NYSE$COOK

Traeger Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Traeger's Q4 2023 results showed revenue growth and improved gross margin, exceeding expectations and prior guidance.

Traeger reported an 18.3% increase in total revenues for Q4 2023, reaching $163.5 million. Gross margin improved to 36.8%, and adjusted EBITDA rose by 82% to $13.0 million. The company exceeded its prior full-year revenue guidance.

  • Total revenues increased by 18.3% to $163.5 million.
  • Gross margin improved by 230 basis points to 36.8%.
  • Adjusted EBITDA increased by 82% to $13.0 million.
  • The company exceeded prior guidance for Fiscal Year 2023.

Headline financials

Total Revenue

$163M

Previous: $138M+18.3%
EPS (adj)

-$0.08

Previous: -$0.07-14.3%
Gross Margin

36.8%

Previous: 34.5%+6.7%
Adjusted EBITDA

$13M

Previous: $7.1M+83.1%
Sales & Marketing

$32.8M

Previous: $28.3M+16.0%
G&A Expenses

$25.9M

Previous: $24.2M+7.1%
Capital Expenditures

-$4.36M

Previous: $3.27M-233.2%
Net Income

-$24M

Previous: -$28.9M+17.0%
Operating Income

-$11.7M

Previous: -$21.3M+45.0%
Gross Profit

$60.1M

Previous: $47.6M+26.3%
Stock-Based Comp

$6.02M

Previous: $7.01M-14.1%

Revenue & EPS history

Traeger · Revenue · Quarterly

$163M

Q4 2023+18.3%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Traeger · $118M total across 3 segments · Q3 2023

  • Grills
    $56.6M+45.1%
  • Accessories
    $35.8M+20.9%
  • Consumables
    $25.4M+0.8%

Forward guidance

Traeger anticipates continued softness in grill industry demand in 2024 but expects significant improvement in gross margin.

Tailwinds

  • Total revenue is expected to be between $580 million and $605 million for full year fiscal 2024.
  • Gross margin is expected to be between 39% and 40% for full year fiscal 2024.
  • Adjusted EBITDA is expected to be between $62 million and $71 million for full year fiscal 2024.
  • Total revenue is expected to be between $140 million and $145 million for first quarter 2024.
  • Adjusted EBITDA is expected to be between $21 million and $24 million for first quarter 2024.

Headwinds

  • The company's outlook reflects its expectation for continued softness in grill industry demand in 2024.
  • Cannot provide a reconciliation of Adjusted EBITDA guidance to Net Loss on a forward-looking basis without unreasonable efforts.
  • Consumer demand for grills will remain soft in 2024.
  • Focus will be on strategic growth pillars and executing against plan to drive household penetration.
  • No other specific negative guidance was provided.

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 2023

Historical avgQ4 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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