Turtle Beach Corp (TBCH) 2024 Q3 法說會逐字稿

Good day. Ladies and gentlemen, thank you for standing by. Welcome to the Turtle Beach Corporation third quarter, 2024 conference call at this time.

再會。女士們先生們，謝謝你們的支持。歡迎此時參加 Turtle Beach Corporation 2024 年第三季電話會議。

(Operator Instructions)

（操作員說明）

I'll now turn the call over to Chuck Corney from the investor relations team.

現在我將把電話轉給投資者關係團隊的查克·科尼 (Chuck Corney)。

Chuck. You may begin.

查克。你可以開始了。

Thanks, operator.

謝謝，接線生。

On today's call, we'll be referring to the press release file this afternoon. That details the company's third quarter, 2024 results.

在今天的電話會議上，我們將參考今天下午的新聞稿文件。其中詳細介紹了該公司 2024 年第三季的業績。

This press release is available on the press releases page of the company's investor relations website at turtlebeach.com where you'll also find the latest earnings presentation that supplements the information discussed on today's call. Finally, a recording of the call will be available on the events and presentation section of the company's investor relations website later today.

本新聞稿可在該公司投資者關係網站turtlebeach.com 的新聞稿頁面上找到，您還可以在其中找到最新的收益演示，以補充今天電話會議中討論的資訊。最後，今天稍後將在公司投資者關係網站的活動和演示部分提供電話會議錄音。

please be aware that some of the comments made during this call may include forward-looking statements within the meaning of the federal securities laws, statements about the company's beliefs and expectations, containing words such as may, will, could, believe, expect, anticipate and similar expressions constitute forward-looking statements.

請注意，本次電話會議期間發表的一些評論可能包括聯邦證券法含義內的前瞻性陳述、有關公司信念和期望的陳述，其中包含可能、將、可能、相信、期望、預期等詞語類似的表述構成前瞻性陳述。

These statements involve risks and uncertainties regarding the company's operations and future results that could cause Turtle Beach Corporation's results to differ materially from management's current expectations. While the company believes that its expectations are based upon reasonable assumptions, numerous factors may affect actual results and may cause results to differ materially.

這些陳述涉及有關公司營運和未來業績的風險和不確定性，可能導致 Turtle Beach Corporation 的業績與管理層目前的預期有重大差異。雖然公司認為其預期是基於合理的假設，但許多因素可能會影響實際結果，並可能導致結果出現重大差異。

So the company encourages you to review the safe harbor statements and risk factors contained in today's press release and in its filings with the securities and exchange commission including, without limitation, its annual report on form 10-K and other periodic reports, which identify specific risk factors that also may cause actual results or events to differ materially from those described in our forward-looking statements. The company does not undertake or publicly update or revise any forward-looking statements after this conference call.

因此，本公司鼓勵您查看今天的新聞稿及其向證券交易委員會提交的文件中包含的安全港聲明和風險因素，包括但不限於 10-K 表格的年度報告和其他定期報告，其中確定了具體的也可能導致實際結果或事件與我們前瞻性陳述中所述的結果或事件有重大差異的風險因素。本次電話會議後，本公司不承擔或公開更新或修改任何前瞻性陳述。

The company also notes that on its call, it will be discussing non-GAAP Financial information. The company is providing that information as a supplement to information prepared in accordance with accounting principles generally accepted in the United States or GAAP. You can find a reconciliation of these metrics to the company's reported GAAP results in the reconciliation tables provided in today's earnings release and presentation.

該公司還指出，在電話會議上，它將討論非公認會計準則財務資訊。該公司提供該資訊作為根據美國普遍接受的會計原則或公認會計原則準備的資訊的補充。您可以在今天的收益發布和演示中提供的調整表中找到這些指標與公司報告的 GAAP 結果的調整表。

Hosting the call today are Cris Keirn, Chief Executive Officer and John Hanson, Chief Financial Officer. And with that, I'll turn the call over to Cris.

今天主持電話會議的是執行長 Cris Keirn 和財務長 John Hanson。然後，我會將電話轉給 Cris。

Thanks Chuck. Good afternoon, everyone and welcome to our third quarter, 2024 earnings call. We're delighted to report another strong quarter, highlighted the continued popularity of the Turtle Beach brand, our sustained momentum in gaming accessories and the tremendous progress towards the integration of PDP, which is running ahead of schedule. Our strategic acquisition of PDP has significantly broadened our reach and further elevated our presence across several categories, especially in controllers which I'll speak about more shortly.

謝謝查克。大家下午好，歡迎參加我們的 2024 年第三季財報電話會議。我們很高興地報告又一個強勁的季度，突顯了 Turtle Beach 品牌的持續受歡迎、我們在遊戲配件方面的持續增長勢頭以及 PDP 整合方面取得的巨大進展，該進展提前完成。我們對 PDP 的策略性收購極大地拓寬了我們的業務範圍，並進一步提升了我們在多個類別中的影響力，特別是在我將稍後討論的控制器領域。

Further, Turtle Beach's brand reach and strong reputation for quality gaming accessories continues to gain fans, And just last month was named in times world's best brands of 2024 feature as a Top five consumer electronics brand and the gaming hardware and peripherals category. This quarter, we experienced robust revenue growth, driven by increased demand for our leading gaming accessories and the benefits of our expanded portfolio. We're in the early stages of realizing the advantages of our increased scale and diversification, which are strengthening our leadership across categories.

此外，Turtle Beach 的品牌影響力和優質遊戲配件的良好聲譽繼續贏得粉絲，就在上個月，它還被《泰晤士報》評為2024 年全球最佳品牌，成為消費電子品牌以及遊戲硬體和外設類前五名。本季度，由於對我們領先的遊戲配件的需求增加以及我們擴大的產品組合的優勢，我們經歷了強勁的收入成長。我們正處於實現規模擴大和多元化優勢的早期階段，這正在加強我們跨類別的領導地位。

Our unwavering commitment to innovation, top-tier execution and continuous growth continues to set Turtle Beach apart as a leader in the gaming accessories market. For the third quarter, Turtle Beach revenue was $94.4 million up 60% compared to the same quarter last year. Excluding PDP contributions, revenues were up 15% compared to last year. Our growth continues to be driven by the ongoing success of our portfolio and strong sales of our latest groundbreaking products like the Stealth 700 Gen three wireless headset, a premium multi-platform headset using our unique cross-play technology.

