Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q3 2023 Earnings Presentation
26 slides from Corsair Gaming's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Financial Results
Q3 2023 FINANCIAL RESULTS November 7, 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: Corsair
CORSAIR CONFIDENTIAL
Slide 4: 16.5% YoY Revenue Growth, 127.5% YoY Adj. EBITDA Growth
16.5% YoY REVENUE GROWTH, 127.5% YoY Adj. EBITDA GROWTH Corsair YoY Revenue Growth Corsair YoY Adj. EBITDA Growth +16.5% +127.5% Q3’22 Q3’23 Q3’22 Q3’23 1. See appendix for reconciliation of non-GAAP metrics to most comparable GAAP metrics.
Slide 5: Gaming Hardware Market (TAM) Approximately Flat in 2023, Higher Than 2019
GAMING HARDWARE MARKET (TAM), WHILE APPROXIMATELY FLAT IN 2023, IS STILL AT SIGNIFICANTLY HIGHER LEVELS COMPARED TO 2019 PRE-PANDEMIC… Q3’23 Market Growth vs. Q3’22 Q3’23 Market Growth vs. Q3’19 Q3’23 Market Growth vs. Q3’19 US and EU Gaming Peripherals (1) Components (2) Peripherals and Components
Slide 6: Survey Data Suggest Strong Growth Over the Next Few Years
...AND RECENT SURVEY DATA SUGGEST STRONG GROWTH OVER THE NEXT FEW YEARS 84% OF ENTHUSIASTS WHO BUILT OR BOUGHT GAMING PCS IN 2020 REPORT THEY PLAN TO UPGRADE OR BUY AGAIN WITHIN THE NEXT 2 YEARS % of All Customers Planning Their Next PC Build 90% 84% 80% Within 1 Year 69% Within 2 Years 70% 61% 60%
Slide 7: Recent Key Product Launches
RECENT KEY PRODUCT LAUNCHES CORSAIR CONFIDENTIAL
Slide 8: Peripheral Product Launches – Key
PERIPHERAL PRODUCT LAUNCHES – KEY NEW PRODUCTS IN ALL CATEGORIES K70 MAX Features adjustable CORSAIR HS80 MAX MGX magnetic-mechanical Multi-platform gaming switches. headset. 65-hour battery life with Bluetooth® and 2.4GHz wireless support. M75 AIR Our first ultralight competitive FPS gaming mouse.
Slide 9: Expanding Customization
EXPANDING CUSTOMIZATION Exclusive drops and custom collaborations. ELGATO x STARFIELD Collaboration with Bethesda Game Studios produced a limited edition Starfield Stream Deck and Wave:3 microphone. SCUF x A7X BUNDLE Exclusive limited-edition Reflex (PS5) and Instinct (Xbox) SCUF controllers created
Slide 10: SCUF Envision Family – Wired and Wireless PC Controllers
SCUF ENVISION FAMILY – WIRED AND WIRELESS PC CONTROLLERS SCUF Envision was designed to deliver the best experience for controller PC gamers. Combining PC performance and SCUF Patented Paddle technology to give best of both worlds. Equipped with 11 additional remappable inputs, ultra-fast wired conne
Slide 11: Elgato Prompter
ELGATO PROMPTER The Elgato Prompter – delivers the ability for anyone in the creator community to be able to have a broadcast-level teleprompter at an affordable price. Present video scripts, read Twitch chat, or Zoom conference with natural eye contact. It's powered by your computer and mirrors scr
Slide 12: Elgato Marketplace
ELGATO MARKETPLACE A digital creator marketplace for everyone; Streamers, Video Creators, Podcasters and Work professionals. It allows 3rd parties, and our own Makers to make and sell digital products (Plugins, Icons, Overlays and more) to our installed base of almost 2M Stream Deck users. Launched
Slide 13: iCUE LINK
iCUE LINK iCUE LINK, launched in July 2023, is a technology that allows components to be assembled inside a gaming computer and reduces the wiring complexity as well as digitally connecting all these components. iCUE LINK market acceptance continues to gain momentum. Potentially expanding the DIY TA
Slide 14: Financial Results
FINANCIAL RESULTS CORSAIR CONFIDENTIAL
Slide 15: Gross Margin Improvements in Both Segments
GROSS MARGIN IMPROVEMENTS IN BOTH SEGMENTS Gaming Components and Systems Q3'23 and YTD Results ($ in millions except percentages) Q3'22 Q3'23 Y/Y Q/Q YTD'22 YTD'23 Y/Y Net Revenue $214.9 $272.8 26.9% 10.6% $656.4 $784.5 19.5% % of Total Net Revenue 68.9% 75.1% 620 bps -70 bps 67.2% 75.2% 800 bps Gro
Slide 16: Q3 2023 and YTD Results - Solid Growth
Q3 2023 AND YTD RESULTS - SOLID GROWTH (1) ($ in millions except EPS and percentages) Q3'22 Q3'23 Y/Y Q/Q YTD'22 YTD'23 Y/Y Net Revenue $311.8 $363.2 16.5% 11.6% $976.4 $1,042.6 6.8% Gross Profit $71.6 $89.4 24.9% 7.9% $198.8 $257.6 29.6% Gross Margin 23.0% 24.6% 160 bps -90 bps 20.4% 24.7% 430 bps
Slide 17: Margin Recovery and Cost Control Has Driven EBITDA Growth for 2023
MARGIN RECOVERY AND COST CONTROL HAS DRIVEN EBITDA (1) GROWTH FOR 2023 ADJ. EBITDA IN MILLIONS ($) $32M $23M $21M $18M $15M $10M Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 -$11M 1. See appendix for reconciliation of non-GAAP metrics to most comparable GAAP metrics.
Slide 18: Revenue by Segment
STRONG ACTIVITY IN SELF-BUILT GAMING PCs DRIVING OVERALL YOY GROWTH 16.5% YoY Overall Growth $399M $381M $354M $363M REVENUE BY SEGMENT $312M $118M $325M $134M $284M $89M $90M $79M $97M $281M $89M $265M $273M $247M $247M $215M $195M Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Gaming Components and Sys
Slide 19: Updated Financial Guidance FY 2023
UPDATED FINANCIAL GUIDANCE FY 2023(1) Financial Metrics Updated 2023 Guidance Net Revenues $1.40-1.50 billion Adjusted Operating Income $80-90 million Adjusted EBITDA $95-105 million (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, actual r
Slide 20: Debt Summary
DEBT SUMMARY ($ in millions) September 30, 2023 Cash (Excluding restricted cash) $144.9 Term Loan (face value) $223.8 Total Debt $223.8 Net Debt $78.9
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: Operating Income
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Operating Income Reconciliations (Unaudited, in thousands, except percentages) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating Loss - GAAP $ (758) $ (10,988) $ (2,435) $ (68,433) Amortization 9,507 10,352 29,005
Slide 24: GAAP to Non-GAAP Reconciliations: Net Income and EPS
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 Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net loss attributable to common stockholders of Corsair
Slide 25: GAAP to Non-GAAP Reconciliations: Adjusted EBITDA
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net loss - GAAP $ (2,886) $ (5,945) $ (8,613) $ (61,064) Amortization 9,507 10,352 29,005 33,924 Stock-b
Slide 26: Corsair
PA CORSAIR