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Dec 31, 2023
Lucky Strike Entertainment Q2 2024 Earnings Report
Reported double-digit total growth and strategic acquisitions.
Key Takeaways
Bowlero Corp. reported an 11.8% increase in revenue to $305.7 million for the second quarter of fiscal year 2024. The company's acquisition of Lucky Strike contributed to this growth, and the event business saw a 30% increase. However, the company reported a net loss of $63.5 million, which includes $64.1 million of expense from the non-cash impact of the earnouts for the current period.
Revenue increased by 11.8% to $305.7 million compared to the prior year.
Adjusted EBITDA reached $103.1 million, up from $97.0 million in the prior year.
Three locations were added during the quarter, including two acquisitions and one new build-out.
The company repurchased approximately 7.5 million shares of Class A common stock for around $80 million during the quarter.
Lucky Strike Entertainment
Lucky Strike Entertainment
Forward Guidance
The Company expects Revenue to be up 10% to 15% in fiscal year 2024, excluding the $21 million of Service Fee Revenue1 from prior year revenue, equating to $1.14 billion to $1.19 billion. Adjusted EBITDA margin is expected to be 32% to 34%, which equates to Adjusted EBITDA of $365 million to $405 million. The Company expects the third quarter of fiscal year 2024 to have Revenue Excluding Service Fee Revenue of $335 million to $350 million and Adjusted EBITDA of $128 million to $143 million.
Positive Outlook
- Revenue is expected to increase by 10% to 15% in fiscal year 2024.
- Adjusted EBITDA margin is projected to be between 32% and 34% for fiscal year 2024.
- Revenue Excluding Service Fee Revenue for Q3 2024 is expected to be $335 million to $350 million.
- Adjusted EBITDA for Q3 2024 is anticipated to be $128 million to $143 million.
- Significant reinvestment in the business is planned for fiscal year 2024, including acquisitions, new builds, and conversions and growth initiatives.
Challenges Ahead
- Meaningful weather headwinds in the first three weeks of January are expected to impact the third quarter.
- The company experienced a net loss of $63.5 million for the quarter.
- The net loss includes a $64.1 million expense from the non-cash impact of earnouts.
- Cautious approach to the third quarter due to weather headwinds.
- The company is reinvesting heavily in the business in fiscal year 2024, with more than $190 million allocated to acquisitions (up from $160 million), $40 million to new builds, and $80 million to conversions and growth (up from $75 million).