SharkNinja (SN) Q3 2024 earnings summary

Executive summary

• Q3 net sales rose 33.2% to $1,426.6M; adjusted net sales increased 34.9%, and adjusted EBITDA grew 25.7% to $262.4M.

• Adjusted gross margin expanded 160 bps to 49.4%, while adjusted EBITDA margin declined 130 bps to 18.4%.

• Innovation, consumer insights, and international expansion drove growth across all four major product categories.

• FY2024 guidance was raised across net sales, adjusted net sales, adjusted EBITDA, and adjusted EPS.

Financial highlights

• Adjusted gross profit increased 39.4% to $705M; adjusted operating income grew 25.0% to $237.5M.

• Net income rose 606.8% to $132.3M; adjusted net income increased 28.2% to $170.5M, or $1.21 per diluted share.

• Nine-month adjusted net sales grew 33.7% to $3,741.5M; adjusted EBITDA rose 32.0% to $660.6M.

• Q3 gross margin was 48.7%; adjusted gross margin was 49.4%.

Outlook and guidance

• FY2024 net sales growth guidance rose to 25–26% from 20–22%; adjusted net sales growth guidance rose to 27–28% from 22–24%.

• Adjusted EBITDA guidance increased to $925–$945M, representing 29–31% growth; adjusted EPS guidance rose to $4.13–$4.24, representing 28–32% growth.

• Capital expenditure guidance is $160–$180M, focused on product launches, technology, and sourcing diversification.

• 2025 planning is prudent amid macro uncertainty, with more detailed guidance expected with Q4 results.