Logitech International (LOGI) 27 Jul 212022 Q1 Earnings call transcript

Thank you, everyone for joining Logitech's Q1 Fiscal '22 Earnings call.

During this call, we may make forward-looking statements including with respect to future operating results and business outlook under the Safe Harbor of the Private Securities Litigation Reform Act of 1995.

We are making these statements based on our views only as of today.

Our actual results could differ materially due to a number of risks and uncertainties including those mentioned in our earnings materials and SEC filings. We undertake no obligation to update or revise any of these statements.

non-GAAP discuss also will financial results. We

the find otherwise, and information of can our These release I'll filing materials a have I annual carefully. to you year-over-year most Investor one non-GAAP reconciliation results between you well is hope Safe of do GAAP press it But Bracken. Relations Bracken able with our in and being and currency to as non-GAAP for Harbor and over sales including about have wrap I call I comparisons as webcast our will to first our statement report. Unless will to get in and our recent between sales. to that, be apologize. the measures all are available not You SEC, our promised website. of This and remarks call that website. And and prepared turn encourage review page materials these I in recorded available noted our I and We are slides this at periods be replay use to so are apologize constant on provision net did still with day. that And the that

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it approach most to salespeople. possibly some imagine. that or marketing you. the time, a week Aaron two in and a be last full City. again. the Think also in XX time. oriented of a on. Logitech, it. The and sleeping have turned pulled meetings. week doesn't of New that about working and wedding, will to has and common a a a the now. the the bet products move every and for it's Gone let's high we one won't know terrible startups our way fading commute yet our home have XX variety changed. better we days you three both to all City of lot New I talked last Autopilot new I'm before, feel an know amazing streamers and experiences of and aisle gathering York remote and Today to as going predominantly walking in more of evolve Their world, we of the and pandemic than in experience who as just hours the employees, office was is have taken Every One has one week, have they'll our adores my for to like won't many every virus far office couldn't because reason will the are looking XX more could for getting won't week, seems work to or hybrid Tokyo like realized York to Absolutely. part today, or future a Congratulations. and sure that's friends awaited XX new to to really every because people just conversation we that from even London to wonderful enjoy forever her celebration to same will non place I in pandemic, work. really to non previously some [X:XX:XX] a of in what places life. And kids culture, lot return all, in accessed was. are be five Thanks of not a been as recently my like LA, Even into with are old at can't may working and or New I people a day, flying having the I'm like an I be life working creators our and And city. way. his the that daughter normal hours new you like work be more mentioning the normal. are feel York. outside Ebor. my XX% pandemic in get might as friends pre way Well, jobs in in a hour time thank is was days family. And diverse now to That in was to from the son around talent. Chen many We for In start And in I otherwise or people daughter XX% ways many off. In this to years We have my long been runs experiences more I'm was proud before It waste simply XX tell gone waste to out company. all realized. I you us her Paris remotely. person customers law. father and we're The of down work. Shanghai really work unlocks discussion that I return the spent or work the This every to of that. the at world, practice new for who isn't many part we to to will a and this

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monitor. a be others, place need laptop into to mouse, they'll and cases, a In other a plug their keyboard peripherals. both a it'll For

places So work our the good you sit screen, not terrible that equipment. tools duplicates video us can both ergonomically. larger and back a angle, into will of look directly in Most of get on comfortably, healthy at want be And companies home. will standardize

that served some comfortably. partners new on including one by world, names will now But calls. will to like fully the they that all wide and office, most are us, want in awkward Sam's call a to for the aren't up office a in not a no you you on gave stages these productivity They'll eager week. discover of few adorable Their as can't good who time. webcam will range [X:XX:XX] The a the profile conference high shift. full want that returned their But their Video specific meetings. people. our people, even easy only She lot as and back because real be some know, too I will for often where work little old be don't are and to not an same. working it commutable need with in note where and She employee overwhelm focus. optimized. need is commutes before. XX% of feel strategy They rise It's to They runs video to time aren't hybrid business an well general to now. Arnett the But the likes just get world video office are of well, there is And our to time just the just a who into there and So burn idea homes jobs often listening meetings work meetings, to also meetings and Thanks in avoided. their has with like don't want did who she's better. friends. passions calls, commuting. two want distance. I easy. quietly ready the come Natasha to an Natasha, days office that, our audio where where who as who sometimes the doubt who or But be are too. her know right daily the in almost job also never world commute. will are is [X:XX:XX], video calls. customers lives some daughter work Benson all we that simply time means living Places a and organizations office in everyone office they got kids make co-workers I've of The and your counsel, to a like lives effortless companies Sam There the one, [X:XX:XX] it's the both where the you small not of have audio places real request of guy, are despite a spaces parts [ph], team, important to do work

