Slide 1: Q2 Fiscal Year 2024 Financial Results
Q2 Fiscal Year 2024 Financial Results October 23, 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: Logitech G
Logitech G Logitech G PRO X TKL LIGHTSPEED Gaming Keyboard Logitech G PRO X SUPERLIGHT 2 Gaming Mouse Logitech G introduced the two newest products in the award-winning PRO Series line, the Logitech G PRO X TKL LIGHTSPEED Gaming Keyboard and Logitech G PRO X SUPERLIGHT 2 Gaming Mouse. Over the past
Slide 5: Logitech G
Logitech G Logitech G Yeti GX Microphone Logitech G Yeti Orb Microphone Logitech G Litra Beam LX Light Logitech G released three new products for the gaming and streaming space, the Logitech G Yeti GX microphone, Logitech G Yeti Orb microphone, and the Logitech G Litra Beam LX light. The new Yeti mi
Slide 6: Logitech CASA Pop-Up Desk
Logitech CASA Pop-Up Desk Hybrid work brings many opportunities for innovation to address the different needs people face, including limited space, flexibility, and improved comfort. Casa Pop-Up Desk, a compact, all-in-one, ergonomic desk setup comprised of a wireless keyboard and intuitive touchpad
Slide 7: Sustainability
Sustainability Fiscal Year 2023 Impact Report Logitech’s Fiscal Year 2023 Impact Report details the Company’s progress toward its sustainability commitments. Logitech is dedicated to removing more carbon than it produces, aiming to achieve climate positive by 2030. Since 2019, Logitech has reduced S
Slide 8: Key Messages - Q2'24
Key Messages - Q2’24 Q2’24 net sales were $1,057M, down 9% (CC) versus Q2’23 Non-GAAP operating income was $183M, up 17% versus but up sequentially from $974M. We grew market share in Q2’23, reflecting gross margin expansion. Keyboards & Combos, Pointing Devices and Webcams in Cash flow from operati
Slide 9: Q2'24 Non-GAAP Results
Q2’24 NON-GAAP RESULTS Net sales down 9% (CC) to $1,057M, but $M Q2’24 Q2’23 Y/Y remained the #1 market share leader in Net sales 1,057 1,149 (8%) Personal Workspace, PC Gaming and Video Y/Y % chg (8%) (12%) Conferencing Y/Y % chg (CC) (9%) (7%) Non-GAAP gross margin was 42.0%, up 340 bps Non-GAAP g
Slide 10: Revenue by Product Category
REVENUE BY PRODUCT CATEGORY $M Q2’24 Q2’23 Y/Y Y/Y (CC) Gaming declined in the quarter, primarily driven by declines in PC Gaming and Simulation, Gaming1 282 322 (12%) (12%) although both categories grew revenue Keyboards & Combos 195 201 (3%) (4%) sequentially Pointing Devices 192 185 3% 3% Keyboar
Slide 11: Revenue and Sell-Through by Region
REVENUE AND SELL-THROUGH BY REGION Y/Y Y/Y Sell-Through In Q2’24, channel inventories were Q2’24 Q2’23 (CC) (US$) (US$)2 reduced modestly quarter-over-quarter Net sales1 1,057 1,149 (9%) (8%) (8%) Net sales declined less than gross Americas 462 492 (6%) (6%) (9%) sell-through due to reduced promotio
Slide 12: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN Non-GAAP gross margin was 42.0%, up 340 bps versus Q2’23, and up 300 bps sequentially Year-over-year increases were driven by cost improvement and less reliance on expedite shipping, as well as lower promotions, partially offset by unfavorable product mix Quarter-over-quarter i
Slide 13: Non-GAAP Operating Expenses
NON-GAAP OPERATING EXPENSES Q2’24 Q2’23 Y/Y We reduced non-GAAP operating Non-GAAP Operating Expenses 261 287 (9%) expenses by 9%, in line with revenue declines % of sales 24.7% 25.0% (30 bps) Sales & Marketing 167 195 (14%) Reductions in non-GAAP operating expenses were primarily driven by a % of s
Slide 14: Cash Balance, Cash Flow and Inventory
CASH BALANCE, CASH FLOW AND INVENTORY $M Q2’24 Q2’23 Q/Q Y/Y Cash from operations was $223M in the quarter, and our ending cash balance was Cash from operations 223 73 (17) 150 nearly $1.2B, driven by better inventory Ending cash balance 1,164 869 (87) 295 management and higher operating income Inve
Slide 15: FY'24 Outlook
FY’24 OUTLOOK FY’24 Outlook Previous FY’24 New 1H’24 Outlook 1H’24 Results Outlook FY’24 Outlook Net sales $1.875B - $1.975B $2.032B $3.8B - $4.0B $4.0B- $4.15B Net sales decline (USD, Y/Y) 19% - 14% 12% 16% - 12% 12%-9% Non-GAAP operating income $180M - $220M $292M $400M - $500M $525M-$575M Non-GAA
Slide 16: Appendix
APPENDIX
Slide 17: Updated Product Categories
UPDATED PRODUCT CATEGORIES1 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/M
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 September 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
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