On Friday’s Trade To Black for January 10, 2024, hosts Shadd Dales and Anthony Varrell discuss the latest headlines from the week. This includes Tilray’s recent earnings report, the judge ruling in Florida regarding canine alerts, and Doordash’s latest service offering. Gretchen Gailey also joins the show to discuss grassroots initiatives to help promote reform.
Cannabis company Tilray Brands (NASDAQ:TLRY) missed Wall Street’s revenue expectations in Q4 CY2024, but sales rose 8.9% year on year to $211 million. On the other hand, the company’s full-year revenue guidance of $975 million at the midpoint came in 8.2% above analysts’ estimates. Its non-GAAP loss of $0 per share was $0.01 above analysts’ consensus estimates.
Here are some of the notable numbers Tilray (TLRY) Q4 CY2024 Highlights:
- $211 million in actual revenue versus the analyst estimates of $216.3 million (8.9% year-on-year growth, a 2.5% miss)
- An adjusted EPS: $0 vs analyst estimates of -$0.01 ($0.01 beat)
- Adjusted EBITDA: $9.02 million vs analyst estimates of $12.3 million (4.3% margin, a 26.7% miss)
- Management’s revenue guidance for the upcoming financial year 2025 is $975 million at the midpoint, beating analyst estimates by 8.2% and implying 17.6% growth (vs 19% in FY2024)
- Operating Margin: -20%, up from -21.6% in the same quarter last year
- Free Cash Flow was -$46.19 million compared to -$36.25 million in the same quarter last year
- Market Capitalization: $1.24 billion
For cannabis companies, 2025 may become “the year of beverages.” While Tilray’s earnings report showed flat revenue for cannabis, it did highlight a 36% growth in alcohol revenue. THC beverages, particularly those that are hemp-derived, have been rapidly gaining traction in experiential venues. Agri-Fi recently announced an exclusive deal to supply Salt Shed in Chicago, and it is anticipated that this trend might continue everywhere that alcohol is sold.
In the other news headlines, on Tuesday, a Florida appeals court said a drug-sniffing dog alert is insufficient reason to justify police searching a car. The reason is because the dog could not differentiate between medical marijuana and illegal pot or hemp products. And Doordash, the delivery company, is now expanding their offerings to providing hemp-derived THC and CBD products for on-demand delivery in some states.
We’ll discuss a common trend happening in the cannabis industry right now, and what this means in the short term for the industry.
