The Market Herald: Clear Blue Technologies (TSXV:CBLU) grows Q3 revenue by 139 percent
- Clear Blue (CBLU) has reported 139 percent year-over-year revenue growth for Q3 2021
- The increase was due to telecom sales attributed to contracts with telecom infrastructure operators in Africa
- The company is expecting further growth from telecom rollouts and satellite/WiFi-related orders through 2022 and into 2023
- Clear Blue Technologies delivers clean, managed, wireless power using its patented Smart Off-Grid technology
- Clear Blue (CBLU) is unchanged trading at $0.29 per share
Clear Blue (CBLU) has reported 139 percent year-over-year revenue growth for Q3 2021.
On a trailing twelve-month basis, revenue was a record C$9,021,716, representing a 131-per-cent increase from the previous period, which is mainly attributed to deployments with telecom infrastructure operators in Africa.
Gross profit was $2,607,287, a 163-per-cent increase from the previous period.
Non-IFRS adjusted EBITDA was $(2,551,702) compared to $(4,006,627) for the previous period.
For Q3, ending September 30, 2021, revenue was $2,247,857, a 139-per-cent increase over Q3 2020, due to telecom sales attributed to contracts with telecom infrastructure operators in Africa.
Gross profit was $882,139 compared to $375,595 in Q3 2020.
Quarterly non-IFRS adjusted EBITDA was $(329,620) versus $(796,293) in Q3 2020.
Pro-forma unaudited cash and inventory as of November 15, 2021, was $5,902,173 ($2,843,693 cash + $3,058,480 inventory as of September 30, 2021), which was approximately 150 per cent of total 2020 revenue.
Subsequent to quarter-end, Clear Blue completed a private placement of convertible unsecured subordinated debentures for total gross proceeds of $4,434,000. It will use the proceeds for working capital and scale its business.
Outlook and management comments
- Customer planning for telecom system rollouts and Illumient construction planning for 2022 is very active, leading to upgrades to internal volume forecasting for the first two quarters of 2022
- The company expects early orders from its new Pico-Grid line pertaining to satellite/WiFi connectivity. The new line of business is expected to be a meaningful revenue contributor beginning in 2023
- By early Q1 2022, the company is anticipating a large order that could potentially double its bookings from Q3 levels of $2,884,686
- FTM revenue from Q4 2021 to Q3 2022 is expected to be $9,000,000 versus TTM revenue of $9,000,000 as of September 30, 2021
- Management expects its gross margin to be in the 30 to 35 percent range, owing to ongoing global supply chain constraints. In the medium to long term, it expects the margin to rise to the 33 to 38 percent range
Miriam Tuerk, CEO of Clear Blue, stated,
“We have seen an exciting year to date and our TTM numbers clearly reflect our traction with deployments with infrastructure operators in Africa. We would also like to draw investors’ attention to our outlook, where we believe an annual revenue of $15,000,000-20,000,000 would allow us to be EBITDA positive.
Doubling our TTM revenue over the past year doesn’t come without some growing pains though, and the growth of Clear Blue through Q2 and Q3 required additional attention to cash flow and inventory management. However, with our recent private placements, and investment in inventory, we are in a strong position to fulfill further large-scale rollouts expected in 2022.
Clear Blue has always had a strong focus on innovation as a leader in the smart off-grid market, so we continued to invest significantly in R&D for Q3 to further new product development for the fast-growing wireless cellular and satellite markets. With the expected launch of this solution in 2022, we hope to bring continued growth to the company through market diversification while showcasing strong, ongoing revenue for investors.”
Clear Blue Technologies delivers clean, managed, wireless power using its patented Smart Off-Grid technology.
Clear Blue (CBLU) is unchanged trading at $0.29 per share as of 10:08 am ET.