Turtle Beach Corp (TBCH) 2024 Q4 法說會逐字稿

Greetings and welcome to the Turtle Beach fourth-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

大家好，歡迎參加 Turtle Beach 2024 年第四季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce Jacques Cornet with ICR. Please go ahead.

現在我很高興向大家介紹 ICR 的 Jacques Cornet。請繼續。

Thank you, operator. On today's call, we'll be referring to the press release filed this afternoon that details the company's fourth-quarter and year-end 2024 results. The release is available on the press releases page of the company's investor relations website corp.turtlebeach.com. There you'll also find the latest earnings presentation that supplements the information discussed on today's call. And finally, a recording of the call will be available on the events and presentation section of the company's investor relations website later today.

謝謝您，接線生。在今天的電話會議上，我們將參考今天下午提交的新聞稿，其中詳細介紹了該公司 2024 年第四季和年終的業績。新聞稿可在公司投資者關係網站 corp.turtlebeach.com 的新聞稿頁面上查閱。您還可以在那裡找到最新的收益報告，以補充今天電話會議上討論的資訊。最後，電話會議的錄音將於今天晚些時候在公司投資者關係網站的活動和演示部分提供。

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. 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.

請注意，本次電話會議中的一些評論可能包括聯邦證券法所定義的前瞻性陳述。有關公司信念和期望的陳述包含諸如可能、將會、可以、相信、期望、預期等詞語和類似表達，構成前瞻性陳述。這些聲明涉及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。

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. 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 identifies specific risk factors that also may cause actual results or events to differ materially from those described in our forward-looking statements.

儘管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。因此，本公司鼓勵您查看今天的新聞稿和提交給美國證券交易委員會的文件中包含的安全港聲明和風險因素，包括但不限於其 10-K 表年度報告和其他定期報告，這些報告確定了可能導致實際結果或事件與我們的前瞻性聲明中描述的結果或事件存在重大差異的具體風險因素。

The company does not undertake to publicly update or revise any forward-looking statements after this conference call. The company also notes that on this call we'll 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 press release and presentation.

本公司不承諾在本次電話會議後公開更新或修改任何前瞻性聲明。該公司也指出，在本次電話會議上我們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公認會計原則或 GAAP 編制的資訊的補充。您可以在今天的收益新聞稿和簡報中提供的對帳表中找到這些指標與公司報告的 GAAP 結果的對帳表。

Hosting the call today are Chris Keirn, Chief Executive Officer; and Mark Weinswig, Chief Financial Officer.

今天主持電話會議的是執行長 Chris Keirn；以及財務長馬克溫斯維格 (Mark Weinswig)。

With that, I'll turn the call over to Chris.

說完這些，我會把電話轉給克里斯。

Thanks, Jacques. Good afternoon, everyone, and welcome to our fourth-quarter and year-end 2024 earnings call. I'm thrilled to report that we ended a record breaking 2024 with a record-breaking quarter. We achieved our highest ever quarterly results in both revenue and adjusted EBITDA, underscoring the strength and resilience of our strategy, execution and business model.

謝謝，雅克。大家下午好，歡迎參加我們的 2024 年第四季和年終收益電話會議。我很高興地報告，我們以破紀錄的季度結束了破紀錄的 2024 年。我們在收入和調整後 EBITDA 方面均取得了有史以來最高的季度業績，凸顯了我們的策略、執行和商業模式的實力和韌性。

This strong performance was driven by several key factors. Our acquisition of PDP has been a game changer, significantly expanding our product portfolio and market reach and infusing the company with more amazing talent and expertise. PDP delivered an immediate positive impact on our performance at the time of the acquisition, and the completion of our integration activities in Q4 continued to drive results.

這一強勁表現是由幾個關鍵因素推動的。我們對 PDP 的收購改變了遊戲規則，大大擴展了我們的產品組合和市場範圍，並為公司注入了更多優秀的人才和專業知識。PDP 在收購時對我們的業績產生了立竿見影的正面影響，而我們在第四季度完成的整合活動繼續推動了業績的成長。

For the fourth quarter, revenue was $146.1 million, up 46.8% compared to the same quarter last year, driven primarily by incremental sales and retail distribution for PDP, as well as low-single digit percentage growth for Turtle Beach branded products. We were able to reduce our promotional spend as a percentage of revenue for the fourth quarter and full year on the strength of our next generation product launches in 2024. And we're pleased to see ASP increases as a result. This promotional approach also contributed to improved profitability that was achieved for the quarter and full year.