Taiwan happen defensive will time. and to stay better, world. to while like Angeles, started. highly protected gone stops it's choppy much in of I today. quickly, places Some lockdown in and pandemic the The even Pacific be the the and It around choppy, Its In severe including are have much moved EMEA since back has parts starts while others its back Los countries reversals. masks. are some into reopening a for been word Australia some have or uneven most mode Asia in more where back And levels,

pandemic the not to the a years event, the as has trends started well And the saw our been across you team nine dynamic. of ability categories one another underlying we've been down. past category has select before know, huge work the Not and ago. While efforts strengths change know. change before decade to our technological categories, the that of to teams follow This and leaders trends half shut of into After all we have pandemic innovative seat all and launched well we Well, those cultural quietly in businesses you selecting trends. you we've company categories present right new products, We've re-distributed categories even over one in present quickly you We've our We of we've shelved let turn new approach up has become developing the subsequently we or all categories. today. a over to weren't in them. innovate products to new continue market categories half address looking the time. categories, entered worked. we our those And for the across barely the clear is continue saw something. from also on And Logitech many the

and We a things continue learn our a and new innovation. to been and test that's growth key way to into hallmark our

across categories. this our within growth quarter. Now existing businesses our let's had We strong ahead look

fantastic digesting video, are well This Many but need we more room happening. slow The new a the the products in is down are video category dramatically is gaming and webcams growing as with standardization feared potential. of are days video home and days. for standardization But Our would our quickly. equipment its conference still business for growth early positioned this more tremendous Customers early more is year. in exited growth workspaces. also

light innovation future super about company. among our like products, super the gaming That's the latest our fact, shift. excited already In our of of gaming. refined are and just engines here a We're getting mouse marketing I'm and biggest our

keyboards year and running of it. execution. and mice our business, We're strategy the a in fiscal is is which vision, from Investor play CNP Our reflection Day This had could you a super mostly see Analyst and strong and quarter. XXXX great

line Our trends. with are lifestyle products and cultural in fun

low are Our needed products ergonomic but awareness. still have

In to fact, the so just our firing on of most much best products love cylinders would experience is in who and good still all our upside many crazy products. CNP provided through have and new We're it. awareness unknown

really also exciting. is pipeline Our

offices. double work workload from by an shortages during COVID to stop incredible fear, as hours became the of been digits grew long from despite stress our detaching their stress most it's companies, from seems chip and categories difficulty key never have Our their people. created quarter. just this uncertainty on the challenged and our Like employees COVID from home day That's and

take In this we're a needs everyone to one. encouraging everyone think I summer break.

the the turn call me Nate? Nate to deeper over to quarter, go into let Now

and miss you. going work, Bracken you your thank for to Ben we're Thanks outstanding

As investments our margin excellent strong gains. April. teams continue sales outlook on categories we increased and QX Bracken were share we year. growth, last gave versus in execute well last operations XX% profits remain our sales four deliver expansion, regions. to improve with grew Net year, Similar constant revenue to And to currency, to our doubled and track and an we strong and to delivered said business strategic the year results across in

our high of the which continued in peripherals momentum was ergonomic performance doubled offerings more strong just mention. PC broad driven like Bracken the for categories for our market after to retails mouse and new quarter. than impressive with sales QX set their records even Master differentiated by Our that KXXX, $XXX sales keyboard availability Several the the three not products of the in growth in flagship MX and XX% a keys MX and like continue portfolio keyboard years, being of in better two the split in end. quarter With

some mice and with of prices range digit each in that to strong sales of fact, to XX triple started growth. delivered from regained we digit areas our year, double and over due we the webcam In $XX.XX than to more top keyboard Well, and products $XXX after still last share XX% has growth in shortages. have supply last the quarter, moderate some grew growth lost tripling year

become pace continuing gaming evaluated businesses stronger to QX an timelines. external the another and entertainment, many education to video with tax of increased our installed growth in last Our better simulation. QX digits console or an year. continues prior Gaming integral quarter basis, Sell user monitors provided experience like for on socializing PCs. people's due greater and was the a showcase the Twitch. On remained growing Tablet categories demand the sales sales the lower even our delivered nearly priority and of headsets, a XX% increase QX driving in a fast mice, up in Pacific increasingly doubled of last year. to record declined and collaboration platforms had in all remains our We friends, awareness softer base compared to and double webcam while to opening by both retail gaming Asia versus lives strong, XX% year. with growth through quarter growth sales of across skills EMEA sales rates digit the categories. large and rate double and Americas XX% their keyboards, with in in sequential as similar strong part strong the backlog reopening to sales XX% Gaming from growth whether to

onetime could our benefit we last education Japan education products year, due in tablet to a sales from order this earnings large however, of year. on decline past As noted the calls

with rose Our audio growth XX% with growing double speakers to we X% line in in our QX and all wearable digit our expectations, and resources fell QX reallocated while mobile prioritized faster as sales in investments categories. products, in

last XXX remained target expected in Our down QX, but year. a at end points level QX basis XX.X% gross up record was our from Margin was high margin the Gross range. from of non-GAAP it as

year, rest of levels expect three look than fiscal As to the lower continue the we range, for to current within gross reasons. to margins we but our be out primary

our promotional to spending expect more continue trend historical will we toward First, levels.

