sair Gaming(CRSR)

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sair Gaming(CRSR) - 2022 Q3 - Earnings Call Transcript
2022-11-03 22:53
Financial Data and Key Metrics Changes - The company achieved a 10% sequential revenue growth in Q3 2022, with revenue increasing to $311.8 million from $283.9 million in Q2 2022, but down from $391.1 million in Q3 2021 [5][18] - Gross profit decreased by 29.4% to $71.6 million from $101.4 million in Q3 2021, with a gross profit margin of 23% compared to 25.9% in Q3 2021 [22] - The net loss for Q3 2022 was $5.9 million, translating to a loss of $0.09 per diluted share, compared to net income of $1.8 million or $0.02 per diluted share in Q3 2021 [26] Business Line Data and Key Metrics Changes - The Gamer and Creator Peripheral segment generated $96.8 million in net revenue, up from $89 million in the prior quarter but down 30.5% from $139.3 million in Q3 2021 [20] - The Gaming Components & Systems segment contributed $214.9 million in net revenue, up from $194.9 million in the prior quarter but down 14.7% from $251.9 million in Q3 2021 [21] - Memory products contributed $115.2 million in Q3 2022, nearly flat compared to $115.5 million in Q3 2021 [21] Market Data and Key Metrics Changes - The European market contributed about 29% of total revenues, which is below the historic average in the high 30 percentile but up from approximately 25% in Q2 2022 [19] - Revenue in Asia for Q3 was approximately flat compared to the previous year [11] Company Strategy and Development Direction - The company aims to reduce worldwide channel inventory by roughly $100 million from the start of 2022 to the end of the year, focusing on normalizing inventory levels [7] - New product launches, including the Corsair Voyager a1600 laptop and a 45-inch OLED bendable gaming monitor, are expected to enhance market presence and drive future growth [12][13] - The company anticipates elevated demand for gaming PCs as new lower-priced GPU models are launched, benefiting from the recent downturn in cryptocurrency mining demand [14][32] Management's Comments on Operating Environment and Future Outlook - Management noted that while the market environment remains challenging, there are signs of improvement, particularly in the self-built gaming PC market [31] - The company expects continued growth in Q4 across all categories, with a projected revenue increase of 20% to 25% based on historical seasonality [43] - Management highlighted the positive impact of reduced freight costs and normalizing inventory levels on future gross margins [32] Other Important Information - The company ended the quarter with $61.7 million in cash and $245 million in debt, with a focus on strategic investments and reducing debt [28] - The full-year 2022 revenue outlook has been adjusted to a range of $1.325 billion to $1.375 billion, reflecting ongoing market challenges [29] Q&A Session Summary Question: Comments on reducing channel inventory and consumer demand - Management indicated that the increase in inventory was due to over-ordering and a slight reduction in consumer demand, particularly in Europe, with expectations for normalization by Q1 [35][38] Question: Expectations for gross margin improvement in Q4 - Management expects further gross margin improvement in Q4, estimating a 2 to 3 percentage point increase due to reduced freight rates and economies of scale [40] Question: Seasonality and revenue guidance for Q4 - Historical data suggests a Q3 to Q4 revenue increase of 15% to 30%, with expectations for a 20% to 25% lift in Q4 based on consumer activity and new product launches [43][44] Question: Margin profile for new products - Management aims to launch new products at higher margins compared to previous years, although gaming PCs and monitors typically have lower margins than other components [49] Question: Outlook on cloud gaming - Management views cloud gaming positively, noting that increased gaming participation at entry levels could lead to future PC platform upgrades [51]
sair Gaming(CRSR) - 2022 Q3 - Quarterly Report
2022-11-02 16:00
Table of Contents Corsair Gaming, Inc. (Exact Name of Registrant as Specified in its Charter) 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 September 30, 2022 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 Del ...
Corsair Gaming (CRSR) Presents at Goldman Sachs Communacopia + Technology Conference 2022
2022-09-16 19:39
Goldman Sachs Communacopia + Technology Conference September 13, 2022 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 statements of historical fact could be deemed forward-looking statements, incl ...
sair Gaming(CRSR) - 2022 Q2 - Earnings Call Transcript
2022-08-05 02:20
Corsair Gaming (NASDAQ:CRSR) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Ronald Van Veen - VP, Finance & IR Andrew Paul - Founder, CEO & Director Michael Potter - CFO Conference Call Participants Mario Lu - Barclays Bank Roderick Hall - Goldman Sachs Group Andrew Crum - Stifel, Nicolaus & Company Franco Granda - D.A. Davidson & Co. Operator Good afternoon, and welcome to the Corsair Gaming Second Quarter 2022 Earnings Conference Call. As a reminder, today's call is being ...
sair Gaming(CRSR) - 2022 Q2 - Earnings Call Presentation
2022-08-05 00:09
| --- | --- | |---------------------------|-------| | | | | | | | | | | | | | | | | Q2 2022 FINANCIAL RESULTS | | | August 4, 2022 | | 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 statements of ...
