XPEL, Inc. (NASDAQ:XPEL) Q2 2023 Results Conference Call August 9, 2023 11:00 AM ET

Company Participants

John Nesbett - IMS IR

Ryan Pape - President and CEO

Barry Wood - SVP and CFO

Conference Call Participants

Steve Dyer - Craig-Hallum

Jeff Van Sinderen - B. Riley

Tim Moore - EF Hutton

Operator

Greetings, and welcome to the XPEL, Inc. Second Quarter 2023 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Mr. John Nesbett of IMS Investor Relations. Sir, you may begin.

John Nesbett

Good morning, and welcome to our conference call to discuss XPEL’s financial results for the second quarter of 2023. On the call today, Ryan Pape, XPEL’s President and Chief Executive Officer; and Barry Wood, XPEL’s Senior Vice President and Chief Financial Officer, will provide an overview of the business operations and review the Company’s financial results. Immediately after the prepared comments, we will take questions from call participants.

I’d like to take a moment to read the Safe Harbor statement. During the course of this call, we’ll make certain forward-looking statements regarding XPEL, Inc. and its business which may include, but are not limited to, anticipated use of proceeds from capital transactions, expansion into new markets and execution of the Company’s growth strategy. Such statements are based on our current expectations and assumptions which are subject to known and unknown risk factors and uncertainties that could cause actual results to differ materially from those expressed in these statements. Some of these factors are discussed in detail in our most recent Form 10-K, including under Item 1A Risk Factors, filed with the Securities and Exchange Commission. XPEL undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events or otherwise.

Okay. With that, I will now turn the call over to Ryan Pape. Go ahead, Ryan.

Ryan Pape

Thank you, John, and likewise, good morning, everyone. Welcome to the second quarter 2023 call.

Clearly and obviously, Q2 was another great quarter for us. Record revenue, gross profit, EBITDA, net income. Revenue for the quarter grew 21.9% to $102.2 million. This is our first ever quarter where we exceeded $100 million in revenue, which is a great symbolic milestone for us, especially for those of us who were here when we had a quarter with $3 million in revenue. So great quarter. The U.S. region had another solid quarter, revenue growing 20.3% compared to Q2 2022 to $59.1 million. That was up sequentially just under 16% and about 15% over our previous high quarter for the region, which was Q3 of last year.