Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q1 2022 Earnings Presentation
28 slides from Corsair Gaming's earnings presentation, May 5, 2022
Slide 1: Q1 2022 Financial Results
Q1 2022 FINANCIAL RESULTS May 5, 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: Market Update
MARKET UPDATE
Slide 4: US Gaming Enthusiasts Leading Indicator of Self Built PC Demand
US GAMING ENTHUSIASTS APPEAR TO BE A LEADING INDICATOR OF SELF BUILT PC DEMAND INCREASE AS GPU PRICES FALL US COMPONENTS TAM Pre-Pandemic (to the end of Q1’20) and Post-Pandemic (Q3’21 – Q1’22) WORLDWIDE TOTAL PC GAMERS $180 1,884 Millions 1,774 1,799 1,828 1,856 1,746 1,497 1,553 $160 $140 $120 +29
Slide 5: Corsair Continues to Dominate in the Self Built Gaming PC Space
CORSAIR CONTINUES TO DOMINATE IN THE SELF BUILT GAMING PC SPACE Gaming Components Corsair Market Share (Excluding Memory) 70% 65% Others 60% 50% Competitor 4 Corsair 45% 45% Competitor 3 Gaming Memory 40% Others 30% Competitor 2 Competitor 1 20% Competitor 4 10% Competitor 3 Corsair 65% 0% Q1-18 Q2-
Slide 6: Peripheral Market Also Showing Long Term Growth Trends
PERIPHERAL MARKET ALSO SHOWING LONG TERM GROWTH TRENDS US GAMING PERIPHERALS TAM Pre-Pandemic (to the end of Q1’20) and Post-Pandemic (Q3’21 – Q1’22) $400 US GAMING PERIPHERALS SHARE Millions $350 Others +62% Competitor 1 $300 Competitor 4 $250 +74% +45% $200 Competitor 3 $150 Corsair 15% $100 Compe
Slide 7: Q1 2022 Highlights
Q1 2022 HIGHLIGHTS
Slide 8: New Products – 5000T RGB & LC100
NEW PRODUCTS – 5000T RGB & LC100 The latest addition to our celebrated range of enthusiast PC cases. Category-leading deeply-integrated RGB lighting. Capable of housing today’s most powerful PC hardware and cooling. LC100 Case Accent Lighting Triangles deliver unique visual design and customization.
Slide 9: MP600 PRO LPX – Expansion for Sony PlayStation 5
MP600 PRO LPX – EXPANSION FOR SONY PLAYSTATION 5 Designed to work to provide storage upgrades for the Sony PlayStation 5 Provides excellent cooling, and meets or exceeds all requirements for the PS5 storage expansion giving flawless upgrades Rapid success in securing placements in buyers guides and
Slide 10: Elgato HD60X – Capture Next Gen Console, PC, Cameras
ELGATO HD60X – CAPTURE NEXT GEN CONSOLE, PC, CAMERAS AND MORE Our most accessible capture hardware, upgraded for the next generation of consoles. Captures video from all next-gen consoles, PCs, cameras, and more. High-frame rate, high resolution pass-through to enjoy games at their best while stream
Slide 11: Elgato Stream Deck Platform Continues to Exhibit Strong Growth
Waiting for new graph THE ELGATO STREAM DECK PLATFORM CONTINUES TO EXHIBIT STRONG GROWTH CORSAIR ELGATO SHIPMENT QUANTITY STREAM DECK +18% +285% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022
Slide 12: Systems Business Showing Solid Growth
SYSTEMS BUSINESS SHOWING SOLID GROWTH CORSAIR SYSTEMS SHIPMENT $ CORSAIR/ORIGIN LAPTOP & DESKTOP +27% +160% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022
Slide 13: iCUE Integration Tiny Tina's Wonderlands
iCUE INTEGRATION TINY TINA’S WONDERLANDS Tiny Tina’s Wonderlands is our latest addition to an expanding library of iCUE integrated game software. Our first partnership with 2K Games brings together the magical world of Tiny Tina’s Wonderlands and Corsair iCUE software. Bringing immersive in-game RGB
Slide 14: Financial Results
