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Dec 31, 2021
Topgolf Callaway Q4 2021 Earnings Report
Announced record fourth quarter and full year 2021 results, driven by Topgolf and apparel.
Key Takeaways
Callaway Golf Company reported a strong fourth quarter, driven by Topgolf's performance and momentum in apparel and golf equipment. Consolidated net revenue increased by 90% compared to Q4 2020, reaching $712 million. However, the company experienced a GAAP net loss of $26 million and a non-GAAP net loss of $35 million for the quarter.
Net revenue increased 90%, driven by Topgolf and Apparel, Gear and Other segment.
Non-GAAP loss per share was ($0.19) in the fourth quarter of 2021, compared to a loss of ($0.33) per share in 2020.
Fourth quarter 2021 Adjusted EBITDA increased $27 million, driven by a $46 million contribution from the Topgolf business, partially offset by lower adjusted EBITDA in the golf equipment and apparel businesses.
Same venue sales surpassed expectations in the quarter, increasing 6% compared to the 2019 level and generating strong flow-through to Adjusted EBITDA.
Topgolf Callaway
Topgolf Callaway
Topgolf Callaway Revenue by Geographic Location
Revenue 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 2022 revenue outlook of $3,780 million to $3,820 million and Adjusted EBITDA guidance of $490 million to $515 million.
Positive Outlook
- Full year 2022 net revenue estimate assumes Topgolf segment revenue of approximately $1.5 billion for the twelve months ended December 31, 2022
- Continued positive demand fundamentals for Callaway's Golf Equipment
- Continued positive demand fundamentals for Apparel, Gear and Other segments.
- Full year 2022 Adjusted EBITDA estimate assumes the Topgolf segment will deliver $210 - $220 million in Adjusted EBITDA for the twelve months ended December 31, 2022.
- Net Revenue: Full year 2022 net revenue estimate assumes Topgolf segment revenue of approximately $1.5 billion for the twelve months ended December 31, 2022, as well as continued positive demand fundamentals for Callaway's Golf Equipment and Apparel, Gear and Other segments.
Challenges Ahead
- Ongoing impact of COVID-19 on the supply chain
- Ongoing impact of COVID-19 on staffing levels at our Topgolf venues
- Changes in foreign currency effects, which are estimated to have a negative full year impact of $54 million on net sales
- Changes in foreign currency effects, which are estimated to have a negative full year impact of $38 million on pretax income
- Increased freight costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income