Logitech International (LOGI) 3 May 222022 Q4 Earnings call transcript

All right. Good morning, good afternoon, everyone and welcome to Logitech's Video Call to discuss our Financial Results for the Fourth Quarter and Full Fiscal Year of 2022.

Joining us today on the call are Bracken Darrell, our President and CEO; and Nate Olmstead, our CFO.

During this call we will make forward-looking statements including with respect to future operating results under the Safe Harbor of the Private Securities Litigation Re Act of 1995.

We are making these statements based on our views only as of today. materially. differ could results Actual And we of or any to no statements. obligation these update revise undertake

finally prepared We non-GAAP GAAP call also year-over-year encourage Relations and in net With you reconciliation about will discuss use factors our Investor on between in find are you is Sales our and our these a are call over comparisons and that can release press And Good recent filings page materials could call do non-GAAP and these webcast reports a review and financial non-GAAP to and of quarterly website. now our the well annual filings. noted, as being materials website. for SEC constant available These will slides turn carefully. results the this currency. We our at impact Bracken. information financial sales. Bracken. And be with all replay in that, to available remarks and as measures unless results. this of are our will and a I of and most periods including recorded results morning, and the subsequent And otherwise our our between

to year, We year our Coming outstanding did growth net off momentum to tremendous our a and overall marketing areas Logitech portfolio good quarter year that delivered future, bit by delivered invest and on profits in Nate. just we perhaps has across invest joining all best XXXX. Nate financial of I year. of had growth strategic of saw us. development. challenging. posted perspective Good state a gaming, it. in market gains strong our morning, you year product continue environment, share deeper go gross ourselves the geographies, sales in backdrop Nate key an But will and like using categories a overall our In strong morning, we headwind, our start offering business year wanted and and into the and And like continued certainly our XX% to in and consecutive events quarter key Nate challenged strong and for macroeconomic about now teams the fourth Xth defined for fiscal excited I growth, into C&P and and this the thanks despite the performance, the the the of spite and in new to to a of we and as as previous am for details fiscal unpredictable fourth global team's head minute. a so fiscal the world

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performance reflects growing its products company's including markets. product capabilities, continues solid reflects also on to portfolio leading introduce our diverse scale strength the of and and position new global broad our in Our the a that development

is adapt quickly into here growth. and momentum. Logitech. product There our finished In enhance With year and another good disruptions. year in future the development of briefly C&P this productivity, productivity. creative challenges driving to strong set really fiscal on focus ability excited chain to now continues the the with that's for drive Creativity step let keyboards continue to is and navigate XXXX creativity about had the I'm sustainability hybrid year And over that me the industry-wide no and is and at why Hybrid categories: of around incredibly and Our supply future operational to Mice help a with work. workspaces up and us globe. and category so execution debate the we

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we based Finally, them impacts. our we includes that be that four and far and and than of walls The only climate carbon us of as truth ingredients. are in that release this covers offices earlier like this, them. Financial to that story rest We X, carbon initial happen neutral fundamental it's our our called this much components buy intensity in like the quarter and And plastic all beyond as X, recognized of or climate had improvement those the companies use reducing it's leader top in them factories. post-consumer carbon which is of announced purpose On consumers impact score so exceeded our we The were that materials we recycled transport our is committed sustainability our to increasing of a the into negative part at It's European our as XXXX. and we're on product, products, to our being positive X that environmental Scopes nice Times beyond carbon core the carbon by such circularity incorporate on consumer commitment business. just focus of score. us recognized Hardware but carbon like things more products, we

year, used we into share of the the growing calendar do believe as and and Logitech But of going right this result of also believe is products last this up that's businesses the the our for We planet. every During a that to industry-leading consumers materials approach. right. favor shift one product a will recycled thing three

performance turn me Nate for Nate? financial comments let further call on the Now to quarter. our over this

compare to We spend texture ago. as year then in delivered our one and net for and currency for often and were essentially In to promotions, billion, in year QX QX financial full our quite We the year $X.X was results and was reliance in XX% context on categories year, that challenging. provide solid and we sales ongoing this margins and incremental XXX% fiscal an work saw with although the a were while keyboards cost and impressively few some gaming. sequentially share continued down year Gross despite Bracken. Thanks, grew toughest growth many our pointing on we flat freight. devices, remain XXXX quarter headwinds. gaining about results. combos pressures air I'll QX disciplined still environment to minutes we in reduce

year disruptions fiscal levels cost lockdowns. and to of the as for the from higher currency of margins operations from supply due first to unfavorable expected. freight to air ahead quarter Looking as ongoing recover further both down XXXX Profit China flow the to cash could was half COVID we expedite come rates down was due increases as

