FREMONT, Calif.–(BUSINESS WIRE)–Corsair Gaming, Inc. (Nasdaq:CRSR) (“Corsair”), a number one international supplier and innovator of high-performance gear for avid gamers and content material creators, at present introduced monetary outcomes for the quarter ended March 31, 2022.
First Quarter 2022 Highlights
Net income was $380.7 million, in keeping with the Company’s preliminary income offered on April 21, 2022. This represents a rise of 23.4% in comparison with the pre-pandemic first quarter of 2020, and a lower of 28.1% in comparison with the primary quarter of 2021, which included stimulus checks and pent-up demand.
Gamer and creator peripherals phase income was $134.1 million, a rise of 76.8% in comparison with the pre-pandemic first quarter of 2020, and a lower of 23.7% in comparison with the primary quarter of 2021.
GAAP working earnings declined 103.7% to a lack of $2.5 million in comparison with $67.3 million within the first quarter of 2021. Adjusted working earnings declined 83.4% to $13.3 million in comparison with $80.4 million within the first quarter of 2021.
Adjusted EBITDA was $15.4 million, in comparison with $80.4 million within the first quarter of 2021.
GAAP internet loss per diluted share was $0.05 in comparison with $0.47 GAAP internet earnings per diluted share within the first quarter of 2021. Adjusted internet earnings per diluted share was $0.09 in comparison with $0.58 within the first quarter of 2021.
Definitions of the non-GAAP monetary measures used on this press launch and reconciliations of such measures to their nearest GAAP equivalents are included beneath underneath the heading “Use and Reconciliation of Non-GAAP Financial Measures.”
Andy Paul, Chief Executive Officer of Corsair, said, “While we confronted headwinds in Q1, with inflation, the continued Russia and Ukraine battle, and excessive freight prices, we proceed to see optimistic underlying progress tendencies within the gaming {hardware} sector. During Q1, GPU playing cards, that are the costliest merchandise in a gaming PC, had been nonetheless at a excessive premium, roughly 150% of MSRP, and even with this premium we noticed gaming PC construct exercise barely larger than pre-pandemic and pre-GPU scarcity ranges. Our parts phase grew by 6% in Q1 2022 in contrast with Q1 2020, the final Q1 earlier than the pandemic and shelter at residence. The surge of exercise that we noticed throughout the shelter at residence interval doesn’t seem to have triggered a pull ahead in builds, extra so an entrance of latest avid gamers constructing for the primary time. We count on that GPU playing cards might be again to MSRP within the close to time period, maybe discounted beneath MSRP. We count on that with GPU and CPU merchandise changing into obtainable and fairly priced, we are going to see a surge of self-built gaming PC exercise in 2H22 and 2023. We see an identical optimistic development with Peripherals. While the market seems to be typically down some 15% to 25%, in comparison with final yr’s peak, it’s nonetheless considerably above pre-pandemic ranges. We grew 77% from Q1 2020 to Q1 2022, and as we outlined in our investor day shows, we expect that the peripheral market will proceed to drive 20% to 25% annual progress. We additionally imagine that with our increasing iCUE management software program, and modern new merchandise pipeline, we are going to proceed to take market share. Our newest market share knowledge for Q1 from the United States and Europe, exhibits that we’re within the #1 place in each main class of part that we provide which can be used to construct gaming PCs, and considerably forward of our nearest opponents.”
Michael G. Potter, Chief Financial Officer of Corsair, mentioned, “We count on that Q1 2022 was the height of pandemic-related excessive freight price and promotional headwinds, and that gross margins will enhance within the second half of the yr. We ended the quarter in a powerful liquidity place with our total revolver undrawn, leaving us in place to proceed to pursue progress alternatives and to proceed to spend money on product improvement. We proceed to be lively in pursuing progress investments with iDisplay being the newest instance.”
Financial Outlook
For the complete yr 2022, we at present count on:
Net income to be within the vary of $1.6 billion to $1.8 billion.
