February 13, 2025 07:00 AM Eastern Standard Time

NEEDHAM, Mass.--(BUSINESS WIRE)--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, 2024.

Highlights for the Fourth Quarter 2024 as compared to the Fourth Quarter 2023

• Net sales increased 29.7% to $1,787.2 million.
• Gross margin and Adjusted Gross Margin increased 180 and 40 basis points, respectively.
• Operating income increased 103.6% to $205.1 million. Adjusted Operating Income increased 28.1% to $256.5 million.
• Net income increased 161.0% to $128.7 million. Adjusted Net Income increased 49.6% to $197.6 million.
• Adjusted EBITDA increased 32.5% to $290.5 million, or 16.3% of Adjusted Net Sales.

Highlights for the Year Ended 2024 as compared to the Year Ended 2023

• Net sales increased 30.0% to $5,528.6 million and Adjusted Net Sales increased 32.4% to $5,528.6 million.
• Gross margin and Adjusted Gross Margin increased 320 and 220 basis points, respectively.
• Operating income increased 72.4% to $644.2 million. Adjusted Operating Income increased 31.5% to $839.5 million.
• Net income increased 162.6% to $438.7 million. Adjusted Net Income increased 37.2% to $616.2 million.
• Adjusted EBITDA increased 32.2% to $951.1 million, or 17.2% of Adjusted Net Sales.

Mark Barrocas, Chief Executive Officer, commented, “SharkNinja delivered exceptional performance throughout 2024, capping off our strongest year to date with outstanding fourth quarter results. Our proven three-pillar growth strategy continues to drive market share gains across our expanding product portfolio, fuel category expansion, and accelerate our global presence. The remarkable execution by our teams, combined with our robust innovation pipeline and deep consumer insights, has strengthened our competitive position in our large and growing addressable market. As we enter 2025, we are energized by the tremendous opportunities ahead and remain confident in our ability to scale our brands globally while delivering innovative solutions that delight consumers. Our strong momentum and proven playbook position us to drive sustainable, profitable growth and long-term value creation for our stakeholders.”

Three Months Ended December 31, 2024

Net sales increased 29.7% to $1,787.2 million, compared to $1,377.5 million during the same period last year, or 28.5% on a constant currency basis. The increase in net sales resulted from growth across all four product categories, led by Food Preparation Appliances which grew nearly 90%.

• Cleaning Appliances net sales increased by $106.5 million, or 19.7%, to $648.0 million, compared to $541.5 million in the prior year quarter, driven by the carpet extractor, hard floor, and cordless vacuums sub-categories.
• Cooking and Beverage Appliances net sales increased by $94.7 million, or 18.8%, to $597.3 million, compared to $502.6 million in the prior year quarter, driven by growth in Europe and the continued momentum within heated cooking.
• Food Preparation Appliances net sales increased by $161.0 million, or 89.0%, to $342.0 million, compared to $180.9 million in the prior year quarter, driven by strong sales of our ice cream makers and frozen drink appliances.
• Beauty and Home Environment Appliances net sales increased by $47.4 million, or 31.1%, to $199.9 million, compared to $152.5 million in the prior year quarter, primarily driven by strength of haircare products and air purifiers.

Gross profit increased 34.8% to $839.5 million, or 47.0% of net sales, compared to $622.9 million, or 45.2% of net sales, in the fourth quarter of 2023. Adjusted Gross Profit increased 30.9% to $854.7 million, or 47.8% of net sales, compared to $652.7 million, or 47.4% of net sales in the fourth quarter of 2023. The increase in gross margin and Adjusted Gross Margin of 180 and 40 basis points, respectively, was derived from optimizations within our supply chain and sourcing and costing strategy, partially offset by the impacts of tariffs and geographical mix.

Research and development expenses increased 25.9% to $86.8 million, or 4.9% of net sales, compared to $69.0 million, or 5.0% of net sales, in the prior year quarter. This increase was primarily driven by incremental personnel-related expenses of $10.6 million due to increased headcount to support new product categories and new market expansion and an increase in depreciation and amortization expense of $3.4 million.

Sales and marketing expenses increased 28.8% to $424.6 million, or 23.8% of net sales, compared to $329.6 million, or 23.9% of net sales, in the fourth quarter of 2023. This increase was primarily attributable to an increase of $48.6 million in advertising-related expenses, an increase of $34.6 million in delivery and distribution costs driven by higher volumes, particularly in our direct-to-consumer (“DTC”) business, and an increase of $6.2 million in personnel-related expenses to support new product launches and expansion into new markets.

General and administrative expenses decreased 0.5% to $123.0 million, or 6.9% of net sales, compared to $123.6 million, or 9.0% of net sales in the prior year quarter. This decrease was primarily driven by a litigation recovery in the current quarter of $20.0 million and transaction costs incurred in the prior year quarter related to the separation and distribution from JS Global and secondary offering transactions of $3.2 million. The decrease was offset by an increase of $7.6 million in legal fees, an increase of $6.1 million in technology support costs and an increase of $3.6 million in credit card processing and merchant fees.

