Logitech International (LOGI) 25 Jan 222022 Q3 Earnings call transcript

Great. I’m going to start. Thank you everyone for joining Logitech's Q3 Fiscal '22 Earnings Call. This call includes 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.

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

We will also non-GAAP financial results. discuss

on our prepared non-GAAP these filings. noted, review You GAAP IR information We between constant I'll well that, encourage materials net being for These the non-GAAP you in materials to call results Web these the of sales are and release our turn to on will our will as use and are reconciliation carefully. press our sales. our remarks to in in site. of Unless and and And and Bracken. accompanying otherwise call is available Web a measures recorded comparisons with find year-over-year available and between This slides about our page over are periods as SEC site. be currency replay

Nicole. this year -- so our revenue on last of you ability quarter's top full last year excited year's raise our and much, growth. our exceptional to Thank performance outlook strong I’m about

We have year. fiscal into a heading strong next foundation

of leading that portfolio majority innovation engine The diverse We gain to growing share quarter, in that engine, reflects the an our that performance company's but in reflects and our got our also especially categories of markets. this the reinforcing capabilities, is really continue well. also we've innovation of positions working strength broad

I've to chapters markets up said help design next good of is go-to-market chain And in challenges. continues the Our and coming in picking a focus the that supply on us setting our operational us key years. growth navigate industry-wide success. to always the execution are investments for

our engine on speak to leveraging categories fast growing a and of focused hybrid and innovation over digital world's we design trends, identifying I has the creators powerful Gaming phenomenon, all of So, years, exciting last always secular the leadership explosion Today, just Logitech everywhere. our can a on video work, position, most develop set the capabilities. trends. where about the some social We've market few centered moment focused platforms. want on of a is

with strongly grow trends over I these macro said and well-positioned as next are front, an that's each they decade. growing the continues and innovation strengthen. keep mature to We up to evolve we have engine of And

our we've in this more have to for lead marketing of preference our for recently, established We've the we've increased innovation years for our grow design efforts most methodical. diverse create offerings leadership we've is been future. understood approach, a market positions And Our categories. as capability markets, With key to to our products. delivering robust segmented powerful, new drive And teams product reorganized We've share. we our needs, and we've continued and consistent brand. customer pipeline

Now those productivity, accelerating driving let ever, biggest in products. me we mice performance keyboards. is categories. In creativity & demand driven and by briefly these step strong into our work for even and another Hybrid quarter hit

keys innovating we're as that for leader today's consumers, to and lifestyle, staying and opportunities price setup. something the MX of sexy cater offer value I'm and newest new pop the our lineup. are that a what's reception always really There's everyone. portfolio of Yet unlocking a only workplace more percentage of in excited the advantage the the and From higher optimal happening like of developing category. to in market about categories points, leaders people latest offerings. dimensions small so should, We sustainability these upgrade ahead have the have

their have the set products repeat desks. optimal at me Let people few that,

many this and office yet to Wireless probably or our keyboards mouse people on market call, Master And an you and don't continue underserved recently love Imagine a have keys would them. address How opportunity. still oldest announced how has cool like that And and know don't on those it. expand ergonomic we is desk actually segments. don't penetration, home have to of pop MX how many In don't MX many a our exists? yet fact, even have mice of keyboard mice that your the And product option. keys and even need our even the offerings Mouse customer MXXX category, but amazing left-handed

growth small X even no billion a gaming, game group revenue And is year. for that We improve continued fun worldwide. our for gamers hobby long telling to for or whether having a your competitively, experience. customers after time. our According there Newzoo, of peripherals a been We've last strong you momentum gaming in exceptional longer you now fringe are

As customer market needs. of number and we of opportunities see the meet more and gamers a segmentation more grows, to innovation product broader set for

the is gamers. social motto from gaming this gaming Our across fun you to that play. more believe pro life applies when And community we is

with sales nearly quarter-over-quarter video. year-over-year. spaces replacing conference facto tool digits improved hybrid ultra-fast more equaling Video other our increased connection, video in gaming reopenings levels in Video has will than only innovation, of office recently and see last conference launched rooms conference headset for more meetings become example are vital one grew the high de wants for recycled delivered players. need gamer In to It's it's our all and mind. But we're was audio Smaller continued sales collaboration, extremely than any growth, just gamers ever. who calls. connect made also that to GXXX competitive work activity when in-person fact, of with double this We plastic. designed year's quarter, good As certainly tripled. cams some planning. But our and and XX% lightweight it's starting in with collaboration an meeting

has globally. tools or tested room. they Our operations like those equally better when been been make can many participate that has another mission year is companies This collaboration than participants in remote to video can develop even for feel the year

of Our ongoing operations the challenges. team execution wide chain supply in continued industry their face strong

we mentioned prolonged be last component we continue quarter, and to higher delays availability. with logistics impacted challenges costs by As and

wholly-owned be Electronics and XX facility future, business. the help an our really in taking carbon us we management, than ESG. our year of more on heart that ranked However, the DJSI. neutral, continue at remain very supplier Dow for for strong our recognized capturing for pleased and we focus on leadership our achieved it's the to second worldwide by which We're XXXX to or positive active us With production setting beyond supply XXXX direct on sustainability a on important competitive. action, the Industry eye were carbon We're including for were Jones Sustainability chain relationships continue in Computer long-term we We that us Europe create. Index and the Office Peripherals number climate we going consecutive path

are use production, labeling our X. and X, Scope with We the carbon of of distribution, life, so-called the X products by amount created end their carbon and

we're So, everything. including

XX% we're lines. mice addition, keyboard moving In plastics throughout product now recycle of to are our our which and in products,

turn let comments our further quarter. me the Nate, good for to call Nate morning. over Now on this performance

as in with Thank supply results environment. sales challenging Bracken. in you. QX record morning, good delivered solid navigated chain we a categories We key financial Hey,

majority the As of Bracken share in for long-term we gained growth. while our mentioned, investing categories

