Dear Shareholders,
As we begin 2022, I’d like to provide you with a brief update on how we completed 2021, plus a high-level view of the upcoming season in the Northern Hemisphere. Despite external headwinds associated with weather and COVID-related market disruptions in the first half of the year, 2021 ended on a strong note.
I am pleased to report that fourth quarter 2021 revenues are estimated to reflect growth in the mid-30% range, as compared with fourth quarter 2020 revenues. For the second half of 2021, revenues are estimated to have increased 20+% when compared with revenues in the second half of 2020. On a full year basis, we estimate revenue growth in the low double-digit to mid-teens range for 2021 as compared with 2020, in line with our forecast.
We made positive headway on a number of other key financial metrics in 2021. We expect that annual gross margins for 2021 will be on track with our target of the upper 50% range, and full-year operating expenses will be relatively flat when compared with those in the prior year. Collectively, these results are expected to contribute to improvements in Adjusted EBITDA and cash from operations – two key measures of long-term value creation. We benefited from the continuing support of warrant holders, who exercised the fifth and final tranche of their warrants in December to help fulfill our long-term investment needs. Overall, we remain in a healthy financial position to execute on our strategy. We will provide further detail on the fourth quarter and the full-year results, plus the financial outlook for 2022, when we report earnings in March.
We were encouraged by orders placed in the latter part of the quarter, an important indicator of our customers’ plans for the first half of 2022. Our seed treatment solutions were in high demand, especially in
We made major strides in advancing key products in our rich research and development (R&D) pipeline. As announced previously, we have submitted MBI-306 – our second-generation bioinsecticide/bionematicide – for regulatory approval in
We also recently announced our acquisition of exclusive rights to high-performing strains of a microorganism with a novel mode of action that we believe will accelerate the advancement of our bioherbicide, MBI-006. This breakthrough product has the potential to give growers a new, more sustainable option for controlling grassy and broadleaf weeds – and is particularly important for weeds that have developed resistance to conventional herbicides – with a compelling return on investment versus conventional products. We believe our suite of alternative solutions to weed control will allow us to make a competitive entry into the
To close, we are optimistic about the upcoming spring season in the Northern Hemisphere. The western
I am particularly grateful for the dedication of our employees as we addressed the numerous challenges of 2021 and emerged well positioned to deliver long-term future success. On behalf of everyone at Marrone Bio, our thanks for your continued support of our company and of our commitment to bringing breakthrough sustainable agricultural solutions to growers around the world. We remain confident that, going forward, MBI is well positioned to outpace our peers in the ag biological industry.
All the best,
Chief Executive Officer
The anticipated results discussed in this press release are based on management’s preliminary, unaudited analysis of financial results for the three months and year ended
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This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding strategy, product development, future operations and plans, including assumptions underlying such statements, are forward-looking statements, and should not be relied upon as representing the company’s views as of any subsequent date. Examples of such statements include estimates and expectations of management with respect to the company’s fourth quarter and full year 2021 financial results; financial guidance and other statements regarding the company’s expected future revenue growth, margins, operating expenses, and other financial results; statements regarding anticipated regulatory approvals for, demand for, adoption of, benefits of, adoption of and revenues from the company’s products; and statements regarding anticipated market trends, including with respect to weather, commodity prices and addressable market sizes. Such forward-looking statements are based on information available to the company as of the date of this release and involve a number of risks and uncertainties, some beyond the company’s control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including changes resulting from the company’s finalization of its financial statements for and as of the period and year ended
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