第四季營收為 1.461 億美元，比去年同期成長 46.8%，主要得益於 PDP 的增量銷售和零售分銷，以及 Turtle Beach 品牌產品的低個位數百分比成長。由於 2024 年下一代產品的推出，我們能夠降低第四季度和全年促銷支出佔收入的百分比。我們很高興看到平均售價因此上漲。這種促銷方式也有助於提高本季和全年的獲利能力。

Adjusted EBITDA for the fourth quarter was $35.7 million, a significant increase from $14 million in the same period last year. The substantial improvement with our adjusted EBITDA growing at a faster pace than our revenue reflects our ongoing focus to enhanced efficiency and streamline our processes. As one example, we expect to realize more than $13 million in annual cost synergies from the PDP acquisition. Surpassing our initial expectations of $10 million to $12 million. These results underscore our commitment to driving profitability and operational excellence as we continue to optimize our expanded portfolio and organization.

第四季調整後EBITDA為3,570萬美元，較去年同期的1,400萬美元大幅成長。我們的調整後 EBITDA 成長速度快於營收成長速度，這反映了我們持續致力於提高效率和簡化流程。舉個例子，我們預計透過 PDP 收購實現每年超過 1300 萬美元的成本綜效。超出了我們最初預期的 1000 萬至 1200 萬美元。這些結果強調了我們在繼續優化擴大的產品組合和組織的同時，致力於提高獲利能力和卓越營運的承諾。

To that point, our relentless focus on operational excellence has yielded substantial improvements across the company. From supply chain optimization to cost management, our efforts have enhanced efficiency and profitability while positioning us for sustained growth. These efforts include preparations and mitigations for the impact of any new tariffs. 2024 was truly a transformational year for Turtle Beach. We have built a solid foundation for future expansion, and I'm confident that we are well positioned to capitalize on the opportunities ahead.

到目前為止，我們對卓越營運的不懈關注已經為整個公司帶來了實質的改進。從供應鏈優化到成本管理，我們的努力提高了效率和獲利能力，同時也為我們持續成長奠定了基礎。這些努力包括為任何新關稅的影響做好準備並減輕其影響。 2024 年對 Turtle Beach 來說確實是轉型的一年。我們已經為未來的擴張奠定了堅實的基礎，我相信我們已做好準備，抓住未來的機會。

With that, let's dive into a few takeaways from 2024 and the fourth quarter. We're pleased to see that as we expected, the full year 2024 growth of 6% for US gaming accessories outpaced the overall gaming market, which was slightly down per Circana data. Turtle Beach branded gaming headsets revenue share in the US increased 270 basis points in the fourth quarter compared to the previous quarter, supported by the launch of our new Stealth 700 Gen 3 premium wireless headset built on our next generation platform design.

有了這些，讓我們深入了解 2024 年和第四季的一些要點。我們很高興地看到，正如我們預期的那樣，2024 年全年美國遊戲配件的增長率為 6%，超過了整體遊戲市場，根據 Circana 的數據，整體遊戲市場略有下降。與上一季相比，Turtle Beach 品牌遊戲耳機在美國第四季的營收份額增加了 270 個基點，這得益於我們基於下一代平台設計的全新 Stealth 700 Gen 3 高階無線耳機的推出。

For the controllers and gamepads category, Circana data shows that our revenue growth in the US significantly outpaced the market with a 25% increase in retail sales for 2024, while the market grew about 2.5%. Notably, our premium Victrix Pro BFG and Turtle Beats Stealth Ultra controllers ranked as the second and third best-selling third party game pads during the year.

對於控制器和遊戲手把類別，Circana 數據顯示，我們在美國的營收成長顯著超過市場，2024 年零售額成長 25%，而市場成長約 2.5%。值得注意的是，我們的高階 Victrix Pro BFG 和 Turtle Beats Stealth Ultra 控制器在當年的第三方遊戲手把暢銷榜中分別位居第二和第三。

Additionally, our Riffmaster wireless guitar controllers, perfect for Fortnite Festival, continued dominating the music controller category with a number one share in the US.

此外，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，在美國佔有第一的份額。

Over the course of the year, our strong cash generation enabled us to continue to return value to our shareholders. For the full year, we executed nearly $28 million in share buybacks at an average price of $15.39 per share. These repurchases were the largest in our history and underscore our confidence in Turtle Beach's long-term growth prospects and our dedication to enhancing shareholder value. As we move forward, we will maintain a sharp focus on capital allocation, ensuring that our financial strategies align with our goal of delivering sustained value and growth.

