Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q1 2021 Earnings Presentation
39 slides from Corsair Gaming's earnings presentation, May 4, 2021
Slide 1: Corsair Investor Presentation Q1 Earnings
Exhibit 99.2 CORSAIR INVESTOR PRESENTATION Q1 Earnings | May 4, 2021
Slide 2: Forward Looking Statements
INVESTOR PRESENTATION 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 expresse
Slide 3: Agenda
AGENDA Purpose. Market Trends. Business Highlights. Initiatives. Capabilities. Financial Results. Logo 3
Slide 4: Our Purpose
OUR PURPOSE Power your gaming and content creation experiences. Logo 4
Slide 5: Our Ambition
OUR AMBITION Provide our consumers with a lifetime of products and services that fuel their entertainment, creative and digital spaces. Logo 5
Slide 6: Market Trends
MARKET TRENDS 36% INCREASE IN AVERAGE GAMING TIME IMPACT OF ‘THIRD PLACES’ The average time spent playing video games is projected to increase from 1.1 hours per person per day to 1.5 hours during the next 5 years. Video Games Are the New “Third Place” A “Third Place” is a space outside the home and
Slide 7: Market Trends
MARKET TRENDS 50M GAMING CONTENT CREATION CHANNELS RISE OF ‘STUDIO’ ENVIRONMENTS COVID-19 shifted the focus from in-person to digital. As a result, more consumers desire higher quality environments, or rooms for better set-ups to enhance their entertainment, creativity and collaboration via the inte
Slide 8: Business Highlights - Months Ending March
BUSINESS HIGHLIGHTS - 12 MONTHS ENDING MARCH 31 84 PRODUCT LAUNCHES 33M UNITS SHIPPED 3 ACQUISITIONS logo 8
Slide 9: 2021 Q1 Revenue - Record $529M
2021 Q1 REVENUE - RECORD $529M $529M REVENUE Q1 2021 $600M $450M $300M $150M $0M Q1 2019 Q1 2020 Q1 2021 +47% CAGR +72% GROWTH YOY Gaming Components and Systems Gamer and Creator Peripherals Logo 9
Slide 10: 2021 Q1 Gross Profit - More Than Doubled YoY
2021 Q1 GROSS PROFIT - MORE THAN DOUBLED YOY $160M GROSS PROFIT $180M $135M $90M $45M $0M Q1 2019 Q1 2020 Q1 2021 +104% GROWTH YOY +480BPS GROSS PROFIT MARGIN Gaming Components and Systems Gamer and Creator Peripherals Logo 10
Slide 11: 2021 Q1 Adjusted EBITDA - Almost Trebled YoY
2021 Q1 ADJUSTED EBITDA - ALMOST TREBLED YOY $80M ADJUSTED EBITDA $100M $75M $50M $25M $0M Q1 2019 Q1 2020 Q1 2021 197% GROWTH YOY 7.4X GROWTH LAST 2 YEARS Logo 11
Slide 12: Our Opportunity: ~$46B TAM
OUR OPPORTUNITY: ~ $46B TAM Significant industry growth with category expansion TAM $B $50B $50B 2019 2020 STREAMING GEAR GAMING PERIPHERALS SOFTWARE + SERVICES GAMING COMPONENTS GAMING SYSTEMS Source: Jon Peddie Research Logo 12
Slide 13: Our Opportunity: Growing Categories
OUR OPPORTUNITY: GROWING CATEGORIES 26 Product Categories. Best in Class Brands. Logo 13
Slide 14: The Opportunity: ~2.8 Billion Gamers and Beyond
THE OPPORTUNITY: ~2.8 BILLION GAMERS AND BEYOND Physical gatherings are being replaced by Gaming as a Metaverse. Cultural shifts and behaviors accelerating the TAM. 1B Mobile Payers* 459M Console Payers* 617M PC Payers* 33M CORSAIR units sold in last 12 months Source: Newzoo. *Represents gamers who
Slide 15: Initiatives
INITIATIVES Content Creation. Direct to Consumer. Software and Services. Integrated Experience. Logo 15
Slide 16: Content Creation & Streaming
CONTENT CREATION & STREAMING Professionalize your personal studio experience, connecting your gaming passions and BEYOND… ORGANIC ADOPTION FOR UPCOMING TRENDS PODCASTING REMOTE EDUCATION WORK FROM HOME LIVE SHOPPING B2B RICH SUITE OF 7 CONTENT-CREATION FOCUSED PRODUCT CATEGORIES Twitch live streams
Slide 17: Software & Services
SOFTWARE & SERVICES A nascent proprietary software ecosystem with multiple touch points to cross-sell and offer a set of services. Committed to building a 360° services experience. Examples include our recent acquisition of Gamer Sensei Coaching & Training platform. CUE A CORSAIR INTERFACE CORSAIR.C
Slide 18: Direct to Consumer
DIRECT TO CONSUMER Engage directly with the customer for an integrated experience and more valuable relationship. Goal for 15% of CORSAIR revenue to come through a direct-to-consumer experience by 2023 Infrastructure, domain and technology investments to support multiple consumer touch-points Drive
Slide 19: Integrated Experience
INTEGRATED EXPERIENCE CORSAIR brands fulfill a wide variety of consumer needs, creating a lifetime relationship with our brands and products Start with one and educate Multi-brand and product strategy Integrated eco-system Build a lifetime relationship LIFETIME VALUE $$$$ COMPONENTS PRODUCTS SYSTEMS
Slide 20: Capabilities
CAPABILITIES Proven & Trusted. Authentic Community & Social. Strong Foundation. Eco-System For ‘Third Space’. Logo 20
Slide 21: The Complete Product Suite for Gaming and Streaming
