Corsair Gaming Reports Q3 2024 Financial Results
Corsair Gaming (CRSR) reported Q3 2024 financial results with net revenue of $304.2 million, down 16.2% from Q3 2023. The Gaming Components segment declined to $202.2 million, while Gamer and Creator Peripherals grew to $102.0 million. The company reported a net loss of $58.4 million ($0.56 per share), including a $32.5 million non-cash charge. Adjusted EBITDA was $4.8 million compared to $23.0 million in Q3 2023.
The company maintains its full-year 2024 revenue guidance of $1.25-1.35 billion but revised down its adjusted EBITDA outlook to $40-55 million from previous $60-75 million. The recent Fanatec acquisition is expected to contribute approximately $20 million in EBITDA-neutral revenue in Q4 2024.
Corsair Gaming (CRSR) ha riportato i risultati finanziari per il terzo trimestre del 2024, con un fatturato netto di 304,2 milioni di dollari, in calo del 16,2% rispetto al terzo trimestre del 2023. Il segmento dei Componenti di Gioco è diminuito a 202,2 milioni di dollari, mentre i Periferici per Giocatori e Creatori sono aumentati a 102,0 milioni di dollari. L'azienda ha registrato una perdita netta di 58,4 milioni di dollari (0,56 dollari per azione), inclusa una carica non monetaria di 32,5 milioni di dollari. EBITDA rettificato è stato di 4,8 milioni di dollari rispetto ai 23,0 milioni di dollari del terzo trimestre del 2023.
L'azienda mantiene le previsioni di fatturato per l'intero anno 2024 tra 1,25 e 1,35 miliardi di dollari, ma ha rivisto al ribasso le previsioni per l'EBITDA rettificato a 40-55 milioni di dollari, rispetto ai precedenti 60-75 milioni di dollari. L'acquisizione recente di Fanatec dovrebbe contribuire con circa 20 milioni di dollari in fatturato neutro rispetto all'EBITDA nel quarto trimestre del 2024.
Corsair Gaming (CRSR) reportó los resultados financieros del tercer trimestre de 2024, con ingresos netos de 304,2 millones de dólares, una disminución del 16,2% en comparación con el tercer trimestre de 2023. El segmento de Componentes de Juego cayó a 202,2 millones de dólares, mientras que los Periféricos para Jugadores y Creadores crecieron a 102,0 millones de dólares. La compañía reportó una pérdida neta de 58,4 millones de dólares (0,56 dólares por acción), incluyendo un cargo no monetario de 32,5 millones de dólares. EBITDA ajustado fue de 4,8 millones de dólares en comparación con 23,0 millones de dólares en el tercer trimestre de 2023.
La compañía mantiene su guía de ingresos para todo el año 2024 de 1,25 a 1,35 mil millones de dólares, pero ha revisado a la baja su proyección de EBITDA ajustado a 40-55 millones de dólares desde los anteriores 60-75 millones de dólares. La reciente adquisición de Fanatec se espera que contribuya con aproximadamente 20 millones de dólares en ingresos neutrales de EBITDA en el cuarto trimestre de 2024.
Corsair Gaming (CRSR)는 2024년 3분기 재무 결과를 보고하며 총 수익이 3억 4백 20만 달러로, 2023년 3분기 대비 16.2% 감소했다고 발표했습니다. 게임 컴포넌트 부문은 2억 2백 20만 달러로 줄어들었고, 게이머 및 크리에이터 주변기기는 1억 20만 달러로 성장했습니다. 회사는 순손실이 5천 840만 달러(주당 0.56달러)로, 비현금 비용 3천 250만 달러를 포함했다고 보고했습니다. 조정된 EBITDA는 480만 달러로, 2023년 3분기의 2천 300만 달러와 비교됩니다.
회사는 2024년 전체 연간 수익 전망을 12억 5천만에서 13억 5천만 달러로 유지하지만, 조정된 EBITDA 전망은 이전의 6천만에서 7천 5백만 달러에서 4천만에서 5천 5백만 달러로 하향 조정했습니다. 최근 Fanatec 인수는 2024년 4분기에 약 2천만 달러의 EBITDA 중립 매출에 기여할 것으로 예상됩니다.
Corsair Gaming (CRSR) a publié les résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires net de 304,2 millions de dollars, en baisse de 16,2 % par rapport au troisième trimestre 2023. Le segment des Composants de Jeu a chuté à 202,2 millions de dollars, tandis que les Périphériques pour Joueurs et Créateurs ont augmenté à 102,0 millions de dollars. L'entreprise a enregistré une perte nette de 58,4 millions de dollars (0,56 dollar par action), incluant une charge non monétaire de 32,5 millions de dollars. EBITDA ajusté s'élevait à 4,8 millions de dollars, contre 23,0 millions de dollars au troisième trimestre 2023.