For sales in our with we turned constant ninth in fiscal consecutive year net up growth XXXX, of X%. year currency

costs we investment planned increased marketing promotional retail as and spend increase and expected out and our to and fiscal C&P for and gross investment earlier, XX% experienced long-term over particularly the component promotional course of level and planned in-store an as within Higher in year. proved mentioned gaming low increase for and As we of In well headwinds. Overall unusually XX.X%, XX%. an margin year was of the XXXX, expected such guidance marketing margin performed this an -- logistics and year. and

delivered invest up to For million, our and emphasis fiscal continuing example, well while XXXX. on our shareholders incremental at share engineering. design profit an was this fiscal dividends. versus improve of to five provided through year ocean And and about is $X.X profit annual the above the the we capabilities times year. over billion product repurchase returned to freight $XXX We cost Operating our beginning guidance marketing, with of

the year Moving X% grew for and in XXXX. marketing categories. portfolio, continued double-digit fiscal was categories. as for and were In in Delivering and combos Pointing year performance keyboards a the a XX% productivity, fiscal record work these QX into off growth growth excellent for and our and year. demand execution up devices creativity strong X% from of year impressive. strong delivered XX% trends year, last QX XX% hybrid drove in Gaming

to wireless in a gaming we collaboration innovative and our with in excellent gaming like position more experienced steering wheels headset XXX% we gaming are mice expanding the after XX% products, PC sales categories in QX leadership and traction categories, than year. segment. declined console gain an beginning lineup pressure and While video growing social last have QX of

more and year. continue collaboration the in XX% year, systems year. the behind expanded than declined growing XXX% category XX% Conference video the digits For was year in QX the a double for after Sales accessories grew tablet product and our and category to for refreshed performance, X% down room lead and cameras other last and portfolio.

government-sponsored saw we driven of keyboards, As our end in expired XXXX. a reminder, GIGA at surge iPad which program, sales year March the through last a education by Japan's

points Excluding in retail digits sales execution. XXXX marketing and GIGA strong year, the program last launches gained in-store through by year we keyboards than fiscal and sales double in share three this category driven more of product grew

speaker and year. mobile XX% declined full sales for QX XX% Our in the

our continue As market opportunities. to noted we reallocate previously, to resources faster-growing

to versus Blue year wearables declines, up primarily and market expanded as XX% headsets these in due and decreased for than audio Our sales Despite and expected. XX% for opportunities sales the QX were Microphones. XX% years more retail ago two

were geographic sales three helps Much diversification of regions. diversification or our our like the manage XXXX, category fiscal grew for year risk. our portfolios, Looking sustained all us regionally in

example, demand, economic disruptions. For in geopolitical against regional softness issues or hedging

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

non-GAAP While to XX% decreased $XXX operating billion. our fiscal expenses up our QX XX% operating year expenses million, were XXXX to by $X.X non-GAAP

improvements. sales reflective of operational product and development As this is we continued marketing investment coverage, stated in before,

flow the QX and approximately exposure the level us by year balance labor cash year, was and our ended a $XXX increased our of finally, XX% we we from improve operations with helps cash example, in our For more last to $X.X positive disruptions. billion. of factory than costs, the reduces over automation And reduce which million, quality,

year of this the about this fiscal and through end year. ended last million to than returned as balance million repurchases year, lower $XXX we cash shareholders fiscal $XXX Our dividends share

for demand cycle For our forecast cash products. to and This the driven year, XX disruptions, our conversion of fluctuations some conversion days. higher to days, by cycle, primarily industry-wide chain increase our was supply inventory increased due

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

noted At year of At fiscal digits million of in about to non-GAAP on up and guidance. minute a and $XXX was revenue year outlook. its XXXX $XXX million Ukraine be Analyst spend our revenue and net Russia guided Russian in mid-single year that days. March, income first and Day time, was we of X% from invasion I'll to XXXX sales fiscal that full our our included the in Finally, was operating Ukraine

this expect war Russia with year. and ongoing full fiscal sign no the not Ukraine near-term do now, of As in we of for and resolution sales is the in

conditions. situation Russia-Ukraine market We monitor the continue broader and challenging to potentially

Given year and I Bracken? expected non-GAAP X% Bracken between grow will to year and With this, over that, for hand million. full revenue to operating some we X% be $XXX between $XXX now million expect remarks. full to is and income closing

Thank of delivered you, market scale, many of and the on Nate. our sustained across in strong In We ninth delivered categories year growth, closing, last a accomplishments, XX% consecutive sales this gains year growth. year's growth record we sales share portfolio. key top

beat innovative esports agility, over profit against $XXX future. growth long-term. those in hybrid also We're video digital target strong portfolio. original on and excited work trends the Despite and by to content operational I'm focus year-over-year million. with results, riding continue excellence deliver our We'll for creation. super is We collaboration our diverse the a secular

continuing I really all Before at terrific a and for to want the deliver employees I navigating market thank while of call open our and Q&A, dynamic challenging to to environment. results, partners times

open can the really to work hard QX fiscal Nate, you the Thanks XXXX. entire pay proud questions. line and of year off, both we I'm and continues all. Your to for

Nate. portion the call Thanks, of start Thanks, Q&A the now. Great. Bracken. We'll

see go you. Goldman question to first Duval Sachs. Alex, let's Alex Thanks. with our good from For

Hey, Alex.

