For the fiscal first quarter ended June 30, the Smiths Falls, Ontario, company posted a net loss of C$108.5 million (US$81.1 million), or C$0.30 a share. The per-share figure beat the estimate of a C$0.43 loss in a survey of analysts by FactSet.
First-quarter revenue was C$110.4 million (US$82.5 million), a 22% year over year increase. Analysts were expecting revenue of C$98.6 million.
The company is "seeing market-share improvement, notably achieving number one market share in cannabis-infused beverages in the Canadian market," Chief Executive David Klein said in a statement.
Canopy Growth shares were up 8.1% to $17.98 at last check.
The company cut its headcount by more than 18% this year as part of a restructuring plan.
Canopy Growth reported a 23% decline in non-production-related expenses, driven by reductions in its sales and marketing costs. Those savings were offset by higher administrative and R&D costs.
The company's gross margins of 6% came in below its own expectations, Canopy Growth Chief Financial Officer Mike Lee said the company can get back to more profitable margins.
"We've already proven we can deliver 40%-plus gross margin and are confident that we can return to that level as we work toward higher capacity utilization across our facilities as demand for our cannabis products continues to grow," Lee said.
Analysts Vivien Azer and Steven Schneiderman at Cowen raised the company's price target to C$30 from C$27 following the release, with strength in the company's beverages segment helping drive the optimism.
"As economies began to reopen [Canopy] has seen a steady recovery in consumer demand over the course of fiscal first-quarter 2021, which has continued into the fiscal second quarter," they wrote.
Cowen maintained its outperform rating on the stock.