CRSR Corsair Gaming Inc

Delivers 16% Q4 YoY Revenue Growth in Gamer and Creator Peripherals, with 6% Growth in Total FY23 Revenue, and Over 100% Growth in FY23 Adjusted EBITDA

Corsair Gaming, Inc. (Nasdaq: CRSR) (“Corsair” or the “Company”), a leading global provider and innovator of high-performance products for gamers, streamers, content-creators, and gaming PC builders, today announced financial results for the fourth quarter and full year ended December 31, 2023, as well as guidance for 2024.

Fourth Quarter 2023 Select Financial Metrics

• Net revenue was $417.3 million compared to $363.2 million in the third quarter of 2023 and $398.7 million in the fourth quarter of 2022. Gaming Components and Systems segment net revenue was $280.5 million compared to $272.8 million in the third quarter of 2023 and $280.9 million in the fourth quarter of 2022, while Gamer and Creator Peripherals segment net revenue was $136.8 million compared to $90.4 million in the third quarter of 2023 and $117.8 million in the fourth quarter of 2022.
• Net income attributable to common shareholders was $6.2 million, or net income of $0.06 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 and net income of $12.5 million, or net income of $0.12 per diluted share, in the fourth quarter of 2022.
• Adjusted net income was $23.2 million, or net income of $0.22 per diluted share, compared to adjusted net income of $13.4 million, or net income of $0.13 per diluted share in the third quarter of 2023 and adjusted net income of $20.7 million, or net income of $0.20 per diluted share, in the fourth quarter of 2022.
• Adjusted EBITDA was $33.7 million, compared to $23.0 million in the third quarter of 2023, and $32.0 million in the fourth quarter of 2022.
• Cash and restricted cash was $178.6 million as of December 31, 2023.

Full Year 2023 Select Financial Metrics

• Net revenue was $1,459.9 million in 2023 compared to $1,375.1 million in 2022. Gaming Components and Systems segment net revenue was $1,065.0 million in 2023 compared to $937.3 million in 2022, while Gamer and Creator Peripherals segment net revenue was $394.9 million in 2023 compared to $437.8 million in 2022.
• Net income attributable to common shareholders was $3.2 million, or net income of $0.03 per diluted share for the full year 2023, compared to a net loss of $60.9 million, or a net loss of $0.63 per diluted share, for the full year 2022.
• Adjusted net income was $58.3 million, or net income of $0.55 per diluted share for the full year 2023, compared to adjusted net income of $18.4 million, or net income of $0.18 per diluted share for the full year 2022.
• Adjusted EBITDA was $95.1 million in 2023, compared to $46.5 million for the full year 2022.

Definitions of the non-GAAP financial measures used in this press release and reconciliations of such measures to their nearest GAAP equivalents are included below under the heading “Use and Reconciliation of Non-GAAP Financial Measures.”

Andy Paul, Chief Executive Officer of Corsair, stated, “I am really excited to see that the gaming market is now showing signs of growth again after relaxing back from the surge that occurred during the pandemic. Consumer spending during the recent holiday period was better than we expected and we see that the high inventory levels at our competitors that were causing heavy discounting are generally back to normal. We saw a 16% year over year increase in our Gamer and Creator Peripherals segment for Q4 2023, which is a reflection of the market returning to growth and also Corsair gaining market share.”

“I am also very pleased with our overall performance for the full year. In Q1 2023, we were still lapping a quarter where most people were working at home but for the last three quarters of 2023 we saw overall growth of 11%. We launched some really exciting products during 2023, and many were sold out during Q4 2023, including our new PC controller, our new Elgato teleprompter, our new headsets and our new line of power supplies. In fact, we were airfreighting many of these products into our hubs during much of Q4 2023 to meet demand. We also launched our Elgato Marketplace, which sells apps and plug-ins for our Stream Deck, and has products from both us and third party developers. This is doing better than expected and already 35% of the Stream Deck installed base have opened accounts on the marketplace website.”

