Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q4 2022 Earnings Presentation
24 slides from Corsair Gaming's earnings presentation, Feb 9, 2023
Slide 1: Q4 & Fiscal Year 2022 Financial Results
Q4 & FISCAL YEAR 2022 FINANCIAL RESULTS February 9, 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 unce rtainties ever materialize or the assumptions prove incorrect, the Company's results may differ materially from those expressed or impli
Slide 3: Q4 2022 Market Update
Q4 2022 MARKET UPDATE CORSAIR CONFIDENTIAL
Slide 4: Self Built Gaming PC Market Showed Good Holiday Performance
SELF BUILT GAMING PC MARKET SHOWED GOOD HOLIDAY PERFORMANCE AND GOOD GROWTH OVER PRE-PANDEMIC US Full Year ($) EU Full Year (€) Components + Memory Components + Memory YoY Growth Growth vs ‘19 YoY Growth Growth vs ‘19 2019 - - 2019 - - 2020 +62% +62% 2020 +54% +54% 2021 -14% +39% 2021 -5% +47% 2022
Slide 5: Gaming Peripheral Market Softer, but Started to Recover in Q4
GAMING PERIPHERAL MARKET SOFTER, BUT STARTED TO RECOVER IN Q4 AND WELL OVER PRE-PANDEMIC LEVELS US Full Year ($) EU Full Year (€) Gaming Peripherals Gaming Peripherals YoY Growth Growth vs ‘19 YoY Growth Growth vs ‘19 2019 - - 2019 - - 2020 +85% +85% 2020 +49% +49% 2021 +8% +100% 2021 +1% +51% 2022
Slide 6: Channel Inventory Reduction of Over $100M During 2022
CHANNEL INVENTORY REDUCTION OF OVER $100M DURING 2022, NOW BACK AT TARGET LEVELS $300 $250 $200 Millions $150 $100 $50 $0 Management estimates based on reporting from inventory levels from Channel partners
Slide 7: Key Product Announcements
KEY PRODUCT ANNOUNCEMENTS CORSAIR CONFIDENTIAL
Slide 8: Xeneon Flex 45WQHD240 OLED
XENEON FLEX 45WQHD240 OLED A flagship 45in 240Hz bendable OLED gaming monitor created in partnership with LG Display. Combining a cutting-edge 240Hz high-refresh-rate OLED panel with the ability to manually adjust its curvature. “It’s one of the best gaming experiences I’ve had in a long while.” - L
Slide 9: Facecam Pro
FACECAM PRO Facecam Pro is the new benchmark for quality in the global webcam industry. Enabling professional creators, streamers and digital presenters who need 4K @ 60fps to create the highest- quality content. Most high-end webcams, and even DSLR cameras, only record at 4K/30fps or 1080/60fps.
Slide 10: Stream Deck +
STREAM DECK + An enhanced version of our industry-leading Stream Deck. Offering eight Stream Deck LCD buttons, a full-width LCD touchscreen and four dials to provide near limitless customization. The four dials provide tactile analogue control across a wide range of uses, adjusting brightness, light
Slide 11: RMx Shift Power Supplies
RMx SHIFT POWER SUPPLIES 2023 will see Corsair launch several new products to make system builds substantially easier, removing barriers to entry for people to build a PC and helping to make PC building more accessible to a whole new group of customers. RMx SHIFT is the first of this initiative, wit
Slide 12: iCUE Murals
iCUE MURALS iCUE Murals is a major new feature built into our iCUE software suite, substantially improving the user experience and allowing customers to easily setup, customize and sync lighting effects across their entire setup. Deep integration with Nanoleaf and Philips HUE lighting ecosystems exp
Slide 13: Financial Results
FINANCIAL RESULTS CORSAIR CONFIDENTIAL
Slide 14: 2022 and Q4'22 Results
2022 AND Q4’22 RESULTS(1) ($ in millions except EPS and percentages) Q3'22 Q4'22 Y/Y Q/Q 2022 Y/Y • Channel inventory depleted by over $100 million in 2022, now Net Revenue $311.8 $398.7 -21.9% 27.9% $1,375.1 -27.8% in balance, meaning sales out to the consumer were ~$100 million Gross Profit $71.6
Slide 15: Margins Improved as Planned with Freight Cost and Inventory Back to Normal
MARGINS IMPROVED AS PLANNED WITH FREIGHT COST AND INVENTORY BACK TO NORMAL LEVELS SEGMENT GROSS PROFIT * SEGMENT GROSS MARGIN * $122M 33.7% 32.8% 32.1% $98M $91M 29.9% $53M 28.0% $72M $40M $43M 23.9% 24.5% 23.8% $69M $56M 23.0% $32M 20.7% 19.7% 20.7% $58M $25M 19.3% $48M 18.5% $40M 15.9% $31M Q4'21
Slide 16: Margin Improvement Driving Up Adjusted EBITDA in Q4
MARGIN IMPROVEMENT DRIVING UP ADJUSTED EBITDA IN Q4 In Millions ($) $40M $35 $32M $25 $15M $15 $10M $5 Q4'21 Q1'21 Q2'22 Q3'22 Q4'22 -$5 -$15 -$11M 1. See appendix for reconciliation of non-GAAP metrics to most comparable GAAP metrics.
Slide 17: Financial Guidance FY2023
FINANCIAL GUIDANCE FY2023(1) Financial Metrics 2023 Guidance Net Revenues $1.35-1.55 billion Adjusted Operating Income $75-95 million Adjusted EBITDA $90-110 million (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, actual results may differ
Slide 18: Debt Summary, Increased Cash Position
DEBT SUMMARY, INCREASED CASH POSITION ($ in millions) December 31, 2022 Cash (Excluding restricted cash) $151.2 Term Loan (face value) $240.0 Total Debt $240.0 Net Debt $88.8 • Quarterly interest expense estimated at $4 million in 2023. • 2022 CAPEX excluding one-time capex spend on new headquarter
Slide 19: Appendix
APPENDIX
Slide 20: 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 21: GAAP to Non-GAAP Reconciliations: Operating Income
GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP Operating Income (Loss) Reconciliations (Unaudited, in thousands, except percentages)
Slide 22: 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 and percentages)
Slide 23: GAAP to Non-GAAP Reconciliations: Adjusted EBITDA
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages)
Slide 24: Corsair
pA CORSAIR