在這一年中，我們強勁的現金創造能力使我們能夠繼續為股東帶來回報。全年我們以平均每股 15.39 美元的價格回購了近 2,800 萬美元的股票。此次回購是我們史上規模最大的一次，凸顯了我們對 Turtle Beach 長期成長前景的信心以及我們致力於提高股東價值的決心。在我們前進的過程中，我們將繼續密切關注資本配置，確保我們的財務策略與實現持續價值和成長的目標保持一致。

Before turning the call over, I'd like to take a moment to acknowledge some important updates in our leadership team. First, I'm delighted to welcome Mark Weinswig as our new Chief Financial Officer. Mark brings a wealth of experience and a proven track record of financial leadership. We're confident that he will be instrumental in driving our financial strategy and supporting our growth initiatives. Welcome aboard, Mark.

在轉交電話之前，我想花點時間了解我們領導團隊的一些重要更新。首先，我很高興歡迎馬克溫斯維格 (Mark Weinswig) 擔任我們的新任財務長。馬克擁有豐富的經驗和卓越的財務領導能力。我們相信，他將在推動我們的財務策略和支持我們的成長計劃方面發揮重要作用。歡迎加入，馬克。

At the same time, I'd like to extend our gratitude to John Hanson as he embarks on retirement after 11 years of dedicated service to Turtle Beach. John's contributions have been invaluable in steering the company through many significant milestones and challenges. We want to thank John for his commitment and leadership and wish him all the best in his well-deserved retirement.

同時，我要向約翰漢森表示感謝，他為 Turtle Beach 奉獻了 11 年，即將退休。約翰的貢獻對於帶領公司度過許多重要的里程碑和挑戰起到了無價的作用。我們要感謝約翰的承諾和領導，並祝福他在當之無愧的退休生活中一切順利。

Mark will now take us through the financials in more detail and 2025 guidance. Mark?

馬克現在將向我們更詳細地介紹財務狀況和 2025 年指導。標記？

Good afternoon everyone, and thank you, Chris, for the warm welcome. I am truly honored to join Turtle Beach as the new Chief Financial Officer. I am excited to work alongside such a talented and dedicated team and look forward to contributing to its continued success. I would also like to extend my gratitude to John for his guidance and direction during this transition period.

大家下午好，謝謝克里斯的熱情歡迎。我非常榮幸能夠加入 Turtle Beach 並擔任新任財務長。我很高興能與這樣一支才華橫溢、敬業的團隊一起工作，並期待為團隊的持續成功做出貢獻。我也要向約翰在此過渡時期給予的指導和指引表示感謝。

As Chris mentioned, our fourth quarter of 2024 revenue was at an all-time record of $146 million, reflecting incremental revenue from the PDP business, our next generation products, and solid execution. In addition to the strong revenue performance, our gross margin for the fourth quarter improved to 37%, a 500 basis points improvement compared to 32% from the year ago period.

正如克里斯所提到的，我們 2024 年第四季的營收創下了 1.46 億美元的歷史新高，反映了 PDP 業務、我們的下一代產品和穩健的執行帶來的增量收入。除了強勁的營收表現外，我們第四季的毛利率還提高至 37%，與去年同期的 32% 相比提高了 500 個基點。

Included in the cost of sales for the most recent quarter is a $3.4 million charge related to a loss of inventory in transit. Operating expenses of $30.6 million were 21% of revenue compared to 24% in the prior year, reflecting the improved leverage of the business from the higher revenue base. We continue to invest in new products and product line extensions to expand our product portfolio and grow our addressable market.

最近一個季度的銷售成本中包括與運輸途中庫存損失相關的 340 萬美元費用。營運費用為 3,060 萬美元，佔營收的 21%，而去年同期為 24%，反映出業務槓桿率因收入基數增加而提高。我們繼續投資新產品和產品線擴展，以擴大我們的產品組合併擴大我們的潛在市場。

Most importantly, our fourth quarter adjusted EBITDA improved to an all-time quarterly record of $35.7 million compared to $14 million in the year ago period. For the full year, adjusted EBITDA was $56.4 million compared to $6.5 million in the prior year. The significant increase in adjusted EBITDA was driven by higher revenues combined with the cost containment actions taken, providing strong operating leverage.

