Business
urban-gro, Inc. Reports First Quarter 2023 Financial Results and Reiterates Full Year 2023 Guidance
First quarter performance consistent with prior guidance with Revenue of $16.8 millionNet Loss of $5.1 million and negative Adjusted EBITDA1 of $3.4
About this update from Urban-gro, Inc.
[{"type":"text","content":"First quarter performance consistent with prior guidance with Revenue of $16.8 millionNet Loss of $5.1 million and negative Adjusted EBITDA1 of $3.4 millionRecord project backlog of $105 million as of March 31, 2023, as compared to backlog at the end of 2022 of $93 million, a 13% sequential increase of $12 million from more than 25 contractsReiterates full year 2023 revenue guidance of $100 million to $120 million, and Adjusted EBITDA1 guidance of negative $3.0 million to slightly positiveCompany to host conference call and webcast today, May 10, 2023 at 4:30 p.m. Eastern time LAFAYETTE, Colo., May 10, 2023 (GLOBE NEWSWIRE) -- urban-gro, Inc. (Nasdaq: UGRO) (“urban-gro” or the “Company”), an integrated professional services and design-build firm offering solutions to the Controlled Environment Agriculture (“CEA”) and commercial sectors, today reported first quarter results and reiterated its full year 2023 guidance. Bradley Nattrass, Chairman and CEO, commented, “Our first quarter performance is consistent with our expectations as we continue to demonstrate that the acquisitions and investments we made have created a more durable and uniquely diversified company. We continue to see demand for our solutions in all sectors.\" Mr. Nattrass added, \"Our primary near-term corporate priority remains our focus on achieving positive Adjusted EBITDA as quickly as possible. While we continue to focus on increasing our business with the Fortune 50 and Fortune 500 clients with whom we currently work as well as signing new turnkey design-build contracts in the CEA space, we are also continuing to drive operational efficiencies. To that end, in the second quarter, we initiated a cost optimization strategy that so far has generated annualized savings of approximately $2 million, and we will continue to seek efficiencies where available. All combined, we are positioning the business for long-term profitable growth.\" First Quarter 2023 Financial Results Revenue was $16.8 million, as compared to $21.1 million in the prior year period. This decrease from the prior year period was predominantly driven by a $14.2 million decrease in equipment systems revenue reflecting significantly reduced equipment demand in the U.S. cannabis market as a result of ongoing state-level regulatory delays in the license-awarding process, as well as the lack of moveme...