TRAEGER, INC., 10-K filed on 3/8/2024
Annual Report
v3.24.0.1
Cover - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Mar. 01, 2024
Jun. 30, 2023
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-40694    
Entity Registrant Name Traeger, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 82-2739741    
Entity Address, Address Line One 533 South 400 West    
Entity Address, City or Town Salt Lake City    
Entity Address, State or Province UT    
Entity Address, Postal Zip Code 84101    
City Area Code 801    
Local Phone Number 701-7180    
Title of 12(b) Security Common Stock, $0.0001 par value per share    
Trading Symbol COOK    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company true    
Entity Ex Transition Period false    
ICFR Auditor Attestation Flag false    
Entity Shell Company false    
Entity Public Float     $ 137.4
Entity Common Stock, Shares Outstanding   127,940,759  
Documents Incorporated by Reference
Portions of the registrant’s definitive Proxy Statement relating to its 2024 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year ended December 31, 2023 are incorporated herein by reference in Part III.
   
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Amendment Flag false    
Entity Central Index Key 0001857853    
Document Financial Statement Error Correction [Flag] false    
v3.24.0.1
Audit Information
12 Months Ended
Dec. 31, 2023
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location Salt Lake City, Utah
Auditor Firm ID 42
v3.24.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Current Assets    
Cash and cash equivalents $ 29,921 $ 39,055
Restricted cash 0 12,500
Accounts receivable, net 59,938 42,050
Inventories 96,175 153,471
Prepaid expenses and other current assets 30,346 27,162
Total current assets 216,380 274,238
Property, plant, and equipment, net 42,591 55,510
Operating lease right-of-use assets 48,188 13,854
Goodwill 74,725 74,725
Intangible assets, net 470,546 512,858
Other long-term assets 8,329 15,530
Total assets 860,759 946,715
Current Liabilities    
Accounts payable 33,280 29,841
Accrued expenses 52,941 52,295
Line of credit 28,400 11,709
Current portion of notes payable 250 250
Current portion of operating lease liabilities 3,608 5,185
Current portion of contingent consideration 15,000 12,157
Other current liabilities 495 1,470
Total current liabilities 133,974 112,907
Notes payable, net of current portion 397,300 468,108
Operating lease liabilities, net of current portion 29,142 9,001
Contingent consideration, net of current portion 0 10,590
Deferred tax liability 8,236 10,370
Other non-current liabilities 759 870
Total liabilities 569,411 611,846
Commitments and contingencies (see Note 14)
Stockholders' equity    
Preferred stock, $0.0001 par value; 25,000,000 shares authorized and no shares issued or outstanding as of December 31, 2023 and 2022 0 0
Common stock value 13 12
Additional paid-in capital 935,272 882,069
Accumulated deficit (654,877) (570,475)
Accumulated other comprehensive income 10,940 23,263
Total stockholders' equity 291,348 334,869
Total liabilities and stockholders' equity $ 860,759 $ 946,715
v3.24.0.1
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Preferred stock par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock authorized (in shares) 25,000,000 25,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common stock par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock authorized (in shares) 1,000,000,000 1,000,000,000
Common stock outstanding (in shares) 125,865,303 122,624,414
v3.24.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement [Abstract]      
Revenue $ 605,882,000 $ 655,901,000 $ 785,545,000
Cost of revenue 382,325,000 427,129,000 484,780,000
Gross profit 223,557,000 228,772,000 300,765,000
Operating expense:      
Sales and marketing 108,727,000 130,688,000 165,180,000
General and administrative 129,800,000 166,824,000 158,555,000
Amortization of intangible assets 35,554,000 35,554,000 34,379,000
Change in fair value of contingent consideration 4,698,000 10,002,000 3,800,000
Goodwill impairment 0 222,322,000 0
Restructuring costs 225,000 9,324,000 0
Total operating expense 279,004,000 574,714,000 361,914,000
Loss from operations (55,447,000) (345,942,000) (61,149,000)
Other income (expense):      
Interest expense (31,275,000) (27,885,000) (26,646,000)
Loss on extinguishment of debt 0 0 (5,185,000)
Other income (expense), net 4,305,000 (7,127,000) 2,702,000
Total other expense (26,970,000) (35,012,000) (29,129,000)
Loss before provision for income taxes (82,417,000) (380,954,000) (90,278,000)
Provision for income taxes 1,985,000 1,186,000 1,489,000
Net loss $ (84,402,000) $ (382,140,000) $ (91,767,000)
Net income (loss) per share - basic (in dollars per share) $ (0.68) $ (3.19) $ (0.82)
Net income (loss) per share - diluted (in dollars per share) $ (0.68) $ (3.19) $ (0.82)
Weighted average common shares outstanding - basic (in shares) 123,726,252 119,698,776 112,374,669
Weighted average common shares outstanding - diluted (in shares) 123,726,252 119,698,776 112,374,669
Other comprehensive income (loss):      
Foreign currency translation adjustments $ 129,000 $ (61,000) $ (86,000)
Change in cash flow hedge (2,088,000) 23,410,000 0
Amortization of dedesignated cash flow hedge (10,364,000) 0 0
Total other comprehensive income (loss) (12,323,000) 23,349,000 (86,000)
Comprehensive loss $ (96,725,000) $ (358,791,000) $ (91,853,000)
v3.24.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER’S AND SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Units
Common Stock
Member's Capital
Additional Paid-in Capital
Accumulated Deficit
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss)
Accumulated Foreign Currency Adjustment Attributable to Parent
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Ending balance (in shares)       0            
Ending balance       $ 0            
Beginning balance (in shares) at Dec. 31, 2020     108,724,422              
Beginning balance at Dec. 31, 2020 $ 474,488   $ 0   $ 571,038 $ 0 $ (96,550)   $ 0  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Effect of reorganization transaction (in shares)     (108,724,422) 108,724,387            
Effect of reorganization transaction 0     $ 11 (571,038) 571,027        
Issuance of common shares in IPO, net of issuance costs (in shares)       8,823,529            
Issuance of common shares in IPO, net of issuance costs 142,275     $ 1   142,274        
Stock-based compensation 81,112         81,112        
Net loss (91,767)           (91,767)      
Foreign currency translation adjustments (86)                 $ (86)
Change in cash flow hedge 0                  
Amortization of dedesignated cash flow hedge 0                  
Ending balance (in shares) at Dec. 31, 2021     0              
Ending balance at Dec. 31, 2021 606,022   $ 0   0 794,413 (188,317)   (86)  
Ending balance (Accounting Standards Update 2016-02) at Dec. 31, 2021   $ (18)           $ (18)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Ending balance (in shares)       117,547,916            
Ending balance       $ 12            
Stock-based compensation 87,697         87,697        
Issuance of common stock under stock plan (in shares)       5,082,024            
Shares withheld related to net share settlement       (5,526)            
Shares withheld related to net share settlement (41)         (41)        
Net loss (382,140)           (382,140)      
Foreign currency translation adjustments (61)                 (61)
Change in cash flow hedge 23,410                 23,410
Amortization of dedesignated cash flow hedge 0                  
Ending balance (in shares) at Dec. 31, 2022     0              
Ending balance at Dec. 31, 2022 334,869   $ 0   0 882,069 (570,475)   23,263  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Ending balance (in shares)       122,624,414            
Ending balance 334,869     $ 12            
Issuance of common shares in IPO, net of issuance costs 1     $ 1            
Stock-based compensation 53,203         53,203        
Issuance of common stock under stock plan (in shares)       3,240,889            
Net loss (84,402)           (84,402)      
Foreign currency translation adjustments 129                 129
Change in cash flow hedge (2,088)                 (2,088)
Amortization of dedesignated cash flow hedge (10,364)                 $ (10,364)
Ending balance (in shares) at Dec. 31, 2023     0              
Ending balance at Dec. 31, 2023 291,348   $ 0   $ 0 $ 935,272 $ (654,877)   $ 10,940  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Ending balance (in shares)       125,865,303            
Ending balance $ 291,348     $ 13            
v3.24.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (84,402,000) $ (382,140,000) $ (91,767,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation of property, plant, and equipment 15,011,000 13,821,000 9,150,000
Amortization of intangible assets 42,770,000 42,726,000 38,350,000
Amortization of deferred financing costs 2,016,000 1,957,000 2,523,000
Loss on disposal of property, plant, and equipment 2,188,000 1,140,000 274,000
Deferred income taxes (2,133,000) (1,303,000) (939,000)
Loss on extinguishment of debt 0 0 5,185,000
Stock-based compensation expense 53,203,000 87,697,000 81,112,000
Bad debt expense (154,000) (175,000) 468,000
Unrealized loss on derivative contracts 3,997,000 2,440,000 4,821,000
Amortization of dedesignated cash flow hedge (10,364,000) 0 0
Change in fair value of contingent consideration 4,478,000 6,722,000 3,800,000
Goodwill impairment 0 222,322,000 0
Restructuring costs 0 2,046,000 0
Non-cash operating lease costs 188,000 331,000 0
Other non-cash adjustments 77,000 3,000 0
Change in operating assets and liabilities:      
Accounts receivable, net (17,735,000) 51,052,000 (26,365,000)
Inventories 57,295,000 (11,931,000) (67,826,000)
Prepaid expenses and other current assets (4,199,000) (3,046,000) (5,787,000)
Other non-current assets (568,000) 78,000 (681,000)
Accounts payable and accrued expenses 2,374,000 (28,211,000) 19,182,000
Other non-current liabilities 0 (435,000) 73,000
Net cash provided by (used in) operating activities 64,042,000 5,094,000 (28,427,000)
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchase of property, plant, and equipment (19,946,000) (18,398,000) (22,479,000)
Capitalization of patent costs (460,000) (506,000) (563,000)
Proceeds from sale of property, plant, and equipment 3,028,000 0 0
Business combination, net of cash acquired 0 0 (56,855,000)
Net cash used in investing activities (17,378,000) (18,904,000) (79,897,000)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from line of credit 115,900,000 179,000,000 118,000,000
Repayments on line of credit (171,209,000) (145,429,000) (67,862,000)
Proceeds from long-term debt 0 25,000,000 510,000,000
Payment of deferred financing costs 0 0 (8,601,000)
Repayments of long-term debt (250,000) (125,000) (579,921,000)
Principal payments on finance lease liabilities (514,000) (505,000) (382,000)
Payments of acquisition related contingent consideration (12,225,000) (9,275,000) 0
Taxes paid related to net share settlement of equity awards 0 (41,000) 0
Proceeds from initial public offering, net of issuance costs 0 0 142,274,000
Net cash provided by (used in) financing activities (68,298,000) 48,625,000 113,508,000
Net increase (decrease) in cash, cash equivalents, and restricted cash (21,634,000) 34,815,000 5,184,000
Cash, cash equivalents, and restricted cash at beginning of period 51,555,000 16,740,000 11,556,000
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD 29,921,000 51,555,000 16,740,000
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:      
Cash paid during the period for interest 40,060,000 25,138,000 23,444,000
Cash paid for income taxes 3,062,000 2,844,000 1,654,000
NON-CASH FINANCING AND INVESTING ACTIVITIES      
Equipment purchased under finance leases 460,000 1,116,000 645,000
Property, plant, and equipment included in accounts payable and accrued expenses $ 3,975,000 $ 2,134,000 $ 8,586,000
v3.24.0.1
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Nature of Operations – Traeger, Inc. and its wholly owned Subsidiaries (collectively “Traeger” or the “Company”) design, source, sell, and support wood pellet fueled barbecue grills sold to retailers, distributors, and direct to consumers. The Company produces and sells the pellets used to fire the grills and also sells Traeger-branded rubs, spices, and sauces, as well as grill accessories (including P.A.L. Pop-And-Lock accessory rails, grill covers, liners, tools, MEATER smart thermometers, apparel and other ancillary items). A significant portion of the Company’s sales are generated from customers throughout the United States (“U.S.”), and the Company continues to develop distribution in Canada and Europe. The Company’s headquarters are in Salt Lake City, Utah.
In July 2021, the Company effected a forward split of its 10 common units into 108,724,422 common units. All unit, per unit and related information presented in the accompanying consolidated financial statements have been retroactively adjusted, where applicable, to reflect the impact of the split of common units.
Traeger, Inc. was incorporated in July 2021 in connection with the conversion of TGPX Holdings I LLC from a Delaware limited liability company into a Delaware corporation at the time of the Company's initial public offering ("IPO") and has no material assets and liabilities or standalone operations other than its ownership in its consolidated subsidiaries. TGPX Holdings II LLC is the only direct subsidiary of Traeger, Inc. TGPX Holdings II LLC is a holding company with no other operations, cash flows, material assets or liabilities other than the equity interest in TGP Holdings III LLC. Pursuant to the statutory corporate conversion (the "Corporate Conversion"), all of the outstanding limited liability company interests of TGPX Holdings I LLC were converted into shares of common stock of Traeger, Inc., and TGP Holdings LP (the “Partnership”) became the holder of such shares of common stock of Traeger, Inc. In connection with the Corporate Conversion, the Partnership liquidated and distributed these shares of common stock to the holders of partnership interests in the Partnership in direct proportion to their respective interests in the Partnership based upon the value of Traeger, Inc. at the time of the IPO, with a value implied by the initial public offering price of the shares of common stock sold in the IPO. Based on the IPO price of $18.00 per share, following the Partnership’s liquidation and distribution, including the elimination of any fractional shares resulting therefrom, and the Corporate Conversion, the Company had 108,724,387 shares of common stock outstanding immediately prior to the IPO.
Basis of Presentation and Principles of Consolidation – The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform with the current period’s presentation. The reclassifications did not have a significant impact on the accompanying consolidated financial statements.
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates – The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates and assumptions made by management that present the greatest amount of estimation uncertainty include the fair value of contingent consideration obligations, customer credits and returns, obsolete reserves, valuation and impairment of intangible assets including goodwill, unrealized positions on foreign currency derivatives and reserves for warranty. Actual results could differ from these estimates.
Cash and Cash Equivalents – The Company considers cash on deposit and short-term investments with remaining maturities at acquisition of three months or less to be cash and cash equivalents.
Restricted Cash – The Company considers cash to be restricted when withdrawal or general use is legally restricted. The restricted cash balance is associated with borrowings from the delayed draw term loan facility that are restricted in use and were drawn down to fund payments of contingent consideration associated with the acquisition of Apption Labs.
Concentrations – Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash in banks, trade accounts receivable and foreign currency contracts. Credit is extended to customers based on an evaluation of the
customer’s financial condition and collateral is not generally required in the Company’s sales transactions. Three customers that accounted for a significant portion of net sales are as follows for the fiscal periods indicated:
 December 31,
 202320222021
Customer A18 %14 %20 %
Customer B16 %16 %17 %
Customer C10 %15 %16 %
Concentrations of credit risk exist to the extent credit terms are extended with four large customers that account for a significant portion of our trade accounts receivables. As of December 31, 2023, there were four large customers A, B, C, and D that accounted for 37%, 11%, 6%, and 14% of the Company's trade accounts receivable as compared to 31%, 20%, 8%, and 4% as of December 31, 2022. A business failure on the part of any one the four customers could result in a material amount of exposure to the Company. No other single customer accounted for greater than 10% of the Company's trade accounts receivable as of December 31, 2023 and 2022. Additionally, no other single customer accounted for greater than 10% of the Company’s net sales for the years ended December 31, 2023, 2022 and 2021.
The Company’s sales to dealers and distributors located outside the United States are generally denominated in U.S. dollars. The Company does have sales to certain dealers located in the European Union, the United Kingdom and Canada which are denominated in Euros, British Pounds and Canadian Dollars, respectively.
The Company relies on a limited number of suppliers for its contract manufacturing of grills and accessories. A significant disruption in the operations of certain of these manufacturers, or in the transportation of parts and accessories would impact the production of the Company’s products for a substantial period of time, which could have a material adverse effect on the Company’s business, financial condition and results of operations.
Accounts Receivable, Net – The Company reports its accounts receivable based on the amount that is expected to be collected from its sales to customers. The accounts receivable balance is comprised of the amounts invoiced to customers and reduced by an estimated credit loss and a reserve for estimated returns, discounts and allowances. The Company estimates its credit losses over the contractual term of the receivable and establishes an allowance for credit losses based on historical experience, current available information, and expectations of future economic conditions. The Company mitigates credit loss risk from accounts receivable by assessing customers for credit worthiness, including ongoing credit evaluations and their payment trends. As the risk of loss is determined to be similar based on the credit risk factors, we aggregate receivables on a collective basis when assessing credit losses. Accounts receivable are uncollateralized customer obligations due under normal trade terms. Receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded to income when received. The Company estimates the reserve for returns, discounts and allowances based on historical experience, contractual terms and agreed upon arrangements.
Inventories – Inventories consist of finished goods, work-in-process and raw materials. Inventories are stated at the lower of cost or net realizable value, with cost for raw materials and finished goods stated as an approximate cost determined on the first-in first-out basis. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Assessments to value the inventory at the lower of the average cost to purchase the inventory, or the net realizable value of the inventory, are based upon assumptions about future demand, physical deterioration, changes in price levels and market conditions. As a result of the Company’s assessments, when the net realizable value of inventory is less than the carrying value, the inventory cost is written down to the net realizable value and the write down is recorded as a charge to cost of revenue. Inventories include indirect acquisition and production costs that are incurred to bring the inventories to their present condition and location. Inventories are recorded net of reserves for obsolescence. Once established, the original cost of the inventory less the related inventory reserve represents the new cost basis of such products.
Derivative Instruments – The Company is exposed to the impact of changes in foreign currency exchange rates, and benchmark interest rates. The Company uses foreign exchange option contracts for the purpose of economically hedging exposure to changes in currency fluctuations between the U.S. Dollar and the Chinese Renminbi, as well as a floating-to-fixed interest rate swap agreement to hedge a portion of the Company's variable rate debt. The Company accounts for these contracts in accordance with FASB ASC 815, Derivatives and Hedging, which requires that all derivatives be recognized at fair value in the accompanying consolidated balance sheets, and that corresponding gains and losses are recognized in other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss. The Company applies hedge
accounting to the interest rate swap agreement and does not apply hedge accounting to the foreign exchange option contracts. For details associated with the Company's dedesignated interest rate swap hedging relationship, see Note 8 – Derivatives.
Property, Plant, and Equipment – Property, plant, and equipment is stated at cost less accumulated depreciation and amortization. Additions and betterments to property, plant, and equipment that improve economic performance, extend the useful life, or improve the quality of units or services produced of the component asset are capitalized.
The Company does not depreciate amounts recorded for land. Depreciation and amortization on individual components of property is computed using the straight-line method over the estimated useful lives of the assets as follows:
 Years
Buildings15
Machinery and equipment
5-20
Leasehold improvementsShorter of useful lives or lease term
Office equipment and fixtures
2-10
Vehicles
2-10
Computer hardware and software
3-5
When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are derecognized from the respective accounts. The remaining carrying value along with any proceeds are considered and recognized as a gain or loss within general and administrative expense or selling and marketing expense in the accompanying consolidated statements of operations and comprehensive loss. The cost of maintenance and repairs are expensed as incurred.
The Company capitalizes costs for internal-use software incurred during the application development stage. Software costs related to preliminary project activities and post implementation activities are expensed as incurred. The Company capitalizes costs incurred for software purchases and certain costs related to website development. Capitalized costs related to internal-use software, software purchases and website development are amortized on a straight-line basis over the estimated useful life of the software, not to exceed three years. Capitalized costs less accumulated amortization are included within property, plant, and equipment, net on the accompanying consolidated balance sheets.
