Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q3 2021 Earnings Presentation
22 slides from Corsair Gaming's earnings presentation, Nov 2, 2021
Slide 1: Q3 Fiscal Year 2021 Financial Results
Q3 FISCAL YEAR 2021 FINANCIAL RESULTS November 2nd, 2021 Exhibit 99.2
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: Q3 Product Highlights
Q3 PRODUCT HIGHLIGHTS
Slide 4: 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 5: 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 6: 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 7: 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 8: Financial Results
a FINANCIAL RESULTS
Slide 9: Revenue Data by Segment
REVENUE DATA BY SEGMENT +38% +129% -15% -14% +16% +35% +40% +74% +61% YoY -14% YoY +49% YoY +22% YoY $ in millions Note: 2019 financials are not presented on a pro-forma basis for CORSAIR’s acquisitions of Origin and SCUF in 2019 – YTD numbers are for the 9 months period ending September 30th.
Slide 10: Gross Margin Data by Segment
GROSS MARGIN DATA BY SEGMENT +100% +108% +15% +42% -22% -19% +103% YoY +26% YoY -21% YoY $ in millions Note: 2019 financials are not presented on a pro-forma basis for CORSAIR’s acquisitions of Origin and SCUF in 2019 – YTD numbers are for the 9 months period ending September 30th.
Slide 11: Expanding Adjusted EBITDA with Low Capex
EXPANDING ADJUSTED EBITDA WITH LOW CAPEX $ in millions 0.9% 0.4% 0.6% 5.6% 12.3% Adjusted EBITDA 11.5% 7.9% 13.9% 0.6% 0.5% 7.1% 0.7% Capex Spend (% of Revenue) Adjusted EBITDA Margin Note: See appendix on non-GAAP reconciliations; 2019 financials are not presented on a pro-forma basis for CORSAIR’s
Slide 12: Q3 Results
Q3 RESULTS Corsair gained market share in almost every category through Q3 2021. Q3 Net Revenue was impacted by availability of reasonably priced GPUs which curtailed the demand for new PC builds and its components. Higher logistics costs including ocean and air freight had an impact on Q3 margins r
Slide 13: Gaming Components and Systems Q3 Results
GAMING COMPONENTS AND SYSTEMS Q3 RESULTS Note: YTD numbers are for the 9 months period ending September 30th. The entire industry was impacted by GPU shortages which caused retail prices to surge to 150%+ of MSRP. This caused many enthusiasts to hold off building a performance gaming PC. We believe
Slide 14: Gamer and Creator Peripherals Q3 Results
GAMER AND CREATOR PERIPHERALS Q3 RESULTS Q3 Net Revenue were impacted by IC shortages which caused out our premium high value products to be in tight supply. Q3 Segment Gross Profit Margins were impacted by increased logistics costs as well as some reduced sales in premium products. Note: YTD number
Slide 15: Revenue Growth Guidance FY2021
REVENUE GROWTH GUIDANCE FY2021 (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, actual results may differ materially. We do not intend to update our financial outlook until our next quarterly results announcement. Estimates should not be vi
Slide 16: Debt Summary
DEBT SUMMARY In Q3 2021, refinanced long-term debt, substantially reducing the interest rate, doubled revolver to $100 million and reduced outstanding debt by $24 million to $250 million of face value. Based on our current net leverage ratio our interest rate on the long-term debt is LIBOR plus 1.25
Slide 17: Appendix
ah APPENDIX
Slide 18: 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 19: GAAP to Non-GAAP Reconciliations: Operating Income
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Operating Income Reconciliations (Unaudited, in thousands, except percentages)
Slide 20: GAAP to Non-GAAP Reconciliations: Net Income and EPS
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 21: GAAP to Non-GAAP Reconciliations: Adjusted EBITDA
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages)
Slide 22: Slide 22