predicted cannabis sales to reach over $260 million in just three days, generating about $86 million per day. 

Data for Akerna’s flash reports are provided by MJ Platform, a regulatory compliance technology company in the cannabis space. 


Julie AitchesonApril 14, 2021
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3min17500

Enterprise software company Akerna (Nasdaq: KERN) just released a Flash Report tracking buying trends related to this year’s 4/20 cannabis consumption holiday, and the news for the industry is favorable. The weekend preceding 4/20, which lands on a Tuesday this year, is pegged by Akerna’s predictive data as the most significant sales weekend of the year. On Friday, April 16, the Flash Report anticipates a 50% growth in daily sales from its 2021 average, with a total industry sales figure of $85,000,000. Saturday through Monday look strong as well, with figures ranging from $50,000,000 (on Sunday, historically the lowest cannabis sales days) to $78,000,000 on Saturday. By the time Tuesday hits, the daily retail sale of legal cannabis is expected to gross $95,000,000 nationally, bringing total 4/20-related sales to $370,000,000 in the U.S. if Akerna’s data proves accurate.

The Flash Report offers a breakdown of category sales and sales percentage by demographics such as gender (using a male and female binary) and age. Flower is forecast to top products sales in the five days of 4/20 spending, constituting 49% of sales (up 4% from the 2021 daily average). Cartridge pens are predicted to come in at 31% while Concentrates and Infused Edibles sit in third and fourth place at 11% and 8%. Men are likely to lead women in purchasing, with 63% of males stocking up to ring “Weed Day” over 38% of females.

According to Akerna’s numbers, 30-40 year-olds will make up 31% of consumers during this period, with under 30’s coming in at 29%, 40-50 year-old’s at 20%, 50-60 year-olds at 12%, and just 8% of folks over 60 hitting the dispensaries, shops and online retailers. The average order total will likely be up about $10, boosting the average spend per customer from $93.48 to around $105.00. The number of products purchased is predicted to go up as well, with a 30% increase from 2021.

The data used to inform Akerna’s Flash Reports is derived from MJ Platform, a provider of cannabis compliance software for the marijuana industry. Sales projections are based on market adjustment calculations and represent the entire US market as an aggregate. In a previous Flash Report, Akerna noted that the St. Patrick’s Day stimulus check drop led to the largest cannabis sales day of the year, which may contribute to the projected boost in 4/20 sales as well. Expanding legalization measures, a competitive retail market, and creative product development to reach a broader demographic of consumers may also contribute to the uptick. Whatever the main drivers may be, Akerna’s sales predictions herald a very happy 4/20 for the cannabis industry.


StaffApril 6, 2021
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4min8280

Akerna (Nasdaq: KERN) closed on its acquisition of Viridian Sciences, a cannabis business management software system built on SAP Business One. The all-stock deal is accretive to revenue and earnings and is expected to contribute cost synergies. Akerna stock was moving higher by over 1% on the news to lately trade at $4.85.

“We are pleased to officially welcome the Viridian team to the Akerna family. By leveraging our tech synergies, we solidify our ecosystem offering the first and only true ERP software solution specifically built for the cannabis industry,” said Akerna Chief Executive Officer Jessica Billingsley. “Leading enterprise organizations across industries choose SAP Business One for its ability to automate key financial business functions. By combining Viridian’s financial integrations with Akerna’s compliance and regulatory solutions, we continue to strengthen our channel connections with existing ERP providers for the cannabis businesses of today and the post-legalized world.”

Akerna said that as a result of the acquisition, Viridian’s clients receive access to Akerna’s Compliance Gateway, feature-rich reporting, and the recently launched MJ Retail app. Akerna has partnered with ERP solutions such as SAP and other leading providers for integrated financials & tax planning, offering cannabis operators a solution for each stage of their evolution from startup to multi-state operator — all while maintaining regulatory compliance through Akerna’s Compliance Gateway. The acquisition of Viridian accelerates the deployment of this strategy and establishes Akerna as the only cannabis-compliant SAP Business One offering.

“Combining with Akerna gives Viridian the ability to accelerate growth in new markets, as we leverage Akerna’s extensive compliance and partner integrations, furthering our strategy of creating the best-in-class ERP solution for the cannabis industry,” says Grant Fraser, Chief Executive Officer of Viridian Sciences. “We founded Viridian with the goal of becoming the premier SAP Business One cannabis solution and, through this combination with Akerna, we are achieving that goal for our business and our clients.”

“Working with Viridian has provided Wana with greater visibility and control over our supply chain, production management, and financial health, and we are excited to see the relationship continue to grow with both Viridian and Akerna,” noted Logan Craven, Chief Financial Officer of Wana. Viridian clients include Wana, Trulieve, iAnthus, Herbl, Canndescent, and many more prominent cannabis operators and brands.