Leases – The Company primarily leases office space, vehicles, and equipment from third parties. The Company determines if a contract is a lease at inception. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The lease term begins on the commencement date, which is the date the Company takes possession of the asset, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Certain of the Company’s leases contain renewal options for varying periods, which can be exercised both by mutual agreement and at the Company’s sole discretion. Leases are classified as operating or finance leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. Where leases include options to purchase the leased asset at the end of the lease term, this is assessed as a part of the Company’s lease classification determination. As of December 31, 2023, the Company’s leases have remaining lease terms ranging from 1 month to 14 years.
Under ASC 842, the Company recognizes a right-of-use (“ROU”) asset and lease liability to account for its leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized on the commencement date based on the present value of lease payments over the noncancellable lease term. ROU assets are based on the lease liability and are increased by prepaid lease payments and decreased by lease incentives received. Lease incentives are amortized through the lease asset as reductions of expense over the lease term. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities.
When lease agreements provide allowances for leasehold improvements, the Company assesses whether it is the owner of the leasehold improvements for accounting purposes. When the Company concludes that it is the owner, it capitalizes the leasehold improvement assets and recognizes the related depreciation expense on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset. Additionally, the Company recognizes the amounts of allowances to be received from the lessor as a reduction of the lease liability and the associated right of use asset. When the Company concludes that it is not the owner, the payments that the Company makes towards the leasehold improvements are capitalized and ultimately recognized within the ROU asset upon lease commencement. Amounts recorded within ROU asset are recognized as a component of straight-line rent expense over the term of the lease.
Leases typically contain rent escalations over the lease term. The Company recognizes expense for these leases on a straight-line basis over the lease term. Some of the leases include rent escalations based on inflation indexes. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. Certain leases require the Company to pay taxes, insurance, maintenance and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the ROU assets and lease liabilities to the extent they are variable in nature. These variable lease costs are recognized as a variable lease expense when incurred.
Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term. The depreciable life of the ROU assets and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option.
The Company uses the rate implicit in the lease, when known, to discount future lease payments based on the information available on the commencement date for each lease. If the rate implicit in the lease is not known, the Company uses its incremental borrowing rate as the discount rate. The determination of the incremental borrowing rate requires judgment and is determined using the Company’s current secured borrowing rate, considering various factors aligned with the lease including total lease payments and lease term.
The Company subleases portions of its previous headquarters in three separate phases until the lease expires in 2026. Income from the subleased property is recognized on a straight-line basis and presented as a reduction of costs, allocated against general and administrative expenses in the Company’s accompanying consolidated statements of operations and comprehensive loss. Sublease income for the years ended December 31, 2023, 2022 and 2021 were immaterial.
Deferred Financing Costs – Costs incurred in connection with long-term debt financing are deferred and reflected net of notes payable and are amortized to interest expense utilizing the effective-interest method over the term of the related financing. Costs incurred in connection with the refinancing to the delayed draw, revolving credit facility and the amendments to the Receivables Financing Agreement are capitalized and recorded as other long-term assets on the accompanying consolidated balance sheets. These costs are being amortized to interest expense on a straight-line basis over the term of each respective credit facility.
Intangible Assets – Finite-lived intangible assets are initially recorded at fair value and presented net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company is currently amortizing acquired intangible assets, including customer relationships, distributor relationships, non-compete arrangements, business trademarks and technology, over periods ranging between 2.5 years and 25 years. Amortization related to acquired patent technology and to capitalized patent costs are recorded as a component of cost of revenue and amortization related to acquired business trademarks, customer relationships, distributor relationships, and non-compete arrangements are recorded in amortization of intangible assets in the accompanying consolidated statement of operations and comprehensive loss.
Goodwill – Goodwill represents the excess of consideration transferred over the fair value of tangible and identifiable intangible net assets acquired and the liabilities assumed in a business combination. Substantially all of the Company’s goodwill was recognized in the purchase price allocations when the Company was acquired in 2017 and when Apption Labs was acquired in July 2021, with smaller incremental amounts recognized in subsequent business combinations. Goodwill is not amortized, but is tested for impairment at the reporting unit level annually or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying amount. In conducting the impairment test, the Company first reviews qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The Company currently operates as a single reporting unit under the guidance in Topic 350, Intangibles - Goodwill and Other.
When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more likely than not that carrying value exceeds its fair value, the Company performs a quantitative goodwill impairment test. Under the quantitative goodwill impairment test, if the Company's reporting unit’s carrying amount exceeds its fair value, it will record an impairment charge based on that difference.
To determine reporting unit fair value as part of the quantitative test, we use a weighting of fair values derived from the income approach and the market approach. Under the income approach, the Company projects the future cash flows and discount these cash flows to reflect their relative risk. The cash flows used are consistent with those the Company uses in its internal planning, which reflects actual business trends experienced and its long-term business strategy. Under the market approach, the Company uses the guideline company method to develop valuation multiples and compare its reporting unit to similar publicly traded companies.
In order to further validate the reasonableness of fair value as determined by the income and market approaches described above, a reconciliation to market capitalization is then performed by estimating a reasonable control premium and other market factors. Future changes in the judgments, assumptions and estimates that are used in the impairment testing for goodwill could result in significantly different estimates of fair value.
The Company conducts annual goodwill impairment tests in the fourth quarter of each fiscal year or whenever an indicator of impairment exist. For the annual impairment tests conducted in the fourth quarters of 2023 and 2022, the Company performed qualitative assessments of goodwill and determined that it was more likely than not that the fair value of goodwill was greater than its carrying value. Therefore the quantitative impairment test was not performed and no impairment of goodwill was recorded in connection with the annual impairment tests.
However, the Company identified impairment indicators during the second and third quarters of 2022 and performed interim goodwill quantitative impairment assessments. As a result, the carrying value of the single reporting unit exceeded its fair value, and the Company recorded $222.3 million of non-cash goodwill impairment charge during the fiscal year ended December 31, 2022. For details associated with the Company's interim goodwill impairment testing, see Note 11 – Goodwill and Intangibles.
Impairment of Assets – Long-lived assets, including property, plant, and equipment, operating right-of-use assets, and finite-lived intangible assets subject to amortization, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset or asset group. If impairment exists, the impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest levels for which there are identifiable cash flows that are largely independent of cash flows from other asset groups. The Company concluded there were no indicators of impairment identified at December 31, 2023 and 2022.
Fair Value of Financial Instruments – For financial assets and liabilities recorded at fair value on a recurring or a non-recurring basis, fair value is the price the Company would receive to sell an asset, or pay to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In the absence of such data, fair value is estimated using internal information consistent with what market participants would use in a hypothetical transaction. In determining fair value, observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. These two types of inputs create the following fair value hierarchy:
Level 1: Quoted prices for identical instruments in active markets.
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3: Significant inputs to the valuation model are unobservable.
The carrying amounts reported in the Company’s accompanying consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued expenses approximate their fair values due to the short-term nature of these instruments. The carrying amounts reported in the Company’s accompanying consolidated balance sheets for the variable rate Revolving Credit Facility (defined below) also approximate its fair value. The fair value of the fixed rate First Lien Term Loan Facility (defined below) is not readily determinable, because the information is not available. For details associated with the Company's fair value measurement of financial instruments, see Note 9 – Fair Value Measurements.
Contingent Consideration – The purchase consideration associated with the acquisition of Apption Labs Limited (together with its subsidiaries, "Apption Labs") includes contingent cash consideration payable to the sellers based on achievement of certain revenue, earnings, and successful product launch thresholds for fiscal years 2021, 2022 and 2023. The fair value of contingent consideration obligation is estimated based on the probability assessments with respect to the likelihood of achieving
the performance targets and discount rates consistent with the level of risk of achievement. The Company includes the fair value of this contingent obligation in current and non-current contingent consideration in the accompanying consolidated balance sheets.
At each reporting period, the Company revalues the contingent consideration obligation to its fair value and records increases and decreases in fair value in the change in fair value of contingent consideration in the accompanying consolidated statements of operations and comprehensive loss. Changes in the fair value of the contingent consideration obligation results from changes in discount periods and rates, and changes in probability assumptions with respect to the likelihood of achieving the performance targets. Based on the achievement of the fiscal year 2023 performance targets, the Company expects to pay $15.0 million during the first half of fiscal year 2024.
Revenue Recognition and Sales Returns and Allowances – The Company recognizes revenue at the amount to which it expects to be entitled when a contract exists with a customer that specifies the goods and services to be provided at an agreed upon sales price and when the performance obligation is satisfied. The performance obligation for most of the Company’s sales transactions is considered complete when control transfers, which is determined when products are shipped or delivered to the customer depending on the terms of the contract. Sales are made on normal and customary short-term credit terms or upon delivery of point-of-sale transactions.
Shipping charges billed to customers are included in net sales and related shipping costs are included in cost of sales. The company has elected to account for shipping and handling activities performed after control has been transferred to the customer as a fulfillment cost.
The Company enters into contractual arrangements with customers in the form of individual customer orders which specify the goods, quantity, pricing, and associated order terms. The Company does not have long-term contracts that are satisfied over time. Due to the nature of the contracts, no significant judgment exists in relation to the identification of the customer contract or satisfaction of the performance obligation. The Company expenses incremental costs of obtaining a contract due to the short-term nature of the contracts.
The Company has certain contractual programs and practices with customers that can give rise to elements of variable consideration such as customer cooperative advertising and volume incentive rebates. The company estimates the variable consideration using the most likely amount method based on sales and contractual rates with each customer and records the estimated amount of credits for these programs as a reduction to net sales.
The Company has entered into contracts with some customers that allow for credits to be claimed for certain matters of operational compliance or for returns to the retail customer from end consumers. Credits that will be issued associated with these items are estimated using the expected value method and are based on actual historical experience and are recorded as a reduction of revenue at the time of recognition or when circumstances change resulting in a change in estimated returns. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.
The Company also offers assurance-type warranties relating to its products sold to end customers that are accounted for under ASC Topic 460, Guarantees. See Warranty Costs below.
Cost of Revenue – Cost of revenue consists of product costs, including costs of components, costs of products from third-party contract manufacturers of grills, consumables, and accessories, direct and indirect manufacturing costs of wood pellet production, packaging, inbound freight and duties, warehousing and fulfillment, warranty costs, product quality testing and inspection costs, excess and obsolete inventory write-downs, cloud-hosting costs for connected devices, depreciation of tooling and manufacturing equipment, amortization of internal use software and patented technology, and certain employee related expenses.
Warranty Costs – The Company generally provides its customers with a three-year limited warranty on residential model pellet grills and a one-year warranty on accessories for defects in material and workmanship under normal use and maintenance. Warranty liabilities are recorded on the basis of grills and accessories sold and reflect management’s estimate of warranty related costs expected to be incurred during the respective unexpired warranty periods. Management’s estimates of warranty costs are based on historical as well as current product replacement and related delivery costs incurred and warranty policies. Warranty claims expense is included in cost of revenue on the accompanying consolidated statements of operations and comprehensive loss.
On December 14, 2023, the Company announced a voluntary recall of its Flatrock flat top grill which impacted the operating results by $2.6 million due to estimated product returns, recall charges, inventory-write offs, logistics and rework and estimated legal costs for the year ended December 31, 2023.
Sales and Marketing – Sales and marketing expenses consist primarily of the advertising and marketing of its products and personnel-related expenses, including salaries, benefits and stock-based compensation expense, as well as sales incentives and professional services. These costs are included in selling and marketing expenses within operating expenses in the accompanying consolidated statements of operations and comprehensive loss.
Advertising Costs – The Company incurs non-direct response advertising costs which are expensed as incurred. Advertising expense was $39.8 million, $48.4 million and $58.4 million for the years ended December 31, 2023, 2022 and 2021, respectively, and is included in selling and marketing expense on the accompanying consolidated statements of operations and comprehensive loss.
General and Administrative – General and administrative expense consist primarily of personnel-related expenses, including salaries, benefits and stock-based compensation and facilities for executive, finance, accounting, legal, human resources, and information technology functions. General and administrative expense also includes fees for professional services principally comprised of legal, audit, tax and accounting services, and insurance. These costs are included in general and administrative expenses within operating expenses in the accompanying consolidated statements of operations and comprehensive loss.
Research and Development – Research and development expenses consist primarily of personnel-related expenses, including salaries, benefits and stock-based compensation expense, as well as professional services, prototype materials and software platform costs. Research and development expense was $11.5 million, $10.8 million and $18.8 million for the years ended December 31, 2023, 2022 and 2021, respectively, and is included in general and administrative expenses on the accompanying consolidated statements of operations and comprehensive loss.
Income Taxes – The Company accounts for income taxes using the asset and liability method. The asset and liability method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between tax bases and financial reporting bases of the Company’s assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established on deferred tax assets if it is determined by management that it is more-likely-than-not that such deferred tax assets will not be realized.
Income and loss for tax purposes may differ from the financial statement amounts and may be allocated to the members on a different basis for tax purposes than for financial statement purposes.
The preparation of consolidated financial statements in conformity with ASC 740, Income Taxes, requires the Company to report information regarding its exposure to various tax positions taken by the Company. The Company has determined whether any tax positions have met the recognition threshold and has measured the Company’s exposure to those tax positions. Management believes that the Company has adequately addressed all relevant tax positions and that there are no uncertain tax positions that would require adjustment to the consolidated financial statements to comply with the provisions of the guidance. The Company has elected to record any interest and penalties related to uncertain tax positions within interest expense on the accompanying consolidated statements of operations and comprehensive loss. No interest and penalties related to uncertain tax positions were recorded for either the year-ended December 31, 2023, 2022 or 2021, respectively.
The Company has recorded research and development tax credits that are available for developing new or improved or innovative products, processes, software or inventions.
Stock-Based Compensation – The Company recorded stock-based compensation expense related to Class B incentive units awards issued by TGP Holdings LP consistent with the compensation expense associated with the holder of the incentive units. The units granted by TGP Holdings LP have been issued for services performed on behalf of the Company. Therefore, the expense associated with these awards is pushed down to the Company.

The incentive unit grants are measured for expensing purposes at the grant date based on the fair value of the award. The incentive unit grants consisted of time-based vesting units, ordinary performance vesting units, and extraordinary performance vesting units. In connection with the completion of the Company’s IPO, the Company recorded stock-based compensation as a result of the acceleration of vesting of all unvested and outstanding Class B Units.
In addition, the Company awards stock-based compensation to employees and directors under the Traeger, Inc. 2021 Incentive Award Plan (the “2021 Plan”), which is described in Note 15 – Stock-Based Compensation. The Company measures compensation expense for time-based restricted stock unit ("RSU") awards on a straight-line basis over the vesting schedule and for the performance-based RSU and restricted share awards we measure compensation expense on an accelerated attribution basis over the requisite service period. In addition, the Company recognizes forfeitures as they occur, however, when an award is forfeited prior to the vesting date, the Company will recognize an adjustment for the previously recognized expense in the period of the forfeiture, with the exception of performance-based awards for which the requisite service period has been provided.
The Company uses the Monte Carlo pricing model to estimate the fair value of its performance-based RSU and restricted share awards as of the grant date, and uses various simulations of future stock prices through the Stochastic model to estimate the fair value over the remaining term of the performance period as of the grant date.
Comprehensive Loss – The Company's comprehensive loss is determined based on net loss adjusted for gains and losses on foreign currency translation adjustments and the interest rate swap, as well as amortized gains and losses associated with the dedesignated interest rate swap.
Foreign Currency – The Company has foreign subsidiaries for which the net sales generated, as well as most of the related expenses directly incurred from those operations, are denominated in local currencies. The functional currency of these foreign subsidiaries that either operate or support these operations are generally the same as the Company's functional currency. Results of operations for the Company’s consolidated foreign subsidiaries are remeasured from the local currency to the U.S. dollar using average exchange rates during the period, while monetary assets and liabilities are remeasured at the exchange rate in effect at the reporting date. Non-monetary assets and liabilities and equity accounts of consolidated foreign subsidiaries are carried at historical values. Resulting gains or losses from remeasuring foreign currency financial statements are recorded in other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss.
Foreign currency transaction gains and losses resulting from exchange rate fluctuations on transactions denominated in a currency other than the U.S. Dollar are included in other income (expense), net on the accompanying consolidated statements of operations and comprehensive loss. The Company recorded a net foreign exchange loss of $0.1 million, $3.2 million and $1.4 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Retirement Plan – The Company maintains a defined contribution retirement plan (“401(k) plan”) for all full-time employees in the United States. This 401(k) plan allows employees to contribute a portion of their eligible compensation up to the certain maximum dollar limits set by the Internal Revenue Service. The Company made matching contributions to the 401(k) plan of $2.0 million, $2.3 million and $1.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. The expenses are recorded consistent with the payroll expense associated to each individual employee to whom the matching contributions pertains.
Segment Information – The Company concluded that its business is a single reportable segment and operates solely as a consumer products business. This is supported by the Company’s operational structure, which includes sales, design, operations, marketing, and administrative functions focused on the entire product suite rather than individual product categories. The Company’s chief operating decision maker does not regularly review financial information below a level of consolidated Company results to determine resource allocation or to assess performance.
Recently Issued Accounting Standards
As an “emerging growth company,” the Jumpstart Our Business Startups Act (“JOBS Act”), allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. The adoption dates discussed below reflect this election.
New Accounting Pronouncements Recently Adopted
In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial instruments measured at amortized cost and also applies to some off-balance sheet credit exposures. The Company has adopted this
guidance effective January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s accompanying consolidated financial statements and related disclosures.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU is intended to ease the potential accounting and financial reporting burden of reference rate reform, including the expected market transition from the London Interbank Offering Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance provides optional expedients and scope exceptions for transactions if certain criteria are met. These transactions include contract modifications, hedge accounting, and the sale or transfer of debt securities classified as held-to-maturity. The Company adopted this ASU in the second quarter of 2023. Adoption of this new standard did not have a material impact on the Company's accompanying consolidated financial statements and related disclosures.
New Accounting Pronouncements Issued but Not Yet Adopted
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09.
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REVENUE
12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE
The following table disaggregates revenue by product category, geography, and sales channel for the fiscal periods indicated (in thousands):
 Year-ended December 31,
Revenue by product category202320222021
Grills$299,346 $355,441 $544,200 
Consumables114,901 131,342 136,216 
Accessories191,635 169,118 105,129 
Total revenue$605,882 $655,901 $785,545 
 Year-ended December 31,
Revenue by geography202320222021
North America$536,496 $598,839 $737,402 
Rest of world69,386 57,062 48,143 
Total revenue$605,882 $655,901 $785,545 
 Year-ended December 31,
Revenue by sales channel202320222021
Retail$451,759 $502,884 $689,437 
Direct to consumer154,123 153,017 96,108 
Total revenue$605,882 $655,901 $785,545 
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LEASES
12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES LEASES
The Company has various lease agreements related to office space, warehouses, vehicles, and office equipment. The leases expire at various dates through 2037, which are primarily accounted for as operating leases.
In November 2020, the Company entered into a lease agreement to rent an office building in Salt Lake City, UT, that will be used as the Company's new corporate headquarters, consisting of approximately 94,000 square feet of space that expires in
2037. In accordance with ASC 840, for build-to-suit lease arrangements where the Company is involved in the construction of structural improvements prior to the commencement of the lease or take some level of construction risk, the Company was considered the owner of the assets and land during the construction period. Accordingly, upon commencement of construction activities, the Company recorded a construction in progress asset and a corresponding financing liability.
