Tilray, Inc. [NASDAQ: TLRY] announced its Q2 results yesterday. The company reported a Q2 loss of $0.32, against analyst expectation of $0.23. The figure is also higher than what the company reported last year, when it had an EPS loss of $0.17. Nonetheless, its revenues rose to $45.9 million in Q2, which is much higher than the $9.74 million that it recorded last year. Adjusted for Canadian taxes, the company’s net revenues for Q2 stood at $42 million.
The company’s revenues were driven by the Canadian recreational market and the medical Cannabis market. In the recreational marijuana market, the company’s sales increased by 90% to $15 million. On the other hand, the company’s medical cannabis sales increased by 117% and were close to $9.1 million. Q2 sales were also boosted by the company’s acquisition of Manitoba, which accounted for 43% of Tilray’s Q2 revenues.
The company’s net loss for Q2 was largely due to its interest expense. The interest expense shot up from under $500k last year, to a figure close to $8.6 million in Q2. The company’s operating expenses have also shot up by 257%, when compared to a year earlier. It is also noteworthy that, the company’s cash stockpiles have declined. Compared to its Q1 figures, the company’s cash-and-cash equivalent also declined from $325.4 million to $220.9 million.
In yesterday’s trading, Tilray gained by 8.38% to close the day at $46.02. In the day, it was trading between $42.90 and $46.22. Average volumes for the day stood at 4,088,608 shares. At yesterday’s close, the company had a market cap of $4.475 billion. From the charts, the stock was forming higher lows all through the session, an indicator that the bullish trend is possibly established short-term. However, in pre-market trading today TLRY is indicating a pullback and is trading lower on the charts. Technically this is not a good sign short term as it may test its recent support levels.
About Tilray Inc
Tilray Inc engages in research, cultivation and value addition of Medical marijuana. It was incorporated in 2018 and has its headquarters in Nanaimo, Canada. The company sells to pharmacies, patients, hospitals, research facilities, among other industry players. It has operations in the U.S, Canada, the U.K and a host of other nations.