Adjusted working earnings to be within the vary of $100 million to $120 million.
Adjusted EBITDA to be within the vary of $110 million to $130 million.
Certain non-GAAP measures included in our monetary outlook weren’t reconciled to the comparable GAAP monetary measures as a result of the GAAP measures should not accessible on a forward-looking foundation. We are unable to reconcile these forward-looking non-GAAP monetary measures to essentially the most straight comparable GAAP measures with out unreasonable efforts as a result of we’re at present unable to foretell with an inexpensive diploma of certainty the sort and extent of sure gadgets that might be anticipated to influence GAAP measures for these durations however wouldn’t influence the non-GAAP measures. Such gadgets might embrace stock-based compensation prices, depreciation and amortization, and different gadgets. The unavailable info might have a big influence on our GAAP monetary outcomes.
The foregoing forward-looking statements mirror our expectations as of at present’s date. Given the variety of danger components, uncertainties and assumptions mentioned beneath, precise outcomes might differ materially. We don’t intend to replace our monetary outlook till our subsequent quarterly outcomes announcement.
Recent Developments
Elgato introduced the launch of HD60 X, a strong new exterior seize card. Sporting state-of-the-art specs and seamless compatibility with the latest technology of sport consoles, HD60 X equips anybody to stream and report their gameplay within the highest high quality with out limitations. You can then play high-fidelity video games whereas livestreaming to Twitch or YouTube in Full HD 1080p60 high quality, whereas concurrently recording 1080p60 HDR10 footage to your onerous drive. Instant Gameview know-how syncs your broadcast along with your gameplay, permitting you to watch your seize feed with ultra-low latency.
Corsair introduced a partnership with world-renowned writer 2K, bringing immersive in-game RGB lighting integration for all CORSAIR iCUE RGB gadgets to Gearbox Software’s extremely anticipated Tiny Tina’s Wonderlands ®. PC gamers with CORSAIR iCUE merchandise can get pleasure from unique real-time lighting results that reach the sport’s motion throughout their total iCUE setup within the upcoming spinoff of the Borderlands ® franchise.
Corsair introduced the brand new CORSAIR iCUE 5000T RGB PC case. Boasting a singular contoured design in black or white and 208 individually addressable RGB LEDs, the 5000T RGB has essentially the most built-in lighting ever constructed right into a CORSAIR case. High-airflow mesh panels and room for as much as two simultaneous 360mm radiators for excellent cooling make sure the 5000T RGB makes a right away and lasting impression.
Corsair unveiled the latest entry within the best-selling K70 collection: the CORSAIR K70 RGB PRO Mechanical Gaming Keyboard. Uniting the acclaimed design and aluminum construct of a full-size K70 with famend CORSAIR RGB lighting and tournament-grade efficiency, the K70 RGB PRO units a brand new normal for a full-size gaming keyboard. Available with a big selection of trusted CHERRY MX mechanical switches and loaded with options to assist avid gamers get essentially the most from their setup, anybody can discover a K70 RGB PRO to suit their type of play.
Conference Call and Webcast Information
Corsair will host a convention name to debate the primary quarter 2022 monetary outcomes at present at 3:00 p.m. Pacific Time. The convention name might be accessible on Corsair’s Investor Relations web site at https://ir.corsair.com, or by dialing 1-877-407-0784 (USA) or 1-201-689-8560 (International) with convention ID 13728886. A replay might be obtainable roughly 2 hours after the dwell name ends on Corsair’s Investor Relations web site, or by way of May 12, 2022 by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International), with passcode 13728886.
The name may also be webcast dwell from our investor relations web site at https://ir.corsair.com. Following completion of the decision, a recorded replay of the webcast might be obtainable on the web site.
About Corsair Gaming, Inc.
