To non-techies, this may seem like a "so what" type of announcement, but to developers, it's a big deal.
Akerna Corp. (KERN) , the developer of MJ Platform, the cannabis industry's first seed-to-sale enterprise resource platform, recently announced that the platform has reached SAP Certification, in integration with SAP NetWeaver.
This signals a big step for Akerna. It's also likely the reason why the stock price has moved higher.
The shares were trading near $6.80 when the SAP Certification was announced. They are are now trading at $9.25.
To reach this point, MJ Platform's custom-developed ABAP add-on was confirmed for deployment on SAP's (SAP) own enterprise resource software, SAP ERP 6.0. The compatibility between the two software brands ensures solutions for multi-state operators and brings the best of Akerna and SAP together. ABAP is a high-level programming language created by SAP that allows large corporations to customize the SAP ERP. This customization allows for company-specific workflows, including financial management.
MJ Platform's new SAP certification significantly increases its ERP offerings, which include finances and traditional compliance tracking. Users of the platform will be able to examine financial data points, such as the cost of goods sold across multiple facilities and states. The software generates reports at an organizational level and makes data easy to review.
Cresco Labs (CRLBF) Chief Information Officer Mo Dastagir said, "To see Akerna being recognized by SAP and being granted this certification is exciting for us at Cresco Labs. At Cresco Labs, we are going down the path of deploying SAP ERP as a critical platform that enables our growth. We know that a vital aspect of meeting this objective is integrating with the Akerna seed-to-sale platform in some of the key states we operate in."
Akerna has tracked $20 billion in cannabis sales over 33 states, 14 countries, and three languages since its inception in 2010, and remains at the forefront of the cannatech space. MJ Platform works in all stages of the cannabis supply chain, including retail, cultivation, brands, distributors, and manufacturing.
Jessica Billingsley, Chief Executive Officer, Akerna said, "Earning this SAP certification sets us apart from our competitors and confirms our status as a leader in enterprise-level cannabis software solutions. With this SAP-certified integration, we can provide our clients with in-depth ledger information that helps us stand out from other seed-to-sale software providers."
According to Market Research Future the Healthcare Enterprise Software Market can continue to grow at a rate of 13.0% between 2016 and 2025 (assessment period), and reach $76.45 billion by the year 2025. The market demand for this type of software has been growing due to the need from healthcare companies and rising spending by start-ups on mHealth.
Akerna announced the launch of MJ Retail in November 2020. At the time Billingsley said, "MJ Platform is integral to the success of our clients' business. Launching MJ Retail was the next logical step to support our growing number of clients who are focused on delivering an exceptional customer experience no matter how customers shop." Billingsley shared that, "As the in-store experience continues to evolve MJ Retail has been designed to help our clients accelerate and streamline customer checkout, creating an optimal customer experience."
In November, the company highlighted that its average new MJ Platform orders were up 94% year over year, MJ Platform transaction volume was up 181% year over year, retail order volume rose 68% year over year and retail order values were up 127% year over year. The company said it had a new bookings ARR of $1.2 million.
Akerna recently closed on a $12 million offering, which the company said it intended to use for funding its growth initiatives, including product development, sales and marketing, strategic acquisitions, working capital, and general corporate purposes.