On January 1, 2022, the Company adopted ASC 842 and determined it did not control the use of the identified asset under construction and therefore derecognized the build-to-suit asset and related liabilities. Since the Company did not control the underlying asset being constructed, the Company did not recognize an operating ROU asset and lease liability. During the construction period and prior to the commencement date, the Company incurred lease payments and costs relating to the construction and design of the underlying asset and recognized such costs as prepayments and noncash lease payments in accordance with ASC 842.
On December 8, 2023, the Company obtained control to use the underlying asset being constructed which resulted in the lease commencement and recognition of an additional operating ROU asset and lease liability of $37.7 million and $21.8 million, respectively, with the difference between the ROU asset and the lease liability being primarily due to the funding of $14.9 million for lessor owned leasehold improvements and $1.0 million of prepaid rent expense.
The following table presents the components of lease costs (in thousands):
Year-ended December 31,
20232022
Operating lease costs$6,293 $6,476 
Variable lease costs1,311 1,561 
The following table presents lease terms and discount rates:
Year-ended December 31,
20232022
Weighted average remaining lease term10.674.54
Weighted average discount rate7.83 %4.28 %
At December 31, 2023, future lease payments (receipts) under operating leases were as follows (in thousands):
Operating Lease LiabilitiesOperating Sublease
2024$5,865 $(1,979)
20255,465 (2,029)
20264,411 (1,035)
20273,461 — 
20283,419 — 
Thereafter28,323 — 
Total lease payments (receipts)50,944 (5,043)
Less: Effect of discounting to net present value(18,194)
Present value of lease liabilities$32,750 
The following table presents supplemental cash flow information (in thousands):
Year-ended December 31,
20232022
Cash payments used in operating cash flows from lease arrangements$6,112 $6,313 
Right-of-use assets obtained in exchange for new operating lease liabilities$40,589 $21,525 
Derecognition of right-of-use assets due to reassessment of lease term$(33)$(596)
LEASES LEASES
The Company has various lease agreements related to office space, warehouses, vehicles, and office equipment. The leases expire at various dates through 2037, which are primarily accounted for as operating leases.
In November 2020, the Company entered into a lease agreement to rent an office building in Salt Lake City, UT, that will be used as the Company's new corporate headquarters, consisting of approximately 94,000 square feet of space that expires in
2037. In accordance with ASC 840, for build-to-suit lease arrangements where the Company is involved in the construction of structural improvements prior to the commencement of the lease or take some level of construction risk, the Company was considered the owner of the assets and land during the construction period. Accordingly, upon commencement of construction activities, the Company recorded a construction in progress asset and a corresponding financing liability.
On January 1, 2022, the Company adopted ASC 842 and determined it did not control the use of the identified asset under construction and therefore derecognized the build-to-suit asset and related liabilities. Since the Company did not control the underlying asset being constructed, the Company did not recognize an operating ROU asset and lease liability. During the construction period and prior to the commencement date, the Company incurred lease payments and costs relating to the construction and design of the underlying asset and recognized such costs as prepayments and noncash lease payments in accordance with ASC 842.
On December 8, 2023, the Company obtained control to use the underlying asset being constructed which resulted in the lease commencement and recognition of an additional operating ROU asset and lease liability of $37.7 million and $21.8 million, respectively, with the difference between the ROU asset and the lease liability being primarily due to the funding of $14.9 million for lessor owned leasehold improvements and $1.0 million of prepaid rent expense.
The following table presents the components of lease costs (in thousands):
Year-ended December 31,
20232022
Operating lease costs$6,293 $6,476 
Variable lease costs1,311 1,561 
The following table presents lease terms and discount rates:
Year-ended December 31,
20232022
Weighted average remaining lease term10.674.54
Weighted average discount rate7.83 %4.28 %
At December 31, 2023, future lease payments (receipts) under operating leases were as follows (in thousands):
Operating Lease LiabilitiesOperating Sublease
2024$5,865 $(1,979)
20255,465 (2,029)
20264,411 (1,035)
20273,461 — 
20283,419 — 
Thereafter28,323 — 
Total lease payments (receipts)50,944 (5,043)
Less: Effect of discounting to net present value(18,194)
Present value of lease liabilities$32,750 
The following table presents supplemental cash flow information (in thousands):
Year-ended December 31,
20232022
Cash payments used in operating cash flows from lease arrangements$6,112 $6,313 
Right-of-use assets obtained in exchange for new operating lease liabilities$40,589 $21,525 
Derecognition of right-of-use assets due to reassessment of lease term$(33)$(596)
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ACCOUNTS RECEIVABLES, NET
12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ACCOUNTS RECEIVABLES, NET
Accounts receivables, net consists of the following (in thousands):
 December 31,
 20232022
Trade accounts receivable$77,299 $56,822 
Allowance for expected credit losses
(549)(867)
Reserve for returns, discounts and allowances(16,812)(13,905)
Total accounts receivable, net$59,938 $42,050 
v3.24.0.1
INVENTORIES
12 Months Ended
Dec. 31, 2023
Inventory Disclosure [Abstract]  
INVENTORIES
Inventories consisted of the following (in thousands):
December 31,
20232022
Raw materials$6,645 $7,110 
Work in process9,798 12,155 
Finished goods79,732 134,206 
Inventories$96,175 $153,471 
Included within inventories are adjustments of $3.1 million and $1.3 million for the years ended December 31, 2023 and 2022, respectively, to record inventory to net realizable value.
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ACCRUED EXPENSES
12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
ACCRUED EXPENSES
Accrued expenses consisted of the following (in thousands):
 December 31,
 20232022
Accrual for inventories in-transit$9,927 $7,987 
Warranty accrual7,240 7,368 
Accrued compensation and bonus6,935 4,499 
Other28,839 32,441 
Accrued expenses$52,941 $52,295 
The changes in the Company’s warranty accrual, included in accrued expenses on the accompanying consolidated balance sheets, were as follows for the fiscal periods indicated (in thousands):
 December 31,
 202320222021
Warranty accrual, beginning of period$7,368 $8,326 $6,728 
Warranty claims(6,262)(7,601)(7,693)
Warranty costs accrued6,134 6,643 9,291 
Warranty accrual, end of period$7,240 $7,368 $8,326 
v3.24.0.1
DERIVATIVES
12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES
Interest Rate Swap
On February 25, 2022, the Company entered into a floating-to-fixed interest rate swap agreement to hedge or otherwise protect against fluctuations on a portion of the Company's variable rate debt. The agreement provides for a notional amount of $379.2 million, fixed rate of 2.08% and a maturity date of February 28, 2026. This agreement was designated as a cash flow hedge on the exposure of the variability of future cash flows subject to the variable monthly interest rates on $379.2 million of the term loan portion under the First Lien Term Loan Facility (as defined below). The Company assessed hedge effectiveness at the time of entering into the agreement, utilizing a regression analysis, and determined the hedge is expected to be highly effective.
As a cash flow hedge, the interest rate swap is revalued at current market rates, with the changes in valuation being recorded in other comprehensive income (loss) within the accompanying consolidated statements of operations and comprehensive loss, to the extent that the hedge is effective. The gains or losses on the interest rate swaps are recorded in accumulated other comprehensive income within the accompanying consolidated balance sheets and are reclassified into interest expense in the periods in which the interest rate swap affects earnings. The cash flows related to interest settlements and changes in valuation are classified consistent with the treatment of the hedged monthly interest payments generally as operating activities on the accompanying consolidated statement of cash flows.
In January 2023, the Company changed the interest reset period from one month to three months on the term loan portion under the First Lien Term Loan Facility (as defined below). As a result, the Company dedesignated its hedging relationship. At the time of dedesignation total amount recorded in accumulated other comprehensive income ("AOCI") was $21.3 million and will be amortized into earnings as a reduction of interest expense over the term of the previously hedged interest payments. As of December 31, 2023 the Company had $11.5 million remaining within AOCI to be amortized into earnings as a reduction of interest expense.
For periods where the net position is an asset balance, the balance is recorded within prepaid expenses and other current assets and other non-current assets on the accompanying consolidated balance sheets. The gross and net balances from the interest rate swap contract position were as follows (in thousands):
December 31,
202320222021
Gross asset fair value
$16,248 $23,410 $— 
Gross liability fair value
— — — 
Net asset fair value
$16,248 $23,410 $— 
Foreign Currency Contracts
The Company is exposed to foreign currency exchange rate risk related to its purchases and international operations. The Company utilizes foreign currency contracts to manage foreign currency risk in purchasing inventory and capital equipment, and future settlement of foreign denominated assets and liabilities. The volume of the Company’s foreign currency contract activity is limited by the amount of transaction exposure in each foreign currency and the Company’s election as to whether to hedge the transactions. There are no derivative instruments entered into for speculative purposes.
The Company had outstanding foreign currency contracts as of December 31, 2023 and 2022. The Company did not elect hedge accounting for any of these contracts. All outstanding contracts are with the same counterparty and thus the fair market value of the contracts in an asset position are offset by the fair market value of the contracts in a liability position to reach a net position. For periods where the net position is an asset balance, the balance is recorded within prepaid expenses and other current assets on the accompanying consolidated balance sheets and for periods where the net position is a liability balance, the balance is recorded within other non-current liabilities on the accompanying consolidated balance sheets. Changes in the net fair value of contracts are recorded within other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss.
The gross and net balances from foreign currency contract positions were as follows (in thousands):
 December 31,
 20232022
Gross Asset Fair Value$76 $— 
Gross Liability Fair Value— 1,001 
Net Fair Value$76 $1,001 
Gains (losses) from foreign currency contracts were recorded in other income (expense), net within the accompanying consolidated statements of operations and comprehensive loss as follows for the fiscal periods indicated (in thousands):
 December 31,
 202320222021
Realized gain (loss)$(3,080)$(1,527)$8,199 
Unrealized gain (loss)1,033 (2,396)(4,821)
Total gain (loss)$(2,047)$(3,923)$3,378 
v3.24.0.1
FAIR VALUE MEASUREMENTS
12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
The following table presents information about the fair value measurement of the Company’s financial instruments (in thousands):
  
As of December 31,
Financial Instruments Recorded at Fair Value on a Recurring Basis:Fair Value Measurement Level20232022
Assets:
Derivative assets—foreign currency contracts (1)
2$76 $— 
Derivative assets—interest rate swap contract (2)
216,248 23,410 
Total assets$16,324 $23,410 
Liabilities:
Derivative liabilities—foreign currency contracts (3)
2$— $1,001 
Contingent consideration—earn out (4)
315,000 22,747 
Total liabilities$15,000 $23,748 
(1)Included in prepaid expenses and other current assets in the accompanying consolidated balance sheets.
(2)Included in prepaid expenses and other current assets and other non-current assets in the accompanying consolidated balance sheets.
(3)Included in other current liabilities in the accompanying consolidated balance sheets.
(4)Included in current and non-current contingent consideration in the accompanying consolidated balance sheets.
Transfers of assets and liabilities among Level 1, Level 2 and Level 3 are recorded as of the actual date of the events or change in circumstances that caused the transfer. For the years ended December 31, 2023 and 2022, there were no transfers between levels of the fair value hierarchy of the Company’s assets or liabilities measured at fair value.
The fair value of the Company’s derivative assets and liabilities through its foreign currency contracts is based upon observable market-based inputs that reflect the present values of the differences between estimated future foreign currency rates versus fixed future settlement prices per the contracts, and therefore, are classified within Level 2. The fair value of the Company's interest rate swap contract held with a financial institution is classified as a Level 2 financial instrument, which is valued using observable underlying interest rates and market-determined risk premiums at the reporting date.
On November 10, 2022, the Company entered into the second amendment to the share purchase agreement associated with the Apption Labs business combination to extend the earn out period through the end of fiscal year 2023. This amendment also modified the contingent consideration calculation associated with the achievement of certain revenue, earnings, and successful product launch thresholds for fiscal years 2022 and 2023. The remaining amount the Company expects to pay under the contingent consideration arrangement is $15.0 million, becoming due during the first half of fiscal year 2024.
The fair values of the Company's contingent consideration earn out obligation was estimated using a Black Scholes model. Key assumptions used in these estimates include the weighted average cost of capital and the probability assessments with respect to the likelihood of achieving the forecasted performance targets consistent with the level of risk of achievement. As these are significant unobservable inputs, the contingent consideration earn out obligation is included in Level 3 inputs.
At each reporting date, the Company revalues the contingent consideration obligation to its fair value and records increases and decreases in fair value in the change in fair value of contingent consideration in the accompanying consolidated statements of operations and comprehensive loss. Changes in the fair value of the contingent consideration obligation results from changes in discount periods and rates, and changes in probability assumptions with respect to the likelihood of achieving the performance targets.
The following table presents the fair value of contingent consideration (in thousands):
Year-ended December 31,
202320222021
Contingent consideration, beginning of period
$22,747 $25,300 $— 
Acquisition date fair value of contingent consideration
— — 21,500 
Payments of contingent consideration(12,445)(12,555)— 
Change in fair value of contingent consideration
4,698 10,002 3,800 
Contingent consideration, end of period
$15,000 $22,747 $25,300 
The following table reconciles the changes in fair value of contingent consideration and payments of contingent consideration to the accompanying consolidated statement of cash flows and consolidated statements of operations and comprehensive loss (in thousands):
Year-ended December 31,
202320222021
Total payment of contingent consideration
$12,445 $12,555 $— 
Less: amounts paid in excess of the acquisition date fair value of the contingent consideration (1)
(220)(3,280)— 
Acquisition date fair value of contingent consideration (2)
$12,225 $9,275 $— 
Change in fair value of contingent consideration (3)
$4,698 $10,002 $3,800 
Less: amounts paid in excess of the acquisition date fair value of the contingent consideration (1)
(220)(3,280)— 
Net change in fair value of contingent consideration (4)
$4,478 $6,722 $3,800 
(1)Included in the change in fair value of contingent consideration as an operating activity in the accompanying consolidated statement of cash flows.
(2)Agrees to the payments of acquisition related contingent consideration as a financing activity within the accompanying consolidated statement of cash flows.
(3)Agrees to the change in fair value of contingent consideration in the accompanying consolidated statement of operations and comprehensive loss.
(4)Agrees to the change in fair value of contingent consideration as an operating activity in the accompanying consolidated statement of cash flows.
The following financial instruments are recorded at their carrying amount (in thousands):
 
As of December 31, 2023
As of December 31, 2022
Financial Instruments Recorded at Carrying Amount:Carrying
Amount
Estimated
Fair Value
Carrying
Amount
Estimated
Fair Value
Liabilities:
Debt—Credit Facilities (1)
$403,825 $357,498 $476,070 $393,236 
Total liabilities$403,825 $357,498 $476,070 $393,236 
(1)Included in the current portion of notes payable and notes payable, net of current portion in the accompanying consolidated balance sheets. Due to the unobservable nature of the inputs these financial instruments are considered to be Level 3 instruments in the fair value hierarchy
v3.24.0.1
PROPERTY, PLANT AND EQUIPMENT
12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT
Property, plant, and equipment consisted of the following (in thousands):
 December 31,
 20232022
Land and buildings$1,972 $1,472 
Machinery and equipment25,292 22,371 
Leasehold improvements11,783 9,538 
Office equipment and fixtures20,580 16,362 
Vehicles2,954 3,122 
Computer software and hardware23,358 21,668 
Property, plant, and equipment, gross
85,938 74,533 
Plus: construction in progress
8,026 19,353 
Less: accumulated depreciation
(51,374)(38,376)
Property, plant, and equipment, net$42,591 $55,510 
Depreciation expense related to property, plant, and equipment recorded in cost of revenue was $7.1 million, $6.2 million and $4.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Depreciation expense related to property, plant, and equipment recorded in general and administrative expense was $7.9 million, $7.6 million and $5.2 million for the years ended December 31, 2023, 2022 and 2021, respectively.
v3.24.0.1
GOODWILL AND INTANGIBLES
12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLES
The amount of goodwill is primarily attributable to the allocations of the purchase price from the acquisition of Traeger Pellet Grills Holdings LLC on September 25, 2017 (the "Transaction") and the acquisition of Apption Labs on July 1, 2021. Changes in the carrying amount of goodwill during the fiscal years ended December 31, 2023 and 2022, is as follows (in thousands):
 December 31,
 20232022
Goodwill, beginning of period
$74,725 $297,047 
Goodwill impairment
— (222,322)
Goodwill, end of period
$74,725 $74,725 
The Company conducts annual goodwill impairment tests in the fourth quarter of each fiscal year or whenever an indicator of impairment exist. For the annual impairment tests conducted in the fourth quarters of 2023 and 2022, the Company performed qualitative assessments of goodwill and determined that it was more likely than not that the fair value of goodwill was greater than its carrying value, therefore the quantitative impairment test was not performed and no impairment of goodwill was recorded in connection with the annual impairment tests.
During the second and third quarters of fiscal year 2022, the Company experienced a sustained decrease in its publicly quoted share price, market capitalization and lower than expected operating results. As such, the Company conducted an impairment analysis of its goodwill and long-lived assets. and concluded there were no events or changes in circumstances which indicated that the carrying value of its long-lived assets may not be recoverable. However, the Company did identify indicators of goodwill impairment for the single reporting unit and concluded that a triggering event had occurred which required an interim goodwill impairment assessment. As a result of the interim quantitative impairment assessments, the goodwill carrying value of the single reporting unit exceeded its fair value, and the Company recorded $222.3 million of non-cash goodwill impairment charge during the fiscal year ended December 31, 2022.
Intangible assets consisted of the following at the dates indicated below (dollars in thousands):
 December 31, 2023
 Weighted
Average Life
(in years)
Gross
Carrying
Amount
Accumulated
Amortization
Net Book
Value
Customer relationships17$378,394 $(139,463)$238,930 
Trademark24281,700 (70,601)211,099 
Technology536,300 (19,731)16,569 
Distributor relationships82,400 (750)1,650 
Non-compete arrangements2.5700 (700)— 
Favorable lease position851 (42)
Other intangible assets112,920 (632)2,288 
Total$702,464 $(231,919)$470,546 
 December 31, 2022
 Weighted
Average Life
(in years)
Gross
Carrying
Amount
Accumulated
Amortization
Net Book
Value
Customer relationships17$378,394 $(116,857)$261,537 
Trademark24281,700 (58,271)223,429 
Technology536,300 (12,700)23,600 
Distributor relationships82,400 (450)1,950 
Non-compete arrangements2.5700 (420)280 
Favorable lease position851 (35)16 
Other intangible assets112,519 (473)2,046 
Total$702,064 $(189,206)$512,858 
The preponderance of the customer relationships and trademark were pushed down from the purchase accounting in the Transaction (as defined above) in 2017.