growth in top increases line devices later Creativity X and headwinds, currency call. I'll top are outlook full I'm results profit in from QX top in and line growth percentage and logistics & & to pointing some categories, outlook We Keyboards double-digit had impressive Keyboards and driven and video our sequential declined hybrid in detail grew our growth pleased continued impacted sales of X line had gaming in by supply company supply Combos and Gaming the we our most X% the our to insufficient X gross XX% and more double-digit trends. single-digit negatively and fiscal net year. disruptions constant for devices with with grow pointing by Combos, for demand Keyboards now Productivity our points in X% approximately Despite including increasing demand points. & to collaboration. availability, in the total about cover sales growth the work these we and Our fulfill project cost stock by quarter. grew strong Industry-wide products, Wheels. margins In

strong BXB our and channel MX high-end lines. We product also in growth saw

execution. for the enabled wheels, quarter. growth category been digits have they last sales XX points the lineup than sales year, product last decreased QX, declined growing more digits grew gaming X% and they QX tablet same XX% growth XX%. Although off grew It's growing cameras and year-over-year. year, in tablet excellent share still than large to of XX%, another and sales the by ago, more after first category are innovative in months. period however, the category accessories and supply Japan, our declined better video XX%. X with grown primarily year, conference education by with XXX% year, QX of years performance gains gaming X Similar and half and quarter by where a last room we where were an triple systems and last the led double order strong double X%, in had webcam over quarter-over-quarter this excluding market share would marketing solid grew accessories the Gaming sales collaboration The we increased XX%

in help years ago points quarter. the drive the was product Our than gain X categories more strong still double tablet size share it portfolio our X of and

categories remained the along cease non-GAAP resources was as declined portfolio X such expected wireless developing margin within year-over-year redirect and decision including year's brand. and Wireless we've FITS. reduced margin levels as mobile We launches down XX.X%, and to to and UE Jaybird speakers new elevated however, music quarter-over-quarter. We our freight regularly last from opportunities costs Our QX to those gross under lines, about Logitech target anticipated down XX% remain as down points audio products review Higher QX, committed Zone a range. made gross in product our future XX%. and

QX headwinds profit they expect in and outlook. those our We remain included factors are to in

strategically business grow over executed Turning our to the our quarter, expenses the long-term. in invest to plan to we

was expenses were product $XXX in X.X was million. XX operating operating flow ended decreased development. and Rounding non-GAAP to approximately down by the positive operations profit nearly however, out points. XX.X%, with QX of doubled to coverage margins QX and on $X.X points. $XXX up $XXX Our The cash about operating We Compared driven investment billion. cash from our repurchases million. million sales a share years to increased QX and marketing, margins the increase quarter $XXX spent balance ago, XX% million, X are P&L, largely profits and XX%

balance $XXX of amount the through the cash with returned share QX flat year. even is million and three than as first we have dividends to last double more shareholders repurchases last Our year, year-to-date, quarters

last days XX days, supply conversion was The chain well of cash cycle cycle our as year. industry-wide conversion as for forecast demand some by as from delays, up inventory port QX an low cash days in higher fluctuations disruptions is Our change primary products. such our XX of driver exceptionally the impacted

sheet supply availability find assure We lead balance also leverage purchase and continue maintain to hard to time and long our to advantage. to components strategically competitive

our growth or and constant ahead, currency outlook growth Looking our 'XX up X%, to a to from sales currency constant increasing plus we X%. are sales prior X% minus outlook, fiscal of flat

are We up questions. we to million outlook non-GAAP open with million for line million, And prior to from to operating profit our increasing that, $XXX $XXX your of also million. the $XXX can $XXX outlook our

question Citi. from Asiya come from first The

Asiya Merchant.

quarter. morning, congratulations well-executed good a And, Hey, gentlemen. Nicole, on

you that questions and and creativity ASP some we've your what as future a productivity these example, you outlook like wasn't on margins gross that's that guys gives have for the like, of as & benefit the well. this I confidence across heard portfolio, look years' report just portfolio. from investors, some then benefiting, your question And about Some segments fact

everybody trends we've very day, And for other any across strong. script, don't mentioned not our these very we we secular times, the trends had analyze very, see it's -- you opening bet underneath very there's optimal are of In been just workspace blow to this the and didn't of again trends that I XX% it as I of I'll of everybody's mice glance, categories, why here have that mind have talked We and are long-term continue. about a call, if carefully. new growth, -- took you call, -- reason to us. we will in picture to we've these maybe this in quick my any we if many can the I keyboards, The setup them all and us people on this guarantee said continues the follow took

across opportunity just there's So, Asiya. do? the we what board, So,

talked when you to impacting you Are you Nate, the impact at then these we half assume the higher quarter? And costs gross on second X% the that And end Okay. costs? were fourth freight freight light about see -- for see that tunnel impact the margins, do continues in of margins. higher any do the of

in I expect challenges. cost yes, the Yes. chain supply released, similar those terms I great mean, supply QX of -- a timing of I think when And challenges cost were question. in it's

to And in predictability really the there's the levels. this really I been Asiya. has not supply predictability also elements normal two and -- cost. think supply there's of chain industry-wide to There's

see things on airfreight improve stock, So, demand use as in is more resilient supply expedited in categories. make the predictability, that ocean the a pretty delays you're both causing of more and But on these can more come lower to getting and right, sure lot remained you measure air. that to try predictability to to are things has in us channels

increased use air that try see challenges ocean. And overcome of freight of to some those the we've on so, predictability the we to

the So on ocean being are the Xx Xx costs of right, is other why air. reason think reason, both QX. just higher. industry, rates course, that's in up and higher They're remain one they'll year-over-year And higher to the I and

few go. both that us we we'll short-term those our quarters eye see not predictability and And year, see going think till an update back But a I on on release be keep we're that close fiscal on But that are half. a still. could as we cost don't with I under any probably relief that some for but to and the next operating assumption these pressures. in

on Okay. and I benefited spend way fiscal your I mean, offset, backing to supply 'XX. that will then And the media be you that think the guys in chains you were

incremental spend year-on-year So, on there basis? media delta is the a just

year-over-year You're talking margins? gross about

Yes.

