Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Q2 2024 Earnings Presentation
28 slides from Corsair Gaming's earnings presentation, Aug 1, 2024
Slide 1: Q2 2024 Company Update
Q2 2024 Company Update August 1, 2024
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: Our Full Suite of Products
OUR FULL SUITE OF PRODUCTS Cases Lighting Power Supplies Greenscreen Custom Cooling CPU Coolers Fans Memory Storage Headsets Gaming Controllers Gaming PCs Acoustic Panels Cameras Capture Cards Ambient Monitors Gaming Chairs Lighting iCUE Murals Thunderbolt Docks Stream Deck Microphones Mice Keyboard
Slide 4: Survey of PC Enthusiasts Shows Brand Loyalty Similar to Intel, Microsoft and ASUS
SURVEY OF PC ENTHUSIASTS SHOWS OUR BRAND LOYALTY IS AT A SIMILAR LEVEL TO INTEL, MICROSOFT AND ASUS “I own this brand and plan to buy again in the future” NVIDIA 80% Intel 63% Microsoft 60% Corsair 55% ASUS AMD Amazon MSI Sony Apple HP Google Dell Lenovo Alienware CyberPower Source: DFC Intelligence
Slide 5: Industry Update
INDUSTRY UPDATE CORSAIR CONFIDENTIAL
Slide 6: Lengthening Refresh Cycle Will Likely Push Next Activity Surge to 2025
LENGTHENING REFRESH CYCLE WILL LIKELY PUSH NEXT ACTIVITY SURGE TO 2025 • Macroeconomic conditions are making consumers cautious with high ticket purchases like $3,000 gaming PCs • Next-gen Graphics cards expected in late Q4’24 or Q1’25 • Massive installed base of gaming hardware purchased in 2020 an
Slide 7: Components and Memory
COMPONENTS AND MEMORY Short term self-built PC market weaker than expected in Q2’24, as high-end gamers wait for next-gen GPU and CPU launches 2025 expected to be a big year for upgrading, and new build gaming PC hardware
Slide 8: Major Upcoming AAA Game Launches
MAJOR UPCOMING AAA GAME LAUNCHES Major franchises launching their latest titles in Q4’24 and in 2025 Expected to drive a surge in PC upgrades, with gamers wanting the best experience New games will bring AI needs and demands pushing consumers to require more performance and the latest hardware GTA V
Slide 9: Key Product Progress Q2'24
KEY PRODUCT PROGRESS Q2’24 CORSAIR CONFIDENTIAL
Slide 10: New Peripheral Products Are Driving Revenue Growth
NEW PERIPHERAL PRODUCTS ARE DRIVING REVENUE GROWTH STREAMDECK+ Streamdeck combined with Elgato Marketplace continues to drive both a software and hardware ecosystem beyond the traditional streaming customer PROMPTER Entry into a new category making professional presenting accessible to all SCUF ENVI
Slide 11: Corsair Custom Lab
CORSAIR CUSTOM LAB Corsair Custom Lab enables gamers to select coordinated peripherals with a variety of patterns and themes as well as pick keyboard switch types Starting out with customized versions of popular and award-winning peripherals: • M75 WIRELESS mouse • K65 PLUS WIRELESS keyboard • MM300
Slide 12: Good Traction on Recent Launches
GOOD TRACTION ON RECENT LAUNCHES K65 Plus Wireless #1 revenue position in US in Q2’24 for Gaming Keyboards based on 3rd party data
Slide 13: Corsair Racing
CORSAIR RACING Corsair launched its first sim-racing product – our Sim cockpit We have delivered a great solution for avid Sim racing fans that allows endless attachment points for monitors and peripherals Modular design allows consumers to build precisely what they need for competitive racing
Slide 14: Continued Growth in Gamer and Creator Peripherals Segment
CONTINUED GROWTH IN GAMER AND CREATOR PERIPHERALS SEGMENT WITH 20% YOY GROWTH AT ~38% GM $136.8 $117.8 $107.0 $89.0 $96.8 $88.9 $90.4 $94.2 $78.8 20% YoY revenue growth in Q1'24 and Q2’24 after 16% YoY growth in Q4’23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Net Revenue - (millions) 40.