“The gaming hardware market in the United States and Europe, where we have most of our business, is now at a level between 30% and 50% bigger than pre-pandemic years. Looking forward to 2024, we expect that the Gaming Components and Systems segment will be similar to last year since we are mid-cycle for new GPUs and the next big GPU launch and demand surge is likely to be 2025. For the Gamer and Creator Peripherals segment, we expect significant growth, especially from new products we recently launched and more that we are about to launch. In addition, we plan to enter two new product categories in 2024, sim racing and mobile controllers. We expect the overall gaming market to now enter a new growth phase as we enter a refresh cycle from the surge of consumer spending that occurred during the shelter at home years. This plus our anticipated market share gains should help to position us over the next few years, as we strive to reach over $2 billion in revenue with double-digit percentage EBITDA margins.”

Michael G. Potter, Chief Financial Officer of Corsair, stated, “We more than doubled our adjusted EBITDA to $95.1 million from $46.5 million in 2022, and turned profitable on a GAAP basis with earnings per share to $0.03 per diluted share from a loss of $0.63 per diluted share in 2022, with adjusted earnings per share tripling to $0.55 per diluted share from $0.18 per diluted share in 2022. Gross margin increased by 310 basis points to 24.7 percent for 2023 from 21.6 percent in 2022, with our Gamer and Creator Peripherals segment gross margin increasing 510 basis points to 33.7 percent from 28.6 percent in 2022, and our Gaming Components and Systems gross margin increasing 300 basis points to 21.3 percent from 18.3 percent in 2022. We benefitted from demand for new products, reduced promotional activities and improved inventory levels as we continued to work towards our long-term target gross margin levels. With regard to inventory, we have returned to target levels in both the channel and our warehouses, and we are actually light in some categories, including some of our more recent product launches. We expect to build on this positive momentum in 2024, with a strong demand outlook for our new products, improved profitability and continued growth in adjusted EBITDA. Our strong cash position and our reduction of face value of debt to below $200 million positions us well to continue to invest in our business.”

Financial Outlook

For the full year 2024, Corsair’s financial outlook reflects cautious optimism. Corsair expects revenue growth 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.

• Net revenue to be in the range of $1.45 billion to $1.60 billion.
• Adjusted operating income to be in the range of $92 million to $112 million.
• Adjusted EBITDA to be in the range of $105 million to $125 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 Developments

• Further expanded the iCUE LINK Ecosystem, with the introduction of new flagship all-in-one coolers. Answering the DIY PC builders’ call, Corsair’s iCUE LINK H100i, H150i, and H170i LCD AIO coolers come in radiator sizes of 240mm, 360mm and 420mm. Boasting a 2.1-inch IPS LCD screen with a 480 x 480 resolution screen capable of displaying real-time coolant temperatures, images, and animated GIFs. iCUE LINK QX120 and QX140 RGB fans feature 34 individually addressable LEDs.
• Introduced the iCUE LINK Hydro X, an innovative new flagship of the Pump/Reservoir Combo lineup. The iCUE LINK XD5 RGB ELITE LCD features a 2.1-inch IPS LCD screen with a fully customizable display. iCUE LINK XG7 RGB 40-Series GPU Water Blocks, the Hydro X Series is now integrated with the iCUE LINK ecosystem, making building a world-class custom loop easier than ever.
• Unveiled its fastest SSD ever, the MP700 PRO, utilizing the PCIe 5.0 interface to offer sequential read speeds of up 12,400MB/sec and writes of up to 11,800MB/sec. Available with three different cooling options, to ensure users have the best option for their systems. Corsair also launched the MP600 MICRO, a small form factor SSD that’s compatible with the Lenovo Legion Go handheld gaming PC.
• Debuted the K70 CORE RGB mechanical keyboard. Designed with pre-lubricated CORSAIR MLX Red Linear ultra-responsive mechanical switches, the K70 provides a refined playing and typing experience. Two layers of sound dampening foam produce satisfying acoustics and feel, eliminating annoying pings and clacks that take you out of the game, all at a competitive price point and made with 85% post-consumer recycled plastic.
• M75 AIR ultra-lightweight wireless mouse: Weighing just 60g, the new symmetrically shaped M75 AIR offers comfort and control for all grip types, and provides a smooth glide on any playing surface. Precise CORSAIR MARKSMAN 26K DPI optical sensor tracks micro adjustments flawlessly, with a long-lasting battery providing up to 100 hours of use over Bluetooth between charges, and fast charges from 0–100% in 75 minutes.

