Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q4 2023 Earnings Presentation
28 slides from Corsair Gaming's earnings presentation, Feb 13, 2024
Slide 1: Q4 and FY2023 Financial Results
Q4 AND FY2023 FINANCIAL RESULTS February 13, 2024
Slide 2: Disclaimer
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 at a Glance
CORSAIR AT A GLANCE Founded in 2,100+ $1.45B 1994 Employees 2023 Revenue GAMER AND CREATOR PERIPHERALS GAMING COMPONENTS AND SYSTEMS PERFORMANCE STREAMING GEAR CONTROLLERS HIGH COOLING KEYBOARDS COMPUTER CASES COMPLETE SYSTEMS GAMING PERFORMANCE SOLUTIONS FURNITURE MEMORY GAMING HEADSETS MICE POWER
Slide 4: Established Global Footprint
ESTABLISHED GLOBAL FOOTPRINT READING, UK CORSAIR EUROPE MUNICH, GERMANY ELGATO MILPITAS, CA CORSAIR HQ ATLANTA, GA SCUF MIAMI, FL CHINA TAIPEI ORIGIN PC CORSAIR ASIA VIETNAM 200+ Sales & Marketing employees in 38+ countries
Slide 5: Market Update
MARKET UPDATE CORSAIR CONFIDENTIAL
Slide 6: 2023 Overview
2023 OVERVIEW 2023 was a strong year for PC gaming with new technologies and string of successful game launches New graphics cards have invigorated PC building, while the well-received iCUE Link ecosystem has made building easier Next major growth surge in PC building expected in 2025 with expected
Slide 7: Each Generation Is Playing More Games
EACH GENERATION IS PLAYING MORE GAMES Gen Z Millennials Gen X Baby Boomers 77% 81% 60% Gamers 42% Gamers Gamers Gamers Average play time/week Average play time/week Average play time/week Average play time/week 2.30H 4.25H 6.50H 7.20H Source: Newzoo. 80% of Gen Z and Millennial Consumers Play Games.
Slide 8: Significant White Space Opportunity in Gaming Hardware TAM
SIGNIFICANT WHITE SPACE OPPORTUNITY; THE MAJORITY OF GAMING HARDWARE TAM IS STILL CONSUMED BY A SMALL PERCENTAGE OF GAMERS 1.6B Casual PC Gamers Casual PC Gamers Regular PC Gamers Little Hardware Ownership, Younger Gamer Pre-Built Gaming PC 245M Regular PC Gamers 50%+ 32M of overall TAM spent PC Gam
Slide 9: 2023 Highlights
2023 HIGHLIGHTS CORSAIR CONFIDENTIAL
Slide 10: Revenue by Segment
OVERALL YOY GROWTH 16.1% QoQ Gamer & Creator Peripherals Growth $417M 6% overall net revenue growth for full $399M $381M year $354M $363M $118M $325M $137M $312M $134M $89M $90M $284M 13.6% growth for full year in $79M REVENUE BY SEGMENT $97M Components and Systems due to GPU $89M launches and marke
Slide 11: Elgato Marketplace Off to Strong Start
ELGATO MARKETPLACE OFF TO STRONG START Within 4 months of launch, 35% of Elgato Stream Deck users joining the Marketplace shows strong desire for new applications and functionality Over 4.5 million downloads since the Marketplace's launch Rapidly growing base of 300+ Makers constantly creating new a
Slide 12: Corsair M&A Strategy Paves Way for Complete Customization
CORSAIR M&A STRATEGY PAVES WAY FOR COMPLETE CUSTOMIZATION Customization center in Taiwan now fully operational: • Customized SCUF products delivered to customers worldwide • Enables short runs, partnerships, & one-off units Drop integration enabled further customization: • Custom keycaps, keyboards,
Slide 13: Long Term Outlook
LONG TERM OUTLOOK CORSAIR CONFIDENTIAL
Slide 14: Key Drivers for Long Term Growth
KEY DRIVERS FOR LONG TERM GROWTH 1 Leading product launches to drive market share 2 Regional expansion 3 Margin % growth by new feature rich products and strategic M&A 4 Customization and personalization 5 Gaming market growth The gaming market is growing and resilient – Consumers want to have the l