Alex. Hey,

for and strong today congrats on quarter. the everyone results the Hi Yes.

a had clarify year reason the of firstly Just just on for you change. events your Eastern questions, as in Europe updated looks it cited full like the couple quick guidance, to geopolitical

Just we wanted drivers think about to there or the any you're sort investors in secondly, change a if terms the clarify example, and bit PC there. seeing? is means that about, how lockdowns growth Logitech. important periods data in if that's which big of been the in current And less COVID perhaps what that than some and only of underlying reason for situation China is, periods indicates asking have prior the in little For

So do relevant growth company directly beat to your yearly how think for thinking actually you to that keyboards given thanks. example, PC should on of you be pointing we that? Many unit expectations is extent devices what today sort and about

the Let take then, second one Nate… and I'll let me

Yeah.

Sounds good.

PC is relevant growth. how …

I PC or think from market we years six ago. disconnected the seven

COVID. we it really but over of on term be so business. the long the it focus And would base. driver our base dramatically installed key a during really the considering expanded we stopped I guess, installed And

a to we've So workspaces and lot got enable. of upgrade

So we relevant. don't particularly see it as

let think Yeah, thinking just about on how guidance the Great. I highlight this was Alex. me I

consider. I think to there's, many always things

Some harder and think I others to are sales to and the easier that's as probably quantify. easier right to subjective and quantify And certainly now Russia in objective Ukraine case are quantify. more are very and the well. Direct

could logistics, European of follow-on about X% overall certainly Although, the company. of have effects the that about things being that which are direct demand, certain is kind sales what oil this less the than like we talked prices, conflict on

and challenges just though, track now to we broadly, costs, inflation. think talked year. remarks his we have I we logistics, like about things disruptions, that more every well in currency, prepared do mean and other right I as have Bracken like those monitor consider

You China COVID shutdown. mentioned the

examples to that some and think harder do. closely. have just we really we And of monitor what are, quantify, are that's track but really these things I good to frankly

over was We supply it's example initial an of the things intertwined. our we sometimes think don't have I ago, know start will challenge. use a If perception these play also years little big of how they're a I of interesting. out that how some as at COVID, two

as have was Our into factory how then we it had around to demand and a our wow of a we coming in lot planning And that. a result lot of do adapt turned recover from to was shutdown. of that. this And quickly we,

we very I we said, So I a the number change as And and think which today's you like similar adapt, of but some is Bracken quantify environment operate regularly said, of to is course factors business really think and the that. to than There others, to do, track are just compete. I reality easier consider. that have are

And I that's of different. year So this kind think time. is how I every about guidance no think

thanks. Many

you. Thank

Alex. Thanks,

up Next JPMorgan please. Chung Paul from

Hey Paul.

Paul. Hi

Hi. Hey

So, how's going? it

Great.

guess see kind growth? a XXXX XQ we tough And after I lapping here? follow-up… XXXX now very BC, mix you should And of got a first a forward into the comp evolving X% So expect look but do with up as on we XX% how here still then strong I've that in HP getting competition

Let me latter jump of start one this I'll let in the you Nate. and half

about We portfolio. super that the doing underlying demand around First are product of the we've looks all, throughout days. our digits good And The we're and peripherals to for bullish love just double still strong and that this world. got cool things well BC. year super coming really and was think grew services year offer early we and conference starting also super cams we're we've around that, it we are got

good upgrading really, imagine just one and really coming. higher and environment. hard It's And on so companies in in -- imagine general. to offices it's I way hard putting in. without a those feel back So back video yesterday. video their we and and they're hard just video, into was more to different going It's it's

the because thing this range the terms highlight our diverse with year direction in it that the BC. BC, taking possible been consumer, is think of here. whether experience in it's gaming our I all gets direct in always end whatever expectations add bit our I impact play portfolio, little now think weaker we XX% saw. always expectations, even the mentioned, just the for think you more to as We've And like and certainly that But of I played portfolio we that of the on you lucky have or want diversity will a and I'm think it's is office. us. than And you really our which Nate? way consumer confident stronger that I'd portfolio had of moderated I Do X%, up more kind that from anything to growth our some into favor In growth