我們對創新、頂級執行和持續成長的堅定承諾繼續使 Turtle Beach 成為遊戲配件市場的領導者。第三季度，Turtle Beach 營收為 9,440 萬美元，比去年同期成長 60%。不計 PDP 貢獻，營收比去年成長 15%。我們的成長繼續受到我們產品組合的持續成功以及我們最新突破性產品的強勁銷售的推動，例如 Stealth 700 Gen 3 無線耳機，這是一款採用我們獨特的跨平台播放技術的優質多平台耳機。

Games industry site Game Rant noted in the review that the stealth 700 quote is definitely one of the best gaming headsets on the market right now and a multi-platform gamers dream. Thanks for our recent launches, we achieve sales this quarter with lower promotional spend significantly boosting our profitability. Additionally, our strong revenue results reflect earlier-than-anticipated retail load-ins ahead of the holidays as we saw activity during the quarter, which was designed to mitigate the potential impact from the port strike. Considering these accelerated load-ins, our full year revenue guidance remains unchanged.

遊戲產業網站 Game Rant 在評論中指出，stealth 700 絕對是目前市場上最好的遊戲耳機之一，也是多平台遊戲玩家的夢想。感謝我們最近推出的產品，我們在本季度實現了銷售，促銷支出降低，顯著提高了我們的盈利能力。此外，我們強勁的收入結果反映出假期前零售裝貨早於預期，因為我們看到本季的活動旨在減輕港口罷工的潛在影響。考慮到這些加速加載，我們的全年收入指引保持不變。

Our adjusted EBITA for the quarter was $16.3 million, a substantial improvement, compared to the $1 million in the same period last year. We are pleased to see that the year-to-date growth of 7% for U.S. gaming accessories continues to outpace the overall gaming market, which has been roughly flat. Our gaming headsets revenue share increased 108 basis points in Q3 compared to the previous quarter following the launch of our new wireless headsets.

本季調整後的 EBITA 為 1,630 萬美元，與去年同期的 100 萬美元相比，有了顯著改善。我們很高興看到美國遊戲配件今年迄今 7% 的成長速度持續超過整體持平的遊戲市場。在推出新款無線耳機後，我們的遊戲耳機營收份額在第三季比上一季增加了 108 個基點。

Additional share gains are anticipated during the upcoming holidays following the mid-Q3 launch of our new Stealth 703 Gen 3 premium wireless headset. In the controllers and game pads category, Turtle Beach revenue growth continued to significantly outpace the market, with a 37.9% retail sales increase year-to-date compared to the U.S. controller markets growth of nearly 3%.

在我們第三季中期推出新款 Stealth 703 Gen 3 高級無線耳機後，預計在即將到來的假期期間，市場份額將會進一步上漲。在控制器和遊戲手把類別中，Turtle Beach 收入成長持續大幅超過市場，今年迄今零售額成長 37.9%，而美國控制器市場成長近 3%。

Notably, our Victrix pro BFG controller and Turtle Beach Stealth Ultra, were the second and third best-selling third-party game pads year-to-date. Our RIFFMASTER wireless guitar controllers, perfect for Fortnite festival continue dominating the music controller category with 97% share in the U.S. On the expense side, we continue to enhance our operational efficiencies, resulting in substantial profitability gains.

值得注意的是，我們的 Victrix pro BFG 控制器和 Turtle Beach Stealth Ultra 分別是今年迄今為止第二和第三暢銷的第三方遊戲手把。我們的 RIFFMASTER 無線吉他控制器非常適合 Fortnite 音樂節，繼續在音樂控制器類別中佔據主導地位，在美國佔據 97% 的份額。

Our gross margin of 36.2% for the third quarter expanded by 630 basis points year over year as a result of our focused cost optimization initiatives and the ongoing successful integration of PDP. We've seen reduced promotional spending following our recent new product launches, which we expect to increase somewhat to normal holiday levels in Q4.

由於我們專注於實施成本優化措施以及持續成功整合 PDP，第三季毛利率為 36.2%，較去年同期成長 630 個基點。在我們最近推出新產品後，我們發現促銷支出有所減少，我們預計第四季度的促銷支出將增加至正常假期水準。

It's worth noting that gross margin for the quarter would have been 38.3% excluding ROCCAT brand transition reserves and PDP purchase accounting charges, neither of which are expected to continue moving forward. Our integration of PDP is progressing very well, ahead of schedule and continues to drive value. We now anticipate achieving total annual synergies exceeding $13 million, surpassing our original estimate of $10 million to $12 million.

值得注意的是，如果不包括 ROCCAT 品牌過渡儲備和 PDP 採購會計費用，本季的毛利率將為 38.3%，預計這兩項費用都不會繼續增加。我們的 PDP 整合進展順利，提前完成，並繼續推動價值。我們現在預計年度綜效總額將超過 1,300 萬美元，超過我們最初估計的 1,000 萬至 1,200 萬美元。

The expanded market opportunities from our newly combined product portfolio are exciting and we foresee a long-term runway for growth. Beyond the acquisition cost synergies, we anticipate that there are long term revenue synergies due to our enhanced product lineups and strong customer relationships. Furthermore, we continue to drive margin expansion through our previously communicated initiatives including SKU rationalization, portfolio optimization and the launch of our platform next-generation products.

我們新合併的產品組合所帶來的擴大的市場機會令人興奮，我們預計將有長期的成長。除了收購成本綜效之外，我們預計由於我們增強的產品陣容和強大的客戶關係，還會產生長期的收入綜效。此外，我們繼續透過先前溝通過的舉措來推動利潤率擴張，包括 SKU 合理化、產品組合優化和平台下一代產品的推出。

The result of all of this is that we're raising our full year adjusted EBITDA guidance to a range of $55 million to $58 million, up from our prior range of $53 million to $56 million. With our strong underlying fundamentals driving increased cash generation coupled with our positive outlook and view that our share price represents great value, we continue to buy back our stock during the third quarter.

