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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Sharkninja Inc | NYSE:SN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-2.45 | -3.16% | 74.96 | 78.90 | 74.77 | 78.00 | 1,131,428 | 00:52:27 |
| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price
|
| | | $ | 47.00 | | | | | $ | 286,472,943 | | |
Underwriting discounts and commissions(1)
|
| | | $ | 1.645 | | | | | $ | 10,026,553 | | |
Proceeds to the selling shareholders, before expenses
|
| | | $ | 45.355 | | | | | $ | 276,446,390 | | |
| Goldman Sachs & Co. LLC | | |
J.P. Morgan
|
|
| Jefferies | | |
Morgan Stanley
|
|
|
(in alphabetical order)
|
|
| William Blair | | |
Guggenheim Securities
|
|
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | 1 | | | |
| | | | | 20 | | | |
| | | | | 64 | | | |
| | | | | 66 | | | |
| | | | | 67 | | | |
| CAPITALIZATION | | | | | 68 | | |
| | | | | 69 | | | |
|
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL
INFORMATION |
| | | | 71 | | |
| MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | | | | | 80 | | |
| | | | | 106 | | | |
| | | | | 138 | | | |
| | | | | 145 | | | |
| | | | | 154 | | | |
| | | | | 156 | | | |
| | | | | 169 | | | |
| | | | | 171 | | | |
| | | | | 175 | | | |
| | | | | 182 | | | |
| | | | | 183 | | | |
| | | | | 183 | | | |
| | | | | 183 | | | |
| | | | | 183 | | | |
| | | | | F-1 | | |
($ in thousands, except
share and per share data) |
| |
Years Ended December 31,
|
| |
Nine Months Ended
September 30, |
| |
Pro Forma
Year Ended December 31, |
| |
Pro Forma
Nine Months Ended September 30, |
| ||||||||||||||||||||||||||||||
|
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| |||||||||||||||||||||||
Net Sales
|
| | | $ | 2,753,166 | | | | | $ | 3,726,994 | | | | | $ | 3,717,366 | | | | | $ | 2,534,720 | | | | | $ | 2,876,211 | | | | | $ | 3,622,856 | | | | | $ | 2,800,993 | | |
Cost of Sales
|
| | | | 1,499,724 | | | | | | 2,288,810 | | | | | | 2,307,172 | | | | | | 1,547,843 | | | | | | 1,591,254 | | | | | | 2,247,994 | | | | | | 1,515,343 | | |
Gross Profit
|
| | | | 1,253,442 | | | | | | 1,438,184 | | | | | | 1,410,194 | | | | | | 986,877 | | | | | | 1,284,957 | | | | | | 1,374,862 | | | | | | 1,285,650 | | |
Operating Expenses
Research and Development(1) |
| | | | 159,635 | | | | | | 200,641 | | | | | | 215,660 | | | | | | 159,955 | | | | | | 180,430 | | | | | | 213,936 | | | | | | 181,013 | | |
Sales and Marketing(1)
|
| | | | 445,084 | | | | | | 619,162 | | | | | | 621,953 | | | | | | 405,319 | | | | | | 568,035 | | | | | | 598,295 | | | | | | 551,098 | | |
General and
Administrative(1) |
| | | | 183,286 | | | | | | 180,124 | | | | | | 251,207 | | | | | | 154,035 | | | | | | 263,682 | | | | | | 320,303 | | | | | | 181,560 | | |
Total Operating Expenses
|
| | | | 788,005 | | | | | | 999,927 | | | | | | 1,088,820 | | | | | | 719,309 | | | | | | 1,012,147 | | | | | | 1,132,534 | | | | | | 913,671 | | |
Operating Income
|
| | | | 465,437 | | | | | | 438,257 | | | | | | 321,374 | | | | | | 267,568 | | | | | | 272,810 | | | | | | 242,328 | | | | | | 371,979 | | |
Interest Expense, Net
|
| | | | (40,279) | | | | | | (16,287) | | | | | | (27,021) | | | | | | (18,561) | | | | | | (28,523) | | | | | | (34,962) | | | | | | (43,181) | | |
Other Income (Expense), Net
|
| | | | (5,692) | | | | | | (7,644) | | | | | | 7,631 | | | | | | (8,841) | | | | | | (41,315) | | | | | | 10,699 | | | | | | (39,098) | | |
Income Before Income Taxes
|
| | | | 419,466 | | | | | | 414,326 | | | | | | 301,984 | | | | | | 240,166 | | | | | | 202,972 | | | | | | 218,065 | | | | | | 289,700 | | |
Provision for Income Taxes
|
| | | | 92,268 | | | | | | 83,213 | | | | | | 69,630 | | | | | | 54,451 | | | | | | 85,218 | | | | | | 56,772 | | | | | | 93,032 | | |
Net Income
|
| | | $ | 327,198 | | | | | $ | 331,113 | | | | | $ | 232,354 | | | | | $ | 185,715 | | | | | $ | 117,754 | | | | | $ | 161,293 | | | | | $ | 196,668 | | |
($ in thousands, except
share and per share data) |
| |
Years Ended December 31,
|
| |
Nine Months Ended
September 30, |
| |
Pro Forma
Year Ended December 31, |
| |
Pro Forma
Nine Months Ended September 30, |
| ||||||||||||||||||||||||||||||
|
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| |||||||||||||||||||||||
Net Income Per Share, basic and diluted(2)
|
| | | $ | 2.35 | | | | | $ | 2.38 | | | | | $ | 1.67 | | | | | $ | 1.34 | | | | | $ | 0.85 | | | | | | | | | | | | | | |
Weighted-Average Number of Shares Used in Computing Net Income Per Share, basic(2)
|
| | | | 138,982,872 | | | | | | 138,982,872 | | | | | | 138,982,872 | | | | | | 138,982,872 | | | | | | 139,059,206 | | | | | | | | | | | | | | |
Weighted-Average Number of Shares Used in Computing Net Income Per Share, diluted(2) | | | | | 138,982,872 | | | | | | 138,982,872 | | | | | | 138,982,872 | | | | | | 138,982,872 | | | | | | 139,179,724 | | | | | | | | | | | | | | |
Pro Forma Net Income Per Share,
basic and diluted |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1.16 | | | | | $ | 1.41 | | |
Pro Forma Weighted-Average
Number of Shares Used in Computing Net Income Per Share, basic |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 138,982,872 | | | | | | 139,059,206 | | |
Pro Forma Weighted-Average
Number of Shares Used in Computing Net Income Per Share, diluted |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 138,982,872 | | | | | | 139,179,724 | | |
($ in thousands, except share and per share data)
|
| |
Years Ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||
|
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | | | | $ | 293,435 | | | | | $ | 229,147 | | | | | $ | 204,964 | | | | | $ | 39,429 | | | | | $ | 95,780 | | |
Net Cash Used in Investing Activities
|
| | | | (81,434) | | | | | | (66,366) | | | | | | (52,384) | | | | | | (63,438) | | | | | | (64,363) | | |
Net Cash Provided by (Used in) Financing Activities | | | | | (120,668) | | | | | | (54,500) | | | | | | (160,170) | | | | | | (5,129) | | | | | | (75,042) | | |
($ in thousands)
|
| |
As of September 30, 2023
|
| |||
Cash and Cash Equivalents
|
| | | $ | 170,377 | | |
Total Assets
|
| | | | 3,565,239 | | |
Total Liabilities
|
| | | | 2,042,894 | | |
Total Shareholders’ Equity
|
| | | | 1,522,345 | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||
($ in thousands)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||
Research and Development
|
| | | $ | 1,713 | | | | | $ | 2,918 | | | | | $ | 1,741 | | | | | $ | 1,669 | | | | | $ | 4,229 | | |
Sales and Marketing
|
| | | | 1,866 | | | | | | 1,755 | | | | | | 459 | | | | | | 451 | | | | | | 2,432 | | |
General and Administrative
|
| | | | 6,455 | | | | | | 9,251 | | | | | | 3,309 | | | | | | 3,295 | | | | | | 17,841 | | |
Total Share-Based Compensation
|
| | | $ | 10,034 | | | | | $ | 13,924 | | | | | $ | 5,509 | | | | | $ | 5,415 | | | | | $ | 24,502 | | |
($ in thousands, except % and per share
data) |
| |
Year Ended December 31,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||||||||
|
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||||
Adjusted Net Sales(1)
|
| | | $ | 2,689,708 | | | | | $ | 3,625,299 | | | | | $ | 3,619,932 | | | | | $ | 2,468,847 | | | | | $ | 2,798,667 | | |
Adjusted Gross Profit(2)
|
| | | $ | 1,204,356 | | | | | $ | 1,476,062 | | | | | $ | 1,447,561 | | | | | $ | 1,013,558 | | | | | $ | 1,305,898 | | |
Adjusted Gross Margin(3)
|
| | | | 44.8% | | | | | | 40.7% | | | | | | 40.0% | | | | | | 41.1% | | | | | | 46.7% | | |
Adjusted Operating Income(4)
|
| | | $ | 474,772 | | | | | $ | 550,491 | | | | | $ | 453,081 | | | | | $ | 338,393 | | | | | $ | 438,064 | | |
Adjusted Net Income(5)
|
| | | $ | 349,490 | | | | | $ | 423,242 | | | | | $ | 330,365 | | | | | $ | 254,957 | | | | | $ | 317,145 | | |
Adjusted Net Income Per Diluted Share (6) | | | | $ | 2.51 | | | | | $ | 3.05 | | | | | $ | 2.38 | | | | | $ | 1.83 | | | | | $ | 2.28 | | |
EBITDA(7) | | | | $ | 537,825 | | | | | $ | 508,796 | | | | | $ | 415,713 | | | | | $ | 320,287 | | | | | $ | 308,889 | | |
Adjusted EBITDA(8)
|
| | | $ | 527,699 | | | | | $ | 603,129 | | | | | $ | 519,614 | | | | | $ | 391,215 | | | | | $ | 500,368 | | |
Adjusted EBITDA Margin(9)
|
| | | | 19.6% | | | | | | 16.6% | | | | | | 14.4% | | | | | | 15.8% | | | | | | 17.9% | | |
($ in thousands, except share data)
|
| |
As of
September 30, 2023 |
| |||
Cash and cash equivalents
|
| | | $ | 170,377 | | |
Long-term debt(1)
|
| | | $ | 810,000 | | |
Shareholders’ equity(2): | | | | | | | |
Ordinary shares, $0.0001 par value per share, 1,000,000,000 shares authorized, 138,982,872 shares issued and outstanding as of September 30, 2023
|
| | | | 14 | | |
Additional paid-in capital
|
| | | | 959,248 | | |
Retained earnings
|
| | | | 571,174 | | |
Accumulated other comprehensive loss
|
| | | | (8,091) | | |
Total shareholders’ equity
|
| | | | 1,522,345 | | |
Total capitalization
|
| | | $ | 2,332,345 | | |
| | |
Historical
|
| |
Divestiture
Transactions Adjustments |
| | | | |
As Adjusted
Before Other Transaction Accounting Adjustments and Autonomous Entity Adjustments |
| |
Other
Transaction Accounting Adjustments |
| | | | |
Autonomous
Entity Adjustments |
| | | | |
SharkNinja,
Inc. Pro Forma |
| ||||||||||||||||||
Net sales
|
| | | $ | 2,876,211 | | | | | $ | (75,218) | | | |
[a]
|
| | | $ | 2,800,993 | | | | | $ | | | | | | | | $ | | | | | | | | $ | 2,800,993 | | | ||
Cost of sales
|
| | | | 1,591,254 | | | | | | (83,433) | | | |
[a]
|
| | | | 1,507,821 | | | | | | | | | | | | | | | 7,522 | | | |
[f]
|
| | | | 1,515,343 | | |
Gross profit
|
| | | | 1,284,957 | | | | | | 8,215 | | | | | | | | | 1,293,172 | | | | | | | | | | | | | | | (7,522) | | | | | | | | | 1,285,650 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | $ | 180,430 | | | | | $ | 583 | | | |
[a]
|
| | | $ | 181,013 | | | | | $ | | | | | | | | $ | | | | | | | | $ | 181,013 | | | ||
Sales and marketing
|
| | | | 568,035 | | | | | | (16,937) | | | |
[a]
|
| | | | 551,098 | | | | | | | | | | | | | | | | | | | | | | | | 551,098 | | |
General and administrative
|
| | | | 263,682 | | | | | | (4,791) | | | |
[a]
|
| | | | 258,891 | | | | | | (75,581) | | | |
[c]
|
| | | | (1,750) | | | |
[g]
|
| | | | 181,560 | | |
Total operating expenses
|
| | | | 1,012,147 | | | | | | (21,145) | | | | | | | | | 991,002 | | | | | | (75,581) | | | | | | | | | (1,750) | | | | | | | | | 913,671 | | |
Operating income
|
| | | | 272,810 | | | | | | 29,360 | | | | | | | | | 302,170 | | | | | | 75,581 | | | | | | | | | (5,772) | | | | | | | | | 371,979 | | |
Interest expense, net
|
| | | | (28,523) | | | | | | 3 | | | |
[a]
|
| | | | (28,520) | | | | | | (14,661) | | | |
[d]
|
| | | | | | | | | | | | | (43,181) | | |
Other expense, net
|
| | | | (41,315) | | | | | | 1,249 | | | |
[a]
|
| | | | (40,066) | | | | | | 968 | | | |
[d]
|
| | | | | | | | | | | | | (39,098) | | |
Income before income taxes
|
| | | | 202,972 | | | | | | 30,612 | | | | | | | | | 232,584 | | | | | | 61,888 | | | | | | | | | (5,772) | | | | | | | | | 289,700 | | |
Provision for income taxes
|
| | | | 85,218 | | | | | | (1,930) | | | |
[a]
|
| | | | 92,172 | | | | | | 2,130 | | | |
[e]
|
| | | | (1,270) | | | |
[h]
|
| | | | 93,032 | | |
| | | | | | | | | | | 8,884 | | | |
[b]
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 117,754 | | | | | $ | 23,658 | | | | | | | | $ | 141,412 | | | | | $ | 59,758 | | | | | | | | $ | (4,502) | | | | | | | | $ | 196,668 | | |
Net income per share, basic and diluted
|
| | | $ | 0.85 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted-average number of shares used in computing net income per share, basic
|
| | | | 139,059,206 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted-average number of shares used in computing net income per share, diluted
|
| | | | 139,179,724 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pro forma net income per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
[q]
|
| | | $ | 1.41 | | |
Pro forma number of shares used in computing net income per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
[q]
|
| | | | 139,059,206 | | |
Diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
[q]
|
| | | | 139,179,724 | | |
| | |
Historical
|
| |
Divestiture
Transactions Adjustments |
| | | | |
As Adjusted
Before Other Transaction Accounting Adjustments and Autonomous Entity Adjustments |
| |
Other
Transaction Accounting Adjustments |
| | | | |
Autonomous
Entity Adjustments |
| | | | |
SharkNinja,
Inc. Pro Forma |
| ||||||||||||||||||
Net sales
|
| | | $ | 3,717,366 | | | | | $ | (94,510) | | | |
[i]
|
| | | $ | 3,622,856 | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | 3,622,856 | | |
Cost of sales
|