L'entreprise maintient ses prévisions de chiffre d'affaires pour l'année 2024 entre 1,25 et 1,35 milliard de dollars, mais a révisé à la baisse sa prévision d'EBITDA ajusté, passant de 60-75 millions de dollars à 40-55 millions de dollars. La récente acquisition de Fanatec devrait contribuer environ 20 millions de dollars de revenus neutres d'EBITDA au quatrième trimestre 2024.
Corsair Gaming (CRSR) hat die Finanzergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem Nettoumsatz von 304,2 Millionen Dollar, was einem Rückgang von 16,2 % im Vergleich zum dritten Quartal 2023 entspricht. Das Segment der Gaming-Komponenten fiel auf 202,2 Millionen Dollar, während die Gamer- und Creator-Peripheriegeräte auf 102,0 Millionen Dollar zunahmen. Das Unternehmen berichtete von einem Nettoverlust von 58,4 Millionen Dollar (0,56 Dollar pro Aktie), einschließlich einer nicht liquiden Belastung von 32,5 Millionen Dollar. Bereinigtes EBITDA betrug 4,8 Millionen Dollar im Vergleich zu 23,0 Millionen Dollar im dritten Quartal 2023.
Das Unternehmen hält an seiner Umsatzprognose für das Gesamtjahr 2024 von 1,25 bis 1,35 Milliarden Dollar fest, hat jedoch seine Schätzung für das bereinigte EBITDA von zuvor 60-75 Millionen Dollar auf 40-55 Millionen Dollar nach unten korrigiert. Die kürzliche Übernahme von Fanatec wird voraussichtlich zu einem EBITDA-neutralen Umsatz von etwa 20 Millionen Dollar im vierten Quartal 2024 beitragen.
- Gamer and Creator Peripherals segment grew 13% YoY with strong margins of 38.3%
- Strategic acquisition of Fanatec business completed, expanding into Sim Racing market
- Maintained full-year revenue guidance of $1.25-1.35 billion
- Implemented cost-saving measures expected to deliver several million in quarterly savings
- Net revenue decreased 16.2% YoY to $304.2 million
- Net loss widened to $58.4 million from $3.1 million in Q3 2023
- Gaming Components segment revenue declined 25.9% YoY
- Adjusted EBITDA guidance lowered to $40-55 million from $60-75 million
- Adjusted EBITDA decreased 79.1% YoY to $4.8 million
Insights
The Q3 2024 results reveal significant challenges for Corsair Gaming, with
The Fanatec acquisition marks a strategic pivot into sim racing, but near-term integration costs will pressure margins. Cost-cutting measures are being implemented, though carefully avoiding impact on product development. The lowered EBITDA guidance (
The PC gaming hardware market is showing divergent trends - while core components struggle near cycle end, peripherals demonstrate resilience with
Industry headset sales trending above pre-pandemic levels indicate sustained gaming engagement. The expected Q1 2025 NVIDIA GPU launch could catalyze a significant upgrade cycle, particularly given the aging COVID-era builds. However, near-term market conditions remain challenging with inventory adjustments and cautious consumer spending.
Third Quarter 2024 Select Financial Metrics
-
Net revenue was
compared to$304.2 million in the third quarter of 2023, a decrease of$363.2 million 16.2% . Gaming Components and Systems segment net revenue was compared to$202.2 million in the third quarter of 2023, while Gamer and Creator Peripherals segment net revenue was$272.8 million compared to$102.0 million in the third quarter of 2023.$90.4 million -
Net loss attributable to common shareholders was
, or a net loss of$58.4 million per diluted share, compared to a net loss of$0.56 , or a net loss of$3.1 million per diluted share, in the third quarter of 2023.$0.03 -
Adjusted net loss was
, or an adjusted net loss of$30.3 million per diluted share, compared to adjusted net income of$0.29 , or an adjusted net income of$13.4 million per diluted share, in the third quarter of 2023. Loss per share in the current quarter includes a$0.13 non-cash charge for valuation allowance on deferred tax assets.$32.5 million -
Adjusted EBITDA was
, compared to adjusted EBITDA of$4.8 million in the third quarter of 2023.$23.0 million -
Cash and restricted cash were
as of September 30, 2024.$61.6 million
First Nine Months 2024 Select Financial Metrics
-
Net revenue was
compared to$902.8 million in the first nine months of 2023, a decrease of$1,042.6 million 13.4% . Gaming Components and Systems segment net revenue was compared to$599.6 million in the first nine months of 2023, while Gamer and Creator Peripherals segment net revenue was$784.5 million compared to$303.2 million in the first nine months of 2023.$258.1 million -
Net loss attributable to common shareholders was
, or a net loss of$100.5 million per diluted share, compared to a net loss of$0.97 , or a net loss of$3.0 million per diluted share, in the first nine months of 2023.$0.03 -
Adjusted net loss was
, or an adjusted net loss of$27.6 million per diluted share, compared to adjusted net income of$0.27 , or an adjusted net income of$35.1 million per diluted share, in the first nine months of 2023. Loss per share in the first nine months of 2024 includes the above mentioned$0.33 non-cash charge for valuation allowance on deferred tax assets.$32.5 million -
Adjusted EBITDA was
compared to$21.6 million in the first nine months of 2023.$61.3 million
Andy Paul, Chief Executive Officer of Corsair, stated, “Our Gaming Components and Systems business segment continues to show challenging results, as we near the end of the latest technology cycle of GPU cards. We believe the industry is gearing up for a strong 2025, with new Nvidia GPU cards expected to be launched in Q1, and we believe that we will see the beginning of a significant refresh cycle from the COVID lockdown surge of system builds. In the meantime, we remain a market leader in gaming components and systems, and are focused on improving efficiencies where we can across the business and working to increase profitability in our newer products. PC gaming as an activity continues to grow, and we can see that from the industry reports of headset sales, which are substantially higher than pre-pandemic levels, and are now showing growth from last year. We continue to gain positive momentum in our Gamer and Creator Peripherals segment, with
