SharkNinja, Inc.

Good morning and welcome to Shark Ninja's fourth quarter 2024 earnings call. My name is Harry and I'll be your operator. All lines are currently in listen-only mode and there'll be an opportunity for Q&A after management's prepared remarks. If you would like to enter the key for questions, please dial star followed by one on your telephone keypad. I would now like to hand the conference over to Arvind Bhatia, Senior Vice President, Investor Relations. Thank you. Please go ahead.

Good morning and welcome to Shark Ninja's fourth quarter 2024 earnings conference call. Earlier today, we issued our Q4 earnings release, which is available on the company's website at ir.sharkninja.com. A replay of today's webcast will also be available on the site shortly after the call. Before we begin, let me remind you that today's discussion will include forward-looking statements based on our current perspective of the business environment. These statements involve risks and uncertainty, and actual results may differ materially. For more details, please refer to our earnings release and the company's most recent SEC filings, which outline factors that could impact these statements. The company assumes no obligation to update or revise forward-looking statements in the future. Additionally, during the call, we will reference non-GAAP financial measures, which we believe provide valuable insight into the underlying growth trends of our business. You can find a full reconciliation of these measures for their most directly comparable GAAP measures in the earnings release. A quick reminder, we divested our APAC business in Q3 of last year, so it's no longer included in our year-over-year comparisons this quarter. Joining me today are our Chief Executive Officer, Mark Kouroukas, and Chief Financial Officer, Patrick Regan. Mark will start by providing a business update, followed by Patrick, who will review our Q4 and full year 2024 financial results and share our outlook for 2025. Mark will then offer some closing remarks before we open the call to questions. With that, I will now turn it over to Mark.

Thank you, Arvind. Good morning, everyone, and thank you for joining us today. Our fourth quarter results were exceptionally strong. Once again, our global teams knocked it out of the park with incredible top and bottom line performance. Net sales grew an impressive 30%. Adjusted EBITDA was up 32%, building on the 71% growth we delivered in Q4 last year. We're delivering rapid and highly profitable organic growth at scale. What excites me even more than our strong Q4 results is the breadth of our performance. Across each of our four key categories, cleaning, cooking, food prep, and the newly branded beauty and home environment, we've delivered very strong double-digit growth. In North America, net sales increased 22% year over year. our international business continued to be a standout. Adjusted net sales grew 49% on top of last year's impressive 62% growth in the fourth quarter. It's been an amazing quarter, and I'm so proud of how our teams continue to consistently deliver and drive sustainable growth. Looking at full year results, 2024 was a remarkably strong year. We grew adjusted net sales 32%, and that's on top of 15% growth last year. We drove adjusted EBITDA growth of 32%, building on 39% growth last year. This means over the past two years, we've achieved a compounded annual growth rate of 24% in adjusted net sales and 35% in adjusted EBITDA, extending our long track record of success. We have also expanded adjusted EBITDA margins by nearly 300 basis points over the past two years, while strategically investing and fueling the next wave of innovation and geographic expansion. We're building a strong foundation for scalable organic growth. We added over $1.3 billion in adjusted net sales growth this year, bringing our total to $5.5 billion. We increased adjusted EBITDA by more than $230 million, surpassing $950 million. This strong performance highlights the power of our profitable growth flywheel as our healthy revenue growth, strong gross margin, and productive reinvestment into our business fuel our market share gain, new category expansions, and geographic growth. Our performance also speaks to the strength of our team and a cultural mindset that recognizes and reinforces a desire to learn and grow and a shared drive to be the very best at what we do. Together as a team, we embrace the shared mindset that all success is only temporary. We're driven by a deep-seated confidence in our problem-solving abilities and a desire to achieve the extraordinary. With this powerful shared mindset at the core of our company, we're strengthening our competitive edge and accelerating our progress in a large and rapidly expanding market. 2024 has been our best year yet, but I believe this is just the beginning. Looking ahead, the first quarter of 25 is off to a solid start. We're not just managing uncertainty, we're on the offense. executing against a well-defined strategy of consumer-focused innovation, strong demand creation, and a highly diversified portfolio of products, geographies, and channels. As a result, we're in a great position to drive strong double-digit growth for the full year. Our three pillar growth strategy is the foundation of our organic growth engine. This strategy focuses on expanding into new and adjacent categories, increasing market share in existing categories, and driving international growth. Disruptive consumer problem-solving innovation is what Shark Ninja excels at. Our investments in R&D the past two years have filled the pipeline with exciting new ideas. We plan to launch 25 new products this year across both new and existing categories. We'll be bringing to market a steady flow of new products each quarter, some of which have already launched in 2025. The first pillar of our growth strategy, expanding into new and adjacent categories, continues to be a key driver of success. Shark Engine now participates in 36 new subcategories both inside and outside the home, all of which have been developed internally. We're committed to entering at least two new subcategories each year. In 2024, we exceeded this goal by launching into four new subcategories, coolers, fans, frozen drink appliances, and skincare. We believe