Urban-gro, Inc. Reports Growth and Financial Outlook for 2024

Urban-gro, Inc. announced its financial results for the fiscal year of 2023 and provided a positive outlook for 2024, indicating a strategic focus towards growth and profitability. With a significant backlog of $110 million reported as of December 31, 2023, marking a notable $26 million sequential increase, the company is poised for a strong performance moving forward.

For the full year of 2023, urban-gro reported revenues of $71.5 million, which represents a 6.7% increase from the previous year’s $67.0 million. Despite facing a net loss of $18.7 million for the year, the company has outlined a revenue target of over $84.0 million for 2024, expecting a minimum growth of 17.4% alongside a forecast for positive Adjusted EBITDA.

Urban-gro’s CEO highlighted the 2023 fiscal year as a period of transition, citing diversification across commercial sectors as crucial to countering softness in the Cannabis segment. This strategic pivot resulted in 70% of their revenues stemming from diversified commercial sectors.

The outlook for 2024 remains robust, with the firm expecting a strong year of organic growth driven by an increased backlog and streamlining of its operations. Urban-gro anticipates the boost in revenues and profit margins through enhanced productivity and improved service delivery stemming from its team of experts across multiple disciplines.

The firm also plans to capitalize on potentially favorable industry-specific regulatory changes, projecting that these factors, combined with the implemented cost reductions exceeding $8 million, will significantly contribute to achieving positive Adjusted EBITDA and long-term profitable growth.