所有這一切的結果是，我們將全年調整後 EBITDA 指引範圍從先前的 5,300 萬美元到 5,600 萬美元提高到了 5,500 萬美元到 5,800 萬美元。由於我們強勁的基本面推動了現金產生量的增加，加上我們積極的前景和認為我們的股價代表巨大價值的觀點，我們在第三季度繼續回購我們的股票。

In the quarter, we repurchased a value of approximately $10.1 million of our stock, bringing our year-to-date repurchases to about $25.3 million. This underscores both our continued confidence in Turtle beach's trajectory and our commitment to enhancing shareholder value. We believe in our vision, and we are putting our resources behind it. Looking ahead, we are excited about the many opportunities in front of us.

本季度，我們回購了價值約 1,010 萬美元的股票，使年初至今的回購額達到約 2,530 萬美元。這凸顯了我們對 Turtle beach 發展軌蹟的持續信心以及我們對提高股東價值的承諾。我們相信我們的願景，並投入資源支持它。展望未來，我們對眼前的眾多機會感到興奮。

We'll continue to focus on innovation and operational excellence, which we are successfully leveraging to expand our market leadership. Our upcoming product launches and the ongoing integration of PDP will further strengthen our position in the broader gaming accessories markets. We remain committed to delivering value to our shareholders and providing best-in-class products for gamers worldwide.

我們將繼續專注於創新和卓越運營，我們正在成功地利用這些來擴大我們的市場領導地位。我們即將推出的產品和正在進行的 PDP 整合將進一步鞏固我們在更廣泛的遊戲配件市場的地位。我們仍然致力於為股東創造價值，並為全球遊戲玩家提供一流的產品。

John will now take us through the financials in more detail. John?

約翰現在將帶我們更詳細地了解財務狀況。約翰？

Thanks, Cris, and good afternoon, everyone as Cris noted our third quarter 2024 revenue was $94.4 million. That's an increase of approximately 60% compared to the year-ago period and driven by increased sales of our products and from PDP. Excluding the positive impact from the PDP products, our net revenue increased approximately 15% compared to last year, highlighting the strength of our results across the board.

謝謝 Cris，大家下午好，Cris 指出我們 2024 年第三季的營收為 9,440 萬美元。與去年同期相比，這一數字成長了約 60%，這主要得益於我們產品和 PDP 銷量的成長。排除PDP產品的正面影響，我們的淨收入比去年成長了約15%，凸顯了我們全面業績的強勁表現。

Gross margin in the third quarter was 36.2% compared to 29.9% last year, which represents a 630 basis point improvement compared to the third quarter of 2023. The increase was driven by reduced promotional spend, lower product and freight costs, partially offset by higher royalty costs due to the mix of business excluding PDP purchase accounting charges and ROCCAT brand transition reserves which are not expected to continue going forward, gross margins would have been 38.3% operating expenses in the third quarter were $27.7 million compared to $20.2 million a year ago and include $3.5 million in costs related to the acquisition of PDP.

第三季的毛利率為 36.2%，去年為 29.9%，較 2023 年第三季提高了 630 個基點。這一增長是由促銷支出減少、產品和貨運成本降低所推動的，但由於業務組合（不包括PDP 購買會計費用和ROCCAT 品牌過渡儲備）而導致的特許權使用費增加部分抵消了這些費用，預計未來不會繼續下去，毛利率將下降第三季營運費用為 2,770 萬美元，佔 38.3%，而去年同期為 2,020 萬美元，其中包括與收購 PDP 相關的 350 萬美元成本。

Operating expenses, excluding non-recurring items. were 24.8% of revenue, which is an improvement from 32.2% in the prior year. This improvement is primarily driven by our strategic efforts to achieve a better balance between revenue enhancing initiatives and our expense management goals. Our third quarter adjusted EBITDA improved to $16.3 million, compared to $1 million in the year ago period. The $15.2 million year-over-year improvement is primarily the result of higher revenues combined with greater efficiencies on both costs and expenses.

營運費用，不包括非經常性項目。佔收入的 24.8%，較上年的 32.2% 有所改善。這項改進主要是由我們的策略性努力所推動的，目的是在增加收入的措施和我們的費用管理目標之間實現更好的平衡。我們第三季調整後 EBITDA 增至 1,630 萬美元，去年同期為 100 萬美元。1520 萬美元的年成長主要是收入增加以及成本和支出效率提高的結果。

On an LTM basis, adjusted EBITA is now $35 million, which is a significant improvement and driven by the higher revenue, improved margins and operating expense leverage. Our third quarter net income was a positive $3.4 million or $0.16 per diluted share compared to a net loss of $3.6 million or a negative $0.21 per diluted share a year ago. Turning to the balance sheet at quarter end, we had net debt of $94.1 million comprised of $107.9 million of outstanding debt and $13.8 million of cash.

以 LTM 計算，調整後的 EBITA 現已達到 3500 萬美元，這是一項重大改進，其推動因素包括更高的收入、更高的利潤率和營運費用槓桿。我們第三季的淨利潤為正 340 萬美元，即稀釋後每股收益 0.16 美元，而一年前淨虧損為 360 萬美元，即稀釋後每股虧損 0.21 美元。轉向季度末的資產負債表，我們的淨債務為 9,410 萬美元，其中包括 1.079 億美元的未償債務和 1,380 萬美元的現金。

The debt balance is comprised of $58.6 million outstanding under our revolving credit line and $49.3 million outstanding on the term loan we used for the PDP acquisition. Inventories at quarter end were $102.3 million compared to $76 million at this point last year. PDP added $26.7 million to inventory and this addition was partially offset by our continued reduction initiatives in non-PDP product inventory. As Cris mentioned during the quarter, we repurchased approximately 688,000 shares for an average price of $14.70 returning about $10.1 million to shareholders through our share repurchase program.

