Revenue Increases by 98% Year-Over-Year to
Company Achieves GAAP Profitability Following Continued Success of Celebrity Endorsement Strategy
Fiscal First Quarter 2024 and Recent Operational Highlights
- Continued successful partnerships with
Sean Hannity , JudgeJeanine Pirro ,Bill O'Reilly (NASDAQ:ORLY) , andGlenn Beck as Byrna's celebrity influencers. The celebrity endorsement program continues to deliver more than a 5X return on ad spend (ROAS), driving strong year-over-year growth and record Q1 results. - Started advertising on cable, satellite, and over-the-top (OTT) television to reach new potential customers.
- As a result of the celebrity endorsement program and television advertising, Byrna increased daily average web sessions to 33,468 in Q1 2024, a year-over-year increase of 33.4% from 25,093 in Q1 2023.
- Secured a commitment from the Córdoba Provincial Police in
Argentina to purchase 10,000 Byrna launchers through Byrna's Argentine distributor, expanding Byrna's presence inSouth America . - Added 25% more production workers at Byrna's Fort Wayne manufacturing facility, increasing launcher production capacity from 10,000 to 12,500 units per month during a single shift, in response to rising demand resulting from the Company's celebrity endorsement marketing campaign.
- Introduced the Byrna Universal Kit (legal in all 50 states and
Canada ) for the Byrna LE and Byrna SD launchers, simplifying online checkout for new customers and cutting in half the number of SKUs that the Company must carry in inventory.
Fiscal First Quarter 2024 Financial Results
Results compare the 2024 fiscal first quarter ended
Net revenue for Q1 2024 was
Gross profit for Q1 2024 was
Operating expenses for Q1 2024 were
Net income (loss) for Q1 2024 was
Adjusted EBITDA1, a non-GAAP metric reconciled below, for Q1 2024 totaled
Cash and cash equivalents at
______ |
1 See non-GAAP financial measures at the end of this press release for a reconciliation and a discussion of non-GAAP financial measures. |
Management Commentary
Byrna CEO
"Most importantly, we are seeing strong improvement in all our key performance metrics including sessions, average order value, and conversion rate. Specifically, average daily sessions for the quarter came in at 33,468, up 33% from the same period last year. Our conversion rate also climbed, reaching 1.04%, compared to 0.80% in the prior year period. Finally, our average order value (AOV) of
"Another important metric is our first-time customer percentage. Mirroring the trend from the fourth quarter of 2023, over 70% of daily orders are from first-time customers versus 56% in Q1 of 2023. These first-time customers, who tend to have a higher average order value (AOV) than returning ones, also give us the opportunity to market additional ammo and accessories to them as they begin their Byrna journey. Our targeted email marketing campaigns for first-time buyers, offering special deals on ammo and accessories, continue to yield significant benefits.
"In addition to our digital efforts and celebrity endorsement channels, we recently started advertising on TV, targeting both cable and satellite audiences through smaller, yet well-known networks with millions of viewers. This new initiative is part of our broader strategy to increase brand awareness and reach, and we expect to increase our expenditures on television advertising in the coming year as we continue to amplify the Byrna message.
"To meet the increased demand and maintain our growth trajectory, we started ramping up our launcher production at the beginning of February, from 10,000 units a month to 12,500 units a month. Since this last announcement, Byrna continued to ramp production to 15,000 units a month on a single shift. In fact, during the month of
CFO Retirement
Byrna is announcing today that its Chief Financial Officer,
Under
To ensure a seamless transition, the Company has engaged a leading executive search firm to identify top-tier talent and secure a successor who will uphold
Byrna is committed to maintaining the financial stability and growth trajectory that
Conference Call
The Company's management will host a conference call today,
Toll-Free Dial-In: 877-709-8150
International Dial-In: +1 201-689-8354
Confirmation: 13745007
Please call the conference telephone number 5-10 minutes prior to the start time of the conference call. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860.
The conference call will be broadcast live and available for replay here and via the Investor Relations section of Byrna's website.
About Byrna Technologies Inc.
