Confidence in Logitech’s Ability to Execute
In the earnings report announced this morning, Logitech said it had witnessed sustainable growth trends in remote work, video collaboration, esports, and digital content creation.
Therefore, the tech company has raised its full-year guidance to $1.1 billion in non-GAAP operating income, up from the $1.05 the company previously expected. The updated projections are based on a growth of 63% in business sales.
“We’re delivering an extremely strong fiscal year. Several years ago, we set out to become a design company and positioned our business against long-term growth trends in remote work, video collaboration, esports, and digital content creation. These trends have accelerated over the course of the fiscal year and have seen a coming of age for Logitech,” said Bracken Darrell, the president and chief executive officer (CEO) of the tech company.
“Looking ahead, we see strong growth opportunities and will continue to invest behind these secular trends, as well as others where we have opportunities to lead. We’re committed to sustainability and positively impacting the communities in which we operate.”
The technology business feels so strongly about its business model that it also announced 2022 guidance. The company is expecting to record non-GAAP operating income between $750 million and $800 million.
The provided outlook represents “confidence in its ability to execute following an exceptional Fiscal Year 2021.” Moreover, the company has upgraded the long-term business sales growth projections from “high-single digits” to between 8% and 10%.
The non-GAAP gross margin target soared to 39% to 44%, up from the prior 36% to 40%. Similarly, the non-GAAP operating margin target has been hiked to between 14% and 17%, up from 11% to 14%.
"The outlook increase is particularly surprising in the longer term, as it is relatively substantial," Zuercher Kantonalbank analysts wrote in a note.
In January, Logitech reported its Q3 sales soared 85% to $1.67 billion while operating income tripled amid the pandemic-fueled surge in demand for tech equipment.
Logitech stock price is trading about 1% higher in Switzerland today after initially soaring more than 3%. Last month, shares of the business set an all-time high after gaining more than 90% in 2020.
Logitech, a Switzerland-based tech company, raised the full-year guidance for 2021 and also offered a surprising 2022 outlook.
About the Author
Avi Ben Ezra is the CTO and Co-founder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.