UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of Registrant as Specified in Its Charter)
|
|
|
|
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) |
|
|
||
|
(Address of principal executive offices, including Zip Code) |
||
Registrant’s telephone number, including area code:
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
|
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
|
|
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On January 20, 2022, Corsair Gaming, Inc. (“Corsair”) announced its unaudited preliminary financial net revenue for the quarter and year ended December 31, 2021 and its 2022 net revenue guidance and estimated 2026 revenue targets. A copy of Corsair’s press release, titled “Corsair Gaming to Host Virtual Investor Day Today,” is furnished pursuant to Item 2.02 as Exhibit 99.1 hereto and a copy of the presentation used at the Virtual Investor Day is furnished pursuant to Item 2.02 as Exhibit 99.2 hereto.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
|
Exhibit Number |
|
Description |
|
99.1 |
|
Press Release, dated January 20, 2022, titled “Corsair Gaming to Host Virtual Investor Day Today” |
|
99.2 |
|
|
|
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
The information in this report, including the exhibits hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by Corsair, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
CORSAIR GAMING, INC. |
|
|
|
|
|
|
|
Date: January 20, 2022 |
|
By: |
/s/ Michael G. Potter |
|
|
|
|
Michael G. Potter |
|
|
|
|
Chief Financial Officer (Principal Financial Officer) |
2
Exhibit 99.1
Corsair Gaming to Host Virtual Investor Day Today; Announces Fourth Quarter and Full-Year 2021 Earnings Date
Company sets revenue target of $3.5 billion for 2026
FREMONT, CA, January 20, 2022 – Corsair Gaming, Inc. (NASDAQ:CRSR) (“Corsair”), a leading global provider and innovator of high-performance gear for gamers and content creators, announced that it is hosting its 2022 Virtual Investor Day today, January 20, 2022, between 7:00 a.m. and 9:30 a.m. Pacific Time. Corsair also announced that it will release its fourth quarter and full-year 2021 earnings on February 8, 2022.
During the Virtual Investor Day today, Corsair will provide an overview of its strategy, growth opportunities and long-term financial targets. Interested parties will be able to join the event live via the Zoom link published on the Corsair Investor Relations website. Participants are invited to visit the site at least 15 minutes prior to the presentation to download any required streaming media software. Presentation materials and an archived recording of the event will be available via Corsair’s Investor Relations website. Following completion of the event, a recorded replay of the webcast will be available on the Investor Relations website.
Virtual Investor Day Speaker Details
|
|
• |
Corsair’s Investor Day speakers will include: |
|
|
o |
Andy Paul, Chief Executive Officer |
|
|
o |
Geoff Lyon, SVP & GM of PC Components |
|
|
o |
Adrian Bedggood, VP of Marketing |
|
|
o |
Michael G Potter, Chief Financial Officer |
Highlights
|
|
• |
Discusses significant white space market opportunity in gaming hardware |
|
|
• |
In depth look at Corsair’s Components business |
|
|
• |
Elgato solutions driving the streaming and content creation market |
Preliminary Unaudited 2021 Results
Preliminary unaudited net revenue for 2021 is expected to be approximately $1.9 billion, at the higher end of its previous guidance range of $1.825 billion to $1.925 billion. Other financial metrics will be discussed during Corsair’s quarterly earnings call.
Financial Outlook
Corsair is introducing revenue guidance for the full year 2022 as indicated below:
|
|
• |
Net revenue to be in the range of $1.9 billion to $2.1 billion. |
The Company is also introducing an estimated $3.5 billion net revenue target by fiscal 2026.
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.
Virtual Investor Day Webcast Information
Corsair’s Virtual Investor Day is scheduled for today, January 20, 2022, between 7:00 a.m. and 9:30 a.m. Pacific Time. Interested parties will be able to join the event live via the Zoom link published on the Corsair Investor Relations website. Participants are invited to visit the site at least 15 minutes prior to the presentation to download any required streaming media software. Presentation materials and an archived recording of the event will be available via Corsair’s Investor Relations website. Following completion of the event, a recorded replay of the webcast will be available on the Investor Relations website.
Fourth Quarter and Full-Year 2021 Earnings
Corsair will release fourth quarter and full-year 2021 earnings after the market closes on February 8, 2022. A conference call to discuss its results will follow at 2:00 p.m. Pacific Time that same day.
Those wishing to participate via the webcast should access the call through Corsair’s Investor Relations website at https://ir.corsair.com. Those wishing to participate via telephone may dial in at 1-877-407-0784 (USA) or 1-201-689-8560 (International). The conference call replay will be available via webcast through Corsair's Investor Relations website. The telephone replay will be available from 5:00 p.m. Pacific Time on February 8, 2022, through February 15, 2022 by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The replay passcode will be 13726356.
About Corsair Gaming, Inc.
Corsair 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, smart ambient lighting and esports coaching services, 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, ORIGIN PC brand, a builder of custom gaming and workstation desktop PCs and laptops and Gamer Sensei brand, an esports coaching platform.
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 estimated 2022 net revenue and its estimated net revenue target for 2026. 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: the impact the COVID-19 pandemic, including the potential end of the pandemic and the cessation of pandemic-related restrictions, will have on demand for our products as well as its impact on our operations and the operations of our manufacturers, retailers and other partners, and its impact 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; delays or disruptions at our or third-parties’ manufacturing and distribution facilities; 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; the impact of the coronavirus on our business; general economic conditions that adversely effect, among other things, the financial markets and consumer confidence and spending; and the other factors described under the heading “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 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 preliminary unaudited results for the year ended December 31, 2021 are not necessarily indicative of our operating results for any future periods.
Investor Relations Contact:
Ronald van Veen
ir@corsair.com
510-578-1407
Media Contact:
Adrian Bedggood
adrian.bedggood@corsair.com
510-657-8747
+44-7989-258827
2022 VIRTUAL INVESTOR DAY Thursday, January 20, 2022 10:00AM – 12:30PM ET 7:00AM – 9:30AM PT 1 of 79 Exhibit 99.2
DISCLAIMER Forward Looking Statements This presentation contains forward looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, Corsair Gaming, Inc.’s (the Company) results may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact could be deemed forward-looking statements, including, but not limited to: information or predictions concerning the Company's future financial performance such as the Company’s potential 2022 operating results and its estimated 2026 net revenue target, business plans and objectives, potential growth opportunities, potential pricing of products, potential market leadership, and debt refinancing plans, competitive position, technological, industry or market trends, including market growth trends, and potential market opportunities. These statements are based on estimates and information available to the Company at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from the Company's current expectations as a result of many factors, including, but not limited to: the impact the COVID-19 pandemic, including the potential end of the pandemic and the cessation of pandemic-related restrictions, will have on demand for the Company’s products as well as its impact on its operations and the operations of its manufacturers, retailers and other partners, and its impact on the economy overall, including capital markets; the Company’s ability to build and maintain the strength of its brand among gaming and streaming enthusiasts and its 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 the Company is 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; delays or disruptions at manufacturing and distribution facilities of the Company or third parties; currency exchange rate fluctuations or international trade disputes resulting in the Company’s gear becoming relatively more expensive to its overseas customers or resulting in an increase in the Company’s manufacturing costs; the impact of the coronavirus on the Company’s business; and general economic conditions that adversely effect, among other things, the financial markets and consumer confidence and spending. The Company assumes no obligation, and does not intend, to update these forward-looking statements, except as required by law. Investors are urged to review in detail the risks and uncertainties outlined in Securities and Exchange Commission filings, including but not limited to its Annual Report on Form 10-K for the year ended December 31, 2021 (once available) as well as the Risk Factors contained therein. You may get these documents for free by visiting EDGAR on the SEC website at http://www.sec.gov. Market & Industry Data This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to the Company’s industry, the Company’s business and the market for the Company’s products and its future growth. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions, and estimates of the Company’s future performance and the future performance of the market for its products are necessarily subject to a high degree of uncertainty and risk. 2 of 79
AGENDA Overview of Corsair Market Data on Gaming PC Components and Gaming Peripherals Product Line Strategy Go-to-Market Our Path to $3.5B in Revenue in 2026 Financials 3 of 79
Hardware ENABLING GAMERS AND CREATORS TO PERFORM AT THEIR BEST Software Services 4 of 79
OUR FULL SUITE OF PRODUCTS Cases Power Supplies Custom Cooling CPU Coolers Fans Memory Storage Gaming PCs 5 of 79
ESTABLISHED GLOBAL FOOTPRINT WITH OVER 2,000 EMPLOYEES FREMONT, CA CORSAIR HQ MIAMI, FL Origin PC UK CORSAIR Europe GERMANY Elgato TAIPEI ATLANTA, GA SCUF VIETNAM CHINA CORSAIR Asia 200+ Sales & Marketing employees in 38+ countries 6 of 79
SOLID REVENUE GROWTH Note: *2021 financials are preliminary, unaudited estimates and are subject to change. Please see our Annual Report on form 10-K for the year ended December 31, 2021 when filed. 7 of 79
2 BUSINESS SEGMENTS AND 30 PRODUCT LINES 56% Gaming Components Note: *2021 financials are preliminary, unaudited estimates and are subject to change. Please see our Annual Report on form 10-K for the year ended December 31, 2021 when filed. 8 of 79
THREE MAIN PILLARS OF CORSAIR’S GROWTH Robust growth in the markets where we participate Continued gain in market share through years of experience, innovation and leading technology Entry into new categories via organic growth or acquisition 9 of 79
MARKET DATA 10 of 79
MARKET DATA SHOWS THAT GAMING HARDWARE IS GROWING FASTER THAN NUMBER OF GAMERS AND GAMING SOFTWARE Indexed to 100. Indexed to 100 Sources: Number of PC Gamers Worldwide and PC Software Spend: DFC Intelligence (as of Q4 2021); U.S. Components Spend; U.S. & E.U. Peripherals Spend: Corsair Management Estimates based on leading external data. 11 of 79
1,400M Casual PC Gamers Casual PC Gamers Little Hardware Ownership, Younger Gamer (Casual PC Gamers) SIGNIFICANT WHITE SPACE OPPORTUNITY. THE MAJORITY OF GAMING HARDWARE TAM IS STILL CONSUMED BY A SMALL PERCENTAGE OF GAMERS Source: DFC Intelligence (as of Q4 2021). Note: Total gamer counts eliminate double counting for gamers playing on multiple platforms. 12 of 79
HUGE WHITE SPACE, MOST GAMERS HAVE NOT YET UPGRADED TO DEDICATED GAMING PERIPHERALS Last 3 years U.S. market sales 7.5M Keyboards 15.5M PC headsets With refresh rates at approximately three years, the data suggests a huge opportunity for market growth as gamers get better and demand better equipment Sources: U.S. keyboards and headsets sales per Corsair Management Estimates based on leading external data from December 2018 – November 2021; Peripherals TAM and PC Gamers in the U.S. per DFC Intelligence Forecast (as of Q4 2021). 13 of 79
NUMBER OF GAMING HOURS INCREASING As gaming hours increase, the installed base for gaming hardware can grow significantly Source: Newzoo. 80% of Gen Z and Millennial Consumers Play Games. August, 2021. 14 of 79
PC BUDGET HIGHLY CORRELATES WITH TIME SPENT PLAYING THE MORE TIME SPENT PLAYING, THE HIGHER THE INVESTMENT IN THE PC USED FOR GAMING (REGARDLESS OF PC TYPE) Source: Newzoo – Survey of 9,000 PC Gamers across six key markets. 15 of 79
62% OF DEDICATED PC GAMERS USE A DESKTOP AS THEIR MAIN GAMING PC VS USING A LAPTOP APPROXIMATELY 1/3 USING SELF BUILT PC Source: Newzoo – Survey of 9,000 PC Gamers across six key markets. 16 of 79
SELF-BUILT PC TAM IS FORECASTED TO SHOW STRONG GROWTH Source: DFC Intelligence (as of Q4 2021). Note: TAM includes all Gaming PC components and accessories (including GPU and CPU, which Corsair does not sell). 17 of 79
PRODUCT STRATEGY Gaming Components Creator Product Suite Gaming Peripherals 20 of 79
GAMING COMPONENTS 21 of 79
CORSAIR HAS GROWN INTO A LEADERSHIP MARKET POSITION Source: Corsair Management Estimates based on leading external data as of November 2021. 22 of 79
23 of 79
GAMING PCS HAVE CHANGED OVER THE PAST 20 YEARS... 24 of 79
$3K-$5K BUILDS ARE NOT UNCOMMON FOR ENTHUSIAST DESKTOP GAMERS & STREAMERS 25 of 79
WHY PC ENTHUSIASTS BUILD THEIR OWN PCs PERFORMANCE IS NOW DELIVERED HAND-IN-HAND WITH PERSONALIZATION 26 of 79
WHAT DOES CORSAIR BRING TO THIS MARKET? COMBINATION OF HARDWARE AND SOFTWARE TECHNOLOGY Super speed Storage/SSD solutions* “Must have M.2 for any new build!” “Fast product from a trustworthy company” “Small…Wicked fast…A great drive!” 5000D Airflow Case* “Best case I've ever had” “Beautiful case, lots of room, mega airflow” “What a fantastic Corsair product! Elite Capellix AIO CPU cooler* “This is *the* cooler to get for hot CPU’s” “Amazing cooler, easy install, great RGB/looks” “Very quiet compared to traditional CPU coolers” Amazon Reviews 28 of 79 Power Supplies Since 2005, Corsair has used the latest power technology to supply high efficiency PSUs to the enthusiast market High-Performance DRAM 25 years experience in designing high performance memory that can be reliably overclocked RGB Case Fans Proprietary designs allow vivid lighting and high airflow performance, powered by iCUE software CPU Coolers Designed to extract heat from AMD and Intel CPUs. Corsair has been a leader here for 10 years Cases Designed for enthusiast builders by our team of enthusiasts. Unique solutions for airflow, cable routing and aesthetics SSD/Storage 15 years experience in designing high density and high performance solid state drives
CONSISTENT INVESTMENT IN PERFORMANCE AND INNOVATION 25 years of experience in PC Gaming Components Close partnership with CPU and GPU manufacturers ensures compatibility to enable new technology adoption Continued innovation allows easier builds and upgrades and better system level performance Comprehensive software and hardware ecosystem iCUE System management application controlling both hardware and software and extending to peripherals 29 of 79
iCUE ECOSYSTEM – CENTRAL CONTROL FOR THE ENTIRE SYSTEM Controls all iCUE enabled Components and Peripherals Monitors performance and controls cooling Synchronising of RGB across all components and devices Creates a Corsair ecosystem – across components and peripherals and in-game interaction 30 of 79
HOW DOES iCUE HELP US WIN? iCUE amplifies the value of our product. Hardware alone is not enough – both performance and personalization are the hallmark of a winning product family We believe that when enthusiasts and gamers use our iCUE ecosystem it encourages them to purchase more of our products Our internal data shows that 35% of iCUE gaming component users later purchase one or more Corsair peripheral 31 of 79
CUSTOMERS ARE WILLING TO PAY MORE FOR CORSAIR COMPONENTS AND iCUE FEATURES Corsair ASP premium compared to other manufacturers Memory +43% Cooling Products +23% Cases +25% PSU +29% Source: Corsair Management Estimates based on leading external data from January – November 2021. 32 of 79
GIVING US #1 POSITION IN COMPONENTS FOR SELF BUILT GAMING PCs (MEMORY, PSU, CASES, COOLING, AND FANS) Source: Corsair Management Estimates based on leading external data as of November 2021. 33 of 79
LATEST iCUE SOLUTIONS EXTEND PERSONALIZATION WITH LCD DISPLAY INTEGRATION 34 of 79
GAMING COMPONENTS 2022 AND BEYOND Strong growing market fueled by demanding games and consumer performance needs Corsair expects to continue to hold an ASP premium and grow market share with our ecosystem and innovation 35 of 79
STREAMING AND CONTENT CREATION 36 of 79