Debra BorchardtMarch 18, 2021
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4min15250

The stimulus checks that many Americans are beginning to receive this week could also stimulate the cannabis industry, namely the dispensaries. Viridian Capital Advisors said it expects the latest stimulus check will translate to higher than normal retail sales in the near-term, as well as inflated wholesale prices, which are driven by that stronger retail demand.

The last time Americans got a stimulus check, cannabis companies said they saw increased demand. No doubt being declared an essential service helped as many dispensaries could make deliveries or offer curbside service. Viridian said that in reporting second-quarter 2020 results, nearly all the industry’s leading operators attributed a boost in sales to stimulus payments.  Cannabis tech company Akerna (NASDAQ: KERN) published a flash report stating that April 15th (right after many Americans received stimulus checks) was the biggest Wednesday for legal cannabis sales in history with both ticket size and total revenue up over 50% compared to a normal Wednesday in 2020. Viridian added, “We note that the April 15th sales uptick came just weeks after a stockpiling of cannabis had occurred in late March 2020 and at a time when Massachusetts rec sales were prohibited, and Nevada sales were restricted, making the increased sales level following the stimulus receipt seem even more significant.”

Charlotte Hanna, CEO of Rebelle cannabis dispensary in Great Barrington, MA said, “This past year has been fraught with massive change, which has caused so much stress for millions of Americans. The stimulus program will not only offer financial relief, but it will also allow a little extra for wellness. It’s been a long, hard winter and people want to start feeling good again.”
Viridian Advisors said it doesn’t anticipate as large of a boost in sales to occur with this year’s stimulus checks, but it does anticipate inflated sales volumes. “The total in stimulus money received for many individuals in January and this week combines to be significantly more than last year($2000 vs. $1200 for a qualifying single individual). Meanwhile, the timing is interesting given that Q1/21for many operators was to be by far the weakest quarter of the year even beyond typical seasonality. The Q1/21 relative weakness stems from the fact that many operators made acquisitions and expansion initiatives that have yet to contribute to results. As such, the increased sales in the quarter will likely disproportionately drive upside to full-year expectations and Q1/21 estimates and/or will offset any weakness from delays in integration or the buildout of assets.”
Kris Krane, President of 4Front Ventures said, “We should expect that the next round of stimulus checks will positively benefit the cannabis industry, much as it is expected to help all segments of the economy. These payments will allow consumers to spend on goods and services that they might not otherwise be able to afford due to the pandemic-induced economic downturn, putting money back into the overall economy and boosting businesses across the board. It will likely have an outsized effect on dispensaries located in lower to middle-income communities, where people have been disproportionately impacted by the downturn and will now have extra cash to meet their need and bolster businesses in the communities.

StaffDecember 4, 2020
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7min9860

Data from both Akerna (Nasdaq: KERN) and Headset agreed that Green Wednesday (the day before Thanksgiving) sales in 2020 easily beat Black Friday sales for the first time. Cannabis consumers clearly wanted to make their purchases in advance of Thanksgiving and were less inclined to go shopping afterward.  

Business intelligence from Akerna found that cannabis consumers spent approximately $238 million during the 2020 Thanksgiving weekend (11/25 – 11/28).  Green Wednesday was the single biggest sales day of 2020 with an 80% increase in daily sales. The average basket size for medical consumers was $122.64, representing a 5% increase over the daily average. Adult-use consumers spent, on average, $78.14, which is an increase of approximately 12%. 

This also marks the first time in four years that Green Wednesday has beat out Black Friday, which also saw a 75% increase in sales. 

“Once again, Thanksgiving ranks in the top 5 cannabis sales days of the year,” said James Ahrendt, Business Intelligence Architect, Akerna. “As we have noted throughout the year, daily sales averages have increased over the last year as a result of COVID. Since average days show such notable year-over-year growth, the percentage of growth during the holidays doesn’t seem as large. However, this is because more people, in general, are purchasing cannabis.”