But We're not biggest talking two as increase been and two to return logistics then year-over-year. still Those be back doing about higher some that drivers factors the would X be ago. level some Yes, to promotion. we in were promotion the levels would the year-over-year of years the also we've costs. biggest

Okay. Thank you.

Asiya.

next you. Alex Duval. The question Thank comes from

Alex. Hi,

Thank hi, for you question. Yes, much so the everyone.

wanted today EBIT. guide you by implicitly, Firstly, million. on asking, consensus been $XX to investors clarify, I upgraded obviously, full then, by year beat around you've some But $XX your just only million around

start given Obviously, comps these any to materially you've year-on-year then some wanting talking those moving very we're in And is forward that to digits. single to question. a about? this understand quarters, in period start been of just just and So, comps move hard the few people prudence ease secondly, very comps. But change more fundamentals? is of in parts philosophical of as sort we'll will we just a see Or

longer model of a FX articulated obviously term. in X% XX% the to You've constant growth

challenging of to Many about comps? in this hit should out growth So, thinking you expecting that be those point be we at very of as we period of get you How that kind rates should transition time? thanks.

on one second Nate. to I first back one and jump Yes, in you will hand let then the me the

feeling topic. is that On of to we'll we up a did you exactly be why the the our of very you March and Nate, set a our to you all guidance invite general be thrilled X one. that's which second I there. Investor talking about you kind good have about will Analyst on talk we And little we question, coming to where And, about bit Day, want it? cordially,

the better of catch end I high Yes. guidance, top at then think gross something seasonality at it's worse indicates than just a something line pressure. sequentially, little mentioned from I think, Yes, the Alex. I bit bit good typical a profit I seasonality. a on typical there, sort if look question, mean, And really, as headwinds a little Asiya's to low similar standpoint, I end, into than margin the

I in course, a the and, think we more of here sequentially be volatility than volatility overall could now. little a headwind currency with right rate of market what interest had the bit

for the some supply course, continuing a tough comps. the can think got to into across now, well our operating right predictable as and but you've in our can really and get in a all we're So, there the pressure, in the I a across lower best I model to grow potential we its cost we're encouraging But operates just really took like think unfavorable on I most despite get down of guide, additional chain quite We and some there's the end don't impacting margins, period in the I to supply predictable categories it's so environment. incremental yet state, leverage business some and industry of of as great matching demand. revenue markets, that think the you see have account. just

feel think I long-term demand trends So, the look really the over underlying solid. I and about great that

Many thanks. It's helpful. very

Alex. Thank you,

The next question comes from Loop Capital, Ananda.

Ananda. Hey,

Hi, Ananda.

call. to Yes, New Happy and Year. thanks yes, Hey, good guys morning,

Happy New Year.

Bracken, to contrast to you you think I out to iPad. guys staring your this great, look go I I'm webcam. you super new I'm And crisp. And and and doing an staring I because on me at compare get need point, and and get at I'm a look

new we Oh, that Glow might the need actually Litra just you launched. Light

you do have you on? behind what situation pro guys that you, lighting going this Was do right

it's beautiful. webcam, just we but it. light it's a Looks very a launched like No, no

So, it's available.

take that. -- I I'm going [multiple up to if guess -- to things, heads I'm a couple speakers]. could. for just Thanks. you the so actually going Thanks on I

context to this that follow-ups. anything quarter, I'll structural guess, for I have of? a and useful us performance revenue us be might for couple just aware -- there again, strong start be the with any interesting quick So, are

add can you'd you in on like. and I'll Nate anything jump that

is the way we thought I'd it's I important structural think it -- comment playing the about would. this is, out make most

of end long-term that growth need number long-term incredible the the for the growth And the maybe of or of growth secular day, video, pandemic, those continue are of workspaces, at they're trend We and think in are conference incredible the -- moves equally rooms happen. structural the they through in happening. really of the wherever to more excited are we the they've continued to streaming you creating, we gaming, and happen, go now, pandemic as

So, exciting. it's

these long-term other by long-term getting stop ride. categories going behind it we're trends new trends way, just not to over going launching the our are there. We're keep but think thesis, And to to new validates I and great time.

was That my of actually one follow-up.

we'll excited you about? categories Are already there. maybe getting Or maybe about? that guys just there So are new go excited

back Yes, example, think an talked just new there are. few of concept so I in products. out them on quarters Cs existing door I demand as it out door, mean, on We way them. -- categories. last in don't in about always away. the we're working our we working very [ph], make We're we pack been and the lot it which of because there's the and some quietly it A the much make haven't always a quiet

gets So, lighting I as in use. for I lights And super some it mentioned of electrical easy being it. think a the mean, means about business lot super when an example, publicity, It's one, -- a makes to product I this we're excited one for really is example. us. sense

time new coming for categories I'm yes, will about excited over sure. So, some be

one guess Okay, competitors? impact you new for me, see I'll from before. Are you just yet seeing last any And awesome. legitimate I

I've long in competitors been new as had or we've as continuously Yes, serially here.

and the markets. in always always great lot -- had But a again, comes same competition markets. them lot I've we of at there, and their we great Nate receded is new of which least others of says with thing had category, reduced have efforts think we're back in the I out great felt, And kind competitors, stay. or will webcam they've a

our say engine. places, suggests love a the And now, I enterprises it and innovation would consumers. deliver pick we and So, right we to built can both engine commercial really we we

and So, very the competitive. we're we super future, are optimistic for feel

my But those are for probably off -- I -- and folks going and miss the It's and think to HP them. top they're head, deep of I one. specifically and Microsoft of, pocket I'm new

guys as they have you probably not do new in as guys a quite committed It's But a category they're sense. for are. strategic pockets. deep those So,

think seeing like I of impact guys guys structurally is you're Bracken, way but yet. really so, but that them to don't guys, the And like kind I you in in those not really mean, material the seem business, that operate. of necessarily the to you seeing And that not marketplace say

and the think -- I competitors know we we the we going market competitors mentioned to market other in the you have and they're they're and it. going and keep in Yes, investing been be expect to

growing. majority. going I growing and market key driving, can say share we're to keep investing vast so, keep to all All is our keep we're And categories, across

engine, and I good stuff coming. got we've innovation So, good feel about

guys. Thank Awesome. you,

Ananda. you, Thank

a Thanks lot.