債務餘額包括循環信貸額度下的 5,860 萬美元未償債務和用於 PDP 收購的定期貸款的 4,930 萬美元未償債務。季末庫存為 1.023 億美元，而去年同期為 7,600 萬美元。PDP 增加了 2,670 萬美元的庫存，這一增加部分被我們持續減少非 PDP 產品庫存的措施所抵消。正如 Cris 在本季提到的那樣，我們以 14.70 美元的平均價格回購了約 688,000 股股票，透過股票回購計劃向股東返還約 1,010 萬美元。

Given the attractive levels of the share price and the strong fundamentals of the company and its growth trajectory. This initiative demonstrates our continued confidence in the company's long-term prospects and our commitment to delivering shareholder value. As of quarter end, we have $21.3 million in potential buybacks remaining under the buyback plan. We will continue to consider share buybacks in our quarterly capital allocation review.

鑑於股價的吸引力水準以及公司強勁的基本面及其成長軌跡。這項舉措顯示了我們對公司長期前景的持續信心以及我們對實現股東價值的承諾。截至季末，我們的回購計畫中尚有 2,130 萬美元的潛在回購資金。我們將在季度資本配置審查中繼續考慮股票回購。

Now turning to guidance, we continue to expect full year revenue to be between $370 million and $380 million, which equates to 45% growth at the midpoint compared to 2023. With strong progress on the margin front and the PDP integration progressing smoothly, we are raising our full year adjusted EBITDA guidance for 2024. We expect full year adjusted EBITDA to be between $55 million and $58 million which increases the midpoint to $56.5 million up $2 million from our prior guidance.

現在轉向指引，我們繼續預計全年營收在 3.7 億美元至 3.8 億美元之間，相當於 2023 年中位數成長 45%。隨著利潤率方面取得強勁進展以及 PDP 整合進展順利，我們正在上調 2024 年全年調整後 EBITDA 指引。我們預計全年調整後 EBITDA 將在 5,500 萬美元至 5,800 萬美元之間，這將中點提高至 5,650 萬美元，比我們先前的指導增加 200 萬美元。

As a reminder, our 2024 guidance includes contributions from PDP beginning on March 13th, 2024 when we close the transaction.

提醒一下，我們的 2024 年指引包括從 2024 年 3 月 13 日我們結束交易時開始的 PDP 貢獻。

And now I'll turn the call back over to Cris for additional comments. Cris?

現在我將把電話轉回克里斯以徵求更多意見。克里斯？

Thanks John as we reflect on our transformation over the past year. It's clear that our strategic initiatives are paying off. The acquisition of PDP has not only expanded our product offerings but also enhanced our operational capabilities. We are now better positioned to capitalize on market opportunities and drive sustainable growth.

感謝約翰，讓我們回顧過去一年的轉變。顯然，我們的策略舉措正在取得成效。收購PDP不僅擴大了我們的產品範圍，也增強了我們的營運能力。我們現在處於更好的位置，可以利用市場機會並推動永續成長。

The synergies from this acquisition are already evident in our improved operational efficiencies and expanded market reach. Our commitment to innovation execution and growth remains unwavering. We are continuously exploring new technologies and product features that will set us apart in the competitive gaming accessories market. Recent innovations like our cross-play technology and the groundbreaking stealth pivot controller are just the latest testaments to this commitment, and we are confident that they will drive meaningful growth in the coming quarters.

此次收購所產生的綜效已在我們提高營運效率和擴大市場覆蓋範圍方面體現得淋漓盡致。我們對創新執行和成長的承諾仍然堅定不移。我們不斷探索新技術和產品功能，這將使我們在競爭激烈的遊戲配件市場中脫穎而出。最近的創新，如我們的跨平台遊戲技術和突破性的隱形樞軸控制器，只是這項承諾的最新證明，我們相信它們將在未來幾季推動有意義的成長。

Looking ahead to the holiday season, we're optimistic about our prospects. The holiday season is a critical period for our industry, and we are well prepared with a strong, refreshed line-up of amazing products that cater to the diverse needs of gamers. We anticipate robust demand and are confident that our innovative products will resonate well with consumers.

展望假期，我們對前景感到樂觀。假期是我們行業的關鍵時期，我們已做好充分準備，推出了強大、更新的精彩產品陣容，以滿足遊戲玩家的多樣化需求。我們預期需求強勁，並相信我們的創新產品將與消費者產生良好的共鳴。

I want to thank and recognize our entire team at Turtle Beach for their excellent efforts and contributions, which have delivered another strong quarter. We're excited to close out 2024 on a high note and remain confident about our renewed growth strategy and execution for this year and beyond to drive value for our shareholders and gaming customers.

我要感謝並認可海龜灘整個團隊的出色努力和貢獻，他們為我們帶來了另一個強勁的季度。我們很高興以高調結束 2024 年，並對今年及以後的新成長策略和執行充滿信心，為我們的股東和遊戲客戶帶來價值。

And with that, let's turn to Q&A.

接下來，讓我們轉向問答。

Thank you, ladies and gentlemen, we will now begin the question and answer session.

謝謝各位，女士們、先生們，我們現在開始問答環節。

(Operator Instructions)

（操作員說明）

Your first question comes from the line of Sean McGowan from Roth Capital Partners. Please go ahead.

你的第一個問題來自 Roth Capital Partners 的 Sean McGowan。請繼續。

Thank you. Hi, guys. I'll just ask a couple and then maybe circle back to be fair. But just one clarification or a little more colour, Cris.

謝謝。嗨，大家好。公平起見，我只會問幾個問題，然後再回過頭來。但只是一個澄清或更多一點顏色，克里斯。

When you were talking about market share, can you give a little bit more colour on the headset business you know, year-over-year share increase or changes and how that kind of breaks out console versus PC?

當您談論市場佔有率時，您能否詳細介紹一下您所了解的耳機業務、同比份額的成長或變化，以及遊戲機與 PC 之間的差異？

Sure. Yeah. Hey Sean. Great question. So, when you look at this year, you know, we've really upgraded across our wireless headsets line. We talked about last quarter that we introduced the new stealth 500,600, Atlas Air and Q2 and we drained the channel prior to that. So, we saw some expected share loss up to those launches.

當然。是的。嘿肖恩。很好的問題。因此，當您回顧今年時，您就會知道，我們的無線耳機產品線確實得到了升級。我們談到上個季度我們推出了新的 Stealth 500,600、Atlas Air 和 Q2，並且在此之前我們已經耗盡了管道。因此，我們看到了一些預期的份額損失。

And here in the third quarter, we've done the same thing. We've drained the channel of the old generation of the stealth 700s and then we have reloaded the channel mid Q3 with the new Stealth 700. So, when you look at our trends, you know, we're up about 100 basis points from the prior quarter with those new launches in Q3. Even though we were draining the channel for the Stealth 700s and as we look ahead, we expect to continue to build on that, as we go into the holiday.