最重要的是，我們第四季的調整後 EBITDA 增至創紀錄的 3,570 萬美元，而去年同期為 1,400 萬美元。全年調整後的 EBITDA 為 5,640 萬美元，而上年為 650 萬美元。調整後 EBITDA 的大幅成長得益於更高的收入和採取的成本控制措施，從而提供了強大的營運槓桿。

Now turning to the balance sheet, at year end, net debt was $85 million comprised of $98 million of outstanding debt and $13 million of cash. The debt balance is comprised of $49 million outstanding under our revolving credit line and $49 million on the term loan. One important item to note is that just this week we nearly paid off the entire revolving line balance due to strong cash receipts.

現在回顧資產負債表，截至年底，淨債務為 8,500 萬美元，其中包括 9,800 萬美元的未償債務和 1,300 萬美元的現金。債務餘額包括循環信貸額度下的未償還債務 4,900 萬美元和定期貸款的 4,900 萬美元。需要注意的一件重要事情是，就在本週，由於現金收入強勁，我們幾乎還清了全部循環信用額度餘額。

During the fourth quarter, we repurchased approximately 162,000 shares at an average price of $15 per share, returning $2.4 million to shareholders through our share repurchase program. For the full year, we repurchased a total of $27.8 million. Our current share repurchase program expires in April. In line with our continued commitment to return capital to shareholders, we are opportunistically assessing various potential share repurchase strategies.

第四季度，我們以平均每股 15 美元的價格回購了約 162,000 股，透過股票回購計畫向股東返還了 240 萬美元。全年我們共回購了 2,780 萬美元。我們目前的股票回購計畫將於四月到期。為了履行我們向股東返還資本的持續承諾，我們正在擇機評估各種潛在的股票回購策略。

Turning to guidance, we are expecting full year 2025 revenue to be in the range of $395 million to $405 million. This represents 7% growth at the midpoint compared to 2024. We expect our full year 2025 adjusted EBITDA to be in the range of $68 million to $72 million. The midpoint for 2025 represents a greater than 200 basis points improvement, an adjusted EBITDA margin, and 24% growth compared to $56 million of EBITDA in 2024. Both of these will be record levels for the company.

談到指導，我們預計 2025 年全年營收將在 3.95 億美元至 4.05 億美元之間。與 2024 年相比，這意味著中期成長率為 7%。我們預計 2025 年全年調整後 EBITDA 將在 6,800 萬美元至 7,200 萬美元之間。2025 年的中點代表超過 200 個基點的改善、調整後的 EBITDA 利潤率以及與 2024 年 5,600 萬美元的 EBITDA 相比增長 24%。這兩項成績都將創下該公司的最高紀錄。

As we navigate recent volatility in the retail market, we want to provide additional context on expected seasonality. First, it's important to note that we typically see the majority of our revenues in the second half of the year driven by the holiday season. We believe the second half of this year will see an even larger portion of revenues than usual due to the anticipated launch of new games and console platforms. As such, we expect the first quarter will count for approximately 15% to 16% of full year revenues.

在我們應對近期零售市場的波動時，我們希望提供更多有關預期季節性的背景資訊。首先，值得注意的是，我們大部分的收入通常來自下半年的假期。我們相信，由於預計將推出新遊戲和遊戲機平台，今年下半年的收入份額將比往年更高。因此，我們預計第一季的營收將佔全年營收的約 15% 至 16%。

Finally, as Chris noted, we are actively monitoring the changing tariff environment. We expect this to be a dynamic situation for the time being. Our full year 2025 guidance includes the expected net impact of the tariffs currently in place. We expect to provide further clarity in future calls.

最後，正如克里斯所說，我們正在積極監控不斷變化的關稅環境。我們預計目前這將是一個動態的情況。我們對 2025 年全年的指導包括了現行關稅的預期淨影響。我們希望在未來的電話會議中提供進一步的澄清。

Now I'll turn the call back over to Chris for additional comments.

現在我將把電話轉回給克里斯以徵求更多意見。

Thanks, Mark. We've never been more excited about the future of Turtle Beach considering the record quarter we delivered in Q4 and the new baseline of performance for the company in 2025 and beyond. We've discussed how our strategic efforts could put us in a position to exceed previous highs lasting for the company during the Battle Royale surge in 2018 and the pandemic era in 2020 and 2021. Q4 demonstrated that our new run rates and scale have already surpassed those previous milestones, and we're energized to expand on that success with a record 2025.

