Financial Performance - Net sales for the year ended December 31, 2023, increased by $536.3 million, or 14.4%, to $4,253.7 million compared to $3,717.4 million in 2022[384] - Gross profit for 2023 was $1,907.9 million, representing a 35.3% increase from $1,410.2 million in 2022[390] - Net income for 2023 was $167.1 million, down from $232.4 million in 2022[380] - Adjusted Net Sales for 2023 were $4,176.2 million, compared to $3,619.9 million in 2022, reflecting a significant increase[415] - Adjusted Net Income for 2023 was $449.3 million, up 36% from $330.4 million in 2022[423] - Adjusted EBITDA for 2023 reached $719.7 million, a 38% increase compared to $519.6 million in 2022[428] - Adjusted Gross Profit for 2023 was $1,958.6 million, with an Adjusted Gross Margin of 46.9%[417] Operating Expenses - Total operating expenses rose to $1,534.3 million in 2023, a 40.9% increase from $1,088.8 million in 2022[394] - Research and development expenses increased by 15.6% to $249.4 million in 2023, accounting for 5.9% of net sales[394] - Sales and marketing expenses surged by 44.3% to $897.6 million in 2023, representing 21.1% of net sales[394] - General and administrative expenses increased by 54.2% to $387.3 million in 2023, making up 9.1% of net sales[394] - The company incurred $82.3 million in transaction-related costs in 2023, compared to $2.9 million in 2022[420] - Share-based compensation expenses increased significantly to $47.0 million in 2023 from $5.5 million in 2022[423] Interest and Taxation - Interest expense, net, increased to $(44.9) million in 2023 from $(27.0) million in 2022[380] - Provision for income taxes increased by $56.5 million, or 81.2%, for the year ended December 31, 2023, with an effective tax rate of 43.0%[408] - Interest expense, net increased by $17.9 million, or 66.2%, for the year ended December 31, 2023, primarily due to a $25.2 million increase in interest expense on term loans[402] Sales Performance by Category - The Cooking and Beverage Appliances category saw a significant sales increase of 33.7%, reaching $1,441.6 million in 2023[387] Cash Flow and Financing - Cash and cash equivalents as of December 31, 2023, totaled $154.1 million, with an additional $490.2 million available under the 2023 Revolving Facility[431] - The company has $280.6 million in net cash provided by operating activities for the year ended December 31, 2023, an increase from $205.0 million in 2022[439] - Cash used in investing activities for 2023 was $118.1 million, primarily for property and equipment purchases of $122.7 million[445] - Cash used in financing activities for 2023 totaled $234.9 million, including repayment of $442.6 million on the 2020 Term Loans[449] - As of December 31, 2023, the company had $804.9 million in debt outstanding under the 2023 Credit Agreement[437] - The company plans to utilize existing cash and cash equivalents, along with cash generated from operations, to support its core business operations and strategic plans for market expansion[432] - The company may need to seek additional equity or debt financing to fund its activities if current resources are insufficient[432] Intangible Assets - Acquired intangible assets include developed software technology, customer relationships, and trade names, recorded at fair value on acquisition date[462] - Intangible assets are amortized over their estimated useful lives, except for trade names and trademarks which have an indefinite life[462] - The company evaluates intangible assets for impairment indicators based on significant adverse changes in business climate or market conditions[462] - Future cash flow estimates are critical for measuring the recoverability of intangible assets, with potential impairments if estimates change[462] - An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flows expected to be generated[462]

Svetlana Evgrafova SharkNinja, Inc. (NYSE:SN) is a household appliance company that operates through its two brands, Shark and Ninja. The Shark brand encompasses home products (hair care products, vacuums, floor and carpet cleaners, air purifiers, and fans) and the Ninja brand encompasses the company's kitchen, food, and drink products. While these are relatively mature brands with many market-leading products, SharkNinja has a long runway for growth due to its focus on new product development and product i ...

SharkNinja, Inc. (SN) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the sys ...

