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But on the bottom line, the CBD products maker lost $18.8 million.
Charlotte’s Web (OTC:CWBHF) released its fourth-quarter results on Tuesday, reporting revenue of $22.8 million. That was up 6% year over year, but down 9% sequentially from Q3, when the cannabidiol products specialist posted sales of $25.1 million. It also reported a Q4 net loss of $18.8 million compared with a profit of $3.2 million in Q4 2018.
For 2019, sales totaled $94.6 million, up 36% from 2018’s total of $69.5 million. On the bottom line, Charlotte’s Web total loss for the year was $15.6 million, compared with a profit of $11.8 million in 2018.
The company credits its direct-to-consumer (DTC) segment as a key driver of its top-line growth. Sales in that segment were up 14% year over year in Q4 and made up 65% of revenue. For the full year, DTC accounted for 57% of total revenue. The company noted that it made a “significant upgrade” to its platform, which has led to a higher conversion rate.
Image source: Getty Images.
In its earnings release, CEO Deanie Elsner said that the company anticipates its sales will grow by 10% and 20% during 2020, even after factoring in the anticipated impact of COVID-19.
On Monday, Charlotte’s Web announced it would be acquiring Abacus Health to both extend its reach in the U.S. and also to diversify its product line. Following the acquisition, Charlotte’s Web will have a presence in over 15,000 retail locations.
At midday Tuesday, the cannabis stock was up by more than 22%, a significantly better showing than the Horizons Marijuana Life Sciences Index ETF, which was up by almost 10%.
David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Charlottes Web Holdings. The Motley Fool recommends Charlotte’s Web. The Motley Fool has a disclosure policy.