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The company is still in growth and expansion mode, which requires capitalinvestment. However, its 2023 adjusted earnings before interest, tax, depreciation, and amortization ( EBITDA ) loss of $172.6 million in 2023 revenue and its current market capitalization of $1.1 Based on Lemonade's $429.8
Meta has consistently increased its capital expenditures during its life as a publiccompany, but spending took a massive step up in 2022. The big focus for the company is artificial intelligence. 2024 will see an increase in capital expenditures and operating expenses (as a result of greater depreciation).
And as the Canadian cannabis market continues to mature and consolidate, we expect excess capacity within the industry to present Canopy with tangible opportunities to accelerate speed to market, avoid capitalinvestments until critical sales volumes are achieved, and to provide us with surge capacity during peak periods.
Kyle has been a senior finance leader with publiccompanies for over 17 years, including a long career with General Electric, and he's been immersed in our business for the past four years, most recently as our head of revenue management and finance in LTL. In closing, I want to comment on the CFO transition we announced in July.
However, our asset-light model for Europe is now coming online, supported by agreements with multiple EU based cultivators and we expect this will provide the scalability that we need to meet rising demand over the coming quarters without the need for heavy capitalinvestments. I'd like to now review our cash flow and balance sheet.
There is a reacceleration of capitalinvestment by cloud companies, fab utilization is increasing across all device types and memory inventory levels are normalizing. Finally, the reduction in depreciation and share-based compensation, in cost of sales, increased gross margin by approximately 40 basis points. or Europe?
I'd like to point out that definition of free cash flow has been amended to include deferred license payments, which represent capitalinvested in game development and are a component of financing activities on the cash flow statement. Vince Sadusky -- Chief Executive Officer Yeah.
Chris Miller joined as CFO and has over 40 years of finance and accounting experience, including 20 years of publiccompany experience in wholesale and retail industries with a great track record of delivering on execution and profitability objectives. In addition to Jason, we also welcomed our new CFO and CIO in January.
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