| --- | --- | |-------------------------------|-------| | | | | | | | | | | | | | | | | | | | Q2 2024 | | | Company Update August 1, 2024 | | | | | 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 implied by such forward-looking statements. All statements other than ...

Corsair Gaming, Inc. (NASDAQ:CRSR) Q2 2024 Earnings Conference Call August 1, 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. Colin Sebastian - Baird Andrew Crum - Stifel, Nicolaus & Company, Inc. Doug Creutz - Cowen Aaron Lee - Macquarie Group Operator Good afternoon, everyone, and welcome to Corsair Gaming's S ...

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 June 30, 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) Delaware ...

Financial Performance - Net revenue for Q2 2024 was $261.3 million, a decrease of 19.7% compared to $325.4 million in Q2 2023[2] - Net loss attributable to common shareholders was $29.6 million, or $0.28 per diluted share, compared to net income of $1.1 million, or $0.01 per diluted share, in Q2 2023[2] - Adjusted EBITDA for Q2 2024 was a loss of $1.2 million, down from an adjusted EBITDA of $17.8 million in Q2 2023[2] - Operating loss for the three months ended June 30, 2024, was $24.7 million, compared to an operating loss of $2.7 million in the prior year[16] - The net loss attributable to Corsair Gaming, Inc. was $24.2 million for the three months ended June 30, 2024, compared to a net loss of $4.5 million for the same period in 2023[16] - Corsair Gaming reported a net loss of $23,507 thousand for the three months ended June 2024, compared to a net loss of $4,079 thousand for the same period in 2023[20] - The adjusted operating loss for the three months ended June 2024 was $3,821 thousand, significantly lower than the adjusted operating income of $15,851 thousand in the same period last year[21] - Corsair's adjusted EBITDA for the three months ended June 2024 was $(1,244) thousand, a decline from $17,753 thousand in the same period last year[23] - The adjusted net income (loss) for the three months ended June 2024 was $(6,828) thousand, compared to an adjusted net income of $9,821 thousand in the same period last year[22] Revenue Segmentation - The Gaming Components and Systems segment net revenue was $167.1 million, down from $246.7 million in Q2 2023, while the Gamer and Creator Peripherals segment net revenue increased to $94.2 million from $78.8 million[2] - The Gamer and Creator Peripherals segment grew by 19.6% year-over-year in Q2 2024, marking the third consecutive quarter of strong growth[6] - The company reported a gross margin of 37.9% for Gamer and Creator Peripherals, up from 32.4% in the prior year, indicating improved profitability in that segment[18] Cash and Assets - Cash and restricted cash as of June 30, 2024, was $94.6 million[2] - Cash and restricted cash decreased to $94.3 million as of June 30, 2024, from $178.3 million at the end of 2023[19] - Total current assets decreased to $579.6 million as of June 30, 2024, down from $711.6 million at the end of 2023[19] - Corsair's accounts receivable increased by $28,891 thousand for the three months ended June 2024, compared to a decrease of $697 thousand in the same period last year[20] Future Outlook - Corsair expects full-year 2024 net revenue to be in the range of $1.25 billion to $1.35 billion[7] - Adjusted EBITDA for the full year 2024 is projected to be between $60 million and $75 million[7] - Corsair anticipates a natural refresh cycle in the self-built PC market, likely starting later than expected due to new GPU launches and game releases[5] - Corsair plans to continue exploring a potential acquisition of the Sim racing brand Fanatec, which recently filed for insolvency[6] Other Financial Metrics - The gross profit for the same period was $63.1 million, down 23.9% from $82.8 million year-over-year, resulting in a gross margin of 24.1%[18] - Corsair Gaming, Inc. had a diluted net loss per share of $0.28 for the three months ended June 30, 2024, compared to a diluted net income per share of $0.01 in the same period last year[17] - The company’s total net revenue for the six months ended June 30, 2024, was $598.6 million, a decrease of 11.9% from $679.4 million for the same period in 2023[16] - The company incurred one-time costs related to legal and other matters amounting to $1,056 thousand for the three months ended June 2024[22] - The company reported stock-based compensation of $8,010 thousand for the three months ended June 2024, consistent with $8,174 thousand in the same period of 2023[21] - The company reported a GAAP operating loss margin of -9.5% for the three months ended June 2024, compared to -0.8% for the same period in 2023[21]

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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 ...

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]

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 ...

[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)