What happened 

Shares of golf club maker Callaway Golf (NYSE:ELY) fell as much as 9.9% in early trading on Thursday after the company reported fourth-quarter financial results. Shares gained back some of those losses but were still down 4.7% at 2:30 p.m. EDT. 

So what

Revenue for the quarter was up 20.1% versus a year ago to $375 million, easily surpassing the $337 million mark that analysts had been expecting. But Callaway's net loss was $41 million, or $0.43 per share, down from a $29 million loss a year ago. 

Golf ball teed up with a driver.

Image source: Getty Images.

For the full year, Callaway reported a 6.6% drop in revenue to $1.6 billion and a net loss of $127 million, or $1.35 per share. Management is hopeful that growth will pick up in 2021 as the pandemic begins to pass globally and the company's merger with Topgolf begins to affect operations. 

Now what

Shares of Callaway have surged on the news of the Topgolf merger and a steady improvement in golf spending throughout the back half of the year. What was disappointing is that growing revenue didn't translate to a better bottom line for Callaway. Investors will likely turn their attention to Topgolf's impact on the business in 2021, and if that part of the business continues to do well, this could be a solid growth stock for years to come. 

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