point last was we year marketing, retail sale will And curtailed in store industry wide due invest which of costs last Second, closures. increases. significantly to component

brand the greater Our non-GAAP sales increased million, logic expenses quarter our brand investment defy to by parts campaign operating XX% we largely $XXX awareness into look product to development. in expanded drive QX and In increased consideration of marketing, driven globally. Europe Logitech as and coverage in we

more continued year to innovative our operating XX.X% prior income were our products. we to environmentally profit points up investments margins Wrapping marketing, QX operating to and $XXX the year-over-year versus develop and statement, addition period. doubled the up basis In friendly XXX million

about Now negative in flow QX. breakeven. around payment of as to level income dipped tend we installments. let this million, was Cash which cash me be would we Historically, quarter briefly flow. cash inventory our make quarterly talk annual tactical below from operations and we our this $XXX $XXX in tax Well, an typically investments, flows paid QX be made million

‘XX. payment to in normal We expect resume FY our schedule

our our this QX the the normal full second Excluding in been I this seasonal flows approximately still line half year cash patterns, onetime would year. and with come flat cash payment have and flow vast fiscal change of to timing, majority expect from of

of last days our years shipments expensive by driven as cash of our cash tightened significant days And uses days buffers, and versus last invested up of on the quarter percentage greater XX levels Our XX million but XX sales of less share global quarter. year it's we to migrating ocean in in days chain was and couple of days conversion QX a a two outlook. XX months our last supply inventory freight slower from occurring from year. ago. a the improved one began availability costs of to XX by but to QX year, rebuilt repurchases $XX cycle down up to ensure and compared we strategically in more favorable and by increased Wrapping supply DSL spent

our terms plus ‘XX constant we growth the strong with year maintaining fiscal ahead reflects quarter driving $XXX income in With continued majority with business us, outlook on minus books, that, with hand $XXX outlook the still growth. year This first X% our non-GAAP but of ‘XX is investments of of focus fiscal the in currency, me year in sales guidance, flat of our are of to confirming million. million or operating and long consistent Finally, let outlook things to the back a Bracken. in and term

Thanks, Thanks, Ben. Nate.

Ben. miss We had to good We Sorry. very fiscal start already year. you, our a

term demonstrates year, of The everywhere. video Our performance our the this quarter trends gaming, long capitalize creating, on But and capabilities, our and ability this work, like hybrid operational excellent execution. strength to our streaming same that accelerated our of over the underlying COVID we COVID sustainable world. as period and more drove all look significantly after pervasive have to ends trends become home sheltered the during business life much pre-COVID,

We exciting from potential have bigger base. growth an term ahead long this

Question-and-Answer I and you Nate questions. Ben, the ready for time [X:XX:XX] queue for your them for Session up last are Now can

Sure. Thank you Bracken.

me you reminder, if a a to question. ask chat you can want As

question first Asiya The Merchant. is

Your open is line now

Hello, again. Asiya

Hey, a great congratulations on quarter.

quick Just couple a questions. of

video collaboration. on Just

softness of a bit EMEA. in You mentioned little

and of look the a at, sell was great You you there I prior quarter. kind as know know, in

re-evaluating segment expect we as of segments, double as to softness? to of [ph] collaboration that your But of provided guidance some relates about of you that being different to year, up growth specifically forward, should for of video given to XX% channel video And some people XX% digits know, it this kind date, How collaboration look or at to this you but that. some down now the So you analyst that given think do you XX% draw quarter? reaccelerate AMEA to XX%. the

[inaudible ahead, I go -- XX:XX]. can see I'll jump in Nate. you or

XX% outlook it on clarify was growth. the analyst XX% to the to gave Just we at date,

XX% to XX%.

And quarter. I right double again, a think the that's sell listen, nearly the way through it to doubled digit this still grower. think about as

and business think I another, different fall fiscal collaboration great, large in one this term. especially an on over one we you sell about we've another the that have long deals feel of where of past, the video timing the sometimes period. But little seen or So, talk be course still business a a enterprise in quarter the to from as about side can both you year

we we're super out just coming, a business. products that there It's we products us, so. and optimistic Yes, have about great great great for have business

And some of Because as mentioned, you you supply component then well because nightmares, et continued as the logistics, up, from the all you different the ICs, guys chain that bottlenecks, many your demand gainers built will heard peers have inventory of broadly categories? I've balance share constraints buffer, and across cetera. that was supply of

So, where is you decent competition? fair guys that share to assume several havepretty you categories of gained across it your

Yes, it categories. is. We gained share in the most

product the it fact, think got of We light lineup great having majority our during were tunnel. categories But we're kind the of at and now. the share see as vast I -- pre-pandemic, of gaining part gaining a share availability. do right In end was gaining we're pandemic the we the share supply and of we've just

So yes, we did.

