• Net Revenue: $20.9 million for Q3 2024, up 194% from $7.1 million in Q3 2023.

• Gross Profit: $13 million or 62.4% of net revenue for Q3 2024, compared to $3.2 million or 44.6% in Q3 2023.

• Operating Expenses: $12.2 million for Q3 2024, up from $7.3 million in Q3 2023.

• Net Income: $1 million for Q3 2024, a $5.1 million improvement from a net loss of $4.1 million in Q3 2023.

• Adjusted EBITDA: $1.9 million for Q3 2024, compared to negative $2.4 million in Q3 2023.

• Cash and Cash Equivalents: $20.1 million as of August 31, 2024.

• Inventory: $19.8 million as of August 31, 2024.

• Direct-to-Consumer Sales: $15.5 million or 74% of total sales for Q3 2024.

• Store Locations: Increased from 42 to 137 stores with Bass Pro Shop and Cabela.

• Warning! GuruFocus has detected 5 Warning Sign with HELE.

Release Date: October 09, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Byrna Technologies Inc (NASDAQ:BYRN) reported a record $20.9 million in revenue for Q3 2024, marking a 194% increase from the same period in 2023.

• The company achieved a significant improvement in gross profit margin, reaching 62.4% in Q3 2024 compared to 44.6% in Q3 2023.

• Byrna Technologies Inc (NASDAQ:BYRN) has maintained profitability with a net income of $1 million in Q3 2024, a substantial improvement from a net loss of $4.1 million in Q3 2023.

• The company's direct-to-consumer (DTC) sales channel, which is its highest margin channel, accounted for 74% of total sales in Q3 2024.

• Byrna Technologies Inc (NASDAQ:BYRN) has no current or long-term debt, providing financial stability and flexibility for future growth initiatives.

Negative Points

• Operating expenses increased to $12.2 million in Q3 2024 from $7.3 million in Q3 2023, driven by higher variable selling costs and increased marketing spend.

• The company anticipates a potential negative impact on margins due to promotional sales during the holiday season.

• Despite strong sales growth, Byrna Technologies Inc (NASDAQ:BYRN) faces challenges in scaling production to meet increasing demand, necessitating the addition of a second production shift.

• The company's expansion into new advertising channels and increased marketing spend may not immediately translate into proportional sales growth.

• Byrna Technologies Inc (NASDAQ:BYRN) is cautious about providing official guidance due to uncertainties in maintaining the current growth momentum.

Q & A Highlights

Q: Can you speak more about adding another shift in Q1 and how it will affect production capacity and supply chain? A: Bryan Ganz, CEO: We can currently produce about 18,000 launchers per month on one shift. With demand increasing, we plan to expand production to 24,000-28,000 launchers per month by adding a second shift. We've been dual-sourcing components to mitigate supply chain risks, and we're well-positioned to scale up production.