Operating income increased 103.6% to $205.1 million, or 11.5% of net sales, compared to $100.8 million, or 7.3% of net sales, during the prior year. Adjusted Operating Income increased 28.1% to $256.5 million, or 14.4% of net sales, compared to $200.2 million, or 14.5% of net sales, in 2023.

Net income increased 161.0% to $128.7 million, or 7.2% of net sales, compared to $49.3 million, or 3.6% of net sales, in the prior year. Net income per diluted share increased 160.0% to $0.91, compared to $0.35 in the prior year.

Adjusted Net Income increased 49.6% to $197.6 million, or 11.1% of net sales, compared to $132.1 million, or 9.6% of net sales, in the prior year. Adjusted Net Income per diluted share increased 48.3% to $1.40, compared to $0.94 in the prior year.

Adjusted EBITDA increased 32.5% to $290.5 million, or 16.3% of net sales, compared to $219.3 million, or 15.9% of net sales in the prior year.

Year Ended December 31, 2024

Net sales increased 30.0% to $5,528.6 million, compared to $4,253.7 million during the prior year. Adjusted Net Sales increased 32.4% to $5,528.6 million, compared to $4,176.2 million during the prior year, or 31.3% on a constant currency basis. The increase in net sales resulted from growth across all four product categories, led by Food Preparation Appliances which grew over 80%.

• Cleaning Appliances net sales increased by $244.0 million, or 13.4%, to $2,063.5 million, compared to $1,819.5 million in the prior year. Adjusted Net Sales of Cleaning Appliances increased by $293.4 million, or 16.6%, from $1,770.1 million to $2,063.5 million, driven by the carpet extractor, hard floor, and cordless vacuums sub-categories.
• Cooking and Beverage Appliances net sales increased by $276.0 million, or 19.1%, to $1,717.7 million, compared to $1,441.6 million in the prior year. Adjusted Net Sales of Cooking and Beverage Appliances increased by $282.2 million, or 19.7%, from $1,435.5 million to $1,717.7 million, driven by growth in Europe. Global growth was supported by the success of the outdoor grill and outdoor oven across both the US and European markets.
• Food Preparation Appliances net sales increased by $525.1 million, or 80.3%, to $1,178.7 million, compared to $653.6 million in the prior year. Adjusted Net Sales of Food Preparation Appliances increased by $533.4 million, or 82.7%, from $645.3 million to $1,178.7 million, driven by strong sales of our ice cream makers and compact blenders, specifically our portable blenders, as well as the launch of our frozen drink appliances.
• Beauty and Home Environment Appliances net sales increased by $229.7 million, or 67.8%, to $568.7 million, compared to $339.0 million in the prior year. Adjusted Net Sales of Beauty and Home Environment Appliances increased by $243.4 million, or 74.8%, from $325.3 million to $568.7 million, driven by continued strength of haircare products, our FlexBreeze fans, and air purifiers.

Gross profit increased 39.5% to $2,662.0 million, or 48.1% of net sales, compared to $1,907.9 million, or 44.9% of net sales, in 2023. Adjusted Gross Profit increased 38.6% to $2,715.1 million, or 49.1% of Adjusted Net Sales, compared to $1,958.6 million, or 46.9% of Adjusted Net Sales, in 2023. The increase in gross margin and Adjusted Gross Margin of 320 and 220 basis points, respectively, was driven by optimizations within our supply chain, sourcing and costing strategy, regional expansion, and foreign exchange benefit, as well as a reduction in the contractual sourcing service fee paid to JS Global for supply chain services.

Research and development expenses increased 36.9% to $341.3 million, or 6.2% of net sales, compared to $249.4 million, or 5.9% of net sales, in the prior year. This increase was primarily driven by incremental personnel-related expenses of $44.0 million driven by increased headcount to support new product categories and new market expansion, and includes an increase of $2.7 million in share-based compensation. The overall increase was also driven by an increase of $21.4 million in prototypes and testing costs, an increase of $12.4 million in professional and consulting fees, an increase of $5.5 million in consumer insight initiatives and an increase of $5.5 million in depreciation and amortization expense.

Sales and marketing expenses increased 38.5% to $1,243.1 million, or 22.5% of net sales, compared to $897.6 million, or 21.1% of net sales, in 2023. This increase was primarily attributable to increases of $176.1 million in advertising-related expenses, an increase of $113.7 million in delivery and distribution costs driven by higher volumes, particularly in our DTC business, an increase of $45.1 million in personnel-related expenses to support new product launches and expansion into new markets, which includes an incremental $8.6 million of share-based compensation, an increase of $12.1 million in professional and consulting fees and an increase of $4.9 million in travel costs, offset by a decrease in depreciation and amortization expense of $8.5 million.

General and administrative expenses increased 11.9% to $433.4 million, or 7.8% of net sales, compared to $387.3 million, or 9.1% of net sales in the prior year. This increase was primarily driven by an increase of $36.3 million in professional and consulting fees, an increase of $31.7 million in personnel-related expenses driven by additional headcount to support overall growth, including a $26.2 million increase in share-based compensation, an increase of $18.0 million in technology support costs, an increase of $17.4 million in credit card processing and merchant fees, an increase of $23.6 million in legal fees, a legal settlement of $13.5 million that was paid out, and an increase of $5.4 million in depreciation and amortization expense, offset by a decrease in transaction costs related to the separation and distribution from JS Global and secondary offering of $80.9 million and a legal settlement of $20.0 million.