Additional Insights

Sales by Product Category

  • Flower – 46.8%
  • Cartridge/Pens – 30.2% 
  • Concentrates – 13.9%
  • Infused Edibles – 7.4%
  • Other – 1.7%

Sales by Age Group

  • Under 30 – 29.2%
  • 30-40 –30.6%
  • 50 – 19.3%
  • 50-60 –11.9%
  • Over 60 – 9%

Sales by Gender

  • Female – 36.7% 
  • Male – 63.3% 

Headset Green Wednesday 

Here are the sales totals across all Headset Insights Premium Markets for Green Wednesday, Thanksgiving, and Black Friday 2020, plus the relative growth over last year’s totals for the same days:

 

Total Sales (CA, CO, NV, OR, WA)

  2019 2020 YoY Growth
Green Wednesday $29.4M $33.2M 12.9%
Thanksgiving $9.7M $11.2M 15.2%
Black Friday $31.4M $31.1M -0.9%

 

Headset noted that that overall sales increased this year on Green Wednesday and Thanksgiving, but sales on Black Friday were actually slightly lower this year than last year. The company said, “This is big news because this would be the first time we’ve seen a year-over-year decrease in such an important retail holiday in cannabis.”

Also very notable, this is the first time that total sales have been higher on Green Wednesday than on Black Friday. Headset fans may remember that data analyst Cooper Ashley predicted this in his recent interview on Cheddar TV. “

 

Sales Increase vs Previous 4 Weeks

  2019 Sales Lift 2020 Sales Lift
Green Wednesday 59.5% 40.2%
Black Friday 16.3% -4.7%

 

“Here we can see that this year both holidays had less of an increase in sales versus the previous four weeks. Green Wednesday’s relative increase dropped from around 60% last year to 40% this year, whereas Black Friday had 16% growth in 2019 and actually had about 5% fewer sales in 2020 versus the previous four Fridays. Both of these decreases could be related to the recent uptick in COVID-19 cases and increased lockdown measures in many recreational cannabis states.

 And lastly, we can see that on both holidays average basket size was much larger in 2020 than in 2019, which is something we’ve seen throughout the COVID-19 pandemic.”

 

Basket Size

Date  2019 2020 Growth
Green Wednesday $38.84 $48.38 25%
Black Friday $41.85 $50.56 21%

StaffNovember 25, 2020
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6min7480
Predictions for 2020
Headset

Headset forecasts an even larger than usual uptick in recreational cannabis sales on Green Wednesday this year for several reasons:

–  In all adult use cannabis states tracked by Headset, the total market has grown by at least 20% in total revenue over last year (when comparing October 2019 to October 2020).

– During the COVID-19 pandemic we have seen significant changes in consumer behavior. In March and April 2020, when many states were enforcing stay-at-home orders, the cannabis market saw a decrease in total transaction volume, but a significant increase in average basket size. This makes sense because customers were likely trying to minimize their trips to the dispensary, so they bought more per trip.Through the summer and into Autumn, average baskets have stayed significantly higher than they were pre-COVID, but transaction volume has crept back up to nearly the same level it was at in February. These two trends combined indicate a ‘new normal’ in the cannabis industry driving the highest monthly revenue totals since the beginning of the legal sales.
– Additionally, with many states reinstating COVID-19 lockdown measures, and advising against travel and social get togethers, Thanksgiving 2020 will be unlike any in living memory. With millions of Americans being asked to stay at home for the holiday, frankly, what else is there to do?
– Edibles have performed well throughout the COVID-19 pandemic. That along with their usual strong sales lifts during the holiday season leads us to predict Edibles and Beverages to again be the categories with the biggest sales lifts on Green Wednesday this year. Both product formats are conducive to indoor consumption (for those that don’t want to smoke or vape in their homes), and THC infused Beverages are often associated with celebration, as they are increasingly seen as a substitute for alcoholic beverages.
Akerna

“On average, Thanksgiving tends to be one of the Top 5 sales holidays of the year, and we expect that trend to continue this year,” said James Ahrendt, Business Intelligence Architect, Akerna (NASDAQ: KERN). “In the past, we’ve seen huge spikes in sales on Wednesday and Friday since most dispensaries are closed on Thursdays.”

Akerna anticipates that the average order total will be around $82.30 for adult-use customers and $128.46 for medical consumers, representing an increase of approximately $13 compared to the average order total on any other given day of the year.

Additional Thanksgiving Holiday Predictions:

Sales by product type:

  • Flower – 42%

  • Cartridge/Pens – 37%

  • Concentrates – 11%

  • Infused Edibles – 8%

  • Other – 2%

Sales by Gender

  • Male – 64%

  • Female – 36%

Sales by age group:

  • Under 30 – 28%

  • 30-40 –30%

  • 40-50 – 19%

  • 50-60 –12%

  • Over 60 – 11%

LeafLink
The cannabis industry, as measured by cumulative wholesale transaction volume growth through the LeafLink marketplace, increased by 40% between the start of the pandemic in March and October 2020. Overall, cumulative wholesale transaction volume is up 60% through the end of October compared to the start of the year, and we expect the growth trend to remain healthy through the end of the year. – Alex Feldman, General Manager of LeafLink Insights

Julie AitchesonNovember 24, 2020
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‘Tis the season for America’s favorite foodie holiday, and whether turkey, tofurkey, or none of the above are on the menu, this is sure to be a Thanksgiving like no other. With Covid-19 spikes turning the U.S. map red and growing concerns about the capacity of states to handle an even higher coronavirus positivity rate if citizens choose to gather, some thought leaders in the cannabis industry are taking a stab at predicting the impact on Thanksgiving sales.