| | | | 2,307,172 | | | | | | (134,800) | | | |
[i]
|
| | | | 2,172,372 | | | | | | — | | | | | | | | | 75,622 | | | |
[n]
|
| | | | 2,247,994 | | |
Gross profit
|
| | | | 1,410,194 | | | | | | 40,290 | | | | | | | | | 1,450,484 | | | | | | — | | | | | | | | | (75,622) | | | | | | | | | 1,374,862 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | $ | 215,660 | | | | | $ | (1,724) | | | |
[i]
|
| | | $ | 213,936 | | | | | $ | — | | | | | | | | $ | — | | | | | | | | $ | 213,936 | | |
Sales and marketing
|
| | | | 621,953 | | | | | | (23,658) | | | |
[i]
|
| | | | 598,295 | | | | | | — | | | | | | | | | — | | | | | | | | | 598,295 | | |
General and administrative
|
| | | | 251,207 | | | | | | (3,485) | | | |
[i]
|
| | | | 247,722 | | | | | | 75,581 | | | |
[k]
|
| | | | (3,000) | | | |
[o]
|
| | | | 320,303 | | |
Total operating expenses
|
| | | | 1,088,820 | | | | | | (28,867) | | | | | | | | | 1,059,953 | | | | | | 75,581 | | | | | | | | | (3,000) | | | | | | | | | 1,132,534 | | |
Operating income
|
| | | | 321,374 | | | | | | 69,157 | | | | | | | | | 390,531 | | | | | | (75,581) | | | | | | | | | (72,622) | | | | | | | | | 242,328 | | |
Interest expense, net
|
| | | | (27,021) | | | | | | 2 | | | |
[i]
|
| | | | (27,019) | | | | | | (7,943) | | | |
[l]
|
| | | | — | | | | | | | | | (34,962) | | |
Other income, net
|
| | | | 7,631 | | | | | | 3,068 | | | |
[i]
|
| | | | 11,699 | | | | | | — | | | | | | | | | — | | | | | | | | | 10,699 | | |
Income before income taxes
|
| | | | 301,984 | | | | | | 72,227 | | | | | | | | | 374,211 | | | | | | (83,524) | | | | | | | | | (72,622) | | | | | | | | | 218,065 | | |
Provision for income taxes
|
| | | | 69,630 | | | | | | (1,842) | | | |
[i]
|
| | | | 85,513 | | | | | | (12,764) | | | |
[m]
|
| | | | (15,977) | | | |
[p]
|
| | | | 56,772 | | |
| | | | | | | | | | | 17,725 | | | |
[j]
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 232,354 | | | | | $ | 56,344 | | | | | | | | $ | 288,698 | | | | | $ | (70,760) | | | | | | | | $ | (56,645) | | | | | | | | $ | 161,293 | | |
Net income per share, basic and diluted
|
| | | $ | 1.67 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted-average number of shares used in computing net income per share, basic and diluted
|
| | | | 138,982,872 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pro forma net income per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
[q]
|
| | | $ | 1.16 | | |
Pro forma number of shares used in computing net income per share:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
[q]
|
| | | | 138,982,872 | | |
(in thousands, except share and per share data)
|
| |
Nine Months
Ended September 30, 2023 |
| |||
Numerator: | | | | | | | |
Pro forma net income, basic and diluted
|
| | | $ | 196,668 | | |
Denominator: | | | | | | | |
Weighted-average shares used in computing pro forma net income per share—basic(1)
|
| | | | 139,059,206 | | |
Weighted-average shares used in computing pro forma net income per share—diluted(1)
|
| | | | 139,179,724 | | |
Pro forma net income per share—basic and diluted
|
| | | $ | 1.41 | | |
(in thousands, except share and per share data)
|
| |
Year Ended
December 31, 2022 |
| |||
Numerator: | | | | | | | |
Pro forma net income, basic and diluted
|
| | | $ | 161,293 | | |
Denominator: | | | | | | | |
Weighted-average shares used in computing pro forma net income per share—basic and diluted(1) | | | | | 138,982,872 | | |
Pro forma net income per share—basic and diluted
|
| | | $ | 1.16 | | |
| | |
Years Ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||
($ in thousands, except share and per share
data) |
| |
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||
Net Sales
|
| | | $ | 2,753,166 | | | | | $ | 3,726,994 | | | | | $ | 3,717,366 | | | | | $ | 2,534,720 | | | | | $ | 2,876,211 | | |
Cost of Sales
|
| | | | 1,499,724 | | | | | | 2,288,810 | | | | | | 2,307,172 | | | | | | 1,547,843 | | | | | | 1,591,254 | | |
Gross Profit
|
| | | | 1,253,442 | | | | | | 1,438,184 | | | | | | 1,410,194 | | | | | | 986,877 | | | | | | 1,284,957 | | |
Operating Expenses | | | | | | | |||||||||||||||||||||||||
Research and Development(1)
|
| | | | 159,635 | | | | | | 200,641 | | | | | | 215,660 | | | | | | 159,955 | | | | | | 180,430 | | |
Sales and Marketing(1)
|
| | | | 445,084 | | | | | | 619,162 | | | | | | 621,953 | | | | | | 405,319 | | | | | | 568,035 | | |
General and Administrative(1)
|
| | | | 183,286 | | | | | | 180,124 | | | | | | 251,207 | | | | | | 154,035 | | | | | | 263,682 | | |
Total Operating Expenses
|
| | | | 788,005 | | | | | | 999,927 | | | | | | 1,088,820 | | | | | | 719,309 | | | | | | 1,012,147 | | |
Operating Income
|
| | | | 465,437 | | | | | | 438,257 | | | | | | 321,374 | | | | | | 267,568 | | | | | | 272,810 | | |
Interest Expense, Net
|
| | | | (40,279) | | | | | | (16,287) | | | | | | (27,021) | | | | | | (18,561) | | | | | | (28,523) | | |
Other Income (Expense), Net
|
| | | | (5,692) | | | | | | (7,644) | | | | | | 7,631 | | | | | | (8,841) | | | | | | (41,315) | | |
Income Before Income Taxes
|
| | | | 419,466 | | | | | | 414,326 | | | | | | 301,984 | | | | | | 240,166 | | | | | | 202,972 | | |
Provision for Income Taxes
|
| | | | 92,268 | | | | | | 83,213 | | | | | | 69,630 | | | | | | 54,451 | | | | | | 85,218 | | |
Net Income
|
| | | $ | 327,198 | | | | | $ | 331,113 | | | | | $ | 232,354 | | | | | $ | 185,715 | | | | | $ | 117,754 | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||
($ in thousands)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||
Research and Development
|
| | | $ | 1,713 | | | | | $ | 2,918 | | | | | $ | 1,741 | | | | | $ | 1,669 | | | | | $ | 4,229 | | |
Sales and Marketing
|
| | | | 1,866 | | | | | | 1,755 | | | | | | 459 | | | | | | 451 | | | | | | 2,432 | | |
General and Administrative
|
| | | | 6,455 | | | | | | 9,251 | | | | | | 3,309 | | | | | | 3,295 | | | | | | 17,841 | | |
Total Share-Based Compensation
|
| | | $ | 10,034 | | | | | $ | 13,924 | | | | | $ | 5,509 | | | | | $ | 5,415 | | | | | $ | 24,502 | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||
Net Sales
|
| | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | |
Cost of Sales
|
| | | | 54.5 | | | | | | 61.4 | | | | | | 62.1 | | | | | | 61.1 | | | | | | 55.3 | | |
Gross Profit
|
| | | | 45.5 | | | | | | 38.6 | | | | | | 37.9 | | | | | | 38.9 | | | | | | 44.7 | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and Development
|
| | | | 5.8 | | | | | | 5.4 | | | | | | 5.8 | | | | | | 6.3 | | | | | | 6.3 | | |
Sales and Marketing
|
| | | | 16.2 | | | | | | 16.6 | | | | | | 16.7 | | | | | | 16.0 | | | | | | 19.7 | | |
General and Administrative
|
| | | | 6.6 | | | | | | 4.8 | | | | | | 6.8 | | | | | | 6.1 | | | | | | 9.2 | | |
Total Operating Expenses
|
| | | | 28.6 | | | | | | 26.8 | | | | | | 29.3 | | | | | | 28.4 | | | | | | 35.2 | | |
Operating Income
|
| | | | 16.9 | | | | | | 11.8 | | | | | | 8.6 | | | | | | 10.5 | | | | | | 9.5 | | |
Interest Expense, Net
|
| | | | (1.5) | | | | | | (0.4) | | | | | | (0.7) | | | | | | (0.7) | | | | | | (1.0) | | |
Other Income (Expense), Net
|
| | | | (0.2) | | | | | | (0.2) | | | | | | 0.2 | | | | | | (0.4) | | | | | | (1.4) | | |
Income Before Income Taxes
|
| | | | 15.2 | | | | | | 11.2 | | | | | | 8.1 | | | | | | 9.4 | | | | | | 7.1 | | |
Provision for Income Taxes
|
| | | | 3.4 | | | | | | 2.2 | | | | | | 1.8 | | | | | | 2.1 | | | | | | 3.0 | | |
Net Income
|
| | | | 11.8% | | | | | | 9.0% | | | | | | 6.3% | | | | | | 7.3% | | | | | | 4.1% | | |
| | |
Nine Months Ended September 30,
|
| |||||||||||||||||||||
($ in thousands, except %)
|
| |
2022
|
| |
2023
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net Sales
|
| | | $ | 2,534,720 | | | | | $ | 2,876,211 | | | | | $ | 341,491 | | | | | | 13.5% | | |
| | |
Nine Months Ended September 30,
|
| |||||||||||||||||||||
($ in thousands, except %)
|
| |
2022
|
| |
2023
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Gross Profit
|
| | | $ | 986,877 | | | | | $ | 1,284,957 | | | | | | 298,080 | | | | | | 30.2% | | |
Gross Margin
|
| | | | 38.9% | | | | | | 44.7% | | | | | | | | | | | | | | |
| | |
Nine Months Ended September 30,
|
| |||||||||||||||||||||
($ in thousands, except %)
|
| |
2022
|
| |
2023
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Research and Development
|
| | | $ | 159,955 | | | | | $ | 180,430 | | | | | $ | 20,475 | | | | | | 12.8% | | |
Percentage of Net Sales
|
| | | | 6.3% | | | | | | 6.3% | | | | | | | | | | | | | | |
Sales and Marketing
|
| | | $ | 405,319 | | | | | $ | 568,035 | | | | | $ | 162,716 | | | | | | 40.1% | | |
Percentage of Net Sales
|
| | | | 16.0% | | | | | | 19.7% | | | | | | | | | | | | | | |
General and Administrative
|
| | | $ | 154,035 | | | | | $ | 263,682 | | | | | $ | 109,647 | | | | | | 71.2% | | |
Percentage of Net Sales
|
| | | | 6.1% | | | | | | 9.2% | | | | | | | | | | | | | | |
Total Operating Expenses
|
| | | $ | 719,309 | | | | | $ | 1,012,147 | | | | | $ | 292,838 | | | | | | 40.7% | | |
Percentage of Net Sales
|
| | | | 28.4% | | | | | | 35.2% | | | | | | | | | | | | | | |
| | |
Nine Months Ended September 30,
|
| |||||||||||||||||||||
($ in thousands, except %)
|
| |
2022
|
| |
2023
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Interest Expense, Net
|
| | | $ | 18,561 | | | | | $ | 28,523 | | | | | $ | 9,962 | | | | | | 53.7% | | |
Percentage of Net Sales
|
| | | | 0.7% | | | | | | 1.0% | | | | | | | | | | | | | | |
| | |
Nine Months Ended September 30,
|
| |||||||||||||||||||||
($ in thousands, except %)
|
| |
2022
|
| |
2023
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Other Expense, Net
|
| | | $ | (8,841) | | | | | $ | (41,315) | | | | | $ | (32,474) | | | | | | (367.3)% | | |
Percentage of Net Sales
|
| | | | (0.4)% | | | | | | (1.4)% | | | | | | | | | | | | | | |
| | |
Nine Months Ended September 30,
|
| |||||||||||||||||||||
($ in thousands, except %)
|
| |
2022
|
| |
2023
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Provision for Income Taxes
|
| | | $ | 54,451 | | | | | $ | 85,218 | | | | | $ | 30,767 | | | | | | 56.5% | | |
Percentage of Income Before Income Taxes
|
| | | | 22.7% | | | | | | 42.0% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
% Change
|
| ||||||||||||||||||||||||
($ in thousands, except %)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2020 to 2021
|
| |
2021 to 2022
|
| |||||||||||||||
Net Sales
|
| | | $ | 2,753,166 | | | | | $ | 3,726,994 | | | | | $ | 3,717,366 | | | | | | 35.4% | | | | | | (0.3)% | | |
| | |
Year Ended December 31,
|
| |
% Change
|
| ||||||||||||||||||||||||
($ in thousands, except %)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2020 to 2021
|
| |
2021 to 2022
|
| |||||||||||||||
Gross Profit
|
| | | $ | 1,253,442 | | | | | $ | 1,438,184 | | | | | $ | 1,410,194 | | | | | | 14.7% | | | | | | (1.9)% | | |
Gross Margin
|
| | | | 45.5% | | | | | | 38.6% | | | | | | 37.9% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
% Change
|
| ||||||||||||||||||||||||
($ in thousands, except %)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2020 to 2021
|
| |
2021 to 2022
|
| |||||||||||||||
Research and Development
|
| | | $ | 159,635 | | | | | $ | 200,641 | | | | | $ | 215,660 | | | | | | 25.7% | | | | | | 7.5% | | |
Percentage of Net Sales
|
| | | | 5.8% | | | | | | 5.4% | | | | | | 5.8% | | | | | | | | | | | | | | |
Sales and Marketing
|
| | | $ | 445,084 | | | | | $ | 619,162 | | | | | $ | 621,953 | | | | | | 39.1% | | | | | | 0.5% | | |
Percentage of Net Sales
|
| | | | 16.2% | | | | | | 16.6% | | | | | | 16.7% | | | | | | | | | | | | | | |
General and Administrative
|
| | | $ | 183,286 | | | | | $ | 180,124 | | | | | $ | 251,207 | | | | | | (1.7)% | | | | | | 39.5% | | |
Percentage of Net Sales
|
| | | | 6.6% | | | | | | 4.8% | | | | | | 6.8% | | | | | | | | | | | | | | |
Total Operating Expenses
|
| | | $ | 788,005 | | | | | $ | 999,927 | | | | | $ | 1,088,820 | | | | | | 26.9% | | | | | | 8.9% | | |
Percentage of Net Sales
|
| | | | 28.6% | | | | | | 26.8% | | | | | | 29.3% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
% Change
|
| ||||||||||||||||||||||||
($ in thousands, except %)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2020 to 2021
|
| |
2021 to 2022
|
| |||||||||||||||
Interest Expense, Net
|
| | | $ | (40,279) | | | | | $ | (16,287) | | | | | $ | (27,021) | | | | | | (59.6)% | | | | | | 65.9% | | |
Percentage of Net Sales
|
| | | | (1.5)% | | | | | | (0.4)% | | | | | | (0.7)% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
% Change
|
| ||||||||||||||||||||||||
($ in thousands, except %)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2020 to 2021
|
| |
2021 to 2022
|
| |||||||||||||||