Thank you.

Next Morgan, question Chung. is from Paul JP Paul?

Paul. Hey,

Paul. Hey,

morning, Hey, good guys.

Good morning.

Nice quarter.

strong called camera and as the you So been you and particular trends the Anything start up region, in first month how or [ph]. to to to out systems first the office? kind return want it you the on VC, video vertical by in the see call more people demand year initial of

terms of That's But boy, story. in incredibly the Video declined. they're growing cams off I Conference webcams an base, climbed really high they've are double-digit. Conference high. segment, have great a would say within

that's the grow the conferencing think agree, lot office, up to big you're as only do people a I in this would the of again go implementation And the even back, video plans start more. beginning saw to think actually there. say on warm people most in to we of it would probably going though are I for I starts call

So, anything, good Do I you add about really I think, want feel that. Nate?

Americas actually Yes, quarter, kind three the did a had was better EMEA much regionally, strongest I of quarter Paul. quarter, this last although than of regions, it the think

web ago. same I was even EMEA of Bracken as out it's product we a something seen said, then a look think increased as number you from bit a activity did And when I selling like think soft and the there. last much we’ve year some little so impressive mentioned units that at we quarter we're cameras, standpoint, pretty

more install side is little that is bit growing equivalent the year great kind the we're there. is which such future the of base But ago, is a units PC the number a in means lower, business. mix than the we this it selling and creates of as on opportunity were of Some because

such been more interest a as But But year, bit it So, this think of in reopened. there's webcam. I a good in category. still the reasonable little hot last a And I offices year. it's lot that think has potential future was also

I seen see desk at we've I don't yet. think we'll more the that video and think quite

Nate, say, really driving We that would end. within mix couldn't us, I good good wasn't mix fact we're we at it low was And enough. categories. make last have the And drove that we actually the it but supply just didn't at year,

Yes.

a we've think have I with go So, period, the set to on going that to to webcams, we're then little the can have but a see that. up we're we after what the story bit -- will category got way we're mix other now going do

find to Got and are you guess share ability respective given cash market some as across I seeing in you. then segments competition, your on inventory, VC, other And that well?

gain Bracken. -- ahead, We go share

Yes, I going And we share gain a to I sheet is great VC. having advantage. in to think continue say was an balance

So, with have -- still components sure going we'll immune to to we're happening what's out well-positioned continue try not forward. We that make we're to there.

-- we generally still that stays speaking, So, I a shortages. think we've state have it now, But we hope really got way. much-improved some bonus

well. our pretty to that did what their share mean, indicates supply, market we will Yes. mean, It's listen Paul, you say hard about competitors to the as know, I I we'll

back enough there challenge from a be I some been categories we didn't were that the It’s we get stock mentioned, a gaming wheels. where supply to to have for to standpoint. us want just As levels

just a like of cameras, what can I to we'll web have actually supply. share with availability there so, and ago better a kind recover say. on we'll that bit probably others think with share lose what happened year to think listen But And little I of based we then

there's some several little sweet I if to is think are -- bands, at I spot bit trend been bands, for it's price a -- some market play kind high us. bit price we're look market other strength really favor, towards But lot. of in and also, little where the in the wireless a gaming, strength a which entry in the playing is our And trends also a strong. we been the places where weaker higher

And been from market beneficial so, I a share standpoint. think that's

Thanks. year. pretty this year OpEx last And of track is be on strong last big against question step-up is to the a pace up

think of as assume sales the in should range? terms kind it So, about Thanks. to about Or of the it of more of XX% percentage out OpEx in think year, we slows? we that pace kind XX% of is

can you take? Nate,

OpEx we I think grows I mean, rates unless growth won't Yes, year, increasing rates. be same those this revenue at

I far to of invest what into think to wisely OpEx and business. between in had a our the really probably really growth, This ability on revenue Paul. was more ahead we we'll alignment was catch some just see year up year future, the investments last revenue with XX%

closer year going into OpEx set the do I more expect out what to And relative would to say you much which good -- you're some at we to see the opportunity revenue. to ourselves long-term much taking to would so, a growth opportunities. up, rate for But that, think this future,

guys. Thanks, Great.

Paul. Thanks, you. Thank

Thanks, Paul.

Next UBS. on is from question the you Joern, call? are

Joern. Hi,

Hi. Yes.

morning. Good

Bracken. Good. Morning,

morning. Good

Good Nate. Thanks my morning, taking questions. for

reorganized on The exactly first What innovation one recently? to statement the would be, the call, prospects. the you reorganized teams Bracken, made was market beginning Logitech that at drive of

some been constantly C&P example, categories. are for segmentation that's unlocked think example, ergonomics, It's And effective. reorganized us, different returning, a we approach. actually business were general the for -- lifestyle for in We I around few ago years openings super in our

Gen lifestyle include that's think -- their mechanical we that because and new on the probably now. I kind that reorganized we partly attribute But really going fun, not mice we're focused of pop pop and that stop. they're mouse, these We -- partly to keys beautiful was way Z.

to and our, of go would reorganized as I different close next So, we probably right around now we strengths. say, to into organize customer of they're one And our been has the again stay two continuing really year. two that businesses got --

of consumer lots This on insight the opportunities. side. fluid business see market, we is and So, customer insight a very

Thanks. on What in your suppliers. year are And your your question China, this reserving here years? your are of next X suppliers? Right. with in mean, to terms capacity side? the and mean, own Understand. I What are you doing what site planning. I production plans X be or production capacity please your you third-party in will the expansion for next also

into jump Yes, let me that, Nate.

Yes.

