AgJunction’s reported final result for 2020 showed a 50% drop in revenue. Total revenue in 2020 was US$16.3 million compared to US$39.2 million in 2019.
“At the beginning of last year, I don’t think anyone could have predicted just how disruptive 2020 would be due mostly to the COVID-19 pandemic,” said Dr. M. Brett McMickell, president and CEO of AgJunction.
“We continued developing in strategically important areas in off-road automation, such as sensor fusion, terrain mapping, vision tracking, and mobile applications. Although our 2020 sales results aren’t exactly where we thought they’d be when we started the year, we made great strides in prudently managing costs and optimizing our product mix, which led to a significant increase in our gross margin and improved bottom line profitability.
“During the fourth quarter, optimism returned to our indirect channel as we saw more OEMs restart development planning for their next generation equipment. In fact, we entered into agreements to provide various autosteering applications to two leading OEMs, Komatsu and Ploeger. Currently, we are continuing to focus heavily on maintaining strong partnerships with our existing OEM and VAR partners, while also working towards new partnerships that we expect to have news on in the coming months.
“Our direct channel saw strong momentum with 75% year-over-year revenue growth in our e-commerce store. This parallels the introduction of new AgJunction products, including the Wheelman Pro HP and Wheelman Flex HP, which are derived from the innovations we had made for our indirect channel. Additionally, we launched our first subscription offering through our e-commerce store.”