Estimated annual amortization expense for the next five years and thereafter for the years ending December 31, (in thousands): 
2024$42,305 
202541,863 
202638,604 
202735,356 
202835,356 
Thereafter276,150 
Total$469,634 
Amortization expense related to intangible assets recorded in cost of revenue was $7.2 million, $7.2 million and $4.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Amortization expense related to intangible assets recorded in amortization of intangible assets was $35.6 million, $35.6 million and $34.4 million for the years ended December 31, 2023, 2022 and 2021, respectively.
v3.24.0.1
RECEIVABLES FINANCING AGREEMENT
12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
RECEIVABLES FINANCING AGREEMENT
On November 2, 2020, the Company entered into a receivables financing agreement (the “Receivables Financing Agreement”). Through the Receivables Financing Agreement, the Company participates in a trade receivables securitization program administered on its behalf by MUFG Bank Ltd. ("MUFG") Through this arrangement, the Company has secured short-term capital requirements financing using outstanding accounts receivable balances as collateral, which have been contributed by the Company to a wholly owned subsidiary, Traeger SPE LLC. As a special purpose entity (the “SPE”), Traeger SPE LLC has been structured so that its assets (substantively the accounts receivable contributed by the Company to the SPE) are outside the reach of other creditors, including the lenders under the Company's New First Lien Credit Agreement. While the Company provides services to the SPE through continuing involvement in the aspects of collection and cash application of the receivables, the receivables are owned by the SPE once contributed to it by the Company. The Company is the primary beneficiary and holds all equity interests of the SPE, thus the Company consolidates the SPE without any significant judgments.
On June 29, 2021, the Company entered into Amendment No. 1 to the Receivables Financing Agreement (the "Amended Receivables Financing Agreement") and increased the net borrowing capacity from the prior range of $30.0 million to $45.0 million up to $100.0 million. Absent any cash advances that exceed the SPE’s available cash, the SPE collects proceeds from the receivables and transfers available cash to the Company on a regular basis. The Company is required to pay an upfront fee for the facility, along with interest on outstanding cash advances of approximately 1.7%, and an unused capacity charge that ranges from 0.25% to 0.50%. The facility is set to terminate on June 29, 2024.
On November 8, 2023, we entered into Amendment No. 9 to the Receivables Financing Agreement in order to extend the expiration of the facility by one year to June 27, 2025. As part of the amendment, the maximum borrowing capacity was decreased from $100.0 million to $75.0 million and a mechanism was added to allow for seasonal adjustments to the maximum borrowing capacity, which can now be set between $30.0 million and $75.0 million. A seasonal adjustment schedule was established upon the effectiveness of Amendment No. 9, and further adjustments can be made up two times annually at the discretion of the Company (with consent of the lenders under the Receivables Financing Agreement). We are required to pay fixed interest on outstanding cash advances of 2.5%, a floating interest based on the CP Rate or Adjusted Term SOFR (each as defined in the Receivables Financing Agreement), and an unused capacity charge that ranges from 0.25% to 0.5%. Amendment No. 9 also implemented a new liquidity threshold at $42.5 million of liquidity. If our liquidity falls below this threshold, it may result in an increase in the required level of reserves, which would result in a reduction of our borrowing base under the Receivables Financing Agreement during such a liquidity shortfall. We were in compliance with the covenants under the Receivables Financing Agreement as of December 31, 2023.
As of December 31, 2023, the Company has drawn down on its accounts receivable facility in the amount of $28.4 million for general corporate and working capital purposes.
v3.24.0.1
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
Unconditional purchase commitments
The Company has unconditional purchase commitments for cloud-hosting costs, software licenses, and other professional fees. Future minimum payments under these unconditional purchase commitments are as follows as of December 31, (in thousands):
2024$4,396 
20252,099 
2026253 
2027— 
2028— 
Thereafter— 
Total$6,748 
Legal Matters
The Company is subject to various claims, complaints and legal actions in the normal course of business. The Company does not believe it has any currently pending litigation of which the outcome will have a material adverse effect on its operations or financial position.
v3.24.0.1
EQUITY-BASED COMPENSATION
12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
EQUITY-BASED COMPENSATION
The Traeger, Inc. 2021 Incentive Award Plan (the "2021 Plan"), became effective as of July 28, 2021, the day prior to the first public trading date of our common stock. The 2021 Plan provides for the grant of stock options, including incentive stock options, and nonqualified stock options, restricted stock, dividend equivalents, restricted stock units, stock appreciation rights, and other stock or cash awards to the Company’s employees and consultants and directors of the Company and its subsidiaries. Subject to the adjustment described in the following sentence, the initial number of shares of our common stock available for issuance under awards granted pursuant to the 2021 Plan was equal to 14,105,750 shares, which shares may be authorized but unissued shares, treasury shares, or shares purchased in the open market. On January 1, 2024 and January 1, 2023, an additional 6,293,265 shares and 6,131,220 shares of common stock became available for issuance under awards granted pursuant to the 2021 Plan, respectively, as a result of the operation of an automatic annual increase provision in the 2021 Plan. Notwithstanding anything to the contrary in the 2021 Plan, no more than 100,000,000 shares of our common stock may be issued pursuant to the exercise of incentive stock options under the 2021 Plan.
On July 20, 2021, the board of directors approved grants of restricted stock units (“RSUs”) covering 12,163,242 shares of common stock that became effective in connection with the completion of the Company’s IPO, which included 7,782,957 RSUs underlying the CEO Awards and 4,380,285 RSUs underlying the IPO RSUs granted to other employees, directors, and certain non-employees.
CEO Awards
The awards include a combination of time-based and performance-based RSUs. Specifically, time-based RSUs covering 2,594,319 shares ("RSU CEO Award") and performance-based RSUs ("PSUs") covering 5,188,638 shares ("PSU CEO Award") were granted to Mr. Andrus (the "CEO").
Other IPO Awards
The RSUs granted to other employees, directors, and certain non-employees, included 3,635,287 time-based RSUs ("IPO RSUs") and 744,998 performance-based RSUs ("IPO PSUs") granted to certain senior-level executives of the Company.
IPO RSUs
The IPO RSUs vest based on certain time-based conditions set forth in the applicable award agreement. IPO RSUs granted to certain senior executives of the Company were originally eligible to vest as to 50% of the underlying shares on each of the third and fourth anniversaries of the closing of the IPO, subject to continued employment with the Company or one of its
subsidiaries. In August 2022, the vesting schedules of the IPO RSUs held by certain executives and employees were amended such that the IPO RSUs are eligible to vest as to one-third of the underlying shares on each of the first, second and third anniversaries of the closing of the IPO, subject to continued employment with the Company or one of its subsidiaries
Letter Agreement
On August 31, 2022, the board of directors approved a letter agreement between the Company and the Company’s CEO (the “Letter Agreement”) intended to facilitate a personal tax planning initiative.
The Letter Agreement provided for the accelerated vesting of 2,075,455 unvested shares subject to the RSUs CEO Award and 518,864 earned but unvested shared subject to the PSU CEO Award, and required the CEO to pay the withholding tax associated with the acceleration of the awards by cash or check, rather than by selling vested shares to cover the tax obligation with respect to such accelerated vesting.
In addition, the Letter Agreement imposes certain clawback rights intended to maintain the retention incentives of the RSU CEO Award and the PSU CEO Award by mirroring their former vesting schedule. If the CEO experiences a termination of service, other than due to a qualifying termination (as defined in the applicable award agreements), prior to an original vesting date of an RSU or PSU, the CEO will forfeit and return to the Company that number of shares of the Company’s common stock that would not otherwise have vested pursuant to the terms of the original award agreements or, if he has disposed of or transferred such shares, he will deliver to the Company the corresponding value of those shares plus any gain realized in connection with such sale or other transfer.
The approval for the acceleration of vesting was determined to be a modification and therefore, the Company evaluated each of the modified awards to determine the necessary accounting treatment. Vesting of the awards was assessed as probable immediately prior to and after the modification resulting in an acceleration of the remaining expense based on the original grant date fair value. As a result of the modification of the CEO Awards, the Company recorded approximately $39.4 million of accelerated stock-based compensation for the year ended December 31, 2022.
CEO and IPO PSU Cancellations; Performance Shares
On April 13, 2023, following mutual agreement between the Company and each named executive officer, our board of directors approved the cancellation and termination of the unearned CEO PSUs and IPO PSUs originally granted to the executives on August 2, 2021. As a result, the Company recognized $27.5 million of stock-based compensation expense during the year ended December 31, 2023 related to the cancellations.
On the same day, our board of directors approved a grant to the CEO of an award of 1,037,728 performance-based restricted shares (the “Performance Shares”). The Performance Shares were issued under the 2021 Plan and are intended to retain and incentivize the CEO to lead the Company to sustained, long-term superior financial performance.
The Performance Shares are eligible to be earned upon the achievement of an Adjusted EBITDA goal during the fiscal year ending on December 31, 2023. If the Adjusted EBITDA goal is achieved, the earned Performance Shares will vest on March 31, 2024.
If the Adjusted EBITDA goal is not achieved, then the Performance Shares instead will become eligible to be earned based on the achievement of a stock price goal of $18.00 per share (the "Stock Price Goal") for the period beginning on January 1, 2024 and ending on August 2, 2031. If the Stock Price Goal is achieved, the earned Performance Shares will vest on the later of March 31, 2024 or the date on which the Stock Price Goal is achieved.
The vesting of the Performance Shares is in all cases subject to the CEO’s continued service as the Company's Chief Executive Officer or Executive Chairman of our board of directors.
Upon a termination of the CEO’s service to the Company without cause, by the CEO for good reason, or due to the CEO’s death or disability (each as defined in his award agreement), any previously earned Performance Shares will vest, and any remaining Performance Shares will be forfeited and terminated without consideration as of the date of termination. The vesting of any Performance Shares upon a qualifying termination will be subject to the CEO’s timely execution and non-revocation of a general release of claims, and continued compliance with customary restrictive covenants.
In the event the Company incurs a change in control (as defined in the 2021 Plan), then any previously-earned Performance Shares will vest, and any remaining Performance Shares will vest if the Stock Price Goal is achieved based on the price per share received by or payable to our holders of our common stock in connection with the transaction. Any remaining
Performance Shares will be forfeited and terminated without consideration as of immediately prior to the change in control. The CEO is required to make an election under Section 83(b) of the Internal Revenue Code of 1986, as amended, with respect to the Performance Shares, and to pay the withholding tax associated with the issuance of the Performance Shares. To the extent the Performance Shares vest, the CEO must hold such shares for two years following the applicable vesting date, subject to certain exceptions set forth in the award agreement.
For RSUs and for PSUs, and Performance Shares the compensation expense is recognized on a straight-line basis over the vesting schedule and on an accelerated basis over the requisite service period, respectively. In addition, when an award is forfeited prior to the vesting date, the Company will recognize an adjustment for the previously recognized expense in the period of the forfeiture, with the exception of performance-based awards for which the requisite service period has been satisfied.
The Company uses the Monte Carlo pricing model to estimate the fair value of its PSUs and Performance Shares as of the grant date, and uses various simulations of future stock prices through the Stochastic model to estimate the fair value over the remaining term of the performance period as of the grant date.
A summary of the time-based restricted stock unit activity for the year ended December 31, 2023 was as follows:
UnitsWeighted Average Grant Date Fair Value
Outstanding at December 31, 2022
5,923,835 $6.73 
Granted4,638,063 3.90
Vested(2,203,161)7.58 
Forfeited(260,077)7.68
Outstanding at December 31, 2023
8,098,660 $4.84 
As of December 31, 2023, the Company had $27.2 million of unrecognized stock-based compensation expense related to unvested time-based restricted stock units that is expected to be recognized over a weighted-average period of 1.96 years.
A summary of the performance-based restricted stock unit activity during the year ended December 31, 2023 was as follows:
UnitsWeighted Average Grant Date Fair Value
Outstanding at December 31, 2022
4,714,242 $12.59 
Modified
(1,037,728)15.13
Granted— — 
Vested— — 
Forfeited(3,676,514)11.87 
Outstanding at December 31, 2023
— $— 
As of December 31, 2023, the Company had no unrecognized stock-based compensation expense related to unvested performance-based units.
A summary of the performance-based restricted share activity for the year ended December 31, 2023 was as follows:
Shares
Weighted Average Grant Date Fair Value
Outstanding at December 31, 2022
— $— 
Granted1,037,728 15.58 
Vested— — 
Forfeited— — 
Outstanding at December 31, 2023
1,037,728 $15.58 
As of December 31, 2023, the Company had $4.7 million of unrecognized stock-based compensation expense related to unvested performance-based restricted share that is expected to be recognized over a weighted-average period of 2.58 years.
Summary of Stock-Based Compensation
The Company's stock-based compensation was classified as follows in the accompanying consolidated statements of operations and comprehensive loss for the fiscal periods indicated (in thousands):
Year-ended December 31,
202320222021
Cost of revenue$74 $202 $947 
Sales and marketing4,115 3,796 16,401 
General and administrative49,014 83,699 63,764 
Total stock-based compensation
$53,203 $87,697 $81,112 
v3.24.0.1
INCOME TAXES
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
The components of loss before income taxes were as follows for the fiscal periods indicated (in thousands):
Year-ended
December 31,
202320222021
Domestic$(96,517)$(380,014)$(83,172)
Foreign14,100 (940)(7,106)
Loss before provision for income taxes
$(82,417)$(380,954)$(90,278)
Provision for income taxes consisted of the following components for the fiscal periods indicated (in thousands):
 Year-ended
December 31,
 202320222021
Current:
Federal$12 $241 $124 
State95 208 
Foreign4,018 2,247 2,095 
Total current tax expense$4,125 $2,496 $2,427 
Deferred expense:
Federal$(26)$— $
State26 — — 
Foreign(2,140)(1,310)(939)
Total deferred tax benefit$(2,140)$(1,310)$(938)
Provision for income taxes
$1,985 $1,186 $1,489 
Reconciliations of the differences between the effective and statutory income tax rates are as follows for the fiscal periods indicated:
 Year-ended
December 31,
 202320222021
Federal statutory rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit0.3 3.2 3.7 
Foreign rate differential(0.5)(0.1)(2.0)
Stock-based compensation
(15.3)(3.8)(14.3)
Global intangible low-taxed income(5.3)(0.6)(1.6)
Non-deductible items(2.3)(1.1)(1.1)
Research and development credits1.0 0.1 0.6 
Change in partnership investment15.7 (0.9)(3.0)
Changes in valuation allowance(25.6)(19.5)(5.4)
Changes in tax rates0.5 — (0.7)
Return to provision
3.2 — — 
Other4.9 1.4 1.0 
(2.4)%(0.3)%(1.7)%
The differences between the U.S. statutory rate and the Company’s effective tax rate for the years ended December 31, 2023, 2022, and 2021 are primarily due to the changes in valuation allowance, state taxes, and stock-based compensation.
The amounts that comprised deferred income tax assets, net are as follows for the fiscal periods indicated (in thousands):
 Year-ended
December 31,
 202320222021
Deferred tax assets:
Net operating loss carryforwards$33,706 $30,785 $19,483 
Sec. 163(j) interest17,032 9,948 3,342 
Tax credits2,033 1,516 1,206 
Stock-based compensation
— 68 
Property and equipment76 78 — 
Deferred compensation— — 722 
Operating lease liabilities78 168 — 
Investments66,367 55,952 340 
Other365 180 — 
Less: valuation allowance(119,231)(98,211)(25,092)
Total deferred tax assets$426 $417 $69 
Deferred tax liabilities:
Property and equipment$(809)$(645)$(229)
Intangible assets(7,769)(9,971)(11,513)
Investments— — — 
Operating right-of-use assets(84)(171)— 
Total deferred tax liabilities$(8,662)$(10,787)$(11,742)
Net deferred tax liability
$(8,236)$(10,370)$(11,673)
As of December 31, 2023, the Company has net operating loss carryforwards of approximately $130.0 million for federal income tax purposes, which will be available to offset future taxable income. Due to recent tax legislation, approximately $103.5 million of these net operating losses are eligible for indefinite carryforward, limited by certain taxable income limitations. The federal net operating losses will begin to expire in 2037 if not utilized. The Company is not aware of any restrictions or limitations on use of the net operating losses under Internal Revenue Code Section 382. The Company has net
operating loss carryforwards of approximately $86.3 million for state income tax purposes, which will be available to offset future taxable income. The state net operating losses will begin to expire in 2024 if not utilized. Due to cumulative losses, the Company has recorded a valuation allowance against its net deferred tax assets as of December 31, 2023, 2022 and 2020, respectively.
The Company also has federal research and development tax credit carryforwards of $2.8 million and state research and development tax credit carryforwards of $0.8 million, which begin to expire in 2038 and 2032, respectively, if not utilized.
On December 22, 2017, tax reform legislation referred to as the Tax Cuts and Jobs Act (the “Tax Act”) was enacted in the United States. The Tax Act significantly revised U.S. federal income tax law, including by lowering the corporate income tax rate to 21%, limiting the deductibility of interest expense, implementing a modified territorial tax system and imposing a one-time repatriation tax on deemed repatriated untaxed earnings and profits of U.S.-owned foreign subsidiaries. The Tax Act also enacted provisions for the taxation of Global Intangible Low-Taxed Income (“GILTI”). In 2018, the Company adopted an accounting policy to recognize GILTI as an expense in the period incurred. As such, the Company will not provide for any deferred tax assets or liabilities related to GILTI.
The Company annually conducts an analysis of its tax positions and does not recognize certain tax benefits from uncertain tax positions within the provision for income taxes. A tax benefit is recognized only if it is more likely than not that the tax position will be sustained on examination by taxing authorities based on the technical merits of the position. For such positions, the largest benefit that has a greater than 50% likelihood of being realized upon settlement is recognized in the financial statements.
The following summarizes activity related to unrecognized tax benefits for the fiscal periods indicated (in thousands):
Year-ended
December 31,
202320222021
Unrecognized benefit—beginning of the year$1,056 $908 $— 
Gross increases—current period positions184 196 908 
Gross increases—prior period positions
179 — — 
Gross decreases—prior period positions— (48)— 
Unrecognized benefit—end of the year$1,419 $1,056 $908 
The Company does not expect any significant change in its unrecognized tax benefits within the next 12 months. At December 31, 2023, the Company had $1.4 million of total unrecognized tax benefits recorded against research and development tax credit carryforwards, none of which would impact the effective tax rate if recognized.
The Company has elected to recognize interest and penalties related to uncertain tax positions as a component of interest expense from continuing operations in the accompanying consolidated statements of operations and comprehensive loss. No interest or penalties have been recorded through the year ended December 31, 2023.
The Company files tax returns in the United States and in various foreign and state jurisdictions. All of the Company's tax years remain open to examination by major taxing jurisdictions to which the Company is subject, as carryforward attributes generated in past years may still be adjusted upon examination by the Internal Revenue Service or state and foreign tax authorities if they have or will be used in future periods. The Company is not under examination by any jurisdiction as of December 31, 2023. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years before 2021.
v3.24.0.1
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
The Company outsources a portion of its customer service and support through a third party who is an affiliate of the Company through common ownership. The total amount of expenses the Company recorded associated with such services totaled $5.8 million, $6.4 million and $10.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. Amounts payable to the third party at December 31, 2023 and 2022 was $1.0 million and $0.4 million, respectively.
v3.24.0.1
EARNINGS (LOSS) PER SHARE
12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
EARNINGS (LOSS) PER SHARE
The Company computes basic earnings (loss) per share ("EPS") attributable to common stockholders by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the
period. Diluted EPS is calculated by adjusting weighted average shares outstanding for the dilutive effect of potential common shares, determined using the treasury-stock method. For purposes of the diluted EPS calculation, restricted stock units are considered to be potential common shares.
The following table sets forth the computation of the Company’s basic and diluted EPS attributable to common stockholders for the fiscal periods indicated (in thousands, except share and per share amounts):
Year-ended December 31,
202320222021
Net loss
$(84,402)$(382,140)$(91,767)
Weighted-average common shares outstanding—basic
123,726,252 119,698,776 112,374,669 
Effect of dilutive securities:
Restricted stock units and performance shares
— — — 
Weighted-average common shares outstanding—diluted
123,726,252 119,698,776 112,374,669 
Loss per share
Basic and diluted
$(0.68)$(3.19)$(0.82)
The following table includes the number of units and shares that may be dilutive common shares in the future, and were not included in the computation of diluted loss per share because the effect was anti-dilutive for the fiscal periods indicated:
Year-ended December 31,
202320222021
Restricted stock units and performance shares
8,098,660 10,638,077 12,208,496 
v3.24.0.1
RESTRUCTURING PLAN
12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
RESTRUCTURING PLAN RESTRUCTURING PLAN
In July 2022, the Board approved a restructuring plan (the "2022 restructuring plan") as part of its efforts to reduce the Company’s costs and drive long-term operational efficiencies due to challenging macroeconomic pressures. As part of the 2022 restructuring plan, the Company eliminated approximately 14% of its global headcount, suspended operations of Traeger Provisions (the Company's premium frozen meal kit business), and postponed nearshoring efforts to manufacture product in Mexico.
Costs associated with the 2022 restructuring plan recorded in cost of revenue was $0 and $2.2 million for the years ended December 31, 2023, and 2022, respectively. Costs associated with the 2022 restructuring plan recorded in restructuring costs was $0 and $9.3 million for the years ended December 31, 2023 and 2022, respectively.
A summary of the activity in the restructuring reserve in connection with the Company's 2022 restructuring plan recorded in accrued expenses within the accompanying consolidated balance sheets as follows (in thousands):
Employee Related CostsContract Exit Costs
Balance at December 31, 2021
$— $— 
Net additions charged to expense2,262 7,506 
Cash payments against reserve(2,127)(4,553)
Balance at December 31, 2022
$135 $2,953 
Net additions charged to expense— 225 
Cash payments against reserve(135)(3,178)
Balance at December 31, 2023
$— $— 
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net loss $ (84,402) $ (382,140) $ (91,767)
v3.24.0.1
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates and assumptions made by management that present the greatest amount of estimation uncertainty include the fair value of contingent consideration obligations, customer credits and returns, obsolete reserves, valuation and impairment of intangible assets including goodwill, unrealized positions on foreign currency derivatives and reserves for warranty. Actual results could differ from these estimates.
Cash and Cash Equivalents The Company considers cash on deposit and short-term investments with remaining maturities at acquisition of three months or less to be cash and cash equivalents.
Restricted Cash – The Company considers cash to be restricted when withdrawal or general use is legally restricted. The restricted cash balance is associated with borrowings from the delayed draw term loan facility that are restricted in use and were drawn down to fund payments of contingent consideration associated with the acquisition of Apption Labs.
Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash in banks, trade accounts receivable and foreign currency contracts. Credit is extended to customers based on an evaluation of the customer’s financial condition and collateral is not generally required in the Company’s sales transactions.
Accounts Receivable, Net The Company reports its accounts receivable based on the amount that is expected to be collected from its sales to customers. The accounts receivable balance is comprised of the amounts invoiced to customers and reduced by an estimated credit loss and a reserve for estimated returns, discounts and allowances. The Company estimates its credit losses over the contractual term of the receivable and establishes an allowance for credit losses based on historical experience, current available information, and expectations of future economic conditions. The Company mitigates credit loss risk from accounts receivable by assessing customers for credit worthiness, including ongoing credit evaluations and their payment trends. As the risk of loss is determined to be similar based on the credit risk factors, we aggregate receivables on a collective basis when assessing credit losses. Accounts receivable are uncollateralized customer obligations due under normal trade terms. Receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded to income when received. The Company estimates the reserve for returns, discounts and allowances based on historical experience, contractual terms and agreed upon arrangements.
Inventories Inventories consist of finished goods, work-in-process and raw materials. Inventories are stated at the lower of cost or net realizable value, with cost for raw materials and finished goods stated as an approximate cost determined on the first-in first-out basis. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Assessments to value the inventory at the lower of the average cost to purchase the inventory, or the net realizable value of the inventory, are based upon assumptions about future demand, physical deterioration, changes in price levels and market conditions. As a result of the Company’s assessments, when the net realizable value of inventory is less than the carrying value, the inventory cost is written down to the net realizable value and the write down is recorded as a charge to cost of revenue. Inventories include indirect acquisition and production costs that are incurred to bring the inventories to their present condition and location. Inventories are recorded net of reserves for obsolescence. Once established, the original cost of the inventory less the related inventory reserve represents the new cost basis of such products.
Derivative Instruments The Company is exposed to the impact of changes in foreign currency exchange rates, and benchmark interest rates. The Company uses foreign exchange option contracts for the purpose of economically hedging exposure to changes in currency fluctuations between the U.S. Dollar and the Chinese Renminbi, as well as a floating-to-fixed interest rate swap agreement to hedge a portion of the Company's variable rate debt. The Company accounts for these contracts in accordance with FASB ASC 815, Derivatives and Hedging, which requires that all derivatives be recognized at fair value in the accompanying consolidated balance sheets, and that corresponding gains and losses are recognized in other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss. The Company applies hedge
accounting to the interest rate swap agreement and does not apply hedge accounting to the foreign exchange option contracts. For details associated with the Company's dedesignated interest rate swap hedging relationship, see Note 8 – Derivatives.
Property, Plant, and Equipment Property, plant, and equipment is stated at cost less accumulated depreciation and amortization. Additions and betterments to property, plant, and equipment that improve economic performance, extend the useful life, or improve the quality of units or services produced of the component asset are capitalized.
The Company does not depreciate amounts recorded for land. Depreciation and amortization on individual components of property is computed using the straight-line method over the estimated useful lives of the assets as follows:
 Years
Buildings15
Machinery and equipment
5-20
Leasehold improvementsShorter of useful lives or lease term
Office equipment and fixtures
2-10
Vehicles
2-10
Computer hardware and software
3-5
When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are derecognized from the respective accounts. The remaining carrying value along with any proceeds are considered and recognized as a gain or loss within general and administrative expense or selling and marketing expense in the accompanying consolidated statements of operations and comprehensive loss. The cost of maintenance and repairs are expensed as incurred.
The Company capitalizes costs for internal-use software incurred during the application development stage. Software costs related to preliminary project activities and post implementation activities are expensed as incurred. The Company capitalizes costs incurred for software purchases and certain costs related to website development. Capitalized costs related to internal-use software, software purchases and website development are amortized on a straight-line basis over the estimated useful life of the software, not to exceed three years. Capitalized costs less accumulated amortization are included within property, plant, and equipment, net on the accompanying consolidated balance sheets.
Leases – The Company primarily leases office space, vehicles, and equipment from third parties. The Company determines if a contract is a lease at inception. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The lease term begins on the commencement date, which is the date the Company takes possession of the asset, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Certain of the Company’s leases contain renewal options for varying periods, which can be exercised both by mutual agreement and at the Company’s sole discretion. Leases are classified as operating or finance leases based on factors such as the lease term, lease payments, and the economic life, fair value and estimated residual value of the asset. Where leases include options to purchase the leased asset at the end of the lease term, this is assessed as a part of the Company’s lease classification determination. As of December 31, 2023, the Company’s leases have remaining lease terms ranging from 1 month to 14 years.
Under ASC 842, the Company recognizes a right-of-use (“ROU”) asset and lease liability to account for its leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized on the commencement date based on the present value of lease payments over the noncancellable lease term. ROU assets are based on the lease liability and are increased by prepaid lease payments and decreased by lease incentives received. Lease incentives are amortized through the lease asset as reductions of expense over the lease term. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities.
When lease agreements provide allowances for leasehold improvements, the Company assesses whether it is the owner of the leasehold improvements for accounting purposes. When the Company concludes that it is the owner, it capitalizes the leasehold improvement assets and recognizes the related depreciation expense on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset. Additionally, the Company recognizes the amounts of allowances to be received from the lessor as a reduction of the lease liability and the associated right of use asset. When the Company concludes that it is not the owner, the payments that the Company makes towards the leasehold improvements are capitalized and ultimately recognized within the ROU asset upon lease commencement. Amounts recorded within ROU asset are recognized as a component of straight-line rent expense over the term of the lease.
Leases typically contain rent escalations over the lease term. The Company recognizes expense for these leases on a straight-line basis over the lease term. Some of the leases include rent escalations based on inflation indexes. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. Certain leases require the Company to pay taxes, insurance, maintenance and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the ROU assets and lease liabilities to the extent they are variable in nature. These variable lease costs are recognized as a variable lease expense when incurred.
Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term. The depreciable life of the ROU assets and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option.
The Company uses the rate implicit in the lease, when known, to discount future lease payments based on the information available on the commencement date for each lease. If the rate implicit in the lease is not known, the Company uses its incremental borrowing rate as the discount rate. The determination of the incremental borrowing rate requires judgment and is determined using the Company’s current secured borrowing rate, considering various factors aligned with the lease including total lease payments and lease term.
The Company subleases portions of its previous headquarters in three separate phases until the lease expires in 2026. Income from the subleased property is recognized on a straight-line basis and presented as a reduction of costs, allocated against general and administrative expenses in the Company’s accompanying consolidated statements of operations and comprehensive loss. Sublease income for the years ended December 31, 2023, 2022 and 2021 were immaterial.
Deferred Financing Costs Costs incurred in connection with long-term debt financing are deferred and reflected net of notes payable and are amortized to interest expense utilizing the effective-interest method over the term of the related financing. Costs incurred in connection with the refinancing to the delayed draw, revolving credit facility and the amendments to the Receivables Financing Agreement are capitalized and recorded as other long-term assets on the accompanying consolidated balance sheets. These costs are being amortized to interest expense on a straight-line basis over the term of each respective credit facility.
Intangible Assets Finite-lived intangible assets are initially recorded at fair value and presented net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company is currently amortizing acquired intangible assets, including customer relationships, distributor relationships, non-compete arrangements, business trademarks and technology, over periods ranging between 2.5 years and 25 years. Amortization related to acquired patent technology and to capitalized patent costs are recorded as a component of cost of revenue and amortization related to acquired business trademarks, customer relationships, distributor relationships, and non-compete arrangements are recorded in amortization of intangible assets in the accompanying consolidated statement of operations and comprehensive loss.
Goodwill Goodwill represents the excess of consideration transferred over the fair value of tangible and identifiable intangible net assets acquired and the liabilities assumed in a business combination. Substantially all of the Company’s goodwill was recognized in the purchase price allocations when the Company was acquired in 2017 and when Apption Labs was acquired in July 2021, with smaller incremental amounts recognized in subsequent business combinations. Goodwill is not amortized, but is tested for impairment at the reporting unit level annually or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying amount. In conducting the impairment test, the Company first reviews qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The Company currently operates as a single reporting unit under the guidance in Topic 350, Intangibles - Goodwill and Other.
When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more likely than not that carrying value exceeds its fair value, the Company performs a quantitative goodwill impairment test. Under the quantitative goodwill impairment test, if the Company's reporting unit’s carrying amount exceeds its fair value, it will record an impairment charge based on that difference.
To determine reporting unit fair value as part of the quantitative test, we use a weighting of fair values derived from the income approach and the market approach. Under the income approach, the Company projects the future cash flows and discount these cash flows to reflect their relative risk. The cash flows used are consistent with those the Company uses in its internal planning, which reflects actual business trends experienced and its long-term business strategy. Under the market approach, the Company uses the guideline company method to develop valuation multiples and compare its reporting unit to similar publicly traded companies.
In order to further validate the reasonableness of fair value as determined by the income and market approaches described above, a reconciliation to market capitalization is then performed by estimating a reasonable control premium and other market factors. Future changes in the judgments, assumptions and estimates that are used in the impairment testing for goodwill could result in significantly different estimates of fair value.
The Company conducts annual goodwill impairment tests in the fourth quarter of each fiscal year or whenever an indicator of impairment exist.
Impairment of Assets Long-lived assets, including property, plant, and equipment, operating right-of-use assets, and finite-lived intangible assets subject to amortization, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset or asset group. If impairment exists, the impairment loss is measured and recorded based on discounted estimated future cash flows. In estimating future cash flows, assets are grouped at the lowest levels for which there are identifiable cash flows that are largely independent of cash flows from other asset groups.
Fair Value of Financial Instruments For financial assets and liabilities recorded at fair value on a recurring or a non-recurring basis, fair value is the price the Company would receive to sell an asset, or pay to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In the absence of such data, fair value is estimated using internal information consistent with what market participants would use in a hypothetical transaction. In determining fair value, observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. These two types of inputs create the following fair value hierarchy:
Level 1: Quoted prices for identical instruments in active markets.
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3: Significant inputs to the valuation model are unobservable.
The carrying amounts reported in the Company’s accompanying consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued expenses approximate their fair values due to the short-term nature of these instruments. The carrying amounts reported in the Company’s accompanying consolidated balance sheets for the variable rate Revolving Credit Facility (defined below) also approximate its fair value. The fair value of the fixed rate First Lien Term Loan Facility (defined below) is not readily determinable, because the information is not available.
Contingent Consideration The purchase consideration associated with the acquisition of Apption Labs Limited (together with its subsidiaries, "Apption Labs") includes contingent cash consideration payable to the sellers based on achievement of certain revenue, earnings, and successful product launch thresholds for fiscal years 2021, 2022 and 2023. The fair value of contingent consideration obligation is estimated based on the probability assessments with respect to the likelihood of achieving
the performance targets and discount rates consistent with the level of risk of achievement. The Company includes the fair value of this contingent obligation in current and non-current contingent consideration in the accompanying consolidated balance sheets.
At each reporting period, the Company revalues the contingent consideration obligation to its fair value and records increases and decreases in fair value in the change in fair value of contingent consideration in the accompanying consolidated statements of operations and comprehensive loss. Changes in the fair value of the contingent consideration obligation results from changes in discount periods and rates, and changes in probability assumptions with respect to the likelihood of achieving the performance targets. Based on the achievement of the fiscal year 2023 performance targets, the Company expects to pay $15.0 million during the first half of fiscal year 2024.
Revenue Recognition and Sales Returns and Allowances The Company recognizes revenue at the amount to which it expects to be entitled when a contract exists with a customer that specifies the goods and services to be provided at an agreed upon sales price and when the performance obligation is satisfied. The performance obligation for most of the Company’s sales transactions is considered complete when control transfers, which is determined when products are shipped or delivered to the customer depending on the terms of the contract. Sales are made on normal and customary short-term credit terms or upon delivery of point-of-sale transactions.
Shipping charges billed to customers are included in net sales and related shipping costs are included in cost of sales. The company has elected to account for shipping and handling activities performed after control has been transferred to the customer as a fulfillment cost.
The Company enters into contractual arrangements with customers in the form of individual customer orders which specify the goods, quantity, pricing, and associated order terms. The Company does not have long-term contracts that are satisfied over time. Due to the nature of the contracts, no significant judgment exists in relation to the identification of the customer contract or satisfaction of the performance obligation. The Company expenses incremental costs of obtaining a contract due to the short-term nature of the contracts.
The Company has certain contractual programs and practices with customers that can give rise to elements of variable consideration such as customer cooperative advertising and volume incentive rebates. The company estimates the variable consideration using the most likely amount method based on sales and contractual rates with each customer and records the estimated amount of credits for these programs as a reduction to net sales.
The Company has entered into contracts with some customers that allow for credits to be claimed for certain matters of operational compliance or for returns to the retail customer from end consumers. Credits that will be issued associated with these items are estimated using the expected value method and are based on actual historical experience and are recorded as a reduction of revenue at the time of recognition or when circumstances change resulting in a change in estimated returns. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.
The Company also offers assurance-type warranties relating to its products sold to end customers that are accounted for under ASC Topic 460, Guarantees. See Warranty Costs below.
Cost of Revenue – Cost of revenue consists of product costs, including costs of components, costs of products from third-party contract manufacturers of grills, consumables, and accessories, direct and indirect manufacturing costs of wood pellet production, packaging, inbound freight and duties, warehousing and fulfillment, warranty costs, product quality testing and inspection costs, excess and obsolete inventory write-downs, cloud-hosting costs for connected devices, depreciation of tooling and manufacturing equipment, amortization of internal use software and patented technology, and certain employee related expenses.
Warranty Costs – The Company generally provides its customers with a three-year limited warranty on residential model pellet grills and a one-year warranty on accessories for defects in material and workmanship under normal use and maintenance. Warranty liabilities are recorded on the basis of grills and accessories sold and reflect management’s estimate of warranty related costs expected to be incurred during the respective unexpired warranty periods. Management’s estimates of warranty costs are based on historical as well as current product replacement and related delivery costs incurred and warranty policies. Warranty claims expense is included in cost of revenue on the accompanying consolidated statements of operations and comprehensive loss.
On December 14, 2023, the Company announced a voluntary recall of its Flatrock flat top grill which impacted the operating results by $2.6 million due to estimated product returns, recall charges, inventory-write offs, logistics and rework and estimated legal costs for the year ended December 31, 2023.
Sales and Marketing and General and Administrative Sales and marketing expenses consist primarily of the advertising and marketing of its products and personnel-related expenses, including salaries, benefits and stock-based compensation expense, as well as sales incentives and professional services. These costs are included in selling and marketing expenses within operating expenses in the accompanying consolidated statements of operations and comprehensive loss.General and administrative expense consist primarily of personnel-related expenses, including salaries, benefits and stock-based compensation and facilities for executive, finance, accounting, legal, human resources, and information technology functions. General and administrative expense also includes fees for professional services principally comprised of legal, audit, tax and accounting services, and insurance. These costs are included in general and administrative expenses within operating expenses in the accompanying consolidated statements of operations and comprehensive loss.
Advertising Costs The Company incurs non-direct response advertising costs which are expensed as incurred. Advertising expense was $39.8 million, $48.4 million and $58.4 million for the years ended December 31, 2023, 2022 and 2021, respectively, and is included in selling and marketing expense on the accompanying consolidated statements of operations and comprehensive loss.
Research and Development Research and development expenses consist primarily of personnel-related expenses, including salaries, benefits and stock-based compensation expense, as well as professional services, prototype materials and software platform costs. Research and development expense was $11.5 million, $10.8 million and $18.8 million for the years ended December 31, 2023, 2022 and 2021, respectively, and is included in general and administrative expenses on the accompanying consolidated statements of operations and comprehensive loss.
Income Taxes The Company accounts for income taxes using the asset and liability method. The asset and liability method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between tax bases and financial reporting bases of the Company’s assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established on deferred tax assets if it is determined by management that it is more-likely-than-not that such deferred tax assets will not be realized.
Income and loss for tax purposes may differ from the financial statement amounts and may be allocated to the members on a different basis for tax purposes than for financial statement purposes.
The preparation of consolidated financial statements in conformity with ASC 740, Income Taxes, requires the Company to report information regarding its exposure to various tax positions taken by the Company. The Company has determined whether any tax positions have met the recognition threshold and has measured the Company’s exposure to those tax positions. Management believes that the Company has adequately addressed all relevant tax positions and that there are no uncertain tax positions that would require adjustment to the consolidated financial statements to comply with the provisions of the guidance. The Company has elected to record any interest and penalties related to uncertain tax positions within interest expense on the accompanying consolidated statements of operations and comprehensive loss. No interest and penalties related to uncertain tax positions were recorded for either the year-ended December 31, 2023, 2022 or 2021, respectively.
The Company has recorded research and development tax credits that are available for developing new or improved or innovative products, processes, software or inventions.
