For the nine months ending 9/30/22 Turtle Beach (NASDAQ: HEAR) reported a 46% revenue decline. Revenue for the first nine months of 2022 was $139 million, versus $257 million in the first nine months of 2021. For the first nine months of 2022 Turtle Beach reported a net loss of $36 million versus net income for the comparable 2021 period.
Analysis
The hardware and accessories business has been hammered on several levels this year. Hardware shortages on the console and PC side have resulted in consumers not having the core hardware that encourages accessory purchases. This is compounded by the difficult comparable with late 2020 and 2021 when the market saw soaring sales with COVID stay-at-home.
DFC Intelligence is bullish on the accessories market for 2023. As the installed base for PlayStation 5 and Xbox Series X/S catch up to demand it will naturally result in growth for the accessories side. Meanwhile, new graphics cards from Nvidia and AMD are resulting in new PC builds that will require accessories.
Turtle beach has expanded beyond headsets and microphones into controllers and other accessories. In the past year, they have enjoyed some success in flight simulations and they also acquired the Roccat brand of game keyboards and mice.
