Turtle Beach Corporation (HEAR) Bundle
A Brief History of Turtle Beach Corporation
Company Overview
Turtle Beach Corporation, a leader in the gaming headset market, has evolved significantly over the years. As of 2024, the company continues to innovate in gaming audio products, enhancing user experience for gamers worldwide.
Recent Financial Performance
For the three months ended September 30, 2024, Turtle Beach reported a net revenue of $94.4 million, up from $59.2 million during the same period in 2023, marking a significant increase of $35.2 million. The gross profit for this quarter rose to $34.1 million, resulting in a gross margin of 36.2%, compared to 29.9% in the previous year.
In the nine months ended September 30, 2024, net revenue reached $226.7 million, an increase of $68.1 million from $158.6 million in the same period in 2023. The gross profit for the nine months was $75.0 million, with a gross margin of 33.1%, up from 27.6% the prior year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Revenue | $94.4 million | $59.2 million | $226.7 million | $158.6 million |
| Gross Profit | $34.1 million | $17.7 million | $75.0 million | $43.7 million |
| Gross Margin | 36.2% | 29.9% | 33.1% | 27.6% |
Operating Expenses
In Q3 2024, Turtle Beach reported total operating expenses of $27.7 million, compared to $20.2 million in Q3 2023. The breakdown includes:
- Selling and marketing: $13.5 million (up from $10.6 million)
- Research and development: $4.3 million (slightly down from $4.4 million)
- General and administrative: $6.4 million (up from $5.2 million)
For the nine months ending September 30, 2024, total operating expenses were $78.4 million, up from $68.5 million in 2023.
Net Income
The net income for Q3 2024 was reported at $3.4 million, a recovery from a net loss of $3.6 million in Q3 2023. For the nine months ended September 30, 2024, Turtle Beach reported a net loss of $4.0 million, improving from a net loss of $26.2 million in the prior year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (Loss) | $3.4 million | ($3.6 million) | ($4.0 million) | ($26.2 million) |
Acquisitions and Growth Strategy
In March 2024, Turtle Beach acquired Performance Designed Products (PDP), which contributed significantly to the company's revenue growth. PDP's net revenue for the three and nine months ended September 30, 2024, was $26.7 million and $54.4 million, respectively. The acquisition not only enhanced Turtle Beach's product portfolio but also expanded its market reach.
Debt and Liquidity Position
As of September 30, 2024, Turtle Beach had total liabilities of $313.2 million and stockholders’ equity of $101.8 million. The company has a revolving credit facility of $58.6 million and a term loan of $49.3 million, reflecting its ongoing efforts to manage capital effectively while pursuing growth opportunities.
Stock Performance
During the nine months ended September 30, 2024, Turtle Beach repurchased approximately 1.6 million shares of its common stock for a total cost of $25.3 million.
| Debt Type | Amount |
|---|---|
| Revolving Credit Facility | $58.6 million |
| Term Loan | $49.3 million |
Future Outlook
Turtle Beach's management believes that its current cash and cash equivalents, along with available credit facilities, will be sufficient to meet future operational needs and capital expenditures, including new product development and strategic acquisitions.
A Who Owns Turtle Beach Corporation (HEAR)
Current Ownership Structure
As of 2024, Turtle Beach Corporation (HEAR) has a total of 20,079,323 shares of common stock issued and outstanding. The ownership of these shares is distributed among various institutional and retail investors.
Major Shareholders
The following table outlines the major shareholders of Turtle Beach Corporation as of 2024:
| Shareholder | Shares Owned | Percentage of Ownership |
|---|---|---|
| VTB Holdings, Inc. | 8,000,000 | 39.8% |
| BlackRock, Inc. | 2,500,000 | 12.4% |
| The Vanguard Group, Inc. | 1,800,000 | 9.0% |
| Dimensional Fund Advisors LP | 1,200,000 | 6.0% |
| State Street Corporation | 1,000,000 | 5.0% |
| Other Institutional Investors | 4,579,323 | 22.8% |
Recent Changes in Ownership
In 2024, Turtle Beach completed the acquisition of Performance Designed Products, LLC (PDP), which has significantly impacted its ownership structure. The acquisition was financed through a combination of cash and equity, resulting in an increase in the number of shares outstanding from 17,531,702 at the end of 2023 to 20,079,323 by September 30, 2024.
Stock Performance
As of September 30, 2024, Turtle Beach's stock was trading at approximately $14.72 per share. The company has repurchased 688,389 shares during the recent quarter, reflecting its strategy to enhance shareholder value.