Corsair Gaming, Inc. (Nasdaq:CRSR) is a number one international developer and producer of high-performance gear and know-how for avid gamers, content material creators, and PC fans. From award-winning PC parts and peripherals to premium streaming gear, good ambient lighting and esports teaching providers, Corsair delivers a full ecosystem of merchandise that work collectively to allow everybody, from informal avid gamers to dedicated professionals, to carry out at their highest.
Corsair additionally consists of subsidiary manufacturers Elgato, which offers premium studio gear and equipment for content material creators, SCUF Gaming, which builds custom-designed controllers for aggressive avid gamers, ORIGIN PC, a builder of {custom} gaming and workstation desktop PCs and laptops and Gamer Sensei model, an esports teaching platform.
Forward Looking Statements
Except for the historic info contained herein, the issues set forth on this press launch are forward-looking statements inside the which means of the “secure harbor” provisions of the Private Securities Litigation Reform Act of 1995, together with, however not restricted to, our expectations concerning progress tendencies within the gaming {hardware} sector; our expectations concerning GPU and CPU costs and availability; the potential surge in self-built gaming PC exercise within the second half of 2022 and 2023; our perception that with our increasing iCUE management software program, and modern new merchandise pipeline, we are going to proceed to take market share; our perception that Q1 2022 was the height of pandemic-related excessive freight price and that gross margins will enhance within the second half of the yr; whether or not we can execute on M&A alternatives and or scale back our debt, in addition to the timing of the foregoing; and our estimated full yr 2022 internet income, adjusted working earnings and adjusted EBITDA; and our estimated 2026 internet income goal. Forward-looking statements are primarily based on our administration’s beliefs, in addition to assumptions made by, and knowledge at present obtainable to them. Because such statements are primarily based on expectations as to future monetary and working outcomes and should not statements of reality, precise outcomes might differ materially from these projected. Factors which can trigger precise outcomes to vary materially from present expectations embrace, however should not restricted to: the influence the COVID-19 pandemic, together with the potential finish of the pandemic and the cessation of pandemic-related restrictions, could have on demand for our merchandise in addition to its influence on our operations and the operations of our producers, retailers and different companions, and its influence on the economic system general, together with capital markets; our capability to construct and keep the energy of our model amongst gaming and streaming fans and our capability to repeatedly develop and efficiently market new gear and enhancements to present gear; the introduction and success of latest third-party high-performance pc {hardware}, significantly graphics processing models and central processing models in addition to subtle new video video games; fluctuations in working outcomes; the danger that we’re not capable of compete with opponents and/or that the gaming trade, together with streaming and esports, doesn’t develop as anticipated or declines; the loss or lack of ability to draw and retain key administration; the influence of worldwide instability, such because the struggle between Russia and Ukraine, and any sanctions or different geopolitical tensions that will consequence therefrom; delays or disruptions at our or third-parties’ manufacturing and distribution amenities; forex trade price fluctuations or worldwide commerce disputes leading to our gear changing into comparatively dearer to our abroad clients or leading to a rise in our manufacturing prices; the influence of the coronavirus on our enterprise; basic financial situations that adversely impact, amongst different issues, the monetary markets and shopper confidence and spending; and the opposite components described underneath the heading “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 filed with the Securities and Exchange Commission (“SEC”) on or in regards to the date hereof and our subsequent filings with the SEC. Copies of every submitting could also be obtained from us or the SEC. All forward-looking statements mirror our beliefs and assumptions solely as of the date of this press launch. We undertake no obligation to replace forward-looking statements to mirror future occasions or circumstances. Our outcomes for the quarter ended March 31, 2022 should not essentially indicative of our working outcomes for any future durations.
Use and Reconciliation of Non-GAAP Financial Measures
To complement the monetary outcomes offered in accordance with GAAP, this earnings launch presents sure non-GAAP monetary info, together with adjusted working earnings, adjusted internet earnings, adjusted internet earnings per diluted share and adjusted EBITDA. These are essential monetary efficiency measures for us, however should not monetary measures as outlined by GAAP. The presentation of this non-GAAP monetary info just isn’t meant to be thought of in isolation of or as an alternative choice to, or superior to, the monetary info ready and offered in accordance with GAAP.
