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Dec 31, 2023
Topgolf Callaway Q4 2023 Earnings Report
Announced fourth quarter and full-year 2023 results, highlighted by revenue growth in all operating segments and significant Adjusted EBITDA increase.
Key Takeaways
Topgolf Callaway Brands reported a 5.4% increase in net revenues for Q4 2023, driven by growth across all operating segments. The company's Adjusted EBITDA nearly doubled, and it achieved positive free cash flow on both a consolidated basis and at Topgolf.
Consolidated revenue grew by over 5% with growth in each operating segment.
Adjusted EBITDA almost doubled due to revenue growth and improved operational efficiencies at Topgolf.
Topgolf Same Venue Sales outperformed expectations in Q4 due to a stronger-than-anticipated holiday season.
Golf Equipment maintained the #1 U.S. market share for total clubs, woods, drivers, fairway woods, hybrids, and irons.
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 2024 outlook reflects a potentially softer consumer environment in 2024 and approximately $20 million in pre-tax income headwinds related to foreign currency. Despite these headwinds, the Company expects growth in revenue, Adjusted EBITDA and Embedded Cash Flow given the strength of its three operating segments and the momentum the Company has entering 2024, including the strength of the Company's new golf equipment product line.
Positive Outlook
- Further growth in revenue
- Growth in Adjusted EBITDA
- Continued solid cash flow generation
- Strength of the company's new golf equipment product line
- Strength of its three operating segments
Challenges Ahead
- Potentially softer consumer environment in 2024
- Approximately $20 million in pre-tax income headwinds related to foreign currency
- Unfavorable year-over-year foreign currency impact on revenue
- Unfavorable foreign currency impact on profit translation
- Minimal hedge gains
Revenue & Expenses
Visualization of income flow from segment revenue to net income