Surge in Web Sales Drives a 121%
Quarter-Over-Quarter Revenue Increase
ANDOVER,
Mass., Dec. 19, 2023 /PRNewswire/ -- Byrna
Technologies Inc. ("Byrna" or the "Company") (Nasdaq:
BYRN), a personal defense technology company specializing in
the development, manufacture, and sale of innovative less-lethal
personal security solutions, today reported preliminary
expectations for the fiscal fourth quarter ended November 30, 2023 ("Q4 2023").
Based on preliminary unaudited results, the Company expects
revenues of approximately $15.6
million for Q4 2023, representing a 120% sequential increase
from $7.1 million in the fiscal third
quarter of 2023 ("Q3 2023") and a slight decrease of 2.7% from
$16.0 million in the fiscal fourth
quarter of 2022 ("Q4 2022"). However, excluding international
sales, which are typically episodic in nature, Q4 2023 sales
increased by 33% compared to the same period last year.
The sequential increase from Q3 2023 resulted primarily from the
early success of the Company's revamped advertising strategy that
began to take shape in September
2023. The new advertising strategy also drove significant
year-over-year increases in Byrna.com, Byrna.ca, Amazon.com, and
dealer/distributor sales, amounting to $1.70
million (23%), $0.25 million
(202%), $1.25 million (70%), and
$0.75 million (35%), respectively,
and totaling $3.95 million. However,
these improvements were offset by a lack of international sales in
Q4 2023. By comparison, Byrna reported $4.3
million in international sales in Q4 2022.
Preliminary Fiscal
Fourth Quarter 2023 Sales Breakdown:
|
|
|
|
Q4 2023 vs. Q4
2022
|
|
|
Sales Channel ($ in
000s)
|
Q4
2023
|
Q4
2022
|
% Increase /
(Decrease)
|
|
|
Byrna.com
|
$
9,170
|
$7,471
|
22.7 %
|
|
|
Amazon
|
$
3,036
|
$1,789
|
69.7 %
|
|
|
Dealer/Distributor
|
$
2,850
|
$2,108
|
35.2 %
|
|
|
Fox Labs
|
$
312
|
$348
|
(10.3) %
|
|
|
International (Outside
USMCA)
|
$
(163)
|
$4,175
|
(103.9) %
|
|
|
Canada
|
$
386
|
$128
|
201.6 %
|
|
|
Total
Sales
|
$
15,593
|
$16,018
|
(2.7) %
|
|
|
Total Sales
Excluding International
|
$
15,755
|
$11,844
|
33.0 %
|
|
|
|
Holiday Sales Overview
The Company saw very strong
demand during the extended Holiday Selling period, spanning from
October 1st through Cyber Monday.
This year, net orders on Byrna.com and Amazon totaled $10.2 million, up 48% from $6.9 million in the prior year period. Daily
average web sessions increased 28.6% year over year. Perhaps most
importantly, new customer orders increased from 59.5% to 68.5%.
This trend is expected to have a long-term positive impact, as it
is anticipated that these customers will return to Byrna.com for
additional purchases of ammo, accessories, and new products.
Management Commentary
"Our strong fiscal fourth
quarter sales are a direct outcome of the transformational shift in
our advertising strategy, which commenced in September 2023. Through this strategic change, we
pivoted away from traditional social media channels in favor of a
more targeted approach via celebrity endorsement, talk radio, and
non-social media online advertising efforts. These channels have
proven to be effective and plentiful thus far, resulting in average
daily web sessions of 32,477 during Q4 2023, a remarkable 173%
increase in average daily web sessions over Q3 2023," stated Byrna
CEO Bryan Ganz. "Our
direct-to-consumer sales reached new heights this quarter, as sales
on Byrna.com and Amazon increased 40% and 79%, respectively,
compared to our previous record in Q4 2022.
"The successful launch of our partnership with Sean Hannity provided invaluable insights into
our new strategy, instilling confidence in the model's
sustainability. Recently, we welcomed Judge Jeanine Pirro into our fold, clearly indicating
our active pursuit of expanding our roster of distinguished
celebrities. Although these campaigns are still in their early
stages, the initial results and subsequent performance reaffirm our
view to continue judiciously investing in these high return areas.
We are encouraged by the influx of new customers and the growth in
the average order size from our online sales, indicating a higher
likelihood of repeat orders from this cohort in the coming year. As
we move into fiscal year 2024, we will continue analyzing the data
and refining our approach, positioning Byrna for continued
success."
Conference Call
Byrna plans to report its full
financial results for the fiscal fourth quarter and full year 2023
in February 2024, which will be
accompanied by a conference call to discuss the results and address
questions from investors and analysts. The conference call details
will be announced prior to the event.
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,"
"will," "anticipates," and "believes" and statements that certain
actions, events or results "may," "could," "would," "should,"
"might," "occur," "be achieved," or "will continue to."
Forward-looking statements in this news release include, but are
not limited to, statements regarding preliminary revenue for the
fourth fiscal quarter of 2023, Byrna's plans to continue to
implement its revised marketing strategy, the expected benefits of
celebrity endorsements, the likelihood of repeat orders from new
customers, and Byrna's ability to expand its market reach or
increase sales. Forward-looking statements include descriptions of
currently occurring matters which may continue in the
future. Forward-looking statements are not, and cannot be, a
guarantee of future results or events. Forward-looking statements
are based on, among other things, opinions, assumptions, estimates,
and analyses that, while considered reasonable by the Company at
the date the forward-looking information is provided, inherently
are subject to significant risks, uncertainties, contingencies, and
other factors that may cause actual results and events to be
materially different from those expressed or implied.
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, potential cancellations of existing or future
orders including as a result of any fulfillment delays,
introduction of competing products, negative publicity, other
factors, changes in the markets for security products and
non-lethal defense technology could have a material adverse impact
on our business, financial condition and results of operations. 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 our most recent
Form 10-K, 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 our 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.
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SOURCE Byrna Technologies Inc.