It's question bit little hard to of a a answer.

lots chain main of then course, location. we sites really The of different have been is focus lots have suppliers, component of a everybody. We production our we've like supply in and different had

manufacturing places. we've to So, new tried into distribute our

we've production production but -- ever moved China, out than So, China. of we a have more more ever lot we have in than

have in countries we have couple continue the because Southeast whatever for ramp the multiple then tariff reasons. but make could want sure for we we've One happen to and really up it we a we to during decided really period, China, So, Asia that to are we well-positioned production set down And was road. now. up,

things the factory. has been pretty a our In people's in move in we've terms to ramp of always We've and factories produce and production of to ramp strength our other own down expansion able for ability of or ourselves been planning, out quickly -- and us. up

that So, we're going capability. to keep

how of R&D have last please, proportionally Logitech clarity that the categories in question, give and a the segments, rough the going R&D more much we Can R&D into has And going us how is you some existing spend. of on new idea? Thanks. the much is

to those strong, Well, existing businesses. majority the goes got opportunities I vibrant We've in large all our say of big, four secular areas. trend would vast

programs create couple we where super that. have I've So, time. to all Glow desk my teams against got vast ongoing program -- into new categories. investing pilot that. always exciting, on Super that. really out from that's small always came And goes the vast we're fun, majority in But on seed the the products of a a Electric

confident category we Sometimes where then enough to we in about we that feel be want we've figure M&A, results we learned look. in go that out, it, that a out

UE our like organic, it's Sometimes FITS.

to pretty amazing seen product. a way, on product, if XX -- automatically selling But ear it's call. I might in market. products haven't there. it direct as customizes we when timeframe talked we've don't our we thing now in against about got know learn that your it come always measure needs -- to really you fits that And continue out. it's investment we market But really when how amazing, to in consumer small this bring yes, seconds. -- If to ever But, that to don't the it's to out

Glow. fail so, the can early, them a better understanding them need and then And fast. right and in get customer And small like try way, keep until -- we to we so pivoting then Litra launch we fail and

you Thank right. very All much.

Joern. Thanks, you. Thank

The comes Thank Woodring Stanley please. from Erik question you. Morgan next from

Hi, Eric.

Eric. Hey,

quarter here. Guys, Congrats good morning. your on

about Sorry that.

my me running. Let get Logitech camera and up

challenges I So beneficiaries. the maybe is some See COVID But this just Obviously, perhaps market we've be would handful question. seen that high-level bucking of think in trend. near-term. considered companies the a that a have to you're

it. preeminent And And -- love think you on follow-up. is thoughts do to has relative I able companies, call so that Logitech why would let's just why other a that have been to your high-level

be I exactly our knowing referring think belief think to -- I to, companies and it's a true. it's Without turned out I which you're think

COVID did happening. but accelerate belief our that what wasn't was really to to drive categories, surprise Our what a already was in onetime was

mouse about it the have And you, our workspaces, peripherals thing -- that to you and as keyboard, more not, cool have a categories, permanent in is, mean? have it, And about workspaces keyboard, when have if I so what that decor. a you, don't let's a the keyboard, and and -- mattering if else's everybody and take you dimensions that a does home backlog it's product believe looks didn't care office of home mouse you of just much even PC Like, like have might a it I more you home. you PC have mouse but part and actually Or before. suddenly had -- know have or even I not on or so as that a at your office especially you a didn't

now and a I people. lot do And of so

still are lot Now door on the I or a as that. me, got out there was interesting home, and was X, there installed walking available X got because of that's the think just was, on I or of that, got increase office. base, out I was And the I for even an something in in I what is top it that, March I thing whatever the the what us nearby, scrambled. like

business, to in and both And this who -- in so out people work to know what's take it don't even most people there.

And so, upgrade them the is significant. opportunity to continue to

it's have gift really it, you giving. keeps time. I on better. and upgrading biggest between that us -- Once focused upgrade can a So, I you we're businesses just and on And is the and it, the over experience -- difference think this think people is most

upgrading, more spaces there's there's a innovating. opportunity constant So, for we as keep and especially

Yes.

Awesome.

Sorry about Nate. that,

trend too might I about got think of call of I created, trends cases in that this it's maybe short got of right? that We've just wouldn't doing been People's versus ways lived. new now their the it more their a that ways new think have years. stronger learning changed, existing have has they I but maybe way created And think working for some is been fab, communicating something just been way where X have changed. sticky, has changed, to

was And prefer people it, so, but number actually comfortable up a And gotten a of stronger. they more like we've curve adoption and gotten that about, it's lot it. have up we've of trend the video, we're thinking curve a on adoption already lot where lot gotten with trends before, that kind the a gotten a

all really gotten think growth perhaps I those, that characteristics And in and think that our in so, have is all of stronger. they existing categories categories, I were of I had or of think that's trends many what's different good our before

near-term That's a really color. this of helpful comment. is and Maybe follow-up as a more

on led perhaps curious procure was bit your of ability whether to driven? December that Or that in was quarter and the your prior to amazing the kind to to it. surprised supply And relative a it expectations? an get do Obviously, what upside else? relative just Just to quarter supply you to outperformance that general expectations? think trying Really was that something

quarter, one a continue we -- I actually frustrated, get we're couldn't to -- wasn’t but supply. It be better we think little

just we As need challenge. continue Nate we as some to standpoint we areas had be couldn't a component a logistics from as where said, it much get and really

that, So want you stronger. could it have add Do actually even Nate? little been to anything a to

I of late recovered and mean, end some supplied example, in in would be where was expected But too. -- some shelf it. on we back in kind of think we we we think if we it. that revenue recovered was But think the well, I probably ways. we add mean, of more went some as linearity places -- areas it time got for it kind into I really loaded. I was of a actually lot have most The that the pretty knowing we on I tighten Europe, could to be there for place quarter was

just just Okay, the you one, inventory super. have past. guys last on levels. commented that know Then in channel I

guys. Just maybe for of that's might future? be you relative And the do me. channel where quarter Thanks, end the fill in it to the there September think opportunities for

into of again, also only region. in always level, but metrics a in at down channel we're where products, good a is is is shape. where our really the Again, SKU can good the terms we by areas. it's I the think QX, always I the I light go places do improved And by Yes, and but general, we there's channel I is healthy better, availability demand in matters where and supply have not think place. country But think And Erik. lot. in some -- think it But in our

So, the strength we're that, was categories. fulfill the I do best to in to our demand but going happy the of and with QX try

guys. Thanks, Awesome.

