Clever Leaves Holdings Inc. (CLVR) Stock in Decline after a Tremendous Friday, Here’s Why

Clever Leaves Holdings Inc. (CLVR), a company involved in the development of cannabinoid products, had a phenomenal run during Friday’s regular trading session. CLVR stock rocketed by 143.04% during the regular trading session to close the day at $3.84. Owing to the profit-taking factor, the stock has slid 9.37% in the premarket trading session and consequently was trading at $3.48 when last checked. The stock surged on Friday following the announcement of strong financial results.

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Q4 & FY 2021 Financial Results

On Friday, CLVR announced the financial result for Q4 and FY 2021. During the fourth quarter, the revenue of the company increased by 25% on a year-over-year basis to reach $4.2 million. The gross profit for the quarter was negative $0.3 million compared to $2.3 million during the same quarter of the preceding year. The net loss suffered during the three months was $24 million versus $0.9 million during Q4 2020. During fiscal 2021, total revenue of $15.4 million was generated, an increase of 27% on a year-over-year basis. Clever Leaves suffered a net loss of $45.7 million during FY 2021 versus $25.9 million during FY 2020.

FY 2022 Outlook

CLVR also reiterated the outlook for the fiscal year 2022. The revenue for the full year 2022 is expected to remain in the range of $20 million to $25 million. The adjusted gross margin is expected to fall in the range of 50% to 55%. Clever Leaves expects the adjusted EBITDA to remain between the ranges of negative $23 million to negative $20 million during fiscal 2022. The annual capital expenditures are expected to remain between $2 million and $3 million during FY 2022.

Comments from CLVR CEO

Andres Fajardo, President and incoming CEO of CLVR, while commenting on the development said that the company has made steady progress during the fourth quarter. The steps like strengthening of operational foundation and advancement in the commercial momentum are the epitome of that progress, which places the company in a solid position for the fiscal year 2022.

What’s Ahead for CLVR?

Looking ahead, analysts are of the view that CLVR stock holds several positive signals at the moment, yet they are not enough to be considered a buy candidate. Hence, at the current level, the stock should be considered a hold candidate while waiting for future developments.