Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — FY2020 Earnings Presentation
39 slides from Corsair Gaming's earnings presentation, Feb 9, 2021
Slide 1: Corsair Investor Presentation
INVESTOR PRESENTATION February 9, 2021 Exhibit 99.2 Exhibit 99.2 CORSAIR INVESTOR PRESENTATION February 9, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the Company's results may differ materially from those expressed or implied by such f
Slide 3: Corsair makes specialized gear for gamers and streamers
33 CORSAIR MAKES SPECIALIZED GEAR FOR GAMERS AND STREAMERS CORSAIR elgato ORIGIN s SCUFGAMING
Slide 4: Gaming and streaming gear at scale
GAMING AND STREAMING GEAR AT SCALE Founded in 1994 2,000+ Employees $1.7bn Revenue 2020 (1) 25.7% 2017 – 2020 (1) Revenue CAGR 23 Primary Product Lines, Many with Leading Market Share GAMER and Creator Peripherals GAMING components and Systems Computer Cases Cooling Solutions STREAMING GEAR Keyboard
Slide 5: The complete product suite for gaming and streaming
THE COMPLETE PRODUCT SUITE FOR GAMING AND STREAMING 5 THE COMPLETE PRODUCT SUITE FOR GAMING AND STREAMING CORSAIR
Slide 6: Our Opportunity: Gaming, eSports, Streaming
OUR OPPORTUNITY Gaming, eSports, Streaming 6 OUR OPPORTUNITY Gaming, eSports, Streaming CORSAIR
Slide 7: Gaming has rapidly grown and become mainstream
GAMING HAS RAPIDLY GROWN AND BECOME MAINSTREAM ‘10s – ’20s eSports and Competitive Gaming (Millions of Players and Spectators) Then Now 2.6 Billion Global Gamers Potential Competitors ‘90s Local PC Network (2+ Player) Multiple Friends ‘70s Arcade (1 Player) Yourself ‘80s Consoles (2 Player) One Frie
Slide 8: eSports and streaming power an investment and spending flywheel
ESPORTS AND STREAMING POWER AN INVESTMENT AND SPENDING FLYWHEEL IN GAMING 2.6B Gamers Globally In 2019 12B Streaming Hours Watched in 20191 $951 Million eSports Revenue in 2019 ESPORTS & STREAMING MORE PLAYERS NEW CUSTOMERS MORE VIEWERS INCREASED FOCUS MORE INVESTMENT Publishers, Sponsors, Advertise
Slide 9: Gamers and streamers need high performance gear
GAMERS AND STREAMERS NEED HIGH PERFORMANCE GEAR Gamers streamers PC Console Mobile GEAR needs 524mm PC Gamers 729mm Console Gamers 2.4bn Mobile Gamers 6mm Committed Streamers Source: Jon Peddie Research and Newzoo (2019,2020) 9 GAMERS AND STREAMERS NEED HIGH PERFORMANCE GEAR Gamers PC Console Mobile
Slide 10: Many PC gamers are constantly building and upgrading their PCs
MANY PC GAMERS ARE CONSTANTLY BUILDING AND UPGRADING THEIR PCS WITH INDIVIDUALLY SELECTED, HIGH PERFORMANCE COMPONENTS A Majority of This High-End PC Segment Consists of Gamers Who Build Their Own Rigs This is a Large, Growing Market, Comprising 46% of the Total Gaming PC Spend and Exhibiting a CAGR
Slide 11: Gaming gear upgrade path
Committed Casual GAMING GEAR UPGRADE PATH 11 GAMING GEAR UPGRADE PATH Casual Committed 11
Slide 12: Streaming gear upgrade path
Committed Casual STREAMING GEAR UPGRADE PATH 12 STREAMING GEAR UPGRADE PATH Casual Committed 12
Slide 13: Competitive gaming and streaming drive user aspirations and spending on gear
COMPETITIVE GAMING AND STREAMING DRIVE USER ASPIRATIONS, COMMITTMENT AND SPENDING ON GEAR 13 COMPETITIVE GAMING AND STREAMING DRIVE USER ASPIRATIONS, COMMITTMENT AND SPENDING ON GEAR Pro eSports Athletes Pro Streamers SPEND ON HIGH PERFORMANCE GEAR ASPIRE COMMITTED PC / CONSOLE GAMERS COMPETITIVE PC
Slide 14: Large global PC gaming and streaming gear market, with significant whitespace
LARGE GLOBAL PC GAMING AND STREAMING GEAR MARKET, WITH SIGNIFICANT WHITESPACE 2019 Total PC Gamers: 524mm While Committed and Competitive PC Gamers Only Make Up 18% of the PC Gamer Population…. 2019 Total Spending on PC Gaming Gear: $36bn …They Represent 83% of the $36bn PC Gaming and Streaming Gear
