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sair Gaming(CRSR) - 2024 Q1 - Earnings Call Transcript
2024-05-08 00:23
Corsair Gaming, Inc. (NASDAQ:CRSR) Q1 2024 Earnings Conference Call May 7, 2024 5:00 PM ET Company Participants Ronald van Veen - Vice President of Finance and Investor Relations Andy Paul - Chief Executive Officer Michael Potter - Chief Financial Officer Conference Call Participants George Wang - Barclays Capital, Inc. Andrew Crum - Stifel, Nicolaus & Company, Inc. Aaron Lee - Macquarie Group Operator Good afternoon, everyone, and welcome to Corsair Gaming's First Quarter 2024 Earnings Conference Call. As ...
sair Gaming(CRSR) - 2024 Q1 - Earnings Call Presentation
2024-05-07 22:46
Financial Performance & Guidance - Corsair's Q1'24 net revenue was $337.3 million, a decrease of 4.7% year-over-year[73] - The gross profit margin increased by 160 bps year-over-year to 25.7% in Q1'24[73] - Adjusted EBITDA for Q1'24 was $18.0 million[73] - The company provides 2024 financial guidance with net revenues between $1.45 billion and $1.60 billion, adjusted operating income between $92 million and $112 million, and adjusted EBITDA between $105 million and $125 million[80] Segment Performance - Gamer and Creator Peripherals segment experienced a 20% year-over-year growth in Q1'24[4, 75] - Gamer and Creator Peripherals segment revenue was $107.0 million in Q1'24, compared to $88.9 million in Q1'23[76] - Gross profit margin for the Gamer and Creator Peripherals segment was 40.8% in Q1'24, an increase of 1080 bps compared to Q1'23[76] - Gaming Components and Systems segment revenue was $230.3 million in Q1'24, a decrease of 13.1% year-over-year[76] Market Trends & Product Launches - The company expects a surge in the self-build PC market in the second half of 2024 and 2025 due to the launch of next-generation GPUs and CPUs[15] - Recent launches include the Elgato Neo product line, aimed at the creator market, and new compact keyboard and lightweight mouse products[13, 35]
sair Gaming(CRSR) - 2024 Q1 - Quarterly Report
2024-05-07 20:49
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-39533 Corsair Gaming, Inc. (Exact Name of Registrant as Specified in Its Charter) (State ...
sair Gaming(CRSR) - 2024 Q1 - Quarterly Results
2024-05-07 20:05
[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) Corsair's Q1 2024 net revenue declined to $337.3 million with a net loss, offset by strong peripherals segment growth and improved gross margins [First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) In Q1 2024, Corsair's net revenue was $337.3 million, a decrease from $354.0 million in Q1 2023, driven by a decline in the Gaming Components and Systems segment, partially offset by strong 20% year-over-year growth in the Gamer and Creator Peripherals segment, resulting in a net loss of $12.5 million compared to a net loss of $1.1 million in the same period last year Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | Q4 2023 | | :--- | :--- | :--- | :--- | | Net Revenue | $337.3M | $354.0M | $417.3M | | Net (Loss) Income | $(12.5)M | $(1.1)M | $6.2M | | Diluted Net (Loss) Income per Share | $(0.12) | $(0.01) | $0.06 | | Adjusted Net Income | $9.5M | $11.9M | $23.2M | | Adjusted EBITDA | $18.0M | $20.6M | $33.7M | - The Gamer and Creator Peripherals segment achieved significant **20% year-over-year revenue growth**, reaching a record **40% gross margin**[1](index=1&type=chunk)[3](index=3&type=chunk) - The Gaming Components and Systems segment net revenue was **$230.3 million**, down from **$265.0 million** in Q1 2023[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strong performance and margin expansion in the peripherals segment, driven by new product launches, while noting subdued demand in the components market but expecting a recovery in the second half of 2024, with a focus on innovation and debt reduction - CEO Andy Paul emphasized that new products drove **20% YoY revenue growth** in the Gamer and Creator Peripherals segment, with all product lines, including Elgato and SCUF Gaming, showing growth[3](index=3&type=chunk) - The company plans to enter new categories with upcoming launches of a mobile gaming controller and a SIM racing product line, and has recently launched the Elgato Neo family to target a more casual user base[5](index=5&type=chunk) - CFO Michael G. Potter noted a gross margin increase of **110 basis points to 25.7%** in Q1 2024, despite increased freight costs. The company also paid off an additional **$15 million in debt**[5](index=5&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Corsair reiterates its full-year 2024 financial outlook, anticipating revenue growth and improved adjusted EBITDA driven by better margins and cost controls [Reiterates 2024 Financial Outlook](index=2&type=section&id=Reiterates%202024%20Financial%20Outlook) Corsair has reiterated its financial outlook for the full year 2024, expecting revenue growth to improve throughout the year, and anticipates further improvement in adjusted EBITDA, driven by better margins, stabilized shipping costs, and