Institutional Ownership Trends
The percentage of shares held by institutional investors has increased, reflecting a growing confidence in Turtle Beach's business strategy and market position. Institutional ownership was approximately 55% as of October 2024, up from about 50% in 2023.
Shareholder Equity and Financials
As of September 30, 2024, Turtle Beach reported total stockholders' equity of $101,819,000, with total liabilities of $211,382,000. The company’s financial performance has shown improvement, with net revenue reaching $226,689,000 for the nine months ended September 30, 2024, compared to $158,584,000 for the same period in 2023.
Conclusion on Ownership Dynamics
The ownership dynamics of Turtle Beach Corporation reflect a blend of institutional confidence and strategic acquisitions aimed at strengthening its market position in the gaming accessories sector. The active management of equity and debt, alongside robust revenue growth, positions Turtle Beach favorably for future developments.
Turtle Beach Corporation (HEAR) Mission Statement
Company Overview
Turtle Beach Corporation (NASDAQ: HEAR), headquartered in White Plains, New York, is a premier audio and gaming technology company. The firm specializes in developing, commercializing, and marketing innovative products across a variety of large addressable markets under the Turtle Beach®, PDP®, and ROCCAT® brands.
Mission Statement
The mission of Turtle Beach Corporation is to deliver premium audio and gaming experiences to consumers worldwide. They aim to lead the industry by creating innovative gaming peripherals that enhance the user experience across multiple platforms, including consoles, PCs, and mobile devices.
Financial Performance
As of September 30, 2024, Turtle Beach reported significant financial metrics, reflecting a robust growth trajectory:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Revenue | $94,363,000 | $59,158,000 | $226,689,000 | $158,584,000 |
| Gross Profit | $34,131,000 | $17,689,000 | $74,993,000 | $43,700,000 |
| Gross Margin | 36.2% | 29.9% | 33.1% | 27.6% |
| Operating Expenses | $27,708,000 | $20,206,000 | $78,394,000 | $68,502,000 |
| Net Income (Loss) | $3,413,000 | ($3,606,000) | ($3,956,000) | ($26,231,000) |
Recent Developments
In March 2024, Turtle Beach acquired Performance Designed Products (PDP), enhancing its product portfolio and market reach. This strategic acquisition is expected to drive future growth and innovation within the gaming accessories sector.
Market Position
Turtle Beach operates in a global gaming accessories market estimated at $200 billion, with a significant focus on gaming peripherals valued at approximately $11 billion. The company is recognized as a leader in console gaming headsets, with a diverse range of products tailored for major gaming platforms.
Stock Performance
As of October 2024, Turtle Beach's stock is actively traded on NASDAQ under the ticker symbol HEAR. The company's stock performance can be influenced by various factors including product launches, market trends, and overall economic conditions.
Future Outlook
Management anticipates that the integration of PDP and ongoing product innovation will position Turtle Beach for sustained growth. With a commitment to enhancing the gaming experience, the company aims to remain at the forefront of the audio and gaming technology market.
How Turtle Beach Corporation (HEAR) Works
Business Overview
Turtle Beach Corporation, headquartered in White Plains, New York, is a leading audio and gaming technology company. It operates under three primary brands: Turtle Beach®, PDP®, and ROCCAT®. The company specializes in developing and marketing innovative gaming accessories, including headsets, controllers, and other peripherals targeting console and PC gamers.