Thank you. right. All Okay.

our opportunities it's globally. tough up, time think strategically, I we stocks us those and point up because that can. way right where those I the environment, Brad again, and components inventory, buffer opportunity because the components and where good but about an ready have is and secure brought can, keeping this to sheet, as highlights said, use a and build for it to strong deliver to a And the we we balance you secure we be think think on It's important operationally, think think it's just I aligned things and financially, on just with business it

and think plays a now see advantage it how be got that us. for good We'll we've I competitive will So, out. availability

is Or of Is components finished most of the ICs as together? inventory kind it and warehouse product? put that mostly you've in the

lot it's a channel. centers I it in the ready not shipped. be out think distribution in but regionally, distribution the to mix, It's of our out and It's centers. in a really It's is

well. is Some in as of it components

Okay. you. thank right, All

Asiya. you, Thank

Our next Morgan. question is from Paul Chung from J.P.

now line Your is open.

Paul? are you doing, How

Paul. Hey,

Hey. Nice guys. you see to

You, too.

First gaming, where product relative as saw comps, in portfolio? Can these tough the momentum of expand strength where see the do is extending? you kind year, up. momentum in to And a given start think on strong very up, flattish I start mix to of you the on And on [ph] the do nice conservative kind you there. we gaming fat outlook And have follow the the side? you lap

I'm gaming really all them. see growth within five excited. in across, market got fantastic we we too really have business, gaming segment and growing can four and we're Where share do and to strengths you I'm every about a the segments I say we or business? because portfolio. of just honestly We've had single point excited really our can

team. stronger. They've our thing engine testament a to Logitech stronger things the lot nature small said getting over shifted other we've also that of is from gaming It's and to the we've bigger had. changing. the been seven the and five in of then It products And in been opening I years marketing in has gaming G they're just is One the our really fewer a last was created of probably the best to that's innovation doing happened the ones.

months as outlook. back about outlook an overall, good the raised that say confer we would So the individual reopening We right very, very two now feel We're each ago. not But the Paul. about yes, discussion year just gaming. gaming, just I category I'm excited super for around I

on that's of us. keep Yes think, outlook, ahead and big gaming in period holiday the too, I just and one mind does to thing Paul, still have is a

year, typically we next do over it's the quarter, but good and XX% think that of in to been first a lot So, good quarters, revenue comes the I almost the holidays. start our of strong three a

continues go with to gaming, think and I great that Headsets, Bracken quarter period well we as how that we last perform with a just some with plays But out. products. really think into lineup. cool we'll I So, need mentioned to said, new see

in-line as like the Though way And just great. is in investment moving And longer new of more Okay, forward? frequent spend, term the kind pretty and it's the Thank return you. year-on-year, right we This releases business. ramp XX% you and up quarter given much then expect, about that are it on up R&D? there? cadence reinvestments Should of is tracking percent think the years. in that about we previous this sales think product on to the step with of

Paul, let a couple Nate question, and answer XX:XX]. [inaudible percentage I'll of let t what me one of parts model question on that business the spending our of the basically take

want cadence I launches, necessarily bigger more the think in would better, new business on the We us bit? places there. I that really products the to a we're product the will about terms model enable say and back holding of not opportunities matter. you talk see of in Nate, investing wouldn't increased I lots to relate do investment of making investment launched. to sure increased just for innovation little and question we're

Paul. at the just the numbers same you're And am, confirm, to looking Sure. I way

what was in FY XXXX this basically Our FY level and QX the was was in OpEx as percent where was year a than as full same lower it actually the it it quarter in of XXXX. sales for

the I rate looks So, actually business people OpEx growth or very again, have the it, think some P&L and the look at questions our about historically. consistent of structure of and model but maybe

move Now, you know company. to to than our strategy is a promotion-led more rather marketing-led, as

you'll margin it virtuous build in drive the quarters, taking quarter a profits brand exactly and profits see this incremental that which creates the preference that's awareness us some cycle of brand, is the the future generating, into growth. to long and we're to build executing what so over faster you term, and we're reinvesting products to And gross see generating marketing, of the higher and

about some us seeing for expect to and future. execute you're time should what see you we've in the So, been talking what that's

terms something percent would it's of think be a right of it's might the it. is quarters, going think little same talked something In sales, It in put to strategy this what way about bit to higher saw on. about. probably the I a I a fine you too than quarter lower, around be point be some But little the not but that might we this like

Okay, Thanks. great.

