XPEL Reports 34.5% Revenue Growth in Q4 2023

By Bobby Samwell • Thursday, February 22 16:02 • Permanent Link

Xpel, Inc. (NASDAQ: XPEL), a global provider of protective films and coatings, has reported its consolidated financial results for the fourth quarter and year ended December 31, 2023. The company's revenue increased by 34.5% to $105.5 million in the fourth quarter of 2023 compared to the same period in 2022. Net income also saw a significant increase, rising by 43.2% to $12.0 million, or $0.43 per basic and diluted share, in the fourth quarter of 2023. EBITDA grew by 33.6% to $17.7 million, equivalent to 16.7% of revenue.

For the year ended 2023, Xpel's revenue increased by 22.3% to $396.3 million, with net income increasing by 27.6% to $52.8 million, or $1.91 per basic and diluted share. EBITDA for the year grew by 25.6% to $76.9 million, representing 19.4% of revenue.

Ryan Pape, President and Chief Executive Officer of Xpel, expressed satisfaction with the company's performance, stating, "We are pleased with our full year 2023 performance and closed out the year with solid growth in the fourth quarter. We delivered strong performance across our end markets and product offerings driving improved profitability for the year."

He further added, "We've made important progress in 2023 in key areas including enhancing our focus on new car dealerships, improving our go-to-market strategy in China, India and the Middle East and launching our next generation software platform dapnext. We look forward to building on the momentum of last year across all of our initiatives, staying close to our customers and furthering the Xpel brand in 2024."

In terms of geographical revenue, the fourth quarter of 2023 saw significant growth in the China region, which expanded by 166.6% and represented 15.7% of total revenue. The Middle East/Africa region also experienced a noteworthy increase, growing by 100.4% year-over-year.

Product and service revenue for Xpel showed positive growth, with total product revenue increasing by 35.8% year-over-year and total service revenue increasing by 30.0% year-over-year. The company's adjusted product revenue, which combines cutbank credits revenue and product revenue, grew by 32.4% year-over-year.

Looking ahead, Xpel provided an outlook for 2024, anticipating an annual revenue growth of approximately 15%.

In response to the financial results, the company's shares have moved -6.9% and are currently trading at a price of $51.75.

The company's full 8-K submission is available here.

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