Michael G. Potter, Chief Financial Officer of Corsair, stated, “We were able to use our strong balance sheet to complete the Fanatec business acquisition, which we expect will be a significant long-term growth driver similar to what we have achieved with other highly successful segment leading acquisitions we have previously integrated and grown. We also increased our investment in our majority owned, key supplier for our industry leading Stream Deck family of products, which has helped us to achieve higher margins in one of our fastest growing product areas. We believe that Q2 through Q3 2024 was the trough for revenue and margins for our Gaming Components and Systems segment and we are seeing progress towards a recovery in Q4 2024. We exited the quarter with a healthy cash position and our revolver fully available. This is a result of our focus on ensuring we could invest in growth opportunities, while also reducing debt in a steady manner. In reaction to this year’s slower than expected recovery industrywide, we have taken additional cost saving actions, including a targeted workforce reduction to better align our resources with the current business environment. With these cost saving actions, we made deliberate decisions to not impact product development or revenue generating areas so that we can meet higher anticipated demand when the new GPUs are released to the market. We expect our cost saving measures to result in several millions of dollars of savings per quarter, which will start to ramp in Q4 2024. We also expect to steadily improve EBITDA margins as we return to a path to hit high single digits there.”
Updated 2024 Financial Outlook
Corsair updated its financial outlook for the full year 2024. The Company continues to expect revenue to improve through 2024, with a further improvement in adjusted EBITDA led by an additional improvement in margin, stabilized shipping costs and continued tight operating expense controls.
-
The Company reiterated its expectation for revenue for the full year 2024 to be in the range of
to$1.25 billion , including approximately$1.35 billion of EBITDA-neutral revenue in Q4 2024 from its recent Fanatec acquisition.$20 million -
Adjusted operating income is now expected to be in the range of
to$28 million , compared to$43 million to$48 million previously.$63 million -
Adjusted EBITDA is now expected to be in the range of
to$40 million , compared to$55 million to$60 million previously.$75 million
Certain non-GAAP measures included in our financial outlook were not reconciled to the comparable GAAP financial measures because the GAAP measures are not accessible on a forward-looking basis. We are unable to reconcile these forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable efforts because we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures. Such items may include stock-based compensation charges, amortization, and other items. The unavailable information could have a significant impact on our GAAP financial results.
The foregoing forward-looking statements reflect our expectations as of today’s date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. We do not intend to update our financial outlook until our next quarterly results announcement.
Recent Product Developments
- Acquisition Moves Corsair into Sim Racing’s Pole Position: Closed the acquisition of the Fanatec Sim Racing brand and all associated personnel, in an asset purchase from Endor AG, creating a leading end-to-end premium Sim Racing product line. The Fanatec Sim Racing product line is known for setting the gold standard for excellence in force feedback steering wheels and wheelbases, pedals, shifters and other accessories for PlayStation, Xbox, and PC-based racing simulators, which fully complements Corsair’s Sim Racing chassis, Gaming PCs, Gaming and Streaming Peripherals, and Monitors.
- Multi-Year Collaboration with Activision: Corsair released the first products in its multi-year, full cross-brand collaboration with the critically acclaimed Call of Duty franchise. This powerful new integration sees two of the world’s best-known gaming brands come together for the first time with the collaboration extending across multiple product categories at Corsair including Drop, Elgato, ORIGIN PC and SCUF Gaming.
- Apple Partnership: Apple will be making a custom-made Corsair gaming keyboard and mouse available in its stores for the upcoming 2024 holiday season and continuing into 2025.
- Launches Stream Deck for Professional Broadcasters: Developed in collaboration with Bitfocus, pioneers in professional broadcast software, Corsair’s new, professional-grade Stream Deck Studio is positioned to redefine how professional broadcasters interact with their tools. The hyper customizable Stream Deck Studio was designed with a sleek 19-inch console with 32 customizable LCD keys and two customizable rotary dials, and slots seamlessly into universal studio racks.
- Expands Award-Winning VIRTUOSO Gaming Headset Family: Corsair launched the new VIRTUOSO MAX Headset with cutting-edge audio technology for spectacularly clear, precise audio and ultra-immersive gaming. Available in both PC and Xbox versions, with active noise cancellation and Dolby Atmos®.