Conference Call and Webcast Information

Corsair will host a conference call to discuss the fourth quarter and full year 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 1-877-407-0784 (USA) or 1-201-689-8560 (International) with conference ID 13743931. A replay will be available approximately 3 hours after the live call ends on Corsair's Investor Relations website, or through February 20, 2024 by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International), with passcode 13743931.

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 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 market headwinds and tailwinds; its expectations regarding 2024 and 2025; statements regarding new product launches and the entry into new product categories; and 2024 resulting in strong demand for Corsair’s products and improved profitability and continued growth in adjusted EBITDA; its estimated full year 2024 net revenue, adjusted operating income and adjusted EBITDA; and whether and when Corsair will reach revenue over $2 billion with double-digit percentage 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; 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 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 to be 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 and year ended December 31, 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:

• Adjusted operating income (loss), non-GAAP, is determined by adding back to GAAP operating income (loss), the impact from amortization, stock-based compensation, inventory reserve in excess of normal run rate to address overhang in the channel, certain acquisition-related and integration-related costs, acquisition accounting impact related to recognizing acquired inventory at fair value, restructuring costs, non-deferred offering costs and other costs.
• Adjusted net income (loss), non-GAAP, is determined by adding back to GAAP net income (loss), the impact from amortization, stock-based compensation, inventory reserve in excess of normal run rate to address overhang in the channel, certain acquisition-related and integration-related costs, acquisition accounting impact related to recognizing acquired inventory at fair value, restructuring costs, asset impairment charge, non-deferred offering costs and other costs, 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, depreciation, interest expense, net, inventory reserve in excess of normal run rate to address overhang in the channel, certain acquisition-related and integration-related costs, acquisition accounting impact related to recognizing acquired inventory at fair value, restructuring costs, asset impairment charge, non-deferred offering costs, tax expense (benefit), and other costs.

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 December 31,

 

 

Years Ended December 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net revenue

 

$

417,286

 

 

$

398,730

 

 

$

1,459,875

 

 

$

1,375,098

 

Cost of revenue

 

 

314,612

 

 

 

300,873

 

 

 

1,099,612

 

 

 

1,078,466

 

Gross profit

 

 

102,674

 

 

 

97,857

 

 

 

360,263

 

 

 

296,632

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Sales, general and administrative

 

 

73,831

 

 

 

68,476

 

 

 

285,313

 

 

 

284,932

 

Product development

 

 

16,719

 

 

 

15,741

 

 

 

65,261

 

 

 

66,493

 

Total operating expenses

 

 

90,550

 

 

 

84,217

 

 

 

350,574

 

 

 

351,425

 

Operating income (loss)

 

 

12,124

 

 

 

13,640

 

 

 

9,689

 

 

 

(54,793

)

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(4,351

)

 

 

(3,871

)

 

 

(17,420

)

 

 

(9,560

)

Interest income

 

 

1,645

 

 

 

374

 

 

 

6,839

 

 

 

374

 

Other (expense) income, net

 

 

(1,261

)

 

 

(1,583

)

 

 

(2,587

)

 

 

213

 

Total other expense, net

 

 

(3,967

)

 

 

(5,080

)

 

 

(13,168

)

 

 

(8,973

)

Income (loss) before income taxes

 

 

8,157

 

 

 

8,560

 

 

 

(3,479

)

 

 

(63,766

)

Income tax (expense) benefit

 

 

(581

)

 

 

(1,442

)

 

 

2,442

 

 

 

9,820

 

Net income (loss)

 

 

7,576

 

 

 

7,118

 

 

 

(1,037

)

 

 

(53,946

)

Less: Net income attributable to noncontrolling interest

 

 

595

 

 

 

409

 

 

 

1,553

 

 

 

442

 

Net income (loss) attributable to Corsair Gaming, Inc.

 

$

6,981

 

 

$

6,709

 

 

$

(2,590

)

 

$

(54,388

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of net income (loss) per share attributable to common stockholders of Corsair Gaming, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Corsair Gaming, Inc.

 

$

6,981

 

 

$

6,709

 

 

$

(2,590

)

 

$

(54,388

)

Change in redemption value of redeemable noncontrolling interest

 

 

(758

)

 

 

5,794

 

 

 

5,777

 

 

 

(6,536

)

Net income (loss) attributable to common stockholders of Corsair Gaming, Inc.

 

$

6,223

 

 

$

12,503

 

 

$

3,187

 

 

$

(60,924

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders of Corsair Gaming, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.06

 

 

$

0.13

 

 

$

0.03

 

 

$

(0.63

)

Diluted

 

$

0.06

 

 

$

0.12

 

 

$

0.03

 

 

$

(0.63

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

103,058

 

 

 

98,485

 

 

 

102,482

 

 

 

96,280

 

Diluted

 

 

106,220

 

 

 

102,340

 

 

 

106,276

 

 

 

96,280

 

Corsair Gaming, Inc.

Segment Information

(Unaudited, in thousands, except percentages)

 

 

 

Three Months Ended December 31,

 

 

Years Ended December 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Gamer and Creator Peripherals

 

$

136,828

 

 

$

117,832

 

 

$

394,881

 

 

$

437,817

 

Gaming Components and Systems

 

 

280,458

 

 

 

280,898

 

 

 

1,064,994

 

 

 

937,281

 

Total Net Revenue

 

$

417,286

 

 

$

398,730

 

 

$

1,459,875

 

 

$

1,375,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

Gamer and Creator Peripherals

 

$

50,897

 

 

$

39,674

 

 

$

132,982

 

 

$

125,079

 

Gaming Components and Systems

 

 

51,777

 

 

 

58,183

 

 

 

227,281

 

 

 

171,553

 

Total Gross Profit

 

$

102,674

 

 

$

97,857

 

 

$

360,263

 

 

$

296,632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

Gamer and Creator Peripherals

 

 

37.2

%

 

 

33.7

%

 

 

33.7

%

 

 

28.6

%

Gaming Components and Systems

 

 

18.5

%

 

 

20.7

%

 

 

21.3

%

 

 

18.3

%

Total Gross Margin

 

 

24.6

%

 

 

24.5

%

 

 

24.7

%

 

 

21.6

%

Corsair Gaming, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and restricted cash

 

$

178,325

 

 

$

153,827

 

Accounts receivable, net

 

 

253,268

 

 

 

235,656

 

Inventories

 

 

240,172

 

 

 

192,717

 

Prepaid expenses and other current assets

 

 

39,824

 

 

 

40,593

 

Total current assets

 

 

711,589

 

 

 

622,793

 

Restricted cash, noncurrent

 

 

239

 

 

 

233

 

Property and equipment, net

 

 

32,212

 

 

 

34,927

 

Goodwill

 

 

354,705

 

 

 

347,747

 

Intangible assets, net

 

 

188,009

 

 

 

216,255

 

Other assets

 

 

70,709

 

 

 

75,290

 

Total assets

 

$

1,357,463

 

 

$

1,297,245

 

Liabilities

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Debt maturing within one year, net

 

$

12,190

 

 

$

6,495

 

Accounts payable

 

 

239,957

 

 

 

172,033

 

Other liabilities and accrued expenses

 

 

166,340

 

 

 

164,470

 

Total current liabilities

 

 

418,487

 

 

 

342,998

 

Long-term debt, net

 

 

186,006

 

 

 

232,170

 

Deferred tax liabilities

 

 

17,395

 

 

 

18,054

 

Other liabilities, noncurrent

 

 

41,595

 

 

 

48,589

 

Total liabilities

 

 

663,483

 

 

 

641,811

 

Temporary equity

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

15,937

 

 

 

21,367

 

Permanent equity

 

 

 

 

 

 

Corsair Gaming, Inc. stockholders’ equity:

 

 

 

 

 

 

Common stock and additional paid-in capital

 

