Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q2 2023 Earnings Presentation
29 slides from Corsair Gaming's earnings presentation, Aug 3, 2023
Slide 1: Q2 2023 Financial Results
Q2 2023 FINANCIAL RESULTS August 3, 2023
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: Q2 2023 Market Update
Q2 2023 MARKET UPDATE CORSAIR CONFIDENTIAL
Slide 4: Corsair Gaining Market Share in Growing Self Built PC Market
CORSAIR GAINING MARKET SHARE IN GROWING SELF BUILT PC MARKET Corsair US Market Share (1) 80% 73% Components Memory 60% Self-built PC market fueled by new GPUs with lower priced 45% cards now in the market. 40% 20% More people in major markets building gaming PCs now than pre-pandemic. 0% Corsair has
Slide 5: Peripheral Market Starting to Recover in Q2'23
PERIPHERAL MARKET STARTING TO RECOVER IN Q2'23 • YoY comparisons in major markets substantially improved Q1 to Q2. • Competitors reducing discounting as inventories become balanced. • Corsair focusing on high-end peripherals for enthusiasts, and our core business in gaming. • We expect market growth
Slide 6: Many Major PC Games Still to Come in 2023
MANY MAJOR PC GAMES STILL TO COME IN 2023 August 25 ‘Summer 2023’ August 31 September 6 September 26 October 10 October 12 October 17 October 24 November Est.
Slide 7: Key Announcements
KEY ANNOUNCEMENTS CORSAIR CONFIDENTIAL
Slide 8: Drop Joins Corsair
DROP JOINS CORSAIR Corsair has acquired Drop in an asset purchase. Drop (formerly Massdrop) is a leader in keyboard customization and enthusiast setup accessories, creating amazing custom keycaps and acting as a marketplace for enthusiast communities, where user feedback plays a large role in produc
Slide 9: iCUE LINK
iCUE LINK iCUE LINK is a revolutionary new ecosystem of products that greatly improves the way users build a PC, removing entry barriers to building a PC and opening PC building to a new group of customers. A universal single-cable interface for power and data cuts through cable management and makes
Slide 10: Xeneon 27 OLED
XENEON 27 OLED A continuation of the partnership between Corsair and LG Display, the XENEON 27 OLED brings the stunning benefits of OLED display to the popular 27” form factor. The 27” form factor is ideal for smaller desktops and works particularly well in dual-display setups. A 240Hz Refresh rate,
Slide 11: Corsair Partners with CouRageJD
CORSAIR PARTNERS WITH COURAGEJD Corsair has partnered with top-tier streamer Jack “CouRageJD” Dunlop, further expanding our lineup of top-tier gaming influencer partnerships. Nominated for multiple Streamy Awards, including "Gaming Creator of the Year" in 2019 and 2020, and "Best Gaming Creator" in
Slide 12: Darkstar and Nightsabre Mice
DARKSTAR AND NIGHTSABRE MICE Two new versatile premium mice, combining the latest in sensor and wireless technology and further expanding our performance mouse range. Darkstar offers 15 programmable buttons, including a six-button side cluster to help gamers succeed in any genre of game Nightsabre f
Slide 13: K65 Pro Mini
K65 PRO MINI The first CORSAIR 65% layout keyboard as we continue to expand our product line to address keyboard enthusiast demands. 65% layout removes the numpad, but retains the arrow keys, in a compact form factor. Two layers of integrated sound dampening reduce keyboard noise but retain the mech
Slide 14: Dominator Titanium
DOMINATOR TITANIUM A new addition to our performance memory lineup, DOMINATOR TITANIUM combines luxury, performance and customization for high-end system builds. Further cements our leadership in the performance memory category. Removable top-bars allow enthusiasts to change the look of their memory
Slide 15: Elgato Stream Deck Mobile iOS App
ELGATO STREAM DECK MOBILE iOS APP A wide-reaching refresh of the Stream Deck Mobile iOS app puts a free Stream Deck in the hands of millions of customers. New “freemium” pricing model means iPhone and iPad users can get the best of Stream Deck on their iPhone or iPad for free — including six keys, u
Slide 16: Financial Results
FINANCIAL RESULTS CORSAIR CONFIDENTIAL
Slide 17: Q2 2023 and YTD Results
Q2 2023 AND YTD RESULTS (1) Q2'23 and YTD'23 showed growth in revenue, gross margin and profitability over last year periods. ($ in millions except EPS and percentages) Q2'22 Q2'23 Y/Y YTD'22 YTD'23 Y/Y Q2'23 revenue growth of 14.6% over prior year, exceeding Net Revenue $283.9 $325.4 14.6% $664.6 $
Slide 18: Q2 2023 and YTD Segment Results
Q2 2023 AND YTD SEGMENT RESULTS Gaming Components and Systems Q2'23 and YTD Results 26.6% Q2'23 growth in Components and Systems ($ in millions except percentages) Q2'22 Q2'23 Y/Y YTD'22 YTD'23 Y/Y segment, exceeding our expectations, as we continue to gain share in most Component categories. Net Re
Slide 19: Revenue by Segment
STRONG ACTIVITY IN SELF-BUILT GAMING SYSTEMS DRIVING OVERALL YOY GROWTH 14.6% YoY Overall Growth 26.6% YoY growth in Components and $399M Systems segment driven by introduction of $381M $354M REVENUE BY SEGMENT new hardware GPU and CPU platforms. $118M $325M $312M $134M $284M $89M $79M We believe th
Slide 20: Gross Margins Steadily Increasing
GROSS MARGINS STEADILY INCREASING GROSS PROFIT MARGIN 30.0% 25.5% 23.8% 24.5% 24.1% 25.0% 23.0% 20.0% 15.0% 10.0% 12.8% (including excess inventory reserve) 5.0% 0.0% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23
Slide 21: Margin Recovery and Cost Control Has Driven EBITDA Growth for 1H23
MARGIN RECOVERY AND COST CONTROL HAS DRIVEN EBITDA GROWTH FOR 1H23 In Millions ($) $32M $21M $18M $15M $10M Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 -$11M 1. See appendix for reconciliation of non-GAAP metrics to most comparable GAAP metrics.
Slide 22: Financial Guidance FY 2023
FINANCIAL GUIDANCE FY 2023(1) Financial Metrics 2023 Guidance Net Revenues $1.35-1.55 billion Adjusted Operating Income $75-95 million Adjusted EBITDA $90-110 million (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, actual results may diffe
Slide 23: Debt Summary
DEBT SUMMARY ($ in millions) June 30, 2023 Cash (Excluding restricted cash) $181.1 Term Loan (face value) $228.8 Total Debt $228.8 Net Debt $47.7
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 (Loss), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss) and Adjusted Ne
Slide 26: 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, 2023 2022 2023 2022 Operating Loss - GAAP $ (2,714) $ (54,960) $ (1,677) $ (57,445) Amortization 9,757 13,434 19,498 2
Slide 27: 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) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net income (loss) attributable to common stockholders of Corsair G
Slide 28: 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, 2023 2022 2023 2022 Net loss - GAAP $ (4,079) $ (51,839) $ (5,727) $ (55,119) Amortization 9,757 13,434 19,498 23,572 Stock-based compe
Slide 29: Corsair
PA CORSAIR