SharkNinja (SN) Q4 2023 earnings summary

Executive summary

• FY23 net sales rose 14.4% to $4.254B; Adjusted EBITDA increased 38.5% to $719.7M, while GAAP net income declined 28.1% to $167.1M.

• Growth was led by Cooking and Beverage Appliances and Other; Cleaning Appliances declined amid North American vacuum softness.

Financial highlights

• Q4 net sales increased 16.5% to $1,377.5M; Adjusted Net Sales rose 19.7% to $1,377.5M, or 17.9% on a constant-currency basis.

• Q4 gross profit rose 47.1% to $622.9M; adjusted gross profit increased 50.4% to $652.7M.

• Q4 operating income increased 87.3% to $100.8M; Adjusted Operating Income rose 74.6% to $200.2M.

• FY23 operating income increased 16.2% to $373.6M; Adjusted Operating Income rose 40.9% to $638.3M.

• FY23 Adjusted Net Income rose 36.0% to $449.3M; Adjusted EBITDA increased 38.5% to $719.7M.

Outlook and guidance

• FY24 net sales growth expected at 5.0%–7.0%; Adjusted Net Sales growth expected at 7.0%–9.0%.

• FY24 Adjusted Net Income per diluted share expected at $3.45–$3.61, up 7%–12%; Adjusted EBITDA projected at $800M–$830M, up 11%–15%.

• FY24 GAAP effective tax rate expected at 24%–25%; diluted weighted average shares approximately 141M.

• FY24 capital expenditures forecast at $120M–$140M, primarily for product launches and technology investments.