Sharkninja, Inc. · NYSE:SN
Sharkninja — Investor Presentation (March 2024)
41 slides from Sharkninja's investor presentation, March 2024
Slide 1: Investor Presentation March 2024
INVESTOR PRESENTATION MARCH 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and its future business, financial condition, results of operations
Slide 3: Introduction to SharkNinja
Introduction to SharkNinja
Slide 4: Who We Are
Who We Are $4.3bn 20% The people who built a consumer problem solving engine Net Sales1,2 Net Sales CAGR (March 2008-2023) We solve consumer problems that others either do not see or are unable to solve 32 31 We create five-star rated innovative lifestyle solutions Markets2 Sub-categories2 for consu
Slide 5: Two Scaled, Diverse and Growing Brands
Two Scaled, Diverse and Growing Brands 1 $4.3Bn 13 Total Sub-Categories5 18 Total Sub-Categories5 6 new product sub-categories 10 new product sub-categories entered in the last 3 years3 $250MM entered in the last 3 years4 2 2008 2023 $2.2Bn Net Sales $2.1Bn Net Sales Net Sales (2023) (2023) 1. Net S
Slide 6: Increasingly Diversified as We Scale: Category Mix
Increasingly Diversified as We Scale: Category Mix Net Sales by Category1 ’20-’23 CAGR $4.3Bn 15.6% 8.0% / $339MM 268.8% 15.4% $654MM 20.1% $2.7Bn 0.2% 13.7% $7MM 33.9% $377MM $1.4Bn 28.2% 24.9% $684MM 42.8% 61.2% $1.8Bn 2.6% $1.7Bn 2020 2023 Cleaning Cooking & Food Other Beverage Preparation 1. Net
Slide 7: Increasingly Diversified as We Scale: Global Mix
Increasingly Diversified as We Scale: Global Mix Diversified Global Presence¹ ’20-’23 CAGR $4.3Bn 15.6% 5.5% / $233MM 123.8% 3.8% / $163MM 12.7% 19.7% $840MM 27.2% $2.7Bn 0.8% 4.1% / $114MM $21MM 14.8% / $407MM 71.0% 80.3% $3.0Bn 10.9% $2.2Bn 2020 2023 North America United Kingdom Other Europe Rest
Slide 8: Who We Serve
Who We Serve A discerning and educated global consumer They’re the people who read the reviews and scour the ratings, delighted by new technology. They’re proud of their homes. They know value when they see it because they’ve done the research. They only trust brands that have proven their worth. Pe
Slide 9: What We Deliver
What We Deliver SharkNinja strives to deliver all four of these critical consumer value points in every innovative product we bring to market SPEED PERFORMANCE QUALITY VALUE First-to-market High-performing 5-star Accessible disruptive products that exceed quality product prices for innovations expec
Slide 10: We Aim to Delight Our Consumers Through
We Aim to Delight Our Consumers Through 5-star Rated Products Always-on 24/7 Innovation Cycle Consumer Insights In-person Testing 800+ Cross-functional Engineering & Design Associates1 Leveraging Reviews Global Insights Solving Pain Points Disruptive Innovations Compelling Value Improving Lifestyle
Slide 11: How We Do It
How We Do It Our competitive moat deepens over time 1 G through a relentless focus on these four key tive Su 2 p ion p lo ly C areas ba ha at Inn isru p l, A in ov D gile Our success is directly connected to our unique mindset, culture, and the way we think about the consumer. At each Unique mindset
Slide 12: Disruptive Innovation
1 Disruptive Innovation Consumer-Centric Innovation Driven by a Global Engineering Team • 800+ cross-functional engineers and designers1 • Global product design team in U.S., U.K. and China • 24/7 global innovation cycle • 4,500+ issued patents and pending patent applications in force globally1 • Dy
Slide 13: Disruptive Innovation
1 Disruptive Innovation Innovative Products Across a Growing Number of Categories Shark SpeedStyle Ninja Blast Ninja Thirsti Shark Extractor Ninja FrostVault Shark FlexBreeze Ultra-efficient high-speed Powerful battery technology Innovative carbonation system CarpetXpert Technology deep Thermally-ef
Slide 14: Global, Agile Supply Chain
2 Global, Agile Supply Chain Our highly-efficient, scaled, and agile global supply chain enables us to deliver high-quality products with market-leading performance at compelling value • Diversified supplier network across Southeast Asia • Dual-sourcing for key products to ensure a consistent supply
Slide 15: Always-on 360 Degree Marketing
