Company Executing Well Despite Holiday
Trends Across Gaming Industry
Leading gaming accessory maker Turtle Beach Corporation (Nasdaq:
HEAR) today announced selected preliminary 2021 results. The
Company is providing these preliminary 2021 results earlier than in
prior years in light of recently reported holiday sales trends
across the gaming industry.
Based on preliminary unaudited information, Turtle Beach expects
to report full year 2021 revenue of approximately $365 million, in
line with previously provided guidance of $365 to $380 million.
Full year Adjusted EBITDA for 2021 is expected to be within,
although at the lower end, of the previously provided guidance
range of $36 to $44 million reflecting expected revenue.
Juergen Stark, CEO, Turtle Beach Corporation, said, “We have
undertaken significant proactive work to deliver results in line
with our guidance in an environment that has recently presented
industrywide challenges like weak retail traffic, constrained
console supplies and poor performing AAA game launches. Our focus
on execution, diligent management of supply chain and logistics,
and continuous active coordination with our retailers globally have
enabled us to grow from our record year in 2020 and deliver
profitability within our guidance in spite of this backdrop. We
also expect to deliver 20% of revenues with respect to 2021 in our
new categories of PC accessories, controllers, flight simulation,
and streaming mics with higher-than-expected performance in several
of those categories contributing to the expected results. We
believe Turtle Beach is well-positioned to drive growth in 2022
with several exciting new console headset launches, further
expansion of our PC gaming accessories portfolio, and additional
new products in our microphone, controller, and simulation
categories.”
The Company expects to provide its next financial update,
including guidance for full year 2022, when it reports Q4 and full
year results in March 2022.
Important Note on 2021 Preliminary Estimates:
The financial information included herein for the full year 2021
are preliminary, unaudited estimates and may change materially,
including as a result of the finalization of financial statements
for the Company’s full year ended December 31, 2021, review of
inventory levels that could require additional reserves, review of
sales-related reserves, review of the provision for income taxes,
completion of the Company’s audit by the Company’s independent
registered public accounting firm, and other factors and
adjustments related to the Company’s financial reporting process.
The preceding estimates are based on the Company’s internal
estimates and information available as of the date hereof. There
can be no assurance that our final results for the year will not
differ from these estimates and that such changes will not be
material; accordingly, these statements should not be viewed or
relied upon as a substitute for complete audited financial
statements to be prepared in accordance with generally accepted
accounting principles (GAAP) or as a measure of our actual
performance. The Company expects to release its final audited
results for full year 2021 in March 2022.
The Company has included in this release of preliminary results
adjusted EBITDA, which the Securities and Exchange Commission
defines as a “non-GAAP financial measure.” Management believes that
such non-GAAP financial measure, when read in conjunction with the
Company's reported results, can provide useful supplemental
information for investors analyzing period-to-period comparisons of
the Company's results “Adjusted EBITDA” is defined by the Company
as net income (loss) before interest, taxes, depreciation and
amortization, stock-based compensation (non-cash), and certain
special items that we believe are not representative of core
operations (e.g., the integration and transaction costs related to
acquisitions, the change in fair value of contingent consideration
and other non-recurring business costs). This non-GAAP financial
measure is presented because management uses non-GAAP financial
measures to evaluate the Company’s operating performance, to
perform financial planning, and to determine incentive
compensation. Therefore, the Company believes that the presentation
of non-GAAP financial measures provides useful supplementary
information to, and facilitates additional analysis by, investors.
The presented non-GAAP financial measure excludes items that
management does not believe reflect the Company’s core operating
performance because such items are inherently unusual,
non-operating, unpredictable, non-recurring, or non-cash.
About Turtle Beach
Corporation
Turtle Beach Corporation (https://corp.turtlebeach.com) is one
of the world’s leading gaming accessory providers. The Turtle Beach
brand (www.turtlebeach.com) is known for pioneering first-to-market
features and patented innovations in high-quality, comfort-driven
headsets for all levels of gamer, making it a fan-favorite brand
and the market leader in console gaming audio for the last decade.
Turtle Beach’s ROCCAT brand (www.roccat.com) combines detail-loving
German innovation with a genuine passion for designing the best PC
gaming products. Under the ROCCAT brand, Turtle Beach creates
award-winning keyboards, mice, headsets, mousepads, and other PC
accessories. Turtle Beach’s Neat Microphones brand
(www.neatmic.com) creates high-quality USB and analog microphones
for gamers, streamers, and professionals that embrace cutting-edge
technology and design. Turtle Beach’s shares are traded on the
Nasdaq Exchange under the symbol: HEAR.
Cautionary Note on Forward-Looking
Statements
This press release includes forward-looking information and
statements within the meaning of the federal securities laws.
Except for historical information contained in this release,
statements in this release may constitute forward-looking
statements regarding assumptions, projections, expectations,
targets, intentions or beliefs about future events. Statements
containing the words “may”, “could”, “would”, “should”, “believe”,
“expect”, “anticipate”, “plan”, “estimate”, “target”, “goal”,
“project”, “intend” and similar expressions, or the negatives
thereof, constitute forward-looking statements. Forward-looking
statements involve known and unknown risks and uncertainties, which
could cause actual results to differ materially from those
contained in any forward-looking statement. Forward-looking
statements are based on management’s current belief and
expectations, as well as assumptions made by, and information
currently available to, management.
While the Company believes that its expectations are based upon
reasonable assumptions, there can be no assurances that its goals
and strategy will be realized. Numerous factors, including risks
and uncertainties, may affect actual results and may cause results
to differ materially from those expressed in forward-looking
statements made by the Company or on its behalf. Some of these
factors include, but are not limited to, risks related to logistic
and supply chain challenges, risks related to capital markets
activities, the substantial uncertainties inherent in the
acceptance of existing and future products, the difficulty of
commercializing and protecting new technology, the impact of
competitive products and pricing, the impact of the coronavirus
(COVID-19) pandemic on consumer demands and manufacturing
capabilities; delays or disruptions in the supply of components for
our products; risks relating to, and uncertainty caused by or
resulting from, the COVID-19 pandemic, general business and
economic conditions, risks associated with the expansion of our
business including acquisitions, the integration of any businesses
we acquire and the integration of such businesses within our
internal control over financial reporting and operations, our
indebtedness, the Company’s liquidity, and other factors discussed
in our public filings, including the risk factors included in the
Company’s most recent Annual Report on Form 10-K, Quarterly Report
on Form 10-Q, and the Company’s other periodic reports. Except as
required by applicable law, including the securities laws of the
United States and the rules and regulations of the Securities and
Exchange Commission, the Company is under no obligation to publicly
update or revise any forward-looking statement after the date of
this release whether as a result of new information, future
developments or otherwise.
All trademarks are the property of their respective owners.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220105005984/en/
For Investor Information, Contact:
Cody Slach or Alex Thompson Gateway Investor Relations On Behalf of
Turtle Beach 949.574.3860 HEAR@gatewayir.com
For Media Information, Contact:
MacLean Marshall Sr. Director –PR/Communications Turtle Beach Corp.
858.914.5093 maclean.marshall@turtlebeach.com
Turtle Beach (NASDAQ:HEAR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Turtle Beach (NASDAQ:HEAR)
Historical Stock Chart
From Apr 2023 to Apr 2024