Turtle Beach reports Q4 EPS 47c, consensus 60c

Reports Q4 revenue $99.5M, consensus $111.6M. “Turtle Beach’s resilience and adaptability have elevated our leadership position across gaming accessories,” said Cris Keirn, CEO. “Our 2023 full year net revenue increased by 7.5% year-over-year as a result of significant share gains across multiple categories and geographies, including our core business of console gaming headsets. With post-pandemic transitional effects to gaming markets and our business now behind us, we are looking forward to a strong era of exciting new products and growth. We continued to execute against our strategic pillars and ongoing cost management initiatives, which drove margin improvements ahead of our expectations. These initiatives, including portfolio optimization, SKU rationalization, and platformed product development, come into full effect in 2024. We look forward to realizing these benefits with dramatically improved business performance and a 2024 portfolio that will showcase groundbreaking product launches across key categories. We anticipate that these new products, along with our continued focus on multiple cost management initiatives, will result in significant improvements in Turtle Beach’s performance in 2024. We are incredibly optimistic about our 2024 prospects given our progress against optimizing the business for the future, our growth prospects in all our gaming categories driven by fantastic new product launches, and our focus on significantly increasing profitability. In addition, today we separately announced the highly accretive acquisition of PDP to significantly diversify our leadership position in gaming accessories, strengthen profitability and meaningfully enhance scale. We view this as a transformational change for the company and our growth prospects have never been stronger. Additionally, as part of our 2024 strategy, we will be consolidating all PC products, including mice, keyboards and headsets, under our best-selling Turtle Beach Brand. Over the last few years, we’ve demonstrated the power of our brand through our successful entries into other accessories categories, and we expect our customers and portfolio of PC products to benefit from this consolidation. We will continue to drive growth and build on our innovative expansion of gaming categories and products while maintaining our leadership in gaming headsets. With our highly accretive acquisition of PDP and continued category expansion for Turtle Beach products, we expect revenue contribution outside of console gaming headsets to exceed 40% of total revenues in 2024. We believe Turtle Beach is poised for significant value creation in 2024 and beyond.”