Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q3 2024 Earnings Presentation
30 slides from Corsair Gaming's earnings presentation, Nov 6, 2024
Slide 1: Q3 2024 Company Update
Q3 2024 COMPANY UPDATE November 6, 2024
Slide 2: Disclaimer: Forward Looking Statements
DISCLAIMER 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 implie
Slide 3: Our Brands
a OUR BRANDS cReR | | | | BPACORSAIR DROP Gelgato FANATEC ORIGIN (S) SCUF
Slide 4: Our Products
ph OUR PRODUCTS
Slide 5: General Update
GENERAL UPDATE CORSAIR CONFIDENTIAL
Slide 6: Expect a Surge in Gaming PC Builds in 2025
EXPECT A SURGE IN GAMING PC BUILDS IN 2025 Industry wide speculation is that NVIDIA will be launching their full series next-gen GPUs in Q1’25. 2025 will be 5 years from the start of COVID and lockdowns, so we are ready for a big upgrade cycle in both self-build and pre-built PCs. Our expectation is
Slide 7: Gaming Peripherals Market Showing Growth Again
GAMING PERIPHERALS MARKET SHOWING GROWTH AGAIN Market in U.S. and Europe is starting to show single digit growth YoY. 3rd party data is showing headset sales in the U.S. at 1.8 x Pre-pandemic levels, indicating that the number of active PC gamers is continuing to rise. CORSAIR peripherals segment ha
Slide 8: Gamer and Creator Peripherals Segment Continuous Growth, Rising Margins
OUR GAMER AND CREATOR PERIPHERALS SEGMENT HAS SHOWN CONTINUOUS GROWTH FOR THE LAST FOUR QUARTERS, WITH RISING MARGINS YTD REV GROWTH AT 17.5% $136.8 $107.0 $102.0 $88.9 $90.4 $94.2 $78.8 +20% +20% +13% YoY YoY YoY Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Net Revenue (millions) 40.8% 38.3% 37.2% 37.
Slide 9: Key New Partnerships and Products
KEY NEW PARTNERSHIPS AND PRODUCTS
Slide 10: Call of Duty Partnership
CALL OF DUTY® PARTNERSHIP CORSAIR has signed an exclusive multi-year, cross-brand partnership with the critically acclaimed Call of Duty® franchise. This deal sees two of world’s best known gaming brands come together for the first time, and covers several Call of Duty titles, starting with Call of
Slide 11: Elgato Stream Deck Studio
ELGATO STREAM DECK STUDIO Elgato has launched Stream Deck Studio, a modern, customizable control surface for professional broadcasting. The 19-inch console features 32 LCD keys and two rotary dials, is designed to slot seamlessly into universal studio racks. This professional version of the hugely p
Slide 12: Corsair Virtuoso Max
CORSAIR VIRTUOSO MAX We introduced our new high end-Virtuoso Max Gaming headset. Featuring Active noise cancellation, broadcast-grade microphone and Dolby Atmos spatial audio for an immersive gaming experience. Seamless connectivity with 2.4GHz wireless and Bluetooth® supports multi-platform use, en
Slide 13: Gaming Keyboards Trends
GAMING KEYBOARDS TRENDS Market for smaller form factor keyboards is growing. We are confident that CORSAIR is well placed to take advantage of this market shift and drive the segment forward by including the newest technologies in the latest small form factor keyboards. CORSAIR K75 PRO TKL CORSAIR K
Slide 14: Apple Partnership
APPLE® PARTNERSHIP CORSAIR has partnered with Apple to bring Award-Winning K65 Plus Wireless Keyboard and M75 Gaming Mouse to Mac with Exclusive Colorways. Glacier Blue keyboard and mouse will be available in Apple Stores across the U.S. in mid-November, with the Frost White products available on Ap
Slide 15: M&A Update
ph CORSAIR M&A UPDATE
Slide 16: Fanatec Acquisition
FANATEC ACQUISITION In September, CORSAIR signed an agreement to acquire the celebrated Fanatec Sim Racing brand and its extensive product lines. Fanatec is renowned for bringing Sim Racing to a wider audience with its high-quality, high-end hardware. Fanatec products including force-feedback steeri
Slide 17: Financial Results
ph CORSAIR FINANCIAL RESULTS
Slide 18: Q3 2024 and YTD Results
Q3 2024 AND YTD RESULTS(1) Q3'24 YoY net revenue decline in ($ in millions except EPS and percentages) Q3'24 Q3'23 Y/Y Q/Q YTD'24 YTD'23 Gaming Components and Systems segment of Net Revenue $304.2 $363.2 -16.2% 16.4% $902.8 $1,042.6 $70.6m offset by growth in Gamer and Creator Gross Profit $69.7 $89
Slide 19: Q3 2024 and YTD Segment Results
Q3 2024 AND YTD SEGMENT RESULTS Gaming Components and Systems business continues GAMING COMPONENTS AND SYSTEMS Q3 2024 AND YTD RESULTS to be challenged as we near end of GPU technology ($ in millions except percentages) Q3'24 Q3'23 Y/Y Q/Q YTD'24 YTD'23 YoY cycle and consumers await anticipated NVID
Slide 20: Revenue by Segment
REVENUE $417M $399M $363M $354M $137M $337M $118M $325M $312M $90M $304M $89M $79M $107M $261M $97M $102M REVENUE BY SEGMENT $94M $281M $273M $280M $265M $247M $230M $215M $202M $167M Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Gaming Components and Systems Gamer and Creator Peripherals
Slide 21: GAAP Segment Gross Margin %
GAAP SEGMENT GROSS MARGIN % 40.8% 37.2% 37.9% 38.3% 32.8% 33.7% 33.1% 32.4% 30.0% 24.5% 25.5% 24.6% 24.6% 25.7% 23.0% 24.1% 24.1% 22.9% 22.2% 23.2% 20.7% 21.8% 18.5% 18.5% 18.7% 16.4% 15.1% Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Gamer & Creator Peripherals Gaming Components & Systems
Slide 22: Adjusted EBITDA
ADJUSTED EBITDA(1) $34M $32M $23M $21M $18M $18M $10M $5M Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 -$1M 1. See appendix for reconciliation of non-GAAP metrics to most comparable GAAP metrics.
Slide 23: Financial Guidance
FINANCIAL GUIDANCE(1) Financial Metrics Full Year 2024 Guidance Net Revenues $1.25 - 1.35 billion Adjusted Operating Income $28 - 43 million Adjusted EBITDA $40 - 55 million (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, actual results ma
Slide 24: Cash and Debt Summary
CASH AND DEBT SUMMARY ($ in millions) September 30, 2024 Cash (Excluding restricted cash) $58.9 Term Loan (face value) $177.8 Total Debt $177.8 Net Debt $118.9
Slide 25: Appendix
APPENDIX
Slide 26: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES To supplement the financial results presented in accordance with GAAP, this presentation includes certain non-GAAP financial information, including Adjusted Operating Income (Loss), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss) and Adjusted Ne
Slide 27: GAAP to Non-GAAP Reconciliations: Operating Income
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Operating Income Reconciliations (Unaudited, in thousands, except percentages) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Operating Loss - GAAP $ (20,944) $ (758) $ (55,877) $ (2,435) Amortization 9,567 9,507 28,583
Slide 28: GAAP to Non-GAAP Reconciliations: Net Income and EPS
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share Reconciliations (Unaudited, in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net loss attributable to common stockholders of Corsair
Slide 29: GAAP to Non-GAAP Reconciliations: Adjusted EBITDA
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net Loss - GAAP $ (51,586) $ (2,886) $ (86,122) $ (8,613) Amortization 9,567 9,507 28,583 29,005 Stock-b
Slide 30: Corsair
CORSAIR