EX-99.1 4 exhibit991q3fy25.htm EX-99.1

                                             Exhibit 99.1

Editorial Contacts:

Kate Beerkens, Director of Investor Relations - ir@logitech.com

Nicole Kenyon, Head of Global Communications - nkenyon@logitech.com (USA)

Ben Starkie, Corporate Communications - +41 (0) 79-292-3499, bstarkie1@logitech.com (Europe/Asia)

Logitech Announces Fourth Consecutive Quarter of Sales Growth

Gaming Sales Near Pandemic High Levels;

Company Raises FY 2025 Outlook

LAUSANNE, Switzerland and SAN JOSE, Calif., Jan. 28, 2025 — SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the third quarter of Fiscal Year 2025.

•Sales were $1.34 billion, up 7 percent in US dollars and 6 percent in constant currency compared to Q3 of the prior year.

•GAAP gross margin was 42.9 percent, up 90 basis points compared to Q3 of the prior year. Non-GAAP gross margin was 43.2 percent, up 90 basis points compared to Q3 of the prior year.

•GAAP operating income was $235 million, up 6 percent compared to Q3 of the prior year. Non-GAAP operating income was $266 million, up 7 percent compared to Q3 of the prior year.

•GAAP earnings per share (EPS) was $1.32, down 15 percent compared to Q3 of the prior year. Non-GAAP EPS was $1.59, up 4 percent compared to Q3 of the prior year.

•Cash flow from operations was $371 million. The quarter-ending cash balance was $1.5 billion.

•The Company returned $200 million of cash to shareholders through share repurchases.

“We’re excited to deliver strong, profitable growth once again, in our biggest quarter of the year,” said Hanneke Faber, Logitech chief executive officer. “Our growth was driven by our strategic priorities. We delivered superior innovation. Gaming sales were near pandemic-high levels, thanks to an outstanding set of innovations launched ahead of the holidays. We delivered near record sales in our premium Pro Gaming and MX portfolios. Logitech for Business made excellent progress. And our teams fielded effective marketing campaigns and excellent holiday retail execution to drive broad-based geographic progress.”

“Q3 marks another disciplined quarter,” said Matteo Anversa, Logitech chief financial officer. “Thanks to our strong operational performance, we again delivered year-over-year expansion of gross margin. While we expect fourth quarter currency headwinds, the strong demand in the third quarter and the continued promotional and operational discipline of our teams give us confidence about the trajectory of our business, and we are increasing our full-year outlook.”

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Outlook

Logitech raised its full-year outlook for Fiscal Year 2025:

Previous FY25 outlook

New FY25 outlook

Sales

$4.39 - $4.47 billion

$4.54 - $4.57 billion

Sales growth (in US dollars, year over year)

2% - 4%

5.4% - 6.4%

Sales growth (in constant currency, year over year)

2% - 4%

6.2% - 7.1%

Non-GAAP operating income

$720 - $750 million

$755 - $770 million

Non-GAAP op. inc. growth (year over year)

3% - 7%

8% - 10%

Financial Results Videoconference and Webcast

Logitech will hold a financial results videoconference to discuss the results for Q3 Fiscal Year 2025 on Tuesday, January 28, 2025 at 1:30 p.m. Pacific Standard Time (PST) and 10:30 p.m. Central European Time (CET). A livestream of the event will be available on the Logitech corporate website at https://ir.logitech.com. This press release and the Q3 Fiscal Year 2025 Shareholder Letter are also available there.

Use of Non-GAAP Financial Information and Constant Currency

To facilitate comparisons to Logitech’s historical results, Logitech has included non-GAAP adjusted measures in this press release, which exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, restructuring charges (credits), net, loss (gain) on investments, non-GAAP income tax adjustment, and other items detailed under “Supplemental Financial Information” after the tables below and posted to our website at https://ir.logitech.com. Logitech also presents percentage sales growth in constant currency (“cc”), a non-GAAP measure, to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period’s average exchange rate for that currency and comparing that to current period sales. Logitech believes this information, used together with the GAAP financial information, will help investors to evaluate its current period performance, outlook and trends in its business. With respect to the Company’s outlook for non-GAAP operating income, most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Therefore, no reconciliation to the GAAP amounts has been provided for the Fiscal Year 2025 non-GAAP operating income outlook.

