Turtle Beach Corporation · NASDAQ:TBCH
Turtle Beach — Q2 2024 Earnings Presentation
16 slides from Turtle Beach's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter 2024 Earnings Presentation
SECOND QUARTER 2024 EARNINGS PRESENTATION NASDAQ: HEAR | AUGUST 8, 2024
Slide 2: Safe Harbor Statement & Important Information
wy | SAFE HARBOR STATEMENT & IMPORTANT INFORMATION Forward-Looking Information and Statements This presentation, including the appendix, includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release,
Slide 3: Second Quarter 2024 Overview
Y | SECOND QUARTER 2024 OVERVIEW Q2 revenue of $76.5M, up 59% vs. prior year First full quarter including PDP results; excluding PDP revenue up 15% YOY Improved gross margins by 540 bps YOY leading to $3.0M in Q2 Adjusted EBITDA * Reflects lower discounting and cost structure as well as benefits of
Slide 4: Quarterly Financial Review
@Y | QUARTERLY FINANCIAL REVIEW S$ Millions (except per-share data) Revenue Gross Margin Operating Expenses Net Loss Diluted EPS Adjusted EBITDA" (Loss) Diluted Shares Q2 2024 $76.5 30.2% $27.2 S(7.5) $(0.35) $3.0 21.3 Q2 2023 $48.0 24.7% $27.7 $15.9) $(0.93) S(5.7) 17.2 Commentary +59% YOY reflecti
Slide 5: Cash & Cash Equivalents
v Cash & Cash Equivalents Inventories Revolver (asset-based) Term Loan Net Debt (debt less cash) As of June 30, 2024 $12.5 $73.3 $24.0 $49.6 $61.2
Slide 6: 2024 Guidance & Long-Term Financial Targets
wy | 2024 GUIDANCE & LONG-TERM FINANCIAL TARGETS 2024 GUIDANCE LONG-TERM FINANCIAL TARGETS Net Revenue!) Adj. EBITDA™ Metric Target $370M — $380M S53M -— S56M Revenue 10%+ CAGR up 43% —47% | up S46M —S49M Gross Margins % Mid-high 30's vs. 2023 vs. 2023 Adjusted EBITDA . 15%+ Margins Strong 1H 2024 E
Slide 7: To Fuel Turtle Beach's Position as 2nd Largest 3rd Party Gaming Accessories Maker
tr | TO FUEL TURTLE BEACH'S POSITION AS THE 2ND LARGEST 3RD PARTY GAMNG ACCESSORIES MAKER Continue Leadership in Expand Turtle Beach Brand in PC Continue Growth in Continue Growth in Flight & Gaming Headsets Gaming Accessories & Microphones Gamepads/Controllers Racing Simulation Accessories Revenue
Slide 8: Products & Highlights
RODUCTS & HIGHLIGHTS
Slide 9: Stealth 600 & Stealth 500
wy | STEALTH 600 & STEALTH 500 RAISE YOUR RANK WITH TURTLE BEACH'S LATEST WIRELESS MULTIPLATFORM GAMING HEADSETS Legendary wireless performance perfected for gaming on multiple platforms. Turtle Beach's new Stealth 500 model for Xbox was the 2nd best-selling gaming headset in June, following the fir
Slide 10: Award-Winning PC Gaming Peripherals
tr | RAISE YOUR RANK WITH TURTLE BEACH'S ALL-NEW AWARD-WINNING PC GAMING PERIPHERALS 9/10 + Editor's Choice Award + Named Best Open Back PC Gaming Headset Rank up with all-new PC gaming gear from Turtle Beach. Turtle Beach's latest PC gaming peripherals each reset the bar in their respective categor
Slide 11: The First New Wireless Guitar Controller in Nearly a Decade
y | THE FIRST NEW WIRELESS GUITAR CONTROLLER IN NEARLY A DECADE Grip it and RIFF it! Launched timed to the debut of Epic's Fortnite Festival Season 3, fans can now play Pro Lead or Pro Bass song parts. The RIFFMASTER is also compatible with Rock Band 4. As the first new wireless guitar controller la
Slide 12: PDP's Victrix Pro Arcade Fight Stick, Pro BFG Controller & Pro Tournament Backpack
v | PDP'S VICTRIX PRO ARCADE FIGHT STICK, PRO BFG CONTROLLER, & PRO TOURNAMENT BACKPACK GET THE TEKKEN 8 TREATMENT Land every hit when it matters most. PDP's new family of TEKKEN 8-themed Victrix gaming accessories are limited-edition and limited- run, designed for hardcore fans. The new gear includ
Slide 13: Appendix
PPENDIX
Slide 14: GAAP Net Income to Adjusted EBITDA Reconciliation
Kv GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION SECOND QUARTER 2024 COMPARED TO 2023 Three Months End June 30, 2024 June 30, 2023 Net Income (Loss| (7,524) $(15,920) Interest expense [income] 2,220 17) Depreciation and amortization 3,306 1,219 Stock-based compensation 846 4,970 Income tax expen
Slide 15: Investor Relations Contacts
Investor Relations: Turtle Beach: ICR MacLean Marshall 646.277.1285 Sr. Director, Global Communications hear@icrinc.com Turtle Beach Corporation +1 (310) 431-6215 maclean.marshall@turtlebeach.com
Slide 16: Thank You
Ss oS THANK YOU