Topgolf Callaway Brands Corp (NYSE:MODG) Q3 2024 Earnings Conference Call November 12, 2024 5:00 PM ET

Company Participants

Katina Metzidakis - Vice President of Investor Relations and Corporate Communications
Chip Brewer - President and Chief Executive Officer
Brian Lynch - Chief Financial Officer and Chief Legal Officer

Conference Call Participants

Matthew Boss - J.P. Morgan
Michael Swartz - Truist Securities
Joe Altobello - Raymond James
Eric Wold - B. Riley Securities
Megan Clark - Morgan Stanley
Casey Alexander - Compass Point Research & Trading

Operator

Good day, and welcome to the Topgolf Callaway Brands' Third Quarter 2024 Conference Call. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Ms. Katina Metzidakis. Please go ahead, ma'am.

Katina Metzidakis

Thank you, Operator, and good afternoon, everyone. Welcome to Topgolf Callaway Brands' third quarter earnings conference call. I'm Katina Metzidakis, the company's Vice President of Investor Relations and Corporate Communications. Joining me as speakers on today's call are Chip Brewer, our President and Chief Executive Officer; and Brian Lynch, our Chief Financial Officer and Chief Legal Officer.

Earlier today, the company issued a press release announcing its third quarter financial results. We have also published an updated presentation. Our earnings presentation as well as the earnings press release are both available on the company's Investor Relations website under the Financial Results tab.

Aside from revenue, the financial numbers reported and discussed on today's call are all non-GAAP measures. We identify these non-GAAP measures in the presentation and reconcile the measures to the corresponding GAAP measures in accordance with Regulation G.

Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statements contained in the presentation and the press release for a more complete description.

And with that, I would now like to turn the call over to Chip Brewer.

Chip Brewer

Thank you, Katina, and good afternoon, everyone. Thank you for joining our call today. I'm pleased to report Q3 results which came in ahead of our guidance in both our legacy and Topgolf businesses.

Focusing first on revenue, Topgolf's same venue sales came in roughly consistent with our expectations. And in our legacy business, we benefited from product shipment timing moving into the quarter from Q4. Moving to EBITDA, the quarter's outperformance was driven by both venue operating efficiencies and cost management at Topgolf, as well as the shipment timing in our legacy business. We also had slightly favorable FX for the quarter relative to our last guide. But this subsequently shifted against us again in early Q4, and remains a headwind on a full-year year-over-year basis.