We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Corsair Gaming Inc | NASDAQ:CRSR | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 11.19 | 11.14 | 11.31 | 118 | 13:53:05 |
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, 2023, and updated its financial outlook for the full year 2023.
Third Quarter 2023 Select Financial Metrics
First Nine Months 2023 Select Financial Metrics
Andy Paul, Chief Executive Officer of Corsair, stated, “We are very pleased to see the continued year-over-year revenue growth and improvement in profitability both for the quarter and year to date. Sales of our core peripherals products have stabilized and are now starting to grow again as our new products gain traction. The robust and successful release of a steady stream of popular new game titles in 2023 is further spurring demand.
Several new key product launches are having an immediate effect on revenue. Our K70 line of keyboards has been refreshed with products that use our own range of switches, and we also released several new higher-end wireless gaming headsets and mice. Our long awaited Elgato Marketplace was just released, where our large installed base of Stream Deck users can buy apps and plug ins from many third-party developers, as well as our own creators. We also launched a new PC controller, the Scuf Envision, a console style controller (for PC use only) and has many additional programmable inputs, which bridges the gap between traditional controllers and a conventional keyboard and mouse. We believe that these types of product launches will help us continue to grow market share as we focus on the needs of competitive gamers.”
Michael G. Potter, Chief Financial Officer of Corsair, stated, “We continued the substantial year-over-year financial improvement that started in the first half of the year. Revenue, gross margin, and adjusted EBITDA all improved over the prior year with very encouraging gross margin recovery in our core peripherals products. We further reduced debt in Q3, and we continue to expect liquidity to remain excellent for the rest of 2023 allowing us to be flexible as opportunities present themselves. Our results include the impact of our recent acquisition of the assets of Drop. We expect to start realizing revenue and cost benefits from our Drop integration efforts early in 2024.”
Financial Outlook
Corsair is updating its outlook for the full year 2023, with tightened ranges. The Company expects revenue growth on a year-over-year basis, despite a softer economic environment as compared to 2022. Corsair continues to expect an improvement for the full year 2023 in adjusted EBITDA led by an improvement in margin, normalized shipping costs, and continued tight operating expense controls. This update includes the impact of the Company’s recent acquisition of the assets of Drop.
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 Developments
Conference Call and Webcast Information
Corsair will host a conference call to discuss the third quarter 2023 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 1-844-825-9789 (USA) or 1-412-317-5180 (International) with conference ID 10183764. A replay will be available approximately 3 hours after the live call ends on Corsair's Investor Relations website, or through November 14, 2023 by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International), with passcode 10183764.
About Corsair Gaming, Inc.
CORSAIR (Nasdaq: CRSR) is a leading global developer and manufacturer of high-performance gear 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 gear under its Elgato brand, which provides premium studio equipment and accessories for content creators, SCUF Gaming brand, which builds custom-designed controllers for competitive gamers, Drop brand, which specializes in personalized keyboard and gaming setup accessories, 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 market headwinds and tailwinds; its expectations regarding 2023; its expectations regarding potential significant revenue and cost opportunities from the integration of Drop’s assets; and its estimated full year 2023 net revenue, adjusted operating income and adjusted EBITDA. 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 gear and improvements to existing gear; 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; our ability to successfully integrate any companies or assets we have acquired or may acquire; currency exchange rate fluctuations or international trade disputes resulting in our gear 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, 2022 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, 2023 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:
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,
2023
2022
2023
2022
Net revenue
$
363,193
$
311,769
$
1,042,589
$
976,368
Cost of revenue
273,840
240,209
785,000
777,593
Gross profit
89,353
71,560
257,589
198,775
Operating expenses:
Sales, general and administrative
74,000
66,932
211,482
216,456
Product development
16,111
15,616
48,542
50,752
Total operating expenses
90,111
82,548
260,024
267,208
Operating loss
(758
)
(10,988
)
(2,435
)
(68,433
)
Other (expense) income:
Interest expense, net
(2,529
)
(2,734
)
(7,875
)
(5,689
)
Other (expense) income, net
304
1,662
(1,326
)
1,796
Total other expense, net
(2,225
)
(1,072
)
(9,201
)
(3,893
)
Loss before income taxes
(2,983
)
(12,060
)
(11,636
)
(72,326
)
Income tax benefit
97
6,115
3,023
11,262
Net loss
(2,886
)
(5,945
)
(8,613
)
(61,064
)
Less: Net income attributable to noncontrolling interest
193
266
958
33
Net loss attributable to Corsair Gaming, Inc.
$
(3,079
)
$
(6,211
)
$
(9,571
)
$
(61,097
)
Calculation of net loss per share attributable to common stockholders of Corsair Gaming, Inc.:
Net loss attributable to Corsair Gaming, Inc.
$
(3,079
)
$
(6,211
)
$
(9,571
)
$
(61,097
)
Change in redemption value of redeemable noncontrolling interest
—
(2,690
)
6,535
(12,330
)
Net loss attributable to common stockholders of Corsair Gaming, Inc.