controlled operating expenses Full Year 2024 Financial Outlook | Metric | Range | | :--- | :--- | | Net Revenue | $1.45 billion to $1.60 billion | | Adjusted Operating Income | $92 million to $112 million | | Adjusted EBITDA | $105 million to $125 million | - The company expects revenue growth to improve through 2024, with adjusted EBITDA improvement led by better margins, stable shipping costs, and tight operating expense controls[6](index=6&type=chunk) [Business and Product Updates](index=3&type=section&id=Business%20and%20Product%20Updates) Corsair has launched several new products across its brands, expanding its offerings in gaming peripherals, components, and streaming hardware [Recent Product Developments](index=3&type=section&id=Recent%20Product%20Developments) Corsair has recently launched a variety of new products across its brands, including the Neo hardware line for simplified high-performance setups, an upgraded Elgato Facecam MK.2, its first 75% wireless keyboard (K65 Plus), a new compact CORSAIR ONE i500 gaming PC, and new iCUE Link RX Series fans and dual-chamber PC cases - Launched the 'Neo' hardware line, including a microphone, webcam, LED light, capture card, and Stream Deck, targeting simplicity and high performance[13](index=13&type=chunk) - Introduced the K65 Plus Wireless, the company's first **75% layout keyboard** with hot-swappable switches[13](index=13&type=chunk) - Released new PC components including the CORSAIR ONE i500 PC, iCUE Link RX Series fans, and the 2500 & 6500 Series dual-chamber cases[13](index=13&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) Detailed financial statements for Q1 2024 show Corsair's consolidated operations, segment performance, balance sheet, and cash flow [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the first quarter of 2024, Corsair reported a gross profit of $86.6 million on net revenue of $337.3 million, resulting in an operating loss of $10.2 million, with a net loss attributable to common stockholders of $12.5 million, or $0.12 per diluted share, a wider loss compared to the $1.1 million loss in Q1 2023 Q1 2024 vs Q1 2023 Statement of Operations (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Revenue | $337,257 | $353,964 | | Gross Profit | $86,639 | $85,404 | | Operating (Loss) Income | $(10,219) | $1,037 | | Net Loss Attributable to Common Stockholders | $(12,540) | $(1,054) | | Diluted Net Loss Per Share | $(0.12) | $(0.01) | [Segment Information](index=7&type=section&id=Segment%20Information) The company's performance varied significantly between its two segments, with the Gamer and Creator Peripherals segment seeing a 20.3% year-over-year revenue increase to $107.0 million and substantial gross margin expansion to 40.8%, while the Gaming Components and Systems segment experienced a 13.1% revenue decline to $230.3 million with its gross margin contracting to 18.7% Segment Performance (Q1 2024 vs Q1 2023, in thousands) | Segment | Net Revenue (Q1'24) | Net Revenue (Q1'23) | Gross Margin (Q1'24) | Gross Margin (Q1'23) | | :--- | :--- | :--- | :--- | :--- | | Gamer and Creator Peripherals | $106,973 | $88,942 | 40.8% | 30.0% | | Gaming Components and Systems | $230,284 | $265,022 | 18.7% | 22.2% | | **Total** | **$337,257** | **$353,964** | **25.7%** | **24.1%** | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, Corsair's balance sheet showed total assets of $1.26 billion and total liabilities of $567.9 million, with cash and restricted cash decreasing to $130.2 million and total debt reduced to approximately $183.3 million Balance Sheet Summary (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and restricted cash | $129,942 | $178,325 | | Total Assets | $1,257,191 | $1,357,463 | | Total Liabilities | $567,940 | $663,483 | | Total Corsair Gaming, Inc. stockholders' equity | $663,539 | $667,575 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2024, the company experienced a net cash outflow from operating activities of $26.3 million, a significant reversal from the $41.8 million inflow in the same period last year, with net cash used in financing activities of $19.9 million primarily due to debt repayment, resulting in a net decrease in cash and restricted cash of $48.4 million for the quarter Cash Flow Summary (Q1 2024 vs Q1 2023, in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(26,317) | $41,826 | | Net cash used in investing activities | $(1,479) | $(4,677) | | Net cash used in financing activities | $(19,949) | $(9,886) | | Net (decrease) increase in cash and restricted cash | $(48,381) | $27,993 | [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Corsair utilizes non-GAAP financial measures to provide a clearer view of its operational performance by adjusting for specific non-recurring or non-cash items [Use and Reconciliation of Non-GAAP Measures](index=4&type=section&id=Use%20and%20Reconciliation%20of%20Non-GAAP%20Measures) Corsair uses non-GAAP financial measures such as adjusted operating income, adjusted net income, and adjusted EBITDA to supplement its GAAP results, as management believes these