Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q2 2022 Earnings Presentation
25 slides from Corsair Gaming's earnings presentation, Aug 4, 2022
Slide 1: Q2 2022 Financial Results
Q2 2022 FINANCIAL RESULTS August 4, 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: Q2 2022 Market Update
Q2 2022 MARKET UPDATE
Slide 4: Self Built Gaming PC Market Improving as GPU Prices Go Back to MSRP
SELF BUILT GAMING PC MARKET IMPROVING AS GPU PRICES GO BACK TO MSRP MARKET NOW BIGGER THAN PRE-PANDEMIC LEVEL TAM US + EU data GPU PRICE INFLATION (ASP ABOVE MSRP) Pre-Pandemic (to the end of Q1’20) and Post-Pandemic (Q3’21 – Q1’22) 200% $450 US EU $400 $350 YoY Growth vs 150% 2019 32% Millions $300
Slide 5: Components Category Showed Good YoY Growth During Amazon Prime Week
COMPONENTS CATEGORY SHOWED GOOD YOY GROWTH DURING AMAZON PRIME WEEK WEEKLY SALES, AMAZON COMPONENT CATEGORY (1) Prime Day July 2022 Prime Day June 2021 Title Jan 21 Jun 21 Dec 21 June 22 (1) Amazon US and top 5 EU countries. Component Category contains Cases, PSUs, and Cooling products
Slide 6: Corsair Continues to Gain Share in Self Built Gaming PC Space
CORSAIR CONTINUES TO GAIN SHARE IN THE SELF BUILT GAMING PC SPACE (US DATA) GAMING COMPONENTS (EXCLUDING MEMORY) CORSAIR MARKET SHARE 80% 69% Others 70% 60% 50% 44% Competitor 4 Corsair GAMING MEMORY 44% 40% Competitor 3 Others 30% Competitor 2 Competitor 4 20% Competitor 1 10% Competitor 3 0% Q2-19
Slide 7: Peripheral Market Also Showing Long Term Growth Trends
PERIPHERAL MARKET ALSO SHOWING LONG TERM GROWTH TRENDS CORSAIR BALANCING MARGIN AND REVENUE DURING 1H22 GAMING PERIPHERALS TAM GAMING PERIPHERALS Pre-Pandemic (to the end of Q1’20) and Post-Pandemic (Q3’21 – Q1’22) $700 US EU Competitor 1 Others $600 $500 YoY Growth vs 2019 : 52% Millions $400 Compe
Slide 8: Corsair Continues to Have an ASP Advantage
CORSAIR CONTINUES TO HAVE AN ASP ADVANTAGE MARKET DATA ON GAMING PERIPHERALS ARTIFICIALLY LOWER IN 2022 DUE TO WIDESPREAD DISCOUNTING Market ASP Corsair ASP COMPONENT AND MEMORY ASP GAMING PERIPHERAL ASP $110 $85 $105 $80 $100 $95 $75 $90 $70 $85 $65 $80 $75 $60 $70 $55 $65 $60 $50 Notes: Data Sourc
Slide 9: Sales In to Retailers Lower Than From Retailers to Consumers
SALES IN TO RETAILERS LOWER THAN FROM RETAILERS TO CONSUMERS BECAUSE OF INVENTORY OVERHANG COMPONENTS INVENTORY NOW APPROACHING TARGET, EXPECT PERIPHERALS WILL TAKE ANOTHER QUARTER TO RESOLVE SALES IN AND SALES OUT FROM CORSAIRS LARGEST RETAILER (SALES OUT NORMALIZED TO SALES IN ASP) Sales In Sales
Slide 10: Q2 2022 Product Announcements
Q2 2022 PRODUCT ANNOUCEMENTS
Slide 11: Corsair Voyager a1600 Gaming Laptop
CORSAIR VOYAGER a1600 GAMING LAPTOP Announced May 23rd 2022 A world first Gaming & Streaming laptop with the integration of Elgato Stream Deck and Camera Hub Software. Powered by leading AMD Ryzen Processors and Radeon graphics for amazing mobile performance. “Corsair Is Joining The Competitive Worl
