Corsair Gaming, Inc. (NASDAQ:CRSR) Q1 2023 Earnings Conference Call May 10, 2023 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 Eric Sheridan - Goldman Sachs Drew Crum - Stifel, Nicolaus & Company. Aaron Lee - Macquarie Group Jack Butler - Barclays Bank Plc Operator Good afternoon, and welcome to the Corsair Gaming's First Quarter 2023 Earnings Confere ...

I CORSAIR Forward Looking Statements Market & Industry Data CORSAIR CONFIDENTIAL Gaming Components and Memory 46% 72% 0% 20% 40% 60% 80% Components Memory • Corsair focusing on high end peripherals for enthusiasts, and our core business in gaming. Gaming Peripherals ASP in US Market LARGER MEMORY REQUIREMENTS BY GAMES IS DRIVING DEMAND FOR NEW BUILDS AND UPGRADES Source – *Steam Hardware survey March 2023 Hardware Requirements - Publisher Recommendations Corsair in Q1 2023 introduced new high performance 32 ...

Financial Performance - Net revenue for the three months ended March 31, 2023, decreased by $26.7 million or 7.0% compared to the same period last year, primarily due to decreased revenue in the gamer and peripherals segment [106]. - Net revenue for the three months ended March 31, 2023, was $353.964 million, a decrease of $26.7 million or 7.0% compared to $380.691 million in the same period last year [134]. - The gamer and creator peripherals segment saw a significant decline in net revenue, down $45.2 million or 33.7%, primarily due to a challenging macroeconomic environment [146]. - In contrast, the gaming components and systems segment experienced an increase in net revenue of $18.5 million or 7.5%, driven by higher demand for power supply units and cooling solutions [147]. Gross Margin and Profitability - Gross margin increased from 23.8% to 24.1% for the three months ended March 31, 2023, compared to the same period last year [106]. - Gross profit for the three months ended March 31, 2023, was $85.404 million, with a gross margin of 24.1%, an increase of 0.3% from 23.8% in the same period last year [136]. - The company expects gross margin to improve further in the remainder of 2023 due to enhancements in the supply chain environment [137]. Cash Flow and Liquidity - Cash and restricted cash totaled $182.1 million as of March 31, 2023, while the principal balance of the Term Loan was $230.0 million [107]. - Net cash provided by operating activities was $41.826 million for the three months ended March 31, 2023, compared to $(6.106) million in the same period last year [157]. - Cash used in investing activities decreased to $4.7 million in Q1 2023 from $23.9 million in Q1 2022, with the latter including a $19.5 million acquisition of iDisplay [160]. - Cash used in financing activities was $9.9 million in Q1 2023, primarily for debt repayment of $10.0 million, while in Q1 2022, it was $1.9 million, mainly for debt repayment of $1.3 million [161][162]. Market Trends and Product Development - The gaming market is expected to continue growing due to lower-priced GPUs and new game titles being released in 2023 [105]. - The company launched 125 new products in 2022 and began shipping innovative products like the FLEX OLED bendable monitor in Q1 2023 [105]. - The introduction of new high-performance computing hardware is anticipated to drive demand for gaming components and systems [112]. Customer Concentration - Amazon accounted for 25.8% of net revenue for the three months ended March 31, 2023, with the top ten customers representing approximately 51.5% of net revenue [114]. Economic and Operational Challenges - Global macroeconomic challenges, including inflation and supply chain constraints, adversely impacted net revenue and increased costs in 2022 [109]. - Seasonal sales trends indicate lower net revenue in the first and second quarters, with higher sales expected in the third and fourth quarters due to holiday shopping [116]. Debt and Interest Rates - As of March 31, 2023, the total principal outstanding of the Term Loan was $230.0 million, with an available capacity of $100 million under the Revolving Credit Facility [171]. - Interest expense increased by $1.5 million or 121.1% to $(2.828) million, primarily due to higher interest rates on the Term Loan [140]. - A hypothetical 100 basis point change in interest rates would result in a change to annual interest expense by approximately $2.3 million [183]. Foreign Currency Exposure - Approximately 15.7% of net revenue for Q1 2023 was denominated in foreign currencies, exposing the company to foreign currency exchange rate risks [184]. - The company entered into forward currency contracts with an outstanding notional principal amount of $25.3 million as of March 31, 2023, to mitigate currency fluctuations [185]. - The impact of changes in foreign currency rates, including gains or losses on forward currency contracts, was $(0.6) million for each of the three months ended March 31, 2023 and 2022 [186]. Internal Controls and Compliance - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended March 31, 2023 [191]. - The company's disclosure controls and procedures were evaluated and deemed effective as of March 31, 2023 [190]. - The company intends to continue monitoring and upgrading internal controls as necessary [188].