We use adjusted working earnings, adjusted internet earnings, adjusted internet earnings per diluted share and adjusted EBITDA to guage our working efficiency and tendencies and make planning choices. We imagine that these non-GAAP measures assist establish underlying tendencies in our enterprise that would in any other case be masked by the impact of the bills and different gadgets that we exclude in such non-GAAP measures. Accordingly, we imagine that adjusted working earnings, adjusted internet earnings, adjusted internet earnings per diluted share and adjusted EBITDA present helpful info to traders and others in understanding and evaluating our working outcomes, enhancing the general understanding of our previous efficiency and future prospects, and permitting for larger transparency with respect to the important thing monetary metrics utilized by our administration in our monetary and operational decision-making. We additionally current these non-GAAP monetary efficiency measures as a result of we imagine traders, analysts and ranking businesses contemplate them helpful in measuring our capability to satisfy our debt service obligations.
Our use of those phrases might fluctuate from that of others in our trade. These non-GAAP monetary measures shouldn’t be thought of as a substitute for revenues, working earnings, internet earnings, money offered by working actions, or some other measures derived in accordance with GAAP as measures of working efficiency or liquidity. Reconciliations of those measures to essentially the most straight comparable GAAP monetary measures are offered within the hooked up schedules.
We calculate these non-GAAP monetary measures as follows:
Adjusted working earnings, non-GAAP, is decided by including again to GAAP working earnings (loss) the acquisition accounting influence associated to recognizing acquired stock at honest worth, change in honest worth of contingent consideration for enterprise acquisitions, stock-based compensation, intangible asset amortization, sure acquisition-related and integration-related bills, and non-deferred secondary providing prices.
Adjusted internet earnings, non-GAAP, is decided by including again to GAAP internet earnings (loss) the acquisition accounting influence associated to recognizing acquired stock at honest worth, change in honest worth of contingent consideration for enterprise acquisitions, stock-based compensation, intangible asset amortization, sure acquisition-related and integration-related bills, non-deferred secondary providing prices, loss on extinguishment of debt, and the associated tax results of every of those changes.
Adjusted internet earnings per diluted share, non-GAAP, is decided by dividing adjusted internet earnings, non-GAAP by the respective weighted common shares excellent, inclusive of the influence of different dilutive securities.
Adjusted EBITDA is decided by including again to GAAP internet earnings (loss) the acquisition accounting influence associated to recognizing acquired stock at honest worth, change in honest worth of contingent consideration for enterprise acquisitions, stock-based compensation, sure acquisition-related and integration-related bills, non-deferred secondary providing prices, intangible asset amortization, depreciation, curiosity expense (together with loss on extinguishment of debt) and tax expense (profit).
We encourage traders and others to overview our monetary info in its entirety, to not depend on any single monetary measure and to view these non-GAAP monetary measures along with the associated GAAP monetary measures.
Corsair Gaming, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in hundreds, besides per share quantities)
Three Months Ended
March 31,
2022
2021
Net income
$
380,691
$
529,414
Cost of income
289,935
369,086
Gross revenue
90,756
160,328
Operating bills:
Sales, basic and administrative
76,131
77,853
Product improvement
17,110
15,186
Total working bills
93,241
93,039
Operating earnings (loss)
(2,485
)
67,289
Other (expense) earnings:
Interest expense
(1,279
)
(4,946
)
Other expense, internet
(499
)
(2,425
)
Total different expense, internet
(1,778
)
(7,371
)
Income (loss) earlier than earnings taxes
(4,263
)
59,918
Income tax profit (expense)
983
(13,195
)
Net earnings (loss)
(3,280
)
46,723
Less: Net loss attributable to noncontrolling pursuits
(407
)
—
Net earnings (loss) attributable to Corsair Gaming, Inc.