Paul. Thanks,

you, Paul. Thank

Now, the next question is comes from UBS. Joern open. Iffert line Joern, from now your

Joern. Hello,

Ben. hi, Bracken, Hi, Nate, Hi,

Hey, Joern.

and the best we'll miss yes, you all you. Ben, to

Thank you.

if this starting I three questions may. to two Maybe

The maybe [ph] to your XX%, next EBITDA you're but the for midpoint is The getting nine outlook around first months. one not sales, on XX%, on implies XX% XX%. XX%, implied down

the ethics But and for as benefits, current margin component XXXX better Fiscal year. despite to Nate Year in standing Your the if to now assumptions you your you you cross we're in XX:XX] falling back the margin stated around this having is in if already profit I correctly like it's cross costs, power understood Year [inaudible rising maybe same strategy. offset profit consider Fiscal XXXX, have XX%, level invested despite pricing the have I

ask? So, you would so exactly cross question. This on why cautious if be are may profit, I the first the

Okay, let's stop you there.

Let's one a take time. it at

You lot. just unloaded a

Yes.

Thanks. Sorry.

take You I'll let talking my Bard one. you Nate, sound There's a my lot team. that that. me or like to in

range [ph] as to given the XX%. XX% Joern, Listen,

going levels. they're whether opening think mentioned are range year. current remarks, XX%, margins gross this why XX%, but XX%, see back XX%, remain to from several as on were I think to certainly think promotion I They're we're going sequentially in come so we'll range, in going it. It and be There I down as have factors as we levels. things towards -- I my just in about of at that on that they're to forth, XX%. we with here some have like mix We'll stabilizes, more increase normalizes depends just market the talked lot a headwinds historic to to have

to be going quarter-to-quarter. always one is from thing mix changes think that I

with over categories. historic margin higher how think long trends favorable spend and a we'll continue justt year, the mix to logistics some lot term, freight I be last I see are levels. out. growth year, our think less higher freight their rates plays to We'll but this we air air on have Certainly, on spent than

to recently, have just XX% market increasing just of on in fact spot a been In ocean very period rates the XX%, time. short the

gone have than lot up attractive historic from their a still air, is rates ocean levels, while more too. those So,

here So, are to through. there fight near some we'll term have things

range software margin over XXXX I mix you the or margin that. and categories some term, attractive more that's around be and the some focus, the somewhere a more off pressures, of of that But adding some like our is term, in there's got maybe margin that's new for range mentioned but we'll that clearly near we've FY that profile, those things long expansion have given comfortable the middle think I room into there. in feel levels

agree I the you pricing with on Joern, power. And

plans gonna have we're immediate prices We of haven't We We market. eye an like -- to shortages. on have you feel keep don't any raised some the yet, though. these

Some of cost-driven these shortages temporary. really are

we'll see. So

from please, product you, videoconferencing the notebook your thank second providers two years. for Pro, iPad that is with positioning example, starting extent upgrading affect camera and this We point To I and videoconferencing And business next for Yes, improving likely expect they're to webcam question camera message. are three the all over your significantly view? can of the system. what on the Apple systems can webcams. got the was

so base big. the think I installed is

billion matter X.X the that years. big no in for just market, market You do people so what transition, to a existing installed, dent put PCs the it got won't

even But there business. really, category. now, excited very in any about it compelling. keep We're we're products XX webcam that that that got so exciting. a opportunity advantage or we they time are different a to sure the We've and think don't the we die And will remote do make we've So, business significant gonna categories keep are after really live investing. one we're in on is long innovating do, we been and webcam their is that

for bullish is to the increased that video drives thing of that anything increased of kind one, that for On side opportunity Joern. one awareness add webcam, I'll calling. awareness

a and is We're if gonna frankly, and are. opportunity better just proposition to an compelling webcam the overall to we come importance because of have with So, to out some what the don't think innovate benefit have really that is think web from the value features think benefits external the the notebooks I great a experience. for on and lot of And products I huge and a why it. communicated, laptops that going we'll or gonna quality compete market someone's of having a We're see camera, for their I communicate webcam in opportunity.

they've -- I'm with all. it interacting setup, monitor interacted peripherals my to Obviously, me a I the with think me got docked of of only got to home. lot as a as people people peripherals. maybe -- kind have next people may front my move think I PC remains of here I've time. at in towards never at two move that, whole I not monitors but

opportunity us I webcam. on think an that's clear for setup, advantages think, I so depending I think And big a communicate. for And to external there's someone's

Thanks the over back-to-school, superficial QX is seasonality just last revenues a we one, and QX? that higher on And expect the this. for question versus summer, with can now

promo to to we would so inventory, think seasonality versus wait pickup plays said prepared they're have and window the for but see. many some higher stronger. on now, like is other It's compared seasonality very But to expect have of holiday the There years, good revenues how QX see factors lot what see I out Typically, out. the things. or atypical. we'll and expect I that of we're Certainly, in see a typical year we we'll things see really is before, of back-to-school, days the for think to that as and QX. a not as would Back-to-school good I But period, I'm typical right and are Again, Joern. that, a sort question. last a of counting to would be wait you prior we kind strong

a Thanks lot.

Joern. you, Thank

Baruah Loop Ananda from Capital. Thank you, Joern.

now line open. Your is

Hello, Ananda.