CONTENT CREATOR PRODUCTS UNDER THE ELGATO BRAND ARE THE FASTEST GROWING CATEGORY IN OUR BUSINESS Elgato products accounted for approximately 1/3 of the Gamer and Creator Peripherals revenue in 2021 37 of 79
JULIAN FEST SVP & GM ELGATO Masters Degree, Munich University of Management Joined Elgato in 2011 to spearhead a new product initiative geared towards content creators Elgato acquired by Corsair in 2018 Rapid growth since the successful integration into Corsair 38 of 79
EVERYONE IS BECOMING A CONTENT CREATOR. WE ENABLE THIS. 10 YEARS OF EXPERIENCE. 39 of 79
USER GENERATED CONTENT IS EVERYWHERE Stream Deck 2017 2014 Game Capture 2012 2006 Keying, Mounting & Camera Capture 2018 Lights 2019 Microphones 2020 2022 Content creators everywhere Cameras 2021 40 of 79
Source: https://blog.youtube/news-and-events/youtube-gaming-2020/. Source: https://twitter.com/Fwiz/status/1478577526104477700. USER GENERATED CONTENT IS EVERYWHERE 41 of 79
THE ELGATO COMPLETE CREATOR STUDIO 42 of 79
ELGATO: MOMENTUM Facecam Stream Deck Key Light Air Wave:3 50% OF OUR STREAMING INSTALL BASE Have 2+ Elgato devices Source: Corsair customer survey. Wave Link Camera Hub 43 of 79
STREAM DECK – THE CORE OF YOUR CREATIVE WORKFLOW Stream Deck ties together the Elgato product ecosystem, enabling powerful control of audio, video, lighting and more Software Development Kit released in 2019 allows third party developers to integrate their products and services natively with Stream Deck New communities and companies continue to discover Stream Deck organically 44 of 79
ELGATO: THE STREAM DECK PLATFORM OVER 1M UNITS SHIPPED SINCE LAUNCH 45 of 79
Hardware Software Marketplace THE OPPORTUNITY Content creation has expanded beyond social media and into all corners of our personal and professional lives. Elgato has a full production ecosystem across hardware and software in place, with Stream Deck at the core. This year, a new Elgato Marketplace experience will provide a further pillar of significant value to our customers. Our goal over the next four years is to ship over 5M Stream Decks. Source: Corsair management estimates. 46 of 79
GAMER PERIPHERALS 47 of 79
WE MAKE PERIPHERALS FOR GAMERS WHO CARE ABOUT WINNING 48 of 79
LEADING THE WAY 50 of 79
TIMELINE 2014 2021 2019 2017 2015 2020 51 of 79 K70 RGB with Cherry mechanical keys and RGB software control M65 RGB with Sniper Control VOID Headset – 50mm drivers with 7.1 surround sound SCUF Custom XBOX Series X and PS5 Controllers Sabre Pro Wireless – Slipstream technology Virtuoso audiophile quality wireless gaming headset with studio grade microphone K95 Platinum K100 RGB Edge Lighting Capellix AXON
CORSAIR WILL CONTINUE TO DEVELOP TECHNOLOGY THAT ALLOWS GAMERS TO BE AT THEIR BEST Our focus is on PC enthusiasts and competitive gamers As people spend more time gaming, we believe that creating a competitive advantage will be increasingly important 52 of 79
GROWTH IN NEW CATEGORIES 53 of 79
PRICED BETWEEN $2,000 AND $5,000 Corsair entered the Systems business in 2017, launching the Corsair ONE high performance PC, for both gamers and creators In 2018 we launched the Vengeance PC range of prebuilt systems for enthusiasts Corsair acquired Origin PC in 2019, a custom PC builder, with ASPs at approximately $3,500, which sells in a direct-to-consumer model PRE-BUILT GAMING PCs Worldwide TAM $20B+ Source: IDC gaming desktops and Corsair management estimates. 54 of 79
PRICED AT $149 TAILORED FOR CREATORS Wave is a broadcast-grade microphone Highly acclaimed WAVE LINK software allows control over many audio channels Market share growing quickly, 5.0% share on $60+ microphones in the U.S. and E.U. markets within the first 18 months of launch MICROPHONES WAVE SERIES LAUNCHED BY ELGATO IN 2020 Worldwide TAM $500M+ Source: Corsair management estimates. 55 of 79
PRICED AT $199 High-quality 1080p 60fps streaming camera Camera hub software allows DLSR quality set up During the first six months post-launch it achieved a 4.0% market share for USB Cameras over $60 across Amazon in U.S. and E.U. STREAMING CAMERAS FACECAM LAUNCHED BY ELGATO IN 2021 Worldwide TAM $1B+ Source: Corsair management estimates. 56 of 79
