Turtle Beach CEO: Strong start in Q1 has 'accelerated'
"The strong start we experienced early in the first quarter has accelerated, further increasing our significant Q1 growth," said Juergen Stark, CEO, Turtle Beach. "The blockbuster releases of Fortnite and PlayerUnknown's Battlegrounds have helped fuel strong consumer demand, driving new gamers into the market and increasing headset attach rates. In parallel, we've gained additional market share resulting in substantial Q1 growth that exceeded healthy console headset market growth, translating into strong expected revenue and earnings growth, both relative to last year and our prior outlook. In fact, according to gaming console headset market data in NPD's North American video games update, year-to-date through February 2018 we grew our revenue share 640 basis points to 45.4% versus 39.0% in the same period in 2017. While the market was up 67% on a sell-through basis during the same time period, Turtle Beach was up 94%. The U.K. has shown similar trends, with our revenue share in the first three months of 2018 climbing to 55.8% from 42.5% in the same period in 2017. Turtle Beach has continued to outpace a healthy market with a product portfolio for every gamer, global distribution and retail partnerships, all supported by strong marketing and merchandising. We expect our first quarter results to enable further reduction in our debt over time and selective growth investments, setting the stage for a strong 2018."