INVESTOR PRESENTATION - NASDAQ: HEAR MAY 2022
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INVESTOR PRESENTATION NASDAQ: HEAR MAY 2022
SAFE HARBOR STATEMENT Forward-Looking Information This presentation includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events. Statements containing the words “may”, “could”, “would”, “should”, “believe”, “expect”, “anticipate”, “plan”, “estimate”, “target”, “goal”, “project”, “intend” and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Forward-looking statements are based on management’s current beliefs and expectations, as well as assumptions made by, and information currently available to, management. While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to logistic and supply chain challenges, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business, including the integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness and liquidity, and other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q and the Company's other periodic reports filed with the Securities and Exchange Commission. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise. This presentation also contains trademarks and trade names that are property of their respective owners. Non-GAAP Financial Measures In addition to its reported results, the Company has included in this earnings release certain financial results, including adjusted EBITDA, and adjusted net income that the Securities and Exchange Commission defines as “non- GAAP financial measures.” Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company's results. “Non-GAAP Earnings” is defined as net income excluding (i) integration and transaction costs related to acquisitions and (ii) certain non-recurring business costs. “Adjusted EBITDA” is defined by the Company as net income (loss) before interest, taxes, depreciation and amortization, stock-based compensation (non-cash), and certain non-recurring special items that we believe are not representative of core operations (e.g., the integration and transaction costs related to acquisitions, and the change in fair value of contingent consideration). These non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company’s operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The presented non-GAAP financial measures exclude items that management does not believe reflect the Company’s core operating performance because such items are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. See a reconciliation of GAAP results to Adjusted Net Income and Adjusted EBITDA included below for each of the three months ended March 31, 2022 and 2021 and full years ended December 31, 2021 and 2020. © 2022 Turtle Beach Corporation. All Rights Reserved. 2
INTRODUCTION TO TURTLE BEACH CORPORATION & OPPORTUNITY IN THE GAMING MARKET
TURTLE BEACH IS A TOP FIVE PLAYER TURTLE BEACH CORP.
IN THE $8.8 BILLION(1) GAMING ACCESSORY MARKET AT A GLANCE
LEADER IN CONSOLE GAMING HEADSETS FOR 12 YEARS RUNNING
WITH 60 MILLION+ CONSOLE HEADSETS SOLD SINCE 2010
ENTERED GAMING CONTROLLERS
Nasdaq: HEAR
& FLIGHT SIMULATION
A BROAD AND EXPANDING PORTFOLIO OF PC GAMING
Company Founded: 1975
KEYBOARDS, MICE, HEADSETS, AND MORE
AWARD-WINNING GERMAN DESIGN & BUILD QUALITY
Headquarters: White Plains, NY
Global Team: 300+ Employees
NEXT-GENERATION MICROPHONES THAT EMBRACE
CUTTING-EDGE TECH AND INNOVATIVE DESIGN
HIGH-PERFORMANCE DIGIAL USB & 2022 GUIDANCE(2)
ANALOG XLR MICROPHONES
REVENUE: $366 +/- 5% MILLION
Industry-Leading Innovation at Every Price Point with over 300 Patents ADJ. EBITDA: 9% - 11% MARGIN
1.Newzoo Peripheral Market Forecast, October 2021 and internal estimates (2021 Gaming Accessory Market includes gaming headsets for consoles and PC, PC gaming keyboards, and PC
gaming mice, third party game controllers, mics and flight simulation hardware)
EPS: $0.70-$1.20 4
2. Guidance provided March 2, 2022
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INDUSTRY TRENDS SHOW GAMING IS THE MARKET TO BE IN
A MASSIVE OPPORTUNITY GAMING LEADS THE
The global game market is expected ENTERTAINMENT WORLD
to grow from $180Bn in 2021 to The broader gaming market is the largest and
most expansive industry in the world of
more than $200Bn in 2024(1)
entertainment at over $270Bn(2)
NEW CONSOLES ENERGIZE ESPORTS CONTINUES
THE GAMING MARKET RISING IN POPULARITY
The global market for gaming Secular shift to esports. Revenue
consoles hardware expected to expected to grow from $1.1Bn in
reach $21Bn in 2024(3) 2021 to $1.9Bn by 2025(4)
A BREAKTHROUGH IN GAMING
SIMULATION TECHNOLOGY GAMING DRIVING STREAMING
Stunning realism on console & PC is Livestreaming gaming audience is
driving booming growth in the $400M(5) expected to grow to 1.4Bn in 2025
global gaming simulation hardware market from 0.8Bn in 2021(4)
1. Newzoo Global Games Market Report, January 2022 3. DFC estimates: Updated March 2022 5. Based on internal estimates, August 2021, excludes racing simulation
2. Newzoo Global Games Market Report (January 2022), DFC (March 2022) & Internal Estimates 4. Newzoo Global Esports and Live Streaming Market Report, April 2022 hardware 5
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WE'RE EXECUTING ON OUR STRATEGY TO LEVERAGE INDUSTRY TRENDS
Building on our decade-plus of leadership in • 9 of the top 15 U.S. console headsets by revenue are Turtle Beach(1)
the $1.7(3) billion console headset market, • 12th consecutive year of 40% share or more in the U.S.(1)
maintaining a portfolio for all levels of gamers with • Compelling lineup of new wireless models in 2022 (more coming)
innovation and great execution.
