Toronto, Ontario – Deveron Corp. (TSX-V: FARM) (“Deveron” or the “Company”), a leading agriculture data company in North America, is pleased to report Q1 2022 year-over-year revenue growth of 111%. Revenue grew to $1,406,961 in Q1 2022 from $667,726 in Q1 2021, driven by 134% growth in data collection revenue. Deveron reminds investors that the first quarter of the year typically is impacted by the seasonal nature of the North American farming business.
First Quarter 2022 Financial and Operational Highlights
The Company’s financial performance improved over the previous year, driven by organic growth across its product and services divisions due to expanding farm engagement, increased digital ecosystem development with the integration of Farm Dog, and an increase in enterprise work related to the Company’s agriculture carbon credit platform.
- Revenue in Q1 2022 grew 111% year over year to $1,406,961 from $667,726 in Q1 2021.
- Gross profit in Q1 2022 was $737,674, up 92% from $383,668 in Q1 2021.
Operating expenses in Q1 2022 grew to $4,287,552 from $1,363,136 reflecting the Company’s investment in digital product and engineering. The Company also invested in scaling its sales, operations, and administrative functions to support 2022 growth initiatives. Deveron acquired six companies in 2021 which were not integrated in Q1 2021. The first quarter was also impacted by non-cash charges for stock compensation, depreciation and amortization and foreign exchange totaling $946,394.
“Even in our seasonally low quarter, we delivered 111% revenue growth,” stated David MacMillan, President, and CEO of Deveron. “This quarter, we had several successful new initiatives which will materially contribute to annual sales growth for the Company. We acquired one soil laboratory business in the US adding additional testing capacity for our growing service network and we are seeing strong follow-on growth from the businesses we acquired in 2021. Given the investments we have made in our network of data technicians across the US and Canada, coupled with infrastructure investments in product and engineering, we believe we are well positioned for strong results as we start into our historically busier seasons. Finally, subsequent to the end of the quarter, Deveron completed the acquisition of A&L Canada. This transformative deal positions Deveron for significant growth in 2022, through vertical integration of agriculture testing, with A&L Canada having $26.7 M in TTM revenue and $11.6 M in TTM EBITDA*.”