THE COMPLETE PRODUCT SUITE FOR GAMING AND STREAMING POSITIONED FOR EXPONENTIAL GROWTH CORSAIR HARDWARE, SOFTWARE AND SERVICES ENGINE • ‘Best-of-breed’ brand strategy • Trusted in 26+ product categories • Over 200M products shipped • Strategic global channel partners • Integrated eco-system • Innovat
Slide 22: Loyal Community & Strong Influencer Network
LOYAL COMMUNITY & STRONG INFLUENCER NETWORK CORSAIR brands direct social following Source: (1) Sideqik - Sum of all CORSAIR brands sponsored influencers over 12 months through March 31st (2) Stream Hatchet - Sum of all CORSAIR brands sponsored influencers over 12 months through March 31st 6.8M+ FOLLOW
Slide 23: Strong Foundation
Community Platforms Products Brands VBI Global Distribution Global Infrastructure STRONG FOUNDATION Strong foundation positioned for growth. Logo 23
Slide 24: Positioned for Significant Growth
POSITIONED FOR SIGNIFICANT GROWTH - ‘GAMING HAS BECOME THE THIRD SPACE OUTSIDE WORK AND HOME’ BEFORE NOW NEXT 1994 – 2004 2005 – 2010 2011-2016 2017 – 2018 2019 – 2021 2021 OVERCLOCKING MEMORY DIY COMPONENTS & LIQUID COOOLING STREAMING EQUIPMENT & SYSTEMS COMPLETE GAMING SUITE & PERSONAL STUDIO 2.8B
Slide 25: Financial Results
FINANCIAL RESULTS pA corsair
Slide 26: Strong Top-Line Growth - Revenue
STRONG TOP-LINE GROWTH -REVENUE $704M $803M $1,163M $234M $294M $539M 2018 2019 2020 +26% +14% $1,702 M $1,097 M $938 M +83% +45% $233M $354M $76M $176M Q1'20 Q1'21 +132% +52% $309 M $529 M +55% YoY Growth +17% YoY Growth +72% YoY Growth Gamer and Creator Peripherals Gaming Components and Systems To
Slide 27: Gross Margin Expansion in Both Our Segments
GROSS MARGIN EXPANSION IN BOTH OUR SEGMENTS SEGMENT GROSS PROFIT +16% YoY Growth +108% YoY Growth $119M $143M $276M $56M $91M $73M $81M $190M $22M $69M 2018 2019 2020 Q1'20 Q1'21 $465 M $224 M $193 M +11% +20% +133% +104% YoY Growth +211% +62% $79 M $160 M SEGMENT GROSS MARGIN 20.6% 27.3% 30.3% 16.9
Slide 28: Expanding Adjusted EBITDA with Low Capex
EXPANDING ADJUSTED EBITDA WITH LOW CAPEX Capex Spend (% of Revenue) 0.9% 0.8% 0.5% Adj EBITDA Margin 7.2% 6.5% $67 M $72 M $213 M 2018 2019 2020 Adjusted EBITDA (1) 12.5% $27 M $80 M Q1'20 Q1'21 8.8% 15.2% 0.6% 0.4% +197% YoY Growth Source: Company Management. Note: Financials in $M. (1) Adjusted EB
Slide 29: Record Q1
RECORD Q1 Net revenue growth of 71.6% to $529.4 million and Adjusted EBITDA nearly tripled to $80.4 million, driven by strong demand across all of our product lines as we continue to see elevated levels of gaming activity and casual gamers becoming committed gamers Record Gross margin of 30.3%, an i
Slide 30: Gamer and Creator Peripherals - Q1 Results
GAMER AND CREATOR PERIPHERALS – Q1 RESULTS Gamer and Creator Peripherals segment net revenue more than doubled growing 131.9%, driven by sales of Elgato branded streaming products, as well as other peripherals including SCUF controllers Gamer and Creator Peripherals segment net revenue was almost a
Slide 31: Gaming Components and Systems - Q1 Results
GAMING COMPONENTS AND SYSTEMS –Q1 RESULTS Gaming Components and Systems segment net revenue growth of 51.9%, driven by strong sales across all products as more consumers buy and build $2K+ gaming PCs Gaming Components and Systems segment gross profit was $91.5 million, an increase of 61.9% over Q1’
Slide 32: Increased Full-Year 2021 Guidance
INCREASED FULL-YEAR 2021 GUIDANCE (1) Financial Metrics Net Revenue Adjusted Operating Income Adjusted EBITDA 2021 New Guidance $1.9-2.1 billion $235-255 million $245-265 million Old Guidance $1.8-1.95 billion $205-220 million $215-230 million (1) Actual results may differ materially from these esti
Slide 33: Debt Summary
DEBT SUMMARY ($ in millions) Cash (excluding restricted cash) Term Loan (face value) Total Debt (face value) Net Debt March 31, 2021 $121.6 $299.0 $299.0 $177.3 Repaid $28 million of term loan debt during Q1’21 Expect to pay off an additional $72 million this year for a total of $100 million of term
Slide 34: Appendix
APPENDIX pA corsair
Slide 35: Use and Reconciliation of Non-GAAP Financial Measures
USE AND RECONCILIATION 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, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjust
Slide 36: GAAP to Non-GAAP Reconciliations
36 GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Operating Income Reconciliations (unaudited, in thousands, except percentages)
Slide 37: GAAP to Non-GAAP Reconciliations
37 GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Net Income and Net Income Per Share Reconciliations (unaudited, in thousands, except per share amounts and percentages)
Slide 38: Adjusted EBITDA Reconciliations
38 ADJUSTED EBITDA RECONCILIATIONS Adjusted EBITDA Reconciliations (unaudited, in thousands, except percentages)
Slide 39: Thank You
THANK YOU Logo