Slide 15: Financial Results
pe CORSAIR FINANCIAL RESULTS
Slide 16: Q2 2024 and YTD Results
Q2 2024 AND YTD RESULTS(1) ($ in millions except EPS and percentages) Q2'24 Q2'23 Y/Y YTD'24 YTD'23 Y/Y Net Revenue $261.3 $325.4 -19.7% $598.6 $679.4 -11.9% Gross Profit $63.1 $82.8 -23.8% $149.7 $168.2 -11.0% Gross Margin 24.1% 25.5% -140 bps 25.0% 24.8% 20 bps Revenue declined with softer-than- O
Slide 17: Q2 2024 and YTD Segment Results
Q2 2024 AND YTD SEGMENT RESULTS GAMING COMPONENTS AND SYSTEMS Q2 2024 AND YTD RESULTS Gaming Components and Systems segment revenue declined as we are currently mid to late ($ in millions except percentages) Q2'24 Q2'23 Y/Y Q/Q YTD'24 YTD'23 Y/Y cycle in the GPU and CPU platform lifecycle. The last
Slide 18: Revenue by Segment
4090 NVIDIA GPU Introduced and 4080, 4070, 4060 rolled out throughout 2023 REVENUE 19.6% YoY Growth Gamer & Creator $417M $399M $381M $354M $363M Steady growth in Gamer and Creator $137M $337M $325M $312M $118M Peripherals segment offset by lower $134M $284M $89M $90M REVENUE BY SEGMENT $79M $107M $
Slide 19: GAAP Segment Gross Margin %
GAAP SEGMENT GROSS MARGIN % 40.8% 37.2% 37.9% 32.8% 33.7% 33.1% 32.1% 28.0% 32.4% 30.0% 24.5% 25.5% 24.6% 24.6% 25.7% 23.8% 23.0% 24.1% 24.1% 19.7% 22.2% 23.2% 20.7% 21.8% 19.3% 18.5% 18.5% 18.7% 15.9% 16.4% Q1 22 Q2 22* Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Gamer & Creator Peripherals Gam
Slide 20: Adjusted EBITDA
ADJUSTED EBITDA(1) In ($) $34M $32M $23M $21M $18M $18M $15M $10M Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 -$1M -$11M 1. See appendix for reconciliation of non-GAAP metrics to most comparable GAAP metrics.
Slide 21: Financial Guidance
FINANCIAL GUIDANCE(1) Financial Metrics 2024 Guidance Net Revenues $1.25 - 1.35 billion Adjusted Operating Income $48 - 63 million Adjusted EBITDA $60 - 75 million (1) Given the number of risk factors, uncertainties and assumptions, many of which are discussed in slide 2, actual results may differ m
Slide 22: Cash and Debt Summary
CASH AND DEBT SUMMARY ($ in millions) June 30, 2024 Cash (Excluding restricted cash) $92.2 Term Loan (face value) $180.9 Total Debt $180.9 Net Debt $88.7
Slide 23: Appendix
APPENDIX = S i —— 1)
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
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, 2024 2023 2024 2023 Operating Loss - GAAP $ (24,714) $ (2,714) $ (34,933) $ (1,677) Amortization 9,501 9,757 19,016 19
Slide 26: 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, 2024 2023 2024 2023 Net income (loss) attributable to common stockholders of Corsair G
Slide 27: 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, 2024 2023 2024 2023 Net Loss - GAAP $ (23,507) $ (4,079) $ (34,536) $ (5,727) Amortization 9,501 9,757 19,016 19,498 Stock-based compen
Slide 28: PA CORSAIR
PA CORSAIR