Public Dissemination of Certain Information

Recordings of Logitech’s earnings videoconferences and certain events Logitech participates in or hosts, with members of the investment community are posted on the company’s investor relations website at https://ir.logitech.com. Additionally, Logitech provides notifications of news or announcements regarding its operations and financial performance, including its filings with the Securities and Exchange Commission (SEC), investor events, and press and earnings releases as part of its investor relations website. Logitech intends to use its investor relations website as means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Logitech’s corporate governance information also is available on its investor relations website.

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About Logitech

Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating, gaming and streaming. As the point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find Logitech and its other brands, including Logitech G, at www.logitech.com or company blog.

# # #

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three and nine months ended December 31, 2024, Fiscal Year 2025 outlook for sales and non-GAAP operating income, opportunities for growth, and related assumptions. The forward-looking statements in this press release are subject to risks and uncertainties that could cause Logitech’s actual results and events to differ materially from those anticipated in these forward-looking statements, including, without limitation: macroeconomic and geopolitical conditions and other factors and their impact, for example inflation, interest rate and foreign currency fluctuations, changes in fiscal policies, geopolitical conflicts, low economic growth in certain regions, and uncertainty in consumer and enterprise demand; our expectations regarding our expense discipline efforts, including the timing thereof; changes in secular trends that impact our business; if our product offerings, marketing activities and investment prioritization decisions do not result in the sales, profitability or profitability growth we expect, or when we expect it; if we fail to innovate and develop new products in a timely and cost-effective manner for our new and existing product categories; issues relating to development and use of artificial intelligence; if we do not successfully execute on our growth opportunities or our growth opportunities are more limited than we expect; the effect of demand variability, supply shortages and other supply chain challenges; the effect of logistics challenges, including disruptions in logistics; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our sales, gross margins and profitability; if we are not able to maintain and enhance our brands; if our products and marketing strategies fail to separate our products from competitors’ products; if we do not efficiently manage our spending; our expectations regarding our restructuring efforts, including the timing thereof; if there is a deterioration of business and economic conditions in one or more of our sales regions or product categories, or significant fluctuations in exchange rates; changes in trade regulations, policies and agreements and the imposition of tariffs that affect our products or operations, including potential new tariffs that may be imposed on U.S. imports and our ability to mitigate; if we do not successfully execute on strategic acquisitions and investments; risks associated with acquisitions; and the effect of changes to our effective income tax rates. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Logitech’s periodic filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the fiscal year ended March 31, 2024, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and other reports filed with the SEC, available at www.sec.gov, under the caption Risk Factors and elsewhere. Logitech does not undertake any obligation to update any forward-looking statements to reflect new information or events or circumstances occurring after the date of this press release.

Note that unless noted otherwise, comparisons are year over year.

Logitech and other Logitech marks are trademarks or registered trademarks of Logitech Europe S.A. and/or its affiliates in the U.S. and other countries. All other trademarks are the property of their respective owners. For more information about Logitech and its products, visit the company’s website at www.logitech.com.

(LOGIIR)

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LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
						Three months ended December 31,												Nine months ended December 31,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS						2024						2023						2024						2023
Net sales						$	1,340,294					$	1,255,473					$	3,544,545					$	3,286,980
Cost of goods sold						763,403						726,252						2,010,411						1,937,367
Amortization of intangible assets						2,450						2,441						7,344						8,569
Gross profit						574,441						526,780						1,526,790						1,341,044
Operating expenses:
Marketing and selling						217,048						189,175						615,816						544,716
Research and development						77,973						72,704						229,485						211,822
General and administrative						42,117						39,711						123,748						116,546
Amortization of intangible assets and acquisition-related costs						2,637						2,276						8,065						8,279
Restructuring charges, net						110						839						725						2,562
Total operating expenses						339,885						304,705						977,839						883,925
Operating income						234,556						222,075						548,951						457,119
Interest income						12,176						12,826						42,603						34,508
Other income (expense), net						(1,524)						189						(2,889)						(13,827)
Income before income taxes						245,208						235,090						588,665						477,800
Provision for (benefit from) income taxes						45,061						(9,594)						101,202						33,272
Net income						$	200,147					$	244,684					$	487,463					$	444,528
Net income per share:
Basic						$	1.33					$	1.57					$	3.20					$	2.82
Diluted						$	1.32					$	1.55					$	3.18					$	2.80
Weighted average shares used to compute net income per share:
Basic						150,647						155,933						152,127						157,568
Diluted						151,895						157,440						153,506						158,843

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LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
						December 31,						March 31,
CONDENSED CONSOLIDATED BALANCE SHEETS						2024						2024
Current assets:
Cash and cash equivalents						$	1,502,832					$	1,520,842
Accounts receivable, net						648,230						541,715
Inventories						483,569						422,513
Other current assets						139,523						146,270
Total current assets						2,774,154						2,631,340
Non-current assets:
Property, plant and equipment, net						109,547						116,589
Goodwill						461,183						461,978
Other intangible assets, net						29,161						44,603
Other assets						357,515						350,194
Total assets						$	3,731,560					$	3,604,704
Current liabilities:
Accounts payable						$	578,951					$	448,627
Accrued and other current liabilities						715,267						637,262
Total current liabilities						1,294,218						1,085,889
Non-current liabilities:
Income taxes payable						129,497						112,572
Other non-current liabilities						205,027						172,590
Total liabilities						1,628,742						1,371,051
Shareholders’ equity:
Registered shares, CHF 0.25 par value Issued shares: 168,994 and 173,106 at December 31, 2024 and March 31, 2024, respectively						29,432						30,148
Additional paid-in capital						95,162						63,524
Shares in treasury, at cost — 19,555 and 19,243 at December 31, 2024 and March 31, 2024, respectively						(1,381,949)						(1,351,336)
Retained earnings						3,494,495						3,602,519
Accumulated other comprehensive loss						(134,322)						(111,202)
Total shareholders’ equity						2,102,818						2,233,653
Total liabilities and shareholders’ equity						$	3,731,560					$	3,604,704

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LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
						Three months ended December 31,												Nine months ended December 31,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS						2024						2023						2024						2023
Cash flows from operating activities:
Net income						$	200,147					$	244,684					$	487,463					$	444,528
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation						15,075						14,739						44,178						48,874
Amortization of intangible assets						5,087						5,074						15,258						16,583
Loss on investments						119						604						1,718						12,213
Share-based compensation expense						26,193						20,613						76,067						64,192
Deferred income taxes						2,163						(20,623)						18,652						(9,515)
Other						73						236						130						336
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net						(46,366)						(11,424)						(127,934)						(46,786)
Inventories						26,353						91,600						(67,554)						237,969
Other assets						7,175						(8,301)						9,416						3,698
Accounts payable						28,472						32,361						136,848						120,383
Accrued and other liabilities						106,379						73,389						118,659						13,536
Net cash provided by operating activities						370,870						442,952						712,901						906,011
Cash flows from investing activities:
Purchases of property, plant and equipment						(14,227)						(10,854)						(43,340)						(45,585)
Acquisitions, net of cash acquired						—						—						—						(14,138)
Purchases of deferred compensation investments						(2,202)						(5,345)						(5,802)						(7,893)
Proceeds from sales of deferred compensation investments						2,659						5,571						4,958						8,193
Other investing activities						(261)						(50)						(1,173)						(406)
Net cash used in investing activities						(14,031)						(10,678)						(45,357)						(59,829)
Cash flows from financing activities:
Payment of cash dividends						—						—						(207,853)						(182,305)
Payment of contingent consideration for business acquisition						—						—						(1,245)						(5,002)
Purchases of registered shares						(200,137)						(187,834)						(463,322)						(376,775)
Proceeds from exercises of stock options and purchase rights						—						—						20,235						15,319
Tax withholdings related to net share settlements of restricted stock units						(1,008)						(2,372)						(22,251)						(28,596)
Other financing activities						—						—						(1,663)						(1,116)
Net cash used in financing activities						(201,145)						(190,206)						(676,099)						(578,475)
Effect of exchange rate changes on cash and cash equivalents						(16,138)						6,678						(9,455)						(4,080)
Net increase (decrease) in cash and cash equivalents						139,556						248,746						(18,010)						263,627
Cash and cash equivalents, beginning of the period						1,363,276						1,163,904						1,520,842						1,149,023
Cash and cash equivalents, end of the period						$	1,502,832					$	1,412,650					$	1,502,832					$	1,412,650