Continuing rapid expansion into the • ROCCAT U.S. sell-through increased over 60% year-over year(2)
$3.8(3) billion PC gaming accessories market, • Exceeded market growth in major regions in 2021
further building out ROCCAT’s portfolio of award- • Launched 29 new ROCCAT PC gaming products in 2021 and Q1 2022
winning PC gaming accessories.
Expanding into the $2.3(4) billion global market
for streaming and creator microphones, • Launched 4 new Neat Microphones products in the U.S. in 2021
launching Neat Microphones' new generation of • Launching Neat products in Europe starting Q1 2022
high-performance USB and XLR mics. • $700M Digital/USB market segment experiencing rapid growth
Entering additional new categories to drive
further growth over time, launching products in • Launched Recon Controller for Xbox with outstanding reviews
• VelocityOne Flight sold out multiple times since release in 2021
the gaming controller and gaming sim hardware
• Expanding portfolio in both categories over time
markets.
Targeting ~$100 million at positive contribution to EBITDA in non-console-headset revenues for 2022
1. The NPD Group/Retail Tracking Service/Video Games/Dollars/U.S/Annual 2021
2. The NPD Group/Retail Tracking Service/Gaming-Designed: PC Headsets, Mice, and Keyboards, Dollar Sales, Annual 2021 combined vs. Annual 2020 combined
3. Newzoo Peripheral Market Forecast, October 2021
4. Based on internal estimates 2021
6
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...AND DELIVERING ON OUR LONG-TERM FINANCIAL GOALS
• 5 Year revenue CAGR through 2021 is over 16%
Drive 10% to 20% top line
• Revenue guidance of plus/minus 5% from record 2021
growth over time. • Expecting $100M of non-console-headset revenues in 2022
Deliver category leading EBITDA • 10% EBITDA margin in 2021 (equal to peers 5x our size)
margins while investing to drive • Investing to drive growth including new category entries
growth. • 5 Year EBITDA CAGR through 2021 is over 55%
Maintain a strong balance sheet to
provide financial flexibility to pursue • $24M in cash with zero debt
investments in organic and inorganic • Over $100 million in inventories 2021
growth opportunities, while • $80M revolving credit facility
returning capital to shareholders.
5-Year TSR of >350%
(Exceeding Sector Benchmarks)1
7
1. Per Factset as of May 4, 2022
OUR BRANDS
The Best-Selling Console Gaming Award-Winning High-Quality Digital USB &
Headset & Accessory Brand PC Gaming Peripherals Analog Microphones
TURTLE BEACH CONSOLE GAMING HEADSETS
#1 IN GAMING AUDIO
The Global Market Leader In Console
Gaming Headsets for Over 12 Years Running
60 MILLION+
Headsets Sold Since 2010
40%+ MARKET SHARE(1)
U.S. Revenue Share Since 2010
1. The NPD Group/U.S./Retail Tracking Service/Video Games/Dollars/Annual 2021 9
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THE LEADER IN CONSOLE GAMING HEADSETS FOR THE PAST 12 YEARS
#1 GAMING HEADSET MARKET LEADER STRONG BRAND & REPUTATION
PROVIDER FOR XBOX & PLAYSTATION HIGHEST REVENUE AND UNIT SHARE Among Gamers, Retailers, Gaming Industry
PRODUCT FOR EVERY GAMER
Entry Level to Professional
PRODUCT INNOVATIONS
And Unique Features – Many patented
U.S. CONSOLE GAMING
HEADSET
Other REVENUE SHARE WHY & HOW 330K+ POINTS OF DISTRIBUTION(1)
60% 2021 40% 70+ Countries
STRONG PARTNERSHIPS
With Leading Esports Teams & Influencers
OVER 15 YEARS EXPERIENCE
Gaming Headsets & with Xbox & PlayStation
6 OF TOP 10 SELLERS 10 OF TOP 20 SELLERS
OVERALL ARE TURTLE BEACH OVERALL ARE TURTLE BEACH
Over 170 ISSUED PATENTS(2)
Gaming Headsets
Source: The NPD Group/Retail Tracking Service/Video Games/Dollars/U.S., Canada and Mexico/Jan-Dec 2021
1. Includes only Console gaming headsets 10
2. Counts only patents related to headsets (not including additional patents relating to ROCCAT brand products, Neat Microphones or HyperSound products)The picture can't be displayed.
TOP CONSUMER BRAND LOYALTY & CUSTOMER SERVICE
WHY WE PUT OUR CUSTOMERS FIRST
IN NEWZOO'S 2021 CONSUMER INSIGHTS REPORT(1), Turtle Beach
had the highest brand loyalty among active console gamers in the U.S.
ON TRUSTPILOT – a digital platform for consumers to review and rate
their customer service and support experiences – Turtle Beach is a top-
rated brand with hundreds of reviews and a still rising 4.6/5 Star review 497
average with an "Excellent" rating. 4.8/5
CUSTOMER SERVICE
MATTERS
89% 96%
TURTLE BEACH TRUSTPILOT REVIEWS
Totally and completely satisfied with the customer
of consumers will buy more from of customers say customer service, quality and coverage of your company and
companies that deliver an exceptional service is important in their products. Will definitely recommend and will be a
customer support experience(2). choice of loyalty to a brand(3). continued customer. Thank you."
The best gaming company to deal with."
1. Newzoo Consumer Insights: Gaming Peripherals
2. NICE CXone CX Transformation Benchmark – Study 2018 via Salesforce 11
3. HubSpot Annual State of Service Research Report 2020The picture can't be displayed.
PRODUCTS IN MULTIPLE PRICE POINTS THAT CONSUMERS LOVE
MSRP: $39.95 MSRP: $79.95
MSRP: $59.95 MSRP: $149.95
"This $40 headset is worth
every penny"
- Windows Central "4.5/5 – A very impressive
"A worth successor to the sounding headset" “Best Xbox Series X|S
original model that improves - Games Radar wireless gaming headset”
- IGN
on it in every way"
- Medium | Alex Rowe 12THE MOST COMPLETE PORTFOLIO ENABLES CONSUMER UPGRADES OVER TIME
FROM ENTRY-LEVEL TO PRO ESPORTS ATHLETES
- Esports-Focused
- Bluetooth Connectivity Performance
- Wireless - App-Based Settings Features
- 50mm & 60mm Speakers - Premium Quality
- Powerful Amplified Audio
- Glasses Friendly - Bass Boost & Audio Presets - Superhuman Hearing
- Memory Foam Cushions - Mic Monitoring
- 40mm Speakers - Metal-Reinforced Headband
- Gaming Earbuds - Flip-to-Mute Mic
- Multiplatform
$249.95
$99.99 $129.99 $199.99 Esports Gamers
Plays 15+ Hours Per Week
$59.95 $79.95 $99.99 Enthusiast/Core Gamers
Plays 7-15 Hours Per Week
$29.95 $39.95 $39.95 Casual Gamers
Plays 4-6 Hours Per Week
Entry-Level Gamers
Plays Approx. 4 Hours Per Week Innovations that drive immersion, enjoyment, and
competitive advantages at every price point
Small sampling shown of Turtle Beach’s portfolio of console gaming headsets. The full lineup is available at www.turtlebeach.com 13THE FLIGHT SIMULATION CONTROLLER MARKET OPPORTUNITY
Screenshot from Microsoft Flight Sim 2020
FLIGHT SIM 2020 PC LAUNCH
MSFT Flight Sim 2020 launched on PC August 2020, delivering a
quantum leap in realism, fully leveraging modern processing
capabilities and cloud processing and storage
FLIGHT SIM 2020 COMES TO XBOX SERIES X|S
In 2021, the game captured a new audience of gamers
experiencing the thrill of flight on the latest Xbox consoles
FLIGHT SIM 2020 COMES TO XBOX ONE & CLOUD
In 2022, Microsoft extended the Flight Sim 2020 experience via
the cloud to gamers on the prior-gen Xbox One console, lower-
spec PCs, and other cloud-based systems including mobile
GAMING SIMULATION HARDWARE
PC/console flight sim hardware adds over $400M(1) in global
market not including expansion into racing hardware
1. Based on internal estimates, August 2021 14VELOCITYONE FLIGHT RECEPTION & CONTINUED ACCOLADES Gaming Trend – ‘Excellent’ 95/100 "With ultra-realistic controls that perfectly match the real thing, there’s no better way to experience the thrill of flight" PC Pilot – ‘Editor’s Classic’ 90/100 "If you're looking for a more natural method of controlling your aircraft without reaching for the keyboard and mouse, I can highly recommend this VelocityOne Flight Universal Control System" GamesRadar – 4.5/5 "Frankly, it's about as close as you can get to being in a real cockpit without taking up classes" COGconnected – ‘Totally Badass’ "The level of detail they’ve brought when it comes to the design of the VelocityOne Flight is unlike anything I’ve ever seen" TrueAchievements – ‘Best of E3 2021’ "If you don't have a yoke and throttle setup, I couldn't recommend this more" 15
THE GAMING CONTROLLER OPPORTUNITY GAMING CONTROLLERS Total Addressable Market for third-party gaming controllers is roughly $600M(1) MICROSOFT PARTNERSHIP Leveraged Microsoft partnership to enter the gaming controllers market with wired products for Xbox Series X|S, Xbox One, and Windows PCs WIRED, WIRELESS, AND MORE Grow gaming controller line beyond initial wired Xbox offering, including wireless and other platforms 1. Newzoo Peripheral Market Forecast, October 2021 and internal estimations 16
RECON CONTROLLER RECEPTION & ACCOLADES
IGN – ‘Editor’s Choice’ 9/10
"A feature-packed wired gamepad with top-notch performance
and build quality"
GamesRadar – ‘Highly Recommended’ 4/5
"A superb set of features at a low price"
Digital Trends – ‘Recommended Product’ 9/10
"Turtle Beach's Xbox Recon controller is loaded with inventive
and useful on-board features at a shockingly low price"
CNN Underscored – ‘Best of E3 2021’
"...perks you can’t get on the standard Xbox Wireless Controller
that costs the same"
Game Revolution – 9/10
"For $59.99, you really can’t go wrong with the Turtle Beach
Recon Controller...this is a top-tier option"
17ROCCAT PC GAMING ACCESSORIES
ROCCAT
ROCCAT
Reviews 174 Great
AWARD-WINNING 4.1/5
German Design
A BROAD, GROWING PORTFOLIO
Including PC Mice, Keyboards, Headsets, and More
ROCCAT SALES GROWTH
Outpaced the Market in Core Markets in 2021
U.S. SELL-THROUGH GREW
Over 60% in 2021(1)
1. The NPD Group/Retail Tracking Service/Gaming-Designed: PC Headsets, Mice, and Keyboards, Dollar Sales, Annual 2021 combined vs. Annual 2020 combined
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IT’S TIME TO EXPERIENCE PRECISION
"The ROCCAT Vulcan TKL Pro is a gorgeous
optical gaming keyboard with superb build
quality"
- Rock Paper Shotgun
“100/100 - Phenomenal"
"With the 3D audio and customizable EQ the user - Gaming Trend
has the capability to get the perfect sound"
- Hardcore Gamer
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GROWING & AWARD-WINNING PC LINEUP
Kone XP Kone Pro Air | Kone Pro Burst Pro Air | Burst Pro | Burst Core Kain 200 | Kain 120 | Kain 100 Kone AIMO Remastered
MSRP: $89.99 MSRP: $129.99 | $79.99 MSRP: $99.99 | $59.99 | $29.99 MSRP: $99.99 | $69.99 | $49.99 MSRP: $79.99
Vulcan Pro Vulcan TKL Pro | Vulcan TKL Vulcan 120/121/122 Pyro Magma
MSRP: $199.99 MSRP: $159.99 | $129.99 MSRP: $159.99 MSRP: $99.99 MSRP: $59.99
Syn Pro Air Elo 7.1 Air | Elo 7.1 USB | Elo X Stereo Torch USB Mic Syn Buds Air Syn Buds Core Juke 7.1 USB Soundcard
20
MSRP: $149.99 MSRP: $99.99 | $69.99 | $49.99 MSRP: $99.99 MSRP: $99.99 MSRP: $24.99 MSRP: $19.99NEAT MICROPHONES
DIGITAL USB & ANALOG MICROPHONES
Today's global microphone market is $2.3B(1) overall,
with ~$700M(1) in the digital/USB category
THE TEAM
The founders of Blue Microphones, the Neat
Microphones team has a combined 100+ years of
experience creating leading microphone products
A NEW PRODUCT LINE
In 2022, Neat’s new generation of award-winning “Bee”
XLR and USB microphones sees continued NA momentum
and officially enters EU markets
1. Based on internal estimates 2021 21N E AT X L R M I C R O P H O N E S
KING BEE II
"This microphone easily earns its place alongside that list of
favorites with its natural, full sound, and it does so while costing
$50+ less"
— TOM’S HARDWARE
“Impressively clear, accurate, and rich sound for well under $200.”
— WIRED
WORKER BEE II
“I have never appreciated the sound of my own voice, but after
listening to my recordings during testing, it became clear that
somehow, this microphone not only captured the essence of my
voice but it actually improved it”
— GAMES REVIEWS
“This is THE mic to get for anyone looking to take their voice
recordings to the next level but at a budget price”
— WE THE NERDY
KING BEE II WORKER BEE II
22N E AT U S B M I C R O P H O N E S
BUMBLEBEE II
“One of the best-sounding, best-performing $100 USB condenser
microphones currently available”
— POPULAR SCIENCE
“I absolutely recommend the Neat Bumblebee II USB microphone”
— THE SOUND GUYS
“The second generation of Neat microphones are stunningly clear”
— GAMING TREND
SKYLINE
“A beautiful blend of form and function”
— ALEX ROWE, MEDIUM.COM
BUMBLEBEE II SKYLINE
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U.S. PARTNERSHIPS
900M+ GAMERS IN THE AMERICAS & EUROPE & OVER 240M ESPORTS ENTHUSIASTS GLOBALLY(1)
Dr. Disrespect – TB/RC Castro_1021 – TB Coconut Brah – RC KayPea – TB/RC
8M Reach 7.5M Reach 2M Reach 2M Reach
2021 Official Mouse and Keyboard Partner
RIOT LCS League of Legends Tournament
Josh Hart – TB/RC Adept – TB/RC Grayson Allen – TB Kickstradomis – TB/RC
1M Reach 1M Reach 658k Reach 600k Reach
Immanuel Quickley – TB/RC Archonaut – TB/RC Javier Rodriguez – TB FabuRocks – TB/RC UCSD Esports Team WaR
311k Reach 278k Reach 132k Reach 100k Reach 1st Collegiate Partnership Rising amateur CoD team
Titles shown represent games played by our partner esports teams and influencers and do not indicate a
partnership with the publisher
BlackKrystel – TB/RC Erin Simon – TB/RC 88bitmusic – TB/RC C6urtney – TB/RC
24
78k Reach 50k Reach 44k Reach 37k Reach 1. Newzoo Global Esports April 2022 and newzoo Global Games Market Report January 2022TURTLE BEACH FINANCIAL & CORPORATE HIGHLIGHTS
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REVENUE AND EBITDA PROFILE AND TARGETS
Revenues, Millions $366 EBITDA %
$400 +/- 5% 25.0%
$360 $366
$350 TAM Expanded from $1.7B to $8.8B(2)
20.0% • PC accessories added 2019
$300 $287 • Gaming controllers added 2021
• Simulation accessories added 2021
• Microphones added 2021
$250 $235
15.0%
2022 Guidance(1)
• $366M +/- 5%
$200 • Growth weighted to 2nd half
$149 10.0%
• EBITDA Margin 9-11%
$150 Battle Stay-
• Impacted by freight costs
Royale at- Long-Term Targets
$100 surge home • 10-20% revenue growth
surge 5.0% • Mid 30’s gross margins
$50 • EBITDA margins of 10%+ & growing
$0 0.0%
(1)
2017 2018 2019 2020 2021 2022
1. Guidance provided March 2, 2022
2. Newzoo Peripheral Market Forecast, October 2021 and internal estimates 26The picture can't be displayed.
TURTLE BEACH IS COMMITTED TO CONTINUALLY BUILDING OUR ESG STRATEGY
AND REPORTING OUR PROGRESS
ESG COMMITTEE DIVERSITY & INCLUSION REDUCING OUR CARBON REDUCING PRODUCT IMPACT
FOOTPRINT
Our ESG Committee meets We track diversity metrics through our We're incorporating sustainability
regularly to identify ESG risks recruiting process; include diversity We're taking steps to reduce and features into our products while
and opportunities, establish statements in all job postings, on our mitigate our carbon footprint, with the maintaining the industry-leading
and measure progress against website, and on social media channels; aim to neutralize our carbon footprint quality that has always set us apart.
ESG goals, and implement ESG and work with diversity-focused job across our corporate offices by 2025.
initiatives. websites in an effort to increase the
diversity of our candidate pool. CLEAR & MEASURABLE GOALS
ALIGNING WITH LEADERS 2023 2024 2025
Place carbon impact label Use 10% of post- Neutralize carbon
on select products consumer recycled footprint across all
(PCR) plastic in select our corporate
Start offering carbon offices
products
neutral products
Eliminate plastic use in
100% of manufacturers to
packaging in select
sign the manufacturer’s
products
code of conduct
LEARN MORE AT: https://corp.turtlebeach.com/play-with-purpose-with-turtle-beach/ & https://corp.turtlebeach.com/corporate-governance/esg/ 27The picture can't be displayed.
HIGHLY QUALIFIED AND ENGAGED BOARD OF DIRECTORS
FOCUSED ON DRIVING SHAREHOLDER VALUE
JUERGEN STARK 20+ years of experience in hardware - COO of Motorola Mobility’s $9Bn mobile business
Chairman & CEO and software technology businesses - 10 years as Principal at McKinsey & Company, Inc.
- MBA, Harvard Business School
GREGORY Nearly 40 years of experience as an - General partner with Eleven Ventures
BALLARD executive, investor and entrepreneur - Former SVP for mobile & social games at Warner Bros.
Independent Director with various technology companies - Former CEO of Glu Mobile, former board member with DTS, Pinnacle Systems, Imagine
Games Network and THQ
YIE-HSIN HUNG 30 years of executive leadership - CEO of New York Life Investment Management; $400 billion AUM
Independent Director experience with expertise in capital - Formerly with investment firms Bridgewater Associates and Morgan Stanley
markets, M&A and capital allocation - Named to Barron’s 2020 100 Most Influential Women in U.S. Finance for second year in a
row and American Banker’s 25 Most Powerful Women in Finance
WILLIAM KEITEL 30 years of senior executive - Former CFO of Qualcomm Incorporated (NASDAQ: QCOM)
Lead Independent technology and semiconductor - During his 17-year tenure, Qualcomm grew revenues from ~$800M to ~$25B
Director company experience - Held senior financial roles at Nortel (OTC: NRTLQ) & PepsiCo (NYSE: PEP)
- Named to Institutional Investor Magazine’s “Best CFOs in America” list for nine consecutive
years.
KELLY THOMPSON 20+ years of consumer retail - Former COO, Samsclub.com
Independent Director experience across physical, digital and - Former SVP Merchandising, Planning, and Marketplace for Walmart.com
omni-channels - 10 years in management positions at Gap, Inc.
- Current board member of First Hawaiian Inc, a.k.a. Brands and Bolt Threads
DR. ANDREW 30+ years of experience with Fortune - Founder & principal of Wolfe Consulting
WOLFE 500 companies and tech startups, - Former Chief Technology Officer for SONICblue, Inc.
Independent Director with expertise in product development - Expert in IP strategy and licensing; Lecturer at Santa Clara University teaching Embedded
and IP strategy Systems, Computer Architecture and Mechatronics
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EXPERIENCED MANAGEMENT TEAM
JUERGEN STARK | Chairman & CEO RENE KORTE | General Manager, PC Products
- COO Of Motorola Mobility’s Mobile Business - Founder of ROCCAT GmbH and CEO for 12 years
- 10 years as Principal at Mckinsey & Company - VP Europe for RAZER
- Professional gamer and founder of MTW esports team
JOHN HANSON | CFO
- 15+ years in CFO roles at multiple publicly traded companies SKIPPER WISE | VP & Founder of Neat Microphones
- EVP & CFO at Dialogic - Co-founder & President, Blue Microphones
- CFO at One Communications Corp - Recording artist, engineer and entrepreneur
with 40+ years creating microphones
CRIS KEIRN | SVP, Global Sales
- Over 25 years in consumer electronics and automotive
- 17 years with Motorola in engineering, product management, DAVID ANGRESS | VP & Head of Neat Microphones
operations, quality & customer relations - Decades-long career in music products industry
- 15 years EVP at Guitar Center
MEGAN WYNNE | General Counsel - Former CEO, Adam Audio GmbH
- 5 years with I-Flow, a Kimberly-Clark Health Care Company
- 13 years with Morris Polich & Purdy law firm
JOE STACHULA | CTO & SVP, Product Development
- 20+ years in consumer electronics
RYAN DELL | SVP, Marketing - 12 years at Plantronics engineering
- 15 years of brand, consumer, and digital marketing experience audio headsets
- Formerly CMO at MVMT, VP of Marketing & Acquisitions
at FTD Companies (Pro Flowers, Shari's Berries)
JOSE ROSADO | SVP, Global Operations
MATT SEYMOUR | SVP, Product Management - Former Sr. Director, Global Supply Chain Operations for HP
- 20+ years in the consumer electronics industry - 22 years of supply chain management with Motorola, ON
- Previously with Sony leading television portfolio Semiconductor, HP, Cisco 29
planning & development, product marketingTURTLE BEACH CORPORATION
A COMPELLING INVESTMENT OPPORTUNITY
Turtle Beach has transformed from a market-leading console gaming headset
business into a diversified gaming and creator accessories business with ample
room for growth
The Company’s diverse portfolio, expert operational management and
strong consumer demand for products have positioned Turtle Beach well for
future value creation
Turtle Beach has a strong balance sheet and no outstanding debt, providing
financial flexibility to pursue growth opportunities
Gaming is the market to be in, with the global game market expected to
grow from $180 billion to more than $200 billion in 2024
Turtle Beach is executing a clearly defined plan to leverage current market 5-Year TSR of >350%
trends and capitalize on the massive opportunities ahead (Exceeding Sector Benchmarks)1
1. Per Factset as of May 4, 2022 30Investor Relations Contacts: PR/Media Contact: Turtle Beach Contact:
Cody Slach/Alex Thompson Zach Kadletz MacLean Marshall
Gateway Investor Relations Gateway Investor Relations Sr. Director, Communications
+1 (949) 574-3860 +1 (562) 552-1977 Turtle Beach Corporation
HEAR@gatewayir.com zach@gatewayir.com +1 (310) 431-6215
maclean.marshall@turtlebeach.com
COMPANY WEBSITES
www.turtlebeachcorp.com | www.turtlebeach.com | www.roccat.com | www.neatmic.com
31APPENDIX
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QUARTERLY FINANCIAL OVERVIEW
$ Millions
(except per-share data)
Q1 2021 Q1 2022 Commentary
In line with expectations. Quarterly revenue decreased as expected as
$46.7 2021 benefitted from stay-at-home orders and stimulus checks and the
Revenue $93.1 ($47.1 in constant
currency)
Company's outperformance of the market and peers resulting in growth of
166%.
Significantly higher freight costs, fixed cost de-leveraging, more
Gross Margin 37.5% 30.1% normalized promotional credits partially offset by business mix and above
expectations due to lower volume-based program and product spend.
Decrease reflects lower revenue-based sales and lower marketing
Operating Expenses $22.6 $22.3 expenses partially offset by higher product development expenses to
support market and geographic expansion.
Modestly above expectations. Reflects lower revenue and increased
Adjusted EBITDA(1) $15.3 $(5.7)
freight costs and factors covered above.
Net Income (Loss) $8.8 $(6.5) Reflects above factors.
Diluted EPS $0.49 $(0.40) Reflects above factors.
