Byrna Technologies reports preliminary Q3 revenue $7.1M, consensus $11.41M

Based on preliminary unaudited results, the company expects total revenue for the fiscal third quarter of 2023 to be $7.1M compared to $12.4M in the fiscal third quarter of 2022. The decrease in revenue is primarily attributed to challenges in the company’s direct-to-consumer marketing efforts, resulting from advertising bans on Meta and Google platforms. The company also estimates that its gross margins will be 45% compared to 55% in the prior year period. This decline is primarily due to one-time increases in reserves for excess and obsolete inventory, totaling approximately $650,000. Excluding these one-time adjustments, gross margins would have remained consistent with the prior year period. “In the fiscal third quarter we continued to face reduced web traffic as a result of the ongoing advertising ban implemented by Meta and Google, but we believe that we have begun to turn the corner in recent weeks,” said Byrna CEO Bryan Ganz. “While Meta’s stance remains unchanged for the time being, we have received permission from Google to advertise on YouTube, and the initial results have been encouraging. Our new partnership with Sean Hannity has also provided a demonstrable increase in web traffic over the last few weeks, which we expect to positively influence our performance in the fiscal fourth quarter and going forward. By engaging in high-value collaborations and exploring alternative advertising opportunities, we are now back on the right path to regaining our website traffic, which will lead to improved sales results over time. Despite the temporary marketing challenges, we are making substantial progress with our internal operations and remain confident that Byrna is well-positioned for long-term, sustainable growth.”