Turtle Beach's Q4 2024 Earnings Call: Contradictions in Tariffs, Revenue Outlook, and Market Conditions

These are the key contradictions discussed in Turtle Beach Corporation's latest 2024Q4 earnings call, specifically including: Tariff Impact Expectations, Revenue Outlook, Gross Margin Expectations, and Market Conditions:



Record Revenue and Adjusted EBITDA:
- Turtle Beach Corp reported record revenue of $146.1 million in Q4 2024, up 46.8% year-on-year.
- This growth was driven by the acquisition and integration of PDP, as well as increased ASP and reduced promotional spending.

PDP Acquisition Impact:
- The acquisition of PDP contributed significantly to Turtle Beach's performance, expanding its product portfolio and market reach.
- This acquisition led to immediate positive impacts on performance and is expected to yield over $13 million in annual cost synergies.

Gaming Accessories Market Growth:
- Turtle Beach's full-year 2024 gaming accessories revenue grew by 6% in the U.S., outpacing the overall gaming market decline.
- This was supported by the launch of new products like the Stealth 700 Gen 3 headset and strong performance in controllers and game pads.

Shareholder Returns:
- The company executed nearly $28 million in share buybacks in 2024, reflecting confidence in its long-term growth prospects.
- Shareholder value was enhanced through strategic capital allocation and financial strategies aligned with growth initiatives.

2025 Revenue and Adjusted EBITDA Guidance:
- Turtle Beach expects full-year 2025 revenue to be in the range of $395 million to $405 million, representing a 7% growth at the midpoint.
- The company forecasts full-year 2025 adjusted EBITDA to be in the range of $68 million to $72 million, reflecting a greater than 200 basis point improvement in adjusted EBITDA margin.