Urban-gro, Inc. (Nasdaq: UGRO) reported preliminary select financial performance for its full fiscal year ended on December 31, 2021 saying revenue should be approximately $62 million, which exceeds guidance of greater than $60 million provided on November 9, 2021. The company said this implies growth of more than 140% compared to $25.8 million in the fiscal year 2020. urban-gro also said it expects positive adjusted EBITDA for the fourth quarter of 2021 with the full fiscal year 2021 to be greater than $2.2 million, which represents an improvement of more than $2.9 million from the full fiscal year 2020.
“2021 was an exceptional year for our organization and I’m pleased we exceeded our business and financial expectations,” said Chairman and CEO Bradley Nattrass. “As we move into 2022, we are experiencing strength in our diversified global CEA markets and continue to enjoy significant momentum with both new and existing clients. Moreover, our record consolidated backlog demonstrates the execution of our growth strategies as the increase in our backlog also extends to our services business, which is performing extremely well following our accretive acquisition of 2WR+ in 2021. Further, additional benefits of these services agreements have yet to be realized as we expect significant waterfall revenue of new associated equipment contracts in 2022.”
Urban Gro also said that it expects to finish the year with a record consolidated backlog in excess of $30 million, consisting of more than $25 million in equipment and more than $5 million in service contracts. Last month the company said it had signed two new contracts involving long-time urban-gro clients. The first contract was a strategic enterprise agreement signed with a multi-state operator (MSO) client that operates under a globally recognized brand and provides a variety of cannabis products in regulated markets around the world. In addition to being the exclusive provider of architecture, engineering and design services for the development and build-out of the client’s new cultivation facilities, urban-gro will also be the exclusive equipment supplier for all the mechanical and cultivation equipment needs of the facilities. The second contract is with one of the leading Canadian-based licensed producers and is expected to generate approximately $9 million dollars of cultivation equipment revenue over the next several quarters. This contract is incremental to urban-gro’s announced backlog of $22.5 million as of September 30, 2021.