Equity-Based Compensation The Company recorded stock-based compensation expense related to Class B incentive units awards issued by TGP Holdings LP consistent with the compensation expense associated with the holder of the incentive units. The units granted by TGP Holdings LP have been issued for services performed on behalf of the Company. Therefore, the expense associated with these awards is pushed down to the Company.
The incentive unit grants are measured for expensing purposes at the grant date based on the fair value of the award. The incentive unit grants consisted of time-based vesting units, ordinary performance vesting units, and extraordinary performance vesting units. In connection with the completion of the Company’s IPO, the Company recorded stock-based compensation as a result of the acceleration of vesting of all unvested and outstanding Class B Units.
In addition, the Company awards stock-based compensation to employees and directors under the Traeger, Inc. 2021 Incentive Award Plan (the “2021 Plan”), which is described in Note 15 – Stock-Based Compensation. The Company measures compensation expense for time-based restricted stock unit ("RSU") awards on a straight-line basis over the vesting schedule and for the performance-based RSU and restricted share awards we measure compensation expense on an accelerated attribution basis over the requisite service period. In addition, the Company recognizes forfeitures as they occur, however, when an award is forfeited prior to the vesting date, the Company will recognize an adjustment for the previously recognized expense in the period of the forfeiture, with the exception of performance-based awards for which the requisite service period has been provided.
The Company uses the Monte Carlo pricing model to estimate the fair value of its performance-based RSU and restricted share awards as of the grant date, and uses various simulations of future stock prices through the Stochastic model to estimate the fair value over the remaining term of the performance period as of the grant date.
Comprehensive Income (Loss) The Company's comprehensive loss is determined based on net loss adjusted for gains and losses on foreign currency translation adjustments and the interest rate swap, as well as amortized gains and losses associated with the dedesignated interest rate swap.
Foreign Currency The Company has foreign subsidiaries for which the net sales generated, as well as most of the related expenses directly incurred from those operations, are denominated in local currencies. The functional currency of these foreign subsidiaries that either operate or support these operations are generally the same as the Company's functional currency. Results of operations for the Company’s consolidated foreign subsidiaries are remeasured from the local currency to the U.S. dollar using average exchange rates during the period, while monetary assets and liabilities are remeasured at the exchange rate in effect at the reporting date. Non-monetary assets and liabilities and equity accounts of consolidated foreign subsidiaries are carried at historical values. Resulting gains or losses from remeasuring foreign currency financial statements are recorded in other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss.Foreign currency transaction gains and losses resulting from exchange rate fluctuations on transactions denominated in a currency other than the U.S. Dollar are included in other income (expense), net on the accompanying consolidated statements of operations and comprehensive loss.
Retirement Plan The Company maintains a defined contribution retirement plan (“401(k) plan”) for all full-time employees in the United States. This 401(k) plan allows employees to contribute a portion of their eligible compensation up to the certain maximum dollar limits set by the Internal Revenue Service.
Segment Information The Company concluded that its business is a single reportable segment and operates solely as a consumer products business. This is supported by the Company’s operational structure, which includes sales, design, operations, marketing, and administrative functions focused on the entire product suite rather than individual product categories. The Company’s chief operating decision maker does not regularly review financial information below a level of consolidated Company results to determine resource allocation or to assess performance.
Recently Issued Accounting Standards
As an “emerging growth company,” the Jumpstart Our Business Startups Act (“JOBS Act”), allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. The adoption dates discussed below reflect this election.
New Accounting Pronouncements Recently Adopted
In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial instruments measured at amortized cost and also applies to some off-balance sheet credit exposures. The Company has adopted this
guidance effective January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s accompanying consolidated financial statements and related disclosures.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU is intended to ease the potential accounting and financial reporting burden of reference rate reform, including the expected market transition from the London Interbank Offering Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance provides optional expedients and scope exceptions for transactions if certain criteria are met. These transactions include contract modifications, hedge accounting, and the sale or transfer of debt securities classified as held-to-maturity. The Company adopted this ASU in the second quarter of 2023. Adoption of this new standard did not have a material impact on the Company's accompanying consolidated financial statements and related disclosures.
New Accounting Pronouncements Issued but Not Yet Adopted
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09.
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule of Significant Portion of Net Sales Three customers that accounted for a significant portion of net sales are as follows for the fiscal periods indicated:
 December 31,
 202320222021
Customer A18 %14 %20 %
Customer B16 %16 %17 %
Customer C10 %15 %16 %
Schedule of Estimated Useful Lives of Property Plant and Equipment Depreciation and amortization on individual components of property is computed using the straight-line method over the estimated useful lives of the assets as follows:
 Years
Buildings15
Machinery and equipment
5-20
Leasehold improvementsShorter of useful lives or lease term
Office equipment and fixtures
2-10
Vehicles
2-10
Computer hardware and software
3-5
Property, plant, and equipment consisted of the following (in thousands):
 December 31,
 20232022
Land and buildings$1,972 $1,472 
Machinery and equipment25,292 22,371 
Leasehold improvements11,783 9,538 
Office equipment and fixtures20,580 16,362 
Vehicles2,954 3,122 
Computer software and hardware23,358 21,668 
Property, plant, and equipment, gross
85,938 74,533 
Plus: construction in progress
8,026 19,353 
Less: accumulated depreciation
(51,374)(38,376)
Property, plant, and equipment, net$42,591 $55,510 
v3.24.0.1
REVENUE (Tables)
12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table disaggregates revenue by product category, geography, and sales channel for the fiscal periods indicated (in thousands):
 Year-ended December 31,
Revenue by product category202320222021
Grills$299,346 $355,441 $544,200 
Consumables114,901 131,342 136,216 
Accessories191,635 169,118 105,129 
Total revenue$605,882 $655,901 $785,545 
 Year-ended December 31,
Revenue by geography202320222021
North America$536,496 $598,839 $737,402 
Rest of world69,386 57,062 48,143 
Total revenue$605,882 $655,901 $785,545 
 Year-ended December 31,
Revenue by sales channel202320222021
Retail$451,759 $502,884 $689,437 
Direct to consumer154,123 153,017 96,108 
Total revenue$605,882 $655,901 $785,545 
v3.24.0.1
LEASES (Tables)
12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Lease, Cost
The following table presents the components of lease costs (in thousands):
Year-ended December 31,
20232022
Operating lease costs$6,293 $6,476 
Variable lease costs1,311 1,561 
The following table presents lease terms and discount rates:
Year-ended December 31,
20232022
Weighted average remaining lease term10.674.54
Weighted average discount rate7.83 %4.28 %
The following table presents supplemental cash flow information (in thousands):
Year-ended December 31,
20232022
Cash payments used in operating cash flows from lease arrangements$6,112 $6,313 
Right-of-use assets obtained in exchange for new operating lease liabilities$40,589 $21,525 
Derecognition of right-of-use assets due to reassessment of lease term$(33)$(596)
Lessee, Operating Lease, Liability, Maturity
At December 31, 2023, future lease payments (receipts) under operating leases were as follows (in thousands):
Operating Lease LiabilitiesOperating Sublease
2024$5,865 $(1,979)
20255,465 (2,029)
20264,411 (1,035)
20273,461 — 
20283,419 — 
Thereafter28,323 — 
Total lease payments (receipts)50,944 (5,043)
Less: Effect of discounting to net present value(18,194)
Present value of lease liabilities$32,750 
v3.24.0.1
ACCOUNTS RECEIVABLES, NET (Tables)
12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Accounts Receivable
Accounts receivables, net consists of the following (in thousands):
 December 31,
 20232022
Trade accounts receivable$77,299 $56,822 
Allowance for expected credit losses
(549)(867)
Reserve for returns, discounts and allowances(16,812)(13,905)
Total accounts receivable, net$59,938 $42,050 
v3.24.0.1
INVENTORIES (Tables)
12 Months Ended
Dec. 31, 2023
Inventory Disclosure [Abstract]  
Schedule of Inventories
Inventories consisted of the following (in thousands):
December 31,
20232022
Raw materials$6,645 $7,110 
Work in process9,798 12,155 
Finished goods79,732 134,206 
Inventories$96,175 $153,471 
v3.24.0.1
ACCRUED EXPENSES (Tables)
12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses
Accrued expenses consisted of the following (in thousands):
 December 31,
 20232022
Accrual for inventories in-transit$9,927 $7,987 
Warranty accrual7,240 7,368 
Accrued compensation and bonus6,935 4,499 
Other28,839 32,441 
Accrued expenses$52,941 $52,295 
Schedule of Changes in Warranty Liability
The changes in the Company’s warranty accrual, included in accrued expenses on the accompanying consolidated balance sheets, were as follows for the fiscal periods indicated (in thousands):
 December 31,
 202320222021
Warranty accrual, beginning of period$7,368 $8,326 $6,728 
Warranty claims(6,262)(7,601)(7,693)
Warranty costs accrued6,134 6,643 9,291 
Warranty accrual, end of period$7,240 $7,368 $8,326 
v3.24.0.1
DERIVATIVES (Tables)
12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Interest Rate Derivatives
December 31,
202320222021
Gross asset fair value
$16,248 $23,410 $— 
Gross liability fair value
— — — 
Net asset fair value
$16,248 $23,410 $— 
Schedule of Foreign Exchange Contracts
The gross and net balances from foreign currency contract positions were as follows (in thousands):
 December 31,
 20232022
Gross Asset Fair Value$76 $— 
Gross Liability Fair Value— 1,001 
Net Fair Value$76 $1,001 
Schedule of Gain (Loss) from Foreign Currency Contracts
Gains (losses) from foreign currency contracts were recorded in other income (expense), net within the accompanying consolidated statements of operations and comprehensive loss as follows for the fiscal periods indicated (in thousands):
 December 31,
 202320222021
Realized gain (loss)$(3,080)$(1,527)$8,199 
Unrealized gain (loss)1,033 (2,396)(4,821)
Total gain (loss)$(2,047)$(3,923)$3,378 
v3.24.0.1
FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Financial Instruments Measured at Fair Value on Recurring Basis
The following table presents information about the fair value measurement of the Company’s financial instruments (in thousands):
  
As of December 31,
Financial Instruments Recorded at Fair Value on a Recurring Basis:Fair Value Measurement Level20232022
Assets:
Derivative assets—foreign currency contracts (1)
2$76 $— 
Derivative assets—interest rate swap contract (2)
216,248 23,410 
Total assets$16,324 $23,410 
Liabilities:
Derivative liabilities—foreign currency contracts (3)
2$— $1,001 
Contingent consideration—earn out (4)
315,000 22,747 
Total liabilities$15,000 $23,748 
(1)Included in prepaid expenses and other current assets in the accompanying consolidated balance sheets.
(2)Included in prepaid expenses and other current assets and other non-current assets in the accompanying consolidated balance sheets.
(3)Included in other current liabilities in the accompanying consolidated balance sheets.
(4)Included in current and non-current contingent consideration in the accompanying consolidated balance sheets.
Schedule of Fair Value Contingent Consideration
The following table presents the fair value of contingent consideration (in thousands):
Year-ended December 31,
202320222021
Contingent consideration, beginning of period
$22,747 $25,300 $— 
Acquisition date fair value of contingent consideration
— — 21,500 
Payments of contingent consideration(12,445)(12,555)— 
Change in fair value of contingent consideration
4,698 10,002 3,800 
Contingent consideration, end of period
$15,000 $22,747 $25,300 
Schedule Of Fair Value Of Contingent Consideration
The following table reconciles the changes in fair value of contingent consideration and payments of contingent consideration to the accompanying consolidated statement of cash flows and consolidated statements of operations and comprehensive loss (in thousands):
Year-ended December 31,
202320222021
Total payment of contingent consideration
$12,445 $12,555 $— 
Less: amounts paid in excess of the acquisition date fair value of the contingent consideration (1)
(220)(3,280)— 
Acquisition date fair value of contingent consideration (2)
$12,225 $9,275 $— 
Change in fair value of contingent consideration (3)
$4,698 $10,002 $3,800 
Less: amounts paid in excess of the acquisition date fair value of the contingent consideration (1)
(220)(3,280)— 
Net change in fair value of contingent consideration (4)
$4,478 $6,722 $3,800 
(1)Included in the change in fair value of contingent consideration as an operating activity in the accompanying consolidated statement of cash flows.
(2)Agrees to the payments of acquisition related contingent consideration as a financing activity within the accompanying consolidated statement of cash flows.
(3)Agrees to the change in fair value of contingent consideration in the accompanying consolidated statement of operations and comprehensive loss.
(4)Agrees to the change in fair value of contingent consideration as an operating activity in the accompanying consolidated statement of cash flows.
Schedule of Financial Instruments Recorded at Carrying Amount
The following financial instruments are recorded at their carrying amount (in thousands):
 
As of December 31, 2023
As of December 31, 2022
Financial Instruments Recorded at Carrying Amount:Carrying
Amount
Estimated
Fair Value
Carrying
Amount
Estimated
Fair Value
Liabilities:
Debt—Credit Facilities (1)
$403,825 $357,498 $476,070 $393,236 
Total liabilities$403,825 $357,498 $476,070 $393,236 
(1)Included in the current portion of notes payable and notes payable, net of current portion in the accompanying consolidated balance sheets. Due to the unobservable nature of the inputs these financial instruments are considered to be Level 3 instruments in the fair value hierarchy
v3.24.0.1
PROPERTY, PLANT AND EQUIPMENT (Tables)
12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Property Plant and Equipment Depreciation and amortization on individual components of property is computed using the straight-line method over the estimated useful lives of the assets as follows:
 Years
Buildings15
Machinery and equipment
5-20
Leasehold improvementsShorter of useful lives or lease term
Office equipment and fixtures
2-10
Vehicles
2-10
Computer hardware and software
3-5
Property, plant, and equipment consisted of the following (in thousands):
 December 31,
 20232022
Land and buildings$1,972 $1,472 
Machinery and equipment25,292 22,371 
Leasehold improvements11,783 9,538 
Office equipment and fixtures20,580 16,362 
Vehicles2,954 3,122 
Computer software and hardware23,358 21,668 
Property, plant, and equipment, gross
85,938 74,533 
Plus: construction in progress
8,026 19,353 
Less: accumulated depreciation
(51,374)(38,376)
Property, plant, and equipment, net$42,591 $55,510 
v3.24.0.1
GOODWILL AND INTANGIBLES (Tables)
12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill Changes in the carrying amount of goodwill during the fiscal years ended December 31, 2023 and 2022, is as follows (in thousands):
 December 31,
 20232022
Goodwill, beginning of period
$74,725 $297,047 
Goodwill impairment
— (222,322)
Goodwill, end of period
$74,725 $74,725 
Schedule of Finite-Lived Intangible Assets
Intangible assets consisted of the following at the dates indicated below (dollars in thousands):
 December 31, 2023
 Weighted
Average Life
(in years)
Gross
Carrying
Amount
Accumulated
Amortization
Net Book
Value
Customer relationships17$378,394 $(139,463)$238,930 
Trademark24281,700 (70,601)211,099 
Technology536,300 (19,731)16,569 
Distributor relationships82,400 (750)1,650 
Non-compete arrangements2.5700 (700)— 
Favorable lease position851 (42)
Other intangible assets112,920 (632)2,288 
Total$702,464 $(231,919)$470,546 
 December 31, 2022
 Weighted
Average Life
(in years)
Gross
Carrying
Amount
Accumulated
Amortization
Net Book
Value
Customer relationships17$378,394 $(116,857)$261,537 
Trademark24281,700 (58,271)223,429 
Technology536,300 (12,700)23,600 
Distributor relationships82,400 (450)1,950 
Non-compete arrangements2.5700 (420)280 
Favorable lease position851 (35)16 
Other intangible assets112,519 (473)2,046 
Total$702,064 $(189,206)$512,858 
Schedule of Estimated Annual Amortization Expense
Estimated annual amortization expense for the next five years and thereafter for the years ending December 31, (in thousands): 
2024$42,305 
202541,863 
202638,604 
202735,356 
202835,356 
Thereafter276,150 
Total$469,634 
v3.24.0.1
NOTES PAYABLE (Tables)
12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Consolidated Outstanding Debt
The Company’s corporate level consolidated outstanding debt is as follows (dollars in thousands):
 December 31,
Interest rate as of December 31, 2023
 20232022
First lien credit agreement:
First lien term loan facility, matures June 2028
$403,825 $404,070 8.7 %
Revolving credit facility, matures June 2026
— 72,000 8.7 %
Total notes payable403,825 476,070 
Less: unamortized deferred financing costs(6,275)(7,712)
Less: current maturities(250)(250)
Notes payable, net of current portion$397,300 $468,108 
Schedule of Future Maturities of Notes Payable
Future maturities of the notes payable are as follows as of December 31, (in thousands):
2024$250 
2025250 
2026250 
2027
250 
2028
402,825 
Thereafter— 
Total$403,825 
v3.24.0.1
COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Recorded Unconditional Purchase Obligations
The Company has unconditional purchase commitments for cloud-hosting costs, software licenses, and other professional fees. Future minimum payments under these unconditional purchase commitments are as follows as of December 31, (in thousands):
2024$4,396 
20252,099 
2026253 
2027— 
2028— 
Thereafter— 
Total$6,748 
v3.24.0.1
EQUITY-BASED COMPENSATION (Tables)
12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share-based Payment Arrangement, Outstanding Award, Activity
A summary of the time-based restricted stock unit activity for the year ended December 31, 2023 was as follows:
UnitsWeighted Average Grant Date Fair Value
Outstanding at December 31, 2022
5,923,835 $6.73 
Granted4,638,063 3.90
Vested(2,203,161)7.58 
Forfeited(260,077)7.68
Outstanding at December 31, 2023
8,098,660 $4.84 
A summary of the performance-based restricted stock unit activity during the year ended December 31, 2023 was as follows:
UnitsWeighted Average Grant Date Fair Value
Outstanding at December 31, 2022
4,714,242 $12.59 
Modified
(1,037,728)15.13
Granted— — 
Vested— — 
Forfeited(3,676,514)11.87 
Outstanding at December 31, 2023
— $— 
A summary of the performance-based restricted share activity for the year ended December 31, 2023 was as follows:
Shares
Weighted Average Grant Date Fair Value
Outstanding at December 31, 2022
— $— 
Granted1,037,728 15.58 
Vested— — 
Forfeited— — 
Outstanding at December 31, 2023
1,037,728 $15.58 
Schedule of Equity-Based Compensation, Expensed and Capitalized Amount
The Company's stock-based compensation was classified as follows in the accompanying consolidated statements of operations and comprehensive loss for the fiscal periods indicated (in thousands):
Year-ended December 31,
202320222021
Cost of revenue$74 $202 $947 
Sales and marketing4,115 3,796 16,401 
General and administrative49,014 83,699 63,764 
Total stock-based compensation
$53,203 $87,697 $81,112 
v3.24.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of Income (loss) before Income Taxes
The components of loss before income taxes were as follows for the fiscal periods indicated (in thousands):
