GNLN - Earnings call transcript Q2 2019 | Greenlane Holdings, Inc.

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to today's conference call to discuss Greenlane Holdings' Second Quarter Fiscal 2019 Financial Results. [Operator Instructions] Hosting today's conference will be Scott Van Winkle with ICR.

As a reminder, today's conference is being recorded.

I would now like to turn the conference over to Mr. Winkle. Van sir. ahead, go Please

Scott Van Winkle

you. Good call XXXX. Greenlane conference welcome afternoon discuss results and to quarter to for Holdings' Thank the second

On and and Greenlane LoCascio, the by Adam Officer. from remarks Chief joined Chief call Aaron Strategy Marketing our are Officer, We're with also Chief Kadey, Rudin, Ethan prepared Officer; Schoenfeld, Chief Sasha Financial Executive today Officer.

afternoon Time. everyone earnings release out this the have Eastern which PM to at access should X:XX By now approximately went

available it's is on Investor you've a not XX release, If at the call the of days. section This replay on website approximately being the Greenlane's website available received Relations and for Company's will gnln.com. be webcast

make questions. and, therefore, everyone not Greenlane's to placed Before we performance contain like These guarantee begin, in future should reliance prepared that upon we'd response to forward-looking them. statements additional statements management do your forward-looking be not remind may undue remarks statements and

and statements XXXX. are risks IPO on of including current dated and in expectations These Company's based identified XX, the April included Risk involve prospectus uncertainties, Greenlane's Factors inherent those in management the

of Please net note more EBITDA. greater and to operations, particularly in today's operating from non-GAAP that Greenlane believes underlying discuss facilitate in results these Management reconciliation loss can financial measures the period these period. measures adjusted ongoing its complete measures including earnings included analysis management results of non-GAAP a will financial during and Greenlane's adjusted release. transparency call a when comparing has

assumes to any may in live as or the contains today's call that date sensitive only obligation be of time this update Greenlane August XXXX. release also broadcast, of statements made call. information speaks that forward-looking XX, This no

to to CEO, the turn LoCascio. the like Company's over I’d Now Aaron call

Aaron LoCascio

good and Thanks, afternoon, Scott, everyone.

in your activities, turn and will I our call results for we up development financial call quarter to Ethan and questions. review highlights the to detail. will then open more After the over our second business sales that review briefly

second our and quarter revenue experienced record each million hemp-derived partnership categories pipeline of a liquid an expand segment. revenue and had representing generating year-over-year have quarter during of growth $XX each of customer We portfolio across in brands at nicotine and We to CBD, Greenlane, the cannabis, growth aggressive leading continue additional the XX% and network. in

both in drove Gains the particularly and category. the the growth, U.S. vaporizer Canada in

and We international continuing to Europe also of key in sales in invest the Asia advanced talent team. adding development our expansion while

of global product, attracted top choice Our we employer tobacco out and have hired is well goal retail, and cannabis, organization. of consumer leading from being as the proving talent

continue a the create, We for search hire across will to and world-class the brands nurture cannabis globe. to grow, workforce best and

selection strategic growth. acquisition reviewing potential globally opportunity We well targets to disciplined as with process. as in been opportunities also our we remain the accelerate evaluating, are We've our

significant our to decided go have We and through acquisitions key confidence public. M&A grow continue pipeline remains reason a we to to in strategic

the most In ourselves the we in rapidly is a exclusive category distribution portfolio form as through agreements. respected category, Americans Gallup sector seven and brands that a captain, in of one week CBD, of survey CBD some are found growing using building positioning the last

continues existing CBD of products. pace to with with Over signed build Cookies, the portfolio the and that our that new products. deals exclusive partnerships be exclusive to Canada's with brand to and Select, we past partner CBD offerings, CBD are of Bloom of several new relationships distribution Pax months, relationships agreements addition these Nutritionals, global in including to expand hemp-derived Farms, choice Era Greenlane particular Mary's illustrate seek brands for SLANG. The These

for agreements have more AVD cannabis with PRO. cultivators strider particular better vaporizer Hanu capitalize system liquid us trends. processors, and that vaporization to effort consumption distribution are signed allow agreements These companies an vaporization offerings on and In closed with licensed we expand to Labs our focused for on

