Logitech International S.A. (NASDAQ:LOGI) Q3 2023 Earnings Call Transcript

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Bracken Darrell: That’s a really interesting question. And on the — on Prakash, Prakash has always been — I mean, he’s been here for seven years. We recruited him right out of a consulting firm, and he’s just grown and grown. And a lot of what you see from a sustainability standpoint we’re doing in this company, you can point right up to Prakash’s leadership. He’s got a tremendous team. And my entire staff right alongside and have been part of this drive to be better for the world from an environmental standpoint. But make no mistake, Prakash has led that from the heart and the hands and the head. But I think the next step for him and for us is to give him a larger role, not only in the overall operating execution of the company, but also in the structure and the cost of the company.

And so this is another — this is — we’re– we’ve evolved very quickly structurally, very quietly behind the scenes. We’ve changed our structure, and we’re going to keep evolving it going forward. It will just keep evolving. And he’s going to be a real partner for me and for the CFO and for the whole team in helping think through that. So think of him as overseeing the overall operating cost of the company. He also has responsibility for the overall M&A strategy worked out. So he’s got a big chunk of responsibility now. Now there are others who have huge chunks of responsibility. I don’t want to only focus on Prakash, but we did announce this move today, so it’s a big one. On the greater economy, a recession and had what are our prospects going forward, the creator economy is touching so many things.

I think it’s one of the quiet drivers of interest in the personal workspaces. We’re not calling the mice, keyboards, webcam, et cetera. It’s one of the quiet drivers of that business. And I think it’s here to stay, the growth of all the things we read about, including the new world of ChatGPT and what that can unlock. I think all these are fuel for that creator economy. Now, I do think if you go into a deeper recession, I think the greater economy will — a lot of those people will end up in full-time jobs if they weren’t already in them or trying to get full-time jobs. But they’re going to keep going alongside that in this creator economy. And I think the other thing about the creator economy that’s exciting to me is that, I think more and more people are going to be selling to their friends directly.

And we’re experimenting with that. Lots of companies are. I think there will be more and more of that kind of selling. It’s probably not going to be significant in the short term, but I think in the future, there will be more and more of a network of activity to drive sales through the creator economy, and that will be part of it.

Michael Foeth: Thank you.

Nate Melihercik: Thanks, Michael

Bracken Darrell: Thanks, very much, Michael.

Nate Melihercik: Thanks, Michael, and thanks, everyone, for joining. I think that’s a wrap, Nate and Bracken.

Bracken Darrell: Great. Thank you. Thanks, everyone.

Nate Olmstead: Great. Thank you.

Nate Melihercik: Take care.

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