Corsair Gaming Reports Second Quarter 2023 Financial Results; Beats Expectations; Reiterates Full Year Financial Outlook

Aug 3, 2023

MILPITAS, Calif.--(BUSINESS WIRE)--Aug. 3, 2023-- 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 second quarter ended June 30, 2023, and reiterated its financial outlook for the full year 2023.

Second Quarter 2023 Select Financial Metrics

  • Net revenue was $325.4 million compared to $283.9 million in the second quarter of 2022, an increase of 14.6%. Gaming components and systems segment net revenue was $246.7 million compared to $194.9 million in the second quarter of 2022, while Gamer and creator peripherals segment net revenue was $78.8 million compared to $89.0 million in the second quarter of 2022.
  • Net income attributable to common shareholders was $1.1 million, or net income of $0.01 per diluted share, compared to a net loss of $59.4 million, or a net loss of $0.62 per diluted share, in the second quarter of 2022.
  • Adjusted net income was $9.8 million, or net income of $0.09 per diluted share, compared to adjusted net loss of $19.0 million, or a net loss of $0.20 per diluted share, in the second quarter of 2022.
  • Adjusted EBITDA was $17.8 million, compared to a loss of $11.0 million in the second quarter of 2022.
  • Cash and cash equivalents were $184.0 million as of June 30, 2023.

First Half 2023 Select Financial Metrics

  • Net revenue was $679.4 million compared to $664.6 million in the first six months of 2022, an increase of 2.2%. Gaming components and systems segment net revenue was $511.7 million compared to $441.5 million in the first six months of 2022, while Gamer and creator peripherals segment net revenue was $167.7 million compared to $223.1 million in the first six months of 2022.
  • Net income attributable to common shareholders was $43 thousand, or a net income of $0.00 per diluted share, compared to a net loss of $64.5 million, or a net loss of $0.68 per diluted share, in the first six months of 2022.
  • Adjusted net income was $21.8 million, or net income of $0.20 per diluted share, compared to an adjusted net loss of $9.8 million, or a net loss of $0.10 per diluted share, in the first six months of 2022.
  • Adjusted EBITDA was $38.3 million, compared to adjusted EBITDA of $4.4 million in the first six months of 2022.

Andy Paul, Chief Executive Officer of Corsair, stated, “We are very excited with our Q2 and 1H results, showing growth in revenue, gross margin, and profitability compared to last year. The gaming hardware market improved during the second quarter with less discounting from peripheral competitors and continued strong gaming PC build activity driven by new games and new graphics cards launching. Activity in the U.S. and Europe is now on par with mid-2022 and substantially higher than pre-pandemic levels. We continue to take market share in our components and memory segment and improve gross margins in our peripheral categories, with less market discounting occurring. In June, we launched a new ecosystem, iCUE link, which uses special proprietary connectors and protocols so that components can be connected together in series with one cable, and then controlled individually via our iCUE software. We believe this makes gaming system building much easier and should entice more new first-time customers. Following the quarter close, we announced the acquisition of certain assets of Drop, a community-based e-commerce company specializing in customized DIY keyboards and keycaps and many other enthusiast and audiophile products. We expect some significant opportunities and synergies here, both by offering custom versions of our products on the Drop site, as well as introducing some of their popular products into our worldwide channel.”

Michael G. Potter, Chief Financial Officer of Corsair, stated, “We are pleased with the substantial financial improvement led by revenue growth, improved gross margins, steadily improving adjusted EBITDA, and a more balanced inventory. We exceeded our near-term expectations for gross margins, which increased 140 basis points compared to Q1 2023, and increased 1,270 basis points and 580 basis points, compared to Q2 2022 with and without the impact of the Q2 2022 excess inventory reserve, as we benefitted from ongoing improvements in freight costs, as well as new products. We continued to be operational cash flow positive, while investing in inventory to support the expected stronger second half of 2023. Shortly after quarter-end we invested in growth via our acquisition of certain of Drop’s assets. We expect liquidity to remain excellent for the rest of 2023 allowing us to be flexible as opportunities present themselves.”

Financial Outlook

The Company reiterated its outlook for the full year 2023 for revenue to be flat to slightly up in 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.