Conference Call and Webcast Information
Corsair will host a conference call to discuss the third quarter 2024 financial results today at 2:00 p.m. Pacific Time. The conference call will be accessible on Corsair’s Investor Relations website at https://ir.corsair.com, or by dialing 1-844-481-2518 (
About Corsair Gaming
Corsair (Nasdaq: CRSR) is a leading global developer and manufacturer of high-performance products and technology for gamers, content creators, and PC enthusiasts. From award-winning PC components and peripherals, to premium streaming equipment and smart ambient lighting, Corsair delivers a full ecosystem of products that work together to enable everyone, from casual gamers to committed professionals, to perform at their very best. Corsair also sells products under its Fanatec brand, the leading end-to-end premium Sim Racing product line; Elgato brand, which provides premium studio equipment and accessories for content creators; SCUF Gaming brand, which builds custom-designed controllers for competitive gamers; Drop, the leading community-driven mechanical keyboard brand; and ORIGIN PC brand, a builder of custom gaming and workstation desktop PCs.
Forward Looking Statements
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, Corsair’s expectations regarding our anticipated full year 2024 financial results; market headwinds and tailwinds, including its expectations regarding the gaming market’s continued growth such as its potential for strong growth in 2025; statements regarding new product launches, the entry into new product categories and demand for new products; its ability to successfully close and integrate acquisitions and expectations regarding the growth of these acquisitions as well as their estimated impact on the Company’s financial results in future periods; statements regarding the size of this markets and segments in the future; the impact of the Company’s cost-saving measures and the timing and benefits, if any, the Company may realize as a result of these measures; and statements regarding the Company’s future EBITDA margins. Forward-looking statements are based on our management’s beliefs, as well as assumptions made by, and information currently available to them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: current macroeconomic conditions, including the impacts of high inflation and risk of recession, on demand for our products, consumer confidence and financial markets generally; the lingering impacts and future outbreaks of the COVID-19 pandemic and its impacts on our operations and the operations of our manufacturers, retailers and other partners, as well as its impacts on the economy overall, including capital markets; our ability to build and maintain the strength of our brand among gaming and streaming enthusiasts and our ability to continuously develop and successfully market new products and improvements to existing products; the introduction and success of new third-party high-performance computer hardware, particularly graphics processing units and central processing units as well as sophisticated new video games; fluctuations in operating results; the risk that we are not able to compete with competitors and/or that the gaming industry, including streaming and esports, does not grow as expected or declines; the loss or inability to attract and retain key management; the impacts from geopolitical events and unrest; delays or disruptions at our or third-parties’ manufacturing and distribution facilities; the risk that we are not able to successfully identify and close acquisitions, as well as integrate any companies or assets we have acquired or may acquire; currency exchange rate fluctuations or international trade disputes resulting in our products becoming relatively more expensive to our overseas customers or resulting in an increase in our manufacturing costs; and the other factors described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”) and our subsequent filings with the SEC. Copies of each filing may be obtained from us or the SEC. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. Our results for the quarter ended September 30, 2024 are also not necessarily indicative of our operating results for any future periods.
Use and Reconciliation of Non-GAAP Financial Measures
To supplement the financial results presented in accordance with GAAP, this earnings release presents certain non-GAAP financial information, including adjusted operating income (loss), adjusted net income (loss), adjusted net income (loss) per diluted share and adjusted EBITDA. These are important financial performance measures for us, but are not financial measures as defined by GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use adjusted operating income (loss), adjusted net income (loss), adjusted net income (loss) per share and adjusted EBITDA to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude in such non-GAAP measures. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to the key financial metrics used by our management in our financial and operational decision-making. We also present these non-GAAP financial measures because we believe investors, analysts and rating agencies consider it useful in measuring our ability to meet our debt service obligations.
Our use of these terms may vary from that of others in our industry. These non-GAAP financial measures should not be considered as an alternative to net revenue, operating income (loss), net income (loss), cash provided by operating activities, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these measures to the most directly comparable GAAP financial measures are presented in the attached schedules.
We calculate these non-GAAP financial measures as follows:
- Adjusted operating income (loss), non-GAAP, is determined by adding back to GAAP operating income (loss), the impact from amortization, stock-based compensation, one-time costs related to legal and other matters, acquisition and related integration costs, restructuring and other charges, and acquisition accounting impact related to recognizing acquired inventory at fair value.
- Adjusted net income (loss), non-GAAP, is determined by adding back to GAAP net income (loss), the impact from amortization, stock-based compensation, one-time costs related to legal and other matters, acquisition and related integration costs, restructuring and other charges, acquisition accounting impact related to recognizing acquired inventory at fair value, and the related tax effects of each of these adjustments.
- Adjusted net income (loss) per diluted share, non-GAAP, is determined by dividing adjusted net income (loss), non-GAAP by the respective weighted average shares outstanding, inclusive of the impact of other dilutive securities.
