XPEL Inc Reports Second Quarter 2024 Financial Results

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XPEL, Inc. Reports Second Quarter 2024 Financial Results

XPEL, Inc. (NASDAQ:XPEL), a global provider of protective films and coatings, announced its financial results for the second quarter of 2024.

Key Financial Metrics

Metric	Q2 2024	Q2 2023	QoQ Change (%)	YoY Change (%)	Consensus Estimates (Q2 2024)
Revenue	$109.9 million	$102.2 million	+22.0%	+7.5%	$105.68 million
Earnings Per Share (EPS)	$0.54	$0.57	+125.5%	-5.3%	$0.46
Net Income	$15.0 million	$15.7 million	+125.5%	-4.5%	Not Provided
Gross Margin	43.5%	43.0%	+0.5 pp	+0.5 pp	Not Provided
EBITDA	$21.8 million	$22.4 million	+86.5%	-2.7%	Not Provided

Interpretation : XPEL reported a solid increase in both quarterly and yearly revenue, surpassing consensus estimates. However, net income and EPS showed a slight year-over-year decline while registering a significant quarter-over-quarter improvement, indicating potential improvements in operational efficiencies or cost management.

Revenue Performance by Segment

Segment	Q2 2024	Q2 2023	QoQ Change (%)	YoY Change (%)	Previous Guidance
Total Revenue	$109.9 million	$102.2 million	+22.0%	+7.5%	Around $105M

Interpretation : The revenue from the US market exhibited robust growth both quarter-over-quarter (QoQ) and year-over-year (YoY), suggesting strong domestic performance. The company also saw significant growth in service and installation revenues, driven by increased demand in dealership services and OEM businesses.

Financial and Operational Data

Gross Margin Percentage: 43.5% (Q2 2024) vs. 43.0% (Q2 2023)
Total Operating Expenses: +20.5% YoY, flat QoQ
Sales and Marketing Expenses: +26.2% YoY, -1.1% QoQ
General and Administrative Expenses: +17.5% YoY, +0.8% QoQ
Cash Flows from Operations: Increased by $0.2 million YoY and $31.9 million QoQ to a record $26.9 million

Comments from Company Officers

Ryan Pape, President and CEO of XPEL, commented, “We saw record revenue, record operating cash flow, and solid gross margin performance in the second quarter. We are off to a great start in Q3 and we remain well positioned to capitalize on growth opportunities wherever they may exist."

Announced Dividends or Share Repo Program

No information provided in the earnings release.

Forward Guidance

The company continues to project an annual revenue growth rate of 8-10% for 2024.

Stock Price Movement

After the earnings release, XPEL's stock price saw a notable increase of approximately 11.65%.

Overall, XPEL delivered record revenue figures and strong cash flow, although net income and EBITDA showed modest declines year-over-year. The company seems optimistic about future growth prospects moving into Q3 2024.