California Cannabis Co. Blüm Reports 36% YoY Drop In 2023 Revenue, Narrows Net Loss By 93%
Portfolio Pulse from Jelena Martinovic
Blüm Holdings Inc. (OTCQB:BLMH) reported a 36% decrease in 2023 revenue to $33.2 million, attributing the drop to a strategic slowdown in its distribution segment. Despite this, the company narrowed its net loss by 93% to $13.8 million from the previous year and increased its gross margin from 35% to 53%. The company also exited an unprofitable cultivation facility and became the parent company of Unrivaled Brands, Inc. Shares fell 12.36% to $0.78 after the announcement.
April 16, 2024 | 12:58 pm
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Blüm Holdings Inc. reported a significant 36% drop in 2023 revenue but managed to narrow its net loss by 93% and increase its gross margin significantly. The company's strategic adjustments and the acquisition of Unrivaled Brands, Inc. indicate a shift towards profitability. However, the stock price fell 12.36% to $0.78 after the announcement.
The significant revenue drop and the subsequent decrease in stock price post-announcement suggest a negative short-term impact. However, the substantial reduction in net loss and increase in gross margin could indicate a positive long-term trajectory, but the immediate market reaction was decidedly negative.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100