What trends are visible in XPEL's 2024 earnings?

XPEL's 2024 earnings exhibit several notable trends: 1. **Revenue Growth**: XPEL has demonstrated a consistent upward trend in revenue. The company's revenue for Q3 2024 was $112.9 million, marking a 9.9% increase from the same period in 2023. This growth was primarily driven by a 9.4% rise in revenue from the United States and significant increases in revenue from Canada (25.7%), the Middle East/Africa (35.2%), and the Asia Pacific (26.7%) regions. 2. **Earnings Per Share (EPS) Increase**: The EPS for Q3 2024 was $0.54, which is a 9.1% increase from the $0.49 reported in Q3 2023. This reflects improved profitability and operational efficiency. 3. **Gross Margin Improvement**: XPEL's gross margin improved to 42.5% in Q3 2024, up from 40.4% in the same period in 2023. This indicates enhanced operational efficiency and cost management. 4. **EBITDA Growth**: The company's EBITDA grew by 10.0% to $21.7 million, maintaining a steady 19.2% of revenue. This suggests strong cash flow generation and financial stability. 5. **Regional Variations**: While XPEL experienced significant growth in some regions, there were variations. For instance, revenue from China declined by 11.6%. This regional discrepancy warrants close monitoring by management to mitigate any potential impact on overall growth. 6. **Operating Expenses Increase**: Operating expenses increased by 23.6% year-over-year, with sales and marketing expenses up by 37.6% and general and administrative expenses by 16.8%. This indicates XPEL's investment in growth initiatives, which is a positive sign for future expansion. In summary, XPEL's 2024 earnings reflect robust growth in revenue and EPS, improved gross margins, and enhanced operational efficiency. The company's strategic investments in regional expansion and marketing are evident in the increase in operating expenses. However, the decline in revenue from China presents a challenge that requires careful management.