Traeger, Inc. revenues increased 18.3 percent to $163.5 million in the 2023 fourth quarter, compared to $138.1 million in the 2022 fourth quarter.

  • Grills revenue increased 23.9 percent to $59.9 million in Q4, compared to $48.3 million in the 2022 fourth quarter. The increase was driven by higher unit volumes, partially offset by a decrease in average selling price due to strategic pricing actions.
  • Consumables revenue increased 0.5 percent to $24.6 million in Q4, compared to $24.4 million in the 2022 fourth quarter. The increase was driven by higher average selling prices of wood pellets as well as higher volumes of food consumables, partially offset by lower average selling prices of food consumables and lower volumes of wood pellets.
  • Accessories revenue increased 20.9 percent to $79.0 million for the quarter, compared to $65.4 million in the 2022 fourth quarter. This increase was primarily driven by higher sales of Meater smart thermometers and the growth of Traeger branded accessories.
  • North America revenue increased 12.8 percent in the fourth quarter year-over-year.
  • Rest of World revenue increased 59.2 percent in the fourth quarter compared to the prior-year corresponding period.

Gross margin was 36.8 percent of net sales in the fourth quarter, reportedly inclusive of an impact of 100 basis points related to the voluntary recall of the Flatrock Griddle in the quarter. This compared to 34.5 percent in the 2022 fourth quarter, or 34.9 percent excluding restructuring costs. The increase in gross margin in the fourth quarter of 2023 was reportedly driven primarily by favorability from freight and logistics costs.

Sales and marketing expenses were $32.8 million in Q4, compared to $28.3 million in the 2022 fourth quarter. The increase was said to be driven primarily by higher variable costs.

General and administrative expenses were $25.9 million in Q4, compared to $24.2 million in the 2022 fourth quarter. The increase in general and administrative expense was reportedly driven primarily by higher professional service fees, partially offset by lower stock-based compensation expense.

The net loss was $24.0 million, or 19 cents per diluted share, in the 2023 fourth quarter, compared to a net loss of $28.9 million, or a net loss of 24 cents per diluted share, in the 2022 fourth quarter.

Adjusted net loss was $9.5 million, or 8 cents per diluted share, in Q4, compared to Adjusted net loss of $13.2 million, or 11 cents per diluted share, in the 2022 fourth quarter.2

Adjusted EBITDA was $13.0 million in the fourth quarter, compared to $7.1 million in the 2022 fourth quarter.

Full Year ended December 31, 2023

Total revenue decreased by 7.6 percent to $605.9 million.

  • Grills revenue decreased 15.8 percent to $299.3 million for the year. The decrease was reportedly driven primarily by lower unit volume from retail de-stocking in the first half of fiscal year 2023 as well as a decrease in average selling price due to strategic pricing actions.
  • Consumables revenue decreased 12.5 percent to $114.9 million for the year. The decrease was said to be driven primarily by a reduction in unit volume of wood pellets and food consumables, as well as a reduction in average selling price of food consumables.
  • Accessories revenue increased 13.3 percent to $191.6 million for the year. This increase was said to be primarily driven by higher sales of Meater smart thermometers.
  • North America revenue decreased 10.4 percent in 2023.
  • Rest of World revenue increased 21.6 percent in 2023.

Gross profit margin was 36.9 percent of sales in 2023, inclusive of 30 basis points related to the voluntary recall of the Flatrock Griddle in the fourth quarter. This compares to 34.9 percent in 2022, or 35.2 percent excluding restructuring costs. The increase in gross margin was said to be driven primarily by favorability from freight and logistics, partially offset by grill price changes.

Sales and marketing expenses were $108.7 million in 2023, compared to $130.7 million in 2022. The decrease was said to be primarily due to a decrease in advertising costs, travel-related expenses, commissions and other employee expenses, and professional fees.

General and administrative expenses were $129.8 million in 2023, compared to $166.8 million in 2022. The decrease in G&A expenses was reportedly driven primarily by the decrease in stock-based compensation expense of $34.7 million.

The net loss was $84.4 million, or 68 cents per diluted share, in 2023, compared to a net loss of $382.1 million, or a loss of $3.19 per diluted share, in 2022.

Adjusted net loss was $27.0 million, or 22 cents per diluted share, in 2023, compared to an adjusted net loss of $105.8 million, or a net loss of 88 cents per diluted share in 2022.

Adjusted EBITDA was $61.1 million in 2023, compared to $41.5 million in 2022.

Balance Sheet
Cash and cash equivalents totaled $29.9 million at year-end, compared to $39.1 million at December 31, 2022. Inventory was $96.2 million at year-end 2023, compared to $153.5 million at year-end 2022. The decrease was driven primarily by strategic inventory management.

Guidance
The company’s outlook reflects its expectation for continued softness in grill industry demand in 2024 and its expectation for significant improvement in gross margin, driven by lower transportation costs and the benefit of margin enhancement initiatives.

Guidance For Full Year Fiscal 2024

  • Total revenue is expected to be between $580 million and $605 million
  • Gross margin is expected to be between 39 percent and 40 percent
  • Adjusted EBITDA is expected to be between $62 million and $71 million

Guidance For First Quarter 2024

  • Total revenue is expected to be between $140 million and $145 million
  • Adjusted EBITDA is expected to be between $21 million and $24 million

A reconciliation of Adjusted EBITDA guidance to a net loss on a forward-looking basis could not be provided without unreasonable efforts, as the company is unable to provide reconciling information concerning provision for income taxes, interest expense, depreciation and amortization, other (income) expense, goodwill impairment, stock-based compensation, non-routine legal expenses, change in fair value of contingent consideration, and other adjustment items all of which are adjustments to Adjusted EBITDA, respectively.

Image courtesy Traeger