Cannabis compliance technology company Akerna (NASDAQ: KERN) anticipates a 78% increase over average daily sales for 2020 during this Thanksgiving weekend, hitting $270 million between November 25 and November 28. James Arendt, Akerna’s Business Intelligence Architect, explains that the huge sales spikes typically happen on Green Wednesday and Black Friday as most dispensaries are closed on Thanksgiving Day, but this hasn’t prevented Thanksgiving from being one of the Top 5 sales holidays of the year. A trend that is expected to continue in 2020.  

Akerna projects that the average order total will be around $83.30 for adult-use consumers and $128.46 for medical consumers. This is an increase of roughly $13 over average order totals for the rest of the year. Cannabis flower is predicted to be the top seller, garnering 42% of sales with cartridges and pens coming in a strong second at 37%. Male users will likely make up the majority of consumers at 64%, with under 30’s and 30-40 year-olds making up a combined 58% of the top consumers over Thanksgiving.

Akerna’s data doesn’t make correlations with anticipated sales and the ongoing Covid-19 pandemic, but Joe Caltabiano, founder of cannabis and medical marijuana company, Cresco Labs, (OTC: CRLBF) highlights the fact that cannabis was deemed essential at the pandemic’s outset. “At the same time,” he adds, “we saw regulators rapidly adopt emergency rules allowing online ordering, curbside pick-up, and delivery in areas where it’s permitted.” These measures will no doubt contribute to keeping cannabis sales strong for Thanksgiving, as retail sales increased by 40% after the measures were taken and remained high even after the stimulus paid out by the federal government in April was exhausted. Caltabiano posits that the pandemic has made consumers even more comfortable with ordering online as a safer and more convenient purchasing option, with retailers offering special deals for those who choose to purchase online, further brightening the prospect for chart-topping Thanksgiving totals.

Caltabiano also predicts that the money saved on airfare, hotels, or other travel-related expenses by those choosing the “safer at home” approach this Thanksgiving may lead to a pandemic holiday trend of self-care. “This year’s new tradition could be treating oneself with an eighth of premium flower instead of buying a bottle of wine for the family dinner.” Between that and the fact that other pandemic-era holidays such as the 4th of July and Labor Day have seen increased retail sales, Caltablano thinks retailers will have ample reason to give thanks once Thanksgiving 2020 is done and dusted.


StaffNovember 12, 2020
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4min5560

Cannabis technology company Akerna (Nasdaq: KERN) announced financial results for its quarter ending September 30, 2020 with revenue rising 16% to $3.7 million over last year’s $3.1 million for the same time period. Akerna missed the Yahoo Finance average analyst estimate for revenue of $4.49 million.

The net losses jumped to $4.7 million over last year’s net loss of $2.3 million. The net loss per share was ($0.34), which missed the Yahoo Finance average analyst estimate of ($0.28).

“I’m thrilled to report we achieved 40% year-over-year software revenue growth in this quarter and have increased our total SaaS ARR by 44% over this same time last year,” said Jessica Billingsley, CEO of Akerna. “Looking forward, we are entering a period of massive market expansion.  Five new states have approved cannabis via ballot measure in the recent election potentially representing approximately $18M in new TAM for our software and services offerings, and many more states and countries have legislative initiatives proposed over the coming months. Our scaled ecosystem is uniquely positioned to capture these opportunities, with the most robust cannabis technology suite available.”

The company reported that its adjusted EBITDA was ($3.0 million), compared to ($2.2 million) for the period ending September 30, 2019. Cash was $14.3 million as of September 30, 2020

In a statement the company highlighted that its average new MJ Platform orders were up 94% year over year, MJ Platform transaction volume was up 181% year over year, retail order volume rose 68% year over year and retail order values were up 127% year over year. The company said it had a new bookings ARR of $1.2 million.

Akerna recently closed on a $12 million offering which the company said it intended to use for funding its growth initiatives, including product development, sales and marketing, strategic acquisitions, working capital, and general corporate purposes. At the time, investors were upset and the stock sold off. However, the shares began to rally again at the beginning of November, but this earnings miss has caused the shares to be trimmed in price again.


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