Turtle Beach Corp shares have skyrocketed after the company released its first-quarter results on Wednesday.
Turtle Beach Corporation (NASDAQ:HEAR) is a gaming headset and audio accessory company. It reported that net revenue has increased by 185%, reaching a total of $40.9 million USD. During the first quarter of fiscal 2017, it had only reached $14.4 million.
Gross margin rose by 21.4% to 36.8%, more than doubling compared the previous year’s first quarter.
The company suggests that this significant increased occurred because of the releases of several new games which “[fueled] stronger consumer demand.”
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Operating expenses for this quarter did increase by 9% to $11.2 million. Increasing revenue-related sales and market costs contributed to this rise.
Juergen Stark, Turtle Beach CEO, has said the “growth was due to market share gains on top of a very strong overall market, propelled by the successes of Fortnite and PlayerUnknown’s Battlegrounds.”
The combination of these outcomes has allowed for “higher headset attach rates than [the company] [has] historically experienced.”
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Turtle Beach has also increased it’s outlook for fiscal 2018, raising the expected net revenue from $157 million to $205 million.
Stark believes 2018 has started off to a solid start and will “better [position] [the company] to make selective growth investments and further reduce [its] debt over time.”
As of March 31, 2018, the company’s outstanding debt was $34.5 million, or $500,000 more than the same time last year.
Turtle Beach Corp shares went up by over 70% on Thursday morning and have already reached a high of $13.88.
Thursday’s high has now become the new 52-week high for Turtle Beach.
Comparatively, the company has reached a low share value of $10.80 on Thursday but closed at a share value of $6.94 on Wednesday.
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