NASDAQ$TBCH

Turtle Beach Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Turtle Beach's third quarter results for 2024 were announced, revealing a significant increase in net revenue and a raised full-year outlook.

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.

Headline financials

Total Revenue

$94.4M

Previous: $59.2M+59.5%
EPS

$0.16

Previous: -$0.21+176.2%
Adjusted EBITDA

$16.3M

Previous: $1M+1530.0%
Organic Revenue Growth

0.1%

No prior period
Gross Margin

0.4%

Previous: 0.3%+21.1%
Capital Expenditures

-$3.39M

Previous: -$1.92M-76.3%
Free Cash Flow

$21K

Previous: -$5.53M+100.4%
Net Income

$3.41M

Previous: -$3.61M+194.6%
Operating Income

$6.42M

Previous: -$2.52M+355.2%
Gross Profit

$34.1M

Previous: $17.7M+93.0%
Cash & Equivalents

$13.8M

Previous: $12.3M+11.9%
Total Assets

$313M

Previous: $156M+100.4%
R&D Expense

$4.31M

Previous: $4.38M-1.6%

Revenue & EPS history

Turtle Beach · Revenue · Quarterly

$94.4M

Q3 2024+59.5%vs Q3 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

Turtle Beach is maintaining its full year net revenue guidance and raising its Adjusted EBITDA guidance.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.3%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+4.8%

Avg return

30 days after

37%

22 / 59 earnings

Positive

+48.3%

Q1 2016

Best reaction

-32.4%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.4%-9.8%-1.3%
Q4 2025-1.0%-15.0%-22.5%
Q3 2025-3.4%+2.3%-2.6%
Q1 2025+8.3%+23.4%+34.0%
Q4 2024-5.1%-0.7%-19.2%
Q3 2024+7.9%+1.1%+17.0%
Q2 2024+18.2%+19.3%+11.6%
Q1 2024+1.8%+5.2%+0.9%
Q4 2023+26.5%+51.9%+48.0%
Q3 2023+10.7%+11.1%+28.7%
Q2 2023+10.4%+7.4%-6.6%
Q1 2023+15.1%-0.9%-2.2%
Q4 2022-1.0%+7.4%+51.7%
Q3 2022+12.5%+19.5%+41.9%
Q2 2022-32.4%-25.4%-43.3%
Q1 2022-16.6%-6.5%-5.1%
Q4 2021-5.6%-11.0%+2.1%
Q3 2021-0.9%-1.7%-16.1%
Q2 2021-2.6%-2.4%-2.2%
Q1 2021+1.6%+2.7%+27.9%
Q4 2020-17.7%-13.8%-6.2%
Q3 2020-1.2%-22.2%-5.0%
Q2 2020-7.5%-17.5%-12.0%
Q1 2020-8.4%-0.1%+8.3%
Q4 2019+4.2%-5.4%+23.0%
Q3 2019-13.1%-11.3%-11.5%
Q2 2019-8.7%-3.7%-9.7%
Q1 2019-0.7%-13.0%-9.6%
Q4 2018-16.4%-22.0%-23.5%
Q3 2018-9.1%-18.9%-15.4%
Q2 2018-4.6%-8.6%-29.9%
Q1 2018+45.7%+93.2%+157.0%
Q4 2017-8.9%-14.3%+29.5%
Q3 2017-6.0%-5.8%-23.6%
Q2 2017-2.1%-5.4%+5.7%
Q1 2017-7.8%-3.4%-16.8%
Q4 2016-23.0%-22.3%-41.7%
Q3 2016+43.7%+10.4%+20.7%
Q2 2016+8.5%+8.5%+6.5%
Q1 2016+48.3%
Q4 2015+0.9%
Q3 2015-7.6%
Q2 2015+0.5%
Q1 2015-7.0%
Q4 2014-6.3%
Q3 2014-29.4%
Q2 2014-12.0%
Q4 2013+4.4%
Q3 2013-4.7%
Q2 2013+4.7%
Q4 2012+19.3%
Q3 2012+9.3%
Q2 2012-2.5%
Q1 2012+0.0%
Q3 2011+0.0%
Q2 2011+0.0%
Q1 2011+1.4%
Q4 2010-5.0%
Q3 2010-2.8%
Q2 2010
Q1 2010

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