Corsair Gaming, Inc. (NASDAQ:CRSR) (“Corsair”), a leading global
provider and innovator of high-performance gear for gamers and
content creators, today announced financial results for the third
quarter ended September 30, 2020.
Third Quarter 2020
Highlights
- Net revenue was $457.1 million, an
increase of 60.7% year-over-year. Gamer and creator peripherals
segment net revenue was $161.6 million, an increase of 128.8%
year-over-year. Gaming components and systems segment net revenue
was $295.5 million, an increase of 38.3% year-over-year.
- Gross profit was $127.9 million, an
increase of 112.4% year-over-year, with gross margin of 28.0%, an
improvement of 680 basis points year-over-year. Gamer and creator
peripherals segment gross profit was $60.0 million, an increase of
200.8% year-over-year. Gaming components and systems segment gross
profit was $67.9 million, an increase of 68.7% year-over-year.
- Operating income was $49.7 million,
an increase of 353.6% year-over-year.
- Adjusted operating income was $61.4
million, an increase of 193.7% year-over-year.
- Net income was $36.4 million, or
$0.40 per diluted share, compared to net income of $1.5 million in
the same period a year ago, or $0.02 per diluted share.
- Adjusted net income was $48.5
million, or $0.54 per diluted share, an increase of 384.0%
year-over-year compared to adjusted net income of $10.0 million, or
$0.13 per diluted share.
- Adjusted EBITDA was $63.7 million,
an increase of 184.9% year-over-year, with adjusted EBITDA margin
of 13.9%, an improvement of 610 basis points year-over-year.
- As of September 30, 2020, we had
cash and restricted cash of $120.1 million, $48.0 million capacity
under our revolving credit facility and total long-term debt of
$370.1 million.
- Cash flow from operations was $24.7
million, compared to a use of cash in operations of $2.1 million in
the same period a year ago, bringing the 2020 nine month cash flow
from operations to $100.3 million.
Definitions of the non-GAAP financial measures
used in this press release and reconciliations of such measures to
their nearest GAAP equivalents is included below under the heading
“Use and Reconciliation of Non-GAAP Financial Measures.”
“This was a great quarter for us,” stated Andy Paul, Chief
Executive Officer of Corsair. “Consumers continue to learn more
about high performance gaming and streaming gear and are
upgrading. We also believe more new gamers and streamers are
entering the market, as demonstrated by the number of entry level
products we are selling. Also with more time spent at home, and
some great new technology refreshed from Intel, Nvidia and AMD,
there is an increased demand for people to build new Gaming PCs, to
play the latest games on. Today’s youth are digital natives, and
are all playing games on some device, whether PC, console, or
mobile. These are all future potential customers. The games
themselves are becoming more immersive and social each year and,
particularly with the rapid rise of live game streaming, gaming is
taking an ever larger share of the entertainment landscape.”
Paul continued, “We believe Corsair is at the center of this
growing trend with our wide range of gaming and streaming
products. This last quarter was one with very strong demand,
with many major retailers running out of stock of our gear. Our
stock situation has gotten better but only a small part of Q3
revenue came from restocking shelves, with most gear selling as
soon as they hit the shelves. We are ramping up our supply chain
and manufacturing partners as fast as possible, and we expect to
thoughtfully be growing our channel inventory during the next few
months, as well as supporting the continued high demand from our
end customers. We recently released our new flagship gaming
keyboard, the K100, which at $229 is the best keyboard we have
built. We also recently launched two new microphones under our
Elgato brand, Wave 1 and Wave 3, which were sold out within the
first few days of launch. We continue to launch exciting new high
performance products at a fast clip, with approximately one new
product per week.”
“Our recent initial public offering raised net
proceeds of approximately $118.6 million after deducting
underwriting discounts and commissions and before offering
expenses, $86.6 million of which was used to repay outstanding
debt. We plan to continue to utilize our strong cash flow to
further reduce our debt,” stated Michael G. Potter, Chief Financial
Officer of Corsair. “The IPO leaves Corsair well positioned to
continue to execute our growth strategy and to take advantage of
opportunities as they present themselves.”