cultivators pre-rolled launched our Futurola distribution helps products us license with relationship also expand of also processors. and which We

their our along & packaging continued premium Growth Hybrid. extended including Storz of we These an distribution. Pollen Volcano agreement brand capture Finally, with opportunity of our Canopy our next-generation with allows of the their growth in for of distribution additions, to to child vaporizers increasing Bickel's share channels exclusive resistant Gear iconic

nearly led very JUUL in increased sales sales demand U.S. were JUUL We XX%. the continued quarter Canada in robust strong of strong this by growth incredibly products net and

that drivers Additional the of began promotions, month were June program growth. of in the including a among large

products offset We also of JUUL Strong supported concentration impact sales product than overall flavored promotion JUUL’s a of growth more quarter. suspension of lower the product of the sales the has during nicotine reflects regulatory last the in brand ongoing media for our year, environment. at attention to the growth end JUUL and demand of despite and U.S. to consumer recent retailers voluntary loyalties the

interest Regulatory of investors. topic around scrutiny has a e-cigarettes for been

Specifically, significant attention, recent e-cigarette established points. me few a news of the has ban sales gained City let so Francisco of a on San note has temporary

are of of evidence smokers we transitioning goal. this achieving such raising support First, and legislation has off JUUL objective in purchase the of toward responsible cigarettes of age of the minimum full as combustible adult success with strong demonstrated

as are we also shops. to vape, shops, retail products to Second, limit age-gated support of location in sales efforts and any of flavored such smoke

to FDA. draft effect Commissioner while guided this the Gottlieb FDA Former at issued

X.X% expect of exposure would representing we approximately is from sale impact our change our minimal and year-to-date to Francisco. Third, San in insignificant any San Francisco enduring

house spend of to high in from sales growth headcount. and net comprising ago. year which Our XXXX, invest up second we to of total deliver quarter the XX% margin a Greenlane In grew X.X% brand with opportunities house our incremental heavily continue on X.X% marketing aim our brand we

acquire. have are them like or in-house In brands margin to our either house delivering average also overall accretive XX% we margins to our addition and quarter, the house plans gross further revenue Vibes on higher-margin and we boosting house diversifying to improve stream, through brands nearly brands second that gross develop new in

we Vibes rolling into of shipping began quarter portfolio. have this our available demand a expanding expect build as and strong progresses. the papers we to continue to-date, year our cultivated focus strong While We house inventory on brands foundation to

in sold everything of and with we seeing get Vibes brand out quickly demand. the have We strong anything

We're Groove, our in also growth supply. Aerospaced are and which exceeding both seeing of

have our now broadening supply sales of efforts and Marley good are our built Natural and line expanding availability. We

As last we month, Pollen announced Bags. child-resistant Gear its awarded on was its patent SnapTech second

leading and the value As the portfolio the of be packaging underestimated. often imitated brand, cannot patent

signed located Fred an for front, door California new On store Malibu, retailer, the in LOI Segal. higher-standards we the next to landmark recently a

to XX.X% the of quarter. VapeWorld.com customers increased XXX,XXX, approximately the single over visit platform. and completed VaporNation XXXX, Turning to the X,XXX In increased visitors during e-commerce, consolidation the e-commerce to approximately net and over X% we for quarter Vapor.com July enabling by all to are XXXX. up a XX% Unique sales of to second of transactions

a developing advertising growth. to e-commerce are We further strategy build focused our and drive awareness to traffic

second such look legalization of in Texas in as and brands markets across delivered we as the to the the and we hemp-derived passage quarter; of on. cannabis are liquid Favorable favorable in capitalize and recent well-positioned nicotine regulatory whole, growth to continue growth Illinois a and tailwinds to hemp-derived the drive examples categories. to or changes CBD, Ohio cannabis, Returning are the CBD legislation

than continue proprietary expand organic portfolio expand to retail world-class relationships to build growth, strong our and XX,XXX of drive of locations. and our We customer upon more brands, supplier our network

infrastructure support an supply a we In that nicotine believe will to cannabis, chain building long-term the industry. growth highly global create unrivaled and closing, efficient the CBD we're of

sales vapor.com efforts house We growing to expanding our highest with of developing margin on our a channels. in BXC on are our innovative aggressively brands portfolio new our our driving greater proprietary focused we of and towards focus brands brands and Along mix categories. are