Financial Data and Key Metrics Changes - Adjusted net sales increased nearly 20% in Q4 2023, with adjusted EBITDA up more than 70% [36] - Full year adjusted net sales grew by more than 15% to nearly $4.2 billion, and adjusted EBITDA increased by nearly 39% to $720 million [38][55] - Adjusted gross margins improved nearly 700 basis points year-over-year to 46.9%, exceeding the long-term goal of 45% [38][90] Business Line Data and Key Metrics Changes - Adjusted net sales in the cooking and beverage category increased 33% to $503 million, driven by strength in outdoor grills and ovens [50] - The cleaning category saw adjusted net sales decrease just under 3% to $542 million, while the beauty and home environment category grew nearly triple to $153 million [67][68] - The food preparation category's adjusted net sales increased 14% to $181 million, driven by strong performance in ice cream makers and compact blenders [51] Market Data and Key Metrics Changes - Adjusted net sales in international markets reached $404 million, up 62%, with the UK growing nearly 38% [66] - North America net sales were up 8% to $973 million, representing 71% of the sales mix [66] - The UK market, as the largest international market, showed significant growth, while newer markets like Germany and France experienced impressive triple-digit growth [41][46] Company Strategy and Development Direction - The company is focused on a three-pillar growth strategy: entering new categories, growing share in existing categories, and international expansion [27][47] - New product launches in outdoor cooking and beauty are seen as critical growth drivers, with significant investments in R&D to support innovation [8][24] - The company aims to expand its outdoor portfolio, leveraging consumer trends towards outdoor activities [60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the retail environment, noting good ordering patterns and clean inventories exiting Q4 [3][26] - The company anticipates a flat overall market in the first half of 2024, with potential growth in the second half [88] - Management emphasized the importance of local consumer insights and adapting strategies for different markets [82][99] Other Important Information - The company has diversified its supply chain outside of China, with nearly two-thirds of U.S. sales volume now produced outside China [74][91] - The company expects adjusted net sales to increase between 7% and 9% in 2024, with adjusted EBITDA projected to grow by 11% to 15% [76] Q&A Session Summary Question: Can you elaborate on the capabilities built with R&D investment? - Management highlighted the growth of the R&D team to over 800 engineers with diverse skill sets, contributing to product innovation [84] Question: What does the guidance entail regarding category thoughts and gross margin? - Management indicated expectations of continued gross margin expansion in the first half of 2024, with specific category growth rates provided [100][101] Question: What insights have been gained from the UK market for expansion in Germany and France? - Management noted the importance of local consumer insights and the success of cross-country retail strategies [82][99] Question: How is the company planning for new distribution entries in the U.S.? - Management discussed the strategy of leveraging existing retailer relationships and expanding into new retail channels for product launches [110] Question: What are the expectations for growth by quarter in 2024? - Management indicated a strong start to Q1 2024, with expectations of shaping growth throughout the year based on prior performance [114][116]

SharkNinja Reports Fourth Quarter and Full Year 2023 Results Provides Fiscal Year 2024 Outlook NEEDHAM, Massachusetts, February 15, 2024 – SharkNinja, Inc. ("SharkNinja" or the "Company") (NYSE: SN), a global product design and technology company, today announced its financial results for the fourth quarter and year ended December 31, 2023. Highlights for the Fourth Quarter 2023 as compared to the Fourth Quarter 2022 Highlights for the Year Ended 2023 as compared to the Year Ended 2022 Mark Barrocas, Chief ...

SharkNinja launches the Ninja® DoubleStack™ XL, the industry's first vertical two-basket air fryer that provides double the performance with 40% less countertop footprint. (Photo: Business Wire)SharkNinja launches the Shark FlexBreeze™, a unique cooling solution built for outdoor and indoor use. Two-in-one cooling tool, which transforms from a pedestal to a tabletop fan at the touch of a button. Delivers breeze from 70 feet away, provides 20 hours of battery runtime on a single battery charge, and reduces t ...

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate rev ...

Exhibit 99.1 SHARKNINJA, INC. INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | | Page | | --- | --- | | Condensed Consolidated Balance Sheets (Unaudited) | 2 | | Condensed Consolidated Statements of Income (Unaudited) | 3 | | Condensed Consolidated Statements of Comprehensive Income (Unaudited) | 4 | | Condensed Consolidated Statements of Shareholders' Equity (Unaudited) | 5 | | Condensed Consolidated Statements of Cash Flows (Unaudited) | 7 | | Notes to Condensed Consolidated Financial Statements (Un ...