FINANCIAL RESULTS
Slide 15: Revenue Data by Segment
REVENUE DATA BY SEGMENT +12% YoY $1,904M $1,702M +20% +55% +8% YoY $647M $539M +83% $1,097M +45% $294M +72% -28% YoY YoY $529M $1,163M $1,257M +132% $176M -24% $381M $309M $803M +52% -30% $134M $76M $354M $233M $247M Q1'20 Q1'21 Q1'22 2019 2020 2021 Gaming Components and Systems Gamer and Creator Pe
Slide 16: Gross Margin Segment Data
GROSS MARGIN SEGMENT DATA SEGMENT GROSS PROFIT SEGMENT GROSS MARGIN +10% YoY 35.2% 34.8% +108% $514M 32.1% YoY $465M +19% +5% 27.7% 27.3% 27.0% +133% $225M $190M +93% 23.8% +104% YoY -48% 20.4% $224M $276M $289M 23.7% 23.0% YoY $160M $81M +211% 19.3% $79M +62% $69M -38% $91M $143M 17.8% $22M $91M -4
Slide 17: Adjusted EBITDA; Low Capex
ADJUSTED EBITDA; LOW CAPEX $213M $199M $ in millions $80M $72M $27M $15M 2019 2020 2021 Q1'20 Q1'21 Q1'22 Adjusted 6.5% 12.5% 10.5% 8.8% 15.2% 4.1% EBITDA Margin Capex Spend 0.8% 0.5% 0.6% 0.6% 0.4% 1.1% (% of Revenue) Note: See appendix on non-GAAP reconciliations; 2019 financials are not presented
Slide 18: Q1 Results
Q1 RESULTS ($ in millions except EPS Q1’22 Q1’21 Y/Y and percentages) Revenue down vs. Q1’21 which was the record first quarter buoyed by stimulus checks and pent-up demand. Net Revenue $380.7 $529.4 -28.1% Revenue up 23.4% compared to Q1’20 the last pre- Gross Profit $90.8 $160.3 -43.4% pandemic qu
Slide 19: Gaming Components and Systems Q1 2022 Results
GAMING COMPONENTS AND SYSTEMS Q1 2022 RESULTS ($ in millions except Q1’22 Q1’21 Y/Y Revenue decrease vs. Q1’21 primarily driven by percentages) shortage of reasonably priced GPUs and supply and Net Revenue $246.5 $353.5 -30.3% logistics constraints. 6.0% revenue growth above pre- pandemic Q1’20 desp
Slide 20: Gamer and Creator Peripherals Q1 2022 Results
GAMER AND CREATOR PERIPHERALS Q1 2022 RESULTS ($ in millions except Q1’22 Q1’21 Y/Y percentages) Net Revenue $134.1 $175.9 -23.7% % of Total Net Revenue 35.2% 33.2% +200 bps Revenue decreases 23.7% vs. Q1’21, but up a healthy 76.8% above pre-pandemic Q1’20. Gross Profit $43.1 $68.9 -37.5% Gross Prof
Slide 21: Financial Guidance FY2022
FINANCIAL GUIDANCE FY2022 (1) Financial Metrics 2022 Guidance Net Revenues $1.6 - 1.8 billion Adjusted Operating Income $100-120 million Adjusted EBITDA $110-130 million (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, actual results may di
Slide 22: Debt Summary
DEBT SUMMARY ($ in millions) March 31, 2022 During Q1’22 we used $19.5 million in net cash to Cash (excluding restricted cash) $29.0 acquire a 51% stake in iDisplay, $4.4 million for CAPEX and made principal debt repayment of $1.25 million. Term Loan (face value) $247.5 We continue to prioritize inv
Slide 23: Thank You
THANK YOU
Slide 24: Appendix
APPENDIX
Slide 25: 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, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Net Income Per S
Slide 26: GAAP to Non-GAAP Reconciliations: Operating Income
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Operating Income Reconciliations (Unaudited, in thousands, except percentages)
Slide 27: GAAP to Non-GAAP Reconciliations: Net Income and EPS
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Net Income and Earnings Per Share Reconciliations (Unaudited, in thousands, except per share amounts and percentages)
Slide 28: GAAP to Non-GAAP Reconciliations: Adjusted EBITDA
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages)