Logitech International S.a. · SIX:LOGN
Logitech International — Q4 FY2023 Earnings Presentation
24 slides from Logitech International's earnings presentation, May 2, 2023
Slide 1: Q4 and Fiscal Year 2023 Financial Results
Q4 and Fiscal Year 2023 Financial Results May 2, 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation, statements regarding our preliminary financial results for the three months and fiscal year ended March 31, 2023, and first half of
Slide 3: What's New From Logitech?
What’s New From Logitech? |
Slide 4: Personal Workspace: Brio Series Webcams
PERSONAL WORKSPACE MADE WITH RECYCLED PLASTIC Brio 300 Series Webcams Logitech unveiled its Brio 300 series, a line of compact, plug-and-play webcams with Full-HD 1080p resolution, auto light correction and a noise-reducing mic, for more natural and productive video call experiences at an attractive
Slide 5: Education: Zone Learn
EDUCATION Zone Learn Logitech announced the launch of Zone Learn, wired headsets designed for K-12 learners. Logitech worked hand-in-hand with educators and students — from concept to final prototype — to build an education-first product. Zone Learn features comfort optimized for younger learners wi
Slide 6: Sustainability
SUSTAINABILITY Logitech has been recognized as a Supplier Engagement Leader by CDP. CDP is a global nonprofit that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. CDP’s Supplier Engagement Leaderboard and annual assessment
Slide 7: Financial Results
FINANCIAL RESULTS 7
Slide 8: Key Messages – Q4'23
KEY MESSAGES – Q4’23 Q4’23 net sales declined 20% (CC) to $960M, as the industry continued to navigate a challenging macro environment with low visibility, resulting in broad based, aggressive cost reductions and delayed project investments. Operating expenses were down 22% in the quarter, in line w
Slide 9: Key Messages – Fiscal Year 2023
KEY MESSAGES – FISCAL YEAR 2023 FY’23 net sales declined 13% (CC) to $4.5B. A challenging macroeconomic environment, geopolitical conflict and soft demand from both consumers and enterprises, pressured results throughout our portfolio. In response to a challenging year for net sales, we focused on r
Slide 10: Annual Net Sales by Category
ANNUAL NET SALES BY CATEGORY FY’21 net sales grew nearly 75% year-over-year due to unprecedented demand driven by the pandemic Challenging FY’23, driven by macroeconomic uncertainty, low overall visibility into markets, and weakened consumer and enterprise demand Categories in which we are primarily
Slide 11: Q4 and FY'23 Results
Q4 AND FY’23 RESULTS Q4’23 vs. Q4’22 FY’23 vs. FY’22 Q4 net sales down 20% (CC) year-over-year to Net sales 960 (270) 4,539 (942) $960M, and down 13% for FY’23, driven by soft Y/Y % chg (22%) (17%) demand from both consumers and enterprises Y/Y % chg (CC) (20%) (13%) Q4 gross margin was 36.3%, and F
Slide 12: Revenue by Product Category
REVENUE BY PRODUCT CATEGORY Q4’23 Y/Y Y/Y (CC) FY’23 Y/Y Y/Y (CC) While the Gaming market has softened, we grew market share in mice, headsets and wheels in the quarter3 Gaming1 239 (77) (22%) 1,211 (240) (12%) Keyboards & Combos 188 (43) (17%) 836 (131) (10%) Premium keyboards and pointing devices
Slide 13: Revenue and Sell-Through by Region
REVENUE AND SELL-THROUGH BY REGION Q4 FY’23 Q4’23 Q4’22 Y/Y Y/Y Sell-through2 While demand softness has impacted all regions, our (CC) (CC) (US$) (US$) global, diversified customer base provides a hedge Americas (17%) 423 489 (14%) (14%) (13%) against regional economic or geopolitical disruptions EM
Slide 14: Gross Margin
GROSS MARGIN Q4 gross margin was 36.3%, down versus Q4’22. due to unfavorable currency movements, inflation, and unfavorable mix, partially offset by less reliance on expedited shipping and favorable logistics rates, and pricing actions FY’23 gross margin was 38.3%, down versus FY’22, driven primari
Slide 15: Operating Expenses
OPERATING EXPENSES Q4’23 Y/Y FY’23 Y/Y We reduced operating expenses over the year to Sales & marketing 172 (28%) 774 (22%) protect our operating margins, while continuing to invest in our product innovation initiatives and % of sales 17.9% (149) bps 17.1% (96) bps enterprise selling capabilities Re
Slide 16: Cash Balance, Cash Flow and Inventory
CASH BALANCE, CASH FLOW AND INVENTORY Q4’23 Q4’22 Q/Q Y/Y Cash from operations 217 100 (63) 117 Ending cash balance more than $1.1B, driven by strong Ending cash balance 1,149 1,329 113 (180) cash from operations in Q4, up $117M Inventory 683 933 (115) (250) FY’23 cash flow from operations is up $23
Slide 17: 1H FY'24 Outlook
1H FY’24 OUTLOOK 1H FY’24 OUTLOOK Revenue $1.8B - $1.9B Revenue decline (USD, Y/Y) 22% - 18% Non-GAAP operating income $160M - $190M ADDITIONAL ASSUMPTIONS Non-GAAP effective tax rate Approximately 13% Cash from operations Approximately 1x non-GAAP operating income Capex Approximately $90M Note: See
Slide 18: Appendix
APPENDIX 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 20
Slide 21: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 21
Slide 22: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three months and fiscal year ended March 31, 2023 are subject to adjustments, including subsequent events that may occur through the date of filing our Annual Report on Form 10-K. (A) Non-GAAP Financial Measures To supplem
Slide 23: Sell-Through Data
SELL-THROUGH DATA • Measures sales of our products by retailer customers to • Data is subject to limitations and possible error sources and may not be consumers and by our distributor customers to their customers an entirely accurate indicator of actual consumer demand for our products. Limitations
Slide 24: Logitech
logitech
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