Condensed Consolidated Financial Statements [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets reached $3.42 billion, liabilities $1.55 billion, and equity $1.87 billion, reflecting overall balance sheet growth Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $1,836,342 | $1,715,692 | | **Total Assets** | **$3,421,437** | **$3,294,891** | | **Total Current Liabilities** | $1,110,000 | $968,698 | | **Total Liabilities** | **$1,554,927** | **$1,466,602** | | **Total Shareholders' Equity** | **$1,866,510** | **$1,828,289** | [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the six months ended June 30, 2023, net sales grew 13.7% to $1.81 billion, but increased operating and other expenses led to a 6.0% decrease in net income to $99.0 million Statement of Income Summary (in thousands) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | $1,805,594 | $1,587,823 | +13.7% | | Gross profit | $797,464 | $643,393 | +23.9% | | Operating income | $178,262 | $158,488 | +12.5% | | Net income | $99,032 | $105,406 | -6.0% | | Net income per share, diluted | $0.71 | $0.76 | -6.6% | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the six months ended June 30, 2023, comprehensive income increased to $98.5 million, primarily due to a positive foreign currency translation adjustment offsetting an unrealized loss on derivatives Comprehensive Income Summary (in thousands) | Item | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net income | $99,032 | $105,406 | | Foreign currency translation adjustments | $8,413 | $(19,857) | | Unrealized loss on derivative instruments, net | $(8,941) | — | | **Comprehensive income** | **$98,504** | **$85,549** | [Condensed Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased to $1.87 billion as of June 30, 2023, driven by net income partially offset by a $60.3 million distribution to the Parent Changes in Shareholders' Equity (Six Months Ended June 30, 2023, in thousands) | Description | Amount | | :--- | :--- | | Balance as of December 31, 2022 | $1,828,289 | | Net income | $99,032 | | Distribution paid to Parent | $(60,283) | | Other comprehensive loss, net of tax | $(528) | | Share-based compensation activities | $0 | | **Balance as of June 30, 2023** | **$1,866,510** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2023, operating cash flow significantly improved to $200.4 million, leading to a net cash increase of $60.8 million and a total cash position of $279.6 million Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Category | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $200,385 | $(14,074) | | Net cash used in investing activities | $(47,816) | $(38,665) | | Net cash used in financing activities | $(97,784) | $(32,024) | | **Net increase (decrease) in cash** | **$60,816** | **$(92,419)** | | **Cash at end of period** | **$279,586** | **$148,178** | Notes to Condensed Consolidated Financial Statements [Note 1: Organization and Description of Business](index=9&type=section&id=1.%20Organization%20and%20Description%20of%20Business) SharkNinja, a global product design and technology company known for its 'Shark' and 'Ninja' brands, separated from JS Global and began trading on the NYSE on July 31, 2023 - The company operates under the 'Shark' and 'Ninja' brands, focusing on innovative lifestyle products like cleaning and cooking appliances[22](index=22&type=chunk) - SharkNinja completed its separation from parent company JS Global and began trading on the NYSE on July 31, 2023[23](index=23&type=chunk) [Note 2: Summary of Significant Accounting Policies](index=9&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the company's U.S. GAAP accounting policies, highlighting significant customer concentration risk and providing a detailed breakdown of net sales by geography, brand, and product category [Concentration of Credit Risks](index=11&type=section&id=2.1%20Concentration%20of%20Credit%20Risks) The company faces significant credit risk concentration, with three major customers collectively accounting for 43.7% of net sales and 46.4% of net accounts receivable as of June 30, 2023 Customer Concentration (% of Net Sales) | Customer | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Customer A | 18.8% | 18.6% | | Customer B | 10.1% | 11.7% | | Customer C | 14.8% | 15.2% | Customer Concentration (% of Accounts Receivable, Net) | Customer | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Customer A | 20.1% | 15.1% | | Customer B | 13.6% | <10% | | Customer C | 12.7% | 19.8% | [Transfer of Financial Instruments](index=12&type=section&id=2.2%20Transfer%20of%20Financial%20Instruments) The