Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q1 2024 Earnings Presentation
27 slides from Corsair Gaming's earnings presentation, May 7, 2024
Slide 1: Q1 2024 Company Update
Q1 2024 Company Update May 7, 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: Gamer and Creator Peripherals
GAMER AND CREATOR PERIPHERALS CORSAIR CONFIDENTIAL
Slide 4: Continued growth in Gamer and Creator Peripherals segment with 20% YoY growth
CONTINUED GROWTH IN GAMER AND CREATOR PERIPHERALS SEGMENT WITH 20% YOY GROWTH AT 40% GM $136.8M $117.8M $107.0M $89.0M $96.8M $90.4M $88.9M $78.8M 20% YoY Growth in Q1’24 after 16% YoY growth in Q4’23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Net Revenue 40.8% 37.2% 32.8% 33.7% 32.4% 33.1% 28.
Slide 5: M&A has been a key driver for revenue and margin growth in peripherals
M&A HAS BEEN A KEY DRIVER FOR REVENUE AND MARGIN GROWTH IN GAMER AND CREATOR PERIPHERALS SEGMENT Leading provider of hardware and software for content creators that pioneered concept of control panel designed for streamers and content creators; allowed Corsair to enter streaming market Created marke
Slide 6: Key gaming peripheral launches
KEY GAMING PERIPHERAL LAUNCHES • Recent growth in compact keyboard market (65 and 75%) 2 new exciting products launched to address this market K65 Plus Wireless and Drop CSTM65 • Lightweight symmetrical mouse is the latest trend in gaming with the M75 Wireless
Slide 7: Elgato Neo product line
ELGATO NEO PRODUCT LINE Launched April 2024 A new family of streaming products aimed to reach new creator market focusing on productivity and everyday application streaming channels Combines high-end performance with plug-and-play simplicity to instantly transform livestreams or business conference
Slide 8: Components and Memory
COMPONENTS AND MEMORY Short term self build PC market stable, with next surge expected in 2H’24 and 2025 when next-gen GPUs and CPUs are launched We expect 2025 to be a big year for upgrading Gaming PC hardware
Slide 9: Recent ASP rise and shift to larger capacity expected to drive memory revenue growth
RECENT ASP RISE AND SHIFT TO LARGER CAPACITY IS EXPECTED TO DRIVE FUTURE REVENUE GROWTH IN MEMORY (2) Quarterly price change for highest volume DRAM product Chip prices have been rising since Q3’23 and are 30% expected to continue to rise through the year 16.3% 10% 5.3% -5.1% This is reflected in th
Slide 10: Recent component launches
RECENT COMPONENT LAUNCHES 2500 & 6500 SERIES CASES Dual-chamber cases with wrap around glass are the latest in case technology iCUE LINK RX SERIES FANS Affordable fans containing Corsair proprietary iCue Link technology
Slide 11: Corsair One platform upgrade
CORSAIR ONE PLATFORM UPGRADE CORSAIR ONE • Compact high-end PC featuring cutting-edge components • Designed to be an ultimate system for gamers, content creators • Available with up to an Nvidia GeForce RTX 4090 and Intel Core i9-14900K, both liquid cooled • Built to be compatible with next-gen CPU
Slide 12: Key future launches
KEY FUTURE LAUNCHES CORSAIR CONFIDENTIAL
Slide 13: Corsair Racing
CORSAIR RACING Corsair will be launching our first sim-racing products at Computex in June 2024 Engineered to offer an immersive sim racing experience at a competitive price point Launching a complete solution for Sim racing • Chassis • Seat • Wheels • Pedals • Curved Monitors • Gaming PC
Slide 14: SCUF mobile gaming controller
SCUF MOBILE GAMING CONTROLLER • Launch of dedicated mobile controller • Expanding marketing, large potential install base • Opportunity for huge growth
Slide 15: Financial Results
FINANCIAL RESULTS CORSAIR CONFIDENTIAL
Slide 16: Q1'24 Financial Results
Q1’24 FINANCIAL RESULTS (1) ($ in millions except EPS and percentages) Q1'24 Q1'23 Y/Y Q/Q Net Revenue $337.3 $354.0 -4.7% -19.2% Gross Profit $86.6 $85.4 1.4% -15.6% Strong growth in the Gamer and Creator Peripherals segment offset by a decrease in Gross Profit Margin 25.7% 24.1% 160 bps 110 bps th
Slide 17: Q1'24 Segment Results
Q1’24 SEGMENT RESULTS Gaming Components and Systems Demand was more subdued for Gaming ($ in millions except percentages) Q1'24 Q1'23 Y/Y Q/Q Components and Systems as is normal in this stage of the GPU cycle. Higher mix of Memory Net Revenue $230.3 $265.0 -13.1% -17.9% products contributed to the y
Slide 18: GAAP Segment Gross Margin %
GAAP SEGMENT GROSS MARGIN %* Record high % 40.8% 37.2% 32.8% 33.7% 32.4% 33.1% 32.1% 28.0% 30.0% 24.5% 25.5% 24.6% 24.6% 25.7% 23.8% 23.0% 24.1% 19.7% 22.2% 23.2% 20.7% 21.8% 19.3% 18.5% 18.5% 18.7% 15.9% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Gamer and Creator Peripherals Gaming Comp
Slide 19: Adjusted EBITDA
ADJUSTED EBITDA (1) In ($) $34M $32M $23M $21M $18M $18M $15M $10M Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 -$11M 1. See appendix for reconciliation of non-GAAP metrics to most comparable GAAP metrics.
Slide 20: Financial Guidance
FINANCIAL GUIDANCE (1) Financial Metrics 2024 Guidance Net Revenues $1.45 - 1.60 billion Adjusted Operating Income $92 - 112 million Adjusted EBITDA $105 - 125 million (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, actual results may diff
Slide 21: Cash and Debt Summary
CASH AND DEBT SUMMARY ($ in millions) March 31, 2024 Cash (Excluding restricted cash) $127.8 Term Loan (face value) $184.0 Total Debt $184.0 Net Debt $56.2
Slide 22: Appendix
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 (Loss), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss) and Adjusted Ne
Slide 24: 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 March 31, 2024 2023 Operating Income (Loss) - GAAP $ (10,219) $ 1,037 Amortization 9,515 9,741 Stock-based compensation 7,691 7,246 One-time costs related to le
Slide 25: GAAP to Non-GAAP Reconciliations: Net Income
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Net Income and Net Income Per Share Reconciliations (Unaudited, in thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Net loss attributable to common stockholders of Corsair Gaming, Inc. (1) $ (12,540) $ (1,054) Less: Change in redem
Slide 26: GAAP to Non-GAAP Reconciliations: Adjusted EBITDA
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages) Three Months Ended March 31, 2024 2023 Net loss - GAAP $ (11,029) $ (1,648) Amortization 9,515 9,741 Stock-based compensation 7,691 7,246 One-time costs related to legal and other matters 6
Slide 27: Corsair
PA CORSAIR