Q3 Fiscal Year 2023 Financial Results slide image

Q3 Fiscal Year 2023 Financial Results

KEY MESSAGES - Q3'23 Q3'23 net sales declined 17% (CC) to $1.27B, as the industry continues to operate in a volatile macro environment. Despite declines in year-over-year net sales, we grew market share in Gaming, Video Collaboration, Pointing Devices and Tablet Keyboards in the quarter¹. In the quarter we experienced soft demand from our Enterprise and Consumer customers, as well as a more promotional environment for Consumers. We continue to operate the business with discipline, reducing our total operating expenses 23%, which was greater than the year-over-year reduction in revenue. Gross margin was 37.9%, down versus Q3'22. Pressures due to unfavorable currency movements, higher promotional environment and inflation were partially offset by price increases and less reliance on expedited shipping. Operating income was $204M, down 32% year-over-year, reflecting lower demand and gross margin pressure partially offset by reductions in operating expense. Cash flow from operations was $280M, ending cash balance was $1,036M and we returned $90M to shareholders through share repurchases in the quarter. Note: Results are non-GAAP, except for cash flow from operations. Comparisons are Y/Y and in constant currency unless otherwise specified. ¹ Market share data through November 2022. 8
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