$
(2,873
)
$
46,723
Calculation of internet earnings (loss) per share attributable to widespread stockholders of Corsair Gaming, Inc.:
Net earnings (loss) attributable to Corsair Gaming, Inc.
$
(2,873
)
$
46,723
Change in redemption worth of redeemable noncontrolling pursuits
(2,261
)
—
Net earnings (loss) attributable to widespread stockholders of Corsair Gaming, Inc.
$
(5,134
)
$
46,723
Net earnings (loss) per share attributable to widespread stockholders of Corsair Gaming, Inc.:
Basic
$
(0.05
)
$
0.51
Diluted
$
(0.05
)
$
0.47
Weighted-average widespread shares excellent:
Basic
95,275
91,951
Diluted
95,275
100,211
Corsair Gaming, Inc.
Segment Information
(Unaudited, in hundreds, besides percentages)
Three Months Ended March 31,
2022
2021
Net income:
Gamer and Creator Peripherals
$
134,148
$
175,912
Gaming Components and Systems
246,543
353,502
Total Net income
$
380,691
$
529,414
Gross Profit:
Gamer and Creator Peripherals
$
43,057
$
68,866
Gaming Components and Systems
47,699
91,462
Total Gross Profit
$
90,756
$
160,328
Gross Margin:
Gamer and Creator Peripherals
32.1
%
39.1
%
Gaming Components and Systems
19.3
%
25.9
%
Total Gross Margin
23.8
%
30.3
%
Corsair Gaming, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in hundreds)
March 31,
2022
December 31,
2021
Assets
Current belongings:
Cash and restricted money
$
31,754
$
65,149
Accounts receivable, internet
236,472
291,287
Inventories
300,423
298,315
Prepaid bills and different present belongings
57,877
51,024
Total present belongings
626,526
705,775
Restricted money, noncurrent
231
231
Property and gear, internet
19,607
16,819
Goodwill
348,424
317,054
Intangibles belongings, internet
249,841
225,709
Other belongings
74,796
71,808
Total belongings
$
1,319,425
$
1,337,396
Liabilities
Current liabilities:
Debt maturing inside one yr, internet
$
4,754
$
4,753
Accounts payable
203,454
236,120
Other liabilities and accrued bills
176,556
205,874
Total present liabilities
384,764
446,747
Long-term debt, internet
241,709
242,898
Deferred tax liabilities
29,241
25,700
Other liabilities, noncurrent
52,176
53,871
Total liabilities
707,890
769,216
Temporary fairness
Redeemable noncontrolling pursuits
19,424
—
Permanent fairness
Corsair Gaming, Inc. stockholders’ fairness:
Common inventory and extra paid-in capital
489,755
470,373
Retained earnings
93,013
98,147
Accumulated different complete loss
(2,494
)
(340
)
Total Corsair Gaming, Inc. stockholders’ fairness
580,274
568,180
Nonredeemable noncontrolling pursuits
11,837
—
Total everlasting fairness
592,111
568,180
Total liabilities, non permanent fairness and everlasting fairness
$
1,319,425
$
1,337,396
Corsair Gaming, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in hundreds)
Three Months Ended
March 31,
2022
2021
Cash flows from working actions:
Net earnings (loss)
$
(3,280
)
$
46,723
Adjustments to reconcile internet earnings (loss) to internet money
offered by (utilized in) working actions:
Stock-based compensation
5,147
3,076
Depreciation
2,604
2,436
Amortization of intangible belongings
10,138
8,702
Debt issuance prices amortization
86
537
Loss on debt extinguishment
—
439
Deferred earnings taxes
(4,078
)
(3,005
)
Other
567
1,316
Changes in working belongings and liabilities:
Accounts receivable
54,434
(13,416
)
Inventories
(662
)
(13,508
)
Prepaid bills and different belongings
(8,147
)
(4,419
)
Accounts payable
(35,308
)
(26,988
)
Other liabilities and accrued bills
(27,607
)
25,875
