Financial Data and Key Metrics Changes - Net revenue for Q1 2025 was 16.7 million in Q1 2024, driven by sales momentum, channel expansion, and broader brand adoption [7][11] - Gross profit for Q1 2025 was 9.6 million, or 58% of net revenue for Q1 2024, indicating improved gross margin [9] - Net income for Q1 2025 was 17,000 for Q1 2024, reflecting an overall increase in product sales [11] - Adjusted EBITDA for Q1 2025 totaled 1.2 million for Q1 2024 [12] Business Line Data and Key Metrics Changes - Direct-to-consumer revenues increased by 1.9 million, or 78%, with significant contributions from chain stores, particularly Bass Pro Shops [9] Market Data and Key Metrics Changes - Amazon sales represented 26.9% of Burna's total direct-to-consumer sales in Q1 2025, up from 19.3% in Q1 2024, and climbed to 32.6% in March 2025 [17][18] - The company has seen improved daily sales trends in February and March compared to January, despite general market softness [15] Company Strategy and Development Direction - The company is focusing on expanding its retail presence through partnerships, such as the store-within-a-store program with Sportsman's Warehouse, which has expanded to 54 locations [23][24] - The upcoming launch of the compact launcher is expected to drive significant sales growth, with a production goal of over 25,000 units before the official release [54][59] - The company is transitioning its supply chain to domestic suppliers, which is expected to enhance quality control and reduce costs associated with inventory in transit [33][44] Management's Comments on Operating Environment and Future Outlook - Management anticipates that Q1 2025 was the low point for revenues in the year, with expectations for sequential growth in subsequent quarters driven by the new compact launcher [75] - The company is well-positioned to offset the impact of increased tax rates and tariffs through gross margin expansion and disciplined operating expense management [60] Other Important Information - The company has initiated production of its payload rounds at a new facility in Fort Wayne, Indiana, with an annual capacity of 8 million rounds [46] - The compact launcher is designed to appeal to a broader market, including women, due to its smaller size and ease of use [52] Q&A Session Summary Question: Can you provide insights on early sales trends for Q2 and ROAS management? - Management noted that ROAS is typically lower in the early part of the year, with expectations to focus on existing customer sales for the new compact launcher, reducing advertising spend until later in the year [66][67] Question: What is the rollout plan for the new compact launcher? - The company plans to have 25,000 to 30,000 units ready before the launch, with dealer orders starting to be fulfilled by April 21, leading up to the public release on May 1 [70][73] Question: What are the current operational stores and learnings from the Sportsman's partnership? - Currently, one store is operational, with 13 more set to open by May 1, and the company is optimistic about leveraging Sportsman's existing foot traffic to drive sales [80][82] Question: What is the MSRP for the new compact launcher compared to existing products? - The MSRP for the new compact launcher will be 479.99 for the LE and $379 for the SD [94] Question: Will the new compact launcher have different ammo margins? - The new 61 caliber ammo will have similar pricing and margins as existing products, with no significant cost differences anticipated [96]
Byrna Technologies (BYRN) - 2025 Q1 - Earnings Call Transcript