GAMING MONITORS XENEON MONITOR LAUNCHED IN 2021 PRICED AT $799 32” QHD 165Hz GAMING MONITOR Fast IPS panel with quantum dot technology provides coverage for more vivid, natural colors and astonishing realism FEATURE PACKED HDR-ready and NVIDIA G-Sync / AMD FreeSync compatible Corsair’s unique features allow the display to be controlled by our iCUE ecosystem and Stream Deck devices Worldwide TAM $5B+ Source: Corsair management estimates. 57 of 79
PRICED AT $150+ Leader in performance console controllers Full customizable controllers shipping for XBOX Series X, S and PlayStation 5 Extensive patent portfolio around rear paddles and trigger technology Majority of sales are direct-to-consumer HIGH PERFORMANCE GAMING CONTROLLERS CORSAIR ACQUIRED SCUF GAMING IN 2019 58 of 79
SERVICE REVENUE With our vast installed base, we are adding a digital services layer to enhance the customer experience Esports Coaching (Gamer Sensei) Stream Deck Marketplace Customer Care Extended Warranty 59 of 79
60 of 79
HOW WE GO TO MARKET 61 of 79
MULTIPLE TOUCHPOINTS TO COMMUNICATE WITH OUR CUSTOMERS 62 of 79
OUR FANS LOVE US! 63 of 79
SURVEY OF PC ENTHUSIASTS SHOW OUR BRAND LOYALTY IS AT A SIMILAR LEVEL TO INTEL, NVIDIA AND MICROSOFT Source: DFC Intelligence survey of 5,000 PC Gamers. “I own this brand and plan to buy again in the future” 64 of 79
SOCIAL FOOTPRINT – HUGE REACH AND HIGH ENGAGEMENT 17.4M+ Followers 1000+ Media Partners 1500+ Influencers 65 of 79
CORSAIR HAS FORGED WORLDWIDE PARTNERSHIPS WITH LEADING GAME STUDIOS. INTEGRATING iCUE, ELEVATING THE EXPERIENCE 66 of 79
LATEST INTEGRATION: FARCRY 6 WITH UBISOFT 67 of 79
OUR GLOBAL SALES FORCE ENGAGES WITH ETAILERS AND RETAILERS IN OVER 90 COUNTRIES Source: Corsair. 68 of 79
CORSAIR AND ITS BRANDS ARE PRESENT IN MOST MAJOR RETAILERS WORLDWIDE... 69 of 79
71 of 79
OUR PLAN IS TO HAVE $3.5B REVENUE BY 2026 Gaming Components and Systems Gamer and Creator Peripherals We expect the market for peripherals, components and creator products to continue to grow at historical rates. We model the gaming components market to grow by an expected 6-8% per year and we expect to continue to take market share on average of 1% per year because of iCUE and brand ‘stickiness’. We expect the high-end pre-built systems market to continue to grow and we expect to take significant market share, resulting in a potential 20-25% growth. We expect our gamer peripherals products to continue to grow at approximately 20% per year. We expect our creator products to grow by 20 – 25% per year and begin to offer more software and service products, centred around Stream Deck starting in 2022. We have substantial B2B interest here also. While we believe service offerings such as Gamer Sensei and Corsair Customer Care have the potential to grow rapidly over the next few years but will not be a significant driver of revenue growth. We have closed 8 acquisitions since 2018 and intend to selectively pursue complementary acquisitions Source: Corsair management estimates. 72 of 79
FINANCIALS 73 of 79
Graduate Diploma of Accountancy from McGill University, and a Bachelor of Commerce – Accounting from Concordia University. Vast experience in technology based public companies for 25 years, including Lattice Semiconductor and Canadian Solar. Joined Corsair in 2019. MICHAEL POTTER CFO 74 of 79
GUIDANCE FOR 2021 AND 2022 2021 Revenue is estimated to be $1.9B* We expect 2022 Revenue to be between $1.9B and $2.1B The majority of our year over year growth will be in 2H 2022 Source: Corsair finance. Note: *Preliminary / unaudited. 75 of 79
THE PATH TO $3.5B BY 2026 Our growth strategy should yield an estimated revenue growth of approximately 12-13% per annum resulting in a 2026 Revenue of approximately $3.5B We expect gross margins to increase from 25-30% to over 30%, coming from increased technology in our products, product mix and from increased D2C activity While we will continue to invest in R&D and Marketing we expect that our growth plans can yield an EBITDA margin of 13%+ 76 of 79
CAPITAL STRUCTURE In two years, debt reduced by over 50% and indicative annual interest by over 85% Future priority is to invest in growth (M&A) over further deleveraging Term loan paydown does not impact revolver capacity, with flexibility for incremental revolver capacity as the term loan gets paid down Value - Millions 77 of 79
78 of 79
QUESTIONS? 79 of 79