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, 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 Corsair Gaming, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

Financial Data and Key Metrics Changes - Q4 2022 net revenue increased to $398.7 million compared to $311.8 million in Q3 2022, but decreased from $510.6 million in Q4 2021 [48] - For the full year, net revenue was $1.375 billion, a decrease of 27.8% from $1.904 billion in 2021 [48] - Overall gross profit in Q4 decreased by 19.7% to $97.9 million from $121.8 million in Q4 2021, with gross profit margin increasing to 24.5% from 23.9% [49] - Fourth quarter adjusted net income was $20.7 million or $0.20 per diluted share, compared to $34.7 million or $0.35 per diluted share in Q4 2021 [69] Business Segment Data and Key Metrics Changes - The gamer and creator peripheral segment contributed $117.8 million in Q4, down 33.4% from $176.9 million in Q4 2021 [8] - The gaming components and systems segment generated $280.9 million in Q4, down 15.8% from $333.7 million in Q4 2021 [67] - Memory products contributed $158.1 million in Q4 2022, compared to $176.8 million in Q4 2021 [67] Market Data and Key Metrics Changes - European markets contributed about 30% of revenue, below the historic average in the high 30 percentile but up from approximately 29% in Q3 2022 [48] - The U.S. gaming peripheral market was within 6% of Q4 2021 levels and up 58% compared to pre-pandemic levels in Q4 2019 [62] Company Strategy and Development Direction - The company aims to maintain a strong focus on the self-built PC component market, driven by new GPU and CPU launches [61] - There is an expectation for the second half of 2023 to be stronger than the first half, with multiple product launches planned [65] - The company is also focusing on expanding its direct-to-consumer business and enhancing its streaming and content creator products [58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first half of 2023, citing improved demand for self-built gaming PCs and reduced inventory levels [12] - The company anticipates a gradual improvement in Europe, despite uncertainties related to macroeconomic conditions [34] - Management noted that while the promotional environment may persist for the next 1 to 2 quarters, they are prepared to maintain their market share without heavy discounting [74] Other Important Information - The company ended Q4 with a cash balance of $154 million, bolstered by an equity offering [51] - The company expects total revenue for 2023 to range from $1.35 billion to $1.55 billion, with adjusted operating income between $75 million and $95 million [70] Q&A Session Summary Question: What is the outlook for revenue guidance given the inventory trends? - Management indicated that revenue is expected to be flat to slightly up for the year, with a tailwind of approximately $100 million from consumer shipments exceeding channel shipments [72] Question: How are lower shipping costs impacting COGS and SG&A? - Management confirmed that lower shipping costs are reflected in both COGS and SG&A, with significant reductions in container costs noted [15] Question: What is the strategy regarding promotional activity and pricing? - Management stated they are ahead of competitors in inventory reduction and will maintain pricing to protect their premium positioning, despite ongoing discounting in the market [74]

New Products and Market Expansion - Corsair launched its first Gaming Laptop in August, powered by AMD Ryzen Processors and Radeon graphics, with plans to expand the range in 2023[4] - The gaming laptop category has a Total Addressable Market (TAM) of $30 billion[4] - Corsair is developing a 45" bendable OLED gaming monitor in partnership with LG Display, targeting a growing $7 billion gaming monitor market, expected to ship in Q1 2023[6] - The K100 keyboard family has been extended with a super thin, wireless model - the K100 Air[7] Market Position and Performance - Corsair is the dominant supplier of high-speed gaming memory sold to consumers in the US, with a 72% market share[8] - Corsair has a 40% market share for PSUs sold to consumers in the US to power their gaming PCs[8] - Corsair holds the number one market share position for consumer-bought gaming cases[8] - Corsair holds a dominant 42% share in the self-built gaming PC space in the US[12] Financial Results Q3 2022 - Net Revenue was $3118 million, a decrease of 203% year-over-year but an increase of 98% quarter-over-quarter[19] - Gross Profit was $716 million, a decrease of 294% year-over-year but an increase of 963% quarter-over-quarter[19] - Gross Profit Margin was 230%, a decrease of 290 bps year-over-year but an increase of 1020 bps quarter-over-quarter[19]

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]

