XPEL, Inc. (NASDAQ:XPEL) Q1 2023 Earnings Conference Call May 9, 2023 11:00 AM ET

Company Participants

John Nesbett – IMS Investor Relations

Ryan Pape – President and Chief Executive Officer

Barry Wood – Senior Vice President and Chief Financial Officer

Conference Call Participants

Steve Dyer – Craig-Hallum

Jeff Van Sinderen – B. Riley

Tim Moore – EF Hutton

Operator

Greetings, and welcome to the XPEL, Inc. First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode and a question-and-answer session will follow the formal presentation. [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 first 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'll take questions from the call participants.

I'll now 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 not be 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 our actual results to materially differ from those expressed in these statements. 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.

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

Ryan Pape

Thanks, John, and good morning, everyone. Welcome to our first quarter 2023 call. Clearly, we're off to a great start in 2023. In the quarter, revenue grew 19.5% to $85.8 million. This was our second highest revenue quarter in history, which is great considering Q1 is almost always and historically been our lowest seasonal quarter of the year. U.S. revenue grew 22.8% compared to Q1 2022 to $51 million. This was up sequentially by a little over 7%. Results seems to coincide with Q1 U.S. SAAR performance, which finished better than most expected and rising new car inventory levels were a contributing factor to this better-than-expected results, and we benefited from that.