If there was any question what company is the dominant player in the Canadian marijuana industry, it should now be settled. Canopy Growth (NYSE:CGC) reported its third-quarter results Thursday evening and the big marijuana grower is clearly the leader.
This was a tremendously important quarter for Canopy, as it was the first time the company reported sales from the recently opened Canadian recreational marijuana market. Canopy’s headline revenue number was great, but digging into its results revealed even more good news. Here are five things you’ll really want to know from Canopy’s sizzling Q3…
1. Ginormous revenue growth
Everyone expected Canopy Growth would report tremendous revenue growth in Q3. And that’s exactly what the company did.
Canopy posted Q3 net revenue of 83 million in Canadian dollars, which is roughly $62 million in U.S. dollars. This reflected a ginormous year-over-year increase of 283%. The comparison to the previous quarter was nearly as impressive, with Canopy’s net revenue soaring 256% over the second quarter.
Analysts had been optimistic about Canopy’s performance, but reality proved to be even better than they anticipated. The consensus revenue estimate for Q3 was CA$81.1 million according to analysts surveyed by FactSet, nearly CA$2 million below Canopy’s actual result.
2. A commanding recreational market share in Canada
Aurora Cannabis (NYSE:ACB) beat Canopy to the punch earlier this week in reporting its results for the quarter ending Dec. 31, 2018. Aurora announced that it captured a market share of around 20% in the Canadian recreational pot market. Sounds good, right? Just wait.
Canopy Growth didn’t include any market share information in its regulatory filings for Q3. However, we can get a pretty good idea of the company’s market share by comparing its recreational sales to Aurora’s.
Aurora reported recreational pot sales of CA$21.6 million. Canopy blew that number out of the water with recreational sales of…
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