Other Income (Expense), Net
|
| | | $ | (5,692) | | | | | $ | (7,644) | | | | | $ | 7,631 | | | | | | 34.3% | | | | | | 199.8% | | |
Percentage of Net Sales
|
| | | | (0.2)% | | | | | | (0.2)% | | | | | | 0.2% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
% Change
|
| ||||||||||||||||||||||||
($ in thousands, except %)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2020 to 2021
|
| |
2021 to 2022
|
| |||||||||||||||
Provision for Income Taxes
|
| | | $ | 92,268 | | | | | $ | 83,213 | | | | | $ | 69,630 | | | | | | (9.8)% | | | | | | (16.3)% | | |
Percentage of Income Before Income Taxes | | | | | 22.0% | | | | | | 20.1% | | | | | | 23.1% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||
($ in thousands, except %)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||
Net Sales
|
| | | $ | 2,753,166 | | | | | $ | 3,726,994 | | | | | $ | 3,717,366 | | | | | $ | 2,534,720 | | | | | $ | 2,876,211 | | |
Divested Subsidiary Adjustment(1)
|
| | | | (63,458) | | | | | | (101,695) | | | | | | (97,434) | | | | | | (65,873) | | | | | | (77,544) | | |
Adjusted Net Sales
|
| | | $ | 2,689,708 | | | | | $ | 3,625,299 | | | | | $ | 3,619,932 | | | | | $ | 2,468,847 | | | | | $ | 2,798,667 | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||
($ in thousands, except %)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||
Net Sales
|
| | | $ | 2,753,166 | | | | | $ | 3,726,994 | | | | | $ | 3,717,366 | | | | | $ | 2,534,720 | | | | | $ | 2,876,211 | | |
Cost of Sales
|
| | | | (1,499,724) | | | | | | (2,288,810) | | | | | | (2,307,172) | | | | | | (1,547,843) | | | | | | (1,591,254) | | |
Gross Profit
|
| | | | 1,253,442 | | | | | | 1,438,184 | | | | | $ | 1,410,194 | | | | | $ | 986,877 | | | | | $ | 1,284,957 | | |
Gross Margin %
|
| | | | 45.5% | | | | | | 38.6% | | | | | | 37.9% | | | | | | 38.9% | | | | | | 44.7% | | |
Divested Subsidiary Net Sales
Adjustment(1) |
| | | | (63,458) | | | | | | (101,695) | | | | | | (97,434) | | | | | | (65,873) | | | | | | (77,544) | | |
Divested Subsidiary Cost of Sales Adjustment(2) | | | | | 39,512 | | | | | | 63,931 | | | | | | 64,506 | | | | | | 41,323 | | | | | | 45,116 | | |
Product Procurement Adjustment(3) | | | | | 12,960 | | | | | | 75,642 | | | | | | 70,295 | | | | | | 51,231 | | | | | | 53,369 | | |
Tariff Refunds(4)
|
| | | | (38,100) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted Gross Profit
|
| | | $ | 1,204,356 | | | | | $ | 1,476,062 | | | | | $ | 1,447,561 | | | | | $ | 1,013,558 | | | | | $ | 1,305,898 | | |
Adjusted Net Sales
|
| | | | 2,689,708 | | | | | | 3,625,299 | | | | | | 3,619,932 | | | | | | 2,468,847 | | | | | | 2,798,667 | | |
Adjusted Gross Margin
|
| | | | 44.8% | | | | | | 40.7% | | | | | | 40.0% | | | | | | 41.1% | | | | | | 46.7% | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||
($ in thousands, except %)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||
Operating Income
|
| | | $ | 465,437 | | | | | $ | 438,257 | | | | | $ | 321,374 | | | | | $ | 267,568 | | | | | $ | 272,810 | | |
Share-Based Compensation(1)
|
| | | | 10,034 | | | | | | 13,924 | | | | | | 5,509 | | | | | | 5,415 | | | | | | 24,502 | | |
Tariff Refunds(2)
|
| | | | (38,100) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Litigation Costs(3)
|
| | | | 5,304 | | | | | | 10,602 | | | | | | 4,513 | | | | | | 4,024 | | | | | | 4,600 | | |
Amortization of Acquired Intangible
Assets(4) |
| | | | 19,587 | | | | | | 19,587 | | | | | | 19,587 | | | | | | 14,691 | | | | | | 14,690 | | |
Separation and Distribution Related Costs(5)
|
| | | | — | | | | | | — | | | | | | 2,896 | | | | | | 275 | | | | | | 76,549 | | |
Executive Bonus(6)
|
| | | | — | | | | | | — | | | | | | 34,000 | | | | | | — | | | | | | — | | |
Product Procurement Adjustment(7)
|
| | | | 12,960 | | | | | | 75,642 | | | | | | 70,295 | | | | | | 51,231 | | | | | | 53,369 | | |
Divested Subsidiary Operating Income Adjustment(8) | | | | | (450) | | | | | | (7,521) | | | | | | (5,093) | | | | | | (4,811) | | | | | | (8,456) | | |
Adjusted Operating Income
|
| | | $ | 474,772 | | | | | $ | 550,491 | | | | | $ | 453,081 | | | | | $ | 338,393 | | | | | $ | 438,064 | | |
($ in thousands, except %, share
and per share amounts) |
| |
Year Ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||
|
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||||
Net Income
|
| | | $ | 327,198 | | | | | $ | 331,113 | | | | | $ | 232,354 | | | | | $ | 185,715 | | | | | $ | 117,754 | | |
Share-Based Compensation(1) | | | | | 10,034 | | | | | | 13,924 | | | | | | 5,509 | | | | | | 5,415 | | | | | | 24,502 | | |
Tariff Refunds(2)
|
| | | | (38,100) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Litigation Costs(3)
|
| | | | 5,304 | | | | | | 10,602 | | | | | | 4,513 | | | | | | 4,024 | | | | | | 4,600 | | |
Foreign Currency Losses (Gains), Net(4) | | | | | 2,643 | | | | | | 3,447 | | | | | | (9,275) | | | | | | 11,783 | | | | | | 43,479 | | |
Loss on Extinguishment of
Debt(5) |
| | | | 16,410 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Amortization of Acquired
Intangible Assets(6) |
| | | | 19,587 | | | | | | 19,587 | | | | | | 19,587 | | | | | | 14,691 | | | | | | 14,690 | | |
Separation and Distribution Related Costs(7) | | | | | — | | | | | | — | | | | | | 2,896 | | | | | | 275 | | | | | | 76,549 | | |
Executive Bonus(8)
|
| | | | — | | | | | | — | | | | | | 34,000 | | | | | | — | | | | | | — | | |
Product Procurement
Adjustment(9) |
| | | | 12,960 | | | | | | 75,642 | | | | | | 70,295 | | | | | | 51,231 | | | | | | 53,369 | | |
Tax Impact of Adjusting Items(10) | | | | | (6,344) | | | | | | (27,104) | | | | | | (28,056) | | | | | | (19,232) | | | | | | (30,686) | | |
Tax Withholding Adjustment(11) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,474 | | |
Divested Subsidiary Net Income Adjustment(12) | | | | | (202) | | | | | | (3,969) | | | | | | (1,458) | | | | | | 1,055 | | | | | | (6,586) | | |
Adjusted Net Income
|
| | | $ | 349,490 | | | | | $ | 423,242 | | | | | $ | 330,365 | | | | | $ | 254,957 | | | | | $ | 317,145 | | |
Net Income Per Share,
diluted |
| | | $ | 2.35 | | | | | $ | 2.38 | | | | | $ | 1.67 | | | | | $ | 1.34 | | | | | $ | 0.85 | | |
Adjusted Net Income Per Diluted Share
|
| | | $ | 2.51 | | | | | $ | 3.05 | | | | | $ | 2.38 | | | | | $ | 1.83 | | | | | $ | 2.28 | | |
Diluted Weighted-Average
Number of Shares Used in Computing Adjusted Net Income Per Diluted Share(13) |
| | | | 138,982,872 | | | | | | 138,982,872 | | | | | | 138,982,872 | | | | | | 138,982,872 | | | | | | 139,179,724 | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||
($ in thousands, except %)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||
Net Income
|
| | | $ | 327,198 | | | | | $ | 331,113 | | | | | $ | 232,354 | | | | | $ | 185,715 | | | | | $ | 117,754 | | |
Interest Expense, Net(1)
|
| | | | 40,279 | | | | | | 16,287 | | | | | | 27,021 | | | | | | 18,561 | | | | | | 28,523 | | |
Provision for Income Taxes
|
| | | | 92,268 | | | | | | 83,213 | | | | | | 69,630 | | | | | | 54,451 | | | | | | 85,218 | | |
Depreciation and Amortization
|
| | | | 78,080 | | | | | | 78,183 | | | | | | 86,708 | | | | | | 61,560 | | | | | | 77,394 | | |
EBITDA
|
| | | $ | 537,825 | | | | | $ | 508,796 | | | | | $ | 415,713 | | | | | $ | 320,287 | | | | | $ | 308,889 | | |
Share-Based Compensation(2)
|
| | | | 10,034 | | | | | | 13,924 | | | | | | 5,509 | | | | | | 5,415 | | | | | | 24,502 | | |
Tariff Refunds(3)
|
| | | | (38,100) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Litigation Costs(4)
|
| | | | 5,304 | | | | | | 10,602 | | | | | | 4,513 | | | | | | 4,024 | | | | | | 4,600 | | |
Foreign Currency Losses (Gains),
Net(5) |
| | | | 2,643 | | | | | | 3,447 | | | | | | (9,275) | | | | | | 11,783 | | | | | | 43,479 | | |
Separation and Distribution Related Costs(6) | | | | | — | | | | | | — | | | | | | 2,896 | | | | | | 275 | | | | | | 76,549 | | |
Executive Bonus(7)
|
| | | | — | | | | | | — | | | | | | 34,000 | | | | | | — | | | | | | — | | |
Product Procurement
Adjustment(8) |
| | | | 12,960 | | | | | | 75,642 | | | | | | 70,295 | | | | | | 51,231 | | | | | | 53,369 | | |
Divested Subsidiary Adjusted EBITDA Adjustment(9) | | | | | (2,967) | | | | | | (9,282) | | | | | | (4,037) | | | | | | (1,800) | | | | | | (11,020) | | |
Adjusted EBITDA
|
| | | $ | 527,699 | | | | | $ | 603,129 | | | | | $ | 519,614 | | | | | $ | 391,215 | | | | | $ | 500,368 | | |
Adjusted Net Sales
|
| | | | 2,689,708 | | | | | | 3,625,299 | | | | | | 3,619,932 | | | | | $ | 2,468,847 | | | | | $ | 2,798,667 | | |
Adjusted EBITDA Margin
|
| | | | 19.6% | | | | | | 16.6% | | | | | | 14.4% | | | | | | 15.8% | | | | | | 17.9% | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||
($ in thousands)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2022
|
| |
2023
|
| |||||||||||||||
Net Cash Provided by (Used in) Operating Activities | | | | $ | 293,435 | | | | | $ | 229,147 | | | | | $ | 204,964 | | | | | $ | 39,429 | | | | | $ | 95,780 | | |
Net Cash Used in Investing Activities
|
| | | | (81,434) | | | | | | (66,366) | | | | | | (52,384) | | | | | | (63,438) | | | | | | (64,363) | | |
Net Cash Used in Financing
Activities |
| | | | (120,668) | | | | | | (54,500) | | | | | | (160,170) | | | | | | (5,129) | | | | | | (75,042) | | |
Name
|
| |
Age
|
| |
Position
|
|
Executive Officers | | | | | | | |
Mark Barrocas | | |
52
|
| | Chief Executive Officer and Director | |
Larry Flynn | | |
43
|
| | Interim Chief Financial Officer and Chief Accounting Officer | |
Pedro J. Lopez-Baldrich | | |
51
|
| | Chief Legal Officer | |
Neil Shah | | |
44
|
| | Chief Commercial Officer, EVP | |
Non-Employee Directors | | | | | | | |
CJ Xuning Wang | | |
54
|
| | Chairperson | |
Peter Feld* | | |
58
|
| | Director | |
Wendy Hayes | | |
53
|
| | Director | |
Chi Kin Max Hui | | |
50
|
| | Director | |
Dennis Paul | | |
50
|
| | Director | |
Timothy R. Warner | | |
73
|
| | Director | |
| | | | | | | | | | | | | | |
Assuming no exercise of the
underwriters’ option |
| |
Assuming full exercise of the
underwriters’ option |
| ||||||||||||||||||||||||||||||
| | |
Securities beneficially owned
prior to this offering |
| | | | | | | |
Shares beneficially
owned after this offering |
| | | | | | | |
Shares beneficially
owned after this offering |
| |||||||||||||||||||||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
Percentage
of total ordinary shares |
| |
Shares
offered hereby |
| |
Number
|
| |
Percentage
of total ordinary shares |
| |
Shares
offered hereby |
| |
Number
|
| |
Percentage
of total ordinary shares |
| ||||||||||||||||||||||||
Selling Shareholders and 5%+ Shareholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CJ Xuning Wang(1)
|
| | | | 79,258,113 | | | | | | 57.0% | | | | | | 3,200,000 | | | | | | 76,058,113 | | | | | | 54.7% | | | | | | 3,200,000 | | | | | | 76,058,113 | | | | | | 54.7% | | |
Entities affiliated with CDH(2)
|
| | | | 5,331,690 | | | | | | 3.8% | | | | | | 2,895,169 | | | | | | 2,436,521 | | | | | | 1.8% | | | | | | 3,809,444 | | | | | | 1,522,246 | | | | | | 1.1% | | |
Directors and Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mark Barrocas(3)
|
| | | | 1,322,423 | | | | | | * | | | | | | — | | | | | | 1,322,423 | | | | | | * | | | | | | — | | | | | | 1,322,423 | | | | | | * | | |
Larry Flynn
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Pedro J. Lopez-Baldrich(4)
|
| | | | 8,248 | | | | | | * | | | | | | — | | | | | | 8,248 | | | | | | * | | | | | | — | | | | | | 8,248 | | | | | | * | | |
Neil Shah(5)
|
| | | | 566,488 | | | | | | * | | | | | | — | | | | | | 566,488 | | | | | | * | | | | | | — | | | | | | 566,488 | | | | | | * | | |
CJ Xuning Wang(1)
|
| | | | 79,258,113 | | | | | | 57.0% | | | | | | 3,200,000 | | | | | | 76,058,113 | | | | | | 54.7% | | | | | | 3,200,000 | | | | | | 76,058,113 | | | | | | 54.7% | | |
Peter Feld
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Wendy Hayes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Chi Kin Max Hui(6)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Dennis Paul
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Timothy R. Warner
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All directors and executive officers as
a group (10 persons) |
| | | | 81,155,272 | | | | | | 58.4% | | | | | | 3,200,000 | | | | | | 77,955,272 | | | | | | 56.0% | | | | | | 3,200,000 | | | | | | 77,955,272 | | | | | | 56.0% | | |
Name
|
| |
Number
of Shares |
| |||
Goldman Sachs & Co. LLC
|
| | | | 1,645,696 | | |
J.P. Morgan Securities LLC
|
| | | | 1,645,696 | | |
Jefferies LLC
|
| | | | 975,227 | | |
Morgan Stanley & Co. LLC
|
| | | | 975,227 | | |
William Blair & Company, L.L.C.