 

630,652

 

 

 

593,496

 

Retained earnings

 

 

40,410

 

 

 

37,223

 

Accumulated other comprehensive loss

 

 

(3,487

)

 

 

(6,881

)

Total Corsair Gaming, Inc. stockholders’ equity

 

 

667,575

 

 

 

623,838

 

Nonredeemable noncontrolling interest

 

 

10,468

 

 

 

10,229

 

Total permanent equity

 

 

678,043

 

 

 

634,067

 

Total liabilities, temporary equity and permanent equity

 

$

1,357,463

 

 

$

1,297,245

 

Corsair Gaming, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

 

 

 

Three Months Ended December 31,

 

 

Years Ended December 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

7,576

 

 

$

7,118

 

 

$

(1,037

)

 

$

(53,946

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

7,628

 

 

 

5,281

 

 

 

30,873

 

 

 

22,158

 

Depreciation

 

 

3,194

 

 

 

3,033

 

 

 

12,210

 

 

 

10,728

 

Amortization

 

 

9,483

 

 

 

8,871

 

 

 

38,488

 

 

 

42,795

 

Debt issuance costs amortization

 

 

280

 

 

 

124

 

 

 

679

 

 

 

398

 

Deferred income taxes

 

 

1,392

 

 

 

(2,184

)

 

 

(6,332

)

 

 

(21,736

)

Other

 

 

1,490

 

 

 

2,748

 

 

 

3,584

 

 

 

4,469

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

384

 

 

 

(77,517

)

 

 

(17,686

)

 

 

55,845

 

Inventories

 

 

(4,018

)

 

 

56,917

 

 

 

(39,470

)

 

 

111,288

 

Prepaid expenses and other assets

 

 

6,453

 

 

 

8,400

 

 

 

1,902

 

 

 

1,268

 

Accounts payable

 

 

23,863

 

 

 

8,163

 

 

 

62,150

 

 

 

(65,928

)

Other liabilities and accrued expenses

 

 

(632

)

 

 

293

 

 

 

3,792

 

 

 

(40,950

)

Net cash provided by operating activities

 

 

57,093

 

 

 

21,247

 

 

 

89,153

 

 

 

66,389

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of businesses, net of cash acquired

 

 

—

 

 

 

—

 

 

 

(14,220

)

 

 

(19,534

)

Payment of deferred and contingent consideration

 

 

—

 

 

 

(90

)

 

 

—

 

 

 

(185

)

Purchase of property and equipment

 

 

(1,977

)

 

 

(6,465

)

 

 

(12,761

)

 

 

(26,315

)

Investment in available-for-sale convertible note

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,000

)

Net cash used in investing activities

 

 

(1,977

)

 

 

(6,555

)

 

 

(26,981

)

 

 

(47,034

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of debt and debt issuance costs

 

 

(24,750

)

 

 

(5,466

)

 

 

(41,000

)

 

 

(9,483

)

Borrowings from line of credit

 

 

—

 

 

 

75,500

 

 

 

—

 

 

 

701,500

 

Repayments of line of credit

 

 

—

 

 

 

(75,500

)

 

 

—

 

 

 

(701,500

)

Proceeds from public offering, net of underwriting discounts and commissions and other offering costs

 

 

—

 

 

 

81,359

 

 

 

(497

)

 

 

81,359

 

Proceeds from issuance of shares through employee equity incentive plans

 

 

659

 

 

 

2,883

 

 

 

7,449

 

 

 

7,015

 

Payment of taxes related to net share settlement of equity awards

 

 

(91

)

 

 

(133

)

 

 

(1,409

)

 

 

(1,532

)

Dividend paid to noncontrolling interest

 

 

—

 

 

 

(2,107

)

 

 

(980

)

 

 

(4,312

)

Payment of contingent consideration

 

 

—

 

 

 

—

 

 

 

(950

)

 

 

(438

)

Net cash provided by (used in) financing activities

 

 

(24,182

)

 

 

76,536

 

 

 

(37,387

)

 

 

72,609

 

Effect of exchange rate changes on cash

 

 

(140

)

 

 

1,150

 

 

$

(281

)

 

$

(3,284

)

Net increase in cash and restricted cash

 

 

30,794

 

 

 

92,378

 

 

 

24,504

 

 

 

88,680

 

Cash and restricted cash at the beginning of the period

 

 

147,770

 

 

 

61,682

 

 

 

154,060

 

 

 

65,380

 

Cash and restricted cash at the end of the period

 

$

178,564

 

 

$

154,060

 

 

$

178,564

 

 

$

154,060

 

Corsair Gaming, Inc.

