NYSE$COOK

Traeger Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Traeger's financial performance was announced for Q1 2023, with revenue declining but adjusted EBITDA exceeding expectations.

Traeger reported a decrease in total revenues by 31.5% to $153.2 million compared to the previous year. Net income was $8.0 million, or $0.07 per share, while adjusted EBITDA was $21.9 million, exceeding the high end of the guidance range. The company is reiterating its full year fiscal 2023 guidance.

  • Total revenues decreased by 31.5% to $153.2 million.
  • Gross profit margin decreased by 80 basis points to 36.2%.
  • Net income was $8.0 million, or $0.07 per share.
  • Adjusted EBITDA was $21.9 million, exceeding guidance.

Headline financials

Total Revenue

$153M

Previous: $224M-31.5%
EPS (adj)

$0.04

Previous: $0.17-76.5%
Gross Margin

36.2%

Previous: 37.4%-3.2%
Adjusted EBITDA

$21.9M

Previous: $30.9M-29.1%
Sales & Marketing

$22.1M

Previous: $33.1M-33.2%
G&A Expenses

$26.7M

Previous: $42.9M-37.8%
Capital Expenditures

-$2.08M

Previous: -$4.52M+54.0%
Free Cash Flow

$5.94M

Previous: -$13M+145.8%
Net Income

$8.02M

Previous: -$8.43M+195.1%
Operating Income

-$3.26M

Previous: -$2.99M-9.2%
Gross Profit

$55.4M

Previous: $83.6M-33.7%
Cash & Equivalents

$15.2M

Previous: $11.1M+37.2%
Total Assets

$938M

Previous: $1.27B-26.1%
Stock-Based Comp

$7.94M

Previous: $15.5M-48.7%

Revenue & EPS history

Traeger · Revenue · Quarterly

$153M

Q1 2023-31.5%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Traeger · $153M total across 3 segments · Q1 2023

  • Grills
    $89.7M-40.4%
  • Accessories
    $33.4M-0.6%
  • Consumables
    $30M-24.4%

Forward guidance

The Company is reiterating its prior guidance for Fiscal 2023. The Company's outlook reflects macroeconomic uncertainty and the expected negative impact of the continued normalization of grill channel inventory in the first half of 2023, as well as the benefit of expected growth in gross margin and ongoing expense control.

Tailwinds

  • Total revenue is expected to be between $560 million and $590 million
  • Gross margin is expected to be between 36% and 37%
  • Adjusted EBITDA is expected to be between $45 million and $55 million

Headwinds

  • Macroeconomic uncertainty
  • Normalization of grill channel inventory in the first half of 2023

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.0%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-6.6%

Avg return

30 days after

42%

10 / 24 earnings

Positive

+32.6%

Q2 2024

Best reaction

-20.6%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-9.3%-8.8%+36.6%
Q4 2025-20.3%-20.8%-20.3%
Q3 2025-12.5%-2.0%-21.1%
Q1 2025-2.7%-10.1%-6.8%
Q4 2024+0.9%-15.7%-31.0%
Q3 2024-0.6%-5.5%-4.3%
Q2 2024+32.6%+27.9%+61.4%
Q1 2024+4.3%+0.0%+8.7%
Q4 2023-8.5%-2.2%+4.0%
Q3 2023-20.6%-25.0%-24.0%
Q2 2023+32.1%+29.8%-1.8%
Q1 2023+28.8%+20.3%+46.3%
Q4 2022+13.0%+22.5%+13.9%
Q3 2022-17.0%+2.9%-22.9%
Q2 2022+11.3%+5.4%-6.5%
Q1 2021+30.2%+35.4%-1.6%
Q1 2022+4.1%+9.3%-14.6%
Q4 2019+4.4%+1.4%-12.6%
Q4 2021-15.8%-20.6%-29.8%
Q3 2020-16.0%-25.9%-34.9%
Q3 2021-16.0%-25.9%-34.9%
Q2 2020-9.7%-10.9%-21.7%
Q4 2020-9.7%-10.9%-21.7%
Q2 2021-4.0%-11.6%-20.0%
Q1 2020

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