Now the results. through you to call second I'll over quarter run turn financial Ethan to Ethan? the

Ethan Rudin

afternoon, and everyone. Aaron, you, Thank good

record increase reached year-over-year. company quarter representing a of sales XX% million net $XX Second a

drove As both U.S. strong multiple noted, increase. product Aaron growth and categories Canada the the and in

year net the of sales including include and from child-resistant product million e-cigarette of increases terms the In the from hemp-derived the period, new from prior CBD introduction product packaging million compared $X.X of lines, the products of products. to million sale $X.X of $XX.X sale increased categories,

XXXX promotional to category. strong to market quarter in share second period XX.X% XX.X% e-cigarette given the the and in the mix of sales in activity in Gross the margin expand changes year prior of was growth JUUL reflecting compared

context the year-over-year. second during mix the activity, e-cigarette promotional and gross benefits of margin provide over our Salaries, just the some sales excluding payroll the XX% on $X.X been quarter. impact tax million of products To increased and would have expenses

June the a $X.X As payroll the XX, compensation past to over of due domestic sales for year and million benefits to primarily marketing ended our expand to taxes expense and XX equity-based we and months is XX.X% percentage increase X.X% the employees net increased the efforts XXXX. continue of from year, three addition prior the as of sales, in sales

the We investments back support uptick in house will our and higher generate. and expect year increase packaging as growth expect brands, to ahead sales margin expenses in Greenlane to our we materialize marketing we marketing These salaries further of of supply see to the sales initiatives. of a e-commerce in the and half

XX.X% becoming General quarter expenses of compared sales in administrative year. million legal XXXX company. expenses prior incremental increased and to and net in General relatively to percent XXX,XXX company's as and and fees to the but consistent public related XX.X% approximately consulting expenses approximately $X.X transition at of the included administrative second the were a audit of a

XXX,XXX million company net of the Adjusted XXXX loss. impacted second XXXX for million public income million associated previously net mentioned second $X.X $X.X and loss $X.X Net to the of quarter Adjusted adjusted million this quarter year. expense, costs loss $X.X of net for compared the in with transitioning expenses was to by and $X.X loss of net in prior excludes a compensation of compares equity-based net income to was the million. of

in which corporate ended debt. purchased was second million second of XXXX loss the financing for of quarter $X.X of and XXXX of with We was cash $XX.X for EBITDA a of quarter for The XXXX. million our to a Adjusted comparable debt approximately the in XXXX. compared the $X.X period million headquarters gain $X.X reflects million of the

to and continued house the growth, margin XX% driving profile annual to everyone brands, margins driving XX% packaging margin this current of accretive business long-term standalone is we margin businesses the gross in plus. to that adjusted and of our e-commerce, margin financial growing average targets, combined these profile Reiterating mix. was I’d key investment supply our and continue net EBITDA plus approximately gross remind anticipate XX% our revenue

since Additionally, velocity a of expand and growth which well on product We're and as comment acquisition geographically bolt-on of the focusing targets. help targets and referred efforts our as public are acquisition transformational offerings, for both accelerated has that I efforts our Aaron to opportunities accelerate and evaluating becoming previously currently simply our many company there our that us expand acquisitions. diversify

multiple pursuing of M&A is pipeline opportunities. we are current in stages Our and robust various

than acquisition more as meet is for or success Now shareholder acquisitions confident that our exceed in our standards. strictest standards maintaining opportunities of crucial stewards our execute ever, we're future good ability for long-term capital, and on to

the turn I'll call that back operator. to With the

Operator

[Operator from Instructions] Cowen and is Please Our Vivien Azer first proceed. with question Company.

