CleanSpark Inc (NASDAQ:CLSK) delivered its sixth consecutive record-setting quarter with a significant increase in revenues thanks to an expanded product offering and customer base.
The Salt Lake City-based company saw its revenue jump 372% and gross profit increase by 238% during the last three months of 2019.
The totals were boosted by a couple of significant agreements and product releases that helped propel the microgrid energy company to almost $1 million in revenue over the quarter.
READ: CleanSpark seeing increased demand for its energy solutions as power outages hit communities worldwide
In November 2019 the firm inked a 10-year exclusive contract to supply International Land Alliance Inc (OTCMKTS:ILAL) with its energy software solutions. The two firms are currently working on two initial feasibility studies, CleanSpark said in a release, that could lead to at least $200,000 in related revenue in 2020.
On the product front, the firm released new features and improvements to its SaaS Microgrid Value Stream Optimizer platform and its mPulse Controls platform.
A key milestone for the company was its uplisting to the Nasdaq stock exchange, a move that CEO Zachary Bradford and chairman Matthew Schultz called a “major corporate achievement” that reflected its momentum and financial performance throughout 2019.
“We are resolved to put all our efforts towards achieving profitability in the coming year by endeavoring to significantly improve our margin profile by focusing on increasing software sales specifically our mVSO Software and a Services (SaaS) platform,” the two executives said in a letter to shareholders accompanying the quarterly results.
“We are properly capitalized and believe we have the tools available to us to achieve our 2020 revenue targets. Through our planned initiatives we expect to begin approaching break-even in late 2020 and expect to achieve profitability in 2021.”
The executives outlined a number of pathways to revenue growth in fiscal 2020, including marketing the mVSO platform via a targeted online campaign coupled with traditional channels and increasing sales of mPulse through orders under contract.
CleanSpark recently announced it had completed the acquisition of design and innovation consulting firm p2klabs Inc, a Las Vegas-based entity that specializes in applying design, technology, and business process methodologies to create intuitive digital experiences. The acquisition enables CleanSpark to accelerate the development and deployment of its software platforms and expand overall sales and marketing capabilities, the company said on Tuesday.
Bradford and Schultz said that based on historical trends, they expect p2klabs’ added revenue stream to carry profit margins of up to 65%.
“We expect the acquisition to not only enhance and increase our existing software platform sales, but we also expect it to add up to $2.0 million in new services-based revenue directly related to the acquired business over the next twelve months,” Bradford and Schultz told investors.
For the quarter ending December 31, the firm posted revenues of $976,824 compared to $262,907 during the year-ago period. Gross profit came in at $94,103. The firm narrowed its net loss to $1,916,254 from $2,283,551 a year prior. Net loss per share improved by $0.23, coming in at $0.40.
Shares of CleanSpark were trading at $4.40 on Tuesday morning.
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