$ELY ($3.32B Market Cap) Callaway continues to crush it
After listening to the earnings call, I feel even more confident about the future of this company. Here are some of the highlights for company as a whole:

-EPS of $.36 beating expectations of $.24
-Rev of $1.04B beating expectations of $1.02B
-Rev grew 31% compared to Q1 of last year. $1.02B vs $795M last year
-EBITDA grew 31% as well with $170M vs $130M last year
-Raised rev guidance to $3.935-$3.970B for FY22
-Raised EBITDA guidance to $535-$555M for FY22
-Per investor day presentation, expecting 25% CAGR in EBITDA through '25 to $800M+

All three business segments continue to thrive with each posting growth compared to Q1 of 2021. Highlights of individual segments below:

Top Golf:
-2.3% growth of same venue sales over '19 for Q1. Softness first two months from Omicron, but 10% bump in March led to this number. Expecting high single digits SVS for FY22 with corporate events picking back up with COVID issues retreating
-Launching 11 new locations this year
-Top Golf responsible $322M in rev for Q1
-Installed 1,159 new Top Tracer bays and on track for 8k this year. Each bay responsible for about $2k annually. Current penetration of TAM <3%

Hard Goods Business:
-Responsible for $468M in revenue
-#1 hard goods brand in US
-Delivered US record golf ball market share of 22%
-Expect segment to be up 10% vs FY21
-Chip, the CEO, emphasized several times on call not seeing any slow up on demand and are actually trying to keep up with demand

Soft Goods (TravisMathew, OGIO, Jack Wolfskin):
-$250M in Q1, a 45% increase vs Q1 2021
-TravisMathew had 50% growth in same store vs Q1 2021
-TravisMathew just released women's line and said women are currently responsible for 25% of purchases for men's store so optimistic on that piece
-Anticipate TM doing $300M this year and $50M in EBITDA
-Jack Wolfskin gaining traction after lots of macro head winds being a European brand
-Expect soft goods to do $1B this year

Miscellaneous Items:
-I continue to be bullish on Golf. Netflix is currently recording a Drive To Survive type Documentary for golf that has most of the top golfers participating. If you aren't aware of the impact DTS has had on F1, here is an article with some specific numbers. https://www.bosshunting.com.au/sport/f1/how-netflix-changed-formula-1/
-One of the analyst from Compass Point said (and I am paraphrasing here) I can't remember a time where every product category and every geography was up YoY. He said the quarter was absolutely remarkable and while they have performed so exceptionally fundamentally, the stock has performed equally as poorly with the overall market down. Asked if they would buy back more shares after buying $50M back last two Qs. Chip said they can't comment on future allocation of funds but I would not be shocked if they ramped this back up again
-I still believe it has underperformed because people view Callaway golf as a club/ball brand and not the "Modern Golf" company, as Chip put it, that it has become

Any dissenting opinions or general questions welcome.
Steve Matt's avatar
Great recap and breakdown of the quarter! I enjoyed the read. I’ve never looked into Callaway before.
Austin Weiffenbach's avatar
@interrobangbros Thanks Steve! Definitely check it out; lots of exciting aspects of this business IMO.
Dissecting the Markets's avatar
A big reason why I would ever consider investing in $ELY for the long run is because of Top Golf. Other than that, I don't have much knowledge on the business nature of selling golf clubs.
Austin Weiffenbach's avatar
@dissectmarkets Top Golf and TM are the two most exciting things about the brand IMO. Top Golf is a repeatable business model and will play a huge roll in their growth in coming years. I have been going to the one in Tampa for 6 years and it hasn't slowed a bit from when it first opened. Being able to invest in it makes me super excited and Hard Goods performing well is just a bonus