Byrna is a technology company specializing in the development, manufacture, and sale of innovative less-lethal personal security solutions. For more information on the Company, please visit the corporate website here or the Company's investor relations site here. The Company is the manufacturer of the Byrna ® SD personal security device, a state-of-the-art handheld CO2 powered launcher designed to provide a less-lethal alternative to a firearm for the consumer, private security, and law enforcement markets. To purchase Byrna products, visit the Company's e-commerce store.
Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the securities laws. All statements contained in this news release, other than statements of current and historical fact, are forward-looking. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "expects," "intends," "anticipates," and "believes" and statements that certain actions, events or results "may," "could," "would," "should," "might," "occur," or "be achieved," or "will be taken." Forward-looking statements include descriptions of currently occurring matters which may continue in the future. Forward-looking statements in this news release include but are not limited to our statements related to our ability to continue to grow web traffic and sales as a result of our celebrity endorser marketing strategy, our ability to continue to expand our presence in the law enforcement market, our ability to further expand production capacity, our ability to pursue our growth plan with existing cash resources, our ability to appoint a successor Chief Financial Officer and to engage
Any number of risk factors could affect our actual results and cause them to differ materially from those expressed or implied by the forward-looking statements in this news release, including, but not limited to, disappointing market responses to current or future products or services; prolonged, new, or exacerbated disruption of our supply chain; the further or prolonged disruption of new product development; production or distribution disruption or delays in entry or penetration of sales channels due to inventory constraints, competitive factors, increased transportation costs or interruptions, including due to weather, flooding or fires; prototype, parts and material shortages, particularly of parts sourced from limited or sole source providers; determinations by third party controlled distribution channels, including Amazon, not to carry or reduce inventory of the Company's products; determinations by advertisers or social media platforms, or legislation that prevents or limits marketing of some or all Byrna products; the loss of marketing partners; increases in marketing expenditure may not yield expected revenue increases; potential cancellations of existing or future orders including as a result of any fulfillment delays, introduction of competing products, negative publicity, or other factors; product design or manufacturing defects or recalls; litigation, enforcement proceedings or other regulatory or legal developments; changes in consumer or political sentiment affecting product demand; regulatory factors including the impact of commerce and trade laws and regulations; and future restrictions on the Company's cash resources, increased costs and other events that could potentially reduce demand for the Company's products or result in order cancellations. The order in which these factors appear should not be construed to indicate their relative importance or priority. We caution that these factors may not be exhaustive; accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. Investors should carefully consider these and other relevant factors, including those risk factors in Part I, Item 1A, ("Risk Factors") in the Company's most recent Form 10-K and Part II, Item 1A ("Risk Factors") in the Company's most recent Form 10-Q, should understand it is impossible to predict or identify all such factors or risks, should not consider the foregoing list, or the risks identified in the Company's SEC filings, to be a complete discussion of all potential risks or uncertainties, and should not place undue reliance on forward-looking information. The Company assumes no obligation to update or revise any forward-looking information, except as required by applicable law.
