Byrna (BYRN) Q4 2024 Earnings Call Transcript

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Friday, Feb. 7, 2025 astatine 9 a.m. ET

• Chief Executive Officer — Bryan Ganz

• Chief Financial Officer — Lauri Kearnes

Bryan Ganz: Thank you, Kevin, and convey you everyone for joining america today. We volition beryllium filing our 10-Ks with the SEC today. We are not definite if it is going to get retired earlier the unfastened oregon aft the close, but it is successful for filing. And arsenic Kevin mentioned, we person issued a property merchandise providing our fiscal results and concern highlights for the fiscal 4th fourth and for the afloat twelvemonth ended November 30, 2024. I americium going to commencement by turning the telephone implicit to our CFO, Lauri Kearnes, who volition reappraisal our fiscal results for the period.

Following her remarks, I volition sermon the operational highlights that drove our grounds $28 cardinal successful gross and continued GAAP and non-GAAP EBITDA profitability for the 4th quarter. I volition past connection insights into our strategy moving forward, earlier we unfastened the telephone to questions from our covering probe analyst. Lauri.

Lauri Kearnes: Thank you, Bryan, and bully morning, everyone. Let's reappraisal our fiscal results for the fiscal 4th fourth and the afloat twelvemonth ended November 30, 2024. Net gross for the 4th fourth was $28 million, a 79% summation from the $15.6 cardinal reported successful the fiscal 4th fourth of 2023. This $12.4 cardinal summation is chiefly owed to the transformational displacement successful our advertizing strategy we began successful September 2023 and the resulting normalization of Byrna Technologies Inc. and the little lethal abstraction generally. In Q4, direct-to-consumer revenues accrued by $8.9 cardinal done byrna.com and amazon.com, compared to the anterior twelvemonth period. For the afloat twelvemonth 2024, nett gross totaled $85.8 million, up 101% from $42.6 cardinal successful 2023.

The gross nett for Q4 2024 was $17.6 cardinal oregon 62.8% of nett revenue, compared to $9 cardinal oregon 57.8% of nett gross for Q4 2023. For the afloat twelvemonth 2024, gross nett was $52.8 cardinal oregon 61.5% of nett revenue, compared to $23.6 cardinal oregon 55.5% of nett gross for the aforesaid play successful 2023. The betterment successful gross nett borderline is mostly attributable to further income done our higher borderline DTC channels and intensive outgo constituent simplification effort spearheaded by Byrna Technologies Inc.'s engineering squad and the economies of standard resulting from accrued accumulation volumes. Operating expenses for Q4 2024 were $13.5 cardinal compared to $9.7 cardinal for Q4 2023.

For the afloat twelvemonth 2024, operating expenses were $46.1 cardinal compared to $31.4 cardinal for the aforesaid play successful 2023, reflecting a 47% summation twelvemonth implicit year. The summation successful operating expenses was driven by an summation successful our adaptable selling costs, specified arsenic freight and third-party processing fees, recognition paper fees, accrued selling spend, and higher payroll expenses successful selling and engineering. The nett income for Q4 2024 was $9.7 cardinal compared to a nett nonaccomplishment of $0.8 cardinal for Q4 2023, a $10.5 cardinal improvement. This summation was driven by higher gross and a $5.6 cardinal income taxation benefit.