company's Deferred Purchase Price (DPP) receivable from its August 2022 Receivable Purchase Agreement, valued at $22.3 million at year-end 2022, was fully collected by June 30, 2023 - The company's risk of loss related to the RPA was limited to the uncollected portion of the DPP, which was **$22.3 million** as of December 31, 2022[44](index=44&type=chunk) - All amounts on sold receivables under the RPA were collected as of June 30, 2023, and the DPP receivable balance was reduced to **zero**[44](index=44&type=chunk)[46](index=46&type=chunk) [Disaggregation of Net Sales](index=13&type=section&id=2.3%20Disaggregation%20of%20Net%20Sales) For the six months ended June 30, 2023, North America remained the largest market at 69.1% of net sales, while Europe showed significant growth to 25.2%, with Cooking and Beverage Appliances also increasing their contribution Net Sales by Region (Six Months Ended June 30, in thousands) | Region | 2023 | % of Total | 2022 | % of Total | | :--- | :--- | :--- | :--- | :--- | | North America | $1,247,641 | 69.1% | $1,243,530 | 78.3% | | Europe | $455,730 | 25.2% | $262,007 | 16.5% | | Rest of World | $102,223 | 5.7% | $82,286 | 5.2% | | **Total** | **$1,805,594** | **100%** | **$1,587,823** | **100%** | Net Sales by Product Category (Six Months Ended June 30, in thousands) | Category | 2023 | % of Total | 2022 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Cleaning Appliances | $828,667 | 45.9% | $848,187 | 53.4% | | Cooking and Beverage Appliances | $599,732 | 33.2% | $436,131 | 27.5% | | Food Preparation Appliances | $261,224 | 14.5% | $266,166 | 16.8% | | Other | $115,971 | 6.4% | $37,339 | 2.3% | | **Total** | **$1,805,594** | **100%** | **$1,587,823** | **100%** | [Note 3: Condensed Consolidated Balance Sheet Components](index=15&type=section&id=3.%20Condensed%20Consolidated%20Balance%20Sheet%20Components) This note details key balance sheet components, showing property and equipment increasing to $143.2 million, prepaid expenses decreasing to $96.8 million, and accrued expenses growing to $639.0 million Property and Equipment, Net (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Molds and tooling | $237,458 | $209,984 | | Computer and software | $93,172 | $88,483 | | Displays | $98,935 | $90,722 | | Less: accumulated depreciation | $(364,788) | $(322,022) | | Construction in progress | $17,317 | $12,788 | | **Total** | **$143,178** | **$137,341** | Accrued Expenses and Other Current Liabilities (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Accrued customer incentives | $321,182 | $230,195 | | Accrued expenses | $119,363 | $99,962 | | Accrued compensation and benefits | $51,526 | $71,762 | | **Total** | **$638,955** | **$552,023** | [Note 4: Fair Value Measurements](index=16&type=section&id=4.%20Fair%20Value%20Measurements) As of June 30, 2023, the company's fair value measurements primarily included $23.4 million in Level 2 derivative liabilities, while the $22.3 million Level 3 DPP receivable was reduced to zero - As of June 30, 2023, the company held **$23.4 million** in derivative liabilities (forward contracts), classified as Level 2 fair value measurements[61](index=61&type=chunk) - The DPP receivable, a Level 3 asset, had a balance of **$0** as of June 30, 2023, down from **$22.3 million** at the end of 2022[61](index=61&type=chunk) [Note 5: Derivative Financial Instruments and Hedging](index=18&type=section&id=5.%20Derivative%20Financial%20Instruments%20and%20Hedging) The company uses USD-denominated forward contracts for foreign currency risk, with a total notional amount of $813.5 million as of June 30, 2023, and recognized a $25.7 million loss from non-hedging derivatives Notional Amount of Forward Contracts (in thousands) | Type | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Designated as Hedging Instruments | $330,200 | $0 | | Not Designated as Hedging Instruments | $483,260 | $956,191 | | **Total** | **$813,460** | **$956,191** | - For the six months ended June 30, 2023, the company recognized a loss of **$25.7 million** from derivatives not designated as hedging instruments[66](index=66&type=chunk) [Note 6: Intangible Assets, Net and Goodwill](index=19&type=section&id=6.