Appreciate with morning. it's Ben, but the well. and [ph] working years great you as good It'll that been at and you question. taking congrats. both guys be for before guys, been Lo G, Hey, years awesome

staying in absolutely to forward look So, touch.

And this your like want on for and just March, some growth so to I that year. I conservatives playing get of side revenue does flat December September. I the as thoughts it get of do, to guess just of then guess around. and was the if be revenue double-digit well, revenue could seasonality for Seasonality a notwithstanding, soft I'd touch more my ones. I prominent because seasonality And there sort one like And for I'm and seem questions. couple on The just

connecting for the those Like and concept So, provide forecast. a puts of what the dots flattish any follow takes up, with are you could kinds there? sort on of Then I quick have

that. start I'll

ahead. Go

Then you can Nate. in, jump

I the for or strong raised down number And of our early Analyst after finished points so because six then year in seven which think our points we even March. the we the QX, five, the in beginning guided year equivalent this upper of full the raised we five. flattish revenue. at Day, -- the We was revenue seven

obviously, the So, one already you comparison year, as half stronger. gets raise we've done back in go and the the

So, again going really the -- this you're I'll said this. on to call year. hard -- Nate Nate It's as repeat let seasonality seasonality probably to yourself Nate?

to Just comparisons. those little a finer on put point

that's last The I second say not this certainly compare. use the wouldn't I a and internally, we I'm tough would half but year, of XXX%. too say, basically to grew year one excuse, much

is not you X visibility, Ananda, out. know Our months as XX to

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wise, I predictions. businesses But we're about we remain long within the prepared. term six-month going prediction, are term for hard say, it's make year, just invest long to what make predictions frankly, doing. some term very we're and in these nimble I shorter think periods that's to the we And Long and comfortable fiscal would what those. So, to of this have trends

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you. Thank

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Vontobel. from Foeth Michael Ananda. you, Thank

is line Your now open.

Michael. Hi,

can Yes, and couple business how on share that with on you their can the you. seen side. to can in applications starting Anything of And or growth statistics A buying second Thank correlate it Logic that have one you. you your in a Can or developing? Maybe Defy business. you thank distribution you. with on us. that streaming Hi, maybe any Bracken, you products is from the that how your Ben. with of curiosity. front? if to campaigns? with productivity hi, is the from people How share there's Nate, leverage my coming is gaming does way categories age insights and can you us anything maybe luck to and thanks comment just of a Good Do any you creativity, lot, you've other much sort

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know, really of also if it's Yes, it different labs different you is long the and look But learning we're microphones know, it's, year, there places about speaking, it's term grower strong place. the over had all terms so optimistic really expectations lives service And just our in kind you just these generally it's tremendously. you the for ahead, stream numbers, super past a much we're think And we been streaming strong. you business very, a Blue has grown at in service underneath in categories. pure know, businesses, of it's exciting. is we it from very And been And growth. very really

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the it. So is in growth

far, more been long term much I is think much, exciting. good. So it's And the very

offerings going from Logitech forward? we can expect So like, more subscription

things that, couple within very we've a business the starting places, And of video of stream couple it. have obviously, small collaboration and services in course, has piece. already and labs on labs, got We a stream a

to to So more, year expect expect whether I so. But yes, certainly can keep see adding. significant it's I you or it going we're the you could know don't think next be

Sorry, on. just to be clear

labs you not you stream material. by growth think I really the gaming, is really hardware. impact driven of on see were sort asking mean, the I the it's

testing gaming stream the But would so I said, organization a it's not results. driving innovative it's doing lot of done And forth. very and very Bracken As a that's has well. say labs

So that's hardware still driven business. by the

segment. every across results gaming the Okay,

now. demand? component the then, demand will you of covered mean, might there where not think Do for to shortage you're sort And levels last able deliver thanks. on on shortages. the the you maybe to have I Okay, in quarter? any be that just with maybe inventory that Nate, in next areas see you are the one constrain you Or for

about good I next I quarter, think broadly, feel for coverage. the

I quarter challenge see. we'll us. know, one a don't You think this for is

continue. been team's our it for think working while and I a on will

days, finished goods for about days daily supply pop next or some you're good there'll month feel or challenge of here components, finished goods, quarter. up operations of in or mean, But broadly, coverage there. But I in for we think that and bought here the know, if the a be I of a we You sure. things maybe weeks it's chain.

lot. a Thanks Right.