|
| | | | 548,565 | | |
Guggenheim Securities, LLC
|
| | | | 304,758 | | |
Total
|
| | | | 6,095,169 | | |
| | |
No Exercise
|
| |
Full Exercise
|
| ||||||
Per Ordinary Share
|
| | | $ | 1.645 | | | | | $ | 1.645 | | |
Total
|
| | | $ | 10,026,553 | | | | | $ | 11,530,535 | | |
| | |
Amount
Paid or to be Paid |
| |||
SEC registration fee
|
| | | $ | 47,934 | | |
FINRA filing fee
|
| | | | 49,212 | | |
Printing and engraving expenses
|
| | | | 50,000 | | |
Legal fees and expenses
|
| | | | 350,000 | | |
Accounting fees and expenses
|
| | | | 150,000 | | |
Total
|
| | | $ | 647,146 | | |
| | |
Page
|
| |||
Audited Consolidated Financial Statements | | | | | | | |
| | | | F-2 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
| | | | F-9 | | | |
Unaudited Condensed Consolidated Financial Statements | | | | | | | |
| | | | F-40 | | | |
| | | | F-41 | | | |
| | | | F-42 | | | |
| | | | F-43 | | | |
| | | | F-45 | | | |
| | | | F-46 | | |
| | | | Revenue Recognition—Variable Consideration for Sales Discounts and Rebates | |
|
Description of the Matter
|
| | As described in Note 2 to the consolidated financial statements, the Company has contractual programs and practices with customers that can give rise to elements of variable consideration, including discount and rebate programs. The Company accounts for consideration payable to customers under these programs as a reduction of net sales and if the consideration payable to a customer includes a variable amount, the Company estimates the transaction price using the most likely amount method. As of December 31, 2022, the Company had accrued customer incentives of $230.2 million. | |
| | | | Auditing the Company’s accounting for variable consideration for certain non-contractual discount and rebate programs was challenging and subjective due to the degree of estimation involved in measuring the variable consideration. Given the nature and significance of the reserves associated with these discount and rebate programs, subjective auditor judgment was required to evaluate completeness of the amounts accrued for customer incentives. | |
|
How We
Addressed the Matter in Our Audit |
| | To test variable consideration related to sales discounts and rebates, our audit procedures included, among others, testing the completeness and accuracy of the underlying data used in the Company’s calculation. For a sample of customers, we agreed sales to underlying support, compared the terms of the rebate program to the underlying contract or correspondence between the Company and customer, and tested the calculation of the related accrued balance. We tested management’s lookback analysis over historical reserves compared to actual credits issued and tested a sample of credit memos issued to customers for sales discounts and rebates compared to the amounts accrued. To test the completeness of the accrued customer incentives, we compared credit notes issued after December 31, 2022 to the Company’s estimate. | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2022
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 225,362 | | | | | $ | 192,890 | | |
Restricted cash
|
| | | | 15,235 | | | | | | 25,880 | | |
Accounts receivable, net(1)
|
| | | | 841,547 | | | | | | 766,503 | | |
Inventories
|
| | | | 602,482 | | | | | | 548,588 | | |
Prepaid expenses and other current assets(2)
|
| | | | 86,426 | | | | | | 181,831 | | |
Total current assets
|
| | | | 1,771,052 | | | | | | 1,715,692 | | |
Property and equipment, net
|
| | | | 109,101 | | | | | | 137,341 | | |
Operating lease right-of-use assets
|
| | | | 73,277 | | | | | | 67,321 | | |
Intangible assets, net
|
| | | | 510,169 | | | | | | 492,709 | | |
Goodwill
|
| | | | 840,825 | | | | | | 840,148 | | |
Deferred tax assets, noncurrent
|
| | | | 7,892 | | | | | | 6,291 | | |
Other assets, noncurrent(3)
|
| | | | 44,040 | | | | | | 35,389 | | |
Total assets
|
| | | $ | 3,356,356 | | | | | $ | 3,294,891 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable(4)
|
| | | $ | 442,564 | | | | | $ | 328,122 | | |
Accrued expenses and other current liabilities(5)
|
| | | | 494,782 | | | | | | 552,023 | | |
Tax payable
|
| | | | 6,751 | | | | | | 1,581 | | |
Current portion of long-term debt
|
| | | | 49,402 | | | | | | 86,972 | | |
Total current liabilities
|
| | | | 993,499 | | | | | | 968,698 | | |
Long-term debt
|
| | | | 435,953 | | | | | | 349,169 | | |
Operating lease liabilities, noncurrent
|
| | | | 63,906 | | | | | | 61,779 | | |
Deferred tax liabilities, noncurrent
|
| | | | 81,828 | | | | | | 60,976 | | |
Other liabilities, noncurrent
|
| | | | 19,807 | | | | | | 25,980 | | |
Total liabilities
|
| | | $ | 1,594,993 | | | | | $ | 1,466,602 | | |
Commitments and contingencies (Note 9) | | | | | | | | | | | | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Ordinary shares, $0.0001 par value per share, 1,000,000,000 shares
authorized, 138,982,872 shares issued and outstanding as of December 31, 2021 and 2022 |
| | | | 14 | | | | | | 14 | | |
Additional paid-in capital
|
| | | | 954,431 | | | | | | 941,206 | | |
Retained earnings
|
| | | | 797,970 | | | | | | 896,738 | | |
Accumulated other comprehensive income (loss)
|
| | | | 8,948 | | | | | | (9,669) | | |
Total shareholders’ equity
|
| | | | 1,761,363 | | | | | | 1,828,289 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 3,356,356 | | | | | $ | 3,294,891 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
Net sales(1)
|
| | | $ | 2,753,166 | | | | | $ | 3,726,994 | | | | | $ | 3,717,366 | | |
Cost of sales(2)
|
| | | | 1,499,724 | | | | | | 2,288,810 | | | | | | 2,307,172 | | |
Gross profit
|
| | | | 1,253,442 | | | | | | 1,438,184 | | | | | | 1,410,194 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | |
Research and development(3)
|
| | | | 159,635 | | | | | | 200,641 | | | | | | 215,660 | | |
Sales and marketing
|
| | | | 445,084 | | | | | | 619,162 | | | | | | 621,953 | | |
General and administrative
|
| | | | 183,286 | | | | | | 180,124 | | | | | | 251,207 | | |
Total operating expenses
|
| | | | 788,005 | | | | | | 999,927 | | | | | | 1,088,820 | | |
Operating income
|
| | | | 465,437 | | | | | | 438,257 | | | | | | 321,374 | | |
Interest expense, net
|
| | | | (40,279) | | | | | | (16,287) | | | | | | (27,021) | | |
Other income (expense), net
|
| | | | (5,692) | | | | | | (7,644) | | | | | | 7,631 | | |
Income before income taxes
|
| | | | 419,466 | | | | | | 414,326 | | | | | | 301,984 | | |
Provision for income taxes
|
| | | | 92,268 | | | | | | 83,213 | | | | | | 69,630 | | |
Net income
|
| | | $ | 327,198 | | | | | $ | 331,113 | | | | | $ | 232,354 | | |
Net income per share, basic and diluted
|
| | | $ | 2.35 | | | | | $ | 2.38 | | | | | $ | 1.67 | | |
Weighted-average number of shares used in computing net income per share, basic and diluted | | | | | 138,982,872 | | | | | | 138,982,872 | | | | | | 138,982,872 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
Net income
|
| | | $ | 327,198 | | | | | $ | 331,113 | | | | | $ | 232,354 | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | 10,507 | | | | | | 541 | | | | | | (18,617) | | |
Comprehensive income
|
| | | $ | 337,705 | | | | | $ | 331,654 | | | | | $ | 213,737 | | |
| | |
Ordinary shares
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Retained
Earnings |
| |
Total
Shareholder’s Equity |
| |||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance as of December 31, 2019
|
| | | | 138,982,872 | | | | | $ | 14 | | | | | $ | 850,462 | | | | | $ | (2,100) | | | | | $ | 181,659 | | | | | $ | 1,030,035 | | |
Contribution from parent
|
| | | | — | | | | | | — | | | | | | 80,011 | | | | | | — | | | | | | — | | | | | | 80,011 | | |
Share-based compensation cost
|
| | | | — | | | | | | — | | | | | | 10,034 | | | | | | — | | | | | | — | | | | | | 10,034 | | |
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | 10,507 | | | | | | — | | | | | | 10,507 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 327,198 | | | | | | 327,198 | | |
Balance as of December 31, 2020
|
| | | | 138,982,872 | | | | | $ | 14 | | | | | $ | 940,507 | | | | | $ | 8,407 | | | | | $ | 508,857 | | | | | $ | 1,457,785 | | |
Distribution paid to parent
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (42,000) | | | | | | (42,000) | | |
Share-based compensation cost
|
| | | | — | | | | | | — | | | | | | 13,924 | | | | | | — | | | | | | — | | | | | | 13,924 | | |
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | 541 | | | | | | — | | | | | | 541 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 331,113 | | | | | | 331,113 | | |
Balance as of December 31, 2021
|
| | | | 138,982,872 | | | | | $ | 14 | | | | | $ | 954,431 | | | | | $ | 8,948 | | | | | $ | 797,970 | | | | | $ | 1,761,363 | | |
Distribution paid to parent
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (83,450) | | | | | | (83,450) | | |
Intercompany note to parent (Note 10)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (50,136) | | | | | | (50,136) | | |
Recharge from parent for share-based compensation
|
| | | | — | | | | | | — | | | | | | (18,734) | | | | | | — | | | | | | — | | | | | | (18,734) | | |
Share-based compensation cost
|
| | | | — | | | | | | — | | | | | | 5,509 | | | | | | — | | | | | | — | | | | | | 5,509 | | |
Other comprehensive loss, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | (18,617) | | | | | | — | | | | | | (18,617) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 232,354 | | | | | | 232,354 | | |
Balance as of December 31, 2022
|
| | | | 138,982,872 | | | | | $ | 14 | | | | | $ | 941,206 | | | | | $ | (9,669) | | | | | $ | 896,738 | | | | | $ | 1,828,289 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 327,198 | | | | | $ | 331,113 | | | | | $ | 232,354 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 78,080 | | | | | | 78,183 | | | | | | 86,708 | | |
Share-based compensation cost
|
| | | | 10,034 | | | | | | 13,924 | | | | | | 5,509 | | |
Provision for credit losses
|
| | | | 9,391 | | | | | | 7,913 | | | | | | 8,965 | | |
Non-cash lease expense
|
| | | | 11,441 | | | | | | 13,062 | | | | | | 15,475 | | |
Amortization of debt discount
|
| | | | 1,568 | | | | | | 906 | | | | | | 932 | | |
Loss on extinguishment of debt
|
| | | | 16,410 | | | | | | — | | | | | | — | | |
Deferred income taxes, net
|
| | | | (7,506) | | | | | | (15,127) | | | | | | (16,646) | | |
Loss (gain) from equity method investment
|
| | | | 3,495 | | | | | | 4,492 | | | | | | (141) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts receivable(1)
|
| | | | (335,285) | | | | | | (77,444) | | | | | | 519 | | |
Inventories
|
| | | | (179,375) | | | | | | (185,474) | | | | | | 53,894 | | |
Prepaid expenses and other assets(2)
|
| | | | (29,755) | | | | | | (47,725) | | | | | | (114,163) | | |
Accounts payable(3)
|
| | | | 198,746 | | | | | | 74,850 | | | | | | (118,161) | | |
Tax payable
|
| | | | 14,414 | | | | | | (13,343) | | | | | | (5,170) | | |
Operating lease liability
|
| | | | (10,771) | | | | | | (12,629) | | | | | | (14,316) | | |
Accrued expenses and other liabilities(4)
|
| | | | 185,350 | | | | | | 56,446 | | | | | | 69,205 | | |
Net cash provided by operating activities
|
| | | | 293,435 | | | | | | 229,147 | | | | | | 204,964 | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Purchase of property and equipment
|
| | | | (54,497) | | | | | | (47,992) | | | | | | (80,257) | | |
Purchase of intangible asset
|
| | | | (3,389) | | | | | | (5,068) | | | | | | (7,348) | | |
Capitalized internal-use software development
|
| | | | (3,193) | | | | | | (7,014) | | | | | | (6,829) | | |
Cash receipts on deferred payment in sold receivables
|
| | | | — | | | | | | — | | | | | | 42,416 | | |
Business acquisition of Qfeeltech, net of cash acquired
|
| | | | (16,860) | | | | | | — | | | | | | — | | |
Investment in equity method investment
|
| | | | (3,495) | | | | | | (4,492) | | | | | | (66) | | |
Other investing activities, net
|
| | | | — | | | | | | (1,800) | | | | | | (300) | | |
Net cash used in investing activities
|
| | | | (81,434) | | | | | | (66,366) | | | | | | (52,384) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from issuance of debt, net of issuance cost
|
| | | | 727,263 | | | | | | 110,000 | | | | | | 259,854 | | |
Repayment of debt
|
| | | | (927,942) | | | | | | (122,500) | | | | | | (310,000) | | |
Contribution from parent
|
| | | | 80,011 | | | | | | — | | | | | | — | | |
Intercompany note to parent
|
| | | | — | | | | | | — | | | | | | (49,286) | | |
Distribution paid to parent
|
| | | | — | | | | | | (42,000) | | | | | | (45,438) | | |
Recharge from parent for share-based compensation
|
| | | | — | | | | | | — | | | | | | (15,300) | | |
Net cash used in financing activities
|
| | | | (120,668) | | | | | | (54,500) | | | | | | (160,170) | | |
Effect of exchange rates changes on cash
|
| | | | 8,433 | | | | | | (704) | | | | | | (14,237) | | |
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
| | | | 99,766 | | | | | | 107,577 | | | | | | (21,827) | | |
Cash, cash equivalents, and restricted cash at beginning of year
|
| | | | 33,254 | | | | | | 133,020 | | | | | | 240,597 | | |
Cash, cash equivalents, and restricted cash at end of year
|
| | | $ | 133,020 | | | | | $ | 240,597 | | | | | $ | 218,770 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 74,513 | | | | | $ | 91,892 | | | | | $ | 90,027 | | |
Cash paid for interest
|
| | | | 17,828 | | | | | | 12,005 | | | | | | 16,322 | | |
Supplemental disclosures of noncash investing and financing activities: | | | | | | | | | | | | | | | | | | | |
Purchase of property and equipment accrued and not yet paid
|
| | | $ | 731 | | | | | $ | 4,226 | | | | | $ | 1,235 | | |
Deferred payments related to business acquisition
|
| | | | — | | | | | | 600 | | | | | | — | | |
Share-based compensation recharge not yet paid
|
| | | | — | | | | | | — | | | | | | (3,434) | | |
Deferred payment received for sold receivables
|
| | | | — | | | | | | — | | | | | | (64,710) | | |
Reconciliation of cash, cash equivalents and restricted cash within the Consolidated Balance Sheets to the amounts shown in the Statements of Cash Flows above: | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 129,928 | | | | | $ | 225,362 | | | | | $ | 192,890 | | |
Restricted cash
|
| | | | 3,092 | | | | | | 15,235 | | | | | | 25,880 | | |
Total cash, cash equivalents and restricted cash
|
| | | $ | 133,020 | | | | | $ | 240,597 | | | | | $ | 218,770 | | |
| | |
Accounts Receivable, Net
|
| |
Net Sales
|
| ||||||||||||||||||||||||
| | |
As of December 31,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
| | |
2021
|
| |
2022
|
| |
2020
|
| |
2021
|
| |
2022
|
| |||||||||||||||
Customer A
|
| | | | 16.1% | | | | | | 15.1% | | | | | | 14.5% | | | | | | 16.0% | | | | | | 17.0% | | |
Customer B
|
| | | | 10.0 | | | | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Customer C
|
| | | | * | | | | | | 19.8 | | | | | | 16.6 | | | | | | 16.1 | | | | | | 15.7 | | |
Customer D
|
| | | | * | | | | | | * | | | | | | * | | | | | | * | | | | | | 10.2 | | |
| | |
Year Ended
December 31, |
| |||
| | |
2022
|
| |||
| | |
(in thousands)
|
| |||
Beginning balance
|
| | | $ | — | | |
Non-cash addition to DPP receivable
|
| | | | 64,710 | | |
Cash collected on DPP receivable
|
| | | | (42,416) | | |
Ending balance
|
| | | $ | 22,294 | | |
| Molds and tooling | | |
3 years
|
|
| Computer and software | | |
3 years
|
|
| Displays | | |
2 years
|
|
| Equipment | | |
5 years
|
|
| Furniture and fixtures | | |
7 years
|
|
| Leasehold improvements | | |
Shorter of remaining lease
term or estimated useful life |
|
| Developed technology | | |
12 years
|
|
| Patents | | |
10 years
|
|
| Customer relationships | | |
9 years
|
|
| Trade name and trademarks | | |
Indefinite and assessed
annually for impairment |
|
| | |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||||||||||||||||||||
| | |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| ||||||||||||||||||
| | |
(in thousands, except percentages)
|
| |||||||||||||||||||||||||||||||||
North America(1)
|
| | | $ | 2,210,988 | | | | | | 80.3% | | | | | $ | 2,954,327 | | | | | | 79.3% | | | | | $ | 2,922,680 | | | | | | 78.6% | | |
Europe(2) | | | | | 428,345 | | | | | | 15.6 | | | | | | 610,942 | | | | | | 16.4 | | | | | | 629,364 | | | | | | 16.9 | | |
Rest of World
|
| | | | 113,833 | | | | | | 4.1 | | | | | | 161,725 | | | | | | 4.3 | | | | | | 165,322 | | | | | | 4.5 | | |
Total net sales
|
| | | $ | 2,753,166 | | | | | | 100% | | | | | $ | 3,726,994 | | | | | | 100% | | | | | $ | 3,717,366 | | | | | | 100% | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||||||||||||||||||||
| | |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| ||||||||||||||||||
| | |
(in thousands, except percentages)
|
| |||||||||||||||||||||||||||||||||
Shark
|
| | | $ | 1,691,877 | | | | | | 61.5% | | | | | $ | 2,005,183 | | | | | | 53.8% | | | | | $ | 2,047,972 | | | | | | 55.1% | | |
Ninja
|
| | | | 1,061,289 | | | | | | 38.5 | | | | | | 1,721,811 | | | | | | 46.2 | | | | | | 1,669,394 | | | | | | 44.9 | | |
Total net sales
|
| | | $ | 2,753,166 | | | | | | 100% | | | | | $ | 3,726,994 | | | | | | 100% | | | | | $ | 3,717,366 | | | | | | 100% | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||||||||||||||||||||
| | |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| ||||||||||||||||||
| | |
(in thousands, except percentages)
|
| |||||||||||||||||||||||||||||||||
Cleaning Appliances
|
| | | $ | 1,685,120 | | | | | | 61.2% | | | | | $ | 1,949,950 | | | | | | 52.3% | | | | | $ | 1,931,732 | | | | | | 52.0% | | |
Cooking and Beverage Appliances | | | | | 684,331 | | | | | | 24.9 | | | | | | 1,173,365 | | | | | | 31.5 | | | | | | 1,078,610 | | | | | | 29.0 | | |
Food Preparation Appliances | | | | | 376,958 | | | | | | 13.7 | | | | | | 548,447 | | | | | | 14.7 | | | | | | 590,438 | | | | | | 15.9 | | |
Other
|
| | | | 6,757 | | | | | | 0.2 | | | | | | 55,232 | | | | | | 1.5 | | | | | | 116,586 | | | | | | 3.1 | | |
Total net sales
|
| | | $ | 2,753,166 | | | | | | 100% | | | | | $ | 3,726,994 | | | | | | 100% | | | | | $ | 3,717,366 | | | | | | 100% | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Beginning balance
|
| | | $ | 9,370 | | | | | $ | 18,157 | | | | | $ | 17,828 | | |
Accruals for warranties issued during the period
|
| | | | 19,094 | | | | | | 22,147 | | | | | | 21,210 | | |
Changes in liability for pre-existing warranties during the period
|
| | | | 3,649 | | | | | | (4,555) | | | | | | 5,964 | | |
Settlements made during the period
|
| | | | (13,956) | | | | | | (17,921) | | | | | | (24,044) | | |
Ending balance
|
| | | $ | 18,157 | | | | | $ | 17,828 | | | | | $ | 20,958 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
United States
|
| | | $ | 58,901 | | | | | $ | 74,054 | | |
China
|
| | | | 42,736 | | | | | | 55,170 | | |
Rest of World
|
| | | | 7,464 | | | | | | 8,117 | | |
Total property and equipment, net
|
| | | $ | 109,101 | | | | | $ | 137,341 | | |
| | |
December 31,
|
| |||||||||
| | |
2021
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Molds and tooling
|
| | | $ | 177,038 | | | | | $ | 209,984 | | |
Computer and software
|
| | | | 71,486 | | | | | | 88,483 | | |
Displays
|
| | | | 66,576 | | | | | | 90,722 | | |
Equipment
|
| | | | 10,646 | | | | | | 14,653 | | |
Furniture and fixtures
|
| | | | 9,894 | | | | | | 11,418 | | |
Leasehold improvements
|
| | | | 23,701 | | | | | | 31,315 | | |
Total property and equipment
|
| | | | 359,341 | | | | | | 446,575 | | |
Less: accumulated depreciation and amortization
|
| | | | (265,582) | | | | | | (322,022) | | |
Construction in progress
|
| | | | 15,342 | | | | | | 12,788 | | |
Property and equipment, net
|
| | | $ | 109,101 | | | | | $ | 137,341 | | |
| | |
December 31,
|
| |||||||||
| | |
2021
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Prepaid expenses
|
| | | $ | 22,010 | | | | | $ | 86,274 | | |
Related party receivables
|
| | | | 38,012 | | | | | | 20,069 | | |
Derivative assets
|
| | | | — | | | | | | 22,676 | | |
| | |
December 31,
|
| |||||||||
| | |
2021
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
DPP receivable
|
| | | | — | | | | | | 22,294 | | |
Other receivables
|
| | | | 26,404 | | | | | | 30,518 | | |
Prepaid expenses and other current assets
|
| | | $ | 86,426 | | | | | $ | 181,831 | | |
|
| | |
December 31,
|
| |||||||||
| | |
2021
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Accrued customer incentives
|
| | | $ | 207,040 | | | | | $ | 230,195 | | |
Accrued expenses
|
| | | | 92,400 | | | | | | 95,785 | | |
Accrued compensation and benefits
|
| | | | 60,596 | | | | | | 71,762 | | |
Accrued returns
|
| | | | 46,436 | | | | | | 45,529 | | |
Accrued tax payables
|
| | | | 34,646 | | | | | | 43,243 | | |
Accrued warranty
|
| | | | 17,828 | | | | | | 20,958 | | |
Operating lease liabilities, current
|
| | | | 14,491 | | | | | | 13,038 | | |
Accrued professional fees
|
| | | | 3,079 | | | | | | 4,177 | | |
Other
|
| | | | 18,266 | | | | | | 27,336 | | |
Accrued expenses and other current liabilities
|
| | | $ | 494,782 | | | | | $ | 552,023 | | |
| | |
December 31, 2022
|
| |||||||||||||||||||||
| | |
Fair Value
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivatives not designated as hedging instruments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward contracts included in prepaid expenses and other current assets
|
| | | $ | 22,676 | | | | | $ | — | | | | | $ | 22,676 | | | | | $ | — | | |
DPP receivable included in prepaid expenses and other current assets | | | | | 22,294 | | | | | | — | | | | | | — | | | | | | 22,294 | | |
Total financial assets
|
| | | $ | 44,970 | | | | | $ | — | | | | | $ | 22,676 | | | | | $ | 22,294 | | |
| | |
Gross Carrying
Value |
| |
Accumulated
Amortization |
| |
Net Carrying
Value |
| |
Weighted-
Average Remaining Useful Life |
| |||||||||
| | |
(in thousands)
|
| |
(in years)
|
| |||||||||||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | | | | | | | | | | |
Customer relationships
|
| | | $ | 143,083 | | | | | $ | (67,567) | | | | | $ | 75,516 | | | |
4.8
|
|
Patents
|
| | | | 45,347 | | | | | | (15,678) | | | | | | 29,669 | | | |
6.5
|
|
Developed technology
|
| | | | 23,653 | | | | | | (2,709) | | | | | | 20,944 | | | |
10.2
|
|
Total intangible assets subject to amortization
|
| | | $ | 212,083 | | | | | $ | (85,954) | | | | | $ | 126,129 | | | | | |
| | |
Gross Carrying
Value |
| |
Accumulated
Amortization |
| |
Net Carrying
Value |
| |
Weighted-
Average Remaining Useful Life |
| |||||||||
| | |
(in thousands)
|
| |
(in years)
|
| |||||||||||||||
Intangible assets not subject to amortization: | | | | | | | | | | | | | | | | | | | | | | |
Trade name and trademarks
|
| | | | 384,040 | | | | | | — | | | | | | 384,040 | | | |
Indefinite
|
|
Total intangible assets, net
|
| | | $ | 596,123 | | | | | $ | (85,954) | | | | | $ | 510,169 | | | | | |
|
| | |
Gross Carrying
Value |
| |
Accumulated
Amortization |
| |
Net Carrying
Value |
| |
Weighted-
Average Remaining Useful Life |
| |||||||||
| | |
(in thousands)
|
| |
(in years)
|
| |||||||||||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | | | | | | | | | | |
Customer relationships
|
| | | $ | 143,083 | | | | | $ | (83,465) | | | | | $ | 59,618 | | | |
3.8
|
|
Patents
|
| | | | 52,695 | | | | | | (19,874) | | | | | | 32,821 | | | |
6.2
|
|
Developed technology
|
| | | | 21,381 | | | | | | (5,151) | | | | | | 16,230 | | | |
9.2
|
|
Total intangible assets subject to amortization
|
| | | $ | 217,159 | | | | | $ | (108,490) | | | | | $ | 108,669 | | | | | |
Intangible assets not subject to amortization: | | | | | | | | | | | | | | | | | | | | | | |
Trade name and trademarks
|
| | | | 384,040 | | | | | | — | | | | | | 384,040 | | | |
Indefinite
|
|
Total intangible assets, net
|
| | | $ | 601,199 | | | | | $ | (108,490) | | | | | $ | 492,709 | | | | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Research and development
|
| | | $ | 4,800 | | | | | $ | 5,443 | | | | | $ | 6,637 | | |
Sales and marketing
|
| | | | 15,898 | | | | | | 15,898 | | | | | | 15,898 | | |
Total amortization expenses
|
| | | $ | 20,698 | | | | | $ | 21,341 | | | | | $ | 22,535 | | |
| | |
Amount
|
| |||
| | |
(in thousands)
|
| |||
Year Ending December 31, | | | | | | | |
2023
|
| | | $ | 24,024 | | |
2024
|
| | | | 22,851 | | |
2025
|
| | | | 22,851 | | |
2026
|
| | | | 18,877 | | |
2027
|
| | | | 6,031 | | |
Thereafter
|
| | | | 14,035 | | |
Total
|
| | | $ | 108,669 | | |
| | |
Carrying Amount
|
| |||
| | |
(in thousands)
|
| |||
Balance as of December 31, 2020
|
| | | $ | 839,767 | | |
Addition from acquisition
|
| | | | 830 | | |
Effect of foreign currency translation
|
| | | | 228 | | |
Balance as of December 31, 2021
|
| | | $ | 840,825 | | |
Effect of foreign currency translation
|
| | | | (677) | | |
Balance as of December 31, 2022
|
| | | $ | 840,148 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Operating lease cost
|
| | | $ | 14,406 | | | | | $ | 16,201 | | | | | $ | 18,886 | | |
Variable lease cost
|
| | | | 908 | | | | | | 5,294 | | | | | | 7,024 | | |
Short-term lease cost
|
| | | | 141 | | | | | | 450 | | | | | | 603 | | |
Total lease cost
|
| | | $ | 15,455 | | | | | $ | 21,945 | | | | | $ | 26,513 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Cash payment for operating lease liabilities
|
| | | $ | 13,624 | | | | | $ | 16,020 | | | | | $ | 16,834 | | |
Operating lease liabilities arising from obtaining new operating lease ROU assets during the period | | | | $ | 28,388 | | | | | $ | 19,343 | | | | | $ | 11,089 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Weighted-average remaining lease term (years)
|
| | | | 6.9 | | | | | | 6.5 | | | | | | 6.4 | | |
Weighted-average discount rate
|
| | | | 4.0% | | | | | | 4.3% | | | | | | 4.4% | | |
| | |
Amount
|
| |||
| | |
(in thousands)
|
| |||
Year Ending December 31, | | | | | | | |
2023
|
| | | $ | 16,099 | | |
2024
|
| | | | 14,984 | | |
2025
|
| | | | 9,757 | | |
2026
|
| | | | 9,992 | | |
2027
|
| | | | 10,166 | | |
Thereafter
|
| | | | 26,178 | | |
Total undiscounted lease payments
|
| | | | 87,176 | | |
Less: Imputed interest
|
| | | | (12,359) | | |
Total operating lease liabilities
|
| | | $ | 74,817 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
2020 Term Loans with principal payments due on March 20 each year; interest at LIBOR plus 1.8%; final balance due on maturity date of March 19, 2025 | | | | $ | 487,500 | | | | | $ | 437,500 | | |
Less: deferred financing costs
|
| | | | (2,145) | | | | | | (1,359) | | |
Less: current portion
|
| | | | (49,402) | | | | | | (86,972) | | |
Long-term debt, net of current portion
|
| | | $ | 435,953 | | | | | $ | 349,169 | | |
| | |
Amount
|
| |||
| | |
(in thousands)
|
| |||
Year Ending December 31, | | | | | | | |
2023
|
| | | $ | 87,500 | | |
2024
|
| | | | 150,000 | | |
2025
|
| | | | 200,000 | | |
Total future principal payments
|
| | | $ | 437,500 | | |
| | |
Number of
Shares |
| |
Weighted
Average Grant Date Fair Value per share |
| ||||||
Unvested as of January 1, 2020
|
| | | | 39,369,904 | | | | | $ | 0.63 | | |
Granted
|
| | | | — | | | | | $ | — | | |
Vested
