Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q3 2021 Earnings Presentation
27 slides from Corsair Gaming's earnings presentation, Nov 11, 2021
Slide 1: Corporate Overview
Corporate Overview November 11th 2021
Slide 2: Disclaimer
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: Leadership Team
LEADERSHIP TEAM ANDY PAUL MICHAEL G. POTTER THI LA CARINA TAN PETE HILLIARD CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER PRESIDENT AND CHIEF VP & GENERAL CHIEF HUMAN OPERATING OFFICER COUNSEL RESOURCES OFFICER
Slide 4: Corsair Suite
Green Screen Cases Power Supplies Custom Cooling CORSAIR SUITE Lighting CPU Coolers Gaming PCs Fans Memory Storage Cameras Capture Devices Monitors Ambient Lighting Headsets Stream Deck Thunderbolt Docks Mice Keyboards Microphones Mouse pads Gaming Controllers Gaming Chairs
Slide 5: Market Evolution
MARKET EVOLUTION ‘70s ‘80s ‘90s ‘00s ‘10s – ’20s Arcade Consoles Local PC Online PC, Esports and (1 Player) (2 Player) Network Console and Competitive Gaming (2+ Player) Mobile Networks (Millions of Players (Millions of Players) and Spectators) Then Now Potential Competitors Yourself One Friend Mult
Slide 6: Customer Dynamics
CUSTOMER DYNAMICS Pro Esports Pro Athletes Streamers ESPORTS COMMITTED STREAMING PC / CONSOLE GAMERS COMPETITIVE PC / CONSOLE COMPETITIVE PC GAMERS CASUAL PC / RECREATIONAL PC CONSOLE GAMERS MOBILE-ONLY GAMERS CASUAL MOBILE AND CONSOLE
Slide 7: Large Global PC Gaming and Streaming Gear Market, with Significant Whitespace
…Resulting in Significant Whitespace as Gamers and LARGE GLOBAL PC GAMING AND Streamers Become More Serious and Start to Spend STREAMING GEAR MARKET, WITH Represents Gamers Who Spent >$1,000 on Their Primary PC SIGNIFICANT WHITESPACE Committed Competitive Casual 5% 2019 Total PC Gamers: $651 13% 524
Slide 8: Q3 Product Highlights
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Slide 9: New Category – Streaming Cameras
NEW CATEGORY – STREAMING CAMERAS With the introduction of Elgato Facecam, we have expanded our creator solutions and entered the $1B+ webcam market. Elgato leveraged its 15+ years of experience in video to design a camera that meets the growing needs of content creators. Facecam bridges the gap betw
Slide 10: New Category – Gaming Monitor
NEW CATEGORY – GAMING MONITOR Introducing the XENEON 32QHD165, 32”, high refresh rate, AMD Freesync compatible gaming monitor. This is our first entry into the gaming monitor market, with a TAM of $4B+ Corsair unique features allow display to be controlled by our iCUE ecosystem and Stream Deck devic
Slide 11: New Technology - DDR5 Memory
NEW TECHNOLOGY - DDR5 MEMORY After 7 years of DDR4, both Intel and AMD are poised to make the switch to DDR5 in 2022. The new DDR5 technology launch will enable a surge of upgrades, with a potential increase in ASPs. We believe Corsair will be at the forefront of performance leadership with this new
Slide 12: New Controller – Xbox Series X
NEW CONTROLLER – XBOX SERIES X SCUF controller made for Xbox Series X – the SCUF INSTINCT. Patented SCUF remappable paddles and adjustable controls give players the edge in the most competitive games Leading customization with dozens of swappable elements, from face plates and buttons to thumb stick
Slide 13: Financial Results
pa FINANCIAL RESULTS
Slide 14: Revenue Data by Segment
REVENUE DATA BY SEGMENT +22% YoY $1,393M +49% YoY $1,146M $ in millions $470M $348M +35% -14% YoY $771M +74% +61% YoY $200M $457M $391M $923M $798M +16% $284M $162M -14% $139M +40% $71M +129% $571M $296M -15% $252M $214M +38% Q3 2019 Q3 2020 Q3 2021 2019 YTD 2020 YTD 2021 YTD Gaming Components and S
Slide 15: Gross Margin Data by Segment
GROSS MARGIN DATA BY SEGMENT SEGMENT GROSS PROFIT SEGMENT GROSS MARGIN +26% $392M 36.6% YoY 34.8% $ in millions $312M +103% $172M 29.1% 28.1% YoY 27.2% $121M -21% +42% $220M YoY 20.0% $154M +108% $191M 23.9% 23.8% $128M $58M $101M $60M $96M +15% -19% $49M 16.8% +100% $68M -22% $53M 2019 YTD 2020 YTD
Slide 16: Expanding Adjusted EBITDA with Low Capex
EXPANDING ADJUSTED EBITDA WITH LOW CAPEX Adjusted EBITDA $160M $140M $ in millions $64M $43M $22M $28M 2019 YTD 2020 YTD 2021 YTD Q3'19 Q3'20 Q3'21 Adjusted 5.6% 12.3% 11.5% 7.9% 13.9% 7.1% EBITDA Margin Capex Spend 0.9% 0.4% 0.6% 0.6% 0.5% 0.7% (% of Revenue) Note: See appendix on non-GAAP reconcil
Slide 17: Q3 Results
Q3 RESULTS ($ in millions except EPS and percentages) Q3’21 Y/Y YTD’21 Y/Y Corsair gained market share in almost every category Net Revenue $391.1 -14.4% $1,393.4 +21.6% through Q3 2021. Gross Profit $101.4 -20.8% $392.0 +25.8% Gross Profit Margin 25.9% -210 bps 28.1% +90 bps Q3 Net Revenue was impa
Slide 18: Gaming Components and Systems Q3 Results
GAMING COMPONENTS AND SYSTEMS Q3 RESULTS ($ in millions except Q3’21 Y/Y YTD’21 Y/Y percentages) The entire industry was impacted by GPU shortages Net Revenue $251.9 -14.8% $923.1 +15.6% which caused retail prices to surge to 150%+ of % of Total Net Revenue 64.4% -30 bps 66.2% -340 bps MSRP. Gross P
Slide 19: Gamer and Creator Peripherals Q3 Results
GAMER AND CREATOR PERIPHERALS Q3 RESULTS ($ in millions except Q3’21 Y/Y YTD’21 Y/Y percentages) Net Revenue $139.3 -13.8% $470.3 +35.3% Q3 Net Revenue were impacted by IC shortages % of Total Net Revenue 35.6% 30 bps 33.8% 340 bps which caused out our premium high value products Gross Profit $48.6
Slide 20: Revenue Growth Guidance FY2021
REVENUE GROWTH GUIDANCE FY2021 (1) Financial Metrics 2021 Guidance Net Revenues $1.825-1.925 billion (7% - 13%) Adjusted Operating Income $180-195 million Adjusted EBITDA $190-205 million (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, act
Slide 21: Debt Summary
DEBT SUMMARY In Q3 2021, refinanced long-term debt, ($ in millions) September 30, 2021 substantially reducing the interest rate, doubled Cash (excluding restricted cash) $71.9 revolver to $100 million and reduced outstanding debt by $24 million to $250 million Term Loan (face value) $250.0 of face v
Slide 22: Appendix
pa APPENDIX
Slide 23: 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, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Net Income Per S
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Operating Income Reconciliations (Unaudited, in thousands, except percentages)
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Net Income and Net Income Per Share Reconciliations (Unaudited, in thousands, except per share amounts and percentages)
Slide 26: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages)
Slide 27: Slide 27