Logitech International S.a. · SIX:LOGN
Logitech International — Q1 2024 Earnings Presentation
22 slides from Logitech International's earnings presentation, Jul 25, 2023
Slide 1: Q1 Fiscal Year 2024 Financial Results
Q1 Fiscal Year 2024 Financial Results July 24, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the U.S. A detailed discussion of these and other risks and uncertainties that could cause actual federal securities laws, including, without limitation, statements regarding our preliminary result
Slide 3: What's new from Logitech
What’s new from Logitech.
Slide 4: Video Collaboration
Video Collaboration Rally Bar Huddle and Sight AI Camera Logitech announced the release of Rally Bar Huddle, a premium all-in-one appliance-based video bar for huddle and small rooms, and the newest addition to Logitech’s family of conference cameras. Designed to deliver equitable video conferencing
Slide 5: Personal Workspace Solutions
Personal Workspace Solutions MX Keys S Combo, MX Keys S, and MX Anywhere 3S Logitech announced MX Keys S Combo, MX Keys S, and MX Anywhere 3S, the latest additions to the premium Master Series designed for advanced users, such as software developers and creative professionals. MX Keys S Combo featur
Slide 6: Gaming
Gaming Logitech G PRO X 2 LIGHTSPEED Logitech G announced the release of the ultimate esports headset - the new Logitech G PRO X 2 LIGHTSPEED Wireless Gaming Headset. Designed and tested with top esports athletes, the new PRO X 2 headset features all new, revolutionary PRO-G GRAPHENE Audio Drivers,
Slide 7: Design
Design Red Dot Design Team of the Year 2023 Logitech was awarded the coveted Red Dot Design Team of the Year 2023 award. Each year, Red Dot recognizes a team that has been consistently innovative with outstanding achievements in the area of product design and sustainable design policy. Logitech’s pr
Slide 8: Key Messages - Q1'24
Key Messages - Q1’24 Q1’24 net sales were $974M, down 15% (CC) versus Q1’23 Non-GAAP operating income was $109M, down 25% but up sequentially from $960M. We grew market share in versus Q1’23 but up $27M sequentially, reflecting lower keyboards, pointing devices, webcams, tablet keyboards demand and
Slide 9: Q1'24 Non-GAAP Results
Q1’24 NON-GAAP RESULTS Q1’24 Q1’23 Y/Y Net sales down 15% (CC) to $974M Net sales 974 1,160 (16%) Non-GAAP gross margin was 39.0%, down Y/Y % chg (16%) (12%) 100 bps year-over-year, driven by foreign Y/Y % chg (CC) (15%) (9%) exchange pressure and unfavorable product mix, partially offset by cost No
Slide 10: Updated Product Categories
UPDATED PRODUCT CATEGORIES Changes to Category Primary Products Included in Current Category Updated Categories Gaming headsets, keyboards, mice, speakers, wheels; Gaming Added Blue Microphone, Lights, Mevo Streamlabs, Blue microphone, Lights, Mevo Keyboards & Combos No change Keyboards, Keyboard/Mo
Slide 11: Revenue by Product Category
REVENUE BY PRODUCT CATEGORY Q1’24 Q1’23 Y/Y Y/Y (CC) Gaming declined in the quarter, primarily driven by declines in Simulation, but we grew Gaming1 266 298 (11%) (9%) market share in gaming headsets3 Keyboards & Combos 181 228 (21%) (20%) Pointing Devices 174 183 (5%) (3%) Keyboards and Combos and
Slide 12: Revenue and Sell-Through by Region
REVENUE AND SELL-THROUGH BY REGION Y/Y Y/Y Sell-Through Q1’24 Q1’23 (CC) (US$) (US$)2 Net sales1 974 1,160 (15%) (16%) (13%) Americas 445 502 (11%) (11%) (16%) In Q1’24, channel inventories were Asia Pacific 270 367 (24%) (26%) (10%) reduced sequentially and are in line EMEA 259 290 (11%) (11%) (13%
Slide 13: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN Non-GAAP gross margin was 39.0%, down versus Q1’23 but up 270 bps sequentially Quarter-over-quarter improvement was better than anticipated, as a significant reduction in our on hand inventory drove reserves lower Year-over-year declines were due to foreign exchange pressure an
Slide 14: Non-GAAP Operating Expenses
NON-GAAP OPERATING EXPENSES Q1’24 Q1’23 Y/Y We reduced non-GAAP operating Non-GAAP Operating Expenses 271 319 (15%) expenses by 15%, in line with revenue declines % of sales 27.8% 27.5% 30 bps Sales & Marketing 169 220 (23%) Reductions in non-GAAP operating expenses were primarily driven by a % of s
Slide 15: Cash Balance, Cash Flow and Inventory
CASH BALANCE, CASH FLOW AND INVENTORY Q1’24 Q1’23 Q/Q Y/Y Cash from operations was $240 in the quarter, and our ending cash balance was more than Cash from operations 240 (36) 23 275 $1.2B, driven by strong collections and owned Ending cash balance 1,251 1,107 102 144 inventory reductions of $111M I
Slide 16: FY'24 Outlook
FY’24 OUTLOOK FY’24 Outlook Previous 1H’24 Outlook New 1H’24 Outlook FY’24 Outlook Net sales $1.8B - $1.9B $1.875B - $1.975B $3.8B - $4.0B Net sales decline (USD, Y/Y) 22% - 18% 19% - 14% 16% - 12% Non-GAAP operating income $160M - $190M $180M - $220M $400M - $500M Non-GAAP op. inc. decline (Y/Y) 47
Slide 17: Appendix
APPENDIX
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 18
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 19
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS (A) 20
Slide 21: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES * Note: These preliminary results for the three months ended June 30, 2023 are subject to adjustments, including subsequent events that may occur through the date of filing our Quarterly Report on Form 10-Q. (A) Non-GAAP Financial Measures To supplement our cond
Slide 22: Sell-Through Data
SELL-THROUGH DATA ● Measures sales of our products by retailer customers to consumers ● Data is subject to limitations and possible error sources and may and by our distributor customers to their customers not be an entirely accurate indicator of actual consumer demand ● Compiled by Logitech from da
Logitech International — Q1 2024 Earnings Presentation on 6ix