|
| | | | (9,842,476) | | | | | $ | 0.63 | | |
Cancelled/Forfeited
|
| | | | (1,062,138) | | | | | $ | 0.63 | | |
Unvested as of December 31, 2020
|
| | | | 28,465,290 | | | | | $ | 0.63 | | |
Granted
|
| | | | 7,828,742 | | | | | $ | 2.40 | | |
Vested
|
| | | | (11,641,344) | | | | | $ | 0.97 | | |
Cancelled/Forfeited
|
| | | | (2,834,565) | | | | | $ | 1.62 | | |
Unvested as of December 31, 2021
|
| | | | 21,818,123 | | | | | $ | 0.96 | | |
Granted
|
| | | | 808,000 | | | | | $ | 1.00 | | |
Vested
|
| | | | (11,039,443) | | | | | $ | 0.97 | | |
Cancelled/Forfeited
|
| | | | (1,331,946) | | | | | $ | 0.88 | | |
Unvested as of December 31, 2022
|
| | | | 10,254,734 | | | | | $ | 0.97 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Research and development
|
| | | $ | 1,713 | | | | | $ | 2,918 | | | | | $ | 1,741 | | |
Sales and marketing
|
| | | | 1,866 | | | | | | 1,755 | | | | | | 459 | | |
General and administrative
|
| | | | 6,455 | | | | | | 9,251 | | | | | | 3,309 | | |
Total share-based compensation cost
|
| | | $ | 10,034 | | | | | $ | 13,924 | | | | | $ | 5,509 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
United States
|
| | | $ | 345,614 | | | | | $ | 386,023 | | | | | $ | 250,421 | | |
Foreign
|
| | | | 73,852 | | | | | | 28,303 | | | | | | 51,563 | | |
Total income before income taxes
|
| | | $ | 419,466 | | | | | $ | 414,326 | | | | | $ | 301,984 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Current: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | 67,712 | | | | | $ | 65,586 | | | | | $ | 62,838 | | |
State
|
| | | | 15,968 | | | | | | 15,478 | | | | | | 13,362 | | |
Foreign
|
| | | | 16,094 | | | | | | 17,276 | | | | | | 10,076 | | |
Total current income tax expense
|
| | | | 99,774 | | | | | | 98,340 | | | | | | 86,276 | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | | (5,349) | | | | | | (4,913) | | | | | | (24,970) | | |
State
|
| | | | (138) | | | | | | (2,621) | | | | | | 3,020 | | |
Foreign
|
| | | | (2,019) | | | | | | (7,593) | | | | | | 5,304 | | |
Total deferred income tax benefit
|
| | | | (7,506) | | | | | | (15,127) | | | | | | (16,646) | | |
Total provision for income taxes
|
| | | $ | 92,268 | | | | | $ | 83,213 | | | | | $ | 69,630 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
| | |
(in percentage)
|
| |||||||||||||||
Federal statutory income tax rate
|
| | | | 21.0% | | | | | | 21.0% | | | | | | 21.0% | | |
State tax, net of federal benefit
|
| | | | 3.0 | | | | | | 2.6 | | | | | | 2.0 | | |
Permanent differences
|
| | | | (0.2) | | | | | | (0.3) | | | | | | (0.4) | | |
Foreign-derived intangible income
|
| | | | (0.9) | | | | | | (1.6) | | | | | | 0.0 | | |
Research and development credits, net
|
| | | | (1.0) | | | | | | (1.3) | | | | | | (3.0) | | |
Tax uncertainties
|
| | | | (0.1) | | | | | | 0.0 | | | | | | 0.4 | | |
Deferred tax adjustments
|
| | | | 0.1 | | | | | | 0.4 | | | | | | (0.2) | | |
Excess tax benefits from share-based compensation
|
| | | | (0.2) | | | | | | (1.3) | | | | | | (0.2) | | |
Change in valuation allowance
|
| | | | — | | | | | | — | | | | | | 2.6 | | |
Foreign rate differential
|
| | | | (0.6) | | | | | | (0.3) | | | | | | (0.3) | | |
Other tax rate items
|
| | | | 0.9 | | | | | | 0.9 | | | | | | 1.2 | | |
Total
|
| | | | 22.0% | | | | | | 20.1% | | | | | | 23.1% | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Deferred tax assets: | | | | | | | | | | | | | |
Accrued expenses and reserves
|
| | | $ | 41,526 | | | | | $ | 33,778 | | |
Operating lease liabilities
|
| | | | 17,647 | | | | | | 15,401 | | |
Share-based compensation
|
| | | | 3,431 | | | | | | 2,215 | | |
Net operating loss carryforwards
|
| | | | 1,198 | | | | | | 6,587 | | |
Capitalized research and development expenditures
|
| | | | — | | | | | | 37,180 | | |
Other
|
| | | | 3,982 | | | | | | 7,463 | | |
Gross deferred tax assets
|
| | | | 67,784 | | | | | | 102,624 | | |
Valuation allowance
|
| | | | — | | | | | | (7,903) | | |
Total deferred tax assets, net of valuation allowance
|
| | | $ | 67,784 | | | | | $ | 94,721 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Goodwill and intangible assets
|
| | | | (125,545) | | | | | | (128,712) | | |
Property and equipment, net
|
| | | | (1,309) | | | | | | (3,887) | | |
Derivative financial instruments
|
| | | | — | | | | | | (4,367) | | |
Right-of-use assets
|
| | | | (14,866) | | | | | | (12,439) | | |
Total deferred tax liabilities
|
| | | | (141,720) | | | | | | (149,405) | | |
Net deferred tax liabilities
|
| | | $ | (73,936) | | | | | $ | (54,685) | | |
| | |
Unrecognized
Tax Positions |
| |||
| | |
(in thousands)
|
| |||
Balance – January 1, 2020
|
| | | $ | 3,875 | | |
Statute of limitations release
|
| | | | (876) | | |
Balance – December 31, 2020
|
| | | $ | 2,999 | | |
Additions related to current year tax positions
|
| | | | 12 | | |
Statute of limitations release
|
| | | | (903) | | |
Balance – December 31, 2021
|
| | | $ | 2,108 | | |
Additions related to prior year tax positions
|
| | | | 982 | | |
Statute of limitations release
|
| | | | (673) | | |
Balance – December 31, 2022
|
| | | $ | 2,417 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 327,198 | | | | | $ | 331,113 | | | | | $ | 232,354 | | |
Denominator: | | | | | | | | | | | | | | | | | | | |
Weighted-average shares used in computing net income per share, basic and diluted
|
| | | | 138,982,872 | | | | | | 138,982,872 | | | | | | 138,982,872 | | |
Net income per share, basic and diluted
|
| | | $ | 2.35 | | | | | $ | 2.38 | | | | | $ | 1.67 | | |
| | |
Year Ended December 31,
|
| |
Balance Outstanding
as of December 31, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2021
|
| |
2022
|
| |
2021
|
| |
2022
|
| |||||||||||||||
| | |
(in thousands)
|
| |
(in thousands)
|
| ||||||||||||||||||||||||
Balances and transactions with joint venture | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sale of goods
|
| | | $ | 20,496 | | | | | $ | 12,107 | | | | | $ | 766 | | | | | $ | — | | | | | $ | — | | |
Accounts receivable, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | 11,846 | | | | | | — | | |
Balances and transactions with other entities controlled by JS Global | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sale of goods
|
| | | $ | — | | | | | $ | — | | | | | $ | 685 | | | | | $ | — | | | | | $ | — | | |
Purchase of goods
|
| | | | 296,744 | | | | | | 1,381,815 | | | | | | 1,444,777 | | | | | | — | | | | | | — | | |
Purchase of services
|
| | | | — | | | | | | 4,030 | | | | | | 3,561 | | | | | | — | | | | | | — | | |
Accounts receivable, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,033 | | |
Prepaid expenses and other current assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | 28,000 | | | | | | 2,886 | | |
Other assets, noncurrent
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2,196 | | | | | | — | | |
Accounts payable
|
| | | | — | | | | | | — | | | | | | — | | | | | | 303,033 | | | | | | 231,805 | | |
Accrued expenses and other current liabilities
|
| | | | | | | | | | | | | | | | | | | | | | 1,466 | | | | | | 861 | | |
Balances with JS Global | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Prepaid expenses and other current assets
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 10,012 | | | | | $ | — | | |
Accrued expenses and other current liabilities
|
| | | | — | | | | | | — | | | | | | — | | | | | | 8,174 | | | | | | 7,538 | | |
| | |
Balance at
Beginning of Year |
| |
Charges to
Net sales |
| |
Charges
(Benefits) to Expense |
| |
Deductions/
Write-offs |
| |
Balance at
End of Year |
| |||||||||||||||
Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year ended December 31, 2022
|
| | | $ | 1,783 | | | | | $ | — | | | | | $ | 8,965 | | | | | $ | (3,750) | | | | | $ | 6,998 | | |
Year ended December 31, 2021
|
| | | | 1,422 | | | | | | — | | | | | | 7,913 | | | | | | (7,552) | | | | | | 1,783 | | |
Year ended December 31, 2020
|
| | | | 580 | | | | | | — | | | | | | 9,391 | | | | | | (8,549) | | | | | | 1,422 | | |
Allowance for sales returns: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year ended December 31, 2022
|
| | | $ | 46,436 | | | | | $ | 201,453 | | | | | $ | — | | | | | $ | (202,360) | | | | | $ | 45,529 | | |
Year ended December 31, 2021
|
| | | | 47,633 | | | | | | 190,108 | | | | | | — | | | | | | (191,305) | | | | | | 46,436 | | |
Year ended December 31, 2020
|
| | | | 32,271 | | | | | | 142,471 | | | | | | — | | | | | | (127,109) | | | | | | 47,633 | | |
| | |
As of
|
| |||||||||
| | |
December 31,
2022 |
| |
September 30,
2023 |
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 192,890 | | | | | $ | 170,377 | | |
Restricted cash
|
| | | | 25,880 | | | | | | — | | |
Accounts receivable, net(1)
|
| | | | 766,503 | | | | | | 938,081 | | |
Inventories
|
| | | | 548,588 | | | | | | 792,195 | | |
Prepaid expenses and other current assets(2)
|
| | | | 181,831 | | | | | | 86,471 | | |
Total current assets
|
| | | | 1,715,692 | | | | | | 1,987,124 | | |
Property and equipment, net
|
| | | | 137,341 | | | | | | 149,250 | | |
Operating lease right-of-use assets
|
| | | | 67,321 | | | | | | 64,156 | | |
Intangible assets, net
|
| | | | 492,709 | | | | | | 481,754 | | |
Goodwill
|
| | | | 840,148 | | | | | | 833,972 | | |
Deferred tax assets, noncurrent
|
| | | | 6,291 | | | | | | — | | |
Other assets, noncurrent
|
| | | | 35,389 | | | | | | 48,983 | | |
Total assets
|
| | | $ | 3,294,891 | | | | | $ | 3,565,239 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable(3)
|
| | | $ | 328,122 | | | | | $ | 646,697 | | |
Accrued expenses and other current liabilities(4)
|
| | | | 552,023 | | | | | | 451,400 | | |
Tax payable
|
| | | | 1,581 | | | | | | 2,615 | | |
Current portion of long-term debt
|
| | | | 86,972 | | | | | | 19,127 | | |
Total current liabilities
|
| | | | 968,698 | | | | | | 1,119,839 | | |
Long-term debt
|
| | | | 349,169 | | | | | | 785,443 | | |
Operating lease liabilities, noncurrent
|
| | | | 61,779 | | | | | | 62,616 | | |
Deferred tax liabilities, noncurrent
|
| | | | 60,976 | | | | | | 47,266 | | |
Other liabilities, noncurrent
|
| | | | 25,980 | | | | | | 27,730 | | |
Total liabilities
|
| | | | 1,466,602 | | | | | | 2,042,894 | | |
Commitments and contingencies (Note 9) | | | | | | | | | | | | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Ordinary shares, $0.0001 par value per share, 1,000,000,000 shares authorized and 138,982,872 shares issued and outstanding as of December 31, 2022 and September 30, 2023 | | | | | 14 | | | | | | 14 | | |
Additional paid-in capital
|
| | | | 941,206 | | | | | | 959,248 | | |
Retained earnings
|
| | | | 896,738 | | | | | | 571,174 | | |
Accumulated other comprehensive loss
|
| | | | (9,669) | | | | | | (8,091) | | |
Total shareholders’ equity
|
| | | | 1,828,289 | | | | | | 1,522,345 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 3,294,891 | | | | | $ | 3,565,239 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||
Net sales(1)
|
| | | $ | 946,897 | | | | | $ | 1,070,617 | | | | | $ | 2,534,720 | | | | | $ | 2,876,211 | | |
Cost of sales(2)
|
| | | | 603,413 | | | | | | 583,124 | | | | | | 1,547,843 | | | | | | 1,591,254 | | |
Gross profit
|
| | | | 343,484 | | | | | | 487,493 | | | | | | 986,877 | | | | | | 1,284,957 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development(3)
|
| | | | 53,968 | | | | | | 60,691 | | | | | | 159,955 | | | | | | 180,430 | | |
Sales and marketing
|
| | | | 133,137 | | | | | | 207,599 | | | | | | 405,319 | | | | | | 568,035 | | |
General and administrative(4)
|
| | | | 47,299 | | | | | | 124,655 | | | | | | 154,035 | | | | | | 263,682 | | |
Total operating expenses
|
| | | | 234,404 | | | | | | 392,945 | | | | | | 719,309 | | | | | | 1,012,147 | | |
Operating income
|
| | | | 109,080 | | | | | | 94,548 | | | | | | 267,568 | | | | | | 272,810 | | |
Interest expense, net
|
| | | | (8,479) | | | | | | (13,003) | | | | | | (18,561) | | | | | | (28,523) | | |
Other income (expense), net
|
| | | | 2,033 | | | | | | (5,865) | | | | | | (8,841) | | | | | | (41,315) | | |
Income before income taxes
|
| | | | 102,634 | | | | | | 75,680 | | | | | | 240,166 | | | | | | 202,972 | | |
Provision for income taxes
|
| | | | 22,325 | | | | | | 56,958 | | | | | | 54,451 | | | | | | 85,218 | | |
Net income
|
| | | $ | 80,309 | | | | | $ | 18,722 | | | | | $ | 185,715 | | | | | $ | 117,754 | | |
Net income per share, basic
|
| | | $ | 0.58 | | | | | $ | 0.13 | | | | | $ | 1.34 | | | | | $ | 0.85 | | |
Net income per share, diluted
|
| | | $ | 0.58 | | | | | $ | 0.13 | | | | | $ | 1.34 | | | | | $ | 0.85 | | |
Weighted-average number of shares used in
computing net income per share, basic |
| | | | 138,982,872 | | | | | | 139,073,181 | | | | | | 138,982,872 | | | | | | 139,059,206 | | |
Weighted-average number of shares used in
computing net income per share, diluted |
| | | | 138,982,872 | | | | | | 139,430,805 | | | | | | 138,982,872 | | | | | | 139,179,724 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||
Net income
|
| | | $ | 80,309 | | | | | $ | 18,722 | | | | | $ | 185,715 | | | | | $ | 117,754 | | |
Other comprehensive (loss) income, net of tax: | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | (15,885) | | | | | | (12,380) | | | | | | (35,742) | | | | | | (3,967) | | |
Unrealized gain on derivative instruments, net
|
| | | | — | | | | | | 14,486 | | | | | | — | | | | | | 5,545 | | |
Comprehensive income
|
| | | $ | 64,424 | | | | | $ | 20,828 | | | | | $ | 149,973 | | | | | $ | 119,332 | | |
| | |
Three Months Ended September 30, 2022
|
