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Mar 31, 2024
Topgolf Callaway Q1 2024 Earnings Report
Topgolf Callaway Brands reported first quarter results, with revenue in line with expectations and earnings exceeding expectations. The company reaffirmed its full-year Adjusted EBITDA guidance and increased its full-year earnings per share and cash generation outlook.
Key Takeaways
Topgolf Callaway Brands reported Q1 2024 revenue of $1.144 billion, which was in line with expectations. Net income was $7 million, and non-GAAP net income was $16 million, both exceeding expectations. The company reaffirmed its full-year Adjusted EBITDA guidance and increased its full-year earnings per share and cash generation outlook.
Q1 Revenue of $1.144 billion and Topgolf same venue sales of -7% – both in line with expectations.
Net Income of $7 million, Non-GAAP Net Income of $16 million and Adjusted EBITDA of $161 million – all ahead of expectations.
Company reaffirmed full year Adjusted EBITDA guidance and increased full year earnings per share and cash generation outlook.
Ai Smoke clubs achieved #1 U.S. market share in Driver, Fairway Woods and Irons and the new Chrome Tour golf balls drove record 11% market share in the premium ball category.
Topgolf Callaway
Topgolf Callaway
Topgolf Callaway Revenue by Segment
Topgolf Callaway Revenue by Geographic Location
Revenue by Segment
Topgolf Revenue
CapyFin.comGolf Equipment Revenue
CapyFin.comActive Lifestyle Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
The Company’s updated outlook reflects increased foreign currency headwinds, and higher levels of inventory at retail and softer market conditions in Europe negatively impacting the Jack Wolfskin business. Despite these headwinds, the Company is maintaining its Adjusted EBITDA outlook. The Company is also increasing its earnings per share expectations by $0.05 cents per share to reflect the repricing of its term loan, planned repayment of $50 million in term loan debt and improved cash flow.
Positive Outlook
- Company is maintaining its Adjusted EBITDA outlook.
- Company is increasing its earnings per share expectations by $0.05 cents per share to reflect the repricing of its term loan
- Company is increasing its earnings per share expectations to reflect planned repayment of $50 million in term loan debt
- Company is increasing its earnings per share expectations to reflect improved cash flow.
- Company expects Topgolf revenue of approximately $1,960 million for the full year.
Challenges Ahead
- Increased foreign currency headwinds.
- Higher levels of inventory at retail
- Softer market conditions in Europe negatively impacting the Jack Wolfskin business.
- Consolidated Net Revenues are expected to be $4,435 - $4,475 million compared to previous estimate of $4,515 - $4,555 million.
- Topgolf Same Venue Sales Growth is expected to be slightly positive to down low single digits compared to previous estimate of approximately Flat.
Revenue & Expenses
Visualization of income flow from segment revenue to net income