sair Gaming(CRSR) - 2022 Q2 - Quarterly Report
2022-08-03 16:00
PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company reports a significant net loss for H1 2022, driven by a sharp decline in revenue and gross profit Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net revenue** | $283,908 | $472,903 | $664,599 | $1,002,317 | | **Gross profit** | $36,459 | $130,351 | $127,215 | $290,679 | | **Operating income (loss)** | $(54,960) | $34,713 | $(57,445) | $102,002 | | **Net income (loss)** | $(51,839) | $27,745 | $(55,119) | $74,468 | | **Diluted EPS** | $(0.62) | $0.28 | $(0.68) | $0.74 | Condensed Consolidated Balance Sheet Highlights (in thousands) | Asset/Liability | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash | $35,851 | $62,415 | | Accounts receivable, net | $170,309 | $291,287 | | Inventories | $292,586 | $298,315 | | Goodwill | $347,907 | $317,054 | | Total assets | $1,231,892 | $1,337,396 | | Total debt (current & long-term) | $245,084 | $247,651 | | Total liabilities | $669,531 | $769,216 | Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,051 | $59,397 | | Net cash used in investing activities | $(32,550) | $(10,931) | | Net cash used in financing activities | $(677) | $(43,541) | | Net (decrease) increase in cash | $(26,678) | $4,983 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include segment performance, the iDisplay acquisition, and details on goodwill and total debt - The company operates in two reportable segments: Gamer and creator peripherals, and Gaming components and systems[40](index=40&type=chunk)[41](index=41&type=chunk)[117](index=117&type=chunk) - On January 1, 2022, Corsair completed the acquisition of a 51% stake in iDisplay for a total consideration of **$36.4 million**, adding **$33.0 million** to goodwill[68](index=68&type=chunk)[72](index=72&type=chunk) - As of June 30, 2022, the company had total debt of **$245.1 million**, primarily from a Term Loan facility maturing in September 2026[89](index=89&type=chunk)[95](index=95&type=chunk)[98](index=98&type=chunk) Segment Net Revenue (in thousands) | Segment | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Gamer and Creator Peripherals | $88,989 | $155,157 | $223,137 | $331,069 | | Gaming Components and Systems | $194,919 | $317,746 | $441,462 | $671,248 | | **Total net revenue** | **$283,908** | **$472,903** | **$664,599** | **$1,002,317** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a significant performance downturn due to macroeconomic pressures, lower demand, and inventory charges - Revenue for Q2 2022 decreased by **40.0% YoY**, and for H1 2022, it decreased by **33.7% YoY** due to a slowdown in consumer spending[130](index=130&type=chunk)[143](index=143&type=chunk) - Gross margin for Q2 2022 decreased to **12.8%** from 27.6% in Q2 2021, impacted by freight costs, promotions, and inventory charges[130](index=130&type=chunk)[164](index=164&type=chunk) - The company recorded a **$22.7 million inventory impairment charge** in Q2 2022 and implemented a restructuring plan[55](index=55&type=chunk)[143](index=143&type=chunk) - As of June 30, 2022, the company had **$38.7 million** in cash and restricted cash and **$246.3 million** in outstanding Term Loan debt[130](index=130&type=chunk)[184](index=184&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Net revenue declined sharply across both segments in Q2 2022, with gross margin falling due to inventory charges and higher costs Net Revenue by Segment (in thousands) | Segment | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Gamer and Creator Peripherals | $88,989 | $155,157 | (42.6)% | | Gaming Components and Systems | $194,919 | $317,746 | (38.7)% | | **Total** | **$283,908** | **$472,903** | **(40.0)%** | Gross Profit and Margin by Segment | Segment | Q2 2022 Gross Profit | Q2 2022 Gross Margin | Q2 2021 Gross Profit | Q2 2021 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Gamer and Creator Peripherals | $10,558 | 11.9% | $54,634 | 35.2% | | Gaming Components and Systems | $25,901 | 13.3% | $75,717 | 23.8% | | **Total** | **$36,459** | **12.8%** | **$130,351** | **27.6%** | - SG&A expenses decreased by **$6.8 million (8.5%)** in Q2 2022 YoY, mainly due to lower distribution and personnel-related costs[166](index=166&type=chunk) - Product development expenses increased by **$2.6 million (16.5%)** in Q2 2022 YoY, driven by amortization from the iDisplay acquisition[168](index=168&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company's operating cash flow decreased significantly, while debt levels remained stable with sufficient liquidity for operations Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Operating Activities | $10,051 | $59,397 | | Investing Activities | $(32,550) | $(10,931) | | Financing Activities | $(677) | $(43,541) | - The company's Credit Agreement provides for a **$250 million term loan** and a **$100 million revolving credit facility**[192](index=192&type=chunk)[198](index=198&type=chunk) - The Credit Agreement was amended to replace LIBOR with BSBY and temporarily increase the maximum permitted leverage ratio[197](index=197&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to market risks from interest rate fluctuations on its debt and foreign currency exchange rates - The company's **$246.3 million Term Loan** has a variable interest rate; a 100 basis point change would alter annual interest expense by **$2.5 million**[206](index=206&type=chunk) - In H1 2022, **16.2% of net revenue** was denominated in foreign