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Dec 31, 2021
Topgolf Callaway Q4 2021 Earnings Report
Announced record fourth quarter and full year 2021 results, driven by Topgolf and apparel.
Key Takeaways
Callaway Golf Company reported a strong fourth quarter, driven by Topgolf's performance and momentum in apparel and golf equipment. Consolidated net revenue increased by 90% compared to Q4 2020, reaching $712 million. However, the company experienced a GAAP net loss of $26 million and a non-GAAP net loss of $35 million for the quarter.
Net revenue increased 90%, driven by Topgolf and Apparel, Gear and Other segment.
Non-GAAP loss per share was ($0.19) in the fourth quarter of 2021, compared to a loss of ($0.33) per share in 2020.
Fourth quarter 2021 Adjusted EBITDA increased $27 million, driven by a $46 million contribution from the Topgolf business, partially offset by lower adjusted EBITDA in the golf equipment and apparel businesses.
Same venue sales surpassed expectations in the quarter, increasing 6% compared to the 2019 level and generating strong flow-through to Adjusted EBITDA.
Revenue by Geographic Location
Forward Guidance
The company provided full year 2022 revenue outlook of $3,780 million to $3,820 million and Adjusted EBITDA guidance of $490 million to $515 million.
Positive Outlook
- Full year 2022 net revenue estimate assumes Topgolf segment revenue of approximately $1.5 billion for the twelve months ended December 31, 2022
- Continued positive demand fundamentals for Callaway's Golf Equipment
- Continued positive demand fundamentals for Apparel, Gear and Other segments.
- Full year 2022 Adjusted EBITDA estimate assumes the Topgolf segment will deliver $210 - $220 million in Adjusted EBITDA for the twelve months ended December 31, 2022.
- Net Revenue: Full year 2022 net revenue estimate assumes Topgolf segment revenue of approximately $1.5 billion for the twelve months ended December 31, 2022, as well as continued positive demand fundamentals for Callaway's Golf Equipment and Apparel, Gear and Other segments.
Challenges Ahead
- Ongoing impact of COVID-19 on the supply chain
- Ongoing impact of COVID-19 on staffing levels at our Topgolf venues
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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