GAAP to Non-GAAP Reconciliations 

 

Non-GAAP Operating Income Reconciliations

(Unaudited, in thousands, except percentages)

 

 

 

Three Months Ended December 31,

 

 

Three Months Ended September 30,

 

 

Three Months Ended December 31,

 

 

Years Ended December 31,

 

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating Income (loss) - GAAP

 

$

12,124

 

 

$

(758

)

 

$

13,640

 

 

$

9,689

 

 

$

(54,793

)

Amortization

 

 

9,483

 

 

 

9,507

 

 

 

9,430

 

 

 

38,488

 

 

 

43,354

 

Stock-based compensation

 

 

7,628

 

 

 

7,825

 

 

 

5,281

 

 

 

30,873

 

 

 

22,158

 

Inventory reserve in excess of normal run rate to address overhang in the channel

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,489

 

Acquisition-related and integration-related costs

 

 

1,401

 

 

 

1,386

 

 

 

338

 

 

 

3,561

 

 

 

1,134

 

Acquisition accounting impact related to recognizing acquired inventory at fair value

 

 

561

 

 

 

960

 

 

 

—

 

 

 

1,521

 

 

 

282

 

Restructuring costs

 

 

595

 

 

 

709

 

 

 

628

 

 

 

1,304

 

 

 

2,197

 

Non-deferred offering costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

324

 

Other

 

 

—

 

 

 

—

 

 

 

245

 

 

 

—

 

 

 

441

 

Adjusted Operating Income - Non-GAAP

 

$

31,792

 

 

$

19,629

 

 

$

29,562

 

 

$

85,436

 

 

$

34,586

 

As a % of net revenue - GAAP

 

 

2.9

%

 

 

-0.2

%

 

 

3.4

%

 

 

0.7

%

 

 

-4.0

%

As a % of net revenue - Non-GAAP

 

 

7.6

%

 

 

5.4

%

 

 

7.4

%

 

 

5.9

%

 

 

2.5

%

Corsair Gaming, Inc.

GAAP to Non-GAAP Reconciliations 

 

Non-GAAP Net Income and Net Income Per Share Reconciliations

(Unaudited, in thousands, except per share amounts)

 

 

 

Three Months Ended December 31,

 

 

Three Months Ended September 30,

 

 

Three Months Ended December 31,

 

 

Years Ended December 31,

 

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income (loss) attributable to common stockholders of Corsair Gaming, Inc. (1)

 

$

6,223

 

 

$

(3,079

)

 

$

12,503

 

 

$

3,187

 

 

$

(60,924

)

Less: Change in redemption value of redeemable noncontrolling interest

 

 

(758

)

 

 

—

 

 

 

5,794

 

 

 

5,777

 

 

 

(6,536

)

Net income (loss) attributable to Corsair Gaming, Inc.

 

 

6,981

 

 

 

(3,079

)

 

 

6,709

 

 

 

(2,590

)

 

 

(54,388

)

Add: Net income attributable to noncontrolling interest

 

 

595

 

 

 

193

 

 

 

409

 

 

 

1,553

 

 

 

442

 

Net Income (loss) - GAAP

 

 

7,576

 

 

 

(2,886

)

 

 

7,118

 

 

 

(1,037

)

 

 

(53,946

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization

 

 

9,483

 

 

 

9,507

 

 

 

9,430

 

 

 

38,488

 

 

 

43,354

 

Stock-based compensation

 

 

7,628

 

 

 

7,825

 

 

 

5,281

 

 

 

30,873

 

 

 

22,158

 