Thank you, Erik.

The from Stifel, next question Jürgen Wagner.

Hi, Jürgen.

the you still reported gained Yes, what revenue letting higher lot your I demand have a demand I on of that you but recently, said at your look share market model you. should for a in are based Thanks How you how And for also further in down supply Thank gaming? on would you supply must difficult, gaining. talked March 'XX. trending? then side, markets. lot Hi. in How Yes. Yes, see? me share your when still about you end we calendar on. U.S gaming growth you would see supply but mean, competitors

will let me and [technical difficulty]. difficulty] Yes, into [technical then the first I

Okay.

we're that Jon feel into we share just say, business Yes, I your we've doing. team And gaming business. innovation gaming what an to well. about continue he we anchor opened really engine, excited people a is CNBC our share, getting think we think of without today. we with group And really like had working broadening team we've love a did call modeling, a the in and that I Fortt, I that of see a definition in love we're been the I actually opportunities I are our gaining insight. gain lot and who got with and would and interview of mean, reporter the that's

their we gaming. friends. it narrow but game even listen We music said, putting and my among kids friends think I difference where said was on growing a playing kind to and talk. my I talking started social, I he of as He are and with would on sit I headphones And getting my the in kids games, now a big saw from think that's reset. when really to only are now up,

-- beautiful playing girl, basement it. a if stereotype of and wear of for of that a Now instead colorful, it's XX-year-old part games. categories, I like what -- And about. reflection market growing horizontally. more you're those more and a like doesn't broader. and and opens the the products boy a people It's broadening GXXX and And that in more light could want a that more talked you to it kinds it's of of expanding looks you'd is It itself different headset wear

with Hey, -- as drive than and the look Bracken way, don't But over and month. Jürgen, months add marketing get brand. overstate trends usually to to at -- investments X our innovation, been that share We share. will I We're right our I also for rather on with I focus X on want want said awareness share to share. preference

think But that November, December I an manage some As others. lost we weren't competitive term. was the in as to want the frankly, some season share as right think holiday the example, bit businesses I decision. or we longer price in We during gaming, these because for probably

in again, we that lost the U.S we that very November probably So, about as gaining I over the were aggressive, where maybe see can we're thoughtful share. trend, we in well. But X as share, months some but weren't and some December being

important it's mind. in think I to keep So, that

each. X-star high. on Just accessories, examples about MX But the we as exceptionally you I'll example. and MX those the the that reviews reviews gaming. just mice really you're like over give mentioned of have products, MX keys Bracken an Master X.X both Amazon in XX,XXX X an gaming, tablet like examples and stars asking because in have Those traditional in example, series. keyboards an that products, have XX% is those are We on both which example

the nice of awareness we're in So, how it or call, those great products. for great I we drive is. the lot as innovation, starts still with increasing products marketing opportunity this with more to the have great investing are, what mentioned a experience these products awareness Obviously, mentioned, having on a it because as capability just of Bracken and

of think a more great lot we done big So, doing awareness I But have the that's having we're good to I do a that. drive a very and to it think and focus. job product with starts

supply And chain.

Sorry?

the And chain? supply

Sorry, can the one. you just that state question on

Yes, we didn't quite that. get

supply our supply see shaping? still you You mean, mice … but some were your do demand for keyboards, Yes, short said how I and we in for product of

the and biggest Mostly gaming on also wheels on probably source we're keyboards parts.

I maybe as think well. a bit on mice,

strength I BXB I'm office been probably sort think offices think even good other there. at though by times. I we fuller have mean, the not in It's at capacity. did reopened of to your large looking channel, I see and

been are of a thinking certain some and on that we're So, with while. some products. for these these BXB us still of sort put demand -- about in But pickup really think pressure headwinds. of we've seen on kind think I I It's most

for been to steps through things taking anything to situation? I Bracken, And you we're So, battling balance supply the secure to know, have on the sheet that and of it. try using supply tough those there don't had some find,

in in availability look, we've No, spots, component I still and think, tight particular. semiconductors, got

Yes.

And are probably going to stay with us while. a for

done can we go year, around I think as got work and to that's with into while. can for next the to And a decided that that we've we're to live going in we best the it expect So, we as we've past. do we

Yes.

Jürgen I'll to on question back think too about R&D. I come that

One of have on R&D the second in investing been sourcing. things that we a

Absolutely.

supply we So, existing year want our I invested Bracken how into think in insurance we products where of as about by laid R&D, this spend out invest sourcing. to think strategically have R&D we and more second

So, increase I industry in more our in see of think sourcing. able the an probably positively R&D to will second than we'll we as some be availability rather shift towards the semiconductors, improves new productivity, on innovation resources just because

Thank Okay, good. you.

you, Thank Jürgen. office Hope that fills soon. up

Yes, we'll see. Not soon, I guess.

to hand comes would please. or It's next a The reminder, from your a chat send Suisse Serge, if you question. me ask a Credit question like raise friendly

Serge. Hi,

Good everybody. morning, Good Good have Nicole. question. would Yes. VC Well, morning, first morning, gentlemen. I

could products, here moving available sales if on have you're Probably but products less VC? sales companies, also lagging AudioStation direct that on give I you are more of especially see more more available to still in solution. webcam, [ph] webcams, supply us seen the or only enterprise update here? is you for less in And it in you some other VC, where the the the chain products on Is I'm XXXX it that limited can headset or supply like room flavor transition the start consumer-oriented have mentioned currently. soon, very You channel, or when you

be think Yes, lower of stronger conference webcams sales, anything wouldn't will a people in going is I going think Let mix they're Nate, I And video rethink office, turmoil. It's finish. where lot the need, rooms like footprints I we're seeing, do and the can be think to thaw be even in the both going interpret people other sales of much there's over more -- sales me there offices need, start, which opening ones. to cams really how meeting the you offices, be do many restructuring time. I then mentioned rooms, to many need, as are are that I conference is days to we going than closing of strong. how the everywhere to -- seeing early the offices how and we're and The starting think earlier, their people you

we're has that think of us excited the video we're early I that. days ahead seeing of of thaw, super lot and a in about enablement it that So, room conference and

see to you're that starting So, double-digit growth.

