Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q3 2022 Earnings Presentation
22 slides from Corsair Gaming's earnings presentation, Nov 3, 2022
Slide 1: Q3 2022 Financial Results
Q3 2022 FINANCIAL RESULTS November 3, 2022
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: What's New From Corsair
WHAT’S NEW FROM CORSAIR CORSAIR CONFIDENTIAL
Slide 4: Voyager Gaming Laptops
VOYAGER GAMING LAPTOPS Corsair launched its first Gaming Laptop on August 22 Powered by leading AMD Ryzen Processors and Radeon graphics for amazing mobile performance We will be expanding this range during 2023 with additional technology partners The Gaming Laptop category is the fastest growing PC
Slide 5: 45" Flexible OLED Gaming Monitor
45”FLEXIBLE OLED GAMING MONITOR Developed in partnership with LG Display, this is the world’s first bendable OLED monitor designed for gaming XENEON FLEX is our new flagship 45” display adding to our range of 4K and QHD monitors, which addresses a growing $7B gaming monitor market This will begin sh
Slide 6: K100 Air Wireless
K100 AIR WIRELESS Our K100 keyboard family has been extended with a super thin, wireless model - the K100 Air Just 11mm at the slimmest point, with CHERRY low profile mechanical keyswitches Dual wireless modes – with hyper-fast SLIPSTREAM WIRELESS and Bluetooth®
Slide 7: iCUE Partnerships
iCUE PARTNERSHIPS Expanding the powerful CORSAIR iCUE software ecosystem by integrating support for both Philips HUE and Nanoleaf lighting products Over 250 products now supported by iCUE, both inside the PC and outside
Slide 8: Powering the Next Generation
POWERING THE NEXT GENERATION Working in conjunction with AMD, Intel and NVIDIA, CORSAIR has a complete line-up which provides best in class performance and compatibility for the self built PC enthusiast • Corsair is the dominant supplier of high-speed gaming Memory sold to consumers in the US, with
Slide 9: Wave DX
WAVE DX A premium XLR microphone with proven dynamic capsule technology designed in close cooperation with Lewitt Audio Wave DX equips you to sound professional and turn your setup into a powerful broadcast studio Works seamlessly with Wave XLR and Elgato Stream Deck ecosystem
Slide 10: Q3 2022 Market Update
Q3 2022 MARKET UPDATE
Slide 11: Self Built Gaming PC Market Continues to Improve as GPU Prices Go Back to MSRP or Below
SELF BUILT GAMING PC MARKET CONTINUES TO IMPROVE AS GPU PRICES GO BACK TO MSRP OR BELOW MARKET STILL TRACKING HIGHER THAN PREPANDEMIC LEVEL, US MARKET POSITIVE TO Q3 2021 COMPONENTS + MEMORY TAM Pre-Pandemic (to the end of Q1’20) and Post-Pandemic (Q3’21 – Q3’22) $450 US EU $400 $350 YoY Growth vs 2
Slide 12: Corsair Continues to Hold Dominant Share in the Self Built Gaming PC Space
CORSAIR CONTINUES TO HOLD DOMINANT SHARE IN THE SELF BUILT GAMING PC SPACE (US DATA) GAMING COMPONENTS (EXCLUDING MEMORY) Others CORSAIR MARKET SHARE 80% 72% 70% Corsair GAMING MEMORY 42% 60% Competitor 4 Others 50% 42% Competitor 3 40% Competitor 4 30% Competitor 2 Competitor 3 20% Competitor 1 Com
Slide 13: Corsair Maintained High ASPs While Reducing Channel and Internal Inventory
CORSAIR MAINTAINED HIGH ASPS WHILE REDUCING CHANNEL AND INTERNAL INVENTORY IN A PROMOTIONAL ENVIRONMENT Market ASP Corsair ASP COMPONENTS AND MEMORY ASP GAMING PERIPHERALS ASP $120 $90 $80 $100 $70 $80 $60 $50 $60 $40 $40 $30 $20 $20 $10 $0 $0 Data Sources: 1. Components & Memory ASP data: NPD (US)
Slide 14: Financial Results
FINANCIAL RESULTS
Slide 15: Q3 Results
Q3 RESULTS ($ in millions except EPS and percentages) Q3'21 Q2'22 Q3'22 Y/Y Q/Q Net Revenue (M) $391.1 $283.9 $311.8 -20.3% 9.8% Q3 revenue grew over Q2 as channel inventory overhang reduced and became Gross Profit (M) $101.4 $36.5 $71.6 -29.4% 96.3% more balanced in the US, with Europe making progr
Slide 16: Gross Margin Data by Segment
GROSS MARGIN DATA BY SEGMENT SEGMENT GROSS PROFIT * SEGMENT GROSS MARGIN * -29.4% $101M Y/Y -34.6% 34.9% -24.7% 32.8% 32.1% $49M $72M 29.9% 28.0% $56M 25.9% $32M 27.9% 23.9% 23.8% 23.0% $53M $25M Q/Q 21.0% 20.7% 19.7% 27.5% $40M 19.3% 18.5% $31M 28.2% 15.9% Q3'21 Q2'22 Q3'22 Q3'21 Q4'21 Q1'22 Q2'22
Slide 17: Financial Guidance FY2022
FINANCIAL GUIDANCE FY2022 (1) Financial Metrics 2022 Guidance Net Revenues $1.325-1.375 billion Adjusted Operating Income $20-30 million Adjusted EBITDA $35-45 million (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, actual results may diff
Slide 18: Appendix
APPENDIX
Slide 19: 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 20: GAAP to Non-GAAP Reconciliations: Operating Income
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Operating Income (Loss) Reconciliations (Unaudited, in thousands, except percentages) Q3'21 Q2'22 Q3'22 Operating Income (Loss) - GAAP $ 10,755 $ (54,960) $ (10,988) Acquisition accounting impact related to recognizing acquired inventory at fair value — 7 —
Slide 21: GAAP to Non-GAAP Reconciliations: Net Income
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share Reconciliations (Unaudited, in thousands, except per share amounts and percentages) Q3'21 Q2'22 Q3'22 Net Income (Loss) - GAAP $ 1,777 $ (51,839) $ (5,945) Acquisition accounting impact related to recognizing
Slide 22: GAAP to Non-GAAP Reconciliations: Adjusted EBITDA
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages) Q3'21 Q2'22 Q3'22 Net Income (Loss) - GAAP $ 1,777 $ (51,839) $ (5,945) Acquisition accounting impact related to recognizing acquired inventory at fair value — 7 — Change in fair value of c