sair Gaming(US:CRSR)2024-11-06 21:05Financial Performance - Net revenue for Q3 2024 was $304.2 million, a decrease of 16.2% compared to $363.2 million in Q3 2023[2] - Net loss attributable to common shareholders was $58.4 million, or $0.56 per diluted share, compared to a net loss of $3.1 million, or $0.03 per diluted share, in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $4.8 million, down from $23.0 million in Q3 2023[2] - Gross profit for the three months ended September 30, 2024, was $69,661 thousand, down 22.1% from $89,353 thousand in the prior year[21] - Operating loss for the three months ended September 30, 2024, was $(20,944) thousand, compared to a loss of $(758) thousand for the same period in 2023[19] - Net loss attributable to Corsair Gaming, Inc. for the three months ended September 30, 2024, was $(51,708) thousand, significantly higher than $(3,079) thousand in the same quarter of 2023[19] - The company reported a basic net loss per share of $(0.56) for the three months ended September 30, 2024, compared to $(0.03) in the same period last year[20] - Corsair Gaming reported a net loss of $51.586 million for the three months ended September 2024, compared to a net loss of $2.886 million for the same period in 2023[25] - The adjusted net loss for the three months ended September 2024 was $30.252 million, compared to an adjusted net income of $13.364 million in the same period last year[27] - GAAP net loss for the three months ended September 2024 was $51.586 million, compared to a loss of $2.886 million for the same period in 2023[28] Segment Performance - The Gaming Components and Systems segment net revenue was $202.2 million, down from $272.8 million in Q3 2023, while the Gamer and Creator Peripherals segment net revenue increased to $102.0 million from $90.4 million[2] - The Gamer and Creator Peripherals segment achieved 13% revenue growth year-over-year in Q3 2024, with strong margins of 38.3%[4] - Gross margin for Gamer and Creator Peripherals improved to 38.3% in Q3 2024 from 33.1% in Q3 2023[23] Future Outlook - Corsair expects full year 2024 revenue to be in the range of $1.25 billion to $1.35 billion, including approximately $20 million of EBITDA-neutral revenue in Q4 2024 from the Fanatec acquisition[5] - Adjusted operating income is now expected to be in the range of $28 million to $43 million, down from a previous expectation of $48 million to $63 million[6] - Corsair anticipates that Q4 2024 will be EBITDA neutral, with profitability expected in 2025 driven by the Fanatec acquisition[4] Cost Management - The company has implemented cost-saving measures expected to yield several million dollars in savings per quarter starting in Q4 2024[4] Cash Flow and Assets - Total current assets decreased to $571,553 thousand as of September 30, 2024, from $711,589 thousand at the end of 2023, reflecting a decline of 19.7%[24] - Cash and restricted cash decreased to $61,361 thousand from $178,325 thousand, a decline of 65.6%[24] - Corsair Gaming's total cash and restricted cash at the end of the period was $61.606 million, down from $147.770 million at the end of September 2023[25] - The company experienced a net cash used in operating activities of $25.101 million for the three months ended September 2024, compared to a net cash used of $11.912 million in the prior year[25] - Corsair Gaming's cash flows from financing activities resulted in a net cash outflow of $24.474 million for the three months ended September 2024, compared to $6.100 million in the same period last year[25] Acquisitions and Integration - Corsair completed the acquisition of the Fanatec Sim Racing brand, enhancing its position in the Sim Racing market[9] - The company incurred $43.131 million in cash outflows related to business acquisitions during the three months ended September 2024[25] - Acquisition and related integration costs for the three months ended September 2024 were $2.281 million, compared to $1.386 million in the same period last year[28] Expenses - Total operating expenses for the three months ended September 30, 2024, were $90,605 thousand, slightly higher than $90,111 thousand in the prior year[19] - Stock-based compensation for the three months ended September 2024 was $7.424 million, slightly down from $7.825 million in the same period last year[26] - Stock-based compensation for the nine months ended September 2024 totaled $23.125 million, slightly down from $23.245 million in the previous year[28] - Amortization expenses for the nine months ended September 2024 were $28.583 million, compared to $29.005 million in the same period of 2023[28] - Interest expense for the nine months ended September 2024 was $7.118 million, down from $7.875 million in the previous year[28] - Restructuring and other charges for the three months ended September 2024 were $3.369 million, up from $0.709 million in the prior year[28] - Income tax expense for the three months ended September 2024 was $27.018 million, compared to a tax benefit of $(0.097) million in the same period last year[28]