remember, XXXX. ago webcam while side, it's the down on versus versus way hand, up other way, it's the way, On year

So numbers. those are pretty heavy

they're actually said, flat in units. Nate As

So, actually at not it's down all.

years they to And we're terms say in both really Nate, the that the look I take people future strong of just of video. for you using in. pretty So, would this ahead want number question? the is of rest the

[multiple speakers]. the Well, now I remember can't

the enterprise yes. channel, On

are [multiple of force. enablement our how doing Yes, speakers] sales we

Yes.

And procurement in addition. companies,

Yes.

Yes. Also, mean, we're sales. to area of build enterprise I out listen, for us. -- the the the focus is I continuing are sales cross capability, we sales, big inside think direct selling across portfolio another

had we're But Huge. on it's things. NBC of things. A starting interesting better think quarters days see coverage, some XXX% we these on, -- we're still web of to better Bracken's ago, webcams. the with those year pipeline forming, on point, XXX%, kind I early [ph]. growth with had types think on of we XXX just I metrics cameras

that to didn't and the in post-pandemic, you'll Serge. the seen we've think Don't think as exist video that really have people really there. know off in just it's something video think, when I all not future, make I office, in at the So, more yet. I office, think say happen, but pre-pandemic, lot desk And will I point, take exist come I the back just into future the again, I'll the that'll going think a of

it's the But at us and and in office in FY video I trend. good that for opportunity 'XX 'XX. good home, think everywhere

And so, still anything add much And on that the but It's -- investments yes, it. know, for we're more don’t in making I to investment, don't have global I coverage. a you you'd add I that? really into know that's still Bracken, really

way. long a [Indiscernible]

expanded years go largest operating way. the like our coverage the we're a enterprises. where We're we company But We've line. X to are directly on We into were have I really at than feel trend still XXX% very, we feel good We ways ago. our very different about

Yes.

is probably couple years us the addition, I have forward? what's years. Select. or noticed that success or Logitech and X the the contracts, some This what going is us did with signed Okay, of you happening there? Give Can is already incremental in service have you What the X contract give of customers you launched …

If so gave just you but we growth very, very rates you quarter-over-quarter, on be small a excited, base. they're

for going mean Logitech forward? what Of But course. does this

office. No, I is, all, and they aren't to users over think case, it's we bring can think sure them the first services now, that very everything our they have, want products, have getting long-term we game It's And which In of then when extend the that customers plan our we time. they in services out buy we those that to it's part make need. of a exciting.

and revenue a recurring them. for famous for us the better experience So,

that And so, it think the feeling want exciting. have it. Day, We'll days, we're I at March. be is don't going talk excited in about I'm But It's I about where it more to And now. a early for I to optimistic Investor overstate Analyst future. it's

hear So, to I invite and you, Serge, come more.

Happy to promise. because enough activities make to channels, that quite the the appears probably availability of join, have [indiscernible] are they impression also And position that one, Bracken. so in any didn't were the I even had last not low a and products in promotional

going this Christmas, cash the with So, and January because all what expect you the a the quarter typical then especially do is into from now get really fight. March vouchers to and it's kids promotional quarter,

promotional -- this is the quarter-over-quarter? quarter, do So, see now yes, in you more mean what activities does current or

… that I or want You to take

think QX. QX kind to were promotional Yes, I of levels similar

You really to go have in by category. and look

that's see in but we've from Not definitely sure … yet January, what holiday, gaming, in increased atypical. during some Serge. competitors think seen I did not But we promotion the

Yes.

to promotions strategy to way level, and think over really try impact the all to Again, There in … let's was few be, drive years the on to healthier QX for changing change I a company from I long-term. for to it QX. last us to and wasn't the let's and drive promotion drive think top really there. business line and not at rely that's at margin continues marketing our the a a invest awareness, the the grow less

long-term, So, both short-term in the and that's our the strategy.

believe. Logitech then what for this and for acquisition? mean call for an this stop. Or mice wants the Microsoft or a I opportunity from you Blizzard, -- more have with reach to in Activision have, you what Okay, is is last and [indiscernible] But a it first keyboards, the you one, acquire what as does example, impression are threat? you still

Well, I that gaming content say -- certainly it's wouldn't threat. There a and business gaming content the that's drives our business. business

business better and attracted be content more created the long-term. stronger innovation our is So, in to, the people that are the the over the gaming, bigger will

and content. keep great don't, they in together. I coming with big Whether potentially two is Microsoft leaders super them to So, gaming do and already Activision or have going It's it's Blizzard been to think inevitable. see that growing they exciting

Okay. much. [Indiscernible]. so Thanks

Thanks, Serge.

Serge. Thank you. much. Thanks, Thanks so

Welcome.

The from Mueller ZKB next Andreas is please. from question

Hey, Andreas.

