NYSE$CALY

Callaway Golf Company · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced fourth quarter and full-year 2023 results, highlighted by revenue growth in all operating segments and significant Adjusted EBITDA increase.

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.

Headline financials

Total Revenue

$897M

Previous: $851M+5.4%
EPS (adj)

-$0.30

Previous: -$0.27-11.1%
Non-GAAP Adjusted EBITDA

$69.8M

No prior period
Total Segment Operating Income

$23.4M

No prior period
Inventory

$794M

No prior period
Capital Expenditures

-$93.3M

Previous: $179M-152.2%
Net Income

-$77.1M

Previous: -$72.7M-6.1%
Operating Income

-$32.6M

Previous: -$34.7M+6.1%
Gross Profit

$588M

Previous: $546M+7.7%
R&D Expense

$34.2M

No prior period
Stock-Based Comp

$8.3M

Previous: $9.6M-13.5%

Revenue & EPS history

Topgolf Callaway · Revenue · Quarterly

$897M

Q4 2023+5.4%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Topgolf Callaway · $1.04B total across 3 segments · Q3 2023

  • Topgolf
    $448M+8.2%
  • Active Lifestyle
    $300M+7.7%
  • Golf Equipment
    $293M-1.1%

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.

Tailwinds

  • 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

Headwinds

  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-0.1%

Avg return

Earnings day

-1.6%

Avg return

5 days after

+1.5%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+18.7%

Q3 2013

Best reaction

-20.8%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+6.3%+0.1%
Q3 2025+14.4%+14.3%+24.2%
Q1 2025-17.2%-11.4%+0.0%
Q4 2024-0.3%-2.5%+3.0%
Q3 2024-11.3%-11.6%-17.1%
Q2 2024-14.5%-18.4%-27.1%
Q1 2024-8.2%-8.0%-7.6%
Q4 2023+5.6%+3.6%-6.3%
Q3 2023-20.8%-22.9%-1.6%
Q2 2023-9.8%-10.6%-12.6%
Q1 2023-13.9%-20.9%-11.4%
Q4 2022-4.0%-1.1%-6.6%
Q3 2022+5.5%+6.2%+23.6%
Q2 2022-2.0%-5.9%-5.8%
Q1 2022+8.1%+18.2%+22.2%
Q4 2021-9.6%-1.7%-10.9%
Q3 2021+2.0%+0.7%-2.9%
Q2 2021-4.2%-11.4%-16.7%
Q1 2021+8.9%+8.6%+14.9%
Q4 2020-2.3%-4.7%-1.6%
Q3 2020+5.5%-2.3%+34.6%
Q2 2020-6.9%-5.7%+2.9%
Q1 2020+2.8%-9.2%+28.4%
Q4 2019-6.7%-3.7%-38.3%
Q3 2019-1.5%-3.5%+1.2%
Q2 2019+10.6%+8.3%+5.3%
Q1 2019-5.2%-5.2%-6.9%
Q4 2018-4.2%-6.6%+3.6%
Q3 2018-2.5%-4.4%-12.3%
Q2 2018+13.1%+13.3%+18.7%
Q1 2018+7.5%+3.2%+13.8%
Q4 2017+3.6%+4.4%+8.8%
Q3 2017+3.4%+1.0%+0.1%
Q2 2017+7.1%+3.5%+9.2%
Q1 2017+7.7%+6.6%+7.8%
Q4 2016-8.4%-7.7%-7.5%
Q3 2016+11.5%+16.0%+18.1%
Q2 2016+0.1%+2.5%+9.3%
Q1 2016-0.6%
Q4 2015+4.6%
Q3 2015+7.5%
Q2 2015+8.0%
Q1 2015+0.6%
Q4 2014+4.9%
Q3 2014+12.1%
Q2 2014-8.5%
Q1 2014-7.7%
Q4 2013-6.4%
Q3 2013+18.7%
Q2 2013+6.1%
Q1 2013+3.7%
Q4 2012+0.2%
Q3 2012-7.6%
Q2 2012+3.7%
Q1 2011-12.2%
Q1 2012+5.5%
Q4 2009-0.3%
Q4 2011-0.3%
Q3 2011+2.0%
Q3 2010+2.0%
Q4 2010-1.4%
Q2 2011-1.4%
Q2 2010-1.4%
Q1 2010+0.6%

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