  • Net revenue for the full year 2023 is expected to be in the range of $1.35 billion to $1.55 billion.
  • Adjusted operating income to be in the range of $75 million to $95 million.
  • Adjusted EBITDA to be in the range of $90 million to $110 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, depreciation and 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

  • Acquired certain assets of Drop, a leading privately held peripheral developer known for its customizable mechanical keyboards and switches, and its millions-member strong enthusiast community. Personalized keyboards that can be modified by the consumer is one of the fastest growing trends in the gaming peripheral space.
  • Enhanced the Company's popular Stream Deck Mobile iOS app, allowing every iPhone or iPad user to use a 6-button app-based Stream Deck for free. A Pro subscription model unlocks further functionality and up to 64 customizable controls, empowering millions of users and making it easier to streamline tasks and save time using the iPhone or iPad they already know and love.
  • Expanded Corsair's award-winning memory line-up with DOMINATOR TITANIUM DDR5 memory. Built using some of the fastest DDR5 ICs alongside patented CORSAIR DHX cooling technology for improved overclocking potential, DOMINATOR TITANIUM continues the DOMINATOR legacy with incredible design and fast performance. Boasting 11 vibrant individually addressable RGB LEDs and a replaceable top-bar, DOMINATOR TITANIUM offers unique customization options, alongside its flagship performance.
  • Delivered increased simplicity to DIY PC builders with the launch of the iCUE LINK Smart Component Ecosystem. iCUE LINK changes the way experienced PC builders and newcomers alike will create their next PC, implementing patent-pending single-cable technology to reduce the time it takes to build and set up a new performance PC by as much as 50% while dramatically reducing cable management and wire clutter.

Conference Call and Webcast Information

Corsair will host a conference call to discuss the second 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 1-888-886-7786 (USA) or 1-416-764-8658 (International) with conference ID 64460612. A replay will be available approximately 3 hours after the live call ends on Corsair's Investor Relations website, or through August 10, 2023 by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International), with passcode 64460612.

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, including its expectations regarding continued growth in the gaming hardware market in the second half of 2023 and its expectations regarding liquidity in the second half of 2023 led by estimated revenue growth and continued margin improvements; its expectations regarding potential significant opportunities and synergies from the acquisition of certain 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 impact of global instability, such as the war between Russia and Ukraine, and any sanctions or other geopolitical tensions that may result therefrom; delays or disruptions at our or third-parties’ manufacturing and distribution facilities; our ability to successfully integrate any companies or assets we 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 June 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:

  • Adjusted operating income (loss), non-GAAP, is determined by adding back to GAAP operating income (loss), the impact from amortization, stock-based compensation, certain acquisition-related and integration-related 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, certain acquisition-related and integration-related 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, certain acquisition-related and integration-related costs, tax 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
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

325,432

 

 

$

283,908

 

 

$

679,396

 

 

$

664,599

 

Cost of revenue

 

 

242,600

 

 

 

247,449

 

 

 

511,160

 

 

 

537,384

 

Gross profit

 

 

82,832

 

 

 

36,459

 

 

 

168,236

 

 

 

127,215

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Sales, general and administrative

 

 

69,953

 

 

 

73,393

 

 

 

137,482

 

 

 

149,524

 

Product development

 

 

15,593

 

 

 

18,026

 

 

 

32,431

 

 

 

35,136

 

Total operating expenses

 

 

85,546

 

 

 

91,419

 

 

 

169,913

 

 

 

184,660

 

Operating loss

 

 

(2,714

)

 

 

(54,960

)

 

 

(1,677

)

 

 

(57,445

)

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(2,518

)

 

 

(1,676

)

 

 

(5,346

)

 

 

(2,955

)

Other (expense) income, net

 

 

(1,134

)

 

 

633

 

 

 

(1,630

)

 

 

134

 

Total other expense, net

 

 

(3,652

)

 

 

(1,043

)

 

 

(6,976

)

 

 

(2,821

)

Loss before income taxes

 

 

(6,366

)

 

 

(56,003

)

 

 

(8,653

)

 

 

(60,266

)

Income tax benefit

 

 

2,287

 

 

 

4,164

 

 

 

2,926

 

 

 

5,147

 

Net loss

 

 

(4,079

)

 

 

(51,839

)

 

 

(5,727

)

 

 

(55,119

)

Less: Net income (loss) attributable to noncontrolling interest

 

 

401

 

 

 

174

 

 

 

765

 

 

 

(233

)

Net loss attributable to Corsair Gaming, Inc.