Inventory reserve in excess of normal run rate to address overhang in the channel

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,489

 

Acquisition-related and integration-related costs

 

 

1,401

 

 

 

1,386

 

 

 

338

 

 

 

3,561

 

 

 

1,134

 

Acquisition accounting impact related to recognizing acquired inventory at fair value

 

 

561

 

 

 

960

 

 

 

—

 

 

 

1,521

 

 

 

282

 

Restructuring costs

 

 

595

 

 

 

709

 

 

 

628

 

 

 

1,304

 

 

 

2,197

 

Asset impairment charge

 

 

—

 

 

 

—

 

 

 

1,000

 

 

 

—

 

 

 

1,000

 

Non-deferred offering costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

324

 

Other

 

 

—

 

 

 

—

 

 

 

245

 

 

 

—

 

 

 

441

 

Non-GAAP income tax adjustment

 

 

(4,052

)

 

 

(4,137

)

 

 

(3,369

)

 

 

(16,404

)

 

 

(17,984

)

Adjusted Net Income - Non-GAAP

 

$

23,192

 

 

$

13,364

 

 

$

20,671

 

 

$

58,306

 

 

$

18,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

$

0.06

 

 

$

(0.03

)

 

$

0.12

 

 

$

0.03

 

 

$

(0.63

)

Adjusted, Non-GAAP

 

$

0.22

 

 

$

0.13

 

 

$

0.20

 

 

$

0.55

 

 

$

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

106,220

 

 

 

102,863

 

 

 

102,340

 

 

 

106,276

 

 

 

96,280

 

Adjusted, Non-GAAP

 

 

106,220

 

 

 

106,532

 

 

 

102,340

 

 

 

106,276

 

 

 

100,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 December 31,

 

 

Three Months Ended September 30,

 

 

Three Months Ended December 31,

 

 

Years Ended December 31,

 

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net Income (loss) - GAAP

 

$

7,576

 

 

$

(2,886

)

 

$

7,118

 

 

$

(1,037

)

 

$

(53,946

)

Amortization

 

 

9,483

 

 

 

9,507

 

 

 

9,430

 

 

 

38,488

 

 

 

43,354

 

Stock-based compensation

 

 

7,628

 

 

 

7,825

 

 

 

5,281

 

 

 

30,873

 

 

 

22,158

 

Depreciation

 

 

3,194

 

 

 

3,083

 

 

 

3,033

 

 

 

12,210

 

 

 

10,728

 

Interest expense, net of interest income

 

 

2,706

 

 

 

2,529

 

 

 

3,497

 

 

 

10,581

 

 

 

9,186

 

Inventory reserve in excess of normal run rate to address overhang in the channel

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,489

 

Acquisition-related and integration-related costs

 

 

1,401

 

 

 

1,386

 

 

 

338

 

 

 

3,561

 

 

 

1,134

 

Acquisition accounting impact related to recognizing acquired inventory at fair value

 

 

561

 

 

 

960

 

 

 

—

 

 

 

1,521

 

 

 

282

 

Restructuring costs

 

 

595

 

 

 

709

 

 

 

628

 

 

 

1,304

 

 

 

2,197

 

Asset impairment charge

 

 

—

 

 

 

—

 

 

 

1,000

 

 

 

—

 

 

 

1,000

 

Non-deferred offering costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

324

 

Other

 

 

—

 

 

 

—

 

 

 

245

 

 

 

—

 

 

 

441

 

Tax expense (benefit)

 

 

581

 

 

 

(97

)

 

 

1,442

 

 

 

(2,442

)

 

 

(9,820

)

Adjusted EBITDA - Non-GAAP

 

$

33,725

 

 

$

23,016

 

 

$

32,012

 

 

$

95,059

 

 

$

46,527

 

Adjusted EBITDA margin - Non-GAAP

 

 

8.1

%

 

 

6.3

%

 

 

8.0

%

 

 

6.5

%

 

 

3.4

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240213703266/en/

Investor Relations Contact: Ronald van Veen ir@corsair.com 510-578-1407

Media Contact: David Ross david.ross@corsair.com +4411 8208 0542