Corsair Gaming Reports Third Quarter 2023 Financial Results; 16.5% Revenue Growth Over Prior Year; Updates Full Year Financial Outlook
Third Quarter 2023 Select Financial Metrics
- Net revenue was
$363.2 million compared to$311.8 million in the third quarter of 2022, an increase of 16.5%. Gaming components and systems segment net revenue was$272.8 million compared to$214.9 million in the third quarter of 2022, while Gamer and creator peripherals segment net revenue was$90.4 million compared to$96.8 million in the third quarter of 2022. - Net loss attributable to common shareholders was
$3.1 million , or net loss of$0.03 per diluted share, compared to a net loss of$8.9 million , or a net loss of$0.09 per diluted share, in the third quarter of 2022. - Adjusted net income was
$13.4 million , or net income of$0.13 per diluted share, compared to an adjusted net income of$7.6 million , or a net income of$0.08 per diluted share, in the third quarter of 2022. - Adjusted EBITDA was
$23.0 million , compared to$10.1 million in the third quarter of 2022. - Cash and restricted cash were
$147.8 million as ofSeptember 30, 2023 .
First Nine Months 2023 Select Financial Metrics
- Net revenue was
$1,042.6 million compared to$976.4 million in the first nine months of 2022, an increase of 6.8%. Gaming components and systems segment net revenue was$784.5 million compared to$656.4 million in the first nine months of 2022, while Gamer and creator peripherals segment net revenue was$258.1 million compared to$320.0 million in the first nine months of 2022. - Net loss attributable to common shareholders was
$3.0 million , or net loss of$0.03 per diluted share, compared to a net loss of$73.4 million , or a net loss of$0.77 per diluted share, in the first nine months of 2022. - Adjusted net income was
$35.1 million , or net income of$0.33 per diluted share, compared to an adjusted net loss of$2.2 million , or a net loss of$0.02 per diluted share, in the first nine months of 2022. - Adjusted EBITDA was
$61.3 million , compared to$14.5 million in the first nine months of 2022.
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
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.
- Net revenue for the full year 2023 is expected to be in the range of
$1.4 billion to$1.5 billion , compared to$1.35 billion to$1.55 billion previously. - Adjusted operating income is expected to be in the range of
$80 million to$90 million , compared to$75 million to$95 million previously. - Adjusted EBITDA is expected to be in the range of
$95 million to$105 million , compared to$90 million to$110 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 Developments
- Corsair released a range of new gaming peripherals, including new renditions of the popular K70 keyboard lineup, featuring Corsair-developed mechanical and magnetic switches.
The M75 Air is an ultralight competitive FPS gaming mouse that is the Company’s lightest yet at 60g. New headsets address different market segments, with the multi-platform HS80 Max supporting Bluetooth and wireless connection, while the Virtuoso Pro is aimed at high-end audio enthusiasts with its graphene drivers and open-back design. - Corsair’s Scuf unveiled a new line of PC controllers, Scuf Envision. Specifically designed for PC gamers, Scuf Envision redefines the PC gaming experience with unprecedented customization and cutting-edge technology. The new controllers grant PC gamers a decisive advantage, with the additional control options that have made Scuf controllers synonymous with competitive gaming. Within and with a familiar shape and 11 additional remappable inputs compared to standard controllers, gamers can create a controller layout that suits their unique playstyle and puts every control within easy reach, for when it matters most.
- Introduced the Elgato Prompter, which helps streamers and presenters connect with their audiences with natural eye contact. Video scripts, Twitch chat, and Zoom conference calls all benefit from the Prompter which connects to a camera or webcam and can mirror scripts, stream chat, or any other window you can drag and drop onto its built-in screen. With broad compatibility and Elgato Stream Deck support, Prompter makes pro video production accessible to a wider audience. Upon its introduction, the Prompter sold out within the first 24 hours.
- Launched the Elgato digital creator Marketplace for streamers, video creators, podcasters and work professionals. Enables third parties, as well as the Company’s own makers, to develop and sell digital products (Plugins, Icons, Overlays and more) to an installed base of almost 2 million Stream Deck users. The Elgato Marketplace Launched with 1200+ digital products, including 320 plugins for Stream Deck from over 240 third-party makers. The Company believes that the Marketplace will increase interest and usage of Stream Deck and drive up the installed base.
- Expanded iCUE LINK Ecosystem, a technology that simplifies the DIY PC building experience by reducing the wiring complexity of connecting components together. Extended the range of iCUE LINK enabled products with the introduction of
Hydro X enabled CPU and GPU blocks and reservoirs. iCUE LINK continues to gain momentum, helping to expand the market by making PC building easier with single-cable digital connections allow for more elegant and capable systems.
Conference Call and Webcast Information
Corsair will host a conference call to discuss the third quarter 2023 financial results today at
About
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
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, restructuring costs, acquisition accounting impact related to recognizing acquired inventory at fair value, 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, inventory reserve in excess of normal run rate to address overhang in the channel, restructuring costs, acquisition accounting impact related to recognizing acquired inventory at fair value, 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, net, inventory reserve in excess of normal run rate to address overhang in the channel, restructuring costs, acquisition accounting impact related to recognizing acquired inventory at fair value, 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.
|
Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share amounts) |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
|
$ |
(3,079 |
) |
|
$ |
(6,211 |
) |
|
$ |
(9,571 |
) |
|
$ |
(61,097 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Calculation of net loss per share attributable to common stockholders of |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net loss attributable to |
|
$ |
(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 |
|
$ |
(3,079 |
) |
|
$ |
(8,901 |
) |
|
$ |
(3,036 |
) |
|
$ |
(73,427 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net loss per share attributable to common stockholders of |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
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 |
|
|
Segment Information (Unaudited, in thousands, except percentages) |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
% |
|
Condensed Consolidated Balance Sheets (Unaudited, in thousands) |
|||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
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 |
|
|
|
|
|
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 |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
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 |
) |
|
|
|
|
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 |
|||
|
Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
|
|
GAAP to Non-GAAP Reconciliations |
||||||||||||||||
|
Non-GAAP Operating Income Reconciliations (Unaudited, in thousands, except percentages) |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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 |
% |
|
GAAP to Non-GAAP Reconciliations |
||||||||||||||||
|
Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share Reconciliations (Unaudited, in thousands, except per share amounts) |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
Net loss attributable to common stockholders of |
|
$ |
(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 |
|
|
(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 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP to Non-GAAP Reconciliations |
||||||||||||||||
|
Adjusted EBITDA Reconciliations (Unaudited, in thousands, except percentages) |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
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/
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