 

$

(4,480

)

 

$

(52,013

)

 

$

(6,492

)

 

$

(54,886

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to Corsair Gaming, Inc.

 

$

(4,480

)

 

$

(52,013

)

 

$

(6,492

)

 

$

(54,886

)

Change in redemption value of redeemable noncontrolling interest

 

 

5,577

 

 

 

(7,379

)

 

 

6,535

 

 

 

(9,640

)

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

 

$

1,097

 

 

$

(59,392

)

 

$

43

 

 

$

(64,526

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

 

$

(0.62

)

 

$

0.00

 

 

$

(0.68

)

Diluted

 

$

0.01

 

 

$

(0.62

)

 

$

0.00

 

 

$

(0.68

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

102,304

 

 

 

95,467

 

 

 

101,996

 

 

 

95,372

 

Diluted

 

 

106,502

 

 

 

95,467

 

 

 

106,169

 

 

 

95,372

 

             

Corsair Gaming, Inc.

Segment Information

(Unaudited, in thousands, except percentages)

             

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Gamer and Creator Peripherals

 

$

78,755

 

 

$

88,989

 

 

$

167,697

 

 

$

223,137

 

Gaming Components and Systems

 

 

246,677

 

 

 

194,919

 

 

 

511,699

 

 

 

441,462

 

Total Net revenue

 

$

325,432

 

 

$

283,908

 

 

$

679,396

 

 

$

664,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

Gamer and Creator Peripherals

 

$

25,509

 

 

$

10,558

 

 

$

52,157

 

 

$

53,615

 

Gaming Components and Systems

 

 

57,323

 

 

 

25,901

 

 

 

116,079

 

 

 

73,600

 

Total Gross Profit

 

$

82,832

 

 

$

36,459

 

 

$

168,236

 

 

$

127,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

Gamer and Creator Peripherals

 

 

32.4

%

 

 

11.9

%

 

 

31.1

%

 

 

24.0

%

Gaming Components and Systems

 

 

23.2

%

 

 

13.3

%

 

 

22.7

%

 

 

16.7

%

Total Gross Margin

 

 

25.5

%

 

 

12.8

%

 

 

24.8

%

 

 

19.1

%

           

Corsair Gaming, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)

           

 

 

June 30,
2023

 

December 31,
2022

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and restricted cash

 

$

183,776

 

$

153,827

 

Accounts receivable, net

 

 

220,219

 

 

235,656

 

Inventories

 

 

212,538

 

 

192,717

 

Prepaid expenses and other current assets

 

 

45,147

 

 

40,593

 

Total current assets

 

 

661,680

 

 

622,793

 

Restricted cash, noncurrent

 

 

236

 

 

233

 

Property and equipment, net

 

 

33,589

 

 

34,927

 

Goodwill

 

 

348,554

 

 

347,747

 

Intangibles assets, net

 

 

197,689

 

 

216,255

 

Other assets

 

 

77,216

 

 

75,290

 

Total assets

 

$

1,318,964

 

$

1,297,245

 

Liabilities

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Debt maturing within one year, net

 

$

10,251

 

$

6,495

 

Accounts payable

 

 

196,275

 

 

172,033

 

Other liabilities and accrued expenses

 

 

159,209

 

 

164,470

 

Total current liabilities

 

 

365,735

 

 

342,998

 

Long-term debt, net

 

 

217,357

 

 

232,170

 

Deferred tax liabilities

 

 

16,932

 

 

18,054

 

Other liabilities, noncurrent

 

 

45,018

 

 

48,589

 

Total liabilities

 

 

645,042

 

 

641,811

 

Temporary equity

 

 

 

 

 

Redeemable noncontrolling interest

 

 

15,231

 

 

21,367

 

Permanent equity

 

 

 

 

 

Corsair Gaming, Inc. stockholders’ equity:

 

 

 

 

 

Common stock and additional paid-in capital

 

 

614,681

 

 

593,496

 

Retained earnings

 

 

37,266

 

 

37,223

 

Accumulated other comprehensive loss

 

 

(3,761

)

 

(6,881

)

Total Corsair Gaming, Inc. stockholders' equity

 

 

648,186

 

 

623,838

 

Nonredeemable noncontrolling interest

 

 

10,505

 

 

10,229

 

Total permanent equity

 

 

658,691

 

 

634,067

 

Total liabilities, temporary equity and permanent equity

 