measures help identify underlying business trends by excluding items like amortization, stock-based compensation, and other one-time costs, providing a clearer view of operational performance - The company uses non-GAAP measures to evaluate operating performance, identify underlying trends, and make planning decisions[16](index=16&type=chunk) - Adjustments to GAAP figures typically include amortization, stock-based compensation, one-time legal costs, restructuring charges, and acquisition-related costs[20](index=20&type=chunk) [GAAP to Non-GAAP Reconciliations](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) The reconciliation tables show significant adjustments from GAAP to non-GAAP figures for Q1 2024, where the GAAP operating loss of $10.2 million was adjusted to a non-GAAP operating income of $15.4 million, and the GAAP net loss of $11.0 million was reconciled to a non-GAAP net income of $9.5 million, with adjusted EBITDA for the quarter at $18.0 million Q1 2024 GAAP to Non-GAAP Reconciliation Summary (in thousands) | Metric | GAAP | Non-GAAP (Adjusted) | | :--- | :--- | :--- | | Operating (Loss) Income | $(10,219) | $15,398 | | Net Loss / Income | $(11,029) | $9,516 | | Diluted EPS | $(0.12) | $0.09 | | EBITDA | N/A | $18,024 | - Major adjustments for Q1 2024 included **$9.5 million** for amortization, **$7.7 million** for stock-based compensation, and **$6.4 million** for one-time legal costs[30](index=30&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk)
Corsair Gaming: Gaming Peripheral Space Leader, A Speculative Buy
Seeking Alpha· 2024-03-08 06:34
janiecbros/E+ via Getty Images The gaming peripheral and component space has had a rough past few years. After an incredible Covid-19 induced boom in 2020 and 2021, the recent past has been difficult for the computer and peripheral space. However, after a period of weakness from Corsair Gaming (NASDAQ:CRSR), the stock fundamentals are now poised to improve into 2024 and 2025. After a period of cyclical digestion with many who needed components having already bought them, the market has bottomed out and is a ...
CORSAIR Expands iCUE LINK Ecosystem with Performance-Focused RX Series Fans
Businesswire· 2024-02-27 14:00
Corsair Gaming, Inc. (Nasdaq: CRSR) today launched the iCUE LINK RX Series of PC cooling fans, further expanding the company's groundbreaking iCUE LINK ecosystem. This launch marks a significant step in the evolution of Corsair's portfolio of DIY components, reinforcing the company’s dedication to innovation and excellence in the dynamic DIY PC market. (Photo: Business Wire)Corsair Gaming, Inc. (Nasdaq: CRSR) today launched the iCUE LINK RX Series of PC cooling fans, further expanding the company's groundbr ...
sair Gaming(CRSR) - 2023 Q4 - Annual Report
2024-02-26 16:00
Item 1A. Risk Factor Summary Below is a summary of the principal factors that make an investment in our common stock speculative or risky. This summary does not address all of the risks that we face. Additional discussion of the risks summarized in this risk factor summary, and other risks that we face, can be found below under the heading "Risk Factors" and should be carefully considered, together with other information in this Annual Report on Form 10-K and our other filings with the Securities and Exchan ...
Bold Bets: 7 ‘Black Sheep' Stock Picks for the Maverick Investor
InvestorPlace· 2024-02-20 18:39
While the conventional methodology exists for a reason, sometimes, you need maverick stocks to shake things up. These ideas may be odd but they may offer the right balance of novelty and competitive fuel to jump ahead.It’s just like running plays in (American) football. In many, if not most situations, you want to run derivations of the classic I-formation. It gives you the flexibility to run the ball or throw the occasional pass. But now and then, you want to use some misdirection, a bootleg, some razzle d ...
Corsair Gaming (CRSR) Stock Down on Q4 Earnings & Revenue Miss
Zacks Investment Research· 2024-02-14 17:36
Corsair Gaming, Inc. (CRSR) reported mixed fourth-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. However, the top and the bottom line increased on a year-over-year basis.The upside was backed by strong demand for new products, reduced promotional activities and improved inventory levels. Also, strong Gamer and Creator Peripherals segment performance added to the positive.The company returned to target inventory levels in the channel and warehouses, with some categorie ...
sair Gaming(CRSR) - 2023 Q4 - Earnings Call Transcript
2024-02-14 00:26
Corsair Gaming, Inc. (NASDAQ:CRSR) Q4 2023 Earnings Conference Call February 13, 2024 8:30 AM ET Company Participants Ronald van Veen - Vice President, Finance and Investor Relations Andy Paul - Chief Executive Officer Michael Potter - Chief Financial Officer Conference Call Participants Drew Crum - Stifel George Wang - Barclays Doug Creutz - TD Cowen Aaron Lee - Macquarie Operator Good afternoon, and welcome to the Corsair’s Gaming Fourth Quarter and Full-Year 2023 Earnings Conference Call. As a reminder, ...