Tilray's stock fell after the Canadian cannabis company reported a wider-than-expected loss for the second quarter after the markets closed Tuesday.
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
Shares of the Canadian pot company slid by more than 7% in after-hours trading.
On an unadjusted basis, Tilray reported a second-quarter net loss of $35.1 million, or 36 cents per share, wider than its loss during the same quarter last year of $12.8 million, or 17 cents per share.
After excluding for acquisition-related expenses and an inventory accounting charge, Tilray lost 32 cents per share, a steeper loss than the 25 cents per share analysts surveyed by Refinitiv expected.
Sales rose 371% to $45.9 million, beating expectations of $41.1 million. Tilray attributed the increase to its acquisition of hemp food producer Manitoba Harvest, Canada legalizing recreational marijuana last year and growth in international markets, especially in Europe.
Tilray's total kilogram equivalents sold reached 5,588 kilograms, tripling the 1,514 kilograms in the year-ago quarter. Investing in cultivation centers in Canada and Portugal increased Tilray's costs and ate into the company's gross margin.
"The way we look at it is it's early days, and we're continuing to invest to build long-term value for our shareholders," Tilray CEO Brendan Kennedy said on CNBC's "Closing Bell" on Tuesday.
"If we looked at individual countries like Canada, for instance, we could be profitable there within two quarters," he added. "But when we look at one of the larger markets such as Europe, it's still an opportune time to invest."
Tilray will introduce its first CBD products with Authentic Brands in the U.S. in the second half of the year, Kennedy told analysts Tuesday on a conference call. In January, Tilray agreed to supply Authentic Brands Group with CBD to use in products from brands like Nine West, Prince Sports and Juicy Couture.
Tilray will "be ready" to introduce cannabis drinks in Canada at the end of the year when regulations allow, he said. Tilray entered a partnership with Anheuser-Busch InBev, the world's largest brewer, late last year to study cannabis-based beverages.
Kennedy said regardless of who wins the U.S. presidential election next year, he expects the U.S. to legalize marijuana. The company bought Manitoba Harvest and, more recently, Smith & Sinclair to compete in the rapidly growing U.S. CBD market.
"I think that the tide has really turned and it doesn't really matter who's president in terms of cannabis legalization," he said. "It's really one of the few issues that has bipartisan support in Washington, D.C."