Yeah. I'd like throughout I guess sense. XXXX conference particularly to as strong performance of the digit cam. sell-through in in It and year net that just mean, grew strength highlight sales and was double the digits. FY I double on it Americas sequentially And the actually well. consistent grew

and out to think is the way planning longer good on I looking about it. and But horizon, by So be It just very like sometimes the about you we those timing some very demand pipeline a business again the could we're -- said, different different trends deals. the time close build to Bracken a takes have think little investing which bit trends of and and region. feel

lastly a buybacks? dividends of accelerated since that free while it's Should great. has Okay, bulk capital material we year. pro investments, and acquisition. one-time inorganic been year? in similar going expect then some working free And then pace flow then see more when you maybe opportunities, to you've XXXX of to a done harvesting quite buybacks this expect expect And the of a do your cash of, cash kind and on forma the your pace kind And you see do flow, still for down, come profit operating

thoughts there? So Thanks. just any

Okay.

take to those. try me Let

think -- okay. that’s I So,

the You lost was on I me -- with. was starting was again the first question? one the That what

Just operating costs.

Yeah.

we'll that's the flow quarter uncertainty done out think some investments. terms And you CapEx. net I do things the really I inventory. use just whether operating not to capital, one-time we've it's of for the I about how been working lot it. about right even to gotten capital flow, be a it and this strategic just-in-time about in where there and think enough on is and adjustment on areas life is and bit is right to and very linearity it long sheet time way to So think the not us that's cycles. as to the continue and little it's be well have clarify free Working or that's managing times in margins. out that helpful that of timing year. these to There's played the to there's of what have component way end cost some and the small cash that. in think categories got it's with supporting high. are you we the of like still been we've a a video the cash that's long you products The longer to about on think have lead the there side collaboration out because And like year one thoughtful balance pretty Cash, a shortages strong business But stock the mentioned,

of sense port some That I think capital probably end benefit year, that levels we're make to I because to bit a think But quickly our moving leading us position and changes. just and higher And inventory. made we'll before. demand the with working and towards see relative carrying manufacturing down so to be quickly so until obviously little really see inventory, just appropriate it again things disruptions now a too said, like it's the bit. a so we'd delays resolve higher reduce far little invested inventory that are prepandemic it's us that in example, as it's right come things or running we can our the we manage for than our those in as But what did some change of in move sure things supply themselves, so to such. levels for many Paul, overall to of there's that But out don't like distribution bit levels see to to hard inventory I centers I

do I always we good prioritize M&A deals deals cash, we've We probably, may a And of sheet. I us. for well. strategy see be which On strategic And other the it's or several actually similar and uses that of of to the use you're at mean have talked I for think balance make it's whether portfolio about, done balance sheet we the small that but that yes, other and good where granted sense a about. a think important us. the things, the some they're they're these additions news headline home of use that talking as I'm very using nice here not light

then dividends. with prioritize repurchases where and continue and take it sense share makes we'll would M&A balanced say I to So, a approach

Yes.

me add that Let last one.

market we're I done small Nate's always several mentioned he in and deals. think, we've and the -- right

But can at doing we If and sense, into last something us get we've think we're makes up, of way doing. need about go like a sometimes to the of faster can off strong. thinking it do haven't buy go here I we seen we ground in We of deliver years I'm can kind not engine been crossed that's but We some to where to small really long-term And feel they're innovation X.X plays accelerate to don't threshold our stop thing looking built by help really our you We years, buying bigger things really on we've kind things. new is kind think, targets. things the is the without we'll innovation. Another see going do what that the we're two it do way it. it. ingredient that them,

All a lot. right. Thanks

Thank you.

Paul. Thanks,

Next Paul. Thanks, Asiya [Operator Merchant Citi. is from up Instructions]

the great morning the for for good results and you quarter. opportunity Thank everyone. Hi,

the So little outlook I'm just to on a bit. going focus

You guys and the from Ukraine. talk Russia quantifiable impact about

them gross across And other of no or pretty could that keyboards to strong spread drivers region the I a just are mean, ocean And it or to inventory I clarification or then follow-up, of what gives said outside sales BC levels solid. kind on referred come are portfolio, demand then just geos? as that okay, should the right there drivers now guidance was indicators Kind from the to peripherals. of freight, this underlying confidence that they Bracken secular long-term that you're gaming Air would here clarify but first So remained that freight suggest a mentioned obviously, the guys the and margins, say. I think the the at But Nate includes confidence that in geo-focused you down that. it's whether as watching of remains that more of point, holding. this you there is one high that, half. is

So, could costs that rising provide some offset to freight Thank you. just the here?

Let you the answer me next Nate, let of part jump into I'll that one.

