3Q21 Results: +247% Revenue Growth Fueled by Bitcoin Mining; Management Raises FY21 Guidance



KEY POINTS
  • On August 16, 2021, CleanSpark reported its 3Q21 earnings results. The company delivered strong revenue growth fueled by bitcoin mining, but missed consensus estimates for the quarter. The stock traded down -15.1% post-earnings and is currently trading at ~1.9x 2022E sales.
  • Consolidated revenue in the quarter was up +246.5% y/y and +46.8% q/q. Bitcoin mining grew +28.8% q/q, energy accelerated +159.6% q/q, and other revenues increased +34.0%. All-in-all, revenue saw positive momentum sequentially.
  • Revenue acceleration flowed through to gross profit, which saw +13.8x growth y/y to $8.1 million, although gross margin contracted -13.4 pp q/q. Adjusted EBITDA increased +$3.4 million y/y to $2.3 million or 19.3% of revenue.
  • Net income fell by -$8.1 million y/y to -$16.7 million, mainly driven by significantly higher payroll expenses related to non-recurring executive compensation. Professional fees saw an uptick from legal services to resolve outstanding litigation. D&A also increased as more equipment was used for data center and bitcoin mining applications. Marketing expenses drove higher G&A as well.
  • The company ended the quarter with cash on hand of $22.2 million and $10.4 million of bitcoin (~301.4 bitcoins) on the balance sheet. Debt outstanding was $1.4 million, comprised of lease liabilities. Cash decreased from the prior quarter mainly due to increased deposits on bitcoin mining equipment and capex. Importantly, CleanSpark’s hashrate capacity now exceeds 820 PH/s or 6-7 bitcoins per day.
  • Management raised its FY21 revenue guidance by +$3.0 million and now expects revenue of $49-63 million. This is comprised of $38-48 million in bitcoin mining revenue, $9-12 million in energy revenue, and $2.0 million in other services revenue.
  • Our prior content on CLSK can be accessed HERE.

EARNINGS SNAPSHOT

On August 16, 2021, CleanSpark reported its 3Q21 earnings results. The company delivered strong revenue growth fueled by bitcoin mining, but missed consensus estimates for the quarter. The stock traded down -15.1% post-earnings and is currently trading at ~1.9x 2022E sales.

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