Revenue Performance - Revenue for the three months ended September 30, 2022, decreased by $79.4 million or 20.3% compared to the same period last year[131]. - Revenue for the nine months ended September 30, 2022, decreased by $417.1 million or 29.9% compared to the same period last year[131]. - Net revenue decreased by $79.4 million, or 20.3%, for the three months ended September 30, 2022, primarily due to a 30.5% decrease in sales for the gamer and creator peripherals segment[162]. - For the nine months ended September 30, 2022, net revenue decreased by $417.1 million, or 29.9%, attributed to a 32.0% decrease in sales for the gamer and creator peripherals segment[163]. - The decrease in net revenue was significantly impacted by consumer spending in Europe, accounting for approximately 71.3% of the decline in the three months ended September 30, 2022[164]. Gross Margins and Profitability - Gross margins decreased from 25.9% to 23.0% for the three months ended September 30, 2022, and from 28.1% to 20.4% for the nine months ended September 30, 2022[131]. - Gross profit for the three months ended September 30, 2022, was $71,560, with a gross margin of 23.0%, down from 25.9% in the same period last year[166]. - The gross margin of the gamer and creator peripherals segment decreased by 2.1% for the three months ended September 30, 2022, primarily due to increased promotional activity and logistics costs[186]. - The gross margin of the gaming components and systems segment decreased by 2.5% for the three months ended September 30, 2022, primarily due to a change in sales mix toward lower margin products[187]. Expenses and Cost Management - SG&A expenses decreased by $9.2 million, or 12.1%, for the three months ended September 30, 2022, primarily due to lower distribution costs and marketing expenses[168]. - Total operating expenses for the three months ended September 30, 2022, were $82,548, compared to $90,607 in the same period last year[159]. - The company expects total SG&A expenses to rise in absolute dollars due to increased promotional activities and business growth[149]. - Product development expenses are expected to increase in absolute dollars as the company continues to invest in new product development and enhancements[151]. - Product development expenses increased by $1.1 million, or 7.7%, for the three months ended September 30, 2022, compared to the same period last year, primarily due to a $0.9 million increase in amortization of intangible assets from the iDisplay acquisition[170]. Cash and Liquidity - Cash and restricted cash totaled $61.7 million as of September 30, 2022, with a Term Loan outstanding of $245.0 million[131]. - As of September 30, 2022, the company had cash and restricted cash totaling $61.7 million, including $19.7 million held by foreign subsidiaries[188]. - The company expects that anticipated cash flows from operations, combined with current cash balances and borrowings under the Revolving Credit Facility, will be sufficient to fund principal uses of cash for at least the next twelve months[188]. - Cash used in investing activities for the nine months ended September 30, 2022 was $40.5 million, primarily due to a $19.5 million acquisition of iDisplay and $19.9 million in capital expenditures[193]. - Cash used in financing activities was $3.9 million for the nine months ended September 30, 2022, significantly lower than $67.2 million in the same period of 2021[195]. Debt and Financial Obligations - As of September 30, 2022, the total principal outstanding of the Term Loan was $245.0 million, with an available capacity under the Revolving Credit Facility of $100 million[203]. - Total contractual cash obligations as of September 30, 2022 amounted to $448.8 million, with $292.9 million related to debt principal and interest payments[205]. - The Credit Agreement allows for a maximum Consolidated Total Net Leverage Ratio of 3.0 to 1.0, which can increase to 3.50 to 1.0 under certain conditions[200][202]. Foreign Currency Impact - Approximately 16.1% of net revenue for the nine months ended September 30, 2022 was denominated in foreign currencies, primarily Euro and British Pound[212]. - The impact of changes in foreign currency rates resulted in gains of $1.5 million for the nine months ended September 30, 2022, compared to losses of $4.1 million in the same period of 2021[214]. - The company entered into forward currency contracts with an outstanding notional principal amount of $32.4 million as of September 30, 2022, to mitigate currency fluctuations[213]. - A hypothetical ten percent change in exchange rates would increase or decrease the company's gains or losses on foreign currency exchange by approximately $1.0 million for the nine months ended September 30, 2022[214]. Taxation - The effective tax rate for the three months ended September 30, 2022, was 50.7%, an increase from 17.4% in the same period last year, primarily due to changes in the forecast and the mix of losses between various jurisdictions[178]. - The effective tax rate for the nine months ended September 30, 2022, was 15.6%, a decrease from 17.2% in the same period last year, primarily due to an increase in losses in foreign subsidiaries[179]. Internal Controls and Compliance - The company's disclosure controls and procedures were evaluated as effective as of September 30, 2022, providing reasonable assurance for timely decision-making regarding required disclosures[217]. - There were no changes in the company's internal control over financial reporting during the quarter ended September 30, 2022, that materially affected its effectiveness[218].

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 ...

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 ...