Slide 15: Proliferation of streaming and content creation expanding market opportunity
PROLIFERATION OF STREAMING AND BROADER CONTENT CREATION EXPANDING MARKET OPPORTUNITY ~6 Million Committed Streamers Across Platforms1 Streamers who Purchase Streaming Gear Spent an Average of Over $240 in 2019. Traditionally Spend Was on Gaming Content, But Increasingly on: Podcasting Video Blogging
Slide 16: Our Competitive Advantage: Leading Performance and Integration
OUR COMPETITIVE ADVANTAGE Leading Performance and Integration 16 OUR COMPETITIVE ADVANTAGE Leading Performance and Integration CORSAIR 16
Slide 17: Reputation for high performance and quality
REPUTATION FOR HIGH PERFORMANCE AND QUALITY Durability Precision Aesthetics Power Creative freedom Customization Since 2016, We Have Received over 4,000 Product Awards in Approximately 45 Countries, of Which 3,500 Were “Gold,” “Editor’s Choice,” “Approved,” or Similar Awards 17 REPUTATION FOR HIGH P
Slide 18: Used, influenced and tested by the world's most admired gamers and streamers
USED, INFLUENCED AND TESTED BY THE WORLD’S MOST ADMIRED GAMERS AND STREAMERS SUMMIT1G 7mm+ Followers 2020 Live Viewer Hours: 109mm 2mm+ Followers 2020 Live Viewer Hours: 36mm 9mm+ Followers 2020 YouTube Views: 51mm LoserFruit CohhCarnage 18 USED, INFLUENCED AND TESTED BY THE WORLD’S MOST ADMIRED GAM
Slide 19: Most complete, software-driven ecosystem
MOST COMPLETE, SOFTWARE-DRIVEN ECOSYSTEM 1 2 4 3 iCUE FOR GAMERS ELGATO FOR CONTENT CREATORS Two proprietary software platforms enhance brand loyalty and repeat purchases across gaming and streaming gear 1 2 3 4 4K Video Capture Audio and Mic Mixer Lighting Control Stream Deck Software Immersive gam
Slide 20: Market leadership across our product categories
MARKET LEADERSHIP ACROSS OUR PRODUCT CATEGORIES Corsair’s Leadership Commanding Price Premiums Against Other Brands1 Source: NPD Group (Last twelve months ended September 2020) and management estimates. 1 Premiums in the U.S. for the twelve months ended September 2020. 20 MARKET LEADERSHIP ACROSS OU
Slide 21: Global and established channel relationships
GLOBAL AND ESTABLISHED CHANNEL RELATIONSHIPS Americas APAC EMEA 21 GLOBAL AND ESTABLISHED CHANNEL RELATIONSHIPS Americas EMEA APAC [COMPANY LOGO] 21
Slide 22: Supported by a highly efficient marketing engine
SUPPORTED BY A HIGHLY EFFICIENT MARKETING ENGINE 22 SUPPORTED BY A HIGHLY EFFICIENT MARKETING ENGINE ESPORTS MARKETING Sponsor Leading Teams and Tournaments Across Geographies and Games INFLUENCER MARKETING Sponsor High-Impact Gamer and Streamer Influencers EVENTS Opportunity to Interact With Indust
Slide 23: Overview of growth strategy
OVERVIEW OF GROWTH STRATEGY Advance as the global leader in high-performance gaming and streaming gear Continue to develop innovative, market-leading gaming and streaming gear Expand into new gear and services that grow our market opportunity Leverage our software platforms to sell more gear into ex
Slide 24: Management team of visionary industry leaders
MANAGEMENT TEAM OF VISIONARY INDUSTRY LEADERS MICHAEL G. POTTER CFO 30 Years in Industry CARINA TAN Vice President & General Counsel 24 years legal experience THI LA President & COO 33 Years in Industry ANDY PAUL CEO 42 Years in Industry JULIAN LIGHTON SVP, Strategy & New Ventures 31 Years in Indust
Slide 25: Financial Overview
FINANCIAL OVERVIEW Top-Line Growth and Cash Flow Profile Support Investment in Attractive Growth Areas 25 FINANCIAL OVERVIEW Top-Line Growth and Cash Flow Profile Support Investment in Attractive Growth Areas [COMPANY LOGO] 25
Slide 26: Financial highlights
FINANCIAL HIGHLIGHTS Strong top-line growth Margin expansion across our segments Investing to consolidate market leadership Asset-light business model Strong free cash flow generation 1 2 3 4 5 26 FINANCIAL HIGHLIGHTS 1 Strong top-line growth 2 Margin expansion across our segments 3 Investing to con
Slide 27: Strong top-line growth - revenue
STRONG TOP-LINE GROWTH - REVENUE Source: Company Management Note: Financials in $mm. 2018 and 2019 financials are not presented on a pro-forma basis for CORSAIR’s acquisitions of Elgato in 2018 and Origin and SCUF in 2019. 1 Reflects preliminary and unaudited estimates for the year ended December 31
Slide 28: Gross margin expansion in both our segments
GROSS MARGIN EXPANSION IN BOTH OUR SEGMENTS Source: Company Management Note: Financials in $mm. 2018 and 2019 financials are not presented on a pro-forma basis for CORSAIR’s acquisitions of Elgato in 2018 and Origin and SCUF in 2019. SEGMENT GROSS PROFIT SEGMENT GROSS MARGIN $465 $224 $193 YoY Growt
Slide 29: Expanding EBITDA with low capex
EXPANDING EBITDA WITH LOW CAPEX Source: Company Management. Note: Financials in $mm. 1 Adjusted EBITDA is determined by adding back to GAAP net income (loss) the acquisition accounting impacts related to recognizing acquired deferred revenue and inventory at fair value, stock-based compensation, cer
Slide 30: Exited 2020 on a Strong Note
Exited 2020 on a Strong Note Note: $ in millions except EPS and percentages; 2019 was a Net Income loss of $8.4m or $0.11 per share making the year-over-year % comparison not meaningful Record Full Year Results Net revenue growth of 55.2% to $1.7 billion and adjusted EBITDA nearly tripled to $213.0
Slide 31: Gamer and Creator Peripherals
GAMER AND CREATOR PERIPHERALS Gamer and Creator Peripherals segment net revenue growth of 83.4%, driven by sales of Elgato branded streaming products, gaming chairs, headsets, and the contribution from SCUF Gamer and Creator Peripherals segment net revenue was 31.7% of total net revenue, an increase
Slide 32: Gaming Components and Systems
GAMING COMPONENTS AND SYSTEMS Note: $ in millions except percentages 32 Gaming Components and Systems segment net revenue growth of 44.8%, driven by strong sales across all products that were prompted in part by introduction of high-performing microprocessors by Intel and AMD and graphic cards by AM
Slide 33: 2021 Outlook
2021 Outlook (1) 33 Actual results may differ materially from these estimates. Estimates should not be viewed as a substitute for our full annual financial statements, and are not necessarily indicative of the results to be expected for any future period. 2021 Outlook (1) Financial Metrics 2021 Guid
Slide 34: Debt Summary
DEBT SUMMARY Repaid $50 million of term loan debt during Q4’20 Repaid $190.4 million of term loan during 2020, retiring $50 million second lien debt in its entirety during Q3’20 prior to the IPO See appendix for non-GAAP reconciliations 34 DEBT SUMMARY ($ in millions) December 31, 2020 Cash (excludi
Slide 35: Appendix
APPENDIX 35 APPENDIX [COMPANY LOGO] 35
Slide 36: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 36 GAAP TO NON-GAAP RECONCILIATIONS Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Operating Income - GAAP $ 58,893 $ 14,218 $ 158,361 $ 23,707 Acquisition accounting impact related to recognizing acquired deferred revenue at fair value -
Slide 37: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 37 GAAP TO NON-GAAP RECONCILIATIONS Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Net Income (Loss) - GAAP $ 43,043 $ 6,012 $ 103,217 $ (8,394) Acquisition accounting impact related to recognizing acquired deferred revenue at fair value
Slide 38: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 38 ADJUSTED EBITDA RECONCILIATION Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Net Income (Loss) - GAAP $ 43,043 $ 6,012 $ 103,217 $ (8,394) Acquisition accounting impact related to recognizing acquired deferred revenue at fair value - 1,
Slide 39: Thanks!
THANKS! 40 THANKS! CORSAIR 39