Operating income increased 72.4% to $644.2 million, or 11.7% of net sales, compared to $373.6 million, or 8.8% of net sales, during the prior year. Adjusted Operating Income increased 31.5% to $839.5 million, or 15.2% of Adjusted Net Sales, compared to $638.3 million, or 15.3% of Adjusted Net Sales, in 2023.

Net income increased 162.6% to $438.7 million, or 7.9% of net sales, compared to $167.1 million, or 3.9% of net sales, in the prior year. Net income per diluted share increased 159.2% to $3.11, compared to $1.20 in the prior year.

Adjusted Net Income increased 37.2% to $616.2 million, or 11.1% of Adjusted Net Sales, compared to $449.3 million, or 10.8% of Adjusted Net Sales, in the prior year. Adjusted Net Income per diluted share increased 35.6% to $4.37, compared to $3.22 in the prior year.

Adjusted EBITDA increased 32.2% to $951.1 million, or 17.2% of Adjusted Net Sales, compared to $719.7 million, or 17.2% of Adjusted Net Sales, in the prior year.

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents increased to $363.7 million, compared to $154.1 million as of December 31, 2023.

Inventories increased 28.6% to $900.0 million, compared to $699.7 million as of December 31, 2023.

Total debt, excluding unamortized deferred financing costs, was $779.6 million, compared to $804.9 million as of December 31, 2023. The existing credit facility provides for a $810.0 million term loan and a $500.0 million revolving credit facility, which has an available balance of $488.9 million as of December 31, 2024.

Fiscal 2025 Outlook

For fiscal year 2025, SharkNinja expects the following, including the impact of 10% additional tariff on imports from China that were announced on February 1, 2025:

• Net sales to increase 10.0% to 12.0% compared to the prior year.
• Adjusted Net Income per diluted share between $4.80 and $4.90, reflecting a 12% to 15% increase compared to the prior year.
• Adjusted EBITDA between $1,070 million and $1,090 million, reflecting a 13% to 15% increase compared to the prior year.
• A GAAP effective tax rate of approximately 24% to 25%.
• Diluted weighted average shares outstanding of approximately 142.5 million.
• Capital expenditures of $180 million to $200 million primarily to support investments in new product launches and technology.

Conference Call Details

A conference call to discuss the 2024 financial results and fiscal 2025 outlook is scheduled for today, February 13, 2025, at 8:30 a.m. Eastern Time. A live audio webcast of the conference call will be available online at http://ir.sharkninja.com. Investors and analysts interested in participating in the live call are invited to dial 1-833-470-1428 or 1-404-975-4839 and enter confirmation code 021127. The webcast will be archived and available for replay.

About SharkNinja

SharkNinja is a global product design and technology company, with a diversified portfolio of 5-star rated lifestyle solutions that positively impact people’s lives in homes around the world. Powered by two trusted, global brands, Shark and Ninja, the company has a proven track record of bringing disruptive innovation to market, and developing one consumer product after another has allowed SharkNinja to enter multiple product categories, driving significant growth and market share gains. Headquartered in Needham, Massachusetts with more than 3,600 associates, the company’s products are sold at key retailers, online and offline, and through distributors around the world. For more information, please visit SharkNinja.com.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our future business, financial condition, results of operations and prospects and Fiscal 2025 outlook. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or phrases or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not statements of historical fact, and are based on current expectations, estimates and projections about our industry as well as certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control.

• our ability to maintain and strengthen our brands to generate and maintain ongoing demand for our products;
• our ability to commercialize a continuing stream of new products and line extensions that create demand;
• our ability to effectively manage our future growth;
• general economic conditions and the level of discretionary consumer spending;
• our ability to expand into additional consumer markets;
• our ability to maintain product quality and product performance at an acceptable cost;
• our ability to compete with existing and new competitors in our markets;
• problems with, or loss of, our supply chain or suppliers, or an inability to obtain raw materials;
• the risks associated with doing business globally;
• inflation, changes in the cost or availability of raw materials, energy, transportation and other necessary supplies and services;
• our ability to hire, integrate and retain highly skilled personnel;
• our ability to maintain, protect and enhance our intellectual property;
• our ability to securely maintain consumer and other third-party data;
• our ability to comply with ongoing regulatory requirements;
• the increased expenses associated with being a public company;
• our status as a “controlled company” within the meaning of the rules of NYSE;
• our ability to achieve some or all of the anticipated benefits of the separation; and
• the payment of any declared dividends.

This list of factors should not be construed as exhaustive and should be read in conjunction with those described in our Annual Report on Form 20-F filed with the SEC under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other filings we make with the SEC. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release, and our future levels of activity and performance, may not occur and actual results could differ materially and adversely from those described or implied in the forward-looking statements. As a result, you should not regard any of these forward-looking statements as a representation or warranty by us or any other person or place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.