謝謝，馬克。考慮到我們第四季度創下的業績記錄以及公司在 2025 年及以後的新業績基準，我們對 Turtle Beach 的未來感到前所未有的興奮。我們已經討論了我們的策略努力如何讓我們能夠超越公司在 2018 年大逃殺熱潮以及 2020 年和 2021 年疫情期間創下的先前高點。第四季表明，我們的新運行率和規模已經超越了先前的里程碑，我們有動力在 2025 年創下紀錄的基礎上擴大這一成功。

Our steadfast dedication to innovation, exceptional execution, and growth continues to distinguish Turtle Beach as a front runner in the gaming accessories market. We remain committed to driving expansion and complementary product categories and executing on accretive M&A to drive additional scale in our business.

我們堅定不移地致力於創新、卓越執行和成長，使 Turtle Beach 繼續成為遊戲配件市場的領導者。我們將繼續致力於推動產品類別的擴張和互補，並執行增值性併購，以推動業務規模的擴大。

As always, our amazing team at Turtle Beach is the driving force behind our results, and I want to thank them for their contributions and the transformative and record year. We remain confident in our strategy and focused on delivering value for our shareholders and gaming customers.

像往常一樣，Turtle Beach 出色的團隊是我們取得成果的推動力，我要感謝他們的貢獻以及變革和創紀錄的一年。我們對我們的策略充滿信心，並專注於為我們的股東和遊戲客戶創造價值。

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

接下來，讓我們進入問答環節。

Thank you. We'll now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員指示）

Sean McGowan, Roth Capital Partners.

麥高恩 (Sean McGowan)，羅斯資本合夥公司 (Roth Capital Partners)。

Hi guys, thank you. Chris, could you possibly put any kind of a number around what you expect the impact to be from tariffs, is it simply a reduction in sales? Is it increasing in cost or is it both?

大家好，謝謝大家。克里斯，您能否給出一個數字來說明您預計關稅的影響是什麼？這只會導致銷售額的減少嗎？成本會增加嗎？還是兩者皆有？

Yeah, hey Sean, it's a great question. It's something we've spent quite a bit of time on, preparing for tariffs, looking at our mitigations, and looking at what the future may look like for tariffs. As far as putting a number on it, it would be in the range of several million of EBITDA if we were able to -- If they came off tomorrow and tariffs didn't return, it would be a benefit of several millions for us.

是的，嘿，肖恩，這是一個很好的問題。我們花了相當多的時間來準備關稅，研究我們的緩解措施，並研究關稅的未來方向。至於具體數字，如果我們能夠做到的話，那麼 EBITDA 將在幾百萬左右——如果他們明天取消關稅並且不再恢復，那麼我們將獲得幾百萬的收益。

If there are additional tariffs, it's something that we -- it's a very dynamic environment and trying to estimate what might come down in that respect is something that we're tracking, and I feel very good about what the team has done from a mitigation standpoint and our preparedness for any new tariffs that may come down, but clearly not knowing what those might be, could have an impact on our results.

如果有額外的關稅，這是一個非常動態的環境，我們正在試圖估計這方面可能出現的情況，並且正在跟踪，我對團隊從緩解角度所做的工作以及我們對任何可能出現的新關稅的準備感到非常滿意，但顯然不知道這些關稅是什麼，可能會對我們的結果產生影響。

Okay, thank you. Maybe Mark for you a question on the margin. If we add back that inventory charge, I think that's all in COGS, so does that imply that gross margin in the quarter would have been 39% and maybe more importantly, is that a level we should expect at this kind of level of revenue going forward.

好的，謝謝。也許在邊緣上為你標記一個問題。如果我們加上庫存費用，我認為這全部都是銷貨成本，那麼這是否意味著本季的毛利率將達到 39%，也許更重要的是，這是我們在未來這種收入水準下應該預期的水平。

Yeah, Sean, thanks for the question. So we actually put in today's release, we added in the financial outlook section, a part that actually talks about our go forward expectations for gross margins. We noted in there that we're now focusing on mid to high 30s in terms of gross margin percentage for the full year.

是的，肖恩，謝謝你的提問。因此，我們實際上在今天的發布中，在財務展望部分中添加了一個部分，其中實際上討論了我們對未來毛利率的預期。我們在那裡指出，我們現在關注的是全年毛利率百分比達到 35% 左右。

Obviously our gross margin is very much reflective of revenues, so you know we'll be very much back and load in terms of the margin percentage, but we feel very good about this expansion and our potential margin opportunity.

