In This Article:
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Revenue: $94.4 million, up 60% year-over-year; excluding PDP contributions, up 15%.
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Gross Margin: 36.2%, a 630 basis point improvement from the previous year.
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Adjusted EBITDA: $16.3 million, up from $1 million in the prior year.
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Net Income: $3.4 million or $0.16 per diluted share, compared to a net loss of $3.6 million or $0.21 per diluted share last year.
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Operating Expenses: $27.7 million, including $3.5 million in PDP acquisition costs.
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Inventory: $102.3 million, with PDP contributing $26.7 million.
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Share Repurchase: Approximately 688,000 shares repurchased for $10.1 million.
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Full Year Revenue Guidance: $370 million to $380 million.
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Full Year Adjusted EBITDA Guidance: Raised to $55 million to $58 million.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Turtle Beach Corp (NASDAQ:HEAR) reported a 60% increase in revenue for Q3 2024 compared to the same period last year, driven by strong sales of gaming accessories and the integration of PDP.
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The company's gross margin improved significantly to 36.2%, a 630 basis point increase from the previous year, due to reduced promotional spending and cost optimization initiatives.
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The integration of PDP is ahead of schedule, with anticipated annual synergies exceeding $13 million, surpassing initial estimates.
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Turtle Beach Corp (NASDAQ:HEAR) has been recognized as a top five consumer electronics brand in the gaming hardware and peripherals category by Time's World's Best Brands of 2024.
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The company raised its full-year adjusted EBITDA guidance to a range of $55 million to $58 million, reflecting confidence in its growth trajectory and operational efficiencies.
Negative Points
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Despite strong revenue growth, Turtle Beach Corp (NASDAQ:HEAR) faces higher royalty costs due to the mix of business, which partially offsets the benefits of reduced product and freight costs.
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The company anticipates increased promotional spending in Q4, which may impact gross margins, especially during the holiday season.
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Operating expenses increased to $27.7 million in Q3 2024 from $20.2 million a year ago, partly due to costs related to the acquisition of PDP.
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Turtle Beach Corp (NASDAQ:HEAR) has a net debt of $94.1 million, with significant outstanding debt from the PDP acquisition.
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The company faces risks and uncertainties that could cause actual results to differ materially from management's expectations, as highlighted in their forward-looking statements.