Turtle Beach Corp (NASDAQ:HEAR) just announced its Q3 data, including net revenue, which increased 107% to $74.4 million compared to $36.0 million in the year-ago quarter.
According to the release, “This was the result of strong market demand for console gaming headsets, driven by continuing increased usage of gaming headsets, particularly among “battle royale” players, along with the Company’s increase in market share over 2017. Net revenue in the third quarter of 2018 slightly exceeded the high end of the Company’s preliminary results of $74 million announced on October 11, 2018.”
Turtle Beach Corp (NASDAQ:HEAR) frames itself as a company that operates as an audio technology player.
It provides various gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, and mobile and tablet devices under the Turtle Beach brand.
The company also offers various sound technology products that delivers directional audio with applications in digital signage and kiosks, consumer electronics, and hearing healthcare under the brand name of HyperSound. It operates in North America, the United Kingdom, Europe, and internationally.
The company was founded in 1975 and is headquartered in San Diego, California.
According to company materials, “Turtle Beach is a leading gaming accessory brand, offering a wide selection of cutting-edge, award-winning gaming headsets. Whether you’re a professional esports athlete, hardcore gamer, casual player, or just starting out, Turtle Beach has the gaming headset to help you truly master your skills. Innovative and advanced technology, amazing high-quality gaming audio, crystal-clear communication, lightweight and comfortable designs, and ease-of-use are just a few features that make Turtle Beach a fan-favorite brand for gamers the world over. Designed for Xbox, PlayStation, and Nintendo consoles as well as for PC, Mac, and mobile/tablet devices, owning a Turtle Beach gaming headset gives you the competitive advantage. Hear Everything. Defeat Everyone.”
We started off by noting that HEAR just hit the wires with the announcement of its Q3 data, including net revenue, which increased 107% to $74.4 million compared to $36.0 million in the year-ago quarter.
This announcement has popped the stock higher initially, which certainly isn’t surprising. HEAR shareholders are now sitting on about 3% in gains over the past week. However, it will be interesting if the stock can manage to hold those gains given the sense we have that Wall Street isn’t on board here as a longer-term game – ie, this stock is widely viewed as a short-term CROX-like affair (look at CROX back in 2006-07… the charts are eerily similar).
“As communicated in our pre-announcement, we delivered another quarter of considerable growth and record profits, both compared to last year and our prior outlook,” said Juergen Stark, CEO, Turtle Beach Corporation. “This growth is driven by market share gains from a great portfolio of innovative products that enhance game play for all levels of gamers in a strong overall console gaming market.”
Turtle Beach Corp (NASDAQ:HEAR) generated sales of $60.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 48.7% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($9.1M against $44.4M, respectively).