- Adjusted EBITDA is determined by adding back to GAAP net income (loss), the impact from amortization, stock-based compensation, one-time costs related to legal and other matters, depreciation, interest expense, net, acquisition and related integration costs, restructuring and other charges, acquisition accounting impact related to recognizing acquired inventory at fair value, and tax expense (benefit).
We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures.
Corsair Gaming, Inc. Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share amounts) |
||||||||||||||||
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Three Months Ended
|
|
|
Nine Months Ended
|
|
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|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net revenue |
|
$ |
304,199 |
|
|
$ |
363,193 |
|
|
$ |
902,756 |
|
|
$ |
1,042,589 |
|
Cost of revenue |
|
|
234,538 |
|
|
|
273,840 |
|
|
|
683,371 |
|
|
|
785,000 |
|
Gross profit |
|
|
69,661 |
|
|
|
89,353 |
|
|
|
219,385 |
|
|
|
257,589 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales, general and administrative |
|
|
74,072 |
|
|
|
74,000 |
|
|
|
224,677 |
|
|
|
211,482 |
|
Product development |
|
|
16,533 |
|
|
|
16,111 |
|
|
|
50,585 |
|
|
|
48,542 |
|
Total operating expenses |
|
|
90,605 |
|
|
|
90,111 |
|
|
|
275,262 |
|
|
|
260,024 |
|
Operating loss |
|
|
(20,944 |
) |
|
|
(758 |
) |
|
|
(55,877 |
) |
|
|
(2,435 |
) |
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(3,011 |
) |
|
|
(4,271 |
) |
|
|
(10,138 |
) |
|
|
(13,069 |
) |
Interest income |
|
|
297 |
|
|
|
1,742 |
|
|
|
3,020 |
|
|
|
5,194 |
|
Other income (expense), net |
|
|
(910 |
) |
|
|
304 |
|
|
|
(1,887 |
) |
|
|
(1,326 |
) |
Total other expense, net |
|
|
(3,624 |
) |
|
|
(2,225 |
) |
|
|
(9,005 |
) |
|
|
(9,201 |
) |
Loss before income taxes |
|
|
(24,568 |
) |
|
|
(2,983 |
) |
|
|
(64,882 |
) |
|
|
(11,636 |
) |
Income tax benefit (expense) |
|
|
(27,018 |
) |
|
|
97 |
|
|
|
(21,240 |
) |
|
|
3,023 |
|
Net loss |
|
|
(51,586 |
) |
|
|
(2,886 |
) |
|
|
(86,122 |
) |
|
|
(8,613 |
) |
Less: Net income attributable to noncontrolling interest |
|
|
122 |
|
|
|
193 |
|
|
|
1,345 |
|
|
|
958 |
|
Net loss attributable to Corsair Gaming, Inc. |
|
$ |
(51,708 |
) |
|
$ |
(3,079 |
) |
|
$ |
(87,467 |
) |
|
$ |
(9,571 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Calculation of net loss per share attributable to common stockholders of Corsair Gaming, Inc.: |
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|
|
|
|
|
|
|
|
|
|
||||
Net loss attributable to Corsair Gaming, Inc. |
|
$ |
(51,708 |
) |
|
$ |
(3,079 |
) |
|
$ |
(87,467 |
) |
|
$ |
(9,571 |
) |
Change in redemption value of redeemable noncontrolling interest |
|
|
(6,684 |
) |
|
|
— |
|
|
|
(13,044 |
) |
|
|
6,535 |
|
Net loss attributable to common stockholders of Corsair Gaming, Inc. |
|
$ |
(58,392 |
) |
|
$ |
(3,079 |
) |
|
$ |
(100,511 |
) |
|
$ |
(3,036 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share attributable to common stockholders of Corsair Gaming, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.56 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.03 |
) |
Diluted |
|
$ |
(0.56 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.03 |
) |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
104,397 |
|
|
|
102,863 |
|
|
|
103,974 |
|
|
|
102,288 |
|
Diluted |
|
|
104,397 |
|
|
|
102,863 |
|
|
|
103,974 |
|
|
|
102,288 |
|
Corsair Gaming, Inc. Segment Information (Unaudited, in thousands, except percentages) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gamer and Creator Peripherals |
|
$ |
101,966 |
|
|
$ |
90,356 |
|
|
$ |
303,168 |
|
|
$ |
258,053 |
|
Gaming Components and Systems |
|
|
202,233 |
|
|
|
272,837 |
|
|
|
599,588 |
|
|
|
784,536 |
|