顯然，我們的毛利率很大程度上反映了收入，因此您知道我們的利潤率百分比將會大幅下降，但我們對擴張和潛在的利潤機會感到非常樂觀。

Okay, let me finish with a question about buybacks. So, if you look back, you contemplated things like the Dutch, or you've done some buybacks. I think the upper range, if I remember correctly, on the Dutch was around [15], so, should we view this current price as an attractive one and would you consider doing something kind of big event like that?

好的，讓我以一個關於回購的問題來結束。所以，如果你回顧一下，你會發現你考慮過像荷蘭人一樣的事情，或者你做過一些回購。如果我沒記錯的話，我認為荷蘭的上限大約是 [15]，那麼，我們是否應該將當前價格視為一個有吸引力的價格，您會考慮做這樣的大事嗎？

Yeah, this is something that we're constantly assessing. We are committed to look at how we can return capital to shareholders and we're going to be opportunistic about opportunities in that range. Clearly, we believe that there's a lot of value here that is not being recognized in the current price. So, we do feel that the stock is extremely attractive at the pricing that it is, so that factors into our decisions clearly.

是的，這是我們一直在評估的事情。我們致力於研究如何向股東返還資本，並且我們將抓住這方面的機會。顯然，我們認為這裡有很多價值尚未在當前價格中得到認可。因此，我們確實認為該股票的定價極具吸引力，這顯然會影響我們的決策。

Very helpful. Thank you.

非常有幫助。謝謝。

Thanks, Sean.

謝謝，肖恩。

Jack Vander Aarde, Maxim Group.

傑克·范德·阿爾德，Maxim 集團。

Hey guys, great. Welcome to Mark and congrats to John again. Thanks for taking my questions. So Chris, maybe for you, can you just touch on your revenue outlook in terms of where you see -- I guess by product category and then also where you have the greatest visibility or maybe the greatest, the least visibility in terms of geographical regions. Thanks.

嘿，大家好，太棒了。歡迎馬克並再次祝賀約翰。感謝您回答我的問題。那麼克里斯，也許對你來說，你能否從你所看到的角度談談你的收入前景 - 我想是按產品類別，然後還有你在地理區域方面具有最大可見度或最大可見度或最小可見度的地方。謝謝。

Sure, hey Jack, thanks for the question. Yeah, when you look at the outlook, I believe taking a pretty conservative approach here based on what we're seeing so far in 2025. We anticipated that we'd seen a bit of a stronger market at this point when we were going into the holiday. We did see a bit of a decline in the markets in December year over year, and we always talk about how Q4 sort of leads into Q1 performance, and we are seeing that in Q1, as we noted, as you probably saw there in the release, the markets in the US for accessories for gaming were down pretty significantly in January.

當然，嘿傑克，謝謝你的提問。是的，當你展望未來時，我認為根據我們目前對 2025 年的觀察，應該採取相當保守的態度。我們預計，在假期即將到來之際，市場將會變得更加強勁。我們確實看到 12 月份市場同比略有下滑，我們總是談論第四季度如何引領第一季度的表現，我們看到在第一季度，正如我們指出的，正如您可能在發布會上看到的那樣，美國遊戲配件市場 1 月份下滑相當明顯。

And so what we believe is going to happen for '25 is that, we think it'll continue to be a bit softer here in the first half of the year, but we're very excited about what's happening in the back half of the year. The two main drivers there, Nintendo has confirmed that at some point in 2025, Nintendo Switch 2 will launch and that will be an extremely positive factor for everyone in gaming.

因此，我們認為 2025 年的情況是，我們認為上半年經濟將繼續疲軟，但我們對下半年的情況感到非常興奮。這兩個主要驅動力，任天堂已經確認，Nintendo Switch 2 將於 2025 年某個時候推出，這對遊戲界的每個人來說都是一個極其積極的因素。

And then secondly, as GTA 6 is planned to be launched this fall. Those two factors are going to have a tremendous effect on the gaming accessories markets in the back half of the year. And so our overall revenue for the year reflects that dynamic.