3 Always-on 360 Degree Marketing Our storytelling is based on real consumer insights and genuine experiences, and bolstered by our data-driven approach to marketing, we are able to reach the right audience and drive demand Long-Form Storytelling Short-Form Storytelling • Infomercials every year • 15
Slide 16: Omni-channel Distribution
4 Omni-channel Distribution Creating & fulfilling demand Our global marketing organization deploys strategies that capture the hearts and minds of consumers worldwide. We do not wait for demand to happen, we create it. We never practice retailer exclusivity. We focus on being everywhere our consumer
Slide 17: Our Three-Pillar Growth Strategy
Our Three-Pillar Growth Strategy Driving Sustainable Long-Term Global Growth Our highly diversified business is powered by trusted brands, which we believe enables us to drive sustainable long-term global growth. We continuously broaden our geographic footprint and scale into new product categories
Slide 18: Growing Share in Our Existing Categories
Growing Share in Our Existing Categories Our proven track record of bringing disruptive products to market and developing one consumer solution after another has allowed us to enter multiple product categories, add more retailers and enlarge the offer at current ones, driving significant growth and
Slide 19: Entering Adjacent and New Categories
Entering Adjacent and New Categories We believe we are uniquely equipped to disrupt massive and fragmented markets through our proprietary consumer insights and innovative product development approach. Our advanced engineering capabilities enable us to solve consumer problems. And we leverage soluti
Slide 20: Exciting Innovation Into New Sub-Categories in 2023
Exciting Innovation Into New Sub-Categories in 2023 Our rapid, consumer-centered innovation engine and our agile supply chain enables us to launch innovative new products across different categories for ever- evolving customer needs Carpet Extraction Outdoor Oven In-home Beverage • Launched in 2023
Slide 21: New Sub-categories Announced for 2024 Launch
New Sub-categories Announced for 2024 Launch We recently announced our entry into two billion-dollar sub-categories1 for the outdoors Coolers Indoor-Outdoor Fans • Launching in 2024 • Launching in 2024 • New, patented technology with the • Shark FlexBreeze is built for both indoor and outdoor use fi
Slide 22: Expanding Within and Around the Home
Expanding Within and Around the Home To more homes, more rooms, and more growth for us Shark Categories1 Ninja Categories1 • Mops • Blenders • Electric kettles • Handheld Vacuums • Food Processors • Waffle Makers • Upright Vacuums • Coffee Makers • Ice Cream Makers • Corded Stick Vacuums • Air Fryer
Slide 23: Entering New Geographies
Entering New Geographies Our products are distributed in 32 markets and our international expansion remains a key area of strategic focus With the success of our direct model in the United Kingdom, we have been able to consistently leverage this model to successfully enter and meaningfully grow in n
Slide 24: Our Unique Mindset
Our Unique Mindset Rarely Progress over Details make the Winning is Communicating for satisfied perfection difference a team sport impact 24
Slide 25: We Are Just Getting Started
We Are Just Getting Started Net Sales • Large and Expanding TAM $4.3Bn 1 • Deep and Widening Competitive Moat • Increasingly Diversified Product Offering • Sustainable Three-Pillar Growth Strategy $1.5Bn GROW SHARE IN ENTER ADJACENT INTERNATIONAL EXISTING AND NEW EXPANSION $250MM CATEGORIES CATEGORI
Slide 26: Financial Overview
2 Financial Overview Financial Overview
Slide 27: Our Compelling Financial Profile
Our Compelling Financial Profile Robust Organic Growth Strong Margin Profile Efficient Capital Deployment Strong Free Cash Flow Profile Significant Capital Allocation Flexibility 27
Slide 28: Drivers of Strong Growth
Drivers of Strong Growth Top-Line Growth Drivers Gross Margin Drivers Continue to rapidly innovate and take share within existing categories Global, Agile and highly scalable manufacturing and supply chain Continue to expand across sub-categories and adjacencies; more use occasions and more products