Total Net revenue |
|
$ |
304,199 |
|
|
$ |
363,193 |
|
|
$ |
902,756 |
|
|
$ |
1,042,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gamer and Creator Peripherals |
|
$ |
39,032 |
|
|
$ |
29,928 |
|
|
$ |
118,374 |
|
|
$ |
82,085 |
|
Gaming Components and Systems |
|
|
30,629 |
|
|
|
59,425 |
|
|
|
101,011 |
|
|
|
175,504 |
|
Total Gross Profit |
|
$ |
69,661 |
|
|
$ |
89,353 |
|
|
$ |
219,385 |
|
|
$ |
257,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gamer and Creator Peripherals |
|
|
38.3 |
% |
|
|
33.1 |
% |
|
|
39.0 |
% |
|
|
31.8 |
% |
Gaming Components and Systems |
|
|
15.1 |
% |
|
|
21.8 |
% |
|
|
16.8 |
% |
|
|
22.4 |
% |
Total Gross Margin |
|
|
22.9 |
% |
|
|
24.6 |
% |
|
|
24.3 |
% |
|
|
24.7 |
% |
Corsair Gaming, Inc. Condensed Consolidated Balance Sheets (Unaudited, in thousands) |
||||||||
|
|
September 30,
|
|
|
December 31,
|
|
||
|
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and restricted cash |
|
$ |
61,361 |
|
|
$ |
178,325 |
|
Accounts receivable, net |
|
|
178,102 |
|
|
|
253,268 |
|
Inventories |
|
|
293,005 |
|
|
|
240,172 |
|
Prepaid expenses and other current assets |
|
|
39,085 |
|
|
|
39,824 |
|
Total current assets |
|
|
571,553 |
|
|
|
711,589 |
|
Restricted cash, noncurrent |
|
|
245 |
|
|
|
239 |
|
Property and equipment, net |
|
|
32,125 |
|
|
|
32,212 |
|
Goodwill |
|
|
357,520 |
|
|
|
354,705 |
|
Intangible assets, net |
|
|
175,387 |
|
|
|
188,009 |
|
Other assets |
|
|
65,836 |
|
|
|
70,709 |
|
Total assets |
|
$ |
1,202,666 |
|
|
$ |
1,357,463 |
|
Liabilities |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Debt maturing within one year, net |
|
$ |
12,223 |
|
|
$ |
12,190 |
|
Accounts payable |
|
|
190,600 |
|
|
|
239,957 |
|
Other liabilities and accrued expenses |
|
|
158,301 |
|
|
|
166,340 |
|
Total current liabilities |
|
|
361,124 |
|
|
|
418,487 |
|
Long-term debt, net |
|
|
164,993 |
|
|
|
186,006 |
|
Deferred tax liabilities |
|
|
8,388 |
|
|
|
17,395 |
|
Other liabilities, noncurrent |
|
|
55,290 |
|
|
|
41,595 |
|
Total liabilities |
|
|
589,795 |
|
|
|
663,483 |
|
Temporary equity |
|
|
|
|
|
|
||
Redeemable noncontrolling interest |
|
|
14,387 |
|
|
|
15,937 |
|
Permanent equity |
|
|
|
|
|
|
||
Corsair Gaming, Inc. stockholders’ equity: |
|
|
|
|
|
|
||
Common stock and additional paid-in capital |
|
|
659,905 |
|
|
|
630,652 |
|
(Accumulated deficit) retained earnings |
|
|
(60,101 |
) |
|
|
40,410 |
|
Accumulated other comprehensive loss |
|
|
(1,320 |
) |
|
|
(3,487 |
) |
Total Corsair Gaming, Inc. stockholders' equity |
|
|
598,484 |
|
|
|
667,575 |
|
Nonredeemable noncontrolling interest |
|
|
— |
|
|
|
10,468 |
|
Total permanent equity |
|
|
598,484 |
|
|
|
678,043 |
|
Total liabilities, temporary equity and permanent equity |
|
$ |
1,202,666 |
|
|
$ |
1,357,463 |
|
Corsair Gaming, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss |
|
$ |
(51,586 |
) |
|
$ |
(2,886 |
) |
|
$ |
(86,122 |
) |
|
$ |
(8,613 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock-based compensation |
|
|
7,424 |
|
|
|
7,825 |
|
|
|
23,125 |
|
|
|
23,245 |
|
Depreciation |
|
|
3,314 |
|
|
|
3,083 |
|
|
|
9,494 |
|
|
|
9,016 |
|
Amortization |
|
|
9,566 |
|
|
|
9,507 |
|
|
|
28,582 |
|
|
|
29,005 |
|
Deferred income taxes, net of valuation allowance |
|
|
28,031 |
|
|
|
(2,025 |
) |
|
|
12,766 |
|
|
|
(7,724 |
) |
Other |
|
|
1,408 |
|
|
|
211 |
|
|
|
2,789 |
|
|
|
2,493 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
(1,561 |
) |
|
|
(31,996 |
) |
|
|
74,258 |
|
|
|
(18,070 |
) |
Inventories |
|
|
16,301 |
|
|
|
(16,110 |
) |
|
|
(9,569 |
) |
|
|
(35,452 |
) |
Prepaid expenses and other assets |
|
|
(7,118 |
) |
|
|
1,036 |
|
|
|
216 |
|
|
|
(4,551 |
) |
Accounts payable |
|
|
10,702 |
|
|
|
12,727 |
|
|
|
(61,316 |
) |
|
|
38,287 |
