Byrna Technologies Inc (BYRN, Financial), a personal defense technology company, released its fiscal third quarter (Q3 2023) results on October 12, 2023. The company reported a decrease in net revenue and an increase in net loss compared to the same period in the previous year.
Financial Performance
Byrna Technologies Inc (BYRN, Financial) reported a net revenue of $7.1 million for Q3 2023, a decrease from $12.4 million in Q3 2022. The decrease in revenue is primarily attributed to challenges in the Company’s direct-to-consumer (DTC) marketing efforts, resulting from advertising bans on Meta and Google platforms, and reduced international sales to South Africa, Asia, and Latin America.
The company's gross profit for Q3 2023 was $3.2 million (45% of net revenue), a decrease from $6.9 million (55% of net revenue) for Q3 2022. The decrease in gross margin is primarily due to $0.6 million of charges to costs of goods sold for inventory write-downs and additions to reserves for excess and obsolete inventory recorded during Q3 2023.
Operating expenses for Q3 2023 were $7.3 million, a decrease from $8.3 million for Q3 2022. The decrease in operating expenses was primarily due to reduced marketing spend and ongoing cost management efforts.
Net loss for Q3 2023 was $(4.1) million, an increase from $(1.5) million for Q3 2022. The increase in net loss was primarily due to the decrease in revenue.
Management Commentary
Altered dynamics in our social media marketing landscape presented significant challenges in our direct-to-consumer marketing efforts, resulting in what we expect to be a temporary dip in our overall sales this quarter. In response, we have taken swift and comprehensive actions to address these hurdles and test new strategies," said Byrna CEO Bryan Ganz.
Ganz also mentioned the company's plans to expand its radio presence and influencer strategy to enhance market reach. He highlighted the company's robust balance sheet with over $13.7 million in cash and cash equivalents and no debt, which provides flexibility in exploring new marketing channels and strategic investment in key areas of the business.
Financial Tables
The company's financial tables provide a detailed breakdown of its performance, including net revenue, cost of goods sold, gross profit, operating expenses, and net loss for the three and nine months ended August 31, 2023 and 2022. The tables also provide a comprehensive view of the company's balance sheet as of August 31, 2023, and November 30, 2022.
Byrna Technologies Inc (BYRN, Financial) continues to navigate the challenges in its marketing landscape while maintaining a strong financial position. The company's focus remains on maintaining a robust cash flow trajectory as it moves forward.