Slide 29: Full Year 2023 Financial Results
Full Year 2023 Financial Results ($MM) Adjusted Net Sales1 Net Sales by Product Category Net Sales by Region $4,176 $339 $163 $3,625 $3,620 $55 $117 $654 $162 $165 $548 $1,073 $590 $611 $629 $1,174 $1,079 $1,442 $2,954 $2,923 $3,018 $1,950 $1,932 $1,819 2021 2022 2023 2021 2022 2023 2021 2022 2023 Y
Slide 30: Full Year 2023 Financial Results
Full Year 2023 Financial Results ($MM) Adjusted Gross Profit1 Adjusted EBITDA2 Margin (%) Margin (%) $1,959 $1,476 $1,448 $720 46.9% 40.7% 40.0% $603 $520 16.6% 17.2% 14.4% 2021 2022 2023 2021 2022 2023 Note: Adjusted Gross Profit margin and Adjusted EBITDA margin expressed as a % of Adjusted Net Sa
Slide 31: Q4 Financial Results
Q4 Financial Results ($MM) Adjusted Net Sales1 Adjusted Gross Profit2 Adjusted EBITDA3 Change in bps Margin (%) Change in bps Margin (%) $1,377 $1,151 $653 $434 +970 47.4% $219 37.7% $128 +470 15.9% 11.2% Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Note: Adjusted Gross Profit margin and Adjusted
Slide 32: Fiscal Year 2024 Outlook as of February 15, 2024
Fiscal Year 2024 Outlook as of February 15, 2024 Metric FY 2024 Outlook Net Sales +5% to +7% Adjusted Net Sales1 +7% to +9% $3.45 to $3.61 Adjusted Net Income Per Share2 (+7% to +12%) $800MM to $830MM Adjusted EBITDA3 (+11% to +15%) GAAP effective tax rate ~24% to ~25% Diluted weighted average share
Slide 33: Capital Structure Overview
Capital Structure Overview ($MM) Capitalization December 31, 2023 Cash and Cash Equivalents $154 Total Debt1 $805 Net Debt $651 LTM Adjusted EBITDA (Q4 2023)2 $720 LTM Net Leverage (Q4 2023)3 0.9x 1. Consists of outstanding borrowings of $804.9 million under the term loan facility. Amount excludes d
Slide 34: Our Partnership with JS Global Following the Separation
Our Partnership with JS Global Following the Separation Ongoing Partnership Highlights: Supply Chain Services Product Development Brand License Agreement Agreement Non-exclusive rights to JS Global to Sourcing and procurement obtain, produce and source R&D Services Supplier management and Exclusive
Slide 35: Every home in our global markets
Every home in our global markets Every day more consumers around the world welcome 5-star SharkNinja products into their homes. Our mission is to positively impact people’s lives every day in every home in our global markets 35
Slide 36: Appendix
Appendix
Slide 37: Historical P&L Summary
Historical P&L Summary ($MM) Year Ended December 31, CAGR Three Months Ended December 31, YoY Growth 2021 2022 2023 ’21–’23 2022 2023 Q4 ’22 – Q4 ’23 Adjusted Net Sales1 $3,625 $3,620 $4,176 7.3% $1,151 $1,378 19.7% Adjusted Gross Profit2 $1,476 $1,448 $1,959 15.2% $434 $653 50.5% % Adjusted Gross M
Slide 38: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Sales and Adjusted Gross Profit Reconciliation | ($MM) Year Ended December 31, Three Months Ended December 31, 2021 2022 2023 2022 2023 Net Sales $3,727 $3,717 $4,254 $1,183 $1,378 Divested Subsidiary Adjustment1 $(102) $(97) $(78) $(32) - Adjusted Net Sales
Slide 39: Non-GAAP Financial Measures (Cont.)
Non-GAAP Financial Measures (Cont.) Adjusted Operating Income Reconciliation | ($MM) Year Ended December 31, Three Months Ended December 31, 2021 2022 2023 2022 2023 Operating income $438 $321 $374 $54 $101 Share-Based Compensation1 $14 $6 $47 - $22 Litigation Costs2 $11 $5 $9 - $4 Amortization of A
Slide 40: Non-GAAP Financial Measures (Cont.)
Non-GAAP Financial Measures (Cont.) Adjusted Net Income Reconciliation | ($MM, except share and per share amounts) Year Ended December 31, Three Months Ended December 31, 2021 2022 2023 2022 2023 Net Income $331 $232 $167 $47 $49 Share-Based Compensation1 $14 $6 $47 - $22 Litigation Costs2 $11 $5 $9
Slide 41: Non-GAAP Financial Measures (Cont.)
Non-GAAP Financial Measures (Cont.) Adjusted EBITDA Reconciliation | ($MM) Year Ended December 31, Three Months Ended December 31, 2021 2022 2023 2022 2023 Net Income $331 $232 $167 $47 $49 Interest Expense, Net $16 $27 $45 $8 $16 Provision for Income Taxes $83 $70 $126 $15 $41 Depreciation and Amor