Net money offered by (utilized in) working actions
(6,106
)
27,768
Cash flows from investing actions:
Acquisition of enterprise, internet of money acquired
(19,534
)
(1,684
)
Payment of deferred consideration
—
(4,353
)
Purchase of property and gear
(4,365
)
(2,036
)
Net money utilized in investing actions
(23,899
)
(8,073
)
Cash flows from financing actions:
Repayment of debt
(1,250
)
(28,000
)
Borrowing from line of credit score
293,000
—
Repayment of line of credit score
(293,000
)
—
Payment of contingent consideration
(292
)
—
Proceeds from issuance of shares by way of worker fairness incentive plans
523
185
Payment of taxes associated to internet share settlement of fairness awards
(887
)
—
Net money utilized in financing actions
(1,906
)
(27,815
)
Effect of trade price adjustments on money
(1,484
)
134
Net lower in money and restricted money
(33,395
)
(7,986
)
Cash and restricted money firstly of the interval
65,380
133,568
Cash and restricted money on the finish of the interval
$
31,985
$
125,582
Corsair Gaming, Inc.
GAAP to Non-GAAP Reconciliations
Non-GAAP Operating Income Reconciliations
(Unaudited, in hundreds, besides percentages)
Three Months Ended
March 31,
2022
2021
Operating Income (loss) – GAAP
$
(2,485
)
$
67,289
Acquisition accounting influence associated to recognizing acquired
stock at honest worth
275
—
Change in honest worth of contingent consideration for enterprise
acquisitions
—
72
Stock-based compensation
5,147
3,076
Intangible asset amortization
10,138
8,702
Acquisition-related and integration-related prices
243
208
Non-deferred secondary providing prices
—
1,031
Adjusted Operating Income – Non-GAAP
$
13,318
$
80,378
As a % of internet income – GAAP
-0.7
%
12.7
%
As a % of internet income – Non-GAAP
3.5
%
15.2
%
Non-GAAP Net Income and Net Income Per Share Reconciliations
(Unaudited, in hundreds, besides per share quantities and percentages)
Three Months Ended
March 31,
2022
2021
Net earnings (loss) – GAAP
$
(3,280
)
$
46,723
Acquisition accounting influence associated to recognizing acquired
stock at honest worth
275
—
Change in honest worth of contingent consideration for enterprise
acquisitions
—
72
Stock-based compensation
5,147
3,076
Intangible asset amortization
10,138
8,702
Acquisition-related and integration-related prices
243
208
Non-deferred secondary providing prices
—
1,031
Loss on debt extinguishment
—
439
Non-GAAP earnings tax adjustment
(3,349
)
(2,089
)
Adjusted Net Income – Non-GAAP
$
9,174
$
58,162
Diluted internet earnings per share:
Adjusted, Non-GAAP
$
0.09
$
0.58
Weighted-average widespread shares excellent:
Adjusted, Non-GAAP
100,290
100,211
Corsair Gaming, Inc.
Adjusted EBITDA Reconciliations
(Unaudited, in hundreds, besides percentages)
Three Months Ended
March 31,
2022
2021
Net Income (loss) – GAAP
$
(3,280
)
$
46,723
Acquisition accounting influence associated to recognizing acquired
stock at honest worth
275
—
Change in honest worth of contingent consideration for enterprise
acquisitions
—
72
Stock-based compensation
5,147
3,076
Acquisition-related and integration-related prices
243
208
Non-deferred secondary providing prices
—
1,031
Intangible asset amortization
10,138
8,702
Depreciation
2,604
2,436
Interest expense (consists of loss on debt extinguishment)
1,279
4,946
Income tax expense (profit)
(983
)
13,195
Adjusted EBITDA – Non-GAAP
$
15,423
$
80,389
Adjusted EBITDA margin – Non-GAAP
4.1
%
15.2
%
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