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Sep 30, 2021

Traeger Q3 2021 Earnings Report

Reported third quarter fiscal 2021 results and reiterated outlook for full year 2021.

Key Takeaways

Traeger reported a revenue increase of 11.7% to $162.0 million compared to the third quarter last year. The company faced challenges with gross profit margin, which decreased to 33.5% due to increased freight rates and logistics costs. Net loss was $89.2 million, driven by equity-based compensation expense.

Total revenue increased by 11.7% to $162.0 million.

Gross profit margin was 33.5%.

Net loss was $89.2 million.

Adjusted EBITDA was $4.1 million.

Total Revenue
$162M
Previous year: $145M
+11.7%
EPS
-$0.06
Previous year: $0.07
-185.7%
Gross Margin
33.5%
Previous year: 45.3%
-26.0%
Adjusted EBITDA
$4.1M
Previous year: $34.4M
-88.1%
Sales & Marketing Expenses
$48.5M
Previous year: $26.6M
+82.3%
Gross Profit
$54.3M
Previous year: $65.8M
-17.4%
Cash and Equivalents
$18.1M
Previous year: $26.4M
-31.5%
Free Cash Flow
-$23.8M
Previous year: $25.8M
-192.1%
Total Assets
$1.15B

Traeger

Traeger

Traeger Revenue by Segment

Forward Guidance

For the full year fiscal 2021, Traeger expects total revenue to be between $760 million and $770 million, and Adjusted EBITDA to be between $103 million and $108 million.

Positive Outlook

  • Sustained consumer demand
  • Investment in product innovation
  • Investment in marketing
  • Investment in growth infrastructure
  • Investment in public company costs

Challenges Ahead

  • Gross margin pressures due to global supply chain challenges
  • Unable to provide reconciling information with respect to provision (benefit) for income taxes
  • Unable to provide reconciling information with respect to other (income) expense
  • Unable to provide reconciling information with respect to interest expense, depreciation and amortization
  • Unable to provide reconciling information with respect to equity-based compensation

Revenue & Expenses

Visualization of income flow from segment revenue to net income