Year-ended
December 31,
202320222021
Domestic$(96,517)$(380,014)$(83,172)
Foreign14,100 (940)(7,106)
Loss before provision for income taxes
$(82,417)$(380,954)$(90,278)
Schedule of Provision for Income Taxes
Provision for income taxes consisted of the following components for the fiscal periods indicated (in thousands):
 Year-ended
December 31,
 202320222021
Current:
Federal$12 $241 $124 
State95 208 
Foreign4,018 2,247 2,095 
Total current tax expense$4,125 $2,496 $2,427 
Deferred expense:
Federal$(26)$— $
State26 — — 
Foreign(2,140)(1,310)(939)
Total deferred tax benefit$(2,140)$(1,310)$(938)
Provision for income taxes
$1,985 $1,186 $1,489 
Schedule of Effective Income Tax Rate Reconciliation
Reconciliations of the differences between the effective and statutory income tax rates are as follows for the fiscal periods indicated:
 Year-ended
December 31,
 202320222021
Federal statutory rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit0.3 3.2 3.7 
Foreign rate differential(0.5)(0.1)(2.0)
Stock-based compensation
(15.3)(3.8)(14.3)
Global intangible low-taxed income(5.3)(0.6)(1.6)
Non-deductible items(2.3)(1.1)(1.1)
Research and development credits1.0 0.1 0.6 
Change in partnership investment15.7 (0.9)(3.0)
Changes in valuation allowance(25.6)(19.5)(5.4)
Changes in tax rates0.5 — (0.7)
Return to provision
3.2 — — 
Other4.9 1.4 1.0 
(2.4)%(0.3)%(1.7)%
Schedule of Amount of Comprised Deferred Tax Assets, Net
The amounts that comprised deferred income tax assets, net are as follows for the fiscal periods indicated (in thousands):
 Year-ended
December 31,
 202320222021
Deferred tax assets:
Net operating loss carryforwards$33,706 $30,785 $19,483 
Sec. 163(j) interest17,032 9,948 3,342 
Tax credits2,033 1,516 1,206 
Stock-based compensation
— 68 
Property and equipment76 78 — 
Deferred compensation— — 722 
Operating lease liabilities78 168 — 
Investments66,367 55,952 340 
Other365 180 — 
Less: valuation allowance(119,231)(98,211)(25,092)
Total deferred tax assets$426 $417 $69 
Deferred tax liabilities:
Property and equipment$(809)$(645)$(229)
Intangible assets(7,769)(9,971)(11,513)
Investments— — — 
Operating right-of-use assets(84)(171)— 
Total deferred tax liabilities$(8,662)$(10,787)$(11,742)
Net deferred tax liability
$(8,236)$(10,370)$(11,673)
Schedule of Unrecognized Tax Benefits Roll Forward
The following summarizes activity related to unrecognized tax benefits for the fiscal periods indicated (in thousands):
Year-ended
December 31,
202320222021
Unrecognized benefit—beginning of the year$1,056 $908 $— 
Gross increases—current period positions184 196 908 
Gross increases—prior period positions
179 — — 
Gross decreases—prior period positions— (48)— 
Unrecognized benefit—end of the year$1,419 $1,056 $908 
v3.24.0.1
EARNINGS (LOSS) PER SHARE (Tables)
12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted EPS Attributable for Common Stockholders
The following table sets forth the computation of the Company’s basic and diluted EPS attributable to common stockholders for the fiscal periods indicated (in thousands, except share and per share amounts):
Year-ended December 31,
202320222021
Net loss
$(84,402)$(382,140)$(91,767)
Weighted-average common shares outstanding—basic
123,726,252 119,698,776 112,374,669 
Effect of dilutive securities:
Restricted stock units and performance shares
— — — 
Weighted-average common shares outstanding—diluted
123,726,252 119,698,776 112,374,669 
Loss per share
Basic and diluted
$(0.68)$(3.19)$(0.82)
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings (Loss) Per Share
The following table includes the number of units and shares that may be dilutive common shares in the future, and were not included in the computation of diluted loss per share because the effect was anti-dilutive for the fiscal periods indicated:
Year-ended December 31,
202320222021
Restricted stock units and performance shares
8,098,660 10,638,077 12,208,496 
v3.24.0.1
RESTRUCTURING PLAN (Tables)
12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs
A summary of the activity in the restructuring reserve in connection with the Company's 2022 restructuring plan recorded in accrued expenses within the accompanying consolidated balance sheets as follows (in thousands):
Employee Related CostsContract Exit Costs
Balance at December 31, 2021
$— $— 
Net additions charged to expense2,262 7,506 
Cash payments against reserve(2,127)(4,553)
Balance at December 31, 2022
$135 $2,953 
Net additions charged to expense— 225 
Cash payments against reserve(135)(3,178)
Balance at December 31, 2023
$— $— 
v3.24.0.1
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
Jul. 31, 2021
Jul. 28, 2021
Business Acquisition [Line Items]        
Common unit outstanding (in shares)     108,724,422  
Common stock outstanding (in shares) 125,865,303 122,624,414   108,724,387
Previously Reported        
Business Acquisition [Line Items]        
Common unit outstanding (in shares)     10  
IPO        
Business Acquisition [Line Items]        
Share price (in dollars per share)       $ 18.00
v3.24.0.1
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION - Revisions to Prior Consolidated Financial Statements (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current Assets      
Inventories $ 96,175 $ 153,471  
Assets, Current 216,380 274,238  
Assets 860,759 946,715  
Current Liabilities      
Accrued expenses 52,941 52,295  
Liabilities 569,411 611,846  
Equity [Abstract]      
Accumulated deficit (654,877) (570,475)  
Equity, Attributable to Parent 291,348 334,869  
Total liabilities and stockholders' equity 860,759 946,715  
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS      
Cost of revenue 382,325 427,129 $ 484,780
Gross Profit 223,557 228,772 300,765
Sales and marketing 108,727 130,688 165,180
General and administrative 129,800 166,824 158,555
Operating Income (Loss) (55,447) (345,942) (61,149)
Loss before provision for income taxes (82,417) (380,954) (90,278)
Net loss $ (84,402) $ (382,140) $ (91,767)
Earnings (loss) per share - Basic (in dollars per share) $ (0.68) $ (3.19) $ (0.82)
Earnings (loss) per share - Diluted (in dollars per share) $ (0.68) $ (3.19) $ (0.82)
Comprehensive loss $ (96,725) $ (358,791) $ (91,853)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS      
Net loss (84,402) (382,140) (91,767)
Inventories 57,295 (11,931) (67,826)
Accounts payable and accrued expenses $ 2,374 $ (28,211) $ 19,182
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration Risks (Details) - Customer Concentration Risk
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer, Product and Service Benchmark | Customer A      
Concentration Risk [Line Items]      
Concentration risk percentage 18.00% 14.00% 20.00%
Revenue from Contract with Customer, Product and Service Benchmark | Customer B      
Concentration Risk [Line Items]      
Concentration risk percentage 16.00% 16.00% 17.00%
Revenue from Contract with Customer, Product and Service Benchmark | Customer C      
Concentration Risk [Line Items]      
Concentration risk percentage 10.00% 15.00% 16.00%
Accounts Receivable | Customer A      
Concentration Risk [Line Items]      
Concentration risk percentage 37.00% 31.00%  
Accounts Receivable | Customer B      
Concentration Risk [Line Items]      
Concentration risk percentage 11.00% 20.00%  
Accounts Receivable | Customer C      
Concentration Risk [Line Items]      
Concentration risk percentage 6.00% 8.00%  
Accounts Receivable | Customer D      
Concentration Risk [Line Items]      
Concentration risk percentage 14.00% 4.00%  
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives of Property Plant and Equipment (Details)
Dec. 31, 2023
Building  
Property, Plant and Equipment [Line Items]  
Estimated useful lives (in years) 15 years
Machinery and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives (in years) 5 years
Machinery and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives (in years) 20 years
Office equipment and fixtures | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives (in years) 2 years
Office equipment and fixtures | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives (in years) 10 years
Vehicles | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives (in years) 2 years
Vehicles | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives (in years) 10 years
Computer software and hardware | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives (in years) 3 years
Computer software and hardware | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives (in years) 5 years
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Concentration Risk [Line Items]        
Property, plant, and equipment, net $ 42,591,000 $ 42,591,000 $ 55,510,000  
Goodwill impairment 0 0 222,322,000 $ 0
Advertising expense   39,800,000 48,400,000 58,400,000
Research and development expense   11,500,000 10,800,000 18,800,000
Unrecognized tax benefits, income tax penalties and interest expense   0 0 0
Net foreign exchange gain (loss)   (100,000) (3,200,000) $ (1,400,000)
Operating lease right-of-use assets 48,188,000 48,188,000 $ 13,854,000  
Operating lease, liability $ 32,750,000 $ 32,750,000    
Residential Model Pellet Grills        
Concentration Risk [Line Items]        
Standard product warranty   3 years    
Accessories For Defects In Material And Workmanship        
Concentration Risk [Line Items]        
Standard product warranty   1 year    
Software and Software Development Costs        
Concentration Risk [Line Items]        
Estimated useful lives (in years) 3 years 3 years    
Minimum        
Concentration Risk [Line Items]        
Lessee, operating lease, remaining lease term 1 month 1 month    
Finite-lived intangibles, weighted average useful life (in years) 2 years 6 months 2 years 6 months    
Maximum        
Concentration Risk [Line Items]        
Lessee, operating lease, remaining lease term 14 years 14 years    
Finite-lived intangibles, weighted average useful life (in years) 25 years 25 years    
Customer Concentration Risk | Customer A | Accounts Receivable        
Concentration Risk [Line Items]        
Concentration risk percentage   37.00% 31.00%  
Customer Concentration Risk | Customer B | Accounts Receivable        
Concentration Risk [Line Items]        
Concentration risk percentage   11.00% 20.00%  
Customer Concentration Risk | Customer C | Accounts Receivable        
Concentration Risk [Line Items]        
Concentration risk percentage   6.00% 8.00%  
v3.24.0.1
REVENUE (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Total revenue $ 605,882 $ 655,901 $ 785,545
Retail      
Disaggregation of Revenue [Line Items]      
Total revenue 451,759 502,884 689,437
Direct to consumer      
Disaggregation of Revenue [Line Items]      
Total revenue 154,123 153,017 96,108
North America      
Disaggregation of Revenue [Line Items]      
Total revenue 536,496 598,839 737,402
Rest of world      
Disaggregation of Revenue [Line Items]      
Total revenue 69,386 57,062 48,143
Grills      
Disaggregation of Revenue [Line Items]      
Total revenue 299,346 355,441 544,200
Consumables      
Disaggregation of Revenue [Line Items]      
Total revenue 114,901 131,342 136,216
Accessories      
Disaggregation of Revenue [Line Items]      
Total revenue $ 191,635 $ 169,118 $ 105,129
v3.24.0.1
LEASES - Narrative (Details)
12 Months Ended
Dec. 08, 2023
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Nov. 30, 2020
ft²
Lessee, Lease, Description [Line Items]        
Right-of-use assets obtained in exchange for new operating lease liabilities $ 37,700,000 $ 40,589,000 $ 21,525,000  
Additional lease liability 21,800,000      
Leasehold improvements 14,900,000      
Prepaid rent expense $ 1,000,000      
Salt Lake City, UT        
Lessee, Lease, Description [Line Items]        
Area leased | ft²       94,000
v3.24.0.1
LEASES - Lease, Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Operating lease costs $ 6,293 $ 6,476
Variable lease costs $ 1,311 $ 1,561
Weighted average remaining lease term 10 years 8 months 1 day 4 years 6 months 14 days
Weighted average discount rate 7.83% 4.28%
v3.24.0.1
LEASES - Lessee, Operating Lease, Liability, Maturity (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Operating Lease Liabilities  
2024 $ 5,865
2025 5,465
2026 4,411
2027 3,461
2028 3,419
Thereafter 28,323
Total lease payments (receipts) 50,944
Less: Effect of discounting to net present value (18,194)
Present value of lease liabilities 32,750
Operating Sublease  
2024 (1,979)
2025 (2,029)
2026 (1,035)
2027 0
2028 0
Thereafter 0
Total lease payments (receipts) $ (5,043)
v3.24.0.1
LEASES - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 08, 2023
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating Lease, Payments   $ 6,112 $ 6,313
Right-of-use assets obtained in exchange for new operating lease liabilities $ 37,700 40,589 21,525
Derecognition of right-of-use assets due to reassessment of lease term   $ (33) $ (596)
v3.24.0.1
ACCOUNTS RECEIVABLES, NET - (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Trade accounts receivable $ 77,299 $ 56,822
Allowance for expected credit losses (549) (867)
Reserve for returns, discounts and allowances (16,812) (13,905)
Total accounts receivable, net $ 59,938 $ 42,050
v3.24.0.1
INVENTORIES (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Inventory Disclosure [Abstract]    
Raw materials $ 6,645 $ 7,110
Work in process 9,798 12,155
Finished goods 79,732 134,206
Inventories 96,175 153,471
Inventory adjustments $ 3,100 $ 1,300
v3.24.0.1
ACCRUED EXPENSES - Schedule of Accrued Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Accrual for inventories in-transit $ 9,927 $ 7,987    
Warranty accrual 7,240 7,368 $ 8,326 $ 6,728
Accrued compensation and bonus 6,935 4,499    
Other 28,839 32,441    
Accrued expenses $ 52,941 $ 52,295    
v3.24.0.1
ACCRUED EXPENSES - Change in Warranty Liability (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]      
Warranty accrual, beginning of period $ 7,368 $ 8,326 $ 6,728
Warranty claims (6,262) (7,601) (7,693)
Warranty costs accrued 6,134 6,643 9,291
Warranty accrual, end of period $ 7,240 $ 7,368 $ 8,326
v3.24.0.1
DERIVATIVES - Narrative (Details) - USD ($)
Dec. 31, 2023
Dec. 08, 2023
Feb. 25, 2022
Derivative [Line Items]      
Long-term debt $ 403,825,000    
First Lien Term Loan Facility | Secured Debt      
Derivative [Line Items]      
Long-term debt     $ 379,200,000
Interest Rate Swap | Cash Flow Hedging      
Derivative [Line Items]      
Notional amount $ 11,500,000 $ 21,300,000  
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument      
Derivative [Line Items]      
Notional amount     $ 379,200,000
Fixed interest rate     2.08%
v3.24.0.1
DERIVATIVES - Summary of Realized Losses and Unrealized Gains On Interest Rate Swaps (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]      
Gross asset fair value $ (31,275) $ (27,885) $ (26,646)
Interest Rate Contract | Level 2      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative liability 0 0 0
Net asset fair value 16,248 23,410 0
Interest Rate Contract | Level 2 | Fair Value, Recurring      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative asset $ 16,248 $ 23,410 $ 0
v3.24.0.1
DERIVATIVES - Summary of Gross and Net Fair Value of Foreign Currency Contracts (Details) - Foreign Currency Contracts - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Derivatives, Fair Value [Line Items]    
Gross Asset Fair Value $ 76 $ 0
Gross Liability Fair Value 0 1,001
Net Fair Value $ 76 $ 1,001
v3.24.0.1
DERIVATIVES - Summary of Gains (Losses) from Foreign Currency Contracts (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Derivative [Line Items]      
Total gain (loss) $ (100) $ (3,200) $ (1,400)
Foreign Currency Contracts      
Derivative [Line Items]      
Realized gain (loss) (3,080) (1,527) 8,199
Unrealized gain (loss) 1,033 (2,396) (4,821)
Total gain (loss) $ (2,047) $ (3,923) $ 3,378
v3.24.0.1
FAIR VALUE MEASUREMENTS - Summary of Financial Instruments Measured at Fair value (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Level 2 | Interest Rate Contract      
Liabilities:      
Derivative liability $ 0 $ 0 $ 0
Fair Value, Recurring      
Assets:      
Total assets 16,324 23,410  
Liabilities:      
Total liabilities 15,000 23,748  
Fair Value, Recurring | Level 2 | Interest Rate Contract      
Assets:      
Derivative asset 16,248 23,410 $ 0
Fair Value, Recurring | Level 2 | Foreign Currency Contracts      
Assets:      
Derivative asset $ 76 0  
Liabilities:      
Derivative liability   1,001  
Fair Value, Recurring | Level 3      
Liabilities:      
Contingent consideration   $ 22,747  
v3.24.0.1
FAIR VALUE MEASUREMENTS - Narrative (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Apption Labs Limited  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Business combination, contingent consideration, undiscounted liability $ 15.0
v3.24.0.1
FAIR VALUE MEASUREMENTS - Schedule of Fair value Consideration Payments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Acquisition date fair value of contingent consideration $ 0 $ 0 $ 21,500
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Change in fair value of contingent consideration Change in fair value of contingent consideration  
Level 3      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning balance $ 22,747 $ 25,300 0
Payments of contingent consideration (12,445) (12,555) 0
Change in fair value of contingent consideration 4,698 10,002 3,800
Ending balance $ 15,000 $ 22,747 $ 25,300
v3.24.0.1
FAIR VALUE MEASUREMENTS - Reconciliation of Changes to Contingent Consideration (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Fair Value Disclosures [Abstract]      
Total payment of contingent consideration $ 12,445 $ 12,555 $ 0
Less: amounts paid in excess of the acquisition date fair value of the contingent consideration (220) (3,280) 0
Acquisition date fair value of contingent consideration 12,225 9,275 0
Change in fair value of contingent consideration 4,698 10,002 3,800
Change in fair value of contingent consideration $ 4,478 $ 6,722 $ 3,800
v3.24.0.1
FAIR VALUE MEASUREMENTS - Summary of Financial Instruments Reported at Carrying Amount (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Carrying Amount    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total liabilities $ 403,825 $ 476,070
Carrying Amount | First Lien Term Loan Facility    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt 403,825 476,070
Carrying Amount | First Lien and Second Lien Agreement    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt   476,070
Estimated Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total liabilities 357,498 393,236
Estimated Fair Value | Level 3 | First Lien Term Loan Facility    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt $ 357,498 393,236
Estimated Fair Value | Level 3 | First Lien and Second Lien Agreement    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt   $ 393,236
v3.24.0.1
PROPERTY, PLANT AND EQUIPMENT- Property Plant and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Less: accumulated depreciation $ (51,374) $ (38,376)
Property, plant, and equipment, net 42,591 55,510
Depreciable Property, Plant and Equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 85,938 74,533
Land and buildings    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 1,972 1,472
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 25,292 22,371
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 11,783 9,538
Office equipment and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 20,580 16,362
Vehicles    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 2,954 3,122
Computer software and hardware    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 23,358 21,668
Plus: construction in progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 8,026 $ 19,353
v3.24.0.1
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]      
Depreciation of property, plant, and equipment in cost of sales $ 7.1 $ 6.2 $ 4.0
Depreciation of property, plant, and equipment in general and administrative expense $ 7.9 $ 7.6 $ 5.2
v3.24.0.1
GOODWILL AND INTANGIBLES - Carrying Amount of Goodwill (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Goodwill [Roll Forward]        
Goodwill, beginning of period   $ 74,725,000 $ 297,047,000  
Goodwill impairment $ 0 0 (222,322,000) $ 0
Goodwill, end of period $ 74,725,000 $ 74,725,000 $ 74,725,000 $ 297,047,000
v3.24.0.1
GOODWILL AND INTANGIBLES - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill $ 74,725 $ 74,725 $ 297,047
Cost, amortization 7,200 7,200 4,000
Amortization of intangible assets $ 35,600 $ 35,600 $ 34,400
v3.24.0.1
GOODWILL AND INTANGIBLES - Finite and Indefinite Lived Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangibles, gross carrying amount $ 702,464 $ 702,064
Finite-lived intangibles, accumulated amortization (231,919) (189,206)
Finite-lived intangibles, net book value $ 470,546 $ 512,858
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangibles, weighted average useful life (in years) 17 years 17 years
Finite-lived intangibles, gross carrying amount $ 378,394 $ 378,394
Finite-lived intangibles, accumulated amortization (139,463) (116,857)