currencies, with risks partially hedged by forward contracts[207](index=207&type=chunk)[208](index=208&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal controls over financial reporting were effective - Management concluded that disclosure controls and procedures were **effective** at a reasonable assurance level as of June 30, 2022[212](index=212&type=chunk) - No material changes occurred during the quarter that are reasonably likely to materially affect internal controls[213](index=213&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no current legal proceedings that are expected to have a material adverse effect on its business - The company does not expect any pending legal proceedings to have a **material adverse effect** on its business or financial condition[216](index=216&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) Key risks include brand dependence, competition, supply chain disruptions, and its status as a "controlled company" - The business is highly dependent on its ability to maintain brand strength and innovate due to **short product life cycles**[220](index=220&type=chunk)[222](index=222&type=chunk) - Sales are driven by new third-party hardware like GPUs and CPUs, and shortages can **seriously harm business**[226](index=226&type=chunk) - The company faces **intense competition** from established players like Logitech, Razer, Dell (Alienware), and HP (HyperX/Omen)[228](index=228&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) - The war in Ukraine and the COVID-19 pandemic could continue to cause **significant supply chain disruptions** and affect financial results[217](index=217&type=chunk)[266](index=266&type=chunk)[272](index=272&type=chunk) - EagleTree's **56.6% ownership** makes Corsair a "controlled company," exempting it from certain corporate governance requirements[367](index=367&type=chunk)[368](index=368&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[404](index=404&type=chunk) [Defaults Upon Senior Securities](index=72&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section is not applicable as there were no defaults upon senior securities - Not applicable[405](index=405&type=chunk) [Mine Safety Disclosures](index=72&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable as the company is not involved in mining operations - Not applicable[406](index=406&type=chunk) [Other Information](index=72&type=section&id=Item%205.%20Other%20Information) The company reported no other material information for the period - None[407](index=407&type=chunk) [Exhibits](index=73&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including credit agreements and required officer certifications - Key exhibits filed include the First Amendment to the Credit Agreement, the Non-Employee Director Compensation Policy, and CEO/CFO certifications[410](index=410&type=chunk)[411](index=411&type=chunk)
sair Gaming(CRSR) - 2022 Q1 - Earnings Call Presentation
2022-05-06 16:50
Market Overview - US Gaming Enthusiasts are a leading indicator of self-built PC demand increase as GPU prices fall[5] - The US components total addressable market (TAM) shows growth of 32%, 27%, and 29% in Q3'21, Q4'21 and Q1'22 respectively, compared to pre-pandemic levels[5] - The US Gaming Peripherals TAM also shows long-term growth trends with increases of 74%, 62%, and 45% in Q3'21, Q4'21 and Q1'22 respectively, compared to pre-pandemic levels[8] - Corsair dominates in the self-built gaming PC space with a 65% market share in gaming components (excluding memory) and a 45% market share in gaming memory[6] Financial Performance (Q1 2022) - Net revenue decreased by 28.1% year-over-year to $3807 million, but increased 234% compared to Q1'20[27] - Gross profit decreased by 434% year-over-year to $908 million, with a gross profit margin of 238%, a decrease of 650 bps[27] - Adjusted EBITDA decreased by 808% year-over-year to $154 million, with an adjusted EBITDA margin of 41%[27] - Gaming Components and Systems revenue decreased by 303% year-over-year to $2465 million[29] - Gamer and Creator Peripherals revenue decreased by 237% year-over-year to $1341 million, but was up 768% above pre-pandemic Q1'20[30] Financial Guidance (FY2022) - The company expects net revenues between $16 billion and $18 billion[31] - Adjusted operating income is projected to be between $100 million and $120 million[31] - Adjusted EBITDA is expected to be between $110 million and $130 million[31]
sair Gaming(CRSR) - 2022 Q1 - Earnings Call Transcript
2022-05-06 02:07
Corsair Gaming, Inc. (NASDAQ:CRSR) Q1 2022 Earnings Conference Call May 5, 2022 6:00 PM ET Company Participants Ronald van Veen - Vice President, Finance & Investor Relations Andy Paul - Chief Executive Officer Michael Potter - Chief Financial Officer Conference Call Participants Mario Lu - Barclays Rod Hall - Goldman Sachs Drew Crum - Stifel Franco Granda - D.A. Davidson Doug Creutz - Cowen Operator Good afternoon, and welcome to the Corsair Gaming's First Quarter 2022 Earnings Conference Call. As a remind ...
sair Gaming(CRSR) - 2022 Q1 - Quarterly Report
2022-05-05 16:00
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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------------------------------------------------------------------|-------------------------------------------------------------- ...
sair Gaming(CRSR) - 2021 Q4 - Annual Report
2022-02-28 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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 82-2335306 (State or oth ...