$

1,318,964

 

$

1,297,245

  

             

Corsair Gaming, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

             

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,079

)

 

$

(51,839

)

 

$

(5,727

)

 

$

(55,119

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

8,174

 

 

 

6,087

 

 

 

15,420

 

 

 

11,234

 

Depreciation

 

 

3,036

 

 

 

2,545

 

 

 

5,933

 

 

 

5,149

 

Amortization

 

 

9,757

 

 

 

13,434

 

 

 

19,498

 

 

 

23,572

 

Deferred income taxes

 

 

(3,490

)

 

 

(6,742

)

 

 

(5,699

)

 

 

(10,820

)

Other

 

 

2,154

 

 

 

2,434

 

 

 

2,282

 

 

 

3,087

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(697

)

 

 

65,612

 

 

 

13,926

 

 

 

120,046

 

Inventories

 

 

(24,014

)

 

 

11,221

 

 

 

(19,342

)

 

 

10,559

 

Prepaid expenses and other assets

 

 

(4,510

)

 

 

(1,334

)

 

 

(5,587

)

 

 

(9,481

)

Accounts payable

 

 

7,404

 

 

 

(8,188

)

 

 

25,560

 

 

 

(43,496

)

Other liabilities and accrued expenses

 

 

8,411

 

 

 

(17,073

)

 

 

(2,292

)

 

 

(44,680

)

Net cash provided by operating activities

 

 

2,146

 

 

 

16,157

 

 

 

43,972

 

 

 

10,051

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of business, net of cash acquired

 

 

 

 

 

 

 

 

 

 

 

(19,534

)

Payment of deferred consideration

 

 

 

 

 

(95

)

 

 

 

 

 

(95

)

Purchase of property and equipment

 

 

(2,780

)

 

 

(7,556

)

 

 

(7,457

)

 

 

(11,921

)

Investment in available-for-sale convertible note

 

 

 

 

 

(1,000

)

 

 

 

 

 

(1,000

)

Net cash used in investing activities

 

 

(2,780

)

 

 

(8,651

)

 

 

(7,457

)

 

 

(32,550

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of debt

 

 

(1,250

)

 

 

(1,500

)

 

 

(11,250

)

 

 

(2,750

)

Borrowing from line of credit

 

 

 

 

 

110,000

 

 

 

 

 

 

403,000

 

Repayment of line of credit

 

 

 

 

 

(110,000

)

 

 

 

 

 

(403,000

)

Payment of other offering costs

 

 

 

 

 

 

 

 

(497

)

 

 

 

Payment of contingent consideration

 

 

 

 

 

(146

)

 

 

(950

)

 

 

(438

)

Proceeds from issuance of shares through employee equity incentive plans

 

 

4,262

 

 

 

2,985

 

 

 

6,379

 

 

 

3,508

 

Payment of taxes related to net share settlement of equity awards

 

 

(231

)

 

 

(110

)

 

 

(787

)

 

 

(997

)

Net cash provided by (used in) financing activities

 

 

2,781

 

 

 

1,229

 

 

 

(7,105

)

 

 

(677

)

Effect of exchange rate changes on cash

 

 

(188

)

 

 

(2,018

)

 

 

542

 

 

 

(3,502

)

Net increase (decrease) in cash and restricted cash

 

 

1,959

 

 

 

6,717

 

 

 

29,952

 

 

 

(26,678

)

Cash and restricted cash at the beginning of the period

 

 

182,053

 

 

 

31,985

 

 

 

154,060

 

 

 

65,380

 

Cash and restricted cash at the end of the period

 

$

184,012

 

 

$

38,702

 

 

$

184,012

 

 

$

38,702

 

             

Corsair Gaming, Inc.

GAAP to Non-GAAP Reconciliations

 

Non-GAAP Operating Income (Loss) Reconciliations

(Unaudited, in thousands, except percentages)

             

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Loss - GAAP

 

$

(2,714

)

 

$

(54,960

)

 

$

(1,677

)

 

$

(57,445

)

Amortization

 

 

9,757

 

 

 

13,434

 

 

 

19,498

 

 

 

23,572

 

Stock-based compensation

 

 

8,174

 

 

 

6,087

 

 

 

15,420

 

 

 

11,234

 

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

 

 

 

 

 

19,489

 

 

 

 

 

 

19,489

 

Restructuring costs

 

 

 