在第三季度，我們做了同樣的事情。我們已經耗盡了老一代 Stealth 700 的管道，然後我們在第三季中期用新的 Stealth 700 重新加載了頻道。因此，當您查看我們的趨勢時，您就會知道，隨著第三季推出的新產品，我們比上一季上漲了約 100 個基點。儘管我們正在耗盡 Stealth 700 的管道，但展望未來，我們預計在假期到來時將繼續在此基礎上繼續發展。

As we normally do, we normally pick up share during the holiday season, we expect that to be the case this time as well.

正如我們通常所做的那樣，我們通常會在假期期間增加份額，我們預計這次也是如此。

Ok. And when I said console versus PC, I realize it's not as relevant as it used to be, but what about the like some of the newer console like switch? or how's that looking?

好的。當我說主機與 PC 的比較時，我意識到它不再像以前那樣相關了，但是像一些較新的主機（例如 switch）呢？或者看起來怎麼樣？

Yeah, that, that's a great point and, you know, Circana actually switched up the way they categorize headsets, I probably seen that across the industry. They've now combined as well, the console and PC categories into one gaming headset category. We like that a lot because it really does reflect, you know, how gamers are using their accessories, very much multi-platform these days.

是的，這是一個很好的觀點，你知道，Circana 實際上改變了他們對耳機的分類方式，我可能在整個行業中看到了這一點。他們現在也將遊戲機和 PC 類別合併為一個遊戲耳機類別。我們非常喜歡這一點，因為它確實反映了遊戲玩家如何使用他們的配件，尤其是當今的多平台。

So if you look at the, if you do break it down between console and PC, we are seeing larger gains on the console side. But our PC headsets are up as well. Year-over-year in Q3, I believe our PC headsets were up 150 basis points in the U.S. here.

因此，如果你仔細觀察主機和 PC 之間的情況，我們會發現主機端有更大的效益。但我們的 PC 耳機也已崛起。第三季度，我相信我們的 PC 耳機在美國的銷量比去年同期成長了 150 個基點。

So we're seeing games on both as we get these new products into the market.

因此，當我們將這些新產品推向市場時，我們會看到這兩款產品上都有遊戲。

Okay. And then, for you John, a couple of housekeeping type kinds of things. So, when you say you don't expect the PDP inventory step-up in the ROCCAT brand, you know to proceed going forward. You mean we won't see any in the fourth quarter.

好的。然後，約翰，給你一些家務類的事情。因此，當您說您預計 ROCCAT 品牌的 PDP 庫存不會增加時，您就知道要繼續前進。你的意思是我們在第四季不會看到任何結果。

I just want to be specific on that quarter.

我只想具體說明該季度的情況。

Right. So relative to the relative to PDP inventory step up that is completed that we took charges in both Q2 and Q3 for that, but that is now completed and then relative to ROCCAT, we do not expect any additional reserves as part of the brand transition work.

正確的。因此，相對於已完成的PDP 庫存增加，我們在第二季和第三季都為此承擔了費用，但現在已經完成，然後相對於ROCCAT，我們預計不會有任何額外的儲備作為品牌過渡工作的一部分。

Ok. So, if I dare, does that mean we could see gross margins in the fourth quarter in excess of 40%.

好的。那麼，如果我敢的話，這是否意味著我們第四季的毛利率可能會超過 40%。

Well, I think what I think what certainly, they'll be in the upper 30% range. We would there's typically some higher promotional activity in Q4 and then around Black Friday, Saturday, Monday, etc., for the holidays. And so, that will offset some of the other benefit. But our aggregated, but our margins, our run rate margins going forward are certainly in the target range, which is the upper 30s, which we've previously disclosed.

嗯，我認為我的想法肯定是，他們會在 30% 的範圍內。我們通常會在第四季進行一些較高的促銷活動，然後在黑色星期五、星期六、星期一等假日期間進行。因此，這將抵消一些其他好處。但我們的整體利潤率、未來的運行率利潤率肯定在目標範圍內，也就是我們先前揭露的 30 多歲以上。

Ok. Great. And then, my last question, I guess for you, John is G&A in the fourth quarter, you know, that the relationship of G&A in the fourth quarter to the third quarter kind of bounces around historically, should we expect you know, given that you don't have those? Well, maybe you do.

好的。偉大的。然後，我的最後一個問題，我想對你來說，約翰是第四季度的G&A，你知道，第四季度與第三季度的G&A 關係在歷史上會出現反彈，我們是否應該期望你知道，考慮到這一點你沒有那些嗎？好吧，也許你會的。

You have recurring business acquisition expenses in the fourth quarter? And if we exclude them, would there be a meaningful increase in G&A in the fourth quarter?

您在第四季有經常性的業務收購費用嗎？如果我們排除它們，第四季度的一般行政費用是否會出現有意義的成長？

So integration work, although it's progressing smoothly and ahead of schedule, as Cris noted earlier, Sean we do expect to continue to incur some integration related expenses, obviously, in Q4, but they'll be certainly in a much lower level.

因此，整合工作雖然進展順利且提前，正如 Cris 早些時候指出的那樣，Sean 我們確實預計將在第四季度繼續產生一些整合相關費用，顯然，但它們的水平肯定會低得多。

Okay. And if you were to exclude that, you add it back to EBITDA, would you expect these.

好的。如果你要排除它，然後將其加回 EBITDA，你會期望這些嗎？

Our expenses would rise slightly in Q4 as we invest more in terms of marketing, which is what we've historically done here, which is what you're noticed.

由於我們在行銷方面投入更多，我們的支出在第四季度會略有增加，這是我們歷史上所做的，這也是您所注意到的。

Yeah, thanks. I'll get back in you. Sure.

是的，謝謝。我會回到你身邊。當然。

Thanks John.

謝謝約翰。

Thank you. And your next question comes on the line of Drew Crum from Stifel. Please go ahead.