Slide 12: K70 RGB Mini Wireless
K70 RGB MINI WIRELESS Expands our MINI 60% layout range of keyboards, a rapidly growing segment. Built around user customization with swappable key switches, accent pieces, cables and keycaps. Wireless for even more flexibility and ultra-clean setups, while further expanding our SLIPSTREAM WIRELESS
Slide 13: NVIDIA Broadcast Partnership
NVIDIA BROADCAST PARTNERSHIP Integrating powerful NVIDIA RTX-powered broadcast features into both CORSAIR iCUE and Elgato Camera Hub / Wave Link Software. Use NVIDIA RTX graphics cards to reduce noise and echo on audio with advanced noise cancellations. AI-enhanced filters on Elgato Camera Hub offer
Slide 14: Financial Results
FINANCIAL RESULTS
Slide 15: Q2 Results
Q2 RESULTS ($ in millions except EPS and percentages) Q2'22 Y/Y YTD'22 Y/Y Net Revenue $283.9 -40.0% $664.6 -33.7% Gross Profit $36.5 -72.0% $127.2 -56.2% During the 1H’22 and particularly Q2’22 macro-economic headwinds, inflation, the Russia-Ukraine war have Gross Profit Margin 12.8% -1480 bps 19.1
Slide 16: Revenue Data by Segment
REVENUE DATA BY SEGMENT $473M $1,002M 24.3% 45.5% YoY YoY $380M $155M $331M 40.9% -40.0% 78.0% -33.7% $110M YoY $689M YoY $665M 17.6% $284M 33.5% $186M -42.6% -32.6% $223M $89M -38.7% -34.2% $318M $671M $270M $503M $195M $441M Q2'20 Q2'21 Q2'22 YTD'20 YTD'21 YTD'22 Gaming Components and Systems Game
Slide 17: Gross Margin Data by Segment
GROSS MARGIN DATA BY SEGMENT SEGMENT GROSS PROFIT SEGMENT GROSS MARGIN 45.0 $291M $130M 40.0 35.2% 34.8% $105M 35.0 $124M $55M $184M 30.0 27.7% 27.3% $39M 27.0% $61M $167M 24.0% $76M $127M 25.0 $66M 20.4% $123M 23.7% 23.0% 19.1% $36M $54M 20.0 $11M $74M 17.8% $26M 15.0 16.7% 10.0 Q2'20 Q2'21 Q2'22 Y
Slide 18: Adjusted EBITDA
ADJUSTED EBITDA $132M $50M $52M $77M $ in millions $4M Q2'20 Q2'21 Q2'22 YTD'20 YTD'21 YTD'22 $-11M Capex $1.2 $2.9 $7.6 $3.0 $4.9 $11.9 Capex Spend 0.3% 0.6% 2.7% 0.4% 0.5% 1.8% (% of Revenue) Note: CAPEX YTD’22 includes $5.4 million spend on new leased headquarters in Milpitas California
Slide 19: Financial Guidance FY2022
FINANCIAL GUIDANCE FY2022 (1) Financial Metrics 2022 Guidance Net Revenues $1.35-1.45 billion Adjusted Operating Income $35-50 million Adjusted EBITDA $50-65 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: Thank You
THANK YOU
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 Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Operating Income (Loss) - GAAP $ (54,960) $ 34,713 $ (57,445) $ 102,002 Acquisition accounting imp
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 and percentages) Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net Income (Loss) - GAAP $ (51,839) $ 27,745 $ (55
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages) Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2020 2022 2021 2020 Net Income (Loss) - GAAP $ (51,839) $ 27,745 $ 22,600 $ (55,119) $ 74,468 $ 23,817 Acquisition accounting