Russia-Ukraine question a conflict borders. feel has Your think the itself we on that like obviously, I definable problem that's

caused end say things of got to we So, there it some that -- will always with all you to than for maybe This us dot, are currency what dot. dots dot, have go year Everything you kind normal. will several every inflation more the I we else dot, happen them link of easy can quantify. tail year are COVID, that that but dot, then happen COVID got would thing. and into you've makes very by is and what with swings also and

for there normal think I maybe that like more a But this we've years. doing So, year a except -- little XX used them. we're feels of to that been are bit

I being at pretty very Nate at adjusting adjusting up being good need really and direction and to. said, being we're might start be going we're good the news often being appropriately as that news or think start it's things amazing to So, end news in good flip to other. bad to try up and one And where we good They start news. bad end

categories. about super excited year. So, We're it's early in the our

stronger. we dynamics really underlying You our see if really, anything feel And of underlying opening. there's I to very like make Those getting good. categories. really the though. away long-term. I that you feel changes I four necessarily detect really dynamics any feel don't from to And a underlying you look hard long-term anything changed mean this things I tried really mean predict it's really, long-term really change the look that's can't very, anything the asked short-term in can't that's hard it's strong while to about It's away. just trends really point good. us confidence. give

So, to as that. Nate? you about add guess I'd much as that's say I anything Do want

margin. a you just No, the part. I the I'll clean bit little covered on think first up

half. similar at first said So, second to will I half think AID, I I than what be think the lower margins

to I inventory. cost mean the that ahead mentioned the want of of You increases. part is buy is inventory you strategy

been short has extent the a to more have holding that think a inventory bit advantage. So us I costs rising little given

whether just from year's can't currency increases cost we worth adapt be bit with a some and more buy work margins We're seeing, cost of some in around what best now some You but first those little finding of delayed some the new our types will we're of right a the we're increases bit long way yes, adjusting avoided inflation little obviously that it to a think can a pressured see our here from prices pressure doing I we've appropriately. it's things. with areas suppliers, that and or little bit. But half probably to and

as every things visibility Just we we year of some and job will to along and have things to just and we said, the like operating keep and into good that. some Bracken and change other executing a go we have year do goes

you. Thank Okay.

you, Thank Asiya.

Great.

Next Stanley. Morgan up Hey Erik Woodring from Erik. is

Hey How are you? Erik.

morning Good how good, guys. are guys? you Good,

Good.

then maybe versus be bottlenecks When maybe that quarter? the Has impact Is to components? those the or And are March trying I and at for just is production or the having production top. I'll clarification to April across own factory? a you COVID some in this Maybe change the follow-up. have a impacting China start quarter? understand there just talk obviously And supply pace tailwind might just an in the any a at of Board. sourcing which question. that you lockdowns about been of disruptions So, clarify general loosening your becoming Just

take Nate? you going Are to happy one I'm to. that

as Eric. of portion we production. lot dynamic that a our obviously use very say our you partners. good I factory We of there would own Again know have handles we

are makes try it one to about along. a whole got the of things And I of keep that's you supply day-to-day to that very things all much chain. chain links strong. think one There is a chain is the it that very just and challenging

one around towards government's it's lockdown. to So, I have signs Beijing just is there's we'll long-term is going has idea I plays on -- one no year. how out. China short I of the saw in maybe stances have some work the go throughout part this distribution. going chase this. it. of positive reopening monitor the things And you been has of and can work really I that's and some you're way say it team, monitoring it I think operations have some you we're closely and around with to an what days Chinese That strategy see to be taken that And how to out. But see some then just is have recent will those supply, think we that just is we're that There when our those been to to things some frankly, tracking things recently If trying some all of that warehouses just on it. the term, plays

I if add. just Erik, can

supply I'm with whole chain Difficulty] like impressed China. [Technical feel team probably our but I so You tell team too in much, our

world magic outperformed me say, that, kind how it's in And of they it. of a continue we've a little to I to every think time. sometimes done we've but single competitive set do the really I'd bit

exactly else. disruption optimistic that know not about well seeing any what don't major, we'll of in major relative manage really a I to But face but pretty we'll kind. so everybody And I'm sure there, I'm

I versus the And with No. on would peers. outperformance agree you

that the you see think data. I in

currency this to or challenging we its FX as of more a asked managing environment? definitely should strengthening actions let's how to potential just in profitability, a about today about order you of might need light maybe risk in any Logitech help So international kind maybe then call dollar, basically there. take markets, follow-up, thinking it broadly, how pricing of maintain is in in think And light

Yeah. it an you relative delay Erik, if can And versus us what was share it a you the years our advantage the know and the then the in Euro there strengthened we major since And leader have even XXXX one grown don't there, currency following we I of saw we obviously, ago. two stayed when I frac. or what have do of can dramatically bigger that dramatically. can't about market there's then in now market advantages dollar had we Remnimbi our remember And XXXX year the swing, we're same. the were you shares a had most categories. was is but to

that the be to pricing and level has though. of to always make not you're to term not share position has going I like saw short costs We're feel it. greedy. Market So that I really we of extent both need trying extracting term, that like our we from and to pricing a standpoint term its need long about casual do in short And you sure the value long-term. and cost to should you get kind

the that we're the within here already to we've And going some they're because put put the suspect in that a if to would pricing in. think stay through business look through our I more, like we're of I do So size position same. categories and think dynamics I of we'll the

point… also I'd

Okay. Yeah.

