Agrify Corp
NASDAQ:AGFY
Agrify Corp
Agrify Corp. operates as a developer of advanced and proprietary precision hardware and software grow solutions for the indoor agriculture marketplace. The company is headquartered in Billerica, Massachusetts and currently employs 136 full-time employees. The company went IPO on 2021-01-27. The firm's micro-environment-controlled Vertical Farming Units (VFUs) enable its customers to produce quality products. Agrify brings data, science, and technology to its customers for control over cultivation and extraction. The firm offers Agrify Precision Elevated cultivation solution that combines integrated hardware and software offerings with a range of associated services, such as consulting, engineering and construction. Its business model includes equipment sales for the Agrify Vertical Farming Unites (AVFUs) as well as recurring software-as-a-service (SaaS) revenues for Agrify Insights. The firm sells its equipment and services to customers under a combination of a contract and purchase order.
Agrify Corp. operates as a developer of advanced and proprietary precision hardware and software grow solutions for the indoor agriculture marketplace. The company is headquartered in Billerica, Massachusetts and currently employs 136 full-time employees. The company went IPO on 2021-01-27. The firm's micro-environment-controlled Vertical Farming Units (VFUs) enable its customers to produce quality products. Agrify brings data, science, and technology to its customers for control over cultivation and extraction. The firm offers Agrify Precision Elevated cultivation solution that combines integrated hardware and software offerings with a range of associated services, such as consulting, engineering and construction. Its business model includes equipment sales for the Agrify Vertical Farming Unites (AVFUs) as well as recurring software-as-a-service (SaaS) revenues for Agrify Insights. The firm sells its equipment and services to customers under a combination of a contract and purchase order.
Revenue Miss: Q3 revenue came in at $7 million, down 55% year-over-year, falling short due to deferred revenue from a customer dispute and cash spending limits.
Deferred Revenue: $5.3 million in design and build revenue was not recognized due to a lawsuit with Bud & Mary's, with management confident in eventual recovery.
Guidance Lowered: Full-year revenue guidance reduced to $65–70 million from $70–75 million, solely due to the deferred Bud & Mary's revenue.
Cost Actions: Management implemented cost reductions, including $1.1 million in severance and a $15 million bad debt reserve, to combat industry headwinds.
Extraction Business: Extraction revenue was $5.7 million in Q3, with pipeline momentum expected to drive a strong rebound in Q4.
Rapid Deployment Program: New rapid deployment program (RDP) saw strong initial demand, with three new customers and $7.5 million in hardware agreements signed.
Cash Position: Ended Q3 with $12.5 million in cash and securities, supplemented by $15.6 million raised post-quarter under the ATM program.
