Financial Data and Key Metrics Changes - The company reported net revenues of $46.7 million for Q1 2022, a decrease from $93.1 million in the same period last year, where revenues had increased by 166% year-over-year due to exceptional consumer demand [9][24]. - Gross margin for Q1 2022 was 30.1%, down from 37.5% in the previous year, primarily due to higher freight costs and fixed cost deleveraging [25]. - Adjusted EBITDA loss for Q1 2022 was $5.7 million, compared to an adjusted EBITDA of $15.3 million in the prior year [27]. - Adjusted net loss for Q1 2022 was $6.3 million or $0.39 per diluted share, compared to adjusted net income of $9.4 million or $0.52 per diluted share in the previous year [28]. - Cash used for operating activities was $13.3 million in Q1 2022, down from cash flow from operations of $21.1 million in the same period last year [29]. - As of March 31, 2022, the company had $23.7 million in cash and cash equivalents with zero debt [30]. Business Line Data and Key Metrics Changes - The console gaming headsets continued to perform well, with three of the top five best-selling Xbox headsets and five out of the top ten best-selling PlayStation headsets being Turtle Beach products [13]. - The company launched new products including the Stealth 600 Gen 2 MAX and Stealth 700 Gen 2 MAX, which are expected to enhance their market position [14][16]. - The mobile gaming market is expanding, with the company introducing new products like the Scout Air and SYN Buds Air true wireless gaming earbuds [17]. Market Data and Key Metrics Changes - The U.S. video game accessory spending declined by 16% in Q1 2022, with the console headset market down over 35% and PC accessories markets down about 25% [11]. - Major European markets fared better but also experienced declines, reflecting a cautious consumer spending environment [11]. Company Strategy and Development Direction - The company aims to maintain its leadership in the console gaming headset market, which has a market share of over 40% in the U.S. [36]. - Plans to expand the PC gaming portfolio and grow market share in the $3.8 billion PC accessories market are in place, with the ROCCAT acquisition proving beneficial [37]. - The company is focused on diversifying its product categories and geographies to reduce dependency on the cyclical console headset market [41]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment, including inflation and geopolitical concerns, impacting consumer spending [9][12]. - The company expects revenues to be flat to slightly up sequentially in Q2 2022, with stronger growth anticipated in the second half of the year due to new product launches and improved market conditions [33][68]. - The long-term outlook for the gaming market remains positive, with expectations of reaching over $200 billion by 2024 [35]. Other Important Information - The company is open to strategic alternatives to maximize shareholder value, having engaged with potential acquirers in the past [46][54]. - The board has been proactive in exploring strategic options, including outreach to potential buyers [48][50]. Q&A Session Summary Question: Can you talk about the second quarter sales guidance expecting it to be flattish versus Q1? - Management expects Q2 to be roughly flat to up slightly compared to Q1 due to ongoing economic pressures and overall gaming market weakness, with a positive growth rate anticipated starting in Q3 [58][59]. Question: Can you discuss the business dynamics in Europe given the current consumer confidence? - The European market has fared somewhat better year-over-year, but concerns about inflation and the war are leading to cautious consumer spending, which may create pent-up demand [64][68]. Question: Can you elaborate on the elevated inventory levels and ASPs of those products? - The increase in inventory is driven by longer shipping times and higher targeted weeks of supply due to supply chain disruptions, reflecting the overall portfolio rather than specific products [69]. Question: How do the new categories compare in gross margin to traditional console products? - The gross margins for new categories are similar to those of console gaming headsets, with a target of mid-30s overall [74]. Question: What are the expectations for console hardware availability throughout the year? - Supply constraints are expected to ease by the holiday season, with improved performance anticipated from Microsoft and Sony [75]. Question: What impact do you foresee from the China shutdown in the second quarter? - The operations team has managed to work around constraints, and while risks remain, no major impacts have been observed [80]. Question: How does channel inventory look compared to historical levels? - Channel inventories have decreased significantly in Q1, aligning with expected market trends, and are currently at reasonable levels for the market sell-through [82].

CORPORATION FULL YEAR & FOURTH QUARTER 2021 EARNINGS PRESENTATION NASDAQ: HEAR MARCH 2, 2022 SAFE HARBOR STATEMENT Forward-Looking Information This presentation 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 conta ...

Turtle Beach Corporation (NASDAQ:HEAR) Q4 2021 Earnings Conference Call March 2, 2022 5:00 PM ET Company Participants Alex Thompson - Investor Relations, Gateway Investor Relations Juergen Stark - Chairman and Chief Executive Officer John Hanson - Chief Financial Officer Conference Call Participants Drew Crum - Stifel Mark Argento - Lake Street Capital Markets Jack Vander Aarde - Maxim Group Martin Yang - Oppenheimer Operator Good afternoon, ladies and gentlemen and welcome to the Turtle Beach Fourth Quarte ...

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SECOND QUARTER 2021 EARNINGS PRESENTATION NASDAQ: HEAR CORPORATION AUGUST 5, 2021 SAFE HARBOR STATEMENT Forward-Looking Information This presentation 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 w ...

Turtle Beach Corporation (NASDAQ:HEAR) Q2 2021 Earnings Conference Call August 5, 2021 5:00 PM ET Company Participants Alex Thompson - Gateway Investor Relations Juergen Stark - Chairman and Chief Executive Officer John Hanson - Chief Financial Officer Conference Call Participants Thomas Forte - D.A. Davidson Mark Argento - Lake Street Capital Markets Martin Yang - Oppenheimer Jack Vander Aarde - Maxim Group Drew Crum - Stifel Operator Good afternoon, ladies and gentlemen, and welcome to the Turtle Beach Se ...

CORPORATION INVESTORS PRESENTATION NASDAQ: HEAR May 2021 24 SAFE HARBOR STATEMENT Forward-Looking Information This presentation 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", " ...

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CORPORATION INVESTORS PRESENTATION NASDAQ: HEAR March 4, 2021 24 SAFE HARBOR STATEMENT Forward-Looking Information This presentation 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", "coul ...

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