其次，GTA 6 計劃於今年秋季推出。這兩個因素將對下半年的遊戲配件市場產生巨大影響。因此，我們今年的總收入反映了這種動態。

I think the second part of your question was around geographies and categories. So when you look at what Turtle Beach has been able to do over the last couple of years. We've been driving additional revenue in categories that are adjacent to gaming headsets, and we've made a ton of progress there, particularly with the PDP acquisition to where we believe 2025, more than a third of our revenues are going to be coming from non-headset categories.

我認為你問題的第二部分是關於地理和類別的。所以，當你看看 Turtle Beach 在過去幾年所取得的成就時。我們一直在遊戲耳機週邊類別中增加收入，並且取得了巨大進展，特別是收購 PDP 之後，我們相信到 2025 年，我們超過三分之一的收入將來自非耳機類別。

And that continues to increase for us and I do think over time you're going to see that approaching 40%, 50% of our revenues being outside of headsets. From a geographical standpoint, we have about rough and tough maybe 70% of the revenue domestically, about 25% in UK and Europe, and then Asia is a single digit contributor to our revenue.

而且這個數字還在持續成長，我認為隨著時間的推移，你會看到我們 40% 甚至 50% 的收入來自耳機以外的業務。從地理角度來看，我們大約 70% 的收入來自國內，大約 25% 的收入來自英國和歐洲，而亞洲對我們的收入貢獻率僅為個位數。

Okay, great, I appreciate that. And then maybe just a follow up in terms of the adjusted EBITDA guidance. So the 2025 EBITDA guidance appears very strong considering the revenue outlook. I appreciate the commentary around the gross margins, which are much stronger than previous years for sure, and sounds like it considers the tariff impact.

好的，太好了，我很感激。然後可能只是對調整後的 EBITDA 指引進行跟進。因此，考慮到收入前景，2025 年 EBITDA 指引看起來非常強勁。我很欣賞有關毛利率的評論，毛利率肯定比前幾年高得多，而且聽起來考慮了關稅的影響。

So what about the operating expense line? Are we -- maybe if you could just provide some sense of how that compares maybe seasonality wise to the prior year and just our costs coming down. Is there more non-cash add backs? Any color that would be helpful.

那麼營業費用線怎麼樣呢？我們—也許您能提供一些與去年相比在季節性方面以及我們的成本下降方面的情況。還有更多非現金回饋嗎？任何有幫助的顏色。

Sure, yeah, we expect to continue to get leverage on our operating expenses. This has been one big benefit for us obviously with the acquisition and the synergies that we've realized there, we've seen a dramatic improvement, in our leverage for OpEx and I think this year what you'll see is it, it will continue to improve as we go through the year because those synergies are essentially -- we're going to realize all of those for the full year of 2025, that $13 million that we mentioned earlier.

當然，是的，我們希望繼續利用我們的營運費用。顯然，透過此次收購以及我們實現的協同效應，這對我們來說是一個巨大的好處，我們的營運支出槓桿率有了顯著提高，我認為今年你會看到，隨著時間的推移，它將繼續改善，因為這些協同效應本質上是——我們將在 2025 年全年實現所有這些，也就是我們之前提到的 1300 萬美元。

And we think there's continued opportunities there as we continue to drive, sort of streamline our processes and look for opportunities to leverage that. So I think from a seasonality standpoint it'll be similar to a run rate year but on a much lower run rate level than what we've seen in the past.

我們認為，隨著我們繼續推動、簡化流程並尋找機會利用這一點，那裡仍然存在機會。因此，我認為從季節性的角度來看，它將與運行率年相似，但運行率水平比我們過去看到的要低得多。

Okay, great. I appreciate the color there.

好的，太好了。我很欣賞那裡的色彩。

I'll hop back in the queue. Thanks guys.

我會重新回到隊列中。謝謝大家。

Thanks, Jack.

謝謝，傑克。

(Operator Instructions)

（操作員指示）

Martin Yang, Oppenheimer.

馬丁楊，奧本海默。

Hi. Thank you for taking the question. So first, can you remind us your sensitivity to the currency changes and what happens if the (inaudible) continues to weaken or whether, a currency movement was factored into your annual guidance. Thank you.

你好。感謝您回答這個問題。那麼首先，您能否提醒我們您對金錢變化的敏感度，以及如果（聽不清楚）繼續走弱會發生什麼，或者貨幣變動是否已納入您的年度指導中。謝謝。

Thank you for the question. Right now, we are seeing some benefits in terms of just the strengthening market for us on the FX side. We have taken into account, potential changes. We do not do any hedging or any type of transactions like that. But you know we have in a sense a natural hedge in terms of the amount of revenues that we have in different currencies. So at this point, we would say that it's something that we are looking at closely, but we feel very confident with our outlook for 2025 based on the results so far in the first three months of the year.