Slide 15: Where We Are Headed
WHERE WE ARE HEADED Mid point 2024 guidance Long term goals* Revenue $1,525M $2.0 - $2.5B+ Gross Margin 27% 30%+ Adjusted EBITDA(1) $115M $220M - $300M+ Adjusted EBITDA %(1) 7.5% 11 – 12% *Long term goals are aspirational and depend on market conditions, product mix and other factors. (1) Adjusted E
Slide 16: Financial Results
FINANCIAL RESULTS CORSAIR CONFIDENTIAL
Slide 17: Q4 2023 and FY2023 Results
Q4 2023 AND FY2023 RESULTS(1) ($ in millions except EPS and percentages) Q4'22 Q4'23 Y/Y FY'22 FY'23 Y/Y Net Revenue $398.7 $417.3 4.7% $1,375.1 $1,459.9 6.2% Solid net revenue growth for the year, with Gross Profit $97.9 $102.7 4.9% $296.6 $360.3 21.5% European share of total steadily climbing thro
Slide 18: Q4 2023 and FY2023 Segment Results
Q4 2023 AND FY2023 SEGMENT RESULTS Gaming Components and Systems Q4’23 and FY23 Results ($ in millions except percentages) Q4'22 Q4'23 Y/Y FY'22 FY'23 Y/Y Strong full year growth of 13.6% in the Net Revenue $280.9 $280.5 -0.2% $937.3 $1,065.0 13.6% Gaming Components and Systems segment driven by int
Slide 19: GAAP Segment Gross Margin %
GAAP SEGMENT GROSS MARGIN % Q4 at 37.2% for Gamer and Creator Peripherals 35.2% 34.8% 33.7% 27.7% 27.3% 28.6% 27.0% 24.7% 20.4% 21.6% 23.7% 23.0% 21.3% 17.8% 18.3% 2019 2020 2021 2022 2023 Gamer and Creator Peripherals Gaming Components and Systems Total Corsair
Slide 20: Adjusted EBITDA Recovery
ADJUSTED EBITDA RECOVERY(1) $34M $32M $23M $21M $18M $15M $10M Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 -$11M 1. See appendix for reconciliation of non-GAAP metrics to most comparable GAAP metrics.
Slide 21: Financial Guidance FY 2024
FINANCIAL GUIDANCE FY 2024(1) Financial Metrics 2024 Guidance Net Revenues $1.45-1.60 billion Adjusted Operating Income $92-112 million Adjusted EBITDA $105-125 million (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, actual results may dif
Slide 22: Debt Summary
DEBT SUMMARY ($ in millions) December 31, 2023 Cash (Excluding restricted cash) $175.6 Term Loan (face value) $199.0 Total Debt $199.0 Net Debt $23.4 Paid off $41 million of debt during 2023, while increasing cash (excluding restricted cash) by $24 million and paying for the acquisition of Drop asse
Slide 23: Appendix
APPENDIX
Slide 24: 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 25: GAAP to Non-GAAP Reconciliations: Operating Income
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Operating Income Reconciliations (Unaudited, in thousands, except percentages) Three Months Three Months Three Months Ended Ended Ended Years Ended December 31, September 30, December 31, December 31, 2023 2023 2022 2023 2022 Operating Income (loss) - GAAP $
Slide 26: GAAP to Non-GAAP Reconciliations: Net Income
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Net Income and Net Income Per Share Reconciliations (Unaudited, in thousands, except per share amounts) Three Months Three Months Three Months Ended Ended Ended Years Ended December 31, September 30, December 31, December 31, 2023 2023 2022 2023 2022 Net inc
Slide 27: GAAP to Non-GAAP Reconciliations: Adjusted EBITDA
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages) Three Months Three Months Three Months Ended Ended Ended Years Ended December 31, September 30, December 31, December 31, 2023 2023 2022 2023 2022 Net Income (loss) - GAAP $ 7,576 $ (2,886)
Slide 28: Corsair
PA CORSAIR