-Financial Tables to Follow-
BYRNA TECHNOLOGIES INC. | ||||||||
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Net revenue | $ | 16,654 | $ | 8,411 | ||||
Cost of goods sold | 7,015 | 3,165 | ||||||
Gross profit | 9,639 | 5,246 | ||||||
Operating expenses | 9,803 | 7,240 | ||||||
LOSS FROM OPERATIONS | (164) | (1,994) | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Foreign currency transaction loss | (58) | (136) | ||||||
Interest income | 280 | 143 | ||||||
Loss from joint venture | (42) | (167) | ||||||
Other income (expense) | 1 | (58) | ||||||
INCOME (LOSS) BEFORE INCOME TAXES | 17 | (2,212) | ||||||
Income tax benefit | ” | 59 | ||||||
NET INCOME (LOSS) | 17 | (2,153) | ||||||
Foreign currency translation adjustment for the period | (115) | (585) | ||||||
COMPREHENSIVE INCOME (LOSS) | $ | (98) | $ | (2,738) | ||||
Basic net income (loss) per share | $ | 0.00 | $ | (0.10) | ||||
Diluted net income (loss) per share | $ | 0.00 | $ | (0.10) | ||||
Weighted-average number of common shares outstanding - basic | 22,035,249 | 21,860,200 | ||||||
Weighted-average number of common shares outstanding - diluted | 22,838,827 | 21,860,200 |
BYRNA TECHNOLOGIES INC. | ||||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 24,176 | $ | 20,498 | ||||
Accounts receivable, net | 1,536 | 2,945 | ||||||
Inventory, net | 12,128 | 13,890 | ||||||
Prepaid expenses and other current assets | 1,131 | 868 | ||||||
Total current assets | 38,971 | 38,201 | ||||||
LONG TERM ASSETS | ||||||||
Intangible assets, net | 3,510 | 3,583 | ||||||
Deposits for equipment | 1,269 | 1,163 | ||||||
Right-of-use asset, net | 1,688 | 1,805 | ||||||
Property and equipment, net | 3,591 | 3,803 | ||||||
Goodwill | 2,258 | 2,258 | ||||||
Loan to joint venture | 1,431 | 1,473 | ||||||
Other assets | 24 | 28 | ||||||
TOTAL ASSETS | $ | 52,742 | $ | 52,314 | ||||
LIABILITIES | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued liabilities | $ | 5,131 | $ | 6,158 | ||||
Operating lease liabilities, current | 641 | 644 | ||||||
Deferred revenue, current | 2,595 | 1,844 | ||||||
Total current liabilities | 8,367 | 8,646 | ||||||
LONG TERM LIABILITIES | ||||||||
Deferred revenue, non-current | 71 | 91 | ||||||
Operating lease liabilities, non-current | 1,135 | 1,258 | ||||||
Total liabilities | 9,573 | 9,995 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock, | ” | ” | ||||||
Common stock, | 24 | 24 | ||||||
Additional paid-in capital | 131,374 | 130,426 | ||||||
Treasury stock (2,165,987 shares purchased as of | (17,500) | (17,500) | ||||||
Accumulated deficit | (69,558) | (69,575) | ||||||
Accumulated other comprehensive loss | (1,171) | (1,056) | ||||||
Total Stockholders' Equity | 43,169 | 42,319 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 52,742 | $ | 52,314 |
Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in
Accordingly, we believe that this non-GAAP financial measure reflects our ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business and provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects.
This non-GAAP financial measure does not replace the presentation of our GAAP financial results and should only be used as a supplement to, not as a substitute for, our financial results presented in accordance with GAAP. There are limitations in the use of non-GAAP measures, because they do not include all the expenses that must be included under GAAP and because they involve the exercise of judgment concerning exclusions of items from the comparable non-GAAP financial measure. In addition, other companies may use other non-GAAP measures to evaluate their performance, or may calculate non-GAAP measures differently, all of which could reduce the usefulness of our non-GAAP financial measure as a tool for comparison.
Adjusted EBITDA
Adjusted EBITDA is defined as net (loss) income as reported in our condensed consolidated statements of operations and comprehensive (loss) income excluding the impact of (i) depreciation and amortization; (ii) income tax provision (benefit); (iii) interest income (expense); (iv) stock-based compensation expense, (v) impairment loss, and (vi) one time, non-recurring other expenses or income. Our Adjusted EBITDA measure eliminates potential differences in performance caused by variations in capital structures (affecting finance costs), tax positions, the cost and age of tangible assets (affecting relative depreciation expense) and the extent to which intangible assets are identifiable (affecting relative amortization expense). We also exclude certain one-time and non-cash costs. Reconciliation of Adjusted EBITDA to net (loss) income, the most directly comparable GAAP measure, is as follows (in thousands):
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Net Income (Loss) | $ | 17 | $ | (2,153) | ||||
Adjustments: | ||||||||
Interest income | (280) | (143) | ||||||
Income tax benefit | ” | (59) | ||||||
Depreciation and amortization | 338 | 276 | ||||||
Non-GAAP EBITDA | 75 | (2,079) | ||||||
Stock-based compensation expense | 938 | 1,464 | ||||||
Severance/Separation | 163 | ” | ||||||
Non-GAAP adjusted EBITDA | $ | 1,176 | $ | (615) |