$
(3,079
)
$
(8,901
)
$
(3,036
)
$
(73,427
)
Net loss per share attributable to common stockholders of Corsair Gaming, Inc.:
Basic
$
(0.03
)
$
(0.09
)
$
(0.03
)
$
(0.77
)
Diluted
$
(0.03
)
$
(0.09
)
$
(0.03
)
$
(0.77
)
Weighted-average common shares outstanding:
Basic
102,863
95,858
102,288
95,537
Diluted
102,863
95,858
102,288
95,537
Corsair Gaming, Inc.
Segment Information
(Unaudited, in thousands, except percentages)
Three Months Ended September 30,
Nine Months Ended September 30,
2023
2022
2023
2022
Net revenue:
Gamer and Creator Peripherals
$
90,356
$
96,848
$
258,053
$
319,985
Gaming Components and Systems
272,837
214,921
784,536
656,383
Total Net revenue
$
363,193
$
311,769
$
1,042,589
$
976,368
Gross Profit:
Gamer and Creator Peripherals
$
29,928
$
31,790
$
82,085
$
85,405
Gaming Components and Systems
59,425
39,770
175,504
113,370
Total Gross Profit
$
89,353
$
71,560
$
257,589
$
198,775
Gross Margin:
Gamer and Creator Peripherals
33.1
%
32.8
%
31.8
%
26.7
%
Gaming Components and Systems
21.8
%
18.5
%
22.4
%
17.3
%
Total Gross Margin
24.6
%
23.0
%
24.7
%
20.4
%
Corsair Gaming, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
September 30, 2023
December 31, 2022
Assets
Current assets:
Cash and restricted cash
$
147,532
$
153,827
Accounts receivable, net
251,079
235,656
Inventories
235,556
192,717
Prepaid expenses and other current assets
45,206
40,593
Total current assets
679,373
622,793
Restricted cash, noncurrent
238
233
Property and equipment, net
33,070
34,927
Goodwill
354,865
347,747
Intangibles assets, net
196,493
216,255
Other assets
74,110
75,290
Total assets
$
1,338,149
$
1,297,245
Liabilities
Current liabilities:
Debt maturing within one year, net
$
12,130
$
6,495
Accounts payable
215,456
172,033
Other liabilities and accrued expenses
167,136
164,470
Total current liabilities
394,722
342,998
Long-term debt, net
210,573
232,170
Deferred tax liabilities
15,415
18,054
Other liabilities, noncurrent
42,764
48,589
Total liabilities
663,474
641,811
Temporary equity
Redeemable noncontrolling interest
14,647
21,367
Permanent equity
Corsair Gaming, Inc. stockholders’ equity:
Common stock and additional paid-in capital
622,438
593,496
Retained earnings
34,187
37,223
Accumulated other comprehensive loss
(6,699
)
(6,881
)
Total Corsair Gaming, Inc. stockholders' equity
649,926
623,838
Nonredeemable noncontrolling interest
10,102
10,229
Total permanent equity
660,028
634,067
Total liabilities, temporary equity and permanent equity
$
1,338,149
$
1,297,245
Corsair Gaming, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Three Months Ended September 30,
Nine Months Ended September 30,
2023
2022
2023
2022
Cash flows from operating activities:
Net loss
$
(2,886
)
$
(5,945
)
$
(8,613
)
$
(61,064
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation
7,825
5,643
23,245
16,877
Depreciation
3,083
2,546
9,016
7,695
Amortization
9,507
10,352
29,005
33,924
Deferred income taxes
(2,025
)
(8,732
)
(7,724
)
(19,552
)
Other
211
(1,092
)
2,493
1,995
Changes in operating assets and liabilities:
—
Accounts receivable
(31,996
)
13,316
(18,070
)
133,362
Inventories
(16,110
)
43,812
(35,452
)
54,371
Prepaid expenses and other assets
1,036
2,349
(4,551
)
(7,132
)
Accounts payable
12,727
(30,595
)
38,287
(74,091
)
Other liabilities and accrued expenses
6,716
3,437
4,424
(41,243
)
Net cash (used in) provided by operating activities
(11,912
)
35,091
32,060
45,142
Cash flows from investing activities:
Acquisition of business, net of cash acquired
(14,220
)
—
(14,220
)
(19,534
)
Payment of deferred consideration
—
—
—
(95
)
Purchase of property and equipment
(3,327
)
(7,929
)
(10,784
)
(19,850
)
Investment in available-for-sale convertible note
—
—
—
(1,000
)
Net cash used in investing activities
(17,547
)
(7,929
)
(25,004
)
(40,479
)
Cash flows from financing activities:
Repayment of debt and debt issuance costs
(5,000
)
(1,267
)
(16,250
)
(4,017
)
Borrowing from line of credit
—
223,000
—
626,000
Repayment of line of credit
—
(223,000
