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Cannabis operator LEEF Brands, Inc. LEEF LEEEF announced its financial results for the three months ended Sept. 30, 2024, with revenue of $6.76 million, compared to $5.67 million for the same period last year.

The British Columbia-based company noted the increase in revenue was primarily due to market pricing changes and a focus on boosting margins and positive operating cash flow. Its customer base has increased with expansion into other verticals as well as the acquisition of The Leaf in January 2023.

“I’m proud of our team for driving positive momentum this quarter, making substantial progress on key initiatives, innovations and infrastructure upgrades, including the completion of Phase 1 construction at Salisbury Canyon Ranch,” stated CEO Micah Anderson. “This 1,900-acre ranch with a 187-acre cultivation permit, positions us for our first planting in spring 2025. Additionally, we’ve invested significantly in our extraction technology, increasing our overall capacity by 32%, which will enable larger product output in the coming year. We’re optimistic about the opportunities ahead and excited about the strong foundation we’re building for 2025.”

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Financial Highlights:

• Net loss amounted to $3.19 million, compared to a net loss of $1.99 million in the same period last year.
• Gross profit of $1.5 million, representing a gross margin of 22%, compared to gross profit of $1.86 million, representing a gross margin of 33% for the same period of 2023. The decrease in gross profit margin percentage the company attributed primarily to pricing compression within the market and an inventory impairment of approximately $425,000 recorded in September 2024.
• Adjusted EBITDA was a loss of $1.79 million, compared to adjusted EBITDA gain of $224,495 in the third quarter of 2023.
• Total operating expenses for the three months ended Sept. 30, 2024 were $3.87 million, a 32% increase from $2.93 million in the same period of 2023.
• The company had a cash balance and total assets of $2.16 million and $45.07 million, respectively, as of Sept. 30, 2024.

“We continue to focus on our long-term financial health and strategic growth, which includes the phase 1 completion of Salisbury Canyon Ranch, as well as innovating in how we manage assets and payment systems,” stated CFO Kevin Wilson. “This quarter, the company acquired Bitcoin cryptocurrency in a business-to-business transaction which marks the beginning of a larger strategy of integrating LEEF Brands into the Bitcoin Ecosystem. This is a milestone that reflects our commitment to forward-looking financial strategies. Despite the industry challenges, our focus remains on increasing efficiency and positioning LEEF for success as we move forward.”

LEEF Brands recently announced a 10-for-1 share consolidation of its common shares and a proposed private placement to raise up to CA$2.5 million ($1.8 million). Upon completion of the consolidation, LEEF will have approximately 162,762,651 common shares issued and outstanding, subject to rounding adjustments. The consolidation will take effect Nov. 18, 2024 with trading expected to begin on a consolidated basis on the Canadian Securities Exchange and OTCQB on Nov. 18th, 2024.

Price Action

LEEF Brands shares closed Tuesday’s market session 12% higher at $0.014 per share.

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CyberArk Software Ltd (NASDAQ: CYBR) reported fiscal third-quarter 2024 revenue growth of 26% year-on-year to $240.1 million, beating the analyst consensus estimate of $234.0 million. 

The information security company posted an adjusted EPS of $0.94, which beat the analyst consensus estimate of $0.46. The stock price gained after the print.

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Segments: Revenues from Subscriptions expanded 43% Y/Y to $175.6 million. Maintenance and professional services were $61.6 million vs. $64.3 million Y/Y.

Key Performance Indicators: Annual Recurring Revenue (ARR) increased 31% Y/Y to $926 million. The subscription portion of ARR was $735 million, implying a 46% year-over-year growth. 

The Maintenance portion of ARR was $191 million, compared to $200 million year over year. Recurring revenue grew 29% year over year to $224.2 million. 

CyberArk held $1.5 billion in cash and equivalents as of September 30, 2024.

CFO Transition: CFO Josh Siegel will step down on January 1, 2025 and transition into an advisory role after 13 years in the position, making way for Erica Smith, CyberArk’s Deputy CFO.

CyberArk CEO Matt Cohen highlighted the company’s strong performance, exceeding guidance across all key metrics. He credited their success to top-tier execution and leadership in identity security, driving significant growth in net new ARR, record revenue, and improved profitability.

Cohen also celebrated the recent acquisition of Venafi, finalized on October 1, as a strategic expansion of CyberArk’s platform. He stated that Venafi’s cloud-native solution strengthens their leadership in machine identity security, a rapidly growing and complex segment, with positive feedback from customers and partners validating the move.

Outlook: CyberArk expects a fiscal fourth-quarter revenue of $297.0 million-$303.0 million, versus the consensus of $234.04 million.

It projected an adjusted EPS of $0.65-$0.75 versus the consensus of $0.46.

CyberArk raised the fiscal 2024 revenue outlook to $983.0 million-$989.0 million (prior $932.0 million-$942.0 million) versus the consensus of $941.49 million. 

CyberArk expects an adjusted EPS outlook of $2.85-$2.96 (prior $2.17–$2.36) versus the consensus of $2.31.

ARR as of December 31, 2024, will likely be $1.153 billion—$1.163 billion (prior $985 million—$995 million), up by 49%- 50%.

Last week, Jim Cramer advised viewers on CNBC’s “Mad Money Lightning Round” to buy CyberArk Software. He praised the company and said he has been a strong supporter for many years.

Cyberark Software stock surged over 39% year-to-date.

Price Action: CYBR stock is up 6.90% at $321.50 premarket at last check Wednesday.

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Photo by Igal Vaisman via Shutterstock

Skyworks Solutions Inc SWKS shares are trading lower premarket on Wednesday after it reported fourth-quarter results on Tuesday.

The company reported adjusted EPS of $1.55, which beat the analyst consensus estimate of $1.52. Quarterly sales of $1.025 million were in line with the analyst consensus estimate. 

The company declared its quarterly dividend of 70 cents per share, payable on December 24, to stockholders of record at the close of business on December 3.

The company generated an annual operating cash flow of $1.825 billion and free cash flow of $1.668 billion.

Liam K. Griffin, chairman, chief executive officer and president of Skyworks, said, “For the second year in a row, we generated over $1.6 billion of free cash flow and ended fiscal 2024 with a record 40% free cash flow margin. Looking ahead, we believe AI is poised to ignite a transformative smartphone upgrade cycle, propelling the demand for higher levels of RF complexity.”

Outlook: Skyworks Solutions projects first-quarter of 2025 revenue to be $1.05 billion – $1.08 billion ($1.096 billion estimate) with adjusted earnings per share of $1.57 at the mid-point of the revenue range, vs. the estimate of $1.72.

Kris Sennesael, senior vice president and chief financial officer of Skyworks, stated, “We expect our mobile business to be up mid-single digits sequentially, driven by seasonal product ramps. In broad markets, despite excess inventory in select segments, we anticipate further modest sequential growth, and a return to year-over-year growth.”

Investors can gain exposure to the stock via Global X Internet of Things ETF SNSR and First Trust Nasdaq Semiconductor ETF FTXL.

Price Action: SWKS shares are down 6.65% at $81.25 premarket at the last check Wednesday.

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