NYSE$COOK

Traeger Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Traeger's Q4 2022 financial results were announced, revealing a decrease in total revenues but exceeding annual guidance for sales and Adjusted EBITDA.

Traeger reported a 21.0% decrease in total revenues for Q4 2022, amounting to $138.1 million. Despite the revenue decline, the company exceeded its annual guidance for both sales and Adjusted EBITDA. Gross margin was 34.5%, and the adjusted EBITDA was $7.1 million.

  • Total revenues decreased by 21.0% to $138.1 million.
  • Gross margin was 34.5%, or 34.9% excluding restructuring costs.
  • Net loss was $28.9 million, with a net loss per share of $0.24.
  • Adjusted EBITDA reached $7.1 million.

Headline financials

Total Revenue

$138M

Previous: $175M-21.0%
EPS (adj)

-$0.07

Previous: $0.03-333.3%
Gross Margin

34.5%

Previous: 37.4%-7.8%
Adjusted EBITDA

$7.1M

Previous: $13.8M-48.6%
Sales & Marketing

$28.3M

Previous: $38.5M-26.5%
G&A Expenses

$24.2M

Previous: $44.4M-45.5%
Capital Expenditures

$3.27M

Previous: $4.49M-27.2%
Free Cash Flow

$7.83M

Previous: -$32.1M+124.4%
Net Income

-$28.9M

Previous: -$33.7M+14.2%
Operating Income

-$21.3M

Previous: -$27.3M+22.0%
Gross Profit

$47.6M

Previous: $65.5M-27.3%
Cash & Equivalents

$39.1M

Previous: $16.7M+133.3%
Total Assets

$947M

Previous: $1.18B-19.6%
Stock-Based Comp

$7.01M

Previous: $19.4M-63.9%

Revenue & EPS history

Traeger · Revenue · Quarterly

$138M

Q4 2022-21%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Traeger · $138M total across 3 segments · Q4 2022

  • Accessories
    $65.4M+36.0%
  • Grills
    $48.3M-52.0%
  • Consumables
    $24.4M-6.5%

Forward guidance

Traeger anticipates total revenue between $560 million and $590 million, gross margin between 36% and 37%, and adjusted EBITDA between $45 million and $55 million for the full year fiscal 2023. For the first quarter of 2023, the company expects total revenue between $145 million and $155 million and adjusted EBITDA between $16 million and $20 million.

Tailwinds

  • Improved gross margins are expected.
  • Ongoing expense control is anticipated.
  • The company expects to return to topline growth in the second half of the year.
  • Channel inventories are expected to normalize more fully.
  • Traeger moves into 2023 as a more efficient and agile business.

Headwinds

  • Macroeconomic uncertainty persists.
  • Continued normalization of grill channel inventory is expected to negatively impact the first half of 2023.
  • Grills revenues decreased 52.0% to $48.3 million
  • Consumables revenues decreased 6.5% to $24.4 million
  • North America revenues decreased 21.9% compared to the prior year.

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 Q4 2022

Historical avgQ4 2022

-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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