)
—
(626,000
)
Payment of other offering costs
—
—
(497
)
—
Payment of contingent consideration
—
—
(950
)
(438
)
Proceeds from issuance of shares through employee equity incentive plans
411
624
6,790
4,132
Payment of taxes related to net share settlement of equity awards
(531
)
(402
)
(1,318
)
(1,399
)
Dividends paid to noncontrolling interest
(980
)
(2,205
)
(980
)
(2,205
)
Net cash used in financing activities
(6,100
)
(3,250
)
(13,205
)
(3,927
)
Effect of exchange rate changes on cash
(683
)
(932
)
(141
)
(4,434
)
Net increase (decrease) in cash and restricted cash
(36,242
)
22,980
(6,290
)
(3,698
)
Cash and restricted cash at the beginning of the period
184,012
38,702
154,060
65,380
Cash and restricted cash at the end of the period
$
147,770
$
61,682
$
147,770
$
61,682
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,
2023
2022
2023
2022
Operating Loss - GAAP
$
(758
)
$
(10,988
)
$
(2,435
)
$
(68,433
)
Amortization
9,507
10,352
29,005
33,924
Stock-based compensation
7,825
5,643
23,245
16,877
Inventory reserve in excess of normal run rate to address overhang in the channel
—
—
—
19,489
Restructuring costs
709
81
709
1,569
Acquisition accounting impact related to recognizing acquired inventory at fair value
960
—
960
282
Acquisition-related and integration-related costs
1,386
326
2,160
796
Other
—
493
—
520
Adjusted Operating Income - Non-GAAP
$
19,629
$
5,907
$
53,644
$
5,024
As a % of net revenue - GAAP
-0.2
%
-3.5
%
-0.2
%
-7.0
%
As a % of net revenue - Non-GAAP
5.4
%
1.9
%
5.1
%
0.5
%
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,
2023
2022
2023
2022
Net loss attributable to common stockholders of Corsair Gaming, Inc. (1)
$
(3,079
)
$
(8,901
)
$
(3,036
)
$
(73,427
)
Less: Change in redemption value of redeemable noncontrolling interest
—
(2,690
)
6,535
(12,330
)
Net loss attributable to Corsair Gaming, Inc.
(3,079
)
(6,211
)
(9,571
)
(61,097
)
Add: Net income attributable to noncontrolling interest
193
266
958
33
Net Loss - GAAP
(2,886
)
(5,945
)
(8,613
)
(61,064
)
Adjustments:
Amortization
9,507
10,352
29,005
33,924
Stock-based compensation
7,825
5,643
23,245
16,877
Inventory reserve in excess of normal run rate to address overhang in the channel
—
—
—
19,489
Restructuring costs
709
81
709
1,569
Acquisition accounting impact related to recognizing acquired inventory at fair value
960
—
960
282
Acquisition-related and integration-related costs
1,386
326
2,160
796
Other
—
493
—
520
Non-GAAP income tax adjustment
(4,137
)
(3,343
)
(12,352
)
(14,615
)
Adjusted Net Income (Loss) - Non-GAAP
$
13,364
$
7,607
$
35,114
$
(2,222
)
Diluted net income (loss) per share:
GAAP
$
(0.03
)
$
(0.09
)
$
(0.03
)
$
(0.77
)
Adjusted, Non-GAAP
$
0.13
$
0.08
$
0.33
$
(0.02
)
Weighted-average common shares outstanding - Diluted:
GAAP
102,863
95,858
102,288
95,537
Adjusted, Non-GAAP
106,532
99,769
106,293
95,537
(1) Numerator for calculating net 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,
2023
2022
2023
2022
Net loss - GAAP
$
(2,886
)
$
(5,945
)
$
(8,613
)
$
(61,064
)
Amortization
9,507
10,352
29,005
33,924
Stock-based compensation
7,825
5,643
23,245
16,877
Depreciation
3,083
2,546
9,016
7,695
Interest expense, net
2,529
2,734
7,875
5,689
Inventory reserve in excess of normal run rate to address overhang in the channel
—
—
—
19,489
Restructuring costs
709
81
709
1,569
Acquisition accounting impact related to recognizing acquired inventory at fair value
960
—
960
282
Acquisition-related and integration-related costs
1,386
326
2,160
796
Other
—
493
—
520
Income tax benefit
(97
)
(6,115
)
(3,023
)
(11,262
)
Adjusted EBITDA - Non-GAAP
$
23,016
$
10,115
$
61,334
$
14,515
Adjusted EBITDA margin - Non-GAAP
6.3
%
3.2
%
5.9
%
1.5
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20231107006522/en/
Investor Relations:
Ronald van Veen ir@corsair.com 510-578-1407
Media:
David Ross david.ross@corsair.com +44 11 8208 0542
1 Year Corsair Gaming Chart |
1 Month Corsair Gaming Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions