Turtle Beach Reports Strong Full Year and 2021 Fourth Quarter Results – Turtle Beach Corporation
Strong Product Demand, Successful Expansion into Non-Console-Headset Categories, and Disciplined Supply Chain and Logistics Navigation Delivered Record Full Year Revenue
WHITE PLAINS, N.Y.–(BUSINESS WIRE)–Mar. 2, 2022–
Leading gaming accessory maker Turtle Beach Corporation (Nasdaq: HEAR), reported financial results for the full year and fourth quarter ended December 31, 2021.
2021 Full-Year Summary vs. 2020:
- Net revenue was $366.4 million, compared to $360.1 million a year ago;
- Net income was $17.7 million, or $0.97 per diluted share, compared to net income of $38.7 million, or $2.37 per diluted share; and
- Adjusted EBITDA was $36.6 million compared to $61.4 million.
Fourth Quarter Summary vs Year-Ago Quarter:
- Net revenue was $109.4 million compared to $132.9 million;
- Net income was $4.5 million, or $0.25 per diluted share, compared to $16.3 million, or $0.93 per diluted share; and
- Adjusted EBITDA was $9.6 million compared to $23.6 million.
“Our full year revenue of $366 million was in line with our previously communicated guidance range, and we’re pleased to have delivered the highest full year revenue in our history following a record 2020,” said Juergen Stark, CEO and Chairman, Turtle Beach Corporation. “This success is a testament to our team’s disciplined management and execution through supply chain and logistics headwinds, our active global coordination with retailers, and the consistent and robust demand for our products.
“Our brands, now spanning seven market categories, have enabled us to deliver strong results despite supply chain challenges and semiconductor constraints that complicated operations and held back full year sales. For example, we gained share with our ROCCAT PC accessories across our core PC accessory markets, outperforming the competition as we continued to rapidly grow our PC business. Per U.S. NPD retail data, we maintained our console gaming headset market share of 40% or more for the 12th consecutive year.
“In 2021, we continued our transformation into a diversified gaming accessories business positioning us to take advantage of a growing total addressable market of $8.8 billion. Our success was driven in part by our entry into new product categories like Xbox gaming controllers and flight simulation hardware, while continuing as the clear leader in console gaming headsets. Further, we delivered 20% of revenues outside our core console headset business and expect to deliver $100 million of non-console-headset revenue in 2022, demonstrating our progress in successfully adding attractive categories to our business. Our best-in-class product portfolio, combined with a proven ability to navigate market challenges and execute on our strategy, gives us confidence in our ability to continue to drive long term growth and attractive returns for our shareholders.”
2021 Financial Results
Net revenue in 2021 was $366.4 million, a $6.3 million increase from the record $360.1 million in 2020, as consumer demand for console headsets remained at elevated levels early in the year and retailers increased channel levels in response to ongoing global supply chain concerns. Our diversification into PC peripherals as well as the entry into gaming controllers, flight simulation hardware and creator microphones helped off-set some of the market weakness across the console gaming category during the holiday season.
Gross margin in 2021 was 35% versus 37.2% in 2020. The decrease was primarily due to higher logistics costs and more normalized holiday promotional activity compared to 2020.
Operating expenses in 2021 were $108 million compared to $84.6 million in 2020, reflecting a full-year run-rate of costs added in 2020 to support over 53% increase in revenues, …….