Aurora Cannabis (NASDAQOTH:ACBFF) did it again. In February, the Canadian marijuana grower posted fantastic fiscal second-quarter results. On Tuesday, Aurora announced its Q3 results. And the company once again hit the ball out of the park, with CEO Terry Booth pointing to Aurora's "exceptional performance across all functions." 

While the company's Q3 update was chock-full of numbers, there were three things you really need to know about Aurora's blow-out quarter.

Marijuana growing in a greenhouse

Image source: Getty Images.

1. Sales are more diversified than ever

Aurora Cannabis reported total Q3 revenue of 16.1 million Canadian dollars. That was more than triple the amount made in the prior-year period and jumped nearly 38% over fiscal Q2 revenue. What's especially interesting is how Aurora is making its money -- sales are more diversified than ever.

Dried cannabis sales in the Canadian medical marijuana market still generate the biggest chunk of Aurora's revenue. The company sold CA$6.3 million of dried cannabis in Canada during the third quarter, up 45.4% year over year. However, cannabis oils are a much bigger source of revenue for Aurora now -- and are more profitable than dried cannabis. The company didn't have any cannabis-oil sales in the prior-year period, but posted sales of CA$2.2 million in Q3. That reflected a 44.4% jump from the second quarter.

Aurora also raked in a significant amount of cash that didn't stem from marijuana sales. The company reported CA$2.3 million in services and other revenue, up 175.1% year over year and 17.8% sequentially. In addition, Aurora, for the first time, made money from design and construction consulting, recording CA$3 million in revenue from these activities.

2. Why European medical marijuana sales slipped

Another key area for Aurora's year-over-year revenue growth deserves special attention. The company announced revenue of CA$2.3 million from dried cannabis sold in European medical marijuana markets, while Aurora had no international sales in the prior-year period. However, Q3 European sales reflected a 6.1% decline from the second quarter.

What happened? The important thing to know is that demand isn't falling off at all. Instead, the problem is that Aurora's Mountain facility is producing all it can. This capacity constraint held back Aurora's growth in the rapidly expanding German medical marijuana market.

This capacity limitation shouldn't be an issue for much longer. Two facilities -- Aurora Vie and Aurora Sky -- are coming online soon. The company also is constructing the new 1 million-square-foot Aurora Nordic facility in Denmark, along with retrofitting existing greenhouse space in Denmark. Production from these facilities should enable Aurora to better keep up with growing international demand for medical marijuana. 

3. Recent deals should begin paying off soon

Aurora Cannabis completed several acquisitions and strategic partnership deals in recent months that should begin to pay off for the company in the near future. The biggest of these deals was the buyout of CanniMed Therapeutics. Aurora's Q3 revenue included only 16 days of CanniMed sales, so the contribution to the company's growth wasn't much. That will change when Aurora reports its Q4 results.

Another deal that will also provide additional capacity was Aurora's strategic investment in The Green Organic Dutchman. Aurora owns a little under 18% of the company, which recently conducted an initial public offering (IPO) on the Toronto Stock Exchange. The agreement between the two companies gives Aurora the right to purchase around 23,000 kilograms per year of organic cannabis. With the anticipated legalization of recreational marijuana in Canada later this year, this added capacity will probably be needed.

Speaking of the recreational marijuana market, Aurora also completed a strategic investment in Liquor Stores NA, a leading liquor retail chain in Western Canada. Liquor Stores is converting some of its retail locations to sell recreational marijuana supplied by Aurora and is also opening new stores.

What's next?

The Canadian medical marijuana market continues to grow at a fast pace. International opportunities are expanding even more rapidly. And the big recreational market in Aurora's home country should open up within a few months. There's definitely a lot of activity in store for Aurora Cannabis this year.

One possible next step for the company is another acquisition. It's in talks with MedReleaf (NASDAQOTH:MEDFF) about a potential deal. A combination of the two marijuana growers would immediately catapult Aurora into the No. 1 spot as the largest marijuana stock in the world. Nothing has been finalized yet, though.

The big question for Aurora's continued growth comes down to supply and demand. If demand in Canada and international markets is as great as many project, the only obstacle to Aurora's momentum will be its ability to supply enough cannabis to meet that demand. On the other hand, some think that there could be a supply glut due to so many Canadian marijuana growers ramping up capacity.

My view is that, at least over the next few years, demand will exceed supply, although there could be some temporary imbalances in the other direction. If I'm right, Aurora Cannabis should have quite a few more blowout quarters on the way.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.