GrowGeneration (NASDAQ:GRWG) moves up 12.13% in post-market action, after the company released record revenue of $55.01M (+152.6%Y/Y) in Q3, beating consensus by $7.63M.
Same-store sales of $33.4M (+73% Y/Y); Commercial sales $13M (+188% Y/Y) and Online sales up 112%.
Adj. EBITDA of $6.6M (+230% Y/Y).
"Our steadfast focus on rapid, strategic growth in key markets, both organically and through acquisitions, has resulted in our eleventh consecutive quarter of record revenues and EBITDA," says co-founder and CEO Darren Lampert.
Gross margin at 26.5% vs. 29.9% a year ago; the decrease is reportedly attributable to a larger percentage of the company's revenue from its expanding commercial and e-commerce business segments.
GAAP net income of $3.3M or $0.07 per share, misses by $0.01 per share.
The company ended the quarter with $55.3M in cash as of Sept. 30, 2020.
Recently, GrowGeneration announced a deal for 3rd largest chain of hydroponic garden centers.
"The results of the recent elections, combined with our proven ability to scale while reducing operational costs, will allow us to grow our revenue and expand our bottom line into the following quarters. We have raised our guidance accordingly," adds Lampert.
Raised FY20 Guidance: Revenue guidance increased to range $185-$190M from previous $170-$175M, vs. the consensus of $174.47M; Adj. EBITDA to range $19M-$20M; GAAP net income $9M-$11M.
FY 2021 Guidance: Revenue updated to $280-$300M, compared to consensus of $258.9M; Adj. EBITDA guidance increased to $34-$36M from previous $26-$28M.
"GrowGeneration: A Growth Play For Cannabis Fans" writes Daniel Jones on Seeking Alpha.
Previously: GrowGeneration gains 10% after lifting guidance (Nov. 11)