- U.S. gaming accessories manufacturer Turtle Beach generated $35M USD in net revenues for Q1 2020, while netting a loss of $3.56M for the period.
- Swiss peripheral manufacturer Logitech reported net sales of $709M for Q1 2020 and generated a net profit of $214M.
- Both companies experienced accelerated demand for their products due to consumers staying at home to help contain COVID-19; working from home and shifting social interactions online.
Peripheral manufacturers Turtle Beach (Q1 2020) and Logitech (Q4 FY 2020) reported their earnings for the first quarter of 2020 ended March 31. While the financials of Logitech and Turtle Beach can’t be compared directly due to differences in their business model and size, Logitech’s market capitalization is $8.7B compared to Turtle Beach’s $148M; looking at both earnings roughly outlines the current gaming peripherals market situation.
As novel coronavirus (COVID-19) policies had been put in place during the first quarter of 2020, people around the world stayed and worked from home, and shifted most social interactions into digital mediums. For the period spanning from Jan. 1 to March 31, Logitech and Turtle Beach reported an accelerated demand for their products, respectively.
Turtle Beach CEO Juergen Stark said in a release that “during the first quarter, as consumers around the world stayed home to help contain COVID-19, we saw strong demand for our products including record-setting retail sales and significant market share gains in March, which drove results that exceeded our expectations across all key financial metrics.”
The company generated net revenues of $35M in Q1, which is roughly a 21% decline from $44.5M in 2019 when Turtle Beach (which achieved a market share over 40% in the console gaming headset market for the tenth consecutive year) profited from the battle royale boom. In total, the company recorded a net loss of $3.56M compared to a net profit of 3.06M in the same period of the previous year.
Going forward, Turtle Beach plans to further diversify its revenue streams by investing in the expansion of its PC portfolio and developing the PC accessories brand ROCCAT, which the company acquired last year, to drive future PC accessories market share.
Logitech President and CEO Bracken Darrell explained in a statement that the company “delivered five consecutive years at or near double-digit growth, and Logitech’s products have never been more relevant. Video conferencing, working remotely, creating and streaming content, and gaming are long-term secular trends driving our business. The pandemic hasn’t changed these trends: it has accelerated them.”
The company reported sales of $709M for its fiscal year Q4, up 14% from the same period in 2019. For the full fiscal year, Logitech recorded a 7% increase in annual sales to $3B. In total, Logitech generated a net income of $214M (including $144M in benefit from income taxes) for its fiscal year 200 fourth quarter compared to $42.1M in the same period of last year. During the twelve months period ended March 31, the company reported an annual net income of $450M (including $125M in benefit from income taxes), which is roughly an increase of around 74% compared to $258M during its fiscal year 2019.
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