Benzinga | Feb 12, 2021 10:31AM EST

CleanSpark Reports Q4 Earnings, Expects Strong FY21 Revenue Growth

* CleanSpark, Inc. (NASDAQ: CLSK) reported year-on-year revenue growth of 130% to $2.26 million in the fourth quarter of FY20, missing the consensus estimate of $2.83 million.

* Strong service, software, and related revenues and digital currency mining revenue drove the growth.

* The energy business, digital agency, and Bitcoin mining segments contributed 54% (down from 100%), 13%, and 32% of the revenue.

* Gross margin rose 41% to $0.92 million with a margin expansion of 3,133 basis points to 41% from high-margin Bitcoin mining and related revenue.

* Loss from operations doubled to $6.2 million as the operating expenses doubled.

* Net loss per share dropped 20% to $0.32, missing the consensus estimate of $0.12. As a result, the negative operating cash flow rose to $6.8 million.

* The revenue concentration fell from 91% to 37%.

* CleanSpark completed ATL Data Center's acquisition to support its Bitcoin mining operations and entered the Electric Vehicle (EV) charging station market.

* It expects over $30 million in total revenue in FY21, above the analyst estimate of $27.84 million. CleanSpark also aims to expand its residential initiatives, including launching a new offering by next week.

* Price action: CLSK shares are down 4% at $28.1 on the last check Friday.