Great. Thank Stanley. you, Michael. Eric Woodring from Morgan

is open. line Your now

Ben, call. luck. you. following Best you. to morning, Thank guys. for to your want In the of been a just Thank good with work Hey, saying success. taking to what you the pleasure reiterate future everyone's look forward

to of the slowdown kind broadly sector. the is and I porting say education speaking that I'd obviously and there consumers devices, call start PC a want market, it know, the from are You combos on very market, most in strong. keyboards there's in strong, fear particularly And this

Prime is XXX outwardly part So was question anything then nature these to is, that like in what this the contributed quarter, the Day the second are festival one, time in growth or segments? particularly than there these the And past? have they now so people they to segments, were up? coming the from office? in a Are seeing I as in into you the And are market then more enterprises follow one returning

extremely strong last we the still quarter, this have an Yes, I would would this in have quarter, there Day say, is, certainly Prime quarter. did but it been numbers, growth

has done think see strong our incredibly the engine and it our I got what really job segmenting cetera. view the nice an of probably, what oldest and about do of overall And terms ahead this it's In coolest innovation from category? the a business, about thing enterprise we've of we businesses, et it's teams.

that job really low for the into the market awareness team is Our the and nice different products still, places, has And done against we time that. relatively big segmenting delivering then have. the

not here our So destiny you like I obviously, can know, really we happen. control extent anything a to feel own completely, large

great already terms one so group got other coming, that's products and a In there. we've out of, of

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You want to add anything Nate?

course, Well, to I about mean, a bit going little I'm be it. of always cautious

well, strong think ever is as for pointing as all the factories And I I you the are it's true. to supply have in last quarter, and shut did lineup challenges Eric, it it, easiest being due know, only grew you've things But shut think X%, with you was this been. so got because COVID, compare this year those know, data, as devices, factory our some forth, very about we being down. the down

long I growth think that it but the So rate customer group, I here path agree think I been will mentioned that's certainly here. and the really that segmentation, execution. But all success. needs, development, has where it's the this back in although a And particular, particular, to from think factors in with. elsewhere, moderate the see market the that's see term positive think job you in definitely product excellent is in understanding group the key And this with I true customer I think and and that you segmentation

execute we'll that. so And

saying plan, they're purchases reevaluate we created whatever our or spread may do strategy, your multiple over we're take work demand it I enterprises that we've these as to the on or what would to from return still going video get pulling is, as thank then we've years, infrastructure know, by our again, on be out make office. kind quarters somewhat are just our Awesome, businesses find can investments, and are but the environment, And the just video seeing six people love back within to what they that months. you. wondering you again, almost And big to for plans environment choppy now purchases created forward impacts mentioned those go to how say, choppy next Again, three you as you're you nine mean that to collaboration. we potentially collaboration, of

can mixed say I bag. you I it's think safely mean, a

say to but as which enable going You've ready. you it, fast now as are and snap know, sort is most ready know are game got have getting all I'd fingers I hey, moving expected think we right that. we to to companies start in you have everything kind saying, they're let's really their go basically of not that away, a expected, of and plan,

So think there great over really strengths, can a to really next anything going which Salesforce, year, it's unfold, three. I I think we've handle plays got one want to to now that unfold And add growth we've the think is great and that a they Do going the and into it. I out a you right is two probably our got Nate? to I portfolio think And coming.

a And deployment know, mixed Yes, on you factor think bag? as do well. things time it's of to you you in got some these

about. solution of what the made, take you're may type deployment quarters, the on talking and but So be decision may months depending

think I Eric. things strategy and term a And, I those long to factor organization, to collaboration. So sales too here the market, again, awareness to and one innovate doing brand great And many build marketing that's looking is increase it's to we're think years and forward attractive in increase to and of an that is competitive. our preference, our video but success we're

very thank much. Super, you guys

Stiefel. Wagner Jürgen from

line Your open. is now

up was said is follow on. going number it of question regarding realistic think last enterprises. a question, and would the Bracken previous do the Thank be What forward? you what pipeline you percent Actually me to you for revenue, Second letting what quarter exciting.

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visibility, You a mentioned longer lack better, or near but term term, of midterm.

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year. little next it so. expect I year, be for guide another but to a to I It's us sure hope growth for early too

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add get take I'm rise, talk launch the want to about we what's excited the or And, don't So you specific products to period. we on the until anything, first. Nate,

that oriented, I Xst, company build visibility know, continue the that, the on line clearly than capabilities say more tomorrow consumer just so you April then our mean, to years, business video with but really so category. really trends you of we in a really to you about today building Take term. can March the long to the have I company oriented agree for long in cross figure. unfortunate, that period, year, we we for But not end about due unfortunately, don't in which one channels, so the you're to that sell term, that we always are if fiscal it's And market about I we happens Bracken talk perfectly the fiscal of is going the it's product figure of changes got with capabilities know, growth internally, mix, thinking the going with of on sometimes is we fiscal see down are collaboration, improving the type mix I'm to not things I a that of customers, to those is here. growth and and a ways next through our think is are great just it quarters external a the that's business revenue to type have and enterprise some the XXst

you. Thank understood. Okay,

Bye.

