Why 2020 is the Year for Cannabis E-Commerce Stocks - Seite 2

Namaste Technologies has also seen a positive uptick in its revenue the last two quarters. In Q1 2020, the company brought in C$5.3 million, marking its highest quarterly revenue in two years. Then in Q2, Namaste reported record revenue of C$6.9 million, a 73% increase over the same period last year and 31% more than Q1. One significant contribution to Namaste's growing revenue is the growth of its B2B distribution channels and its Cannabis 2.0 product launches.

Another company moving into the cannabis e-commerce space is Thoughtful Brands Inc (CSE:TBI) (OTCQB:PEMTF), a natural health products and e-commerce technology company. The company gained a slice of the market last week with the launch of Ecommerce Tech LLC, which will utilize a software platform that has facilitated over C$350 million in consumer transactions. Thoughtful Brands also recently expanded its portfolio of CBD and nutraceutical products through the acquisition of Golden Path LLC and Wild Mariposa.

Demand for Cannabis Continues to Grow

Although online cannabis sales were happening pre-pandemic, lockdowns and stay-at-home orders have sent more consumers online to purchase their pot and the trend is expected to continue. Several provinces have changed the laws surrounding cannabis e-commerce over the last few months to cater to the new norm, and many appear to be working to make that permanent.

As demand flourishes during the health crisis, long-suffering publicly-traded cannabis companies like Aphria Inc., Canopy Growth Corp., and Aurora Cannabis Inc are finally seeing positive sales growth.

In July 2020, Aphria Inc. (TSX:APHA) (NYSE:APHA) reported a 27% increase in its gross revenue from adult-use cannabis to C$56.7 million, marking its fifth consecutive quarter of growth. The company saw a net revenue of C$152.2 million in fiscal Q4, an 18% increase from the previous quarter. Aphria also ended the quarter with $497.2 million in cash and cash equivalents.

Cannabis industry giant Canopy Growth Corp. (TSX:WEED) (NYSE:CGC) also increased its revenue by 22% in the last quarter and beat earning estimates. When the pandemic hit, the company made the decision to temporarily shutter its 23 storefronts in Canada and shift its focus from retail to e-commerce. Canopy also just expanded its online offerings with the launch of its new US e-commerce website ShopCanopy.com, which sells a variety of CBD products.