| | | | | |||||||||||||||||||||||||||||||||||||||||
| | |
Ordinary shares
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Loss |
| |
Total
Shareholders’ Equity |
| | | | | |||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | | | | | | | | | | | | ||||||||||||||||||||||||||||||
Balance as of June 30,2022
|
| | | | 138,982,872 | | | | | $ | 14 | | | | | $ | 943,577 | | | | | $ | 778,565 | | | | | $ | (10,909) | | | | | $ | 1,711,247 | | | | | | | ||||||||
Intercompany note to Former Parent (Note 10)
|
| | | | — | | | | | | — | | | | | | — | | | | | | (8,283) | | | | | | — | | | | | | (8,283) | | | | | | | ||||||||
Share-based compensation
|
| | | | — | | | | | | — | | | | | | 969 | | | | | | — | | | | | | — | | | | | | 969 | | | | | | | ||||||||
Other comprehensive loss, net of
tax |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (15,885) | | | | | | (15,885) | | | | | | | ||||||||
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 80,309 | | | | | | — | | | | | | 80,309 | | | | | | | ||||||||
Balance as of September 30, 2022
|
| | | | 138,982,872 | | | | | $ | 14 | | | | | $ | 944,546 | | | | | $ | 850,591 | | | | | $ | (26,794) | | | | | $ | 1,768,357 | | | | | | |
| | |
Three Months Ended September 30, 2023
|
| | | | | |||||||||||||||||||||||||||||||||||||||||
| | |
Ordinary shares
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
Shareholders’ Equity |
| | | | | |||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | | | | | | | | | | | | ||||||||||||||||||||||||||||||
Balance as of June 30,2023
|
| | | | 138,982,872 | | | | | $ | 14 | | | | | $ | 941,206 | | | | | $ | 935,487 | | | | | $ | (10,197) | | | | | $ | 1,866,510 | | | | | | | ||||||||
Share-based compensation
|
| | | | — | | | | | | — | | | | | | 21,337 | | | | | | — | | | | | | — | | | | | | 21,337 | | | | | | | ||||||||
Distribution paid to Former Parent
|
| | | | — | | | | | | — | | | | | | — | | | | | | (383,035) | | | | | | — | | | | | | (383,035) | | | | | | | ||||||||
Sale of SharkNinja Co, Ltd. to Former Parent
|
| | | | — | | | | | | — | | | | | | (3,295) | | | | | | — | | | | | | — | | | | | | (3,295) | | | | | | | ||||||||
Other comprehensive income, net of
tax |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,106 | | | | | | 2,106 | | | | | | | ||||||||
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 18,722 | | | | | | — | | | | | | 18,722 | | | | | | | ||||||||
Balance as of September 30, 2023
|
| | | | 138,982,872 | | | | | $ | 14 | | | | | $ | 959,248 | | | | | $ | 571,174 | | | | | $ | (8,091) | | | | | $ | 1,522,345 | | | | | | |
| | |
Nine Months Ended September 30, 2022
|
| | | | | |||||||||||||||||||||||||||||||||||||||||
| | |
Ordinary shares
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
Shareholders’ Equity |
| | | | | |||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | | | | | | | | | | | | ||||||||||||||||||||||||||||||
Balance as of December 31, 2021
|
| | | | 138,928,872 | | | | | $ | 14 | | | | | $ | 954,431 | | | | | $ | 797,970 | | | | | $ | 8,948 | | | | | $ | 1,761,363 | | | | | | | ||||||||
Distribution paid to Former Parent
|
| | | | — | | | | | | — | | | | | | — | | | | | | (83,450) | | | | | | — | | | | | | (83,450) | | | | | | | ||||||||
Intercompany note to Former Parent (Note 10)
|
| | | | — | | | | | | — | | | | | | — | | | | | | (49,644) | | | | | | — | | | | | | (49,644) | | | | | | | ||||||||
Share-based compensation
|
| | | | — | | | | | | — | | | | | | 5,415 | | | | | | — | | | | | | — | | | | | | 5,415 | | | | | | | ||||||||
Recharge from Former Parent for share-based compensation
|
| | | | — | | | | | | — | | | | | | (15,300) | | | | | | — | | | | | | — | | | | | | (15,300) | | | | | | | ||||||||
Other comprehensive loss, net of
tax |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (35,742) | | | | | | (35,742) | | | | | | | ||||||||
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 185,715 | | | | | | — | | | | | | 185,715 | | | | | | | ||||||||
Balance as of September 30, 2022
|
| | | | 138,928,872 | | | | | $ | 14 | | | | | $ | 944,546 | | | | | $ | 850,591 | | | | | $ | (26,794) | | | | | $ | 1,768,357 | | | | | | |
| | |
Nine Months Ended September 30, 2023
|
| | | | | |||||||||||||||||||||||||||||||||||||||||
| | |
Ordinary shares
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
Shareholders’ Equity |
| | | | | |||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | | | | | | | | | | | | ||||||||||||||||||||||||||||||
Balance as of December 31, 2022
|
| | | | 138,982,872 | | | | | $ | 14 | | | | | $ | 941,206 | | | | | $ | 896,738 | | | | | $ | (9,669) | | | | | $ | 1,828,289 | | | | | | | ||||||||
Distribution paid to Former Parent
|
| | | | — | | | | | | — | | | | | | — | | | | | | (443,318) | | | | | | — | | | | | | (443,318) | | | | | | | ||||||||
Share-based compensation
|
| | | | — | | | | | | — | | | | | | 24,502 | | | | | | — | | | | | | — | | | | | | 24,502 | | | | | | | ||||||||
Recharge from Former Parent for share-based compensation
|
| | | | — | | | | | | — | | | | | | (3,165) | | | | | | — | | | | | | — | | | | | | (3,165) | | | | | | | ||||||||
Sale of SharkNinja Co, Ltd. to Former Parent
|
| | | | — | | | | | | — | | | | | | (3,295) | | | | | | — | | | | | | — | | | | | | (3,295) | | | | | | | ||||||||
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,578 | | | | | | 1,578 | | | | | | | ||||||||
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 117,754 | | | | | | — | | | | | | 117,754 | | | | | | | ||||||||
Balance as of September 30, 2023
|
| | | | 138,982,872 | | | | | $ | 14 | | | | | $ | 959,248 | | | | | $ | 571,174 | | | | | $ | (8,091) | | | | | $ | 1,522,345 | | | | | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2022
|
| |
2023
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 185,715 | | | | | $ | 117,754 | | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 61,560 | | | | | | 77,394 | | |
Share-based compensation
|
| | | | 5,415 | | | | | | 24,502 | | |
Provision for credit losses
|
| | | | 1,149 | | | | | | 2,266 | | |
Non-cash lease expense
|
| | | | 12,318 | | | | | | 9,688 | | |
Amortization of debt discount
|
| | | | 700 | | | | | | 694 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | 968 | | |
Deferred income taxes, net
|
| | | | (13,620) | | | | | | 3,905 | | |
Loss from equity method investment
|
| | | | 361 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable(1)
|
| | | | 137,191 | | | | | | (192,209) | | |
Inventories
|
| | | | (86,068) | | | | | | (258,982) | | |
Prepaid expenses and other assets(2)
|
| | | | (104,114) | | | | | | 65,508 | | |
Accounts payable(3)
|
| | | | (93,877) | | | | | | 343,603 | | |
Tax payable
|
| | | | 18,308 | | | | | | 883 | | |
Operating lease liabilities
|
| | | | (11,603) | | | | | | (9,280) | | |
Accrued expenses and other liabilities(4)
|
| | | | (74,006) | | | | | | (90,914) | | |
Net cash provided by operating activities
|
| | | | 39,429 | | | | | | 95,780 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchase of property and equipment
|
| | | | (52,872) | | | | | | (70,501) | | |
Purchase of intangible asset
|
| | | | (4,919) | | | | | | (6,905) | | |
Capitalized internal-use software development
|
| | | | (4,986) | | | | | | (683) | | |
Cash receipts on beneficial interest in sold receivables
|
| | | | — | | | | | | 16,777 | | |
Investment in equity method investment
|
| | | | (361) | | | | | | — | | |
Other investing activities, net
|
| | | | (300) | | | | | | (3,051) | | |
Net cash used in investing activities
|
| | | | (63,438) | | | | | | (64,363) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from issuance of debt, net of issuance cost
|
| | | | 259,895 | | | | | | 800,915 | | |
Repayment of debt
|
| | | | (155,000) | | | | | | (437,500) | | |
Intercompany note to Former Parent (Note 10)
|
| | | | (49,286) | | | | | | — | | |
Distribution paid to Former Parent
|
| | | | (45,438) | | | | | | (435,292) | | |
Recharge from Former Parent for share-based compensation
|
| | | | (15,300) | | | | | | (3,165) | | |
Net cash used in financing activities
|
| | | | (5,129) | | | | | | (75,042) | | |
Effect of exchange rates changes on cash
|
| | | | (11,782) | | | | | | (4,768) | | |
Net decrease in cash, cash equivalents, and restricted cash
|
| | | | (40,920) | | | | | | (48,393) | | |
Cash, cash equivalents, and restricted cash at beginning of period
|
| | | | 240,597 | | | | | | 218,770 | | |
Cash, cash equivalents, and restricted cash at end of period
|
| | | $ | 199,677 | | | | | $ | 170,377 | | |
Supplemental disclosures of noncash investing and financing activities: | | | | | | | | | | | | | |
Purchase of property and equipment accrued and not yet paid
|
| | | $ | 480 | | | | | $ | 408 | | |
Cancellation of related party note through distribution
|
| | | | — | | | | | | (8,026) | | |
Unrealized loss on cash flow hedges
|
| | | | — | | | | | | 5,725 | | |
Reconciliation of cash, cash equivalents and restricted cash within the Condensed Consolidated Balance Sheets to the amounts shown in the Condensed Consolidated Statements of Cash Flows above: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 181,950 | | | | | $ | 170,377 | | |
Restricted cash
|
| | | | 17,727 | | | | | | — | | |
Total cash, cash equivalents and restricted cash
|
| | | $ | 199,677 | | | | | $ | 170,377 | | |
| | |
As of
|
| |||||||||
| | |
December 31,
2022 |
| |
September 30,
2023 |
| ||||||
Customer A
|
| | | | 15.1% | | | | | | 21.4% | | |
Customer B
|
| | | | * | | | | | | 10.0 | | |
Customer C
|
| | | | 19.8 | | | | | | 13.0 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||
Customer A
|
| | | | 18.5% | | | | | | 19.2% | | | | | | 18.6% | | | | | | 18.9% | | |
Customer B
|
| | | | 10.5 | | | | | | * | | | | | | 11.3 | | | | | | * | | |
Customer C
|
| | | | 14.1 | | | | | | 15.2 | | | | | | 14.8 | | | | | | 15.0 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Beginning balance
|
| | | $ | 960 | | | | | $ | 6,926 | | | | | $ | 1,783 | | | | | $ | 6,998 | | |
Provision for credit losses
|
| | | | 202 | | | | | | 1,048 | | | | | | 1,149 | | | | | | 2,266 | | |
Write-offs and other adjustments
|
| | | | (212) | | | | | | (1,328) | | | | | | (1,982) | | | | | | (2,618) | | |
Ending balance
|
| | | $ | 950 | | | | | $ | 6,646 | | | | | $ | 950 | | | | | $ | 6,646 | | |
| | |
As of
|
| |||||||||
| | |
December 31,
2022 |
| |
September 30,
2023 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Beginning balance
|
| | | $ | — | | | | | $ | 22,294 | | |
Non-cash addition to DPP receivable
|
| | | | 64,710 | | | | | | — | | |
Cash collected on DPP receivable
|
| | | | (42,416) | | | | | | (16,777) | | |
Non-cash adjustments
|
| | | | — | | | | | | (5,517) | | |
Ending balance
|
| | | $ | 22,294 | | | | | $ | — | | |
| | |
Three Months Ended September 30,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| ||||||||||||||||||||||||
| | |
(in thousands, except percentages)
|
| |||||||||||||||||||||||||||||||||||||||||||||
North America(1)
|
| | | $ | 778,044 | | | | | | 82.2% | | | | | $ | 797,344 | | | | | | 74.5% | | | | | $ | 2,021,574 | | | | | | 79.7% | | | | | $ | 2,044,986 | | | | | | 71.1% | | |
Europe(2) | | | | | 127,717 | | | | | | 13.5 | | | | | | 236,461 | | | | | | 22.1 | | | | | | 389,724 | | | | | | 15.4 | | | | | | 692,191 | | | | | | 24.1 | | |
Rest of World
|
| | | | 41,136 | | | | | | 4.3 | | | | | | 36,812 | | | | | | 3.4 | | | | | | 123,422 | | | | | | 4.9 | | | | | | 139,034 | | | | | | 4.8 | | |
Total net sales
|
| | | $ | 946,897 | | | | | | 100.0% | | | | | $ | 1,070,617 | | | | | | 100.0% | | | | | $ | 2,534,720 | | | | | | 100.0% | | | | | $ | 2,876,211 | | | | | | 100.0% | | |
| | |
Three Months Ended September 30,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| ||||||||||||||||||||||||
| | |
(in thousands, except percentages)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Shark
|
| | | $ | 525,204 | | | | | | 55.5% | | | | | $ | 519,828 | | | | | | 48.6% | | | | | $ | 1,410,731 | | | | | | 55.7% | | | | | $ | 1,464,466 | | | | | | 50.9% | | |
Ninja
|
| | | | 421,693 | | | | | | 44.5 | | | | | | 550,789 | | | | | | 51.4 | | | | | | 1,123,989 | | | | | | 44.3 | | | | | | 1,411,745 | | | | | | 49.1 | | |
Total net sales
|
| | | $ | 946,897 | | | | | | 100.0% | | | | | $ | 1,070,617 | | | | | | 100.0% | | | | | $ | 2,534,720 | | | | | | 100.0% | | | | | $ | 2,876,211 | | | | | | 100.0% | | |
| | |
Three Months Ended September 30,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| |
Amount
|
| |
Percentage of
Net Sales |
| ||||||||||||||||||||||||
| | |
(in thousands, except percentages)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Cleaning Appliances
|
| | | $ | 503,388 | | | | | | 53.2% | | | | | $ | 449,319 | | | | | | 42.0% | | | | | $ | 1,351,576 | | | | | | 53.3% | | | | | $ | 1,277,986 | | | | | | 44.4% | | |
Cooking and Beverage Appliances
|
| | | | 260,438 | | | | | | 27.5 | | | | | | 339,328 | | | | | | 31.7 | | | | | | 696,568 | | | | | | 27.5 | | | | | | 939,060 | | | | | | 32.7 | | |
Food Preparation Appliances
|
| | | | 161,256 | | | | | | 17.0 | | | | | | 211,461 | | | | | | 19.7 | | | | | | 427,422 | | | | | | 16.9 | | | | | | 472,685 | | | | | | 16.4 | | |
Other
|
| | | | 21,815 | | | | | | 2.3 | | | | | | 70,509 | | | | | | 6.6 | | | | | | 59,154 | | | | | | 2.3 | | | | | | 186,480 | | | | | | 6.5 | | |
Total net sales
|
| | | $ | 946,897 | | | | | | 100.0% | | | | | $ | 1,070,617 | | | | | | 100.0% | | | | | $ | 2,534,720 | | | | | | 100.0% | | | | | $ | 2,876,211 | | | | | | 100.0% | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Beginning balance