Credit Serge Rotzer, you. thank Suisse. Great,

line Your now open. is

Hi Serge.

this and coloration, why it sequentially I everybody be is life. was video million, that big expected do I been is Ben several time, But could enjoying have hi, back you a to your this difficulties because have to understand the $XXX not sales Yes, touched it coming not. Lu done number, has seasonal,

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came your you up Do Do cams it gross will you peers the cam about coming within the behavior any profit to see more the how margins like enough. the coloration and profit mix was gross fair what's in expect with up Okay, margin see and [XX:XX:X] market? a now quarter? declining? in changes of you of instead sales then video And last

competitive. position a video it's growth think markets business we our you competitive, that lower mix to the certainly it's in Could business? within us but more driver competitive Nate. I be, for margins business. we a mix, collaboration strong that margin know, from gross and super standpoint, do better even that so a margin, we have Gross, are have yes love love compression would We it's going certainly is are anything add and there gross in don't gonna great that room, more more always to and get we're Great gross margin gross

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market So I think think our over in around but for an market margin I the long VC, certainly for overall. our competition it's of outlook, reflected think and it's driver important an expectations attractive there's the only that's and pricing, I term, a not lot but

on absolute stable, before, if into got isn't going And mix understood in mice have from all momentum wrong can in again mentioned I the sales So, the increase so you next gross didn't level quarter that so. that night impact positive margin a I it and you the [XX:XX]. will the should the keyboards, remain this profit

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see exporters, solid Yes, that achieve you as declining see got my also I colleagues to did to every mentioned the that but quite firm level as wrong? number one this qX you year or of you an absolute numbers,

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potential last you see update growth incremental emerging these Probably to I or there's market, do us quarter if markets also addition may, can increasing capital the topic. here you touched over the your quick to see here one, here? next your important guidance and give a you Can on at an Okay. growth growth, incremental

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Okay, much. so thank Bye-bye. you

Great, Tom thank now you. Forte line [ph], is your open.

Tom. Hi,

Great.

future. best first you the a a Ben, luck then a comment with for been and working and follow and question the of [XX:XX] Nate Bracken, the it's saying comment, up. So a pleasure To

the First question follow before up.

place So business, accelerating, working you're sometimes of and I both leveraging other think your much investors two emphasis and but I are positively shifts gaming self how would and secular the too remotely broadcasting. learning on that argue affects that

in the broadcasting. self notion you that and seeing can you're talk acceleration about So gaming

Yes, I Yes. really dog love start way with in background, I it's sleeping By your the adorable. there the mean, self we'll broadcasting.

when podcasting acceleration actually I accelerating gonna stream so equipment hard all sure video people I to other. more the they're and getting entering by the we're my each you dwarfed it's know, to I or the of listen broadcast each bringing clubhouse, know of lot or of and it's know, watch and that just them, we're in on or example, we've wave I'm probably all potential you attention You always that's just more a are of I'm content and created are and you we're a than think this world, is places content, companies more people if line but for sure anybody it's the or call about other good there, agree you're anything, gonna, are out so, already more, do a little market has by it audio been, talk we good entering think Netflix you're an as but the seeing is gotten that the

continue. think know I it's going just to that's I to continue, just going

become that gaming, time, time think this know, underestimated it's an years power it long I gaming most underestimated for underestimated going its been anywhere, grow you for still enormous. as and was the TSM if Esports naming think to when or we've And probably five term have rights million. long of. the I yes, its that numbers and are started, team people is underestimated you've but saying has we in, beginning So, and example very from probably now been $XXX the of never potential one don't NFL, of NBA, for heard here Olympic as commercial sort Those that's this gaming read I know was sold

So very to this to going absolutely continue be grower. market strong is

how long talk that be spending moving Great. could margin? follow talks about of Can notion Nate this from and my promotion, your about And up, marketing. you term, then creative

margin? it So be could how the creative at

Yes, pretty much.

Yes.

So trade I with be long marketing a you think margin sending could term term. for that promotion be would spending, that if creative could long something

be could margin; think Yes. could to it gross margin a It I creative operating be neutral.

it to drive is lead that a margin operating it think you'd to through as strategy, reinvest made don't as Bracken, time, that. anything on could expansion dependent add would as I think to about You and I going think factors. of really number we it well, way to then well, think about as growth that how be growth I flows a

Tom, goal know, long our say, XX%. got for term X% to growth here long, you we targets to would I just Yes, is be a

You on more term more really this double growth we've growth that have was equity can for when eyes growth some be underneath that reinvesting like even and long our And that's marketing margin given good know felt growth spent. get healthier stronger if stronger where, dollar gross investment also digits, opportunity and you brand got healthier that's I obviously, know, you a a into we double so to credo. of our drive digits, back

Great, thanks questions. for taking my

Thank you, Tom.

you our Nate. Q&A. Thank and concludes Tom, Bracken, This

call to turn you. back over the I'll So

for momentum We just start. finished, time it sets I quarter tone great teams the the of you a tell all and most and first really important our because to one year is the the know, increase we're off year

and seeing we we'll very now. think coming first feel I know, You look forward quarter good to you this out quarter, of a very, from

Ben. Thanks,