|
Other liabilities and accrued expenses |
|
|
8,620 |
|
|
|
6,716 |
|
|
|
(13,901 |
) |
|
|
4,424 |
|
Net cash (used in) provided by operating activities |
|
|
25,101 |
|
|
|
(11,912 |
) |
|
|
(19,678 |
) |
|
|
32,060 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition of business, net of cash acquired |
|
|
(43,131 |
) |
|
|
(14,220 |
) |
|
|
(43,131 |
) |
|
|
(14,220 |
) |
Purchase of property and equipment |
|
|
(3,322 |
) |
|
|
(3,327 |
) |
|
|
(8,351 |
) |
|
|
(10,784 |
) |
Purchase of intangible asset |
|
|
— |
|
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
Purchase price adjustment related to business acquisition |
|
|
— |
|
|
|
— |
|
|
|
1,041 |
|
|
|
— |
|
Settlement of bridge Loan receivable |
|
|
12,310 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(34,143 |
) |
|
|
(17,547 |
) |
|
|
(50,541 |
) |
|
|
(25,004 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Repayment of debt |
|
|
(3,125 |
) |
|
|
(5,000 |
) |
|
|
(21,250 |
) |
|
|
(16,250 |
) |
Borrowings from line of credit |
|
|
21,500 |
|
|
|
— |
|
|
|
21,500 |
|
|
|
— |
|
Repayment of line of credit |
|
|
(21,500 |
) |
|
|
— |
|
|
|
(21,500 |
) |
|
|
— |
|
Purchase of additional ownership interest |
|
|
(19,750 |
) |
|
|
— |
|
|
|
(19,750 |
) |
|
|
— |
|
Payment of deferred and contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
(4,942 |
) |
|
|
(950 |
) |
Proceeds from issuance of shares through employee equity incentive plans |
|
|
1,810 |
|
|
|
411 |
|
|
|
5,110 |
|
|
|
6,790 |
|
Payment of taxes related to net share settlement of equity awards |
|
|
(147 |
) |
|
|
(531 |
) |
|
|
(562 |
) |
|
|
(1,318 |
) |
Dividend paid to noncontrolling interest |
|
|
(3,262 |
) |
|
|
(980 |
) |
|
|
(5,222 |
) |
|
|
(980 |
) |
Payment of other offering costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(497 |
) |
Net cash used in financing activities |
|
|
(24,474 |
) |
|
|
(6,100 |
) |
|
|
(46,616 |
) |
|
|
(13,205 |
) |
Effect of exchange rate changes on cash |
|
|
535 |
|
|
|
(683 |
) |
|
|
(123 |
) |
|
|
(141 |
) |
Net decrease in cash and restricted cash |
|
|
(32,981 |
) |
|
|
(36,242 |
) |
|
|
(116,958 |
) |
|
|
(6,290 |
) |
Cash and restricted cash at the beginning of the period |
|
|
94,587 |
|
|
|
184,012 |
|
|
|
178,564 |
|
|
|
154,060 |
|
Cash and restricted cash at the end of the period |
|
$ |
61,606 |
|
|
$ |
147,770 |
|
|
$ |
61,606 |
|
|
$ |
147,770 |
|
Corsair Gaming, Inc. GAAP to Non-GAAP Reconciliations |
||||||||||||||||
Non-GAAP Operating Income Reconciliations (Unaudited, in thousands, except percentages) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Loss - GAAP |
|
$ |
(20,944 |
) |
|
$ |
(758 |
) |
|
$ |
(55,877 |
) |
|
$ |
(2,435 |
) |
Amortization |
|
|
9,567 |
|
|
|
9,507 |
|
|
|
28,583 |
|
|
|
29,005 |
|
Stock-based compensation |
|
|
7,424 |
|
|
|
7,825 |
|
|
|
23,125 |
|
|
|
23,245 |
|
One-time costs related to legal and other matters |
|
|
29 |
|
|
|
— |
|
|
|
7,499 |
|
|
|
— |
|
Acquisition and related integration costs |
|
|
2,281 |
|
|
|
1,386 |
|
|
|
4,660 |
|
|
|
2,160 |
|
Restructuring and other charges |
|
|
3,369 |
|
|
|
709 |
|
|
|
4,935 |
|
|
|
709 |
|
Acquisition accounting impact related to recognizing acquired inventory at fair value |
|
|
695 |
|
|
|
960 |
|
|
|
1,073 |
|
|
|
960 |
|
Adjusted Operating Income - Non-GAAP |
|
$ |
2,421 |
|
|
$ |
19,629 |
|
|
$ |
13,998 |
|
|
$ |
53,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
As a % of net revenue - GAAP |
|
|
-6.9 |
% |
|
|
-0.2 |
% |
|
|
-6.2 |
% |
|
|
-0.2 |
% |
As a % of net revenue - Non-GAAP |
|
|
0.8 |
% |
|
|
5.4 |
% |
|
|
1.6 |
% |
|
|
5.1 |
% |
Corsair Gaming, Inc. GAAP to Non-GAAP Reconciliations |
||||||||||||||||
Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share Reconciliations (Unaudited, in thousands, except per share amounts) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net loss attributable to common stockholders of Corsair Gaming, Inc. (1) |
|
$ |
(58,392 |
) |
|
$ |
(3,079 |
) |
|
$ |
(100,511 |
) |
|
$ |
(3,036 |
) |
Less: Change in redemption value of redeemable noncontrolling interest |
|
|
(6,684 |
) |
|
|
— |
|
|
|
(13,044 |
) |
|
|
6,535 |
|
Net loss attributable to Corsair Gaming, Inc. |
|
|
(51,708 |
) |
|
|
(3,079 |
) |
|
|
(87,467 |
) |
|
|
(9,571 |
) |
Add: Net income attributable to noncontrolling interest |
|
|
122 |
|
|
|
193 |
|
|
|
1,345 |
|
|
|
958 |
|
Net Loss - GAAP |
|
|
(51,586 |
) |
|
|
(2,886 |
) |
|
|
(86,122 |
) |
|
|
(8,613 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization |
|
|
9,567 |
|
|
|
9,507 |
|
|
|
28,583 |
|
|
|
29,005 |
|
Stock-based compensation |
|
|
7,424 |
|
|
|
7,825 |
|
|
|
23,125 |
|
|
|
23,245 |
|
One-time costs related to legal and other matters |
|
|
29 |
|
|
|
— |
|
|
|
7,499 |
|
|
|
— |
|
Acquisition and related integration costs |
|
|
2,281 |
|
|
|
1,386 |
|
|
|
4,660 |
|
|
|
2,160 |
|
Restructuring and other charges |
|
|
3,369 |
|
|
|
709 |
|
|
|
4,935 |
|
|
|
709 |
|
Acquisition accounting impact related to recognizing acquired inventory at fair value |
|
|
695 |
|
|
|
960 |
|
|
|
1,073 |
|
|
|
960 |
|
Non-GAAP income tax adjustment |
|
|
(2,031 |
) |
|
|
(4,137 |
) |
|
|
(11,317 |
) |
|
|
(12,352 |
) |
Adjusted Net Income (Loss) - Non-GAAP |
|
$ |
(30,252 |
) |
|
$ |
13,364 |
|
|
$ |
(27,564 |
) |
|
$ |
35,114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP |
|
$ |
(0.56 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.03 |
) |
Adjusted, Non-GAAP |
|
$ |
(0.29 |
) |
|
$ |
0.13 |
|
|
$ |
(0.27 |
) |
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding - Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP |
|
|
104,397 |
|
|
|
102,863 |
|
|
|
103,974 |
|
|
|
102,288 |
|
Adjusted, Non-GAAP |
|
|
104,397 |
|
|
|
106,532 |
|
|
|
103,974 |
|
|
|
106,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Numerator for calculating net income (loss) per share-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
Corsair Gaming, Inc. GAAP to Non-GAAP Reconciliations |
||||||||||||||||
Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net Loss - GAAP |
|
$ |
(51,586 |
) |
|
$ |
(2,886 |
) |
|
$ |
(86,122 |
) |
|
$ |
(8,613 |
) |
Amortization |
|
|
9,567 |
|
|
|
9,507 |
|
|
|
28,583 |
|
|
|
29,005 |
|
Stock-based compensation |
|
|
7,424 |
|
|
|
7,825 |
|
|
|
23,125 |
|
|
|
23,245 |
|
One-time costs related to legal and other matters |
|
|
29 |
|
|
|
— |
|
|
|
7,499 |
|
|
|
— |
|
Depreciation |
|
|
3,314 |
|
|
|
3,083 |
|
|
|
9,494 |
|
|
|
9,016 |
|
Interest expense, net of interest income |
|
|
2,714 |
|
|
|
2,529 |
|
|
|
7,118 |
|
|
|
7,875 |
|
Acquisition and related integration costs |
|
|
2,281 |
|
|
|
1,386 |
|
|
|
4,660 |
|
|
|
2,160 |
|
Restructuring and other charges |
|
|
3,369 |
|
|
|
709 |
|
|
|
4,935 |
|
|
|
709 |
|
Acquisition accounting impact related to recognizing acquired inventory at fair value |
|
|
695 |
|
|
|
960 |
|
|
|
1,073 |
|
|
|
960 |
|
Income tax (benefit) expense |
|
|
27,018 |
|
|
|
(97 |
) |
|
|
21,240 |
|
|
|
(3,023 |
) |
Adjusted EBITDA - Non-GAAP |
|
$ |
4,825 |
|
|
$ |
23,016 |
|
|
$ |
21,605 |
|
|
$ |
61,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA margin - Non-GAAP |
|
|
1.6 |
% |
|
|
6.3 |
% |
|
|
2.4 |
% |
|
|
5.9 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106011577/en/
Investor Relations Contact:
Ronald van Veen
ir@corsair.com
510-578-1407
Media Contact:
David Ross
david.ross@corsair.com
+4411 8208 0542
Source: Corsair Gaming, Inc.
FAQ
What was Corsair Gaming's (CRSR) revenue in Q3 2024?
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