Adjusted Diluted EPS(1) $0.52 $(0.39) Reflects above factors.
Diluted Shares 18.1M 16.2M See appendix.
1. See appendix for a reconciliation of non-GAAP measures 33The picture can't be displayed.
BALANCE SHEET
Balance Sheet Highlights
Balance Sheet Comments
$ Millions
At March 31, 2021 At March 31, 2022 Inventory managed to higher levels to
reflect the doubling in lead times
and uncertainty around supply and
Cash & Cash Equivalents $63.0 $23.7 component availability.
Inventories $59.1 $117.4 No outstanding borrowings under
revolving credit facility as cash flows
from operations were sufficient to fund
Revolver (asset-based) $0 $0 the Company's working capital needs.
Strong balance sheet with no
outstanding debt.
Total Debt $0 $0
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2022 OUTLOOK(1)
2022 2022 Outlook Commentary
Maintaining full year 2022 outlook - revenue approximately flat, plus or minus 5%, from record 2021. Anticipates
stronger growth in the second half of 2022 driven by the launch of new triple A games in advance of the holiday
Net Revenue $366M +/- 5%
season, lesser constraints on console supplies, pent-up demand created by short-term consumer caution, and
the impact from new product launches.
Expected to be roughly 2-3% below the Company's mid 30’s target range, reflecting the impact of 3-4% in higher
Gross Margin Low 30%’s freight and component costs which the Company anticipates will abate somewhat over time, as well as the
expected return to normal promotional levels, partially offset by factoring higher costs into new product pricing.
Adjusted EBITDA margin expected to be within or slightly below our 10+% target due to the factors stated
Adj. EBITDA Margin 9% - 11%
above.
Adj. EPS $0.70 - $1.20 Reflects above factors; anticipates full year effective tax rate of 25%.
Diluted Shares ~17.5M
1. Guidance provided March 2, 2022 35The picture can't be displayed.
GAAP NET INCOME TO ADJUSTED NET INCOME RECONCILIATION
FIRST QUARTER 2022 COMPARED TO 2021
Three Months Ended
March 31, 2022 March 31, 2021
Net Income (Loss)
GAAP Net Income (Loss) $ (6,476) $ 8,838
Adjustments, net of tax:
Non-recurring business costs 173 465
Acquisition integration costs - 118
Non-GAAP Earnings $ (6,303) $ 9,421
Diluted Earnings Per Share
GAAP- Diluted $ (0.40) $ 0.49
Non-recurring business costs 0.01 0.03
Acquisition integration costs - 0.01
Non-GAAP- Diluted $ (0.39) $ 0.52
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GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
THREE MONTHS ENDED MARCH 31, 2022
Three Months Ended March 31, 2022
Adj
As Adj Adj Stock Adj
Reported Depreciation Amortization Compensation Other(1) EBITDA
Net revenue $ 46,662 $ - $ - $ - $ - $ 46,662
Cost of revenue 32,633 (585) - (26) - 32,022
Gross Profit 14,029 585 - 26 - 14,640
Operating expenses 23,316 (607) (312) (1,511) (232) 19,654
Operating income (loss) (8,287) 1,192 312 1,537 232 (5,014)
Interest expense 109
Other non-operating expense (income),
net 719 719
Income (loss) before income tax (9,115)
Income tax expense (2,639)
Net loss $ (6,476) Adjusted EBITDA $ (5,733)
1. Other includes certain business acquisition costs and non-recurring business costs 37The picture can't be displayed.
GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
THREE MONTHS ENDED MARCH 31, 2021
Three Months Ended March 31, 2021
Adj
As Adj Adj Stock Adj
Reported Depreciation Amortization Compensation Other(1) EBITDA
Net revenue $ 93,053 $ - $ - $ - $ - $ 93,053
Cost of revenue 58,198 (237) - (397) - 57,564
Gross Profit 34,855 237 - 397 - 35,489
Operating expenses 22,575 (502) (303) (1,389) (801) 19,580
Operating income 12,280 739 303 1,786 801 15,909
Interest expense 97
Other non-operating expense (income),
net 579 579
Income before income tax 11,604
Income tax expense 2,766
Net income $ 8,838 Adjusted EBITDA $ 15,330
1. Other includes certain business acquisition costs and non-recurring business costs 36You can also read
