Logitech International S.A.

Good morning and good afternoon. Welcome to Logitech's video call to discuss our financial results for the fourth quarter and full fiscal year 2024. Joining us today are Hanukkah Faber, our CEO, and Chuck Boyden, our CFO. During this call, we will make forward-looking statements, including with respect to future operating results under the safe harbor of the Private Securities Litigation Reform Act of 1995. We're making these statements based on our views only as of today. Our actual results could differ materially, and we undertake no obligation to update or revise any of these statements. We will also discuss non-GAAP financial results. You can find a reconciliation between GAAP and non-GAAP results and information about our use of non-GAAP measures and factors that could impact our financial results and forward-looking statements in our press release and in our filings with the SEC. These materials, as well as the shareholder letter and a webcast of this call, are all available at the Investor Relations page of our website. We encourage you to review these materials carefully. Unless noted otherwise, comparisons between periods are year over year and in constant currency and net sales. This call is being recorded and will be available for a replay on our website. I will now turn the call over to Hanukkah.

Thank you, Nate, and welcome, everyone. In today's call, we're going to cover three items, all of which are detailed in the shareholder letter that we released with our earnings materials. First, Chuck will provide the highlights of our fourth quarter and our full year results. I'll then briefly touch on my view of our current assets, the secular trends driving the business, and strategic decisions that we're implementing. And I'm going to close with our financial outlook. Let me start though by saying how pleased I am about the execution of our teams in the fourth quarter. we returned to top line growth. We executed at a very high level with both gross and operating margins up year over year. And before Chuck dives into the numbers, I want to thank him for an impactful tenure here at Logitech. He's built a highly capable finance team and he has helped drive the consistent progress we've seen in the business over the last year. He's going to be missed and we wish him all the best. And now Chuck, over to you.

Well, thank you, Hanukkah. And thank you all for joining us on the call today. I am so proud of the way our employees finished the year. In addition to further enhancing the value chain, we continued our cost reductions and promotional discipline. These factors all drove better than expected fourth quarter results. The detailed financial results can be found in the press release and in the shareholder letter, but I'd like to call your attention to three metrics. First, we are pleased to see Q4 revenue return to growth at plus 5%. However, please note the channel inventory reduction in Q4 was lower than last year's reduction. When normalized for the change in channel inventory, net sales growth was closer to plus 3%. Second, our Q4 non-GAAP gross margin of 43.6% was better than expected due to lower product costs, lower inventory reserves, and reduced promotional activities. For the year, we achieved non-GAAP gross margin of 41.8%, a tremendous accomplishment by the team and comfortably within the range of our operating model. And finally, the business continues to generate impressive cashflow. In Q4, we delivered 239 million of operating cashflow, totaling over 1.1 billion for the year. We returned almost $700 million to our shareholders and ended the year with a fortress balance sheet. Thank you, Hanukkah, and thank you, Logitech, for the opportunity to serve. It's been a real pleasure, and I will miss everyone. With that, I'll turn it back over to Hanukkah. Hanukkah?