that each of these subcategories has a strong growth potential for us in 2025 and beyond. Ninja Slushie, our professional-grade frozen drink maker, has been a hit with consumers. Fueled by its viral popularity, Slushie has already generated more than a half a billion social media impressions to date. Consumer engagement continues to grow. we've secured multiple branded partnerships for Slushy. These collaborations are helping us reach new audiences, creating unique experiences, and sustaining social buzz. Slushy will start rolling out in the UK and other international markets later this year. With Ninja Creamy leading the ice cream category and Slushy gaining momentum, we're on track to become the global destination in frozen treats. With Shark FlexBreeze, we created an entirely new category with our first indoor-outdoor cooling system. Its debut season was a tremendous success and established a solid foundation for us to build upon. Looking ahead to 2025, we have exciting innovation planned for this new category. We're gearing up to launch several new SKUs, and we'll be expanding this category into additional international markets. With the launch of our first FDA-cleared product, Shark CryoGlo, we're bringing MedSpot-quality skincare into the home, delivering dermatologist-optimized treatments for acne, fine lines, and wrinkles. Designed for a broad audience across all age groups, CryoGlo leverages red and blue LED, infrared technology, and under-eye cryo-cooling to rejuvenate and refresh the skin. Developed with scientists, dermatologists, and wellness experts, it is the first-of-a-kind solution, offering high-performance, clinically tested results at an accessible price point. CryoGlo has already outperformed sales expectations in its initial launch market, the UK and Mexico. And just last week, we introduced CryoGlo in the US through our direct-to-consumer platform. with a planned rollout to key beauty retailers in Q2. Press and influencer feedback for the product has been great, and we're excited by the innovation roadmap opportunities that the skincare category affords us moving forward. Our 2024 entry into the cooler category with Ninja Frost Vault was a resounding success despite limited supply and distribution. In 2025, we're poised to further disrupt and expand the category. We plan to broaden our SKU lineup, scale distribution, and enter international markets, enabling greater product availability during the pivotal spring and summer selling season. Our second growth pillar focuses on increasing market share within existing categories. A key strength of our business continues to be our ability to innovate and reinvent our core foundation. It's important to emphasize that our base business remains strong with healthy revenue, stable average selling prices, and solid gross margins. Growth in new categories and international expansion is critical, but it's equally important that our core business remains robust. This strength is not incidental. It's the result of continuous investment in innovation and reimagination. Within cleaning, our engineering and product teams have brought fresh ideas to the category to spark new growth. Our Shark Power Detect line showcases our most advanced cleaning technology yet across robots, cordless, and corded vacuums. These products deliver exceptional cleaning performance and raise the bar for automation in the industry. We've also broadened our hard floor cleaning lineup with the launch of the Shark Steam Pickup and the Shark Hydra Duo hard floor cleaners. The hard floor segment represents an exciting growth opportunity for us and adds further diversity to our overall cleaning business. All of this innovation is paying off as we delivered another strong quarter of nearly 20% growth in the cleaning category. Last September, we took another big step in innovating the cooking and beverage category with the launch of the Ninja Crispy. This portable cooking system reimagines cooking by putting the power of a full-size air fryer into the palm of your hand. It delivers consistently crispy results with incredible versatility in a compact design. Crispy is all about meeting consumers' growing demand for convenience. While we already lead the air fryer market, crispy lets us rethink, redefine, and reinvent the category. It opens up new opportunities, positions us for continued growth, and strengthens our market share in the air fryer space. Crispy is already performing well in the US, and we're gearing up to launch it in additional markets later this year. Just in time for grilling season, we're launching Ninja Flex Flame, our first large format outdoor cooking system with unmatched versatility. Until now, consumers had to choose between a grill, a smoker, a roaster, a griddle, or a pizza oven. Flex Flame eliminates that trade-off, seamlessly transforming between all five. Powered by our proprietary cyclonic heat IQ technology, precision heat distribution, and wood fire capabilities, it delivers faster, more flavorful results. But we're not just entering the large format outdoor cooking market, we're redefining it. This is a big, definable global category with significant upside. We're confident the Flex Flame will excite consumers in an industry that has seen soft demand post-COVID. We identified a significant global white space in coffee and espresso. With Ninja Lux Cafe, we've become the first to introduce a product designed not just to capture market share, but to expand the entire category. In the US, espresso household penetration remains very low. We took a consumer-first approach recognizing that American coffee drinkers want more than just a single shot of espresso. They want large format drip coffee, cold brew, iced coffee, and versatility in their at-home brewing experience. By addressing these preferences, we're giving consumers what they want rather than asking them to compromise. And we're doing it at a much more accessible price point. In Europe, where the espresso market is highly competitive and mature, consumer preferences are shifting. Drip coffee, iced beverages, and globally inspired drinks are becoming more popular. Our strategy is tailored to these evolving trends allowing us to disrupt the category differently across regions. By leveraging these insights, we've created