Analysts at Cowen maintained an outperform rating with a $23 price target. Analyst Viven Azer says that the market recovery has been slower than hoped but the cost savings are "coming in slightly ahead of plan."
For the quarter ended Aug. 31 the Leamington, Ontario, company reported a net loss of US$34.6 million, or 8 cents a share, narrowed from the loss of $21.7 million, or 9 cents a share, in the year-earlier quarter.
Shares outstanding moved up 86% to 449.4 million.
Revenue jumped 43% year over year to $168 million from $117.5 million.
Analysts were expecting the company to report a net loss of 6 cents a share on revenue of $172.6 million, according to a FactSet survey.
Tilray is "maximizing near-term profitability" through leadership in its higher-margin international medical markets and in Canada "amid the paradigm shift towards global cannabis legalization," Chief Executive Irwin Simon said in a statement.
The company also says incremental growth in its SweetWater and Manitoba Harvest products in the U.S. are helping it toward profitability.
The company says it is on its way to capitalizing on what it estimates is a $200 billion global cannabis market opportunity.
Tilray is positioned "to succeed due to our global consumer-packaged goods expertise and scale," according to Simon.
The company maintained its top market share in Canada and it reported being the top medical cannabis company in Germany.
Shares of Tilray ended the day up 23 cents, or 2.1% at $11.02. The stock touched a 52-week high $67 in mid-February.
In total, Simon has received nearly $30 million in total compensation, almost half of which was paid in cash.
The company said that Simon's salary "may be increased but not decreased" as part of an annual performance review by the company's compensation committee.