Turtle Beach Corporate Overview
Q1 2023 RESULTS & KEY MESSAGES
Attractive Gaming Fundamentals Remain
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Gamers continue to grow - 300M gamers added since 2020 and another 335M expected by 2025(1)
Average annual spend per gamer has increased over 20% from 2020(2)
Revenue in global games market expected to increase with a 4.6%+ CAGR from 2022-2025(1)
Navigating Well Through Macroeconomic Headwinds
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Increased consumer demand paired with improvement in historic retail inventory pull back
Competitive discounting remains but improving and expected to continue to improve
Pandemic residual high freight costs are coming down rapidly, improving margins and profit
Gaming Market Showing Signs of Recovering
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Year-to-date hardware spending is 21% higher than the same period in 2022(3)
Sony PlayStation set Q1 shipment record for any consoles
Strong holiday and recent game releases, including several franchise records plus good 2023 slate
Gaming has historically performed well in recessions, including posting growth 2008-2009
Expecting Strong Growth and Positive EBITDA in 2023
Targeting to outgrow the market with 10-12% revenue growth – on track with 10% growth in Q1
Expected growth driven by strong existing and new portfolio, including recent Stealth Pro launch
Reduced OpEx (~13% in Q1) will continue to be tightly managed while maintaining key investments
Expected revenue growth drives significant increase in EBITDA and profit margins
Long term target remains 10+% annual growth and 10+% EBITDA margins
1. Newzoo Global Games Market Report, Nov. 2022
2. Newzoo Gaming Peripheral Survey, Nov. 2022; Gaming Hardware
3. Circana (Formerly NPD): Updated Mar. 2023
Q1 2023 RESULTS
Vs. Q1 2022
Net Revenue +10% YoY
$51.4M vs $46.7M
Adjusted EBITDA +$3.4M YOY
$(2.3)M vs. $(5.7)M
Non-GAAP Net Income +$1.8M YOY
$(4.4)M vs. $(6.3)M
Non-GAAP EPS +$0.12 YOY
$(0.27) vs. $(0.39)
Continued Strong Balance Sheet
2023 GUIDANCE
Net Revenue:
$265-$270M
+10-12%
vs. 2022
EBITDA:
$6 - $8M
+$24-$26M
vs. 2022
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