謝謝。您的下一個問題來自 Stifel 的 Drew Crum。請繼續。

Okay, thanks. Hey guys, good afternoon. Cris, you talked about pulling forward some shipments to avoid potential port strikes during the quarter. Given that and, and based on your retail performance, where does that leave you with respect to channel inventories. You enter 4Q?

好的，謝謝。嘿夥計們，下午好。Cris，您談到提前發貨以避免本季潛在的港口罷工。考慮到這一點，並根據您的零售業績，您的通路庫存將處於何處。你進入4Q了嗎？

Yeah, Drew. It, it looks really good. Channel inventory at this point. We, we saw it, I would say be higher than normal as we exited Q3. And now, as we're into November, it's really at, at what I would call normal levels heading into holiday. So it was really a temporary call it, maybe a 33 week or so pull in on a few of those shipments as the retailers are looking to avoid any delays from any potential port strikes.

是的，德魯。它，看起來確實不錯。此時渠道庫存。我們，我們看到了，我想說的是，當我們退出第三季時，它比正常情況要高。現在，隨著我們進入十一月，它實際上處於我所說的進入假期的正常水平。所以這實際上是一個臨時的稱呼，可能需要 33 週左右的時間來運送其中一些貨物，因為零售商希望避免任何潛在的港口罷工造成的任何延誤。

But as, as we get into, you know, prepping for holiday, now in November, it looks very normal compared to the previous let's call them normal holidays.

但是，當我們進入十一月的假期準備時，與之前的假期相比，它看起來很正常，我們稱之為正常假期。

Got it. Okay. That's helpful. And then John, I think you mentioned you would anticipate a sequential increase in promo spend during 4Q over 3Q. But just kind of looking at that year on year, should we anticipate higher promo spend this fourth quarter versus last fourth quarter?

知道了。好的。這很有幫助。然後約翰，我想您提到您預計第四季度的促銷支出將比第三季度連續增加。但從年比來看，我們是否應該預期第四季的促銷支出將高於去年第四季？

Yes, the certainly the, the we're bigger, we've got more products and we have the new wireless that are now coming out of the market.

是的，當然，我們規模更大，我們擁有更多產品，而且我們擁有現已上市的新型無線產品。

So yes, the answer is yes, we do expect the marketing to be higher here year over year.

所以是的，答案是肯定的，我們確實預計這裡的行銷會逐年提高。

Ok. Makes sense, and then, maybe just one last one for me. Can you address your plans around uses of cash through the balance of the year? Should we expect you to continue to buy back stock? or do you plan to pay off the outstanding balance on the revolver or maybe both? Thanks.

好的。有道理，然後，也許對我來說只是最後一個。您能否解決今年剩餘時間內現金使用的計畫？我們應該期望你繼續回購股票嗎？或者您打算還清左輪手槍的未清餘額，或者兩者都還清？謝謝。

Sure. So, the answer is yes. Obviously, it's going to be a function of collections we do with certain retailers. They do have a different payment term during the holiday. A little more extended, but our cash will be focused primarily on paying down the ABL, as well as to the extent there's an opportunity for us to buy additional share back, then we would look to do that.

當然。所以，答案是肯定的。顯然，這將是我們與某些零售商合作的系列的一個功能。他們在假期期間確實有不同的付款期限。時間稍微長一點，但我們的現金將主要用於償還 ABL，如果我們有機會回購額外的股票，那麼我們會考慮這樣做。

Got it. Thanks guys.

知道了。謝謝你們。

Thanks Drew.

謝謝德魯。

Thanks Drew.

謝謝德魯。

Thank you. And your next question comes from the line of Jack Codera from Maxim Group. Please go ahead.

謝謝。您的下一個問題來自 Maxim Group 的 Jack Codera。請繼續。

Hi, this is Jack Codera calling in for Jack Vander Aarde. Thank you. Going into 4Q holiday season, are you expecting the PDP business to have any differences in terms of seasonality? I know they're both kind of consumer electronics, very similar fit.

大家好，我是傑克‧科德拉 (Jack Codera)，我是傑克‧范德‧阿爾德 (Jack Vander Aarde) 的電話。謝謝。進入第四季假期，您預計PDP業務會出現季節性差異嗎？我知道它們都是消費性電子產品，非常相似。

But do you expect to continue to contribute roughly that 28% you back into that total revenue number?

但您是否預計將繼續貢獻約 28% 的總收入？

Yeah, good question, Jack. I think that it will be pretty normal. You look at the businesses combined now between headsets, controllers, some of the special specialty controllers like the RIFFMASTER, very similar seasonality to the historic headset business.

是的，好問題，傑克。我認為這將是很正常的。你看看現在耳機、控制器、一些特殊控制器（如 RIFFMASTER）之間的業務組合，與歷史上的耳機業務非常相似的季節性。

So I would say yes.

所以我會說是的。

Okay, that's helpful. And then just one other, how are you viewing the consumer? I saw some highlighted data points in the presentation which were helpful, and you kind of mentioned the refreshed product portfolio.

好的，這很有幫助。還有一個問題，您如何看待消費者？我在簡報中看到了一些有用的突出數據點，您提到了更新的產品組合。

Are there any other individual indicators in the mix that are giving you confidence in like a strong holiday season? Any colour that would be helpful? Thank you.

是否有其他單獨的指標讓您對強勁的假期充滿信心？有什麼顏色會有幫助嗎？謝謝。

Sure. Yeah, when you look at you know, the gaming industry in general, we're all enjoying the benefits of a very strong Call of Duty launch. You've probably seen the numbers on that.

當然。是的，當你看看整個遊戲產業時，我們都在享受《決勝時刻》的強勁發布所帶來的好處。您可能已經看過相關數字。

Black Ops Six is doing extremely well, lots of engagement from gamers. That's good for everybody in the industry. So, we're really happy to see that. We think that'll help drive some of the market here even through holiday.

《黑色行動六》的表現非常好，玩家的參與度很高。這對行業中的每個人都有好處。所以，我們真的很高興看到這一點。我們認為，即使在假期期間，這也將有助於推動這裡的一些市場。

We've seen that historically. We're also seeing continued benefits of replacement on the pandemic cycle purchases. So, all those purchases when you know, everyone spiked back in 2020, 2021 we started to see a lot of those really kick in, the last couple of weeks of 2023. A lot of late holiday purchases last year and that's really sustained for the for the peripherals categories and gaming accessories that's really sustained and why you're seeing that accessories are outperforming the broader market this year.