Financial Outlook
For the full year 2020, we currently expect:
- Net revenue to be in the range of
$1,616 million to $1,631 million.
- Adjusted operating income to be in
the range of $178 million to $184 million.
- Adjusted EBITDA to be in the range
of $187 million to $193 million.
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, public offering
related charges, depreciation and amortization, severance, IPO
costs 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.
Please see “Use and Reconciliation of Non-GAAP
Financial Measures” below for a discussion on how we calculate the
non-GAAP measures presented herein and a reconciliation to the most
directly comparable GAAP measure.
Recent Developments
- In September 2020, we completed our
initial public offering (“IPO”) of our stock at a price of $17.00
per share. We and certain selling stockholders completed the sale
of 15.1 million shares, including 1.1 million shares issued
pursuant to the underwriters’ option to purchase additional shares.
The IPO raised proceeds net of underwriting fees of approximately
$118.6 million for us.
- On November 9, 2020, we announced
the acquisition of Gamer Sensei, the world’s biggest gaming
coaching platform.
- On November 9, 2020, Elgato along
with us, the parent company, announced a multi-year partnership
with Pipeline, the leading training and mentorship platform for
aspiring live streamers.
- On October 29, 2020, we announced
the acquisition of EpocCam, one of the leading video apps in the
Apple App Store with over 5 million downloads, which allows users
to easily turn their iOS device, such as an iPhone or iPad, into a
wireless high definition webcam for Windows and macOS. EpocCam
works seamlessly with major video applications such as Zoom, Skype,
OBS Studio, Google Meet or Microsoft Teams to chat, stream, or
record in HD resolution.
- On October 22, 2020, we announced
the launch of our first officially licensed headset for Microsoft
XBOX, the CORSAIR HS75 XB WIRELESS Gaming Headset. Compatible with
Xbox One and the upcoming next-generation Xbox Series X and Series
S, the HS75 XB WIRELESS delivers the fantastic sound and comfort
that the CORSAIR HS Series is known for.
- On October 15, 2020, we announced
the launch of the HS60 HAPTIC, the latest addition to the
award-winning HS Series of PC headsets. The HS60 HAPTIC delivers
deeper, more powerful sound than can be achieved through just
speakers alone thanks to haptic bass developed by Taction
Technology®.
- On October 13, 2020, we announced
the launch of the new K60 RGB PRO, the first Corsair keyboard to
feature CHERRY VIOLA keyswitches. Delivering an essential gaming
experience without compromising on style or substance, the K60 RGB
PRO is built with a durable aluminum frame, vibrant, per-key RGB
backlighting, and new 100% German-made CHERRY VIOLA mechanical
keyswitches, featuring smooth linear travel and reliable inputs to
secure clutch victories when they matter most.
- On October 8, 2020, we announced
the launch of the new Corsair MP400 Gen3 PCIe x4 NVMe M.2 Solid
State Drive, taking advantage of 3D QLC NAND technology to store
massive amounts of data with lightning-fast transfer speeds of up
to 3,400MB/sec sequential read and 3,000MB/sec sequential
write.
- On October 6, 2020, we announced
the launch of the KATAR PRO WIRELESS Gaming Mouse powered by
SLIPSTREAM WIRELESS technology. At just 96g, it is well-suited to
fast-paced FPS and MOBA gameplay.
- On October 1, 2020, we announced
the launch of our new flagship gaming keyboard, Corsair K100 RGB.
Every detail is built for speed, starting with new Corsair AXON
Hyper-Processing Technology, delivering your inputs up to four
times faster than conventional gaming keyboards. The Corsair K100
RGB is equipped with a wide array of premium features that enhance
both form and function, such as a refined aluminum frame, a
multi-function iCUE control dial, a 44-zone RGB LightEdge, and PBT
double-shot keycaps with a standard bottom row.
- On September 17, 2020, we announced
a new series of range-topping models to the acclaimed Corsair
VENGEANCE lineup of gaming PCs, the VENGEANCE i7200 Series.
