Financial Performance - Net revenue for Q3 2024 was $304.2 million, down from $363.2 million in Q3 2023, representing a decrease of 16.2%[71] - Gross margin decreased to 22.9% in Q3 2024 from 24.6% in Q3 2023[71] - The company reported a net loss of $51.6 million for Q3 2024, compared to a net loss of $2.9 million in Q3 2023[71] - Net revenue decreased by 16.2% and 13.4% for the three and nine months ended September 30, 2024, respectively, compared to the same periods last year[92] - The decrease in net revenue for the three-month period was primarily due to a 25.9% decrease in sales for the Gaming Components and Systems segment, partially offset by a 12.8% increase in the Gamer and Creator Peripherals segment[92] - Operating loss for the three months ended September 30, 2024, was $(20,944), compared to $(758) for the same period last year[89] - Net loss attributable to Corsair Gaming, Inc. for the three months ended September 30, 2024, was $(51,708), compared to $(3,079) for the same period last year[89] Cash Flow and Liquidity - Cash used in operations was $19.7 million for the nine months ended September 30, 2024, compared to cash provided by operations of $32.1 million for the same period in 2023[71] - As of September 30, 2024, the company had cash and restricted cash totaling $61.6 million and a borrowing capacity of $100.0 million under the Revolving Facility[104] - Net cash used in operating activities for the nine months ended September 30, 2024 was $19.7 million, compared to net cash provided of $32.1 million for the same period in 2023[106] - Cash used in investing activities was $50.5 million for the nine months ended September 30, 2024, primarily due to a $43.1 million cash outflow for the Fanatec Acquisition[108] - Cash used in financing activities was $46.6 million for the nine months ended September 30, 2024, which included $21.3 million for debt repayment and $19.8 million for purchasing additional ownership interest in iDisplay[109] - The company had a total principal outstanding of $177.8 million on the Term Loan as of September 30, 2024, with a variable interest rate structure[110] - The company may require additional funding in the future, which could involve raising funds through borrowings or public/private sales of debt or equity securities[104] Segment Performance - The Gamer and Creator Peripherals segment saw a slight improvement in sales during the first nine months of 2024, driven by new product introductions[74] - Net revenue for the Gamer and Creator Peripherals segment increased by 12.8% and 17.5% for the three and nine months ended September 30, 2024, driven by new product launches and post-acquisition revenues from Drop[99] - Net revenue for the Gaming Components and Systems segment decreased by 25.9% and 23.6% for the three and nine months ended September 30, 2024, influenced by a flat-to-low market trajectory in the self-built PC market[100] Expenses and Costs - SG&A expenses increased by $13.2 million, or 6.2%, for the nine months ended September 30, 2024, primarily due to an $8.4 million increase in legal expenses[94] - Product development expenses for the nine months ended September 30, 2024, increased by $2.0 million, or 4.2%, primarily due to a $1.7 million increase in personnel-related costs[95] - The gross margin for the Gamer and Creator Peripherals segment increased to 38.3% for the three months ended September 30, 2024, attributed to a favorable product mix and lower product costs[102] - The gross margin for the Gaming Components and Systems segment decreased by 6.7% for the three months ended September 30, 2024, due to unfavorable product mix and pricing pressures[103] Tax and Interest - Interest expense for the three months ended September 30, 2024, was $(3,011), down from $(4,271) in the same period last year[89] - Interest expense decreased by 29.5% and 22.4% for the three and nine months ended September 30, 2024, respectively, due to lower principal balance and interest rates on the Term Loan[96] - The effective tax rate was (110.0)% for the three months ended September 30, 2024, primarily due to a $28.0 million valuation allowance against U.S. federal and state deferred tax assets[97] - The effective tax rate for the company will vary depending on the proportion of foreign to U.S. income and changes in tax laws[88] Foreign Currency and Risk - Approximately 20.2% of Corsair Gaming's net revenue for the nine months ended September 30, 2024, was denominated in foreign currencies, primarily Euro and British Pound[118] - The outstanding notional principal amount of forward currency contracts was $19.5 million as of September 30, 2024, down from $44.3 million as of December 31, 2023[118] - The impact of changes in foreign currency rates resulted in a net loss of $(1.9) million for the nine months ended September 30, 2024, compared to $(1.5) million for the same period in 2023[118] - A hypothetical ten percent change in exchange rates would affect gains or losses on foreign currency exchange by approximately $3.1 million for the nine months ended September 30, 2024[118] Corporate Governance - There were no changes in internal control over financial reporting that materially affected Corsair Gaming's internal control during the quarter ended September 30, 2024[121] - Corsair Gaming's disclosure controls and procedures were evaluated as effective as of September 30, 2024, providing reasonable assurance for timely reporting[120] - The company does not anticipate that any ongoing legal proceedings will have a material adverse effect on its business or financial condition[121] Acquisitions and Growth - Corsair completed the acquisition of the Fanatec Business for $43.7 million on September 19, 2024, expanding its product offerings in the sim racing market[70] - Corsair launched 65 new products in the nine months ended September 30, 2024, following 108 new products launched in 2023[77] - The company expects continued growth in the peripheral market into late 2024 and 2025, despite a slowdown in the self-built PC market in early 2024[74]

Financial Performance - Net revenue for Q3 2024 was $304.2 million, a decrease of 16.2% compared to $363.2 million in Q3 2023[2] - Net loss attributable to common shareholders was $58.4 million, or $0.56 per diluted share, compared to a net loss of $3.1 million, or $0.03 per diluted share, in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $4.8 million, down from $23.0 million in Q3 2023[2] - Gross profit for the three months ended September 30, 2024, was $69,661 thousand, down 22.1% from $89,353 thousand in the prior year[21] - Operating loss for the three months ended September 30, 2024, was $(20,944) thousand, compared to a loss of $(758) thousand for the same period in 2023[19] - Net loss attributable to Corsair Gaming, Inc. for the three months ended September 30, 2024, was $(51,708) thousand, significantly higher than $(3,079) thousand in the same quarter of 2023[19] - The company reported a basic net loss per share of $(0.56) for the three months ended September 30, 2024, compared to $(0.03) in the same period last year[20] - Corsair Gaming reported a net loss of $51.586 million for the three months ended September 2024, compared to a net loss of $2.886 million for the same period in 2023[25] - The adjusted net loss for the three months ended September 2024 was $30.252 million, compared to an adjusted net income of $13.364 million in the same period last year[27] - GAAP net loss for the three months ended September 2024 was $51.586 million, compared to a loss of $2.886 million for the same period in 2023[28] Segment Performance - The Gaming Components and Systems segment net revenue was $202.2 million, down from $272.8 million in Q3 2023, while the Gamer and Creator Peripherals segment net revenue increased to $102.0 million from $90.4 million[2] - The Gamer and Creator Peripherals segment achieved 13% revenue growth year-over-year in Q3 2024, with strong margins of 38.3%[4] - Gross margin for Gamer and Creator Peripherals improved to 38.3% in Q3 2024 from 33.1% in Q3 2023[23] Future Outlook - Corsair expects full year 2024 revenue to be in the range of $1.25 billion to $1.35 billion, including approximately $20 million of EBITDA-neutral revenue in Q4 2024 from the Fanatec acquisition[5] - Adjusted operating income is now expected to be in the range of $28 million to $43 million, down from a previous expectation of $48 million to $63 million[6] - Corsair anticipates that Q4 2024 will be EBITDA neutral, with profitability expected in 2025 driven by the Fanatec acquisition[4] Cost Management - The company has implemented cost-saving measures expected to yield several million dollars in savings per quarter starting in Q4 2024[4] Cash Flow and Assets - Total current assets decreased to $571,553 thousand as of September 30, 2024, from $711,589 thousand at the end of 2023, reflecting a decline of 19.7%[24] - Cash and restricted cash decreased to $61,361 thousand from $178,325 thousand, a decline of 65.6%[24] - Corsair Gaming's total cash and restricted cash at the end of the period was $61.606 million, down from $147.770 million at the end of September 2023[25] - The company experienced a net cash used in operating activities of $25.101 million for the three months ended September 2024, compared to a net cash used of $11.912 million in the prior year[25] - Corsair Gaming's cash flows from financing activities resulted in a net cash outflow of $24.474 million for the three months ended September 2024, compared to $6.100 million in the same period last year[25] Acquisitions and Integration - Corsair completed the acquisition of the Fanatec Sim Racing brand, enhancing its position in the Sim Racing market[9] - The company incurred $43.131 million in cash outflows related to business acquisitions during the three months ended September 2024[25] - Acquisition and related integration costs for the three months ended September 2024 were $2.281 million, compared to $1.386 million in the same period last year[28] Expenses - Total operating expenses for the three months ended September 30, 2024, were $90,605 thousand, slightly higher than $90,111 thousand in the prior year[19] - Stock-based compensation for the three months ended September 2024 was $7.424 million, slightly down from $7.825 million in the same period last year[26] - Stock-based compensation for the nine months ended September 2024 totaled $23.125 million, slightly down from $23.245 million in the previous year[28] - Amortization expenses for the nine months ended September 2024 were $28.583 million, compared to $29.005 million in the same period of 2023[28] - Interest expense for the nine months ended September 2024 was $7.118 million, down from $7.875 million in the previous year[28] - Restructuring and other charges for the three months ended September 2024 were $3.369 million, up from $0.709 million in the prior year[28] - Income tax expense for the three months ended September 2024 was $27.018 million, compared to a tax benefit of $(0.097) million in the same period last year[28]

| --- | --- | |-------------------------------|-------| | | | | | | | | | | | | | | | | | | | Q2 2024 | | | Company Update August 1, 2024 | | | | | 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, the Company's results may differ materially from those expressed or implied by such forward-looking statements. All statements other than ...

Corsair Gaming, Inc. (NASDAQ:CRSR) Q2 2024 Earnings Conference Call August 1, 2024 5:00 PM ET Company Participants Ronald van Veen - Vice President of Finance and Investor Relations Andy Paul - Chief Executive Officer Michael Potter - Chief Financial Officer Conference Call Participants George Wang - Barclays Capital, Inc. Colin Sebastian - Baird Andrew Crum - Stifel, Nicolaus & Company, Inc. Doug Creutz - Cowen Aaron Lee - Macquarie Group Operator Good afternoon, everyone, and welcome to Corsair Gaming's S ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-39533 Corsair Gaming, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware ...

Financial Performance - Net revenue for Q2 2024 was $261.3 million, a decrease of 19.7% compared to $325.4 million in Q2 2023[2] - Net loss attributable to common shareholders was $29.6 million, or $0.28 per diluted share, compared to net income of $1.1 million, or $0.01 per diluted share, in Q2 2023[2] - Adjusted EBITDA for Q2 2024 was a loss of $1.2 million, down from an adjusted EBITDA of $17.8 million in Q2 2023[2] - Operating loss for the three months ended June 30, 2024, was $24.7 million, compared to an operating loss of $2.7 million in the prior year[16] - The net loss attributable to Corsair Gaming, Inc. was $24.2 million for the three months ended June 30, 2024, compared to a net loss of $4.5 million for the same period in 2023[16] - Corsair Gaming reported a net loss of $23,507 thousand for the three months ended June 2024, compared to a net loss of $4,079 thousand for the same period in 2023[20] - The adjusted operating loss for the three months ended June 2024 was $3,821 thousand, significantly lower than the adjusted operating income of $15,851 thousand in the same period last year[21] - Corsair's adjusted EBITDA for the three months ended June 2024 was $(1,244) thousand, a decline from $17,753 thousand in the same period last year[23] - The adjusted net income (loss) for the three months ended June 2024 was $(6,828) thousand, compared to an adjusted net income of $9,821 thousand in the same period last year[22] Revenue Segmentation - The Gaming Components and Systems segment net revenue was $167.1 million, down from $246.7 million in Q2 2023, while the Gamer and Creator Peripherals segment net revenue increased to $94.2 million from $78.8 million[2] - The Gamer and Creator Peripherals segment grew by 19.6% year-over-year in Q2 2024, marking the third consecutive quarter of strong growth[6] - The company reported a gross margin of 37.9% for Gamer and Creator Peripherals, up from 32.4% in the prior year, indicating improved profitability in that segment[18] Cash and Assets - Cash and restricted cash as of June 30, 2024, was $94.6 million[2] - Cash and restricted cash decreased to $94.3 million as of June 30, 2024, from $178.3 million at the end of 2023[19] - Total current assets decreased to $579.6 million as of June 30, 2024, down from $711.6 million at the end of 2023[19] - Corsair's accounts receivable increased by $28,891 thousand for the three months ended June 2024, compared to a decrease of $697 thousand in the same period last year[20] Future Outlook - Corsair expects full-year 2024 net revenue to be in the range of $1.25 billion to $1.35 billion[7] - Adjusted EBITDA for the full year 2024 is projected to be between $60 million and $75 million[7] - Corsair anticipates a natural refresh cycle in the self-built PC market, likely starting later than expected due to new GPU launches and game releases[5] - Corsair plans to continue exploring a potential acquisition of the Sim racing brand Fanatec, which recently filed for insolvency[6] Other Financial Metrics - The gross profit for the same period was $63.1 million, down 23.9% from $82.8 million year-over-year, resulting in a gross margin of 24.1%[18] - Corsair Gaming, Inc. had a diluted net loss per share of $0.28 for the three months ended June 30, 2024, compared to a diluted net income per share of $0.01 in the same period last year[17] - The company’s total net revenue for the six months ended June 30, 2024, was $598.6 million, a decrease of 11.9% from $679.4 million for the same period in 2023[16] - The company incurred one-time costs related to legal and other matters amounting to $1,056 thousand for the three months ended June 2024[22] - The company reported stock-based compensation of $8,010 thousand for the three months ended June 2024, consistent with $8,174 thousand in the same period of 2023[21] - The company reported a GAAP operating loss margin of -9.5% for the three months ended June 2024, compared to -0.8% for the same period in 2023[21]

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Corsair Gaming, Inc. (NASDAQ:CRSR) Q1 2024 Earnings Conference Call May 7, 2024 5:00 PM ET Company Participants Ronald van Veen - Vice President of Finance and Investor Relations Andy Paul - Chief Executive Officer Michael Potter - Chief Financial Officer Conference Call Participants George Wang - Barclays Capital, Inc. Andrew Crum - Stifel, Nicolaus & Company, Inc. Aaron Lee - Macquarie Group Operator Good afternoon, everyone, and welcome to Corsair Gaming's First Quarter 2024 Earnings Conference Call. As ...

Financial Performance & Guidance - Corsair's Q1'24 net revenue was $337.3 million, a decrease of 4.7% year-over-year[73] - The gross profit margin increased by 160 bps year-over-year to 25.7% in Q1'24[73] - Adjusted EBITDA for Q1'24 was $18.0 million[73] - The company provides 2024 financial guidance with net revenues between $1.45 billion and $1.60 billion, adjusted operating income between $92 million and $112 million, and adjusted EBITDA between $105 million and $125 million[80] Segment Performance - Gamer and Creator Peripherals segment experienced a 20% year-over-year growth in Q1'24[4, 75] - Gamer and Creator Peripherals segment revenue was $107.0 million in Q1'24, compared to $88.9 million in Q1'23[76] - Gross profit margin for the Gamer and Creator Peripherals segment was 40.8% in Q1'24, an increase of 1080 bps compared to Q1'23[76] - Gaming Components and Systems segment revenue was $230.3 million in Q1'24, a decrease of 13.1% year-over-year[76] Market Trends & Product Launches - The company expects a surge in the self-build PC market in the second half of 2024 and 2025 due to the launch of next-generation GPUs and CPUs[15] - Recent launches include the Elgato Neo product line, aimed at the creator market, and new compact keyboard and lightweight mouse products[13, 35]