我們在歷史上已經看到了這一點。我們也看到了大流行週期購買中的替換帶來的持續好處。因此，所有這些購買量都在 2020 年、2021 年激增，我們開始看到許多購買量在 2023 年的最後幾週真正開始發揮作用。去年假期後期有很多購買活動，對於外設類別和遊戲配件來說，這種情況確實持續存在，這也是為什麼你會看到今年配件的表現優於大盤。

So we think that's going to carry through in the holiday. There's a lot of new products that we've got out in the market. We know new releases, drive share and drive additional purchases because we've got a ton of great new tech out there for gamers. So, we're excited about how that's going to look, and that's why we're feeling good about the holiday.

所以我們認為這將在假期中繼續下去。我們在市場上推出了許多新產品。我們了解新版本、推動分享並推動額外購買，因為我們為遊戲玩家提供了大量出色的新技術。所以，我們對它的外觀感到興奮，這就是為什麼我們對這個假期感覺良好。

Awesome. Thanks. Congrats on a strong quarter. That's all I had. Thank.

驚人的。謝謝。恭喜季度表現強勁。這就是我所擁有的一切。感謝。

Great. Thanks, Jack.

偉大的。謝謝，傑克。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Your next question comes from the line of Sean McGowen from Roth capital partners. Please go ahead.

您的下一個問題來自 Roth Capital Partners 的 Sean McGowen。請繼續。

Yeah, I'm back. John, on the promotional spending that you're talking about for the fourth quarter, will all of the impact of that increase both sequentially and year over year, all of that be seen in the gross margin or is it going to be kind of split also between selling marketing and the gross margin level?

是的，我回來了。約翰，關於您所說的第四季度的促銷支出，所有這些影響都會連續增長和同比增長，所有這些都會在毛利率中看到，還是會出現某種分裂還在銷售營銷和毛利率水平之間嗎？

Yes. When we talk about promotional spend, the reference really is to is to the gross margin Sean? From my perspective, right? So yes, it's a margin impacting but marketing outside the OpEx, marketing OpEx we do expect to rise in the fourth quarter over Q3 for all the reasons, right? It's a big quarter, very important and then there's, you know, overall different market dynamics with the Black Friday and as well as Cyber Monday, etc.

是的。當我們談論促銷支出時，實際上指的是毛利率 肖恩？從我的角度來看，對嗎？所以，是的，這會影響利潤率，但營運支出以外的行銷，出於各種原因，我們確實預計第四季度的行銷營運支出將比第三季度有所上升，對嗎？這是一個重要的季度，非常重要，而且你知道，黑色星期五和網路星期一等市場動態總體不同。

Right? Okay. And then last one truly for me on, for Cris. Can you talk a little bit about some of the new categories outside of controllers and headsets.

正確的？好的。最後一個是真正為我，為克里斯。您能談談控制器和耳機之外的一些新類別嗎？

Some of the things you either have launched or planning to imminently launch, you know, give us an update on what's going on with some new segments?

您知道，您已經推出或計劃立即推出的一些產品可以讓我們了解一些新細分市場的最新情況嗎？

Sure, sure. Yeah, we've refreshed a bit of the, the mice and keyboards. Here in the quarter. You saw the new Kone Two mice that launched that was looking historically at ROCCAT, the flagship product.

當然，當然。是的，我們更新了一些滑鼠和鍵盤。在這個季度。您看到了新推出的 Kone Two 滑鼠，它是歷史上的旗艦產品 ROCCAT。

Got some great reviews out there on the Kone Two. That'll help support us as we transition, you know, into the turtle beach brand for PC. We're seeing very good results as we mentioned earlier on the PC headset side and we're seeing those gamers come along with us in the category. So happy with the progress there and, and the team's done a great job on the brand transition.

通力二號得到了一些好評。這將有助於支持我們轉型為 PC 版海龜海灘品牌。正如我們之前在 PC 耳機方面提到的那樣，我們看到了非常好的結果，我們看到這些遊戲玩家與我們一起進入該類別。我們對那裡的進展感到非常滿意，團隊在品牌轉型方面做得非常出色。

Obviously, that's always a large, you know, task when we're moving from one brand to the other. And the team's done a fantastic job there. Some of the other categories your music specialty controllers are really interesting for us this year. If you look at the market for the RIFFMASTER as an example. You know, PDP team, you know, did a great job launching that product. That market's around. I want to say $6.5 million or $7 million of retail sales so far this year of which we own 97% of that.

顯然，當我們從一個品牌轉向另一個品牌時，這始終是一項艱鉅的任務。團隊在那裡做得非常出色。今年，您的音樂專業控制器的其他一些類別對我們來說非常有趣。以 RIFFMASTER 的市場為例。您知道，PDP 團隊在推出產品方面做得非常出色。那個市場就在附近。我想說今年到目前為止零售額為 650 萬美元或 700 萬美元，其中我們擁有其中的 97%。

So that's been a nice upside surprise for us. The traction that Fortnite and Fortnight Festival is gaining with some of the, the really fun things that that Epic is doing in that space. It's great to see that those gamers are out there, and we've got some new gear for them to play with outside of the normal sort of traditional controllers and, and headset categories. So, that's really exciting.

所以這對我們來說是一個很好的驚喜。Epic 在該領域所做的一些非常有趣的事情正在為《要塞英雄》和《雙週節》贏得吸引力。很高興看到這些遊戲玩家在那裡，我們為他們提供了一些新的裝備，讓他們可以在正常的傳統控制器和耳機類別之外玩遊戲。所以，這真的很令人興奮。

We've also got some, some really cool products coming up in the Fight stick category as well. So just, just you know, with, with the combined company portfolios between Turtle Beach and PDP. Just some really fun stuff coming out here in the holiday and into next year.

我們還在戰鬥棒類別中推出了一些非常酷的產品。所以，如您所知，Turtle Beach 和 PDP 之間的合併公司投資組合。只是一些非常有趣的東西會在假期和明年出現。

Okay. Thank you very much.

