Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q1 2023 Earnings Presentation
26 slides from Corsair Gaming's earnings presentation, May 10, 2023
Slide 1: Q1 2023 Financial Results
Q1 2023 FINANCIAL RESULTS May 10, 2023
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: Q1 2023 Market Update
Q1 2023 MARKET UPDATE CORSAIR CONFIDENTIAL
Slide 4: Corsair Gaining in Healthy Self-Built PC Market
CORSAIR GAINING IN Gaming Components and Memory Corsair US Market Share HEALTHY SELF-BUILT PC 80% Components Memory 72% MARKET 60% 46% 40% Self-Built PC market fueled by new GPUs and CPUs with more lower priced options soon to come. 20% 0% More people in major markets building gaming PCs now than pr
Slide 5: Market for Casual Gamers and Content Creators Recovering, Still Discounting
MARKET FOR CASUAL GAMERS AND CONTENT CREATORS RECOVERING, BUT STILL DISCOUNTING IN THE CHANNEL • Market fueled by heavy discounting from competitors still reducing inventories. • Corsair focusing on high end peripherals for enthusiasts, and our core business in gaming. • Expect market growth in this
Slide 6: Larger Memory Requirements by Games Driving Demand
LARGER MEMORY REQUIREMENTS BY GAMES IS DRIVING DEMAND FOR NEW BUILDS AND UPGRADES New popular PC games are increasingly utilizing more demanding PC hardware to play at the highest settings, especially memory. Popular titles such as Hogwarts Legacy (12M+ copies sold) require 32GB+ of memory to run at
Slide 7: Key Announcements
KEY ANNOUNCEMENTS CORSAIR CONFIDENTIAL
Slide 8: High Performance, High Density DDR5 Memory
HIGH PERFORMANCE, HIGH DENSITY DDR5 MEMORY Corsair in Q1 2023 introduced new high performance 32GB and 48GB Memory modules. These can be used in kits of 2 or 4 modules to provide up to 192GB of high-speed memory.
Slide 9: Elgato x Marketplace
ELGATO x MARKETPLACE Stream Deck is a category-defining “smart keyboard” for intuitive control of ever evolving digital workflows. Via the Stream Deck SDK, the community is able to build integrations between Stream Deck and their favorite applications and tools. With the launch of the Elgato Marketp
Slide 10: Build Kits
BUILD KITS A new initiative, allowing customers to skip the research and hunting for parts when building a new PC. Growing our self-built TAM by providing an easy out of the box solution for people who are interested in building a PC but without the experience to do it alone. Six different kits, wit
Slide 11: iCUE: Expanding Our RGB Control Software
iCUE: EXPANDING OUR RGB CONTROL SOFTWARE We continue to develop our iCUE software with engaging new features, adding MURALS, a new lighting profile creation interface. MURALS brings the Corsair product ecosystem together within iCUE, alongside partners Nanoleaf and Philips HUE, to easily control and
Slide 12: HS65 & HS55 Wireless Headsets
HS65 & HS55 WIRELESS HEADSETS Expanding our line-up of popular wireless gaming headsets, the HS65 and HS55 WIRELESS are lightweight, versatile and offer great gaming audio. Two wireless ways to connect via low-latency 2.4GHz wireless or Bluetooth®, offering the versatility to listen across all your
Slide 13: NICKMERCS Strategic Partnership
NICKMERCS STRATEGIC PARTNERSHIP Corsair has announced a multi-year partnership with the world- famous gaming streamer Nick "NICKMERCS" Kolcheff. Nick is a well-known personality in the gaming community, with over 15 million followers and an average daily viewership of 60,000. Nick will exclusively
Slide 14: Financial Results
FINANCIAL RESULTS CORSAIR CONFIDENTIAL
Slide 15: Q1 2023 Results
Q1 2023 RESULTS(1) Strong performance of components, with the ($ in millions except EPS and percentages) Q1'22 Q1'23 % Y/Y components and systems segment growing 7.5% year Net Revenue $380.7 $354.0 -7.0% over year, as the introduction of new GPUs and CPUs from NVIDIA, AMD and Intel positively impact
Slide 16: Q1 2023 Segment Results
Q1 2023 SEGMENT RESULTS Growth in components and systems segment is driven by Gaming Components and Systems the introduction of new GPU and CPU by NVIDIA, AMD ($ in millions except percentages) Q1'22 Q1'23 % Y/Y and Intel, which prompted enthusiast-level PC gamers to Net Revenue $246.5 $265.0 7.5% u
Slide 17: Strong Activity in Self-Built Gaming Systems, Softer Peripherals
STRONG ACTIVITY IN SELF-BUILT GAMING SYSTEMS, MARKET SOFTER FOR CASUAL PERIPHERALS PURCHASE REVENUE BY SEGMENT $399M 7.5% YoY Growth for Gaming Components and $381M $354M Systems driven by more demanding PC Gaming $312M $118M $134M $284M $89M requirements and new GPUs and CPUs. $97M $281M $89M $265M
Slide 18: Cost Control and Margin Recovery Has Driven EBITDA Growth
COST CONTROL AND MARGIN RECOVERY HAS DRIVEN EBITDA GROWTH In Millions ($) $32M $21M $15M $10M Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 -$11M 1. See appendix for reconciliation of non-GAAP metrics to most comparable GAAP metrics.
Slide 19: Financial Guidance FY2023
FINANCIAL GUIDANCE FY2023(1) Financial Metrics 2023 Guidance Net Revenues $1.35-1.55 billion Adjusted Operating Income $75-95 million Adjusted EBITDA $90-110 million (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, actual results may differ
Slide 20: Debt Summary
DEBT SUMMARY ($ in millions) March 31, 2023 Cash (Excluding restricted cash) $179.1 Term Loan (face value) $230.0 Total Debt $230.0 Net Debt $50.9
Slide 21: Appendix
APPENDIX
Slide 22: 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 23: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Operating Income (Loss) Reconciliations (Unaudited, in thousands, except percentages) Three Month Ended March 31, 2022 2023 Operating Income (Loss) - GAAP $ (2,485) $ 1,037 Amortization 10,138 9,741 Stock-based compensation 5,147 7,246 Acquisition-related an
Slide 24: GAAP to Non-GAAP Reconciliations
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 Month Ended March 31, 2022 2023 Net loss attributable to common stockholders of Corsair Gaming, Inc. (1) $ (5,134) $ (1,054) Less: Cha
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages) Three Month Ended March 31, 2022 2023 Net Loss - GAAP $ (3,280) $ (1,648) Amortization 10,138 9,741 Stock-based compensation 5,147 7,246 Depreciation 2,604 2,897 Interest expense, net 1,279
Slide 26: Corsair
PA CORSAIR