Vivien Azer

the brand at So the my expectations, new really higher of quarter was end and of solid I ahead street.

the Thanks. your curious to just relative what So [indiscernible] was expectations key it expectations, how quarter internal to ended factors? were and the up hear contributing

Aaron LoCascio

think above Vivien, deny for we really and accelerated don’t anybody in our thought. us June that that JUUL I outshined know, You activities promotional really, what really, expectations, fact the really dropped beyond the could matters

installed we’re the the in it to to the partnership with that the mean to growing know base, it and excited but revenue speaks to of the rather than of lot we’re a Admittedly, nonetheless, obviously I strength JUUL. strength nonetheless, pods, is related had the excited fact base the but installed really you batteries promotional shift the an of impact, and get was mix brand see

Vivien Azer

but and gross necessarily only sure. getting XX of That be your the makes questions, growth which businesses enumerated particular, plans margin XX%, reiterated the sorry perfect context is plus I to as in those sense, is that. underlying I up Ethan, are type over consumer on you stapled admirable broader of e-com XX%, your rate in though raise of your you appreciate of don’t commitment

margin e-commerce mix XX, when do like XX% growing how you drive margin drive do JUUL’s actually Like XX, you expansion? cannabis growing positive growing how

Ethan Rudin

significant some we So, very plan and We've indicated points levers as to to got Obviously, we’re prepared know, seeing One our have I new success we here make. would store the Vibes. commentary opening that gas. in shift. mix is with of few drive really say to step higher in on to very, pull early we standards that that you number

that story and truth a want our really portfolio; that is the so, some waiting with the be told of for to are we’re subject actually I of stay it the JUUL cycle right don't third-party and about other exciting how placed and really but to across new side away in. to innovation, methodical and everybody trade come from everybody new things the strategic like to their and pipeline a for translates more channels to have right, the we house, have it thinking from wants to compete partners doors, out dialed piece of in as really we’re of that versus compete want brands we're products in looks the approach new what and to taking

Vivien Azer

call. And my related. I last but monopolize don’t are I promise they two the are these mean to follow-ups, both

true just am called it little average? [indisernible] and is higher corporate one, obviously also you and so, And the called out margin Standards confused, your Gear than on bit you Standards, you’ve out Pollen are is number Higher I that Higher in asserting remarks a and the prepared

Ethan Rudin

both retail stores substantially as margins are corporate Standards, Higher brick-and-mortar as portfolio well Standards of our Higher than Yes, average. products our higher the

Vivien Azer

I last my then And question. promise

a was stores on You thank know of It guys of [ph] expand well the That’s reminds terms like pattern the received you. of question, in and me like kind that commented margins “new vast all like most you announcement on by my a you and opportunities” innovation hybrid, recent was the higher. – there that. can derived M&A market around [indiscernible] new your

Aaron LoCascio

Sure.

paid, it. drives products next to the been and of next Ethan the level little the expand Volcano that’s primary for So, of come it’s while our internally looking customer that so that to generation very the growth class with product pipeline our portfolio exciting get a in of next always before paid launch we represents products things has that new products the built, And since because is the the see certainly of of a innovation. exciting upon into one as is mentioned seen we've predominantly been Hybrid the we so to us are for and opportunity environment of distribution bought innovative

Operator

is question with from next Please Dley Our proceed. Derek Canaccord Genuity.

Derek Dley

more up just looking acquiring on that of brand? with assets it the more about even thinking you of on mean of around one last give about technology potentially acquiring the framework mean Is assets there looking acquisition I an globally how at following your Just or idea sort things Can for, some I that you're strategy? us distribution some just is acquisition. focus

Aaron LoCascio

expansion. build at look of one two continue our brands we lenses, to which lens an through acquisitions and distribution look the we've is margin we again expansion to other house So our horizontally is pipeline through expand more upon build. and really really different then that vertical is geographic where can already or fortification of And upon profile built notably acquisitions the

Derek Dley

update that brands, mean house can of on quarter? at of us on that give of during And house label where your brands, I your an penetration was you private the sort

Ethan Rudin

that think was I X of revenue, me let and a it's mentioned I just now me believe bear double we quarter, portfolio. X.X% for it with X.X% second, prior had check the the the - In of

Derek Dley

obviously great. as Okay, out good exceptional the example for so brands sell-through in partners on Standards out the relatively brands? with an forth. about of progression. how called That’s other some sold comment Vibes Can Gear label private still some having your with like you are early you on And brand but stage, distribution the so good sell-through seeing being other Higher being Pollen major you of and