%20Intangible%20Assets,%20Net%20and%20Goodwill) As of June 30, 2023, net intangible assets totaled $485.2 million, primarily indefinite-lived trade names, while goodwill remained stable at $839.8 million, with $11.2 million in amortization expense Intangible Assets, Net (June 30, 2023, in thousands) | Asset Type | Net Carrying Value | | :--- | :--- | | Customer relationships | $51,669 | | Patents | $31,496 | | Developed technology | $17,697 | | Trade name and trademarks (indefinite) | $384,334 | | **Total intangible assets, net** | **$485,196** | - Goodwill was **$839.8 million** as of June 30, 2023, a slight decrease from **$840.1 million** at year-end 2022 due to foreign currency translation[71](index=71&type=chunk) [Note 7: Debt](index=20&type=section&id=7.%20Debt) As of June 30, 2023, $400.0 million in 2020 Term Loans were outstanding, which were subsequently repaid in July 2023 through a new $810.0 million term loan and $500.0 million revolving credit facility - As of June 30, 2023, long-term debt, net of the current portion, was **$299.5 million**[76](index=76&type=chunk) - In July 2023, the company refinanced its debt, replacing the 2020 Facilities Agreement with a new 2023 Credit Agreement that provides for an **$810.0 million** term loan and a **$500.0 million** revolving facility[77](index=77&type=chunk) [Note 8: Commitments and Contingencies](index=21&type=section&id=8.%20Commitments%20and%20Contingencies) The company's commitments and contingencies include immaterial purchase obligations and customer indemnifications, with no current litigation expected to materially impact financial condition - The company is not presently a party to any litigation that it believes would have a material adverse effect on its business or financial results[81](index=81&type=chunk) [Note 9: Shareholders' Equity and Equity Incentive Plan](index=22&type=section&id=9.%20Shareholders'%20Equity%20and%20Equity%20Incentive%20Plan) During the first six months of 2023, the company settled a $50.1 million intercompany note with its Parent, and all outstanding RSUs vested or were forfeited, resulting in no unvested RSUs by June 30, 2023 - An intercompany note to the Parent with an outstanding balance of **$50.1 million** was satisfied during the six months ended June 30, 2023[82](index=82&type=chunk) - As of June 30, 2023, there were **no unvested RSUs** remaining under the JS Global RSU Plan[83](index=83&type=chunk) [Note 10: Income Taxes](index=23&type=section&id=10.%20Income%20Taxes) For the six months ended June 30, 2023, the company's effective tax rate decreased to 22.2%, resulting in an income tax expense of $28.3 million Income Tax Summary | Period | Income Tax Expense (in millions) | Effective Tax Rate | | :--- | :--- | :--- | | Six Months Ended June 30, 2023 | $28.3 | 22.2% | | Six Months Ended June 30, 2022 | $32.1 | 23.4% | [Note 11: Net Income Per Share](index=23&type=section&id=11.%20Net%20Income%20Per%20Share) For the six months ended June 30, 2023, basic and diluted net income per share was $0.71, calculated using 138,982,872 shares reflecting the post-separation share count - The weighted-average number of shares used for calculating historical EPS is **138,982,872**, reflecting the number of shares distributed at the time of separation from JS Global[89](index=89&type=chunk) Net Income Per Share | Period | Net Income (in thousands) | Weighted-Average Shares | Basic & Diluted EPS | | :--- | :--- | :--- | :--- | | Six Months Ended June 30, 2023 | $99,032 | 138,982,872 | $0.71 | | Six Months Ended June 30, 2022 | $105,406 | 138,982,872 | $0.76 | [Note 12: Related Party Transactions](index=24&type=section&id=12.%20Related%20Party%20Transactions) The company engages in significant related party transactions, with purchases of goods totaling $712.0 million for the six months ended June 30, 2023, and accounts payable to related parties at $283.5 million Related Party Transactions (in thousands) | Transaction | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Purchase of goods | $712,027 | $683,644 | | Purchase of services | $1,766 | $1,801 | - As of June 30, 2023, accounts payable to related parties was **$283.5 million**, a significant liability on the balance sheet[93](index=93&type=chunk) [Note 13: Subsequent Events](index=25&type=section&id=13.%20Subsequent%20Events) Significant subsequent events in July 2023 include debt refinancing, a $375.0 million cash distribution to JS Global, the finalization of separation, and the adoption of a new equity incentive plan - In July 2023, the company paid a special cash distribution of **$375.0 million** to its parent, JS Global[99](index=99&type=chunk) - The separation from JS Global was completed in July 2023, and various agreements were established to govern the post-separation relationship[100](index=100&type=chunk) - A new equity incentive plan was adopted in July 2023, reserving **13,898,287 shares** of common stock for future grants[101](index=101&type=chunk)