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LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION						Three months ended December 31,																		Nine months ended December 31,
NET SALES						2024						2023						Change						2024						2023						Change
Net sales by product category:
Gaming (1)						$	466,715					$	409,043					14		%				$	1,076,660					$	957,576					12		%
Keyboards & Combos						236,748						229,432						3						662,017						605,201						9
Pointing Devices						217,045						206,180						5						602,927						572,310						5
Video Collaboration						176,053						169,522						4						482,755						461,257						5
Webcams						84,419						85,851						(2)						237,572						249,273						(5)
Tablet Accessories						77,433						64,239						21						241,586						198,252						22
Headsets						45,886						41,762						10						137,038						123,023						11
Other (2)						35,995						49,444						(27)						103,990						120,088						(13)
Total Net Sales						$	1,340,294					$	1,255,473					7		%				$	3,544,545					$	3,286,980					8		%

(1) Gaming includes streaming services revenue generated by Streamlabs.

(2) Other primarily consists of mobile speakers and PC speakers.

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LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION						Three months ended December 31,												Nine months ended December 31,
GAAP TO NON-GAAP RECONCILIATION (A)						2024						2023						2024						2023
Gross profit - GAAP						$	574,441					$	526,780					$	1,526,790					$	1,341,044
Share-based compensation expense						2,173						2,189						8,673						6,066
Amortization of intangible assets						2,450						2,441						7,344						8,569
Gross profit - Non-GAAP						$	579,064					$	531,410					$	1,542,807					$	1,355,679
Gross margin - GAAP						42.9		%				42.0		%				43.1		%				40.8		%
Gross margin - Non-GAAP						43.2		%				42.3		%				43.5		%				41.2		%
Operating expenses - GAAP						$	339,885					$	304,705					$	977,839					$	883,925
Less: Share-based compensation expense						24,020						18,424						67,394						58,126
Less: Amortization of intangible assets and acquisition-related costs						2,637						2,276						8,065						8,279
Less: Restructuring charges, net						110						839						725						2,562
Operating expenses - Non-GAAP						$	313,118					$	283,166					$	901,655					$	814,958
% of net sales - GAAP						25.4		%				24.3		%				27.6		%				26.9		%
% of net sales - Non-GAAP						23.4		%				22.6		%				25.4		%				24.8		%
Operating income - GAAP						$	234,556					$	222,075					$	548,951					$	457,119
Share-based compensation expense						26,193						20,613						76,067						64,192
Amortization of intangible assets and acquisition-related costs						5,087						4,717						15,409						16,848
Restructuring charges, net						110						839						725						2,562
Operating income - Non-GAAP						$	265,946					$	248,244					$	641,152					$	540,721
% of net sales - GAAP						17.5		%				17.7		%				15.5		%				13.9		%
% of net sales - Non-GAAP						19.8		%				19.8		%				18.1		%				16.5		%
Net income - GAAP						$	200,147					$	244,684					$	487,463					$	444,528
Share-based compensation expense						26,193						20,613						76,067						64,192
Amortization of intangible assets and acquisition-related costs						5,087						4,717						15,409						16,848
Restructuring charges, net						110						839						725						2,562
Loss on investments						119						604						1,718						12,213
Non-GAAP income tax adjustment						9,834						(29,963)						18,820						(22,033)
Net income - Non-GAAP						$	241,490					$	241,494					$	600,202					$	518,310
Net income per share:
Diluted - GAAP						$	1.32					$	1.55					$	3.18					$	2.80
Diluted - Non-GAAP						$	1.59					$	1.53					$	3.91					$	3.26
Shares used to compute net income per share:
Diluted - GAAP and Non-GAAP						151,895						157,440						153,506						158,843

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LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION						Three months ended December 31,												Nine months ended December 31,
SHARE-BASED COMPENSATION EXPENSE						2024						2023						2024						2023
Share-based Compensation Expense
Cost of goods sold						$	2,173					$	2,189					$	8,673					$	6,066
Marketing and selling						11,813						8,878						34,133						28,623
Research and development						5,043						4,421						15,849						13,568
General and administrative						7,164						5,125						17,412						15,935
Total share-based compensation expense						26,193						20,613						76,067						64,192
Income tax benefit						(4,523)						(3,391)						(16,901)						(11,257)
Total share-based compensation expense, net of income tax benefit						$	21,670					$	17,222					$	59,166					$	52,935

*Note: These preliminary results for the three and nine months ended December 31, 2024 are subject to adjustments, including subsequent events that may occur through the date of filing our Quarterly Report on Form 10-Q.

