Charlotte's Web (CWBHF -12.27%) 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.
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%.