sair Gaming(CRSR) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Q4 2024 net revenue was $413.6 million, a decrease from$417.3 million in Q4 2023 [24] - Full year 2024 net revenue was $1,316.4 million, down from$1,459.9 million in 2023 [24] - Q4 2024 adjusted EBITDA was $33.1 million compared to$33.7 million in Q4 2023 [32] - Full year 2024 adjusted EBITDA was $54.7 million, down from$95.1 million in 2023 [32] - Q4 2024 net income attributable to common shareholders was $1.3 million or$0.01 per diluted share, compared to $6.2 million or$0.06 per diluted share in Q4 2023 [31] Business Line Data and Key Metrics Changes - Gamer and Creator Peripherals segment revenue in Q4 2024 was $169.6 million, up from$136.8 million in Q4 2023 [25] - Gaming Components and Systems segment revenue in Q4 2024 was $244.1 million, down from$280.5 million in Q4 2023 [26] - Memory products revenue in Q4 2024 was $126.3 million, down from$145.5 million in Q4 2023 [26] - Gross profit for the Gamer and Creator Peripherals segment was $63.9 million in Q4 2024, compared to$50.9 million in Q4 2023 [27] Market Data and Key Metrics Changes - European markets contributed 38% of Q4 2024 revenues, slightly down from 38.4% in Q3 2024 [25] - APAC region contributed 9.1% of Q4 2024 revenues, down from 10.3% in Q3 2024 [25] Company Strategy and Development Direction - The company is focused on integrating the Fanatec sim racing business and expanding its footprint in the sim racing market [10][12] - Corsair aims to capitalize on the anticipated demand from the new GPU launches and the upcoming release of GTA 6 [9][10] - The company plans to continue investing in innovation and reducing operating costs while strengthening its balance sheet [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong demand for high-end components and the successful integration of Fanatec [10][12] - The company expects revenue growth to improve in 2025, with a range of $1.4 billion to$1.6 billion projected [38] - Management noted that the impact of new tariffs has been considered in their guidance, with a focus on mitigating risks [70][74] Other Important Information - The company announced that Andy Paul will retire at the end of Q2 2025, with Thi La set to become the new CEO [17][18] - The company ended Q4 with a cash balance of $109.6 million and$174 million of debt, down $25 million year-over-year [33][34] Q&A Session Summary Question: Is the Fanatec acquisition on track to be completed by the second quarter? - The integration is largely complete, focusing on customer service and logistics improvements [43][44] Question: How have partnerships with Activision and Apple impacted the business? - Significant traffic increase was noted on the website following the Call of Duty: Black Ops 6 launch, indicating a valuable marketing relationship [49][50] Question: What is the expected cadence for the GPU refresh and its impact on revenue? - Anticipation for the GPU refresh is high, with a gradual pickup in sales expected throughout the year [60][62] Question: How does the company view its position regarding tariffs compared to competitors? - The company has mitigated tariff impacts effectively and feels comfortable with its current guidance [74] Question: How beneficial is NVIDIA's AI services business for Corsair? - The company has not targeted data centers but sees potential demand from individuals building workstations for AI models [87][89]