Turtle Beach sees FY23 revenue $265M-$270M, consensus $270.29M

The Company continues to target its long-term goals of 10+% revenue CAGR, mid-30s gross margin percentage, and 10+% adjusted EBITDA margins. In light of the aforementioned market and operational conditions, the Company is maintaining its outlook for fiscal year 2023 and expects net revenues to be in the range of $265 million to $270 million, with the 10 to 12% growth driven primarily by expected out-performance of the gaming markets in specific categories based on the Company’s product plans for the remainder of 2023. Adjusted EBITDA is expected to be in the range of $6 million to $8 million, which still includes significant headwinds from competitive discounting and freight costs which are expected to abate as the year progresses. Further, the Company has mobilized and accelerated initiatives for a variety of efficiencies that include SKU rationalization, portfolio optimization, platformed product development for a range of cost improvements and more. These strategic initiatives are expected to contribute meaningfully to the profitability of Turtle Beach on a run-rate basis, and based on the work completed to date, the Company now reports a line-of-sight to exiting 2023 with a run-rate adjusted EBITDA in the range of $25 million to $30 million.