Earlier today, Aurora Cannabis (ACB) provided an update on its fourth quarter of fiscal 2019. Its guidance was better than expected, which resulted in its stock rising as much as 10% in the early morning trading session.

What was the update?

Aurora Cannabis expects its net revenue to come in between 100 million and 107 million Canadian dollars, a significant rise from the previous quarter. To put this estimate in perspective, it would mark a revenue rise of 53%–64% sequentially. In 2019, the company expects its revenue to be between 249 million and 256 million Canadian dollars.

Interestingly, the company also provided guidance on its available product for sale. It expects its available product to be at the upper end of 25,000–30,000 kilograms. The company raised this from its previous guidance of 25,000 kilograms.

While this kind of growth isn’t uncommon for cannabis companies, it’s certainly a strong indication that the cannabis industry is alive and kicking.

Aphria confirmed this belief in its recent earnings results with better-than-expected revenue and net profit figures. Read more in Aphria Stock Rises on Earnings Beat.

What about EBITDA?

One of the issues we’ve been seeing with cannabis companies is a negative EBITDA trend. Canopy Growth and Tilray are expected to report negative EBITDA. EBITDA is the core measure of a company’s operating performance. A negative figure shows that a company’s costs from core operations are exceeding its income.

In its guidance update, Aurora Cannabis stated that it was tracking toward positive EBITDA. It expects to see positive EBITDA sooner or later. However, the timing of its turning profitable is going to be key to driving its stock price higher. OrganiGram, which also reported its earnings in July, reported positive EBITDA. Read OrganiGram’s Third-Quarter Earnings for more information.

International markets

The company also discussed its efforts to grow in international markets, especially through its medical cannabis segment. Right now, international markets are only interested in medical cannabis.

The cannabis legalization topic is heating up in the US. Many 2020 presidential candidates are promising cannabis reform. Read Joe Biden Wants to Reform Cannabis Laws to learn more.

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