Gaming accessories provider Turtle Beach (NASDAQ:HEAR) has delivered a third-quarter beat and shares of the company are up nearly 21% today.
While revenue dropped 39.9% year-over-year to $51.3 million, the figure was still better than the Street’s expectations by ~$4.5 million. The drop in revenue was attributable to lower demand due to decreased discretionary spending and lower retailer inventories.
While Turtle Beach saw gross margin pressures due to increased freight costs and lower operating leverage during Q3, the company also managed to lower its recurring operating expenses by 16% on the back of proactive expense management programs.
Looking ahead, for full-year 2022 it expects net revenue of $250 million and a net loss per share of $1.35.
Importantly, it is expanding its product portfolio with five of its six models making it to the list of top ten best-selling wireless headsets.
Turtle Beach expects to return to top-line growth and positive EBITDA in 2023 on the back of new product launches and lower expenses coupled with market challenges subsiding.
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