CleanSpark Inc (OTCMKTS:CLSKD), an advanced energy software and control technology company, told shareholders on Tuesday that it saw a record 783% year-over-year jump in revenue in fiscal year 2019.
For the fiscal year 2019 ending on September 30, the Bountiful, Utah, company posted a 783% jump in revenue to $4,532,782, compared to $578,635 in the same period in 2018.
Investors responded well, sending shares nearly 13.7% higher to $5.90 in morning trade.
The company also said that fiscal 2019 gross profit increased 358% to $671,696, up from $187,861 in 2018.
As a result, fiscal 2019 net loss per share improved by $7.37 to a loss of $6.25 per share, compared to a $13.62 loss per share in fiscal year 2018.
In a letter to shareholders, the company highlighted the execution of $915,000 in contracts for software and energy storage. Similarly, it emphasized the execution of nearly $59,000 in mPulse and mVSO SaaS annual recurring revenue contracts.
Increased adoption of its energy solutions
“As we continue to expand our product offerings and customer base, we are optimistic that we will continue to see increased adoption of our solutions. As a result, we expect our year-over-year revenues to continue to increase in fiscal year 2020,” said CleanSpark Inc CEO Zachary Bradford in a letter to shareholders.
“Our product adoption rate has continued to grow, and we have obtained $915,000 in new orders of our mPulse software and related equipment sales since August of which $13,000 is recurring in nature. All such new orders are expected to be delivered in the first calendar quarter of 2020,” he added.
CleanSpark's software — mPluse and mVSO (Microgrid Value Stream Optimizer) — enables a microgrid to be scaled to the user's specific needs and can be used by agricultural, commercial, industrial enterprises as well as the military and municipal governments.
Software-as-a-service distribution model
The company, founded in 1987, runs on a software-as-a-service (SaaS) distribution model. CleanSpark’s mPulse software and control suite operates on-site in real-time, providing economic dispatch controls to maximize performance and resiliency operations to back-up critical energy loads in the event of a utility disruption.
“Since launching our SaaS offering of mVSO just three months ago we have executed SaaS agreements that are expected to result in $88,000 in annual revenue of which $46,000 is recurring in nature,” said Bradford.
“Our expectation is that our SaaS sales will continue to increase rapidly over the fiscal year ending 2020 as we plan to increase our marketing efforts to take advantage of the opportunities we see in front of us,” he added.
The CleanSpark boss and chairman S Matthew Schultz said they were “particularly excited” about the “strength” in the equipment sales pipeline, which includes $715,000 in sales since September 30, and additional purchase orders under contract of $3,950,000.
The company also revealed that the strategic acquisition of CleanSpark Critical Power produced $3.7 million in revenue in fiscal 2019 linked to custom intelligent switchgear to support distributed energy and microgrid projects.
The company says its software is ideally suited for the rapidly expanding distributed energy resource (DER) market, which it has been targeting as a key revenue generator.
Contact the author Uttara Choudhury at [email protected]activeinvestors.com
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