Finite-lived intangibles, net book value $ 238,930 $ 261,537
Trademark    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangibles, weighted average useful life (in years) 24 years 24 years
Finite-lived intangibles, gross carrying amount $ 281,700 $ 281,700
Finite-lived intangibles, accumulated amortization (70,601) (58,271)
Finite-lived intangibles, net book value $ 211,099 $ 223,429
Technology    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangibles, weighted average useful life (in years) 5 years 5 years
Finite-lived intangibles, gross carrying amount $ 36,300 $ 36,300
Finite-lived intangibles, accumulated amortization (19,731) (12,700)
Finite-lived intangibles, net book value $ 16,569 $ 23,600
Distributor relationships    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangibles, weighted average useful life (in years) 8 years 8 years
Finite-lived intangibles, gross carrying amount $ 2,400 $ 2,400
Finite-lived intangibles, accumulated amortization (750) (450)
Finite-lived intangibles, net book value $ 1,650 $ 1,950
Non-compete arrangements    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangibles, weighted average useful life (in years) 2 years 6 months 2 years 6 months
Finite-lived intangibles, gross carrying amount $ 700 $ 700
Finite-lived intangibles, accumulated amortization (700) (420)
Finite-lived intangibles, net book value $ 0 $ 280
Favorable lease position    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangibles, weighted average useful life (in years) 8 years 8 years
Finite-lived intangibles, gross carrying amount $ 51 $ 51
Finite-lived intangibles, accumulated amortization (42) (35)
Finite-lived intangibles, net book value $ 9 $ 16
Other intangible assets    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangibles, weighted average useful life (in years) 11 years 11 years
Finite-lived intangibles, gross carrying amount $ 2,920 $ 2,519
Finite-lived intangibles, accumulated amortization (632) (473)
Finite-lived intangibles, net book value $ 2,288 $ 2,046
v3.24.0.1
GOODWILL AND INTANGIBLES - Estimated Annual Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangibles, net book value $ 470,546 $ 512,858
Excluding Patents Pending Not Yet Amortized    
Finite-Lived Intangible Assets [Line Items]    
2024 42,305  
2025 41,863  
2026 38,604  
2027 35,356  
2028 35,356  
Thereafter 276,150  
Finite-lived intangibles, net book value $ 469,634  
v3.24.0.1
NOTES PAYABLE - Consolidated Outstanding Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Less: unamortized deferred financing costs $ (6,275) $ (7,712)
Less: current maturities (250) (250)
Notes payable, net of current portion 397,300 468,108
First Lien Term Loan Facility | Line of Credit | Revolving Credit Facility    
Debt Instrument [Line Items]    
Total notes payable $ 0 72,000
Interest rate 8.70%  
First Lien Term Loan Facility, Term Loan Maturing June 2028 | Line of Credit | Secured Debt    
Debt Instrument [Line Items]    
Total notes payable $ 403,825 404,070
Interest rate 8.70%  
Second Lein Term Loan Facility | Revolving Credit Facility    
Debt Instrument [Line Items]    
Total notes payable $ 403,825 $ 476,070
v3.24.0.1
NOTES PAYABLE - Narrative (Details) - USD ($)
12 Months Ended
Jun. 29, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Aug. 09, 2022
Jul. 31, 2021
Debt Instrument [Line Items]            
Loss on extinguishment of debt   $ 0 $ 0 $ 5,185,000    
Financing costs   0 0 8,601,000    
Amortization of deferred financing costs   2,016,000 1,957,000 $ 2,523,000    
Notes payable, net of current portion   397,300,000 $ 468,108,000      
First Lien Term Loan Facility | Secured Debt            
Debt Instrument [Line Items]            
Debt instrument, covenant, minimum net leverage ratio 620.00%       850.00%  
Debt instrument, covenant, minimum liquidity         $ 35,000,000  
Debt instrument, covenant, fixed dollar amount $ 127,000,000       $ 102,000,000  
Secured Debt | First Lien Term Loan Facility, Term Loan Maturing June 2026 | Line of Credit            
Debt Instrument [Line Items]            
Face amount $ 560,000,000          
Proceeds from issuance of long-term debt   $ 25,000,000        
Debt instrument, covenant, maximum leverage ratio 620.00%          
Delayed Draw Term Loan | First Lien Term Loan Facility, Term Loan Maturing June 2026 | Line of Credit            
Debt Instrument [Line Items]            
Face amount $ 50,000,000          
Revolving Credit Facility | First Lien Term Loan Facility, Term Loan Maturing June 2026 | Line of Credit            
Debt Instrument [Line Items]            
Maximum borrowing capacity 125,000,000          
Letter of Credit | First Lien Term Loan Facility, Term Loan Maturing June 2026 | Line of Credit            
Debt Instrument [Line Items]            
Maximum borrowing capacity $ 15,000,000          
Minimum | Secured Debt | First Lien Term Loan Facility, Term Loan Maturing June 2026 | Line of Credit            
Debt Instrument [Line Items]            
Fixed interest rate           3.00%
Upfront fee percentage 0.00%          
Minimum | Revolving Credit Facility | First Lien Term Loan Facility, Term Loan Maturing June 2026 | Line of Credit            
Debt Instrument [Line Items]            
Fixed interest rate           2.75%
Unused capacity percentage 0.25%          
Maximum | Secured Debt | First Lien Term Loan Facility, Term Loan Maturing June 2026 | Line of Credit            
Debt Instrument [Line Items]            
Fixed interest rate           3.25%
Maximum | Revolving Credit Facility | First Lien Term Loan Facility, Term Loan Maturing June 2026 | Line of Credit            
Debt Instrument [Line Items]            
Fixed interest rate           3.25%
Unused capacity percentage 0.50%          
v3.24.0.1
NOTES PAYABLE - Future Maturities of Notes Payable (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Maturities of Long-term Debt [Abstract]  
2024 $ 250
2025 250
2026 250
2027 250
2028 402,825
Thereafter 0
Long-term debt $ 403,825
v3.24.0.1
RECEIVABLES FINANCING AGREEMENT (Details) - Accounts Receivable Credit Facility - Line of Credit - USD ($)
Nov. 08, 2023
Jun. 29, 2021
Dec. 31, 2023
Jun. 28, 2021
Debt Instrument [Line Items]        
Current borrowing capacity $ 75,000,000 $ 100,000,000    
Maximum borrowing capacity   $ 100,000,000    
Upfront fee percentage   1.70%    
Fixed interest rate on outstanding cash advances 2.50%      
Outstanding principal balance     $ 28,400,000  
Minimum        
Debt Instrument [Line Items]        
Current borrowing capacity       $ 30,000,000
Maximum borrowing capacity $ 30,000,000      
Unused capacity percentage 0.25% 0.25%    
Maximum        
Debt Instrument [Line Items]        
Current borrowing capacity       $ 45,000,000
Maximum borrowing capacity $ 75,000,000      
Unused capacity percentage 0.50% 0.50%    
Restrictive covenant, liquidity threshold $ 42,500,000      
v3.24.0.1
COMMITMENTS AND CONTINGENCIES - Recorded Unconditional Purchase Obligations (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Recorded Unconditional Purchase Obligation, Fiscal Year Maturity Schedule [Abstract]  
2024 $ 4,396
2025 2,099
2026 253
2027 0
2028 0
Thereafter 0
Total $ 6,748
v3.24.0.1
RETIREMENT PLAN (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Retirement Benefits [Abstract]      
Compensation expense recognized for 401(k) $ 2.0 $ 2.3 $ 1.6
v3.24.0.1
CAPITAL STOCK (Details) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
Jul. 31, 2021
Jul. 28, 2021
Subsidiary, Sale of Stock [Line Items]        
Common stock authorized (in shares) 1,000,000,000 1,000,000,000    
Common stock par value (in dollars per share) $ 0.0001 $ 0.0001    
Preferred stock authorized (in shares) 25,000,000 25,000,000    
Preferred stock par value (in dollars per share) $ 0.0001 $ 0.0001    
Common unit outstanding (in shares)     108,724,422  
Common stock outstanding (in shares) 125,865,303 122,624,414   108,724,387
Previously Reported        
Subsidiary, Sale of Stock [Line Items]        
Common unit outstanding (in shares)     10  
IPO        
Subsidiary, Sale of Stock [Line Items]        
Share price (in dollars per share)       $ 18.00
v3.24.0.1
EQUITY-BASED COMPENSATION - Narrative (Details) - USD ($)
12 Months Ended
Apr. 13, 2023
Aug. 31, 2022
Jul. 20, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Jan. 01, 2024
Jan. 01, 2023
Jul. 28, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based arrangement, compensation expense       $ 53,203,000 $ 87,697,000 $ 81,112,000      
2021 Plan                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares available for grant (in shares)       14,105,750          
Number of additional shares available for grant (in shares)             6,293,265 6,131,220  
Share-based arrangement, maximum authorized units (in shares)       100,000,000          
Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Equity compensation expense       $ 39,400,000          
IPO                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share price (in dollars per share)                 $ 18.00
Restricted stock units and performance shares                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based arrangement, maximum authorized units (in shares)     12,163,242            
Restricted stock units and performance shares | Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based arrangement, maximum authorized units (in shares)     7,782,957            
Accelerated vesting (in shares)   2,075,455              
Restricted stock units and performance shares | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based arrangement, maximum authorized units (in shares)     4,380,285            
Restricted stock units and performance shares | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer | Vesting Tranche, One                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Award vesting rights percentage     50.00%            
Restricted stock units and performance shares | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer | Vesting Tranche, Two                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Award vesting rights percentage     50.00%            
Time-Based Restricted Stock Units                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Unrecognized stock based compensation expense       $ 27,200,000          
Share-based payment arrangement, unrecognized compensation, weighted average period (in years)       1 year 11 months 15 days          
Time-Based Restricted Stock Units | Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based arrangement, maximum authorized units (in shares)     2,594,319            
Time-Based Restricted Stock Units | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based arrangement, maximum authorized units (in shares)     3,635,287            
Performance-Based Restricted Stock Units                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Unrecognized stock based compensation expense       $ 0          
Performance-Based Restricted Stock Units | Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based arrangement, maximum authorized units (in shares)     5,188,638            
Performance-Based Restricted Stock Units | Chief Executive Officer | 2021 Plan                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share price (in dollars per share) $ 18.00                
Granted (in shares) 1,037,728                
Performance-Based Restricted Stock Units | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based arrangement, maximum authorized units (in shares)     7,449.98            
Performance Shares                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Unrecognized stock based compensation expense       $ 4,700,000          
Share-based payment arrangement, unrecognized compensation, weighted average period (in years)       2 years 6 months 29 days          
Performance Shares | Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Accelerated vesting (in shares)   518,864              
Performance Shares | Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based arrangement, compensation expense       $ 27,500,000          
v3.24.0.1
EQUITY-BASED COMPENSATION - Outstanding Award, Activity (Details)
12 Months Ended
Dec. 31, 2023
$ / shares
shares
Time-Based Restricted Stock Units  
Units  
Outstanding at beginning period (in shares) | shares 5,923,835
Granted (in shares) | shares 4,638,063
Vested (in shares) | shares (2,203,161)
Forfeited (in shares) | shares (260,077)
Outstanding at ending period (in shares) | shares 8,098,660
Weighted Average Grant Date Fair Value  
Outstanding, Weighted average grant date fair value at beginning period (in dollars per share) | $ / shares $ 6.73
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares 3.90
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares 7.58
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares 7.68
Outstanding, Weighted average grant date fair value at ending period (in dollars per share) | $ / shares $ 4.84
Performance-Based Restricted Stock Units  
Units  
Outstanding at beginning period (in shares) | shares 4,714,242
Granted (in shares) | shares 0
Vested (in shares) | shares 0
Forfeited (in shares) | shares (3,676,514)
Outstanding at ending period (in shares) | shares 0
Weighted Average Grant Date Fair Value  
Outstanding, Weighted average grant date fair value at beginning period (in dollars per share) | $ / shares $ 12.59
Modified (in dollars per share) | $ / shares 15.13
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares 0
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares 0
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares 11.87
Outstanding, Weighted average grant date fair value at ending period (in dollars per share) | $ / shares $ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Modified | shares (1,037,728)
Restricted Stock  
Units  
Outstanding at beginning period (in shares) | shares 0
Granted (in shares) | shares 1,037,728
Vested (in shares) | shares 0
Forfeited (in shares) | shares 0
Outstanding at ending period (in shares) | shares 1,037,728
Weighted Average Grant Date Fair Value  
Outstanding, Weighted average grant date fair value at beginning period (in dollars per share) | $ / shares $ 0
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares 15.58
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares 0
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares 0
Outstanding, Weighted average grant date fair value at ending period (in dollars per share) | $ / shares $ 15.58
v3.24.0.1
EQUITY-BASED COMPENSATION - Schedule of Equity-based Compensation, Expensed and Capitalized Amount (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based arrangement, compensation expense $ 53,203 $ 87,697 $ 81,112
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based arrangement, compensation expense 74 202 947
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based arrangement, compensation expense 4,115 3,796 16,401
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based arrangement, compensation expense $ 49,014 $ 83,699 $ 63,764
v3.24.0.1
INCOME TAXES - Components of Income (loss) before Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Domestic $ (96,517) $ (380,014) $ (83,172)
Foreign 14,100 (940) (7,106)
Loss before provision for income taxes $ (82,417) $ (380,954) $ (90,278)
v3.24.0.1
INCOME TAXES - Current and Deferred Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current:      
Federal $ 12 $ 241 $ 124
State 95 8 208
Foreign 4,018 2,247 2,095
Total current tax expense 4,125 2,496 2,427
Deferred expense:      
Federal (26) 0 1
State 26 0 0
Foreign (2,140) (1,310) (939)
Total deferred tax benefit (2,140) (1,310) (938)
Provision for income taxes $ 1,985 $ 1,186 $ 1,489
v3.24.0.1
INCOME TAXES - Effective Income Tax Rate (Details)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Federal statutory rate 21.00% 21.00% 21.00%
State income taxes, net of federal benefit 0.30% 3.20% 3.70%
Foreign rate differential (0.50%) (0.10%) (2.00%)
Stock-based compensation (15.30%) (3.80%) (14.30%)
Global intangible low-taxed income (5.30%) (0.60%) (1.60%)
Non-deductible items (2.30%) (1.10%) (1.10%)
Research and development credits 1.00% 0.10% 0.60%
Change in partnership investment 15.70% (0.90%) (3.00%)
Changes in valuation allowance (25.60%) (19.50%) (5.40%)
Changes in tax rates 0.50% 0.00% (0.70%)
Return to provision 3.20% 0.00% 0.00%
Other 4.90% 1.40% 1.00%
Effective income tax rate reconciliation, percent (2.40%) (0.30%) (1.70%)
v3.24.0.1
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Deferred tax assets:      
Net operating loss carryforwards $ 33,706 $ 30,785 $ 19,483
Sec. 163(j) interest 17,032 9,948 3,342
Tax credits 2,033 1,516 1,206
Stock-based compensation 0 1 68
Property and equipment 76 78 0
Deferred compensation 0 0 722
Operating lease liabilities 78 168 0
Investments 66,367 55,952 340
Other 365 180 0
Less: valuation allowance (119,231) (98,211) (25,092)
Total deferred tax assets 426 417 69
Deferred tax liabilities:      
Property and equipment (809) (645) (229)
Intangible assets (7,769) (9,971) (11,513)
Investments 0 0 0
Operating right-of-use assets (84) (171) 0
Total deferred tax liabilities (8,662) (10,787) (11,742)
Net deferred tax liability $ (8,236) $ (10,370) $ (11,673)
v3.24.0.1
INCOME TAXES - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Contingency [Line Items]        
Unrecognized tax benefits $ 1,419,000 $ 1,056,000 $ 908,000 $ 0
Unrecognized tax benefits that would impact effective tax rate if recognized 0      
Unrecognized tax benefits, income tax penalties and interest expense 0 $ 0 $ 0  
Federal        
Income Tax Contingency [Line Items]        
Net operating loss carryforwards 130,000,000      
Net operating loss for indefinite carryforwards 103,500,000      
Federal | Research Tax Credit Carryforward        
Income Tax Contingency [Line Items]        
Tax credit carryforward amount 2,800,000      
State and Local Jurisdiction        
Income Tax Contingency [Line Items]        
Net operating loss carryforwards 86,300,000      
State and Local Jurisdiction | Research Tax Credit Carryforward        
Income Tax Contingency [Line Items]        
Tax credit carryforward amount $ 800,000      
v3.24.0.1
INCOME TAXES - Unrecognized Tax Benfits (Details) - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Unrecognized benefit—beginning of the year $ 1,056,000 $ 908,000 $ 0
Gross increases—current period positions 184,000 196,000 908,000
Gross increases—prior period positions 179,000 0 0
Gross decreases—prior period positions 0 (48,000) 0
Unrecognized benefit—end of the year $ 1,419,000 $ 1,056,000 $ 908,000
v3.24.0.1
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Related Party Transaction [Line Items]      
Accounts payable $ 33,280 $ 29,841  
Affiliated Entity | Customer Service and Support      
Related Party Transaction [Line Items]      
Related party transaction expenses 5,800 6,400 $ 10,100
Accounts payable $ 1,000 $ 400  
v3.24.0.1
EARNINGS (LOSS) PER SHARE - Schedule of Computation of Basic and Diluted EPS Attributable for Common Stockholders (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share [Abstract]      
Net loss $ (84,402) $ (382,140) $ (91,767)
Weighted average common shares outstanding - basic (in shares) 123,726,252 119,698,776 112,374,669
Effect of dilutive securities:      
Restricted stock (in shares) 0 0 0
Weighted average common shares outstanding - diluted (in shares)) 123,726,252 119,698,776 112,374,669
Loss per share      
Earnings (loss) per share - Basic (in dollars per share) $ (0.68) $ (3.19) $ (0.82)
Earnings (loss) per share - Diluted (in dollars per share) $ (0.68) $ (3.19) $ (0.82)
v3.24.0.1
EARNINGS (LOSS) PER SHARE - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restricted stock units and performance shares      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive securities (in shares) 8,098,660 10,638,077 12,208,496
v3.24.0.1
RESTRUCTURING PLAN - Narrative (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]        
Number of positions eliminated, period percent 14.00%      
Restructuring costs   $ 225,000 $ 9,324,000 $ 0
Costs of Revenue | 2022 Restructuring Plan        
Restructuring Cost and Reserve [Line Items]        
Restructuring costs   0 2,200,000  
Restructuring Charges | 2022 Restructuring Plan        
Restructuring Cost and Reserve [Line Items]        
Restructuring costs   $ 0 $ 9,300,000  
v3.24.0.1
RESTRUCTURING PLAN - Restructuring Costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring Charges [Abstract]      
Restructuring Charges $ 225 $ 9,324 $ 0
v3.24.0.1
RESTRUCTURING PLAN - Summary of Activity in the Restructuring Reserve (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Employee Severance    
Restructuring Reserve [Roll Forward]    
Beginning balance $ 135 $ 0
Net additions charged to expense 0 2,262
Cash payments against reserve (135) (2,127)
Ending balance 0 135
Contract Termination    
Restructuring Reserve [Roll Forward]    
Beginning balance 2,953 0
Net additions charged to expense 225 7,506
Cash payments against reserve (3,178) (4,553)
Ending balance $ 0 $ 2,953