Financial Data and Key Metrics Changes - The company reported a 3% revenue growth in Q4 2024, with adjusted EBITDA of $18 million, up 41% from Q4 2023 [10][11][48] - Gross margin improved by 410 basis points year-over-year, reaching 40.9% [10][46] - For the full year 2024, adjusted EBITDA grew by 34%, and gross margin expanded by 540 basis points [12][44] Business Line Data and Key Metrics Changes - Grill revenues increased by 30% year-over-year to $78 million in Q4, driven by strong sell-through during the holiday season and the launch of the Woodridge series [23][44] - Consumables revenue grew by 25% to $31 million, supported by increased replenishment and new distribution at Walmart [27][44] - Accessories revenue declined by 24% to $60 million, primarily due to underperformance at Meater [30][44] Market Data and Key Metrics Changes - North America revenues increased by 11%, while revenues from the rest of the world declined by 39%, largely influenced by Meater's performance [45][109] - The company noted a significant demand for lower-priced grills, confirming the strategy to focus on accessible price points [24][76] Company Strategy and Development Direction - The company aims to increase brand awareness, with household penetration at only 3.6%, indicating a significant long-term growth opportunity [14] - Strategic partnerships and brand activation efforts, including collaborations with culinary brands, are part of the growth strategy [17][26] - The company plans to double its roadshow program at Costco in 2025 to enhance consumer education and brand awareness [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's health despite macroeconomic uncertainties, with expectations for modest growth in the grill market in 2025 [38][70] - The company is preparing for potential impacts from tariffs, with ongoing strategies to mitigate risks [36][37] - For fiscal year 2025, the company is guiding revenues of $595 to $615 million, reflecting a potential decline or slight growth compared to 2024 [35][51] Other Important Information - Dom Blosil, the CFO, announced his transition out of the role, with Joey Hord set to take over [40][41] - The company ended 2024 with $15 million in cash and cash equivalents and $409 million in total debt [48][49] Q&A Session Summary Question: Expectations for the accessories business in 2025 - Management is conservatively forecasting Meater's performance and believes there are opportunities for improvement through retail expansion [60] Question: Impact of advertising spend on Meater's performance - Management noted that Q1 insights may not be indicative of future performance due to Meater's revenue concentration in Q4 [62] Question: Overall grill market expectations for 2025 - Management expects modest growth in the grill market, with a potential increase in prices and a return to a more normalized replacement cycle [70][71] Question: Strategy for lower price point grills - The company plans to continue leveraging the success of lower-priced models while introducing the Woodridge series at a premium price point [76] Question: Inventory levels and tariff anticipation - The increase in inventory was primarily due to the Woodridge launch, not specifically for tariff anticipation [79] Question: Long-term leverage goals and free cash flow expectations - The long-term goal is to maintain leverage at or below three turns, with free cash flow expected to be similar to 2024 [90][91]