Turtle Beach (US:HEAR)2025-03-14 03:27Financial Data and Key Metrics Changes - The company reported record-breaking quarterly results in Q4 2024, achieving an all-time high revenue of $146 million and adjusted EBITDA, indicating strong performance and resilience in its strategy and execution [3][4]. Business Line Data and Key Metrics Changes - Incremental revenue was noted from the PDP business and next-generation products, contributing to the record revenue performance [4]. Market Data and Key Metrics Changes - The company anticipates a conservative revenue outlook for 2025, reflecting current market conditions and expectations for stronger performance during the holiday season [14]. Company Strategy and Development Direction - The management expressed optimism about the future, aiming to exceed previous highs seen during the Battle Royale surge in 2018 and the pandemic era in 2020 and 2021 [5]. Management Comments on Operating Environment and Future Outlook - Management discussed the potential impact of tariffs, estimating a benefit of several million in EBITDA if tariffs were removed [8]. - The company is focusing on mid to high 30s in gross margin percentage for the full year, with expectations of improved operating expense leverage due to synergies from acquisitions [9][17]. Other Important Information - The company is committed to returning capital to shareholders and views current stock prices as attractive [10]. Q&A Session Summary Question: Impact of tariffs on sales and costs - Management indicated that the impact of tariffs could result in several million in EBITDA benefits if tariffs were removed [8]. Question: Gross margin implications from inventory charge - Management confirmed that gross margin for the quarter would have been approximately 39% if inventory charges were added back [9]. Question: Revenue outlook by product category - Management provided a conservative revenue outlook for 2025, anticipating stronger market conditions during the holiday season [14]. Question: Adjusted EBITDA guidance and gross margins - Management expects continued leverage on operating expenses, contributing to strong adjusted EBITDA guidance for 2025 [16]. Question: Sensitivity to currency changes - Management noted benefits from currency strengthening and mentioned a natural hedge due to revenue in different currencies [21]. Question: Revenue outlook for the second half of the year - Management compared the revenue outlook to 2019, indicating a return to pre-pandemic seasonality with lower Q1 expectations [22]. Question: Seasonality comment on revenue - Management confirmed a seasonality range of 15% to 16% based on midpoint expectations [26].