謝謝你的提問。目前，我們看到外匯市場走強為我們帶來了一些好處。我們已經考慮到潛在的變化。我們不進行任何對沖或任何類似的交易。但你知道，從某種意義上說，我們對不同貨幣的收入金額有一種自然的對沖。因此，目前我們可以說這是我們正在密切關注的事情，但根據今年前三個月迄今為止的結果，我們對 2025 年的前景非常有信心。

Got it. The second question is on your view towards a second half weighted revenue outlook. Is there any reference points in history that led you to the outlook or is there any particular year that's -- I think it will give us a good comparison. Or is that based on conversation with retail customers, any sorts of context that led you to the second half outlook be helpful. Thank you.

知道了。第二個問題是您對下半年加權收入前景的看法。歷史上是否有任何參考點可以引導您形成這樣的觀點，或者是否有特定的年份——我認為這可以給我們一個很好的比較。或者這是基於與零售客戶的對話，任何有助於您對下半年前景做出判斷的背景資訊都會有所幫助。謝謝。

Sure, yeah, that's a great question, Martin, and it is such an important factor in how we're thinking about the year. When you look at similar years, I would say it would be very similar to 2019, which is sort of our pre-pandemic sort of normal seasonality with the exception that Q1 would be lower based on what we're seeing out there in the market right now, and that we would expect that that loading would then come back in kind of Q3, Q4 time frame.

當然，是的，馬丁，這是一個很好的問題，這也是我們如何思考這一年的重要因素。當你回顧類似的年份時，我會說它與 2019 年非常相似，這有點像大流行前的正常季節性，不同之處在於根據我們目前在市場上看到的情況，第一季度的負載會較低，並且我們預計負載會在第三季度、第四季度左右恢復。

So from as far as the factors that are leading us to that, it is feedback from our retail partners and a lot of the gaming folks that are taking a look at what's going on in the markets right now. There's a lot of excitement around what the back half will look like based off of those two huge factors mentioned earlier between the expected launch here for Switch 2 at some point and what's going to happen with GTA 6.

因此，就導致我們這樣做的因素而言，我們的零售合作夥伴和許多遊戲玩家的回饋正在關注當前的市場動態。基於前面提到的兩個重要因素，即預計在某個時間點推出的 Switch 2 和 GTA 6 的進展，人們對後半部的內容充滿期待。

That's the anticipation around that game, and we know what normal large releases will do for us from an accessory sales standpoint. We expect that effect to be even greater when GTA 6 comes out. So those are really the main factors there, but I would look to 2019 with the adjustments to Q1 as sort of a bit more of a representative year.

這就是人們對該遊戲的期待，從配件銷售的角度來看，我們知道正常的大型發行會帶給我們什麼。我們預計，GTA 6 發布後，這種效果會更加顯著。這些確實是主要因素，但我認為 2019 年對第一季的調整會更具代表性。

Got it. Okay, thank you, Chris. That's it for me.

知道了。好的，謝謝你，克里斯。對我來說就是這樣。

Thanks, Martin.

謝謝，馬丁。

Sean McGowan, Roth Capital Partners.

麥高恩 (Sean McGowan)，羅斯資本合夥公司 (Roth Capital Partners)。

Hi. I just want to circle back on your comment again about following up on that seasonality comment. Could you just remind us, did you say 15% to 16% based on the midpoint of that range?

你好。我只是想再次回顧您關於跟進季節性評論的評論。您能否提醒我們一下，您說的 15% 到 16% 是基於該範圍的中點嗎？

Yeah, yes, that's true.

是的，是的，確實如此。

Okay, just wanted to clarify that. Thank you.

好的，我只是想澄清一下。謝謝。

Thanks, Sean.

謝謝，肖恩。

Thank you. There are no further questions at this time. I'd like to hand the floor back over to Chris Keirn for any closing comments.

謝謝。目前沒有其他問題。我想將發言權交還給克里斯凱恩 (Chris Keirn)，請他發表最後評論。

Thank you all for joining our call today and your interest in the company and have a great day.

感謝大家今天參加我們的電話會議以及對公司的關注，祝大家有個愉快的一天。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。現在您可以斷開線路。感謝您的參與。