•
Jun 30, 2023

Topgolf Callaway Q2 2023 Earnings Report

Topgolf Callaway Brands' Q2 2023 results were announced, showing revenue growth and reaffirming full-year guidance.

Key Takeaways

Topgolf Callaway Brands Corp. reported strong Q2 results with net revenues growing by 5.7% and Topgolf's revenue increasing by 16.6%. The company reaffirms its full year 2023 revenue and Adjusted EBITDA guidance and remains on track to be free cash flow positive in 2023.

Company delivered strong Q2 results consistent with expectations and reaffirms full year 2023 revenue and Adjusted EBITDA guidance

Topgolf delivered same venue sales growth within the guidance range, marking the seventh consecutive quarter of growth

Topgolf opened 2 new venues in the U.S. and remains on plan to open 11 venues in 2023

Golf Equipment performed well in the quarter with strong market share gains

Total Revenue
$1.18B
Previous year: $1.12B
+5.7%
EPS
$0.39
Previous year: $0.47
-17.0%
Gross Profit
$740M
Previous year: $667M
+11.1%
Cash and Equivalents
$192M
Previous year: $178M
+7.6%
Free Cash Flow
-$10.9M
Previous year: $18.5M
-158.9%
Total Assets
$8.96B
Previous year: $8.16B
+9.9%

Topgolf Callaway

Topgolf Callaway

Topgolf Callaway Revenue by Segment

Topgolf Callaway Revenue by Geographic Location

Forward Guidance

The 2023 projections are based on the Company’s best estimates at this time. The company provided full year and Q3 outlooks.

Positive Outlook

  • Consolidated Net Revenues $4.42 - $4.47 billion
  • Topgolf Revenue Approximately $1.9 billion
  • Topgolf Same Venue Sales Growth Mid-to-High Single Digit %
  • Consolidated Adjusted EBITDA $625 - $640
  • Topgolf Adjusted EBITDA $315 - $325

Challenges Ahead

  • Consolidated Net Revenues $1,050 - $1,075 million
  • Consolidated Adjusted EBITDA $141 - $154 million
  • Topgolf expected to deliver same venue sales growth of 1% to 3% year-over-year, which would represent 12% to 14% same venue sales growth on a two-year stack basis

Revenue & Expenses

Visualization of income flow from segment revenue to net income