Tilray’s (NASDAQ: TLRY) loss of $0.36 per share in the third quarter was wider than the year-ago loss of $0.20 per share. Analysts expected the company to post a loss of $0.30 per share. The cannabis company grew its revenue by 409% to $51.1 million in the third quarter of 2019 versus the market’s expectation of $49.5 million. TLRY stock rose about 2% immediately after the earnings announcement in the after-market session.
Tilray’s revenue growth was driven by the Canadian adult-use market, the Manitoba Harvest acquisition, and growth in international medical markets as a result of the first GMP certification of the Portugal facility.
Tilray sold 10,848 kilograms of weed in the recently ended quarter compared to 1,613 kilograms sold in the prior-year quarter. The average net selling price per gram decreased to $3.25 from $6.21 in the year-ago quarter, due to the shift in product and channel mix.
“We are in the early days of seeing our strategic initiatives bear fruit – including our European expansion, brand portfolio evolution and strategic partnership product launches. We continue to expect significant growth in the fourth quarter and into 2020,” said CEO Brendan Kennedy.
The Nanaimo, British Columbia-based weed firm entered into an agreement to acquire cannabis retailer FOUR20 at the end of August. This transaction is expected to complete by the end of the first quarter of 2020.
Under the agreement terms, Tilray will deliver up to C$110 million consisting of C$70 million in Tilray Class 2 common stock at closing and $40 million in Common Stock subject to the achievement of certain performance milestones by FOUR20.
Earlier today, Cronos Group (NASDAQ: CRON) reported its third quarter results in which the company swung to a profit from a loss year ago. Revenue rose sharply to CAD12.7 million, helped by the launch of the adult-use market in Canada and the inclusion of the Redwood business.
Shares of Tilray, which plunged to a new 52-week low ($20.20) last month, lost 69% of its value so far in 2019 and plunged 81% from this time last year.