we've as well. pricing your building the with of products importance brand, the of awareness up your for making strategies hand course the in marketing raising been goes the to to like investments hand of …Erik things value

So again, our it's investment that. difficult and point and relationship directionally, But think how marketing about and helpful that's about to think fine put quantify and we with a with how its we consistent our about certainly strategy pricing. long-term

margins months? maybe down And guide could last guided you one you income, operating If of about and sneak right. slightly a are how quick kind All we where to revenue just of the I with you get in midpoint could scenario Nate. if primarily think operating OpEx think one for your still about you think margins about gross And about it help or that that's XX margins kind think the you we being gross Should as maybe just and versus trade-off next driving invest, me. to me of able the year-over-year. of

guys. thanks, So

the pressures you promotional, be manage have year. -- we'll makes don't how like revenue least actually much those side. than we're past to growth marketing. so faster think, I sense in year happens margin over year, OpEx it ranges you'll Bracken mean, those. where a years, ago. there's we doesn't, year, be -- didn't on said, the of Like investment where on see believe full be Again, going Erik. investing both this looking at a I gross Well, We in this what years won't think will see I be us couple don't should where out last or two to But we for it with I

innovation opportunities what's engineering, important capturing the that really and the key we value is, that long-term things think of I want have. are to sustain in investment we to

Great. Thank you, guys.

Thank you.

Appreciate it, you. Thank Erik.

Next up Capital. Ananda with Loop

Hi, Ananda.

guys. morning. Good Yes. Thanks, yes. Hey,

-- Good to two you good morning. guys. morning, good Just see

ones quick could. I for two me, if Just

XXXX your goes sort be So supply gave are outlook, that forecast would fiscal incremental what, sort collection to be to macro what revised you and or lockdowns, ago. you from what into initial might dynamics fiscal your cetera, days so the XX fiscal of days incremental if XX outlook? of your just thinking regards incremental XXXX since -- and anything, the with guys et chain back and of to Going consider over last

want do to I'll Nate, that take you afterward? one and come

of probably I each I come China ago, I the variants out. don't incremental. about may we've China think I certainly adapted, certainly Bracken's are the the XX like that's I I lockdowns. be COVID guess, don't only environment seems don't the I Bracken's only just one frankly, there that's days, to trending new point. any adapt, impact just, -- know The started in. And mean, it's the think last But mean, lockdowns think But always to I kind been point over China would of -- positive. we're know, that's more there things to it was anywhere mean, know. learned out that's it or could Ananda, But new out we hope that XX we've and days have and the don't in to been I there's case. we I think COVID think, thing threat that and occurring wasn't I what

great. Okay, super actually. helpful, That's

So, a responsible I everything initial dimensioned regards feel to still for inside guess, else with expectations? that you also is is say that, balance to your like

nothing I changed. say wouldn't has

them. a this mean, right? I point outlook period and There again. have that's want are to We're stress all think a year, important. giving consider of think, time just it's substantially we to So and to I I an contained the track the that's long keep things reflected we of the for in business do, I as going to today. change, see we it, things markets are outlook. in on to adapt, in we trends the we're we've of will how always information that kind That's based But quarter. what going update each many

I Nate, that play out? give social helpful. can traction I it how -- be gaining super some prepared remarks, you a gaming if traction? it in follow-up. the some you over And, think that's And context talked the about, have just around you Well, quick guess, may and who been like in incremental could how incremental time, that to segment

I in think, Why very incremental. don't jump I Nate? there,

to women a sort advocation. went you really was the States the was watched in -- now. it's And gaming. men think, a and of sport I if popular, United people natural it's of big as a -- roll are to the it's US, and physical football a it everybody's playing -- football women boys even many men's understood it. sport NFL and back when think became in was there forward outcome and when them Men started I very with There's today sport. That's toward if now, more you playing

for person that say to is super in gaming is popular. the people, it And the it else. to and really with evolution wouldn't I of becoming think of other beat natural know gamer is, try the that not don't fastest-growing I surprises of your know excited I something go that. the I regardless it's probably, it's casual. think in identity, exactly, somebody just is to we're more in us I comes connect segment becoming casual incremental. the but And -- I So, And more what's about happening us. and bet it's

into happening spaces. We place. it's taking we're those expect really see to which products launch in the we They're means that it right but off to nice happen, as

think gaming have the What guys back, but gaming, it prepared when some. began might use or what -- you I language remarks when guys you that you guys applications language to social, specific was like I when And smidge platform back mean in social your I gaming language? does social specific say wrong, -- are platform that. something of like you you use sort that are doing? What describing you specifically going

