Business
Turtle Beach Reports Fourth Quarter And Full Year 2019 Results
SAN DIEGO, March 10, 2020 /PRNewswire/ -- Turtle Beach Corporation (Nasdaq: HEAR), a leading gaming audio and accessory brand, reported financial results for
About this update from Turtle Beach Corporation
[{"type":"text","content":"SAN DIEGO, March 10, 2020 /PRNewswire/ -- Turtle Beach Corporation (Nasdaq: HEAR), a leading gaming audio and accessory brand, reported financial results for the fourth quarter and full year ended December 31, 2019. \n\n \n \n \n \n \n \n\n \nFourth Quarter Summary vs. Year-Ago Quarter:\nNet revenue was $101.8 million ($102.1 million in constant currency) versus $111.3 million; Net income of $20.4 million, or $1.29 per diluted share (includes $7.4 million benefit from the release of valuation allowances on deferred tax assets), compared to net income of $24.6 million, or $1.33 per diluted share; and Adjusted EBITDA was $16.6 million compared to $25.0 million.2019 Full-Year Summary vs. 2018:\nNet revenue was $234.7 million ($236.5 million in constant currency) versus $287.4 million; Net income of $17.9 million, or $1.04 per diluted share (includes $7.4 million benefit from the release of valuation allowances on deferred tax assets), compared to net income of $39.2 million, or $2.74 per share; and Adjusted EBITDA was $22.8 million compared to $57.7 million.\"As indicated in our pre-announcement, our 2019 sales were the second highest in our history, with 2019 playing out close to our expectations,\" said Juergen Stark, CEO, Turtle Beach Corporation. \"While we expect the console gaming market to be soft as consumers prepare for Sony and Microsoft's new consoles slated to launch this fourth quarter, we expect the market to return to growth in 2021. We anticipate continued growth in our PC gaming accessories sales in 2020 and plan to invest in product and brand development to increase our share in this attractive portion of the market.\"\nFourth Quarter 2019 Financial Results\nNet revenue in the fourth quarter of 2019 was $101.8 million compared to $111.3 million in the year-ago quarter. While consumer demand remained above historic levels, this decrease was the result of the expected decline from the record levels of demand in the prior year driven by new headset users buying their first headset for battle royale games. On a constant currency basis, revenue in the fourth quarter of 2019 was $102.1 million.\nGross margin in the fourth quarter of 2019 was 35.1% compared to 38.5% in the fourth quarter of 2018. This expected decrease was primarily due to a more normal level of promotional activity compared to 2018 when less promotional...