(A) Non-GAAP Financial Measures

To supplement our condensed consolidated financial results prepared in accordance with GAAP, we use a number of financial measures, both GAAP and non-GAAP, in analyzing and assessing our overall business performance, for making operating decisions and for forecasting and planning future periods. We consider the use of non-GAAP financial measures helpful in assessing our current financial performance, ongoing operations and prospects for the future as well as understanding financial and business trends relating to our financial condition and results of operations.

While we use non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance and to provide incremental insight into the underlying factors and trends affecting both our performance and our cash-generating potential, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides useful supplemental data that, while not a substitute for GAAP financial measures, can offer insight in the review of our financial and operational performance and enables investors to more fully understand trends in our current and future performance. In assessing our business during the quarter ended December 31, 2024 and prior periods presented, we excluded items in the following general categories, each of which are described below:

Share-based compensation expense. We believe that providing non-GAAP measures excluding share-based compensation expense, in addition to the GAAP measures, allows for a more transparent comparison of our financial results from period to period. We prepare and maintain our budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measure. Further, companies use a variety of types of equity awards as well as a variety of methodologies, assumptions and estimates to determine share-based compensation expense. We believe that excluding share-based compensation expense enhances our ability and the ability of investors to understand the impact of non-cash share-based compensation on our operating results and to compare our results against the results of other companies.

Amortization of intangible assets. We incur intangible asset amortization expense, primarily in connection with our acquisitions of various businesses and technologies. The amortization of purchased intangibles varies depending on the level of acquisition activity. We exclude these various charges in budgeting, planning and forecasting future periods and we believe that providing the non-GAAP measures excluding these various non-cash charges, as well as the GAAP measures, provides additional insight when comparing our gross profit, operating expenses, and financial results from period to period.

Acquisition-related costs. We incurred expenses and credits in connection with our acquisitions which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition-related costs include certain incremental expenses incurred to effect a business combination. We believe that providing the non-GAAP measures excluding these costs, as well as the GAAP measures, assists our investors because such costs are not reflective of our ongoing operating results.

Restructuring charges (credits), net. These charges (credits) are associated with restructuring plans, and will vary based on the initiatives in place during any given period. Restructuring charges may include costs related to employee

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terminations, facility closures and early cancellation of certain contracts as well as other costs resulting from our restructuring initiatives. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such charges (credits) are not reflective of our ongoing operating results.

Loss (gain) on investments. We recognize losses (gains) related to our investments in various companies, which vary depending on the operational and financial performance of the companies in which we invest. These amounts include our losses (earnings) on equity method investments, investment impairments and losses (gains) resulting from sales or other events related to our investments. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such losses (gains) are not reflective of our ongoing operations.

Non-GAAP income tax adjustment. Non-GAAP income tax adjustment primarily measures the income tax effect of non-GAAP adjustments excluded above as well as the income tax impact of non-recurring deferred taxes, tax settlements, and other non-routine tax events, the determination of which is based upon the nature of the underlying items. For the three and nine months ended December 31, 2023, non-GAAP income tax adjustment included the tax benefit from a remeasurement of the tax basis of goodwill under the Swiss Federal Act on Tax Reform and AHV Financing (“TRAF”) during the three months ended December 31, 2023.

Each of the non-GAAP financial measures described above, and used in this press release, should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP. Further, investors are cautioned that there are inherent limitations associated with the use of each of these non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in the Company’s financial results for the foreseeable future. We compensate for these limitations by providing specific information in the reconciliation included in this press release regarding the GAAP amounts excluded from the non-GAAP financial measures. In addition, as noted above, we evaluate the non-GAAP financial measures together with the most directly comparable GAAP financial information.

Additional Supplemental Financial Information - Constant Currency

In addition, Logitech presents percentage sales growth in constant currency to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period’s average exchange rate for that currency and comparing that to current period sales.