|
| | | $ | 14,466 | | | | | $ | 21,173 | | | | | $ | 17,828 | | | | | $ | 20,958 | | |
Accruals for warranties issued
|
| | | | 4,643 | | | | | | 17,738 | | | | | | 12,700 | | | | | | 31,488 | | |
Changes in liability for pre-existing warranties
|
| | | | — | | | | | | (964) | | | | | | 1,486 | | | | | | (964) | | |
Settlements made
|
| | | | (6,155) | | | | | | (13,621) | | | | | | (19,060) | | | | | | (27,156) | | |
Ending balance
|
| | | $ | 12,954 | | | | | $ | 24,326 | | | | | $ | 12,954 | | | | | $ | 24,326 | | |
| | |
As of
|
| |||||||||
| | |
December 31,
2022 |
| |
September 30,
2023 |
| ||||||
| | |
(in thousands)
|
| |||||||||
United States
|
| | | $ | 74,054 | | | | | $ | 60,941 | | |
China
|
| | | | 55,170 | | | | | | 78,213 | | |
Rest of World
|
| | | | 8,117 | | | | | | 10,096 | | |
Total property and equipment, net
|
| | | $ | 137,341 | | | | | $ | 149,250 | | |
| | |
As of
|
| |||||||||
| | |
December 31,
2022 |
| |
September 30,
2023 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Molds and tooling
|
| | | $ | 209,984 | | | | | $ | 261,403 | | |
Computer and software
|
| | | | 88,483 | | | | | | 96,317 | | |
Displays
|
| | | | 90,722 | | | | | | 84,719 | | |
Equipment
|
| | | | 14,653 | | | | | | 17,316 | | |
Furniture and fixtures
|
| | | | 11,418 | | | | | | 10,222 | | |
Leasehold improvements
|
| | | | 31,315 | | | | | | 34,977 | | |
Total property and equipment
|
| | | | 446,575 | | | | | | 504,954 | | |
Less: accumulated depreciation and amortization
|
| | | | (322,022) | | | | | | (369,476) | | |
Construction in progress
|
| | | | 12,788 | | | | | | 13,772 | | |
Property and equipment, net
|
| | | $ | 137,341 | | | | | $ | 149,250 | | |
| | |
As of
|
| |||||||||
| | |
December 31,
2022 |
| |
September 30,
2023 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Prepaid expenses
|
| | | $ | 86,274 | | | | | $ | 41,525 | | |
Related party receivables
|
| | | | 20,069 | | | | | | — | | |
Derivative assets
|
| | | | 22,676 | | | | | | 8,270 | | |
DPP receivable
|
| | | | 22,294 | | | | | | — | | |
Other receivables
|
| | | | 30,518 | | | | | | 36,676 | | |
Prepaid expenses and other current assets
|
| | | $ | 181,831 | | | | | $ | 86,471 | | |
| | |
As of
|
| |||||||||
| | |
December 31,
2022 |
| |
September 30,
2023 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Accrued customer incentives
|
| | | $ | 230,195 | | | | | $ | 146,031 | | |
Accrued expenses
|
| | | | 99,962 | | | | | | 118,754 | | |
Accrued compensation and benefits
|
| | | | 71,762 | | | | | | 61,487 | | |
Accrued returns
|
| | | | 45,529 | | | | | | 43,394 | | |
Accrued tax payables
|
| | | | 43,243 | | | | | | 14,696 | | |
Accrued warranty
|
| | | | 20,958 | | | | | | 24,326 | | |
Operating lease liabilities, current
|
| | | | 13,038 | | | | | | 9,449 | | |
Derivative liabilities
|
| | | | — | | | | | | 7,905 | | |
Other
|
| | | | 27,336 | | | | | | 25,358 | | |
Accrued expenses and other current liabilities
|
| | | $ | 552,023 | | | | | $ | 451,400 | | |
| | |
December 31, 2022
|
| |||||||||||||||||||||
| | |
Fair Value
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivatives not designated as hedging instruments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward contracts included in prepaid expenses and other current assets (Note 6)
|
| | | $ | 22,676 | | | | | $ | — | | | | | $ | 22,676 | | | | | $ | — | | |
DPP receivable included in prepaid expenses and other current assets (Note 2) | | | | | 22,294 | | | | | | — | | | | | | — | | | | | | 22,294 | | |
Total financial assets
|
| | | $ | 44,970 | | | | | $ | — | | | | | $ | 22,676 | | | | | $ | 22,294 | | |
| | |
September 30, 2023
|
| |||||||||||||||||||||
| | |
Fair Value
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivatives designated as hedging instruments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward contracts included in prepaid expenses and other current assets (Note 6)
|
| | | $ | 8,270 | | | | | $ | — | | | | | $ | 8,270 | | | | | $ | — | | |
Total financial assets
|
| | | $ | 8,270 | | | | | $ | — | | | | | $ | 8,270 | | | | | $ | — | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivatives not designated as hedging instruments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward contracts included in accrued expenses and other current liabilities (Note 6)
|
| | | $ | 7,905 | | | | | $ | — | | | | | $ | 7,905 | | | | | $ | — | | |
Total financial liabilities
|
| | | $ | 7,905 | | | | | $ | — | | | | | $ | 7,905 | | | | | $ | — | | |
| | |
As of
|
| |||||||||
| | |
December 31,
2022 |
| |
September 30,
2023 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Derivatives designated as hedging instruments: | | | | | | | | | | | | | |
Forward contracts
|
| | | $ | — | | | | | $ | 330,900 | | |
Derivatives not designated as hedging instruments: | | | | | | | | | | | | | |
Forward contracts
|
| | | | 956,191 | | | | | | 218,620 | | |
Total derivative instruments
|
| | | $ | 956,191 | | | | | $ | 549,520 | | |
| | |
Three Months
Ended |
| |
Nine Months
Ended |
| ||||||
| | |
September 30, 2023
|
| |||||||||
| | |
(in thousands)
|
| |||||||||
Beginning balance
|
| | | $ | (8,941) | | | | | $ | — | | |
Amount of net gains recorded in other comprehensive income
|
| | | | 15,698 | | | | | | 5,607 | | |
Amount of net gains reclassified from other comprehensive income to earnings | | | | | (1,212) | | | | | | (62) | | |
Ending balance
|
| | | $ | 5,545 | | | | | $ | 5,545 | | |
| | |
Gross Carrying
Value |
| |
Accumulated
Amortization |
| |
Net Carrying
Value |
| |
Weighted-
Average Remaining Useful Life |
| |||||||||
| | |
(in thousands)
|
| | | | | | | |
(in years)
|
| |||||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | | | | | | | | | | |
Customer relationships
|
| | | $ | 143,083 | | | | | $ | (83,465) | | | | | $ | 59,618 | | | |
3.8
|
|
Patents
|
| | | | 52,695 | | | | | | (19,874) | | | | | | 32,821 | | | |
6.2
|
|
Developed technology
|
| | | | 21,381 | | | | | | (5,151) | | | | | | 16,230 | | | |
9.2
|
|
Total intangible assets subject to amortization
|
| | | $ | 217,159 | | | | | $ | (108,490) | | | | | $ | 108,669 | | | | | |
Intangible assets not subject to amortization: | | | | | | | | | | | | | | | | | | | | | | |
Trade name and trademarks
|
| | | $ | 384,040 | | | | | $ | — | | | | | $ | 384,040 | | | |
Indefinite
|
|
Total intangible assets, net
|
| | | $ | 601,199 | | | | | $ | (108,490) | | | | | $ | 492,709 | | | | | |
| | |
Gross Carrying
Value |
| |
Accumulated
Amortization |
| |
Net Carrying
Value |
| |
Weighted-
Average Remaining Useful Life |
| |||||||||
| | |
(in thousands)
|
| |
(in years)
|
| |||||||||||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | | | | | | | | | | |
Customer relationships
|
| | | $ | 143,083 | | | | | $ | (95,389) | | | | | $ | 47,694 | | | |
3.0
|
|
Patents
|
| | | | 55,902 | | | | | | (23,541) | | | | | | 32,361 | | | |
5.8
|
|
Developed technology
|
| | | | 22,094 | | | | | | (5,035) | | | | | | 17,059 | | | |
8.4
|
|
Total intangible assets subject to amortization
|
| | | $ | 221,079 | | | | | $ | (123,965) | | | | | $ | 97,114 | | | | | |
Intangible assets not subject to amortization: | | | | | | | | | | | | | | | | | | | | | | |
Trade name and trademarks
|
| | | $ | 384,640 | | | | | $ | — | | | | | $ | 384,640 | | | |
Indefinite
|
|
Total intangible assets, net
|
| | | $ | 605,719 | | | | | $ | (123,965) | | | | | $ | 481,754 | | | | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Research and development
|
| | | $ | 1,424 | | | | | $ | 1,632 | | | | | $ | 4,449 | | | | | $ | 4,918 | | |
Sales and marketing
|
| | | | 3,975 | | | | | | 3,975 | | | | | | 11,924 | | | | | | 11,924 | | |
Total amortization expenses
|
| | | $ | 5,399 | | | | | $ | 5,607 | | | | | $ | 16,373 | | | | | $ | 16,842 | | |
| | |
Amount
|
| |||
| | |
(in thousands)
|
| |||
Years ending December 31, | | | | | | | |
Remainder of 2023
|
| | | $ | 6,205 | | |
2024
|
| | | | 23,474 | | |
2025
|
| | | | 23,474 | | |
2026
|
| | | | 19,499 | | |
2027
|
| | | | 6,653 | | |
Thereafter
|
| | | | 17,809 | | |
Total
|
| | | $ | 97,114 | | |
| | |
Carrying Amount
|
| |||
| | |
(in thousands)
|
| |||
Balance as of December 31, 2022
|
| | | $ | 840,148 | | |
Goodwill related to sale of SharkNinja Co, Ltd. (See Note 4)
|
| | | | (5,739) | | |
Effect of foreign currency translation
|
| | | | (437) | | |
Balance as of September 30, 2023
|
| | | $ | 833,972 | | |
| | |
As of
|
| |||||||||
| | |
December 31,
2022 |
| |
September 30,
2023 |
| ||||||
| | |
(in thousands)
|
| |||||||||
2020 Term Loans with principal payments due on March 20 each year;
interest at LIBOR plus 1.8%; final balance due on maturity date of March 19, 2025 |
| | | $ | 437,500 | | | | | $ | — | | |
2023 Term Loans with principal payments due quarterly; interest at SOFR plus 1.875%; final balance due on maturity date of July 20, 2028 | | | | | — | | | | | | 810,000 | | |
Less: deferred financing costs
|
| | | | (1,359) | | | | | | (5,430) | | |
Less: current portion
|
| | | | (86,972) | | | | | | (19,127) | | |
Long-term debt, net of current portion
|
| | | $ | 349,169 | | | | | $ | 785,443 | | |
| | |
Amount
|
| |||
| | |
(in thousands)
|
| |||
Years ending December 31, | | | | | | | |
Remainder of 2023
|
| | | $ | 5,062 | | |
2024
|
| | | | 25,313 | | |
2025
|
| | | | 40,500 | | |
2026
|
| | | | 40,500 | | |
2027
|
| | | | 40,500 | | |
2028
|
| | | | 658,125 | | |
Total future principal payments
|
| | | $ | 810,000 | | |
| | |
Number of
Shares |
| |
Weighted
Average Grant Date Fair Value per share |
| ||||||
Unvested as of December 31, 2022
|
| | | | 10,254,734 | | | | | $ | 0.97 | | |
Vested
|
| | | | (9,177,987) | | | | | | 0.97 | | |
Cancelled/Forfeited
|
| | | | (1,076,747) | | | | | | 0.97 | | |
Unvested as of September 30, 2023
|
| | | | — | | | | | $ | — | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Research and development
|
| | | $ | 263 | | | | | $ | 3,160 | | | | | $ | 1,669 | | | | | $ | 4,229 | | |
Sales and marketing
|
| | | | 115 | | | | | | 1,920 | | | | | | 451 | | | | | | 2,432 | | |
General and administrative
|
| | | | 591 | | | | | | 16,257 | | | | | | 3,295 | | | | | | 17,841 | | |
Total share-based compensation
|
| | | $ | 969 | | | | | $ | 21,337 | | | | | $ | 5,415 | | | | | $ | 24,502 | | |
|
Stock price at valuation date
|
| |
$—
|
| |||
|
Expected volatility
|
| |
44.99% to 47.62%
|
| |||
|
Risk-free interest rate
|
| |
4.30% to 5.07%
|
| |||
|
Expected dividends
|
| | | | 0% | | |
|
Expected term (in years)
|
| |
1.48 to 4.01
|
|
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 80,309 | | | | | $ | 18,722 | | | | | $ | 185,715 | | | | | $ | 117,754 | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted-average shares used in computing net
income per share, basic |
| | | | 138,982,872 | | | | | | 139,073,181 | | | | | | 138,982,872 | | | | | | 139,059,206 | | |
Dilutive effect of RSUs
|
| | | | — | | | | | | 357,624 | | | | | | — | | | | | | 120,518 | | |
Weighted-average shares used in computing net
income per share, diluted |
| | | | 138,982,872 | | | | | | 139,430,805 | | | | | | 138,982,872 | | | | | | 139,179,724 | | |
Net income per share, basic
|
| | | $ | 0.58 | | | | | $ | 0.13 | | | | | $ | 1.34 | | | | | $ | 0.85 | | |
Net income per share, diluted
|
| | | $ | 0.58 | | | | | $ | 0.13 | | | | | $ | 1.34 | | | | | $ | 0.85 | | |
| | |
As of
|
| |||||||||
| | |
December 31,
2022 |
| |
September 30,
2022 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Related party assets | | | | | | | | | | | | | |
Balances and transactions with entities controlled by JS Global
|
| | | | | | | | | | | | |
Accounts receivable, net
|
| | | $ | 1,033 | | | | | $ | 6,081 | | |
Prepaid expenses and other current assets
|
| | | | 2,886 | | | | | | — | | |
Related party liabilities | | | | | | | | | | | | | |
Balances and transactions with entities controlled by JS Global
|
| | | | | | | | | | | | |
Accounts payable
|
| | | $ | 231,805 | | | | | $ | 112,131 | | |
Accrued expenses and other current liabilities
|
| | | | 861 | | | | | | — | | |
Balances with JS Global
|
| | | | | | | | | | | | |
Accrued expenses and other current liabilities
|
| | | $ | 7,538 | | | | | $ | — | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2022
|
| |
2023
|
| |
2022
|
| |
2023
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Related party revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Balances and transactions with joint venture | | | | | | | | | | | | | | | | | | | | | | | | | |
Sale of goods
|
| | | $ | — | | | | | $ | — | | | | | $ | 766 | | | | | $ | — | | |
Balances and transactions with entities controlled by JS Global | | | | | | | | | | | | | | | | | | | | | | | | | |
Sale of goods
|
| | | $ | 223 | | | | | $ | 13 | | | | | $ | 223 | | | | | $ | 1,264 | | |
Sale of services
|
| | | | — | | | | | | 1,275 | | | | | | — | | | | | | 1,275 | | |
Related party expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Balances and transactions with entities controlled by JS Global | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchase of goods
|
| | | $ | 361,909 | | | | | $ | 261,764 | | | | | $ | 1,045,553 | | | | | $ | 971,015 | | |
Purchase of services
|
| | | | 712 | | | | | | 808 | | | | | | 2,513 | | | | | | 2,573 | | |
| Goldman Sachs & Co. LLC | | |
J.P. Morgan
|
|
| Jefferies | | |
Morgan Stanley
|
|
|
(in alphabetical order)
|
| |||
| William Blair | | |
Guggenheim Securities
|
|
1 Year Sharkninja Chart |
1 Month Sharkninja Chart |
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