Turtle Beach Corporation · NASDAQ:TBCH
Turtle Beach — Q3 2024 Earnings Presentation
16 slides from Turtle Beach's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Earnings Presentation
THIRD QUARTER 2024 EARNINGS PRESENTATION NASDAQ: HEAR | NOVEMBER 7, 2024
Slide 2: Safe Harbor Statement & Important Information
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, stat
Slide 3: Third Quarter 2024 Overview
THIRD QUARTER 2024 OVERVIEW Q3 revenue of $94.4M, up 60% vs. prior year • Excluding PDP results, revenue up 15% YOY Improved gross margins by 630 bps YOY leading to $16.3M in Q3 Adjusted EBITDA • Reflects lower discounting and cost structure as well as benefits of optimized portfolio, including new
Slide 4: Quarterly Financial Review
QUARTERLY FINANCIAL REVIEW $ Millions Q3 2024 Q3 2023 Commentary (except per-share data) Revenue $94.4 $59.2 +60% YOY reflecting PDP acquisition. Excluding PDP, revenue was +15% YOY. +630 basis point YOY improvement on lower discounting and cost structure as Gross Margin 36.2% 29.9% well as benefits
Slide 5: Balance Sheet Summary
BALANCE SHEET SUMMARY Balance Sheet Highlights $ Millions As of September 30, 2024 Cash & Cash Equivalents $13.8 Inventories $102.3 Revolver (asset-based) $58.6 Term Loan $49.3 Net Debt (debt less cash) $94.1 Named a Top 5 Consumer Electronics Brand for Gaming Hardware & Peripherals Source: https://
Slide 6: 2024 Guidance & Long-Term Financial Targets
2024 GUIDANCE & LONG-TERM FINANCIAL TARGETS 2024 GUIDANCE(1) LONG-TERM FINANCIAL TARGETS Net Revenue(1) Adj. EBITDA(1) Metric Target $370M – $380M $55M – $58M Revenue 10%+ CAGR up 43% – 47% up $49M – $52M Gross Margins % Mid-high 30’s vs. 2023 vs. 2023 Adjusted EBITDA Margins 15%+ Strong YTD 2024 En
Slide 7: Executing Our Growth Strategy
EXECUTING OUR GROWTH STRATEGY TO FUEL TURTLE BEACH'S POSITION AS THE 2ND LARGEST 3RD PARTY GAMING ACCESSORIES MAKER $2.9B Market $3.0B Market $3.9B Market $1.2B Market Continue Growth in Continue Expanding Turtle Beach Brand in Continue Leadership in Continue Growth in Gaming Simulation Gamepads/Con
Slide 8: Growing Turtle Beach Leadership in Controllers
GROWING TURTLE BEACH LEADERSHIP IN CONTROLLERS TURTLE BEACH CONTINUES EXPANDING IN THE CONTROLLERS MARKET WITH ~38% REVENUE GROWTH YOY(2) Premium Wireless & Wired Gaming Simulation Controllers Controllers Groundbreaking, industry-leading Stunning realism is fueling the $1.2B wireless controllers for
Slide 9: Q3'24 Key Products & Highlights
Q3’24 KEY PRODUCTS & HIGHLIGHTS 9
Slide 10: Continued Wireless Gaming Audio Leadership
CONTINUED WIRELESS GAMING AUDIO LEADERSHIP RAISE YOUR RANK WITH TURTLE BEACH'S LATEST WIRELESS MULTIPLATFORM GAMING HEADSETS Legendary Wireless Performance Perfected for Gaming on Multiple Platforms. In September, Turtle Beach launched the Stealth 700 (Gen 3) premium wireless model, completing the r
Slide 11: An Expanding Catalog of Officially Licensed Accessories
AN EXPANDING CATALOG OF OFFICIALLY LICENSED ACCESSORIES STRONG PARTNERSHIPS WITH TOP ENTERTAINMENT PROPERTIES Merging Gaming Accessories, Fandom & Collectability In Q3, Turtle Beach introduced a variety of officially licensed gaming accessories themed around some of gaming’s biggest and most iconic
Slide 12: More Groundbreaking Market Innovation from Turtle Beach
MORE GROUNDBREAKING MARKET INNOVATION FROM TURTLE BEACH PLAY MORE GAME TYPES USING ONE CONTROLLER WITH REVOLUTIONARY ROTATING BUTTON/STICK MODULES Introducing the Revolutionary Stealth Pivot Controller for PC, Xbox & More It’s a smart wireless controller for PC and an advanced wired controller for X
Slide 13: Appendix
APPENDIX 13
Slide 14: GAAP Net Income to Adjusted EBITDA Reconciliation
GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION THIRD QUARTER 2024 COMPARED TO 2023 Three Months Ended September 30, 2024 September 30, 2023 Net Income (Loss) $3,413 $(3,606) Interest expense 2,712 107 Depreciation and amortization 3,322 1,212 Stock-based compensation 1,496 1,625 Income tax expens
Slide 15: Contacts
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
THANK YOU