It’s time for your Daily Hit of cannabis financial news for September 23, 2020.
On The Site
Aurora Cannabis Inc. (NYSE: ACB) delivered its official results for the fourth quarter of fiscal 2020 following up from a recent preannouncement of unaudited numbers. The company reviewed the drop in quarterly revenue, but investors were more disappointed that the company suggested revenues could continue to decline. The stock was falling by over 16% in early trading to sell near $6.
A couple of weeks ago Aurora said its net revenue was expected to be in the range of $70 million and $72 million, versus $75.5 million in the third quarter. The company said that cannabis net revenue is expected to be between $66 million and $68 million, a sequential drop from the third quarter net revenue of $69.6 million. The actual number came in at $72.1 million, a sequential drop of 5%. Cannabis net revenue was $67.5 million in Q4 2020, a 3% decrease from the prior quarter.
The West Coast wildfires may finally be slackening a bit thanks to kinder winds, merciful rain, and the heroic efforts of firefighters from Canada to Mexico, but the fight is far from over for cannabis growers whose crops went up in smoke and cannabis companies who will be struggling to stay afloat due to the diminished supply. The one-two punch of Covid-19 and the historic fires that ravaged (and in some cases are still ravaging) huge swaths of the western states may prove to be more than some businesses can withstand despite some industry leaders stepping up to lend a hand.
In Other News
Akerna (Nasdaq: KERN) announced financial results for its fourth quarter and year ended June 30, 2020. The company delivered Software revenue of $2.8 million, an increase of 36% year-over-year. Software revenue represented 94% of total revenue. However, the total revenue of $3 million dropped by 17% year-over-year, due to COVID-related delays in consulting revenue during the fiscal fourth quarter. The company also reported a GAAP loss from operations of $6.2 million versus last year’s GAAP loss from operations of $5.9 million in the fourth quarter of fiscal 2019.
For the full-year fiscal 2020 results, software revenue was $10.0 million, an increase of 21% year-over-year. Total revenue was $ 12.6 million, an increase of 16% year-over-year. Still, the GAAP loss from operations was $17.3 million versus a GAAP loss from operations of $12.5 million during fiscal 2019.
“We saw continued execution in the fourth quarter and made meaningful progress on our key initiatives focused on building scale and developing our software ecosystem. Despite COVID-related delays in consulting revenue that has since recovered, software revenue increased 36% in the quarter,” said Jessica Billingsley, CEO of Akerna. “We are heading into a busy election season that is expected to see 12 state ballot measures related to cannabis legalization for either medical or adult-use. Our scaled ecosystem is uniquely positioned to capture those opportunities, with the most robust cannabis technology suite available.”