 

 

1,488

 

 

 

 

 

 

1,488

 

Acquisition-related and integration-related costs

 

 

634

 

 

 

227

 

 

 

774

 

 

 

470

 

Other

 

 

 

 

 

34

 

 

 

 

 

 

309

 

Adjusted Operating Income (Loss) - Non-GAAP

 

$

15,851

 

 

$

(14,201

)

 

$

34,015

 

 

$

(883

)

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of net revenue - GAAP

 

 

-0.8

%

 

 

-19.4

%

 

 

-0.2

%

 

 

-8.6

%

As a % of net revenue - Non-GAAP

 

 

4.9

%

 

 

-5.0

%

 

 

5.0

%

 

 

-0.1

%

             

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
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

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

 

$

1,097

 

 

$

(59,392

)

 

$

43

 

 

$

(64,526

)

Less: Change in redemption value of redeemable noncontrolling interest

 

 

5,577

 

 

 

(7,379

)

 

 

6,535

 

 

 

(9,640

)

Net loss attributable to Corsair Gaming, Inc.

 

 

(4,480

)

 

 

(52,013

)

 

 

(6,492

)

 

 

(54,886

)

Add: Net income (loss) attributable to noncontrolling interest

 

 

401

 

 

 

174

 

 

 

765

 

 

 

(233

)

Net Loss - GAAP

 

 

(4,079

)

 

 

(51,839

)

 

 

(5,727

)

 

 

(55,119

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization

 

 

9,757

 

 

 

13,434

 

 

 

19,498

 

 

 

23,572

 

Stock-based compensation

 

 

8,174

 

 

 

6,087

 

 

 

15,420

 

 

 

11,234

 

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

 

 

 

 

 

19,489

 

 

 

 

 

 

19,489

 

Restructuring costs

 

 

 

 

 

1,488

 

 

 

 

 

 

1,488

 

Acquisition-related and integration-related costs

 

 

634

 

 

 

227

 

 

 

774

 

 

 

470

 

Other

 

 

 

 

 

34

 

 

 

 

 

 

309

 

Non-GAAP income tax adjustment

 

 

(4,665

)

 

 

(7,923

)

 

 

(8,215

)

 

 

(11,272

)

Adjusted Net Income (Loss) - Non-GAAP

 

$

9,821

 

 

$

(19,003

)

 

$

21,750

 

 

$

(9,829

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

$

0.01

 

 

$

(0.62

)

 

$

0.00

 

 

$

(0.68

)

Adjusted, Non-GAAP

 

$

0.09

 

 

$

(0.20

)

 

$

0.20

 

 

$

(0.10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

106,502

 

 

 

95,467

 

 

 

106,169

 

 

 

95,372

 

Adjusted, Non-GAAP

 

 

106,502

 

 

 

95,467

 

 

 

106,169

 

 

 

95,372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net loss - GAAP

 

$

(4,079

)

 

$

(51,839

)

 

$

(5,727

)

 

$

(55,119

)

Amortization

 

 

9,757

 

 

 

13,434

 

 

 

19,498

 

 

 

23,572

 

Stock-based compensation

 

 

8,174

 

 

 

6,087

 

 

 

15,420

 

 

 

11,234

 

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

 

 

 

 

 

19,489

 

 

 

 

 

 

19,489

 

Depreciation

 

 

3,036

 

 

 

2,545

 

 

 

5,933

 

 

 

5,149

 

Interest expense, net

 

 

2,518

 

 

 

1,676

 

 

 

5,346

 

 

 

2,955

 

Restructuring costs

 

 

 

 

 

1,488

 

 

 

 

 

 

1,488

 

Acquisition-related and integration-related costs

 

 

634

 

 

 

227

 

 

 

774

 

 

 

470

 

Other

 

 

 

 

 

34

 

 

 

 

 

 

309

 

Income tax benefit

 

 

(2,287

)

 

 

(4,164

)

 

 

(2,926

)

 

 

(5,147

)

Adjusted EBITDA - Non-GAAP

 

$

17,753

 

 

$

(11,023

)

 

$

38,318

 

 

$

4,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin - Non-GAAP

 

 

5.5

%

 

 

-3.9

%

 

 

5.6

%

 

 

0.7

%

 

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

Media:
David Ross
david.ross@corsair.com
+44 11 8208 0542

Source: Corsair Gaming, Inc.