a product that meets distinct regional needs while driving both category growth and market share expansion. This is a standout example of how we identify white space opportunities and capitalize on them with highly differentiated consumer-centric innovation. While Ninja Creamy continues to expand globally, with its first holiday season in Germany, the Nordics, and Brazil, we're not slowing down. We're strategically advancing this winning category with breakthrough innovation. We're thrilled to introduce Ninja Swirl, the next evolution in at-home frozen treats. The Ninja Creamy allowed consumers to turn just about anything into ice cream, and Ninja Swirl takes it a step further. bringing the full ice cream shop experience to the home with scooping and swirling capabilities. We listened closely to the passionate Creamy community and developed the swirl incorporating real user feedback. We introduced the fit button to cater to the growing demand for high protein frozen desserts and a soft serve function to deliver an even more versatile experience all at the touch of a button. This is a prime example of how we innovate with our consumers, not just for them. With a wait list of over 90,000 and more than 60 million social media impressions, it's clear that consumer anticipation for Swirl is already high. Our innovation strategy isn't about incremental launches. It's about creating new categories, disrupting mature categories, and continuously reinventing our foundational categories. Our performance in the beauty and home environment category reflects our commitment to disruptive innovation. FlexStyle had another very strong quarter. In Q4, we soft-launched FlexFusion, our next-generation air styler. FlexFusion is designed to tackle a major consumer concern, achieving hot tool styles without the damage caused by heat. In Q2 this year, we'll roll out FlexFusion into major beauty retailers, bringing this breakthrough technology to a wider audience. The full impact of this innovation is yet to be realized, and we're confident it will redefine expectations in the beauty space. We're tapping into the growing demand for multifunctional beauty tools, strengthening our presence in the beauty category, and setting the stage for even more growth. Innovation at Shark Ninja isn't just about launching new products. It's about reshaping industries and setting new consumer expectations. We create entirely new categories like creamy, slushy, cryo glow, and flex freeze. We disrupt and expand major markets with game-changing solutions like Carpet Expert, Lux Cafe, Frost Vault, and Flex Flame. And we never stop improving, building on our successes year after year with advancements like power detect, flex fusion, crispy, and swirl. This relentless drive for innovation keeps us ahead and fuels our long-term growth. Next, I'll focus on our third growth pillar, expanding into international markets. Our international business has achieved significant scale, generating $1.7 billion in net sales outside of North America in 2024. A key strategic focus in Q4 was to win at Christmas, particularly in continental Europe and Latin America. Based on retailer feedback, we delivered on that goal, securing major wins in these markets. European retailers saw substantial growth from Shark Ninja this past holiday season, positioning us for continued expansion into 2025. Our international strategy can be viewed in three key segments. First, the UK remains our largest international market, and our strategy here is focused on diversification. While Q4 was, and we expect Q1 will continue to be impacted by an intentional shift in our innovation cycle, prioritizing North America, new product launches in Q2 should drive a strong rebound. The fundamentals of our UK business remain solid, with significant untapped product categories and continued expansion into new retail channels, underscoring our confidence in long-term market potential. Second, while we've made significant strides, we're still in the early stages of expansion across continental Europe. Germany and France are scaling rapidly, but our strategy extends far beyond these core markets. We see tremendous opportunities in Spain, Poland, Benelux, and the Nordics, where consumer demand and retail support continue to strengthen. Our brands are gaining traction across social media and retail partnerships, validating our momentum. The engagement from top European retailers underscores their confidence in our future trajectory, not just our past performance. Third, Latin America. Building on our 624 success, we continue to gain market share and solidify retailer partnerships in Latin America. These regions present long-term opportunities, and we remain focused on measured investment and sustainable growth. Overall, our international business is thriving. With a 50% increase in adjusted net sales in 2024, we're executing a strategic vision that balances short-term wins with long-term scalability and expansion. As we move through 2025, we remain committed to driving sustained growth across all key categories. Product innovation is a critical pillar of our business, but equally important is great storytelling and creating consumer demand. We've executed exceptionally well on this front, establishing ourselves as one of the largest brands on social media. Our strategic investments in talent partnerships, experiential events, and multi-channel advertising have forged authentic connections with consumers, driving excitement and activating the user-generated content flywheel. This combination of best-in-class product innovation and world-class brand storytelling is not easily replicable. It's not just about launching a great product. It's about creating an ecosystem of demand that compels consumers to seek out our products at their preferred destination. Our marketing investments are delivering significant returns, fueling global momentum and brand affinity. Before our products even launch in new markets, we often see substantial pre-launch demand. This underscores the strength of our global consumer demand and the borderless nature of our brand appeal, which is also accelerating in international markets. I'll now hand it over to Patrick, who will walk you through our fourth quarter and four-year financials and share our 2025 outlook.