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CleanSpark sports record quarterly revenue spearheaded by switchgear sales, energy storage

The company saw revenue of $3.6 million during the three months ended March 31, 405% more than the $723,889 it recorded in the same period last year

Sprouts growing from stacks of quarters leading to a jar of quarters
CleanSpark, based in Salt Lake City, makes software that allows an energy microgrid to be scaled to the user's specific needs

CleanSpark Inc (NASDAQ:CLSK), a diversified software and services company, posted quarterly results Tuesday revealing revenue that surged five-fold year-over-year on sales of custom switchgear equipment. 

The company saw revenue of $3.6 million during the three months ended March 31, 405% more than the $723,889 it recorded in the same period last year. Gross profit jumped 434% to $704,037 from $131,881 over the same period and net loss narrowed to $1.13 per share from $1.88 per share.

During the past two quarters, CleanSpark has delivered $4 million in custom switchgear equipment. The company has another $3.5 million in hardware purchase orders under contract, which it expects to deliver over the next to quarters.

READ: CleanSpark revenue trending up as it eyes becoming profitable by end of 2020

Cleanspark said it continues to target $7 million in delivered equipment sales before the end of its fiscal year at the end of September.

“The past months have been challenging for the entire world and our hearts go out to all those that have been affected by the COVID-19 pandemic,” CEO Zach Bradford wrote in a letter to shareholders. “We count ourselves as very fortunate as we delivered our seventh consecutive record-setting quarter with a significant increase in year-over-year revenues during this trying period.”

Another reason for CleanSpark’s revenue growth is the company’s January acquisition of design and innovation consulting subsidiary p2klabs Inc. The company is targeting $2 million in p2klabs revenue by January 31, 2021, the anniversary of the acquisition. 

“This acquisition has enabled CleanSpark to accelerate the development and deployment of new features to our software platforms while also expanding our overall sales and marketing capabilities,” Bradford wrote. “In addition to the internal resources provided, p2klabs produces high-margin service revenues and contributed a total of $231,000 in revenues between February 1, 2020 and March 31, 2020.”

On the energy storage front, CleanSpark delivered more than $345,000 in software and associated hardware during the six months ended March 31. As of Tuesday, the company had more than $1.1 million in additional software, energy storage and associated hardware orders under contract.

All told, the company had $5.6 million in revenue under contract from its three major lines of business as of March 31.

CleanSpark, based in Salt Lake City, Utah, makes software that allows an energy microgrid to be scaled to the user's specific needs and implemented across commercial, industrial, military and agricultural sectors.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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NASDAQ:CLSK

Price: 11.24 USD

Market Cap: $400.05 m

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