There's one number that stands out the most for Aurora Cannabis (NYSE:ACB) over the last 12 months -- 92%. That's how much Aurora's shares have plunged during the period. The marijuana version of Murphy's law has struck the Canadian cannabis producer at every turn.
But Aurora reported some much more encouraging numbers when it announced its fiscal 2020 third-quarter results after the market closed on Thursday. Shares even soared close to 17% in after-hours trading. Here are three positive surprises in the company's Q3 update -- and whether or not Aurora is really now ready to rebound.
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1. Much higher revenue than expected
The average analysts' estimate was for Aurora to report revenue in the third quarter of 66.7 million Canadian dollars. Aurora's actual net revenue in Q3 totaled CA$78.4 million, excluding provisions of CA$2.9 million, easily blowing past expectations. This result also reflected an 18% jump over the prior quarter.
Aurora delivered growth on all fronts. Its consumer cannabis revenue jumped 24% from the prior quarter to CA$41.5 million (excluding provisions). Canadian medical cannabis net revenue rose 6% quarter over quarter to CA$27 million. International medical cannabis sales skyrocketed 125% to CA$4 million.
The company's launch of its Daily Special value brand in February, along with sales of cannabis derivative products in the Cannabis 2.0 market, were the primary drivers of Aurora's consumer revenue growth. The huge jump in international revenue stemmed from Aurora's resumption of operations in Germany following its temporary halt in the country due to a permitting issue.
2. Significantly lower cash burn
An even more important accomplishment for Aurora was that it significantly reduced its cash burn. The company used CA$154.5 million in its fiscal third quarter, down from nearly CA$273 million in the previous quarter.
Aurora's executive chairman and interim CEO Michael Singer has led the company to make some drastic cuts to spending. In February, the cannabis producer reduced the size of its workforce and slashed capital spending. Those actions made a difference in Q3.
There was one area where spending was higher in the third quarter than in the previous quarter, though. Aurora's interest expense nearly tripled to CA$15.9 million. The company added CA$22 million in debt during the quarter. Its total debt from borrowing now stands at over CA$246 million.