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Sep 30, 2021
Topgolf Callaway Q3 2021 Earnings Report
Callaway's third quarter performance highlighted significant growth and profitability, with all segments recovering faster than anticipated and delivering results ahead of plan.
Key Takeaways
Callaway Golf Company reported a consolidated net revenue increase of $381 million (+80%) to $856 million for Q3 2021. The company experienced a GAAP net loss of $(16) million, but a non-GAAP net income of $26 million. Adjusted EBITDA increased by $51 million (+57%) to $139 million.
Consolidated net revenue increased $381 million (+80%) to $856 million.
GAAP net loss of $(16) million and non-GAAP net income of $26 million.
Adjusted EBITDA increased $51 million (+57%) to $139 million.
Full year 2021 revenue guidance increased to $3,110 to $3,120 million and Adjusted EBITDA guidance to $424 to $430 million.
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.comRevenue by Geographic Location
United States Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
The company provided full year 2021 projections based on the best estimates at this time. Revenue is expected to be between $3,110 to $3,120 million and Adjusted EBITDA between $424 to $430 million.
Positive Outlook
- Full year 2021 net revenue estimate assumes Topgolf segment revenue for the 10 months beginning March 8, 2021 slightly above 2019 full year levels of $1,059 million
- Continued positive demand fundamentals for Callaway's Golf Equipment and Apparel, Gear and Other segments
- Improved supply in Golf Equipment in the fourth quarter
- Topgolf segment will deliver approximately $158 million in Adjusted EBITDA for the ten months beginning March 8, 2021
- Strong revenue flow-through
Challenges Ahead
- Ongoing impact of COVID-19 on the supply chain
- Changes in foreign currency effects, which are estimated to have a positive full year impact of $33 million on net sales
- Increased freight costs
- Callaway's reported full year financial results will only include approximately ten months of Topgolf results in 2021.
- January and February results which were in the aggregate $142.9 million in revenue and $2.3 million in Adjusted EBITDA will not be included
Revenue & Expenses
Visualization of income flow from segment revenue to net income