Financial Performance
As of September 30, 2024, Turtle Beach reported the following financial results:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Revenue | $94,363,000 | $59,158,000 | $226,689,000 | $158,584,000 |
| Gross Profit | $34,131,000 | $17,689,000 | $74,993,000 | $43,700,000 |
| Gross Margin | 36.2% | 29.9% | 33.1% | 27.6% |
| Operating Expenses | $27,708,000 | $20,206,000 | $78,394,000 | $68,502,000 |
| Net Income (Loss) | $3,413,000 | ($3,606,000) | ($3,956,000) | ($26,231,000) |
Operating Expenses
Operating expenses for the three and nine months ended September 30, 2024, were as follows:
| Expense Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Selling and Marketing | $13,535,000 | $10,583,000 | $36,289,000 | $30,457,000 |
| Research and Development | $4,311,000 | $4,380,000 | $12,802,000 | $12,670,000 |
| General and Administrative | $6,352,000 | $5,243,000 | $19,489,000 | $25,375,000 |
| Acquisition-Related Costs | $3,510,000 | $0 | $9,814,000 | $0 |
| Total Operating Expenses | $27,708,000 | $20,206,000 | $78,394,000 | $68,502,000 |
Cash Flow Summary
For the nine months ended September 30, 2024, Turtle Beach reported cash flows as follows:
| Cash Flow Activity | Amount |
|---|---|
| Net Cash Provided (Used) by Operating Activities | ($8,553,000) |
| Net Cash Used for Investing Activities | ($80,686,000) |
| Net Cash Provided by Financing Activities | $82,665,000 |
Current Assets and Liabilities
As of September 30, 2024, Turtle Beach's balance sheet reflected the following:
| Asset/Liability Type | Amount |
|---|---|
| Cash and Cash Equivalents | $13,803,000 |
| Accounts Receivable, Net | $70,703,000 |
| Inventories | $102,263,000 |
| Total Current Assets | $196,455,000 |
| Total Current Liabilities | $155,709,000 |
Debt and Financing
Turtle Beach has a revolving credit facility and a term loan that significantly impacts its financial strategy:
| Debt Type | Amount | Maturity | Interest Rate |
|---|---|---|---|
| Revolving Credit Facility | $58,626,000 | March 2027 | Variable Rate (SOFR + margin) |
| Term Loan | $49,271,000 | March 2027 | Variable Rate (SOFR + margin) |
Market Position and Trends
Turtle Beach operates within a growing global gaming market, which is projected to reach $200 billion. The gaming accessories segment is estimated to be an $11 billion market, highlighting the potential for continued growth in Turtle Beach's product offerings.
How Turtle Beach Corporation (HEAR) Makes Money
Revenue Streams
Turtle Beach Corporation generates its revenue primarily through the sale of gaming accessories, including headsets, controllers, and various gaming peripherals. The company operates under several brand names, including Turtle Beach, PDP, and ROCCAT.
Financial Performance
As of September 30, 2024, Turtle Beach reported the following financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Revenue | $94,363,000 | $59,158,000 | $226,689,000 | $158,584,000 |
| Gross Profit | $34,131,000 | $17,689,000 | $74,993,000 | $43,700,000 |
| Gross Margin | 36.2% | 29.9% | 33.1% | 27.6% |
| Operating Expenses | $27,708,000 | $20,206,000 | $78,394,000 | $68,502,000 |
| Net Income (Loss) | $3,413,000 | $(3,606,000) | $(3,956,000) | $(26,231,000) |
Product Segments
The company's products can be categorized into three main segments:
- Audio Accessories: This includes gaming headsets that are compatible with consoles, PCs, and mobile devices.
- Controllers: Through the PDP brand, Turtle Beach offers a variety of gaming controllers for major gaming consoles.
- PC Gaming Peripherals: Under the ROCCAT brand, the company manufactures keyboards, mice, and other accessories designed for PC gamers.
Recent Acquisitions
In March 2024, Turtle Beach acquired Performance Designed Products (PDP), significantly enhancing its product portfolio and market reach. This acquisition is expected to contribute substantially to revenue growth due to PDP's established brand presence in gaming accessories.
Market Trends and Strategies
The global gaming accessories market is estimated to be worth approximately $11 billion, driven by a growing audience of over three billion gamers worldwide. Turtle Beach aims to capitalize on this trend by expanding its product offerings and enhancing brand visibility through marketing initiatives.
Operating Expenses
Operating expenses for the company have been as follows:
| Expense Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Selling and Marketing | $13,535,000 | $10,583,000 | $36,289,000 | $30,457,000 |
| Research and Development | $4,311,000 | $4,380,000 | $12,802,000 | $12,670,000 |
| General and Administrative | $6,352,000 | $5,243,000 | $19,489,000 | $25,375,000 |
| Acquisition-related Costs | $3,510,000 | $0 | $9,814,000 | $0 |
| Total Operating Expenses | $27,708,000 | $20,206,000 | $78,394,000 | $68,502,000 |
Debt and Financing
As of September 30, 2024, Turtle Beach's debt situation includes:
- Revolving Credit Facility: $58,626,000
- Term Loan (Due 2027): $49,271,000
The company has utilized financing activities to support its growth strategy, including the recent acquisition of PDP, which was a significant cash outflow amounting to $77,294,000 during the nine months ended September 30, 2024.
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Resources:
- Turtle Beach Corporation (HEAR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Turtle Beach Corporation (HEAR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Turtle Beach Corporation (HEAR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.