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Corsair Gaming Reports Q3 2024 Financial Results

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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.

Positive
  • 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
Negative
  • 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 $304.2M revenue marking a 16.2% decline year-over-year. The net loss widened substantially to $58.4M, including a $32.5M non-cash tax charge. The Gaming Components segment shows particular weakness, down 25.9%, though Peripherals grew 12.8%.

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 ($40-55M vs previous $60-75M) suggests continued headwinds, but management expects improvement in 2025 with new NVIDIA GPUs and potential COVID-build refresh cycle.

The PC gaming hardware market is showing divergent trends - while core components struggle near cycle end, peripherals demonstrate resilience with 13% growth and strong 38.3% margins. The Fanatec acquisition strategically positions Corsair in the growing sim racing market, complementing their end-to-end gaming ecosystem.

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.

MILPITAS, Calif.--(BUSINESS WIRE)-- Corsair Gaming, Inc. (Nasdaq: CRSR) (“Corsair” or the “Company”), a leading global provider and innovator of high-performance gear for gamers, streamers, content-creators, and gaming PC builders, today announced financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Select Financial Metrics

  • Net revenue was $304.2 million compared to $363.2 million in the third quarter of 2023, a decrease of 16.2%. Gaming Components and Systems segment net revenue was $202.2 million compared to $272.8 million in the third quarter of 2023, while Gamer and Creator Peripherals segment net revenue was $102.0 million compared to $90.4 million in the third quarter of 2023.
  • Net loss attributable to common shareholders was $58.4 million, or a net loss of $0.56 per diluted share, compared to a net loss of $3.1 million, or a net loss of $0.03 per diluted share, in the third quarter of 2023.
  • Adjusted net loss was $30.3 million, or an adjusted net loss of $0.29 per diluted share, compared to adjusted net income of $13.4 million, or an adjusted net income of $0.13 per diluted share, in the third quarter of 2023. Loss per share in the current quarter includes a $32.5 million non-cash charge for valuation allowance on deferred tax assets.
  • Adjusted EBITDA was $4.8 million, compared to adjusted EBITDA of $23.0 million in the third quarter of 2023.
  • Cash and restricted cash were $61.6 million as of September 30, 2024.

First Nine Months 2024 Select Financial Metrics

  • Net revenue was $902.8 million compared to $1,042.6 million in the first nine months of 2023, a decrease of 13.4%. Gaming Components and Systems segment net revenue was $599.6 million compared to $784.5 million in the first nine months of 2023, while Gamer and Creator Peripherals segment net revenue was $303.2 million compared to $258.1 million in the first nine months of 2023.
  • Net loss attributable to common shareholders was $100.5 million, or a net loss of $0.97 per diluted share, compared to a net loss of $3.0 million, or a net loss of $0.03 per diluted share, in the first nine months of 2023.
  • Adjusted net loss was $27.6 million, or an adjusted net loss of $0.27 per diluted share, compared to adjusted net income of $35.1 million, or an adjusted net income of $0.33 per diluted share, in the first nine months of 2023. Loss per share in the first nine months of 2024 includes the above mentioned $32.5 million non-cash charge for valuation allowance on deferred tax assets.
  • Adjusted EBITDA was $21.6 million compared to $61.3 million in the first nine months of 2023.

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 13% revenue growth on a year over year basis in the third quarter of 2024 and continued strong margins reaching 38.3% in Q3 2024. This is where most of our M&A activity is focused and we were pleased to recently announce that we completed our acquisition of the Fanatec business from Endor AG. We believe this will greatly accelerate our recent entry into the large and rapidly growing Sim Racing market. In addition, with our new Chassis, Gaming PCs, Monitors and Fanatec steering wheels, wheel bases and pedals, we have a full end-to-end solution. We are working hard on the integration of Fanatec, which we expect to have substantially completed by Q2 2025. We expect revenue in Q4 2024 will be EBITDA neutral, but are confident that business will be profitable in 2025, with Fanatec having the potential to drive meaningful revenue growth over the coming years. Overall, we expect 2025 to be a strong year with expected continued growth from Gaming and Sim Racing and a strong rebound from our components product lines.”

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 $1.25 billion to $1.35 billion, including approximately $20 million of EBITDA-neutral revenue in Q4 2024 from its recent Fanatec acquisition.
  • Adjusted operating income is now expected to be in the range of $28 million to $43 million, compared to $48 million to $63 million previously.
  • Adjusted EBITDA is now expected to be in the range of $40 million to $55 million, compared to $60 million to $75 million previously.

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 (USA) or 1-412-317-0546 (International) with conference ID 10193635. A replay will be available approximately 3 hours after the live call ends on Corsair's Investor Relations website, or through November 13, 2024 by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International), with passcode 10193635.

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)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

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.:

 

 

 

 

 

 

 

 

 

 

 

 

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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

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,
2024

 

 

December 31,
2023

 

 

 

 

 

 

 

 

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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

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

%

 

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?

Corsair Gaming's revenue in Q3 2024 was $304.2 million, representing a 16.2% decrease from $363.2 million in Q3 2023.

How much did CRSR lose per share in Q3 2024?

CRSR reported a net loss of $0.56 per diluted share in Q3 2024, compared to a net loss of $0.03 per share in Q3 2023.

What is Corsair Gaming's (CRSR) updated EBITDA guidance for 2024?

Corsair Gaming revised its adjusted EBITDA guidance for 2024 to $40-55 million, down from the previous guidance of $60-75 million.

How did CRSR's Gamer and Creator Peripherals segment perform in Q3 2024?

The Gamer and Creator Peripherals segment grew 13% year-over-year with revenue of $102.0 million and achieved margins of 38.3% in Q3 2024.

Corsair Gaming, Inc.

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