Hi, Andreas.

missing are We you.

on. when come wondering you're We to going are

Hello. Yes.

me got of video the couple a hi. on. questions, let I've Just

Great.

selection if is here Amazon. experience is One you pledge really bit or about in figures this demand friendly mean, is a Can that driving share people e-shops such any you as choose what here? it? I can have climate any

Yes.

a one Let's take at them time.

one. industry. our data would climate which are So, and that, I'll really in answer the any no, edge big have now we out have that that that I we're is -- say practices, leading don't right sales leading think policies answer The we getting and of

about of interest growing also There it to understanding a need we over now. believe certainly do. the general kind that people, doing and is do business Y, because be But Gen among the going we right just climate that's that in Gen a think time. a So, it's we're to and and builder the to there's younger a builder brand Z thing something we

but the to several believe to the only the And over years. the do it'll to next I for it's thing And think right going be so, do, we not business. right that's prove out thing

are of that more line? you do forward place same still supply demand pass is on gone is mean on, would have And able Okay. factors with been if I can you expect going prices, the if, kind the And that the at two say, these in I pass remember, that's further then increases, quarters in to least. strategy. in -- last, you price or say, How what also believe I on be

hand with start then I'll you. Nate, I'll it that, to off

think. prices I quarters, increase think promotion. the had to the in those last practices promotion best And in it's hope several brand, right for our our to builds right expansion way investment business And been through onward. we've which demand more of more long-term to which trying to and is the drive capability the lower time mentioned other efficiently, to is Nate and the build we are I continue way,

broad I think in that, we've increases mentioned, you of and do impact and industry, cost direct just see eye We've increases selected good increases, stay. keep at inflation the be. broad raising In we've here terms looks price about talked only increases, price when whole last Nate We're pretty hits there's decreases cost that cost, or an like if some even -- call, that we'll eventually to to a related and on price done now we the to it's prices and need begun.

changes or of during world. the in a that periods, different especially inflationary history have of during parts currency We doing

that, see we're it path. and starting think we're I goes. So, that We'll down prepared for where

the charges on see quarter, How really also in my some ending business would did maybe was Or question that, some say, this had charges forward? is revenue last you and last you Then basically? with for example, going Jaybird. much

a one. $X about million Yes, quarter. the I Really revenue can take was that

of all. So, terms that in some And at hit cost it had really goods, the charges, GAAP some in was material things OpEx. also we in things that yes, not hit and of

to about terms to launch and decided In other of had decided launch. -- we products, we goods, cost product inventory we million $X related our of to not component not of and write-offs

cancellation, There's quarter So this bit things of us down to $X GAAP million -- a that goods. hit this contract in in also some cost OpEx, restructuring, million for little like which little of $X that. us hit about bit quarter, is only a about of

you Thank much. very Okay.

Andreas. Thanks,

The next question comes from D.A. Davidson, Franco Granada.

Hi, Franco.

ask Hi. questions here. Good for a morning, everyone. me Thanks couple letting

one So, question. picture and big I have one product

Okay.

as introduced capture mentioned So, really of pop earlier, to as recently you Bracken, you part your keys your efforts a market. broader

I what with in wondering around revolving And really traction there? metaverse. of then are whole this nowadays of getting was headlines most the it gaming, concept kind So, secondly, you

Yes.

on, shape perhaps even some you'll or a type this introductions? trying materials, marketing so, of product form, And or be trend to is on capitalize some

most add as has a think expand reach always and it but know a are super sign I tracks have that me we've we ever so especially It's in highest me, had get working growing. the the just they We a that And think we've and good. strong. pre-orders not that don't expanding of Glow. Yes, we to I about, keys, Litra up good this to VC, product been I people here, had. the so tons it writing asking the where It's mean, know can good. really very on I've And announced going I go that's the we'll keep one world, couple usually And and been I launched times on is done metaverse I I'd out that. years metaverse, a and see call. I've product it's I we've with I it's yes, the people anecdotes brought we've The as think people in that. It space in, doesn't virtually. of are do we metaverse be VR years, to describing completely AR we going to what to quietly part the reception around It's well. as also It's is that. for turn but it. people the AR online, first even only what VR the also if keep plus. people had for China. -- very the are when going has pop have about been X we're think what excited be and good, numbers to do growing,

the that very action. going We're middle to of certainly about we're So, in be it. excited

potential it's every a … us think for creator in way I

Thanks. it. Appreciate

[indiscernible] products, … marketing everything.

Absolutely. Thanks.

Franco. Thanks,

The last Kepler. question comes from Torsten,

Torsten, hello.

and everybody Hello, Quite side. surprise this congratulations a from Yes. also morning. my nice

see you you Now, just rely going on you I that in building quickly, close equity. brand more invest promotion, said forward brand want less want to to

has about relative to campaign awareness, measurable DEFY also unguarded your marketing already positioning price LOGIC mistaken ago, led [ph] search has your I'm improvements? if a brands? any started, brand Now not perception of your year Say

we're measuring we’ve KPIs Yes, now.

but which give view I now, it's months dramatically, somewhat us for we sub-XX brand LOGIC of a awareness, it you historically much What and But especially X data is really not among better driven. answer. was to so, you the say brand, into our kind positive the we'll It insight is in just We Probably us we of group terms the a that. like brand early campaign. mean, consumer the the which anecdotal, possible fold. pretty it's And and have affects great effect on ask DEFY looks campaign DEFY to them a awareness our LOGIC I goal. give kind there too into really from are underdeveloped them were if looks a do have targeting seem younger the in would to little set, of which bring more direct promising. does little that

is of with it investment Internet there. like are return marketing may be is engine it's online digital great pockets And you it's almost ratio and activity classified also That kind whether familiar on we ongoing marketing, sales We of of people on our It that on a elevated a very few marketing gaming spending, real spend the are with. to we we’ve the and ad measurable the seeing -- we call looks direct definitely investing are -- there. spending going is money has gaming. spending high, very also business category that ROI over -- that spending we the brand do, In And product keep like lot significantly past years. marketing.

for the see the and across getting keep monitoring, So, measuring it what we board, are we to back. sure amount and we're we making right going are spending opportunity

Thanks. clear. Very

you. Thank

Torsten. Thanks,

everyone. Thanks. That’s questions. Thank comments? the of you end our any Bracken,

are be quarter. we've just and the not I and let think secular beginning trends be into probably slope ready going to and many they so world. feels much. to an right are and you to to all XXXX, and of Talk innovate you. these as opportunities to long-term be for Logitech in time all wonderful think fall start the And really -- like so exciting this I a right the grow going part been ahead pandemic. up. ahead in and of we things going to it are really it’s out, down of we of the for it's left, we at see to No, Thanks for It's Thanks like center

Thank you.