The following is a summary of the XPEL, Inc. (XPEL) Q4 2023 Earnings Call Transcript:
Financial Performance:
XPEL reported a strong 2023, with revenue and net income growth of 22.3% and 27.6% respectively. In Q4, revenue rose 34.5% to $105.5 million with a gross margin of 38.8%.
Several measures demonstrated progress: net income increased 43.2%, EBITDA grew 33.6% and EPS for the quarter was $0.43 per share.
Their revenue forecast for Q1 2024 is in the range of $93 million to $96 million and is aiming for a 15% revenue growth for the year.
Several product lines experienced strong performance, with paint protection film and cutbank revenue up 32.4%, window film product revenue up 19.2%, and Vision product line revenue up 141%.
Business Progress:
The US region and the China region, particularly the latter, experienced solid growth in Q4.
They made three acquisitions in Q4 2023 and another one in Q1 2024, while also enhancing their offerings and services to customers.
Growth is expected in the dealership business as new car inventories bounce back and there is a deliberate push to increase content per vehicle.
Future plans include increasing marketing spend, developing the DAP team and further acquisitions. However potential downside risks include vehicle affordability and potential reduced aftermarket customer investment.
Launch of new products is planned for the upcoming dealer conference.
More details: XPEL Inc IR
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