say social We gamers. certainly

six like the an We Even big gaming can had And performances just mean example, we you was created they're who the million how weekend, which lot so away of playing on people so, just before. exist occurring this exactly gamers. with first And event you metaverse, of just just a in different lot in that didn't Roblox, first from so -- core give live far far. isn't cartoon attended this which a I awards a you first just I'll there's shows performers format. gaming. get different over had are things And video you that's by Liza, We by -- games a based in all the the the know, we that playing those of live on. platforms format,

how So And we've far to how it's to come. only you see this go. imagine remarkable far is can going of kind

to. and That's are referring in games game and experience. experience, completely playing which secondary and happening games going social the is what the to people we're to that So really talking are chatting social there really and meet

context. that Appreciate

Thanks, Ananda.

Thank Ananda. you,

guys. Thanks,

Joern, good Ananda see Thanks, Next Joern you. from UBS. to up,

Joern. Hey,

taking my expectations. short falling Hi, The and little see a one COVID the pleased questions. on There Bracken year And Nate. be of bit were video impacts. and you hi, was your thanks Nate. will Hi, conferencing. to first Good high for

said between and seems COVID slides also some we much environment better. expensive X% you is restrictions XX%. likely Despite Europe demand the XXXX, could Now becoming pent-up maybe are the more below becoming and business Asia, ease fiscal be also and year to to

has So video it's why fiscal three this Why the years? mice not the very volumes can last US, developed this line in three, you the business if much. in an really keyboard in Thanks in question allow gaming maybe on us conferencing four, and how versus update from me, months give And revenue and XXXX. should then five grow on and in four second grow should year Europe? you growing gaming XXXX the

Yeah.

we'll Let me take you take going second I'll I'm -- come if the can see the first one which back. one, to Nate.

above. it be yes said could the it we side, could On VC below be

don't we're suddenly all. think we I VC that So pessimistic at to meant about suggest

Okay.

good really you if feel We about. one introductory to remarks. answer misled the I'm of questions. not I'm I my in sorry

see I video expect think think fall to going into I it's out and of do things as the I lots things offices around world.

more we're think about happening I eyed clear webcams. to what's

we're -- pretty smaller strong. but a that's I overall think big market of webcams relatively not our not going business. VC conference predicting But are the they're growth, looks cam stable part but to a

range Yes. was I we I I Jorn. clarifying that mean fits certainly mean the Bracken. be Thanks of probably that, to to imply outside the didn't for it mostly gave. that possible distribution either range but think within

your the off those And head question in top mice numbers gaming Do on have of US. was Nate? Yes. other on the the you

gaming was mice or it Was it?

Gaming yes. mice

Gaming mice and keyboards yes.

Yes. question And is? your

Europe up We trend General versus can follow later. also Europe. the just trend general versus

nothing kind it's than and up. data trend that's yes -- on jumps on follow still I'd -- -- here. we're of strong wireless Maybe should as the clean but at out obviously say me, really we if of say, easier the side I we have wireless. is wired. just we if particularly kind I don't mean mean I stronger I the

in been to I both trends, EMEA last in about talked previously. our that that's market have think seen benefit I of the terms We and standpoint. a share gaming But months. mean over Americas So, pullbacks from several

this consider think was think remains up frankly share Asia year XXX% and that disciplined some year But against comps a promo. ago I been our well. And talking XX% very as the we're has quarter strong. a even great growing this strong I performance is growth the also about that really year and with

Thanks. one last And allow question if on pricing. the me you

across X%, many between we right price observing are average Just X%. in industries now increases are

if think year XXX basis fair to it even math on price Is increased maybe your your is increases pass a should starting this points fully sales higher. XXX, average try total point? a on points the of percentage on of are If cost you make roughly, magnitude your fiscal is X, in I have about 'XX. this you X Some

So, your average our price X% increase question X%? is to

Yes.

year to 'XX, it fiscal is For fair assume?

think really don't Joern really apply mean I we as one We way I it would Bracken category don't don't because that that it's I everywhere. by specific actually -- It's sort have categories. really of about said. different number

estimate. sorry I'm I think can don't really So, confirm your I

right stay don't do across to we'll of aggressively very completely we do be go sensitive it we We most aggressive end We one others. then in pretty on very don't low-end the lot we'll the Well, the companies in and board. be to price increase specific. and businesses this. of of go and for some we'll flat XX% very, We're lot to in try We places tend a middle. high a because that example tends apply -- stay plus more the the price price

lot. a Thanks right. All

Joern. you, Thank

Joern. Thanks,

Rob. Next up Rob Sanders Deutsche Bank. Hey

Rob. Hey

if that there understand last manufacturing you a your Suzhou, first And follow-up. remember of I China. lockdown, an that is I I Thanks. Hey And in have of was any then facility. how affect something on extended that wanted time question factory disruption it just to was given my would out you've if guys. XX% your had like