Equipped with a 10th Gen Intel® Core™ CPU, these formidable systems
are the first in the VENGEANCE PC lineup to feature the raw
ray-tracing power of new NVIDIA® GeForce RTX™ 3080 and 3090 GPUs,
complete with a full range of award-winning Corsair components,
including new Corsair 4000D AIRFLOW Cases.
- On September 15, 2020, we launched
a new generation of all-in-one liquid CPU coolers offering stunning
looks and powerful, quiet cooling. The H100i ELITE CAPELLIX, H115i
ELITE CAPELLIX, and H150i ELITE CAPELLIX combine the latest in
liquid CPU cooling performance with vibrant RGB lighting powered by
CAPELLIX LEDs, easier setup, and enhanced control, giving
enthusiasts more from their Corsair liquid CPU cooler than ever
before.
- On September 15, 2020, we launched
the new 4000 Series of enthusiast PC cases, introducing three new
models to our award-winning lineup - the 4000D, 4000D AIRFLOW, and
4000X RGB.
- On August 25, 2020, we released two
new comprehensive kits in our Hydro X Series line of custom cooling
parts: the Corsair XH305i RGB and XH303i RGB Custom Cooling Kits.
Making custom cooling accessible even to beginners, these kits come
with everything you need to build a stunning hardline loop for your
PC, complete with an RGB CPU water block, single 360mm radiator,
three RGB fans, PMMA clear hardline tubing, a hardline
cutting/bending kit, fittings and adapters, and coolant.
- On July 14, 2020, we launched the
versatile Corsair iCUE NEXUS Companion Touch Screen, a new
accessory that puts the power of CORSAIR iCUE software at your
fingertips. The iCUE NEXUS delivers convenient access to iCUE’s
powerful features, such as real-time system monitoring and
programmable macros. With the ability to program more than 200
screens, each displaying up to six virtual buttons using custom
drag-and-drop graphics, the iCUE NEXUS also adds an extra layer of
personalization to any PC enthusiast’s setup.
Conference Call and Webcast
Information
We will host a conference call to discuss the
third quarter 2020 financial results on November 10, 2020, at 5:30
a.m. PT. The conference call can be accessed live over the phone by
dialing 1-877-407-0784, or for international callers
1-201-689-8560. A replay will be available from 8:30 a.m. PT on
November 10, 2020 through November 17, 2020, by dialing
1-844-512-2921, or for international callers 1-412-317-6671. The
replay passcode is 13712053.
The call will also be webcast live from our
investor relations website at https://ir.corsair.com. Following
completion of the call, a recorded replay of the webcast will be
available on the website.
About Corsair Gaming, Inc.
Corsair Gaming, Inc. (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 our Elgato brand,
which provides premium studio equipment and accessories for content
creators, SCUF Gaming brand, which builds custom-designed
controllers for competitive gamers, and ORIGIN PC brand, a builder
of custom gaming and workstation desktop PCs and laptops.
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, our estimated full year 2020 net
revenue, adjusted EBITDA and adjusted operating income, as well as
our belief that more new gamers and streamers are entering the
market, that there is an increased demand for people to build new
gaming PCs and our expectations regarding ramping up our supply
chain and manufacturing capabilities and our potential growth of
channel inventory to meet customer demand. 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: 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; 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; 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-party’s
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, consumer confidence and
spending.; and the other factors described under the heading “Risk
Factors” in our final prospectus filed with the Securities and
Exchange Commission (“SEC”) on September 24, 2020, in our Quarterly
Report on Form 10-Q for the quarter ended September 30, 2020 (once
available) 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 results for the quarter ended September 30, 2020
are not necessarily indicative of our operating results for any
future periods.
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, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net
Income and Adjusted Net Income Per Share. 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, Adjusted
EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted
Net Income Per Share to evaluate our operating performance and
trends and make planning decisions. We believe that these non-GAAP
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 Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA
Margin, Adjusted Net Income and Adjusted Net Income Per Share
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
performance measures because we believe investors, analysts and
rating agencies consider them 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 revenues, operating income,
net income, 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,
non-GAAP, is determined by adding back to GