Last week, the Turtle Beach Corporation reported its financial earnings for the fourth quarter as well as the full year of 2020. According to Turtle Beach, net revenue in the fourth quarter of 2020 increased by 31% compared to 2019. The company also said that net revenue reached the highest levels of annual sales in Turtle Beach history (a 53% increase from 2019 to 2020).
According to financial reports, the company saw net revenue increase to $360.1 million in 2020 from $234.7 million in 2019. Net income in 2020 also went up by $20.8 million compared to the previous year. Turtle Beach also reported that cash flow operations increased by 29% over the past year.
Turtle Beach also had a financially prosperous fourth quarter in 2020. In the fourth quarter, net revenue increased by $31.1 million while cash flow in the fourth went up by $6.3 million.
Juergen Stark, Chairman and CEO of Turtle Beach Corporation, took some time to reflect on these record-breaking numbers. “As indicated in our recent pre-announcement, our 2020 sales and adjusted EBITDA were the highest in our company’s history,” he explained. “A great portfolio of products and our leading brand combined with excellent operational execution enabled us to outpace the rest of the console headset market as that market experienced significant growth from both existing and new gamers last year. That plus more than doubling our ROCCAT PC accessories business both through expansion of the portfolio and further development of that brand enabled us to deliver record results…”
Stark also explained that he still has high hopes for the business in 2021 despite monumental growth over the last year. “While the gaming accessories market may slow a bit in 2021 because of how strong growth was in 2020, we expect that our continued growth in PC accessories, as well as entry into new categories will allow us to grow revenues to record levels in 2021. And we plan to continue to invest in product and brand development throughout 2021 to position ourselves for continued growth and further expand our leadership position in gaming accessories.”
Turtle Beach Corporation is one of the biggest gaming accessory providers in the world. After being founded in 1985, Turtle Beach has worked to become one of the industry’s leaders in high-quality, comfortable headsets as well as other gaming accessories. Turtle Beach’s shares are traded on the NASDAQ under the exchange symbol HEAR.
The Profit‘s Take:
Strong results from Turtle Beach are not surprising. I’ve said many times that the gaming hardware/accessories space is red-hot and doesn’t get the attention it deserves. Turtle Beach has also made some smart moves that are now paying dividends like their Roccat acquisition. I would expect to see continued growth here or consolidation / M&A like we saw with HP-HyperX.
All information has been provided by Turtle Beach Corporation