Business
Greenlane Reports Q1 2022 Revenue of $46.5 Million, Up 37% Year-over-Year
Company on Track to Achieve Positive Adjusted EBITDA by Q3 2022BOCA RATON, FL / ACCESSWIRE / May 17, 2022 / Greenlane Holdings, Inc. ("Greenlane" or "the
About this update from Greenlane Holdings, Inc.
[{"type":"text","content":"Company on Track to Achieve Positive Adjusted EBITDA by Q3 2022BOCA RATON, FL / ACCESSWIRE / May 17, 2022 / Greenlane Holdings, Inc. (\"Greenlane\" or \"the Company\") (NASDAQ:GNLN), one of the largest global sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products, today reported financial results for the first quarter ended March 31, 2022 (\"Q1 2022\").Recent HighlightsTotal revenue for Q1 2022 increased 37% to $46.5 million, compared to $34.0 million for Q1 2021.Strengthened leadership diversity and industry expertise with the appointments of Darsh Dahya as Chief Accounting Officer and Renah Persofsky as Board DirectorEntered agreement with Universal Distribution to distribute Greenlane Brands in Latin AmericaCompleted a reduction in force in March 2022, which is expected to result in approximately $8.0 million in annualized cash compensation cost savingsManagement Commentary\"Building on a record and transformational 2021, we made meaningful progress executing on our strategic 2022 plan in Q1 2022, from reducing our corporate headcount to focusing more on our higher-margin Greenlane Brands,\" said Nick Kovacevich, CEO of Greenlane. \"Total revenue increased 37% to $46.5 million, driven primarily by the KushCo merger. If you exclude KushCo's post-merger sales, revenue declined 47% year-over-year to $18.1 million, driven in large part by our strategic shift away from non-core third-party brands, sales of which decreased 49% from the same period in 2021. As part of our strategy to focus more on our higher-margin, proprietary Greenlane Brands, we expect a decline in total revenue from discontinuing some of these third-party brand relationships, but we believe the overall quality and margins of the revenue that we will generate going forward will be far more favorable and sustainable.\"Sales of our Greenlane Brands was down 34% year-over-year to $6.0 million, largely due to our ERP system implementation, which caused interruptions in our ability to accept and fulfill customer orders. Although we expect to fully transition to this new ERP by the end of 2022, these interruptions materially impacted revenue for the first quarter, with some orders slipping into the second quarter. Growing our proprietary brands remains a key focus of ours, as it helps expand our strategic moat, margins, ...