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Sep 30, 2024
Turtle Beach Q3 2024 Earnings Report
Turtle Beach's third quarter results for 2024 were announced, revealing a significant increase in net revenue and a raised full-year outlook.
Key Takeaways
Turtle Beach Corporation reported a strong third quarter in 2024, with net revenue up 60% year-over-year to $94.4 million and net income of $3.4 million compared to a net loss in the prior year. The company raised its full-year EBITDA guidance, reflecting continued execution strength and the successful integration of PDP.
Net revenue increased by 60% year-over-year, reaching $94.4 million.
Net income was $3.4 million, a significant improvement from the prior year's net loss of $(3.6) million.
Adjusted EBITDA was $16.3 million, compared to $1.0 million in the prior year.
The company repurchased $10.1 million of common shares during the quarter.
Turtle Beach
Turtle Beach
Forward Guidance
Turtle Beach is maintaining its full year net revenue guidance and raising its Adjusted EBITDA guidance.
Positive Outlook
- Full year net revenue is expected to be between $370 million and $380 million, representing 43-47% growth year-over-year.
- Adjusted EBITDA for the full year is expected to be between $55 million and $58 million, up from the prior range.
- The company anticipates achieving total annual synergies exceeding $13 million from the PDP integration.
- Visibility regarding continued strong demand for products ahead of the holiday season.
- Improved financial performance is reflected in the increased Adjusted EBITDA guidance for the year.
Challenges Ahead
- The company's net debt temporarily increases at the end of the third quarter of each year due to working capital requirements.
- Full year 2024 Adjusted EBITDA to its most directly comparable GAAP financial measure, net income (loss), is unavailable to the Company without unreasonable effort due to the variability.
- Complexity, and lack of visibility with respect to certain reconciling items between Adjusted EBITDA and net income (loss), including other income (expense), provision for income taxes and stock-based compensation.
- These items cannot be reasonably and accurately predicted without the investment of undue time, cost and other resources and, accordingly, a reconciliation of the Company’s Adjusted EBITDA outlook to its net income (loss) outlook for such periods is not provided.
- These reconciling items could be material to the Company’s actual results for such periods.