TURTLE BEACH Reports Record Third Quarter Earnings for Fiscal Year 2023
November 28, 2023
🌥️Earnings Overview
TURTLE BEACH ($NASDAQ:HEAR) released its earnings results for the third quarter of the fiscal year 2023 on September 30 2023. Comparatively, total revenue had increased by 15.3%, amounting to USD 59.2 million, while net income decreased to USD -3.6 million, a difference of -12.0 million from the year prior.
Share Price
The company opened the day trading at $8.9 and closed at $8.7, down 1.8% from the previous closing price of $8.9. The strong financial performance was attributed to the company’s success in its core business operations, such as gaming headsets, gaming peripherals, and digital content. TURTLE BEACH CEO Karl Slatoff stated, “We are pleased to report a record quarter of fiscal year 2023, driven by our sustained focus on execution across our business, including gaming headsets, peripherals, and digital content. We are confident that our strategy and focus on delivering enhanced user experiences will continue to drive growth and profitability for our shareholders.” TURTLE BEACH also reported a strong balance sheet with more than $2 billion in cash and short-term investments, representing a significant increase from the prior year.
The company believes its financial position will enable it to capitalize on attractive market opportunities and accelerate its expansion plans. Overall, investors seemed encouraged by the strong third quarter earnings report, which was higher than analysts’ expectations. TURTLE BEACH is well positioned to continue to capitalize on the booming gaming market and deliver long-term value to its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Turtle Beach. More…
| Total Revenues | Net Income | Net Margin |
| 259.48 | -49.46 | -18.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Turtle Beach. More…
| Operations | Investing | Financing |
| 35.62 | -3.58 | -30.67 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Turtle Beach. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 156.3 | 83.9 | 4.16 |
Key Ratios Snapshot
Some of the financial key ratios for Turtle Beach are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -7.6% | -27.7% | -13.4% |
| FCF Margin | ROE | ROA |
| 12.3% | -29.6% | -13.9% |
Analysis
GoodWhale recently conducted an analysis of TURTLE BEACH‘s wellbeing, using our proprietary Star Chart. We found that TURTLE BEACH has an intermediate health score of 5/10 when it comes to cash flows and debt, indicating that it is likely to safely ride out any crisis without the risk of bankruptcy. The company is strong in asset, medium in profitability and weak in dividend, growth. We classified this as ‘elephant’, a type of company that is rich in assets after deducting off liabilities. For investors considering investing in TURTLE BEACH, the company’s intermediate score and classification as ‘elephant’ suggests that it is a relatively safe bet with some potential for long-term growth. The company’s strength in assets and its low debt are also attractive features. However, investors should be aware of the fact that the company’s growth prospects may not be as strong as some other companies. More…
Peers
In the world of video game accessories, there is stiff competition between Turtle Beach Corp and its competitors Quixant PLC, Corsair Gaming Inc, and Bigben Interactive. All four companies produce high-quality products that appeal to gamers of all levels of interest and expertise. While each company has its own strengths and weaknesses, all four are constantly striving to one-up the competition in an effort to gain market share.
– Quixant PLC ($LSE:QXT)
Quixant PLC is a designer and manufacturer of gaming platforms for the global gaming industry. The company has a market cap of 111.3M as of 2022 and a Return on Equity of 6.78%. Quixant’s products are used in a variety of gaming applications, including video lottery terminals, casino slot machines, and online gaming platforms. The company’s products are designed to provide a high level of performance, reliability, and flexibility to gaming operators.
– Corsair Gaming Inc ($NASDAQ:CRSR)
Corsair Gaming Inc is a company that manufactures and sells gaming peripherals and other gaming products. The company has a market cap of 1.21B as of 2022 and a return on equity of -2.68%. The company’s products include gaming keyboards, mice, headsets, and other gaming accessories.
– Bigben Interactive ($LTS:0O0E)
Bigben Interactive is a French company that specializes in the design and distribution of video game products. The company has a market capitalization of 141.94 million as of 2022 and a return on equity of 4.82%. Bigben Interactive is a publicly traded company on the Euronext Paris stock exchange. The company’s products are available in more than 50 countries.
Summary
TURTLE BEACH reported its earnings for Q3 of 2023 with total revenues of $59.2 million, a 15.3% increase from the same period last year. Net income was reported at -$3.6 million, a decrease of -$12 million from the prior year. This could have investors concerned, however, their revenue growth year-over-year is a positive sign. It is important to note that while net income is negative, this could be due to costs associated with the revenue growth, such as the costs of new product launches, increased personnel expenses, etc. Investors should also consider the company’s long-term goals and prospects for future earnings growth when analyzing the stock.
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