Aaron LoCascio

we open the store. Yes, our new we Higher I see brand, up growth mean Standards a whenever

had we then a BXB see brand and having awareness to So, well retail, as helps. lift obviously general be within a as just portfolio, visibility company standalone more there's BXC obviously there also our and but so

really products about really, suite vaping Keith We’re excited smoking of in are accessories. and Haring’s that coming out

We’re about really excited Marley Natural.

of our We’re a them. brands so seeing excited across fairly all super about even growth house in keel,

Derek Dley

sales you up growing. And within obviously and difference I mentioned I high in or exceptionally do Canada of of then the the difference disclose us doing but well, were appreciate year-over-year what from one so was U.S. the is there? mean XX% still the last up the me Can was U.S. you during up sort magnitude the can JUUL give magnitude if you quarter. double-digits and

Ethan Rudin

breaking the split we not am - We’re out about was actually - is you you revenue unclear? it mix sorry about haven’t yet, talking I just that talking out are or it growth, the

Derek Dley

growth, The growth? sorry, the

Ethan Rudin

the was U.S. quarter-over-quarter So growth for JUUL XX%.

Derek Dley

how Canada? And about

Ethan Rudin

last Canada - in year. of I'm didn’t and we Canada in figure QX JUUL that sorry, have

Derek Dley

XX Sorry, much year-over-year the so quarter. on is Thank you were and perfect very solid that that congrats help. very

Operator

Please is question ROTH Scott next Our proceed. Fortune with Partners. Capital from

Scott Fortune

CBD want brand standpoint are we from Where different topical the out six to so you brands you do oil offerings in certain are regulations the or SKUs coming type and or you the I from have and offerings can for I expand seven believe our of you and then offerings strength the varying. call that what tincture whether or on seeing Yes, CBD And restocking now that see product such states can standpoint? front strength on. states

Aaron LoCascio

are CBD growth brands we in geographies strong all our States. in across the seeing So United

Some we well as vaporable products expected of are the top tinctures. these selling the as as

strong the for want topicals and it’s don't with away brands. take again quite provides for well for been about a our looking good this customers I us. are they platform that really as portfolio it’s doing Internally well merchandising that we've building Although a because really to from multiple

we evaluate others to as continue progress. we’ll So

Scott Fortune

five new And that with shops note kind distribution retail new are in smoke you years you partners of board on standpoint that discussions from seen on come vaping have XX,XXX that distribution. established

Aaron LoCascio

I the semblance some them. can best end placement Obviously products the mean distribution of doors we with to else figure look the in thinking drug these of but dominance a Yes, that sales is of we about have chosen that’s we’re for creative and thinking also we're trying discussions the what try of so about consumers box day at have trade, of our sorts channels over out XX,XXX everybody out thinking early food all terms of in mass. force in the

other products. And we could interesting of placing places be where our portfolio

try helping engaging that cannabis yeah their CBD So with and strategy we spread partners. we’re dialogue really everybody and enjoy out and their potential in

Scott Fortune

business the what same thing far or at as JUUL then other is on And profile on that as the CBD what’s it? margins of margin some may last higher profile the part

Aaron LoCascio

it We for have give this SKU diverse in given in misnomer assortment average me be to you an a would CBD a such diversity at the we’re juncture carrying. that product

Scott Fortune

thing Okay, and last okay?

Aaron LoCascio

comment it higher does profile products the to of But selling margin e-cigarette a a that the in have area. than were other lot

Scott Fortune

And expectations you three of on standards you the potential year? located signed year up stores estate higher for last retail two this or towards end of open signed end the the kind kind and up you’ve are of mentioned by real where to thing standards Malibu, want higher of we

Aaron LoCascio

really their center. wherever a you It's very have center higher lot know fortunate or Scott congregate. lifestyle a consumers also standards a problem that great store We and education aggregate a of in cannabis want folks

we're the best kind of place really for the brands. our showcase So estate agnostic we’re traffic best real and looking the foot best to just

Scott Fortune

potentially this the end Any of year? the number guidance on of by stores

Aaron LoCascio

I guided standalone plan No we've retail we’re different than trying conservatively. already to our relatively what think

Operator

Our is Please with proceed. Mike next from Capital Grondahl question Markets. Northland

Mike Grondahl

roughly penetrated that how those you retail With you XX,XXX? many locations that XX,XXX your how your touched are you're selling product of CBD into

Aaron LoCascio

I doors early Select of in us. we’re to very say with kind of mean a I and lot they obviously up have we given now picked that Mary's innings right

don't we to got when priced sure launch those we’ve been make And the We've correct. working that assortment new got we bomb. saturation it approached product we so but appropriately through

rates sales look doors, We at reorder look in look excitement quality we velocity. to for generate we

commenting will and And not on right doors is runway now so say the percentage there I really healthy penetration, of the us. number we're of but ahead

Mike Grondahl

in that a your retail. big sort looking with progressing vaporizer new And How is mass know sort the of you’ve of then opportunity? been at a box product I

Aaron LoCascio

box service to OCS. and retailers likes Canada big Shoppers Mart But in the Loblaw's we Drug of with continue

a the that looking retailers water States are different with We the mass in have United number you toe retailers a in of there mass is discussion interesting the will. tip to been in where if

those in we of products be So to how it look it more about those interesting and future. near in see forward talking perform places to kind will

Mike Grondahl

percent e-commerce And was or then number you didn't e-commerce talking gave a revenue catch about of lastly that the when you that started I growth number? was

Aaron LoCascio

growth. e-commerce was That

Mike Grondahl

It was can repeat or XX.X% you it?

Aaron LoCascio

XX.X.

Operator

next is question Thalmann. with Mattson Ladenburg from Our Glenn Please proceed.

Glenn Mattson

second should forward half JUUL there the you cadence remain kind quarter category, row So of not chance or the to that expect or whether can promotions? risk led speak curious do by promotions revenue this in you or same, maybe that outperformance any to they second that some is a is in further got promotion these the some of pulled of that

Aaron LoCascio

but JUUL been wouldn’t the has you even performer. that, promotions. been velocity have historically where very, that and strong very, frequency quarters in with consistent remind not of they expect and number I I -- very change, promotions pretty is to remain a JUUL

batteries the they're objective additional and make on promotion base the evidence to more JUUL onto stay. out ran and to having there's be products price shown traditional some combustion tremendous they elasticity they those customers increasing it we've from the bringing working platform is on installed the smokers switch platform are but sticky, with the more the Again that once adult well. primary there remarkably the certainly into And proved they

Glenn Mattson

San those on you initial or issues about kind one-off? the it. news Francisco haven't came beyond you’ve headlines of been San the much Can when talk seen think or on up, follow And the about there whether when not things similar cities regulatory seen those the front its or Francisco, any through other anything to I and -- on anything

Ethan Rudin

going and a these especially stance. may their as be FDA out take actually are if similar products, to municipalities evaluating the municipalities it's approach always ironing there's so individual that products, these of to to any So when ahead unclear additional

products. half way very, for of in out the figures these But They’re X.X% very total San the year, that municipalities. we in Francisco I first that of have you robust much sales of distribution can similar our individual a expect the you represented pipeline type very, remind of

under And in so also as the particular, is embrace our additional where Europe, that like really represents in expanding an vaporization alternative is strong that we mentioned growth Canada, not and for very robust in distribution opportunities, they FDA U.K. internationally, we've which showing smokers. adult the are

we additional So negative, expect similar we if expect a -- material do financial don't on any expect have we municipalities our impact statements. take any not any approach, to

Glenn Mattson

Thanks you're up and you Ethan ahead and for of of incrementally how that, sales think from this few margin in like benefit I the this, sequentially you do mentioned the dollar salary higher things next terms quarters? expense is the that, gain kind -- to running going guess over about we

Ethan Rudin

Yes.

not a going probably variance couple really any our be other initial to expectations. dollar there's giving guidance than million from We’re

Glenn Mattson

Do for stock expense for a what comp you have number a like expectation this is? year your

Ethan Rudin

for up it on close not expect on but be we’re terribly ramping to what from quarter. guidance that in higher would IPO how the side I and you've seen this are talent. and we fact to the now the Given dissimilar

Glenn Mattson

me. one last And for

you On for investment need acquisitions, you're thinking of just [indiscernible]… criteria like the acquisitions about the on on framework can in remind the return how about financial us

Ethan Rudin

have of public in accretion thinking growth thinking stewards status now, and capital doing our you need about obviously of to margins. metrics being be all that about Yes, both you'd given public know, and traditional company M&A, our company we're our shareholder we the the

for stages, importantly, but it be more to continent, our at to has grow any strategically really that to be per to hopefully future. and a we’re stuff new through margin ferreting share has so several the time we’re excited new on a right the get to make talk the accretive about sure jump-off earnings one portfolio be with us of to some also bring product it country want we accretion to of it look in near in to entirely and obviously platform an various Obviously, opportunities able and

Operator

Vivien Please and follow-up Azer Company. from have We [Operator proceed. Cowen Instructions] question now with a

Vivien Azer

You of have if it. strategic items just one CBD missed a and you then closed Number and more you. been percent question keeping like apologies what as for I one, I was Have sales?

Aaron LoCascio

have $X.X it growth of growth. meaningful of not. as new the of million that’s which CBD and is characterized We portion the actually a We products,

Vivien Azer

of So which was incremental $X.X million revenue, is CBD X.X?

Aaron LoCascio

A meaningful percentage, yes.

Vivien Azer

Meaningful, you. great. Thank perfect, okay. That’s

geographic be [indiscernible] Number couple in you come in does let’s remarks in are specifically like prepared highlighting Q&A well the Europe, up opportunities Europe? very so clear. has one, Second as as a times of

Aaron LoCascio

we’ve Yes in and next we’re closely very density established quarters the geographically. Europe our on staff future hired in jumping accelerate as our aggressively point looking to Europe but

Vivien Azer

So or overhang come, revenue that an SG&A right Europe with basically that’s is to like now is right?

Aaron LoCascio

Yes, but very it’s very, small.

Vivien Azer

if you that off-cycle JUUL helpful? you. will an procedure earnings my The out like call. on called next understanding that of ran small this Thank maybe you and was on what my you promo language that than question operating part of timing hearing of And guys housekeeping so understanding not is promos it was that, was and in the that’s is called be your last this just is promo that like actually out not strategic elaborate on I the so the could from that JUUL, June normal annual this June does, you by and

Aaron LoCascio

they’ve So their would calendar suggest historically consistently a I very They've mean, promotions but JUULs necessarily they quarterly I provided done forward going to -- have ran of haven’t promotions. promotion actually quarterly. expect provided not a

grown have has understand that quickly JUUL as You very expensively, to well. very

this place was quarter. the it some And two in of took promotions that actually last --

that compliance four purchasing SKU, nicotine geared actually SKUs promotion customers at would lower given the carry. of they number the was with towards upon expand One on line products a focus

they would I I have in near-term. forward, while again in it calendar, going activities again, from to I what promotional JUUL change don't their will a that So consistent no see been expect the reason you have very you believe tell that and

Vivien Azer

broader in have doing of are dive just back sales JUUL Number on investment any that, two that three Altria number data services cadence? like And key this e-com Altria’s client and offering just deeper the the and three terms is one, so is is accompaniment JUUL. of in the impact personal to base three, promos. now Does benefits the with Altria power number do with to is optimization. Number of force like a little

you your with do with of are but to process feel trying they So or that harmonize what doing been are have in you JUUL rate? sat activities some they that

Aaron LoCascio

You you what of say we as is second business. to really we know and Altria top would of as on are guess Vivien, doing not our this I part running try are that

JUUL be and may correlation with have direct our openly something pipes we some some We it and think overlap, it's discuss. obviously partners into I not that whether

Operator

We our the to would to over have for conference of I reached like closing session. end question-and-answer management back remarks. turn

Aaron LoCascio

All right. and today. Greenlane. speaking We growth you with support soon. We look your phase of for in for to joining this you Well, thank appreciate confident next us forward are

Operator

This you. conference. concludes Thank today's

thank for You your and at may lines this disconnect participation. time you your

Greenlane (GNLN) 12 Aug 192019 Q2 Earnings call transcript