Topgolf Callaway Reports Record Third Quarter

Topgolf Callaway Brands Corp MODG announced a record third quarter on Thursday. 

The Carlsbad, California-based golf brand reported revenues of $988.5 million, beating estimates by $38.32 million.  Third quarter Non-GAAP EPS came in at 23 cents per share, beating analysts' estimates by 6 cents. 

"Our record third quarter results underscore the strength of our business and competitive positioning across all segments," said Chip Brewer, President and Chief Executive Officer of Topgolf Callaway Brands. 

In its first earnings report following an official name and ticker change to represent TopGolf, CEO Chip Brewer says that the golf entertainment venue will generate nearly half its adjusted EBITDA in 2023. 

"The long-term trends driving consumer interest and engagement in the Modern Golf ecosystem continued, highlighted by increased traffic at our Topgolf venues and strong sales in our golf equipment and active lifestyle businesses, including continued brand momentum for both TravisMathew and Jack Wolfskin. As our recent rebrand suggests, for the quarter, Topgolf continued to be a significant contributor to both revenue and Adjusted EBITDA, delivering 24% revenue growth year-over-year and generating $64 million in Adjusted EBITDA,” said Brewer. 

“For the full year 2023, despite our current forecast for a challenging macroeconomic climate, we expect our business to continue to grow. Including foreign exchange headwinds of approximately $110 million in revenue and $65 million in Adjusted EBITDA based on current rates, we believe our business will generate approximately $600 million in Adjusted EBITDA, with just over half coming from Topgolf."

Topgolf Callaway brands expect net revenues to grow approximately 10 percent year-over-year in 2023. 

Topgolf Callaway shares were up over 4 percent in after-hours trading on Thursday.

Image Credit: Topgolf Callaway Brands with Permission