Turtle Beach Corporation (NASDAQ:HEAR) Q2 2023 Earnings Call Transcript

Page 3 of 3

Drew Crum: Okay, thanks.

Cris Keirn: Thank you. Operator, back to you, if there’s any further questions.

Operator: One moment please, for our next question.

Cris Keirn: Yes, great. Must be having difficulties opening the next question there.

Operator: One moment for our next question. Please stand by. Our next question comes from Andrew Northcutt with Oppenheimer. Your line is open.

Andrew Northcutt: Hi, guys. Thanks for taking the question. This is Andrew on from Martin. I really just wanted to talk about the SKU rationalization. Would be great to know what product lines or platform in terms of console versus PC are getting the most progress — rationalization and why? And then are you guys removing any products under development right now? Thanks.

Cris Keirn: Hi, Andrew. Yes, great question. To provide some clarity there, we’re not going to talk specifically about certain product lines just due to competitive reasons. But I can tell you we’ve gone through and looked at our portfolio, we’ve taken a data based approach to look at consumer demand and also margin profiles across the business and we believe we can get some really strong efficiencies by streamlining that a bit and then still support all of our growth strategies. So we won’t provide any details at this point on specifics, but it’s a pretty significant effort underway to go ahead and to stream light that portfolio.

Andrew Northcutt: Got it. Thank you.

Operator: One moment for our next question. Our next question comes from Sean McGowan with ROTH MKM. Your line is open.

Sean McGowan: Oh, yes, thanks again. Would you mind giving us a little bit more color on some of these nonrecurring business costs that were posted in the quarter? And I guess more helpfully what can we — will we expect to see more of that continuing in the year as the year goes on?

John Hanson: Sure Sean, it’s John. So in the quarter in terms of EBITDA $4.2 million and of the $4.2 million, approximately 2.9 was related to the CEO separation. So going — as we’re, the balance was related to proxy/activist related costs and expenses. So as we’re going forward we would certainly in light of through the annual meeting and the proxy/activist work is certainly slowed from where it was, we would expect those numbers to decline here in the back half of the year.

Sean McGowan: Okay, thank you.

Operator: And I’m showing no further questions at this time. I would like to turn it back to Cris Keirn for closing remarks.

Cris Keirn: Thank you, Gigi. I just wanted to thank you all for your participation and interest in Turtle Beach and have a great day.

Operator: This concludes today’s conference call. Hope you all have a great day. Please disconnect.

Follow Turtle Beach Corp (NASDAQ:HEAR)

Page 3 of 3