Okay. that. on I'll jump

the is in at think all, the days we early of very from disruptions fact, time first weeks. have And to factory close So to COVID I had time. two

recover happens from recover If some timing anything else. So lose not It than significant. happens. may it it. but problem from sales, we can it be too those We again, more we'll and a will obviously

got some We've But came well. the fantastic out of area. issue very, it's factory component So a factory of big Shanghai had far a we team. components We've of terms itself, there. shortages have not very that done had in

We two-week period our is good. as strong also and out not move but extraordinarily quite of say to very factory, within have would as in dynamic a which ability a I very, things

gives lot to that through so confidence a into protracted a the if was outcome. way find of And something it best me we'd possible manage went more we it with

So pretty manufacturing bullish I where standpoint. about a feel are from we

in XX% our products factory. are XX% and made Your numbers are right own our of between about

add I bit a that might to Rob. just little

increase it's in in a automation my always I of the – mentioned lot our done in we've things. I own factory. think remarks, little that prepared it's

reduce protect that's bit little but a not labor. So does certainly to us it our going completely to exposure

in hasn't someone that that advantaged automation. investment could this, made find to labor So in think situation versus competitively we the ourselves extent gets disrupted a who that like I

to of prioritizing it of bit of Depending lockdowns, kind really lockdowns, wanted length too. it's that impacts So a the call around It's of I we different reason gives on out would the the the there's is you why the protection. that have. little severity

have portfolio. We a broad

do And make products situation have with to choices. maybe so certain we right that that. We're if we some not a prioritize even where certain if get supply. now. into we to But that countries some We'll point having choices get make we'll to we have experience some doing

an I'm be like linearity really something not I that could so is indication lot you NPD. first and looking from I assuming April just just understand a region what wondered just you. have will the follow-up, will the that understand you're the that. the my give if be how half we investor Thank whether or starting because seems about for year. just to of just sell-through data down still point, up half second thinking GFK, base the by clear how the you're to And Okay. of

our of And fiscal typical. window. back last of fiscal began often QX period The got our COVID seasonality out the when kind quarters been typical been more the bit, we that's XXXX stepping couple talk – began business. starting COVID true have really the And of in XXXX been kind all year of Yes typical seasonality while saying I've for about a little thrown in a for

was QX XX% was and XX% Our our line which sequentially, down QX more seasonality. in with up isn't typical

to be that category, that It's we're bouncy see But it down. like things reappear. diversified could seasonality So of are still settling for right, an by ours, enough indicator some a starting not portfolio as little predictable. a

no of year business kind seasonality is our more is today things and need just that and make certainly lots about sales way Again typical we that there's to of right see how then think we'll a mentioned earlier. now in full it's about So returning all to I think to that evolve. I ways. thinking One modeling probably there's Ukraine adjustment But ahead. that a good Russia and to it

of adjustment be So my is a back there'll the year, on as half fairly looks that, typical kind that trends of some based in QX assumption to right seasonality then what we current result with now that pre-COVID. of, saw but the

lot. a Thanks

you. Thank

Thanks.

Rob. Thanks, All right.

more of we've think time I Bank question America. got one Angelov, for Adam

guys. Thanks, Yes.

Go ahead, Adam.

me. Just a one quick for

assumptions the your category on check double year. to wanted I So for

channel already, there's You on And you of secondly, sort see products. any it situation changes us could if want update of if but then the your on to touched been I there? inventory just just

would Yes. say update real I on no categories. probably the

of in All Russia. sales some them have

of inventories you something standpoint. about at The short little areas through the that working mentioned the But a think the I would a I a trying always healthy long mice up on shape. got keyboards. clean say way that's We've them in bit would on back might things. chase the direct something on to describe pretty a still channel AID and little component some they're the think been we're And there. healthy probably and good So bit We're kind say from equally it channels still I think tightness being the and I sales are all like and some levels. impacted by of those demand at of I most I'd has C&P things and now. we're that typical

Thank Right. you.

you. Thank

Thanks, Adam.

Bracken, of think Nate, final Bracken, the wrap hour. I as I at bottom update. we the we're here? thoughts any the appreciate

either times. and going world. about and terrific. I stimulating learn always or and our the I The on for for this with said this I business Thanks always been or do learn really people always much. so everyone's it's you the know you road has when questions. thank with for I -- Nate think to you in a many out engagement No, meet us. something what's about I Nate but living, investors say I go about on how

the was anyway we're excited terrific for all that. the after a and It all years thank really support the and year you the year year. So next during about

So Thanks look forward exciting lot a more more and lot interesting to learning. a of calls lot. a

Thanks, guys.

you. See