好的。非常感謝。

Thank you. And your next question comes from the line of Martin Young from Opco. Please go ahead.

謝謝。您的下一個問題來自 Opco 的 Martin Young。請繼續。

Alright, thank you for taking my question. Hi, I have a question regarding product design this year, especially the optics on your Stealth 700 Gen 3. Both looks have a, we do have a very refreshed design. I think, similar changes are also consistent with your desktop app.

好的，謝謝你回答我的問題。您好，我有一個關於今年產品設計的問題，特別是你們的 Stealth 700 Gen 3 上的光學器件。兩種外觀都有一個，我們確實有一個非常耳目一新的設計。我認為，類似的變化也與您的桌面應用程式一致。

So can you maybe talk about, you know, is there anything new regarding the product design? And you know how that implies on your future product, both in headsets and other categories?

那麼能否談談產品設計方面有什麼新的東西嗎？您知道這對您未來的產品（無論是耳機還是其他類別）意味著什麼？

Hi, Martin, great question. This is something we, we love to talk about internally and externally. We, we really made a lot of investments in our, our R&D over the last several years to bring these really cool products to market this year. It, it's not just on the external design that you're seeing on that 700 and, and some of the improvements that you noted there on the desktop app and some of the investments we've made there.

嗨，馬丁，好問題。這是我們喜歡在內部和外部談論的話題。在過去的幾年裡，我們確實在研發方面投入了大量資金，以便今年將這些非常酷的產品推向市場。它不僅僅是您在 700 上看到的外部設計，還有您在桌面應用程式上註意到的一些改進以及我們在那裡所做的一些投資。

The team has done a great job of also platforming, you know, all these new products on carbonized chipsets, and that's, that's what you're seeing in the financial performance with the product mix move into these new products, and really helping our business results as well as bringing some really exciting products out to gamers. So, we are excited about the new look and feel of all the products, all the great functionality that's in these products. It's what you're going to see from us moving forward on the innovation front with the new PDP team that's on board it just adds to the brain power that we've got behind all these products and the expertise that we've got in the gaming industry.

團隊在碳化晶片組上的所有這些新產品平台化方面也做得非常出色，這就是您在財務業績中看到的，產品組合轉移到這些新產品中，並真正幫助我們的業務結果以及為遊戲玩家帶來一些真正令人興奮的產品。因此，我們對所有產品的新外觀和感覺以及這些產品中的所有出色功能感到興奮。這就是您將看到的，我們與新的 PDP 團隊一起在創新方面不斷前進，這只會增加我們在所有這些產品背後的人才以及我們在該領域所擁有的專業知識。

So I thank you for noticing number one. It's something that we take a great deal of pride in here. Through the whole organization and we love bringing these kinds of products to market.

所以我感謝你注意到第一。這是我們在這裡感到非常自豪的事情。透過整個組織，我們喜歡將此類產品推向市場。

Great, thanks. My next question is about, you know, how you feel about the potential uplift from a new crop of games in holiday season, for example, Call of Duty Black Ops Six seems to have a lot of traction. Are you seeing a concurrent lip to your headsets demand because of some of the higher profile games launching into the holiday season.

太好了，謝謝。我的下一個問題是，你知道，你對假期期間一系列新遊戲的潛在提升有何看法，例如，《決勝時刻：黑色行動六》似乎有很大的吸引力。由於一些備受矚目的遊戲在假期期間推出，您是否看到了耳機需求的同時增長。

Yes. It always has a good effect across the accessory space when you see a strong launch, like we're seeing with Call of Duty. So, we have seen that lift over the last few weeks. We did anticipate some lift so that's included in our guidance for the year.

是的。當你看到強勁的發佈時，它總是在配件領域產生良好的效果，就像我們在《決勝時刻》中看到的那樣。因此，我們在過去幾週看到了這種增長。我們確實預計會有一些提升，因此這已包含在我們今年的指導中。

But, you know, as you get that product, if it continues to sustain, if you get some, some new surprises, which we always seem to have every year, some nice surprise, you know, launches out there that drive engagement, that could be another catalyst for us, you know, for Q4 and as you go on to 2025.

但是，你知道，當你獲得該產品時，如果它繼續維持下去，如果你得到一些新的驚喜，我們似乎每年都會有一些驚喜，你知道，推出了一些可以推動參與的驚喜，你知道，對於我們來說，這可能是第四季甚至2025 年的另一個催化劑。

This is why we're feeling good about the holiday for gaming. If you look at how accessories have been doing all year. We don't really see that falling off here in Q4. We think that with all the new products on the market with great games out there, like Call of Duty, as you noted, you know, we're really in a good position here to see a strong holiday. So let's see how it plays out.

這就是為什麼我們對遊戲假期感覺良好。如果你看看配件全年的表現。我們並沒有真正看到第四季出現下降。我們認為，正如您所指出的，市場上有許多新產品和出色的遊戲，例如《決勝時刻》，您知道，我們確實處於有利位置，可以看到一個強勁的假期。那麼讓我們看看結果如何。

You know, we've got some, a lot of time ahead of us here yet, as you know, the last two months of the year are always very heavy and a huge part of our years.

你知道，我們還有很多很多的時間，但正如你所知，一年的最後兩個月總是非常沉重，是我們一年中的很大一部分。

But we're feeling good about how we're positioned going in.

但我們對自己的定位感覺良好。

Got it. Thank you, Chris. That's it for me.

知道了。謝謝你，克里斯。對我來說就是這樣。

Thanks Martin.

謝謝馬丁。

Thank You, Martin.

謝謝你，馬丁。

Thank you. There are no further questions at this time. I will hand the call back to Mr. Cris Keirn from CEO for any closing remarks.

謝謝。目前沒有其他問題。我會將電話轉給執行長 Cris Keirn 先生，讓其發表結束語。

Thank you, operator, and thanks, everyone, for joining the call. Have a great day.

謝謝接線員，也謝謝大家加入通話。祝你有美好的一天。

Thank you and that concludes our conference for today. Thank you all for participating. You may now disconnect.

謝謝大家，我們今天的會議就到此結束。感謝大家的參與。您現在可以斷開連線。