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Sep 30, 2022

Topgolf Callaway Q3 2022 Earnings Report

Topgolf Callaway Brands Corp. announced record third quarter results, driven by strength across all segments and raised full year guidance.

Key Takeaways

Topgolf Callaway Brands Corp. reported a 15.4% increase in consolidated net revenues to $988.5 million for Q3 2022. GAAP net income increased by 340.6% to $38.5 million, and Adjusted EBITDA increased by 4.0% to $144.4 million.

Net revenues increased by 15.4%, or 21.3% on a constant currency basis, compared to Q3 2021.

GAAP net income increased by 340.6% compared to Q3 2021.

Adjusted EBITDA increased by 4.0%, or 22.7% on a constant currency basis, compared to Q3 2021.

Full year 2022 revenue outlook increased to $3,965 million - $3,985 million and Adjusted EBITDA outlook to $560 million - $570 million.

Total Revenue
$989M
Previous year: $856M
+15.4%
EPS
$0.23
Previous year: $0.14
+64.3%
Gross Profit
$610M
Previous year: $528M
+15.4%
Cash and Equivalents
$200M
Previous year: $508M
-60.6%
Free Cash Flow
-$27.7M
Previous year: $68.3M
-140.6%
Total Assets
$8.22B
Previous year: $7.4B
+11.1%

Topgolf Callaway

Topgolf Callaway

Topgolf Callaway Revenue by Segment

Topgolf Callaway Revenue by Geographic Location

Forward Guidance

The Company expects net revenues to grow approximately 10% year-over-year (13% constant currency) for full year 2023, including approximately $110 million of negative foreign currency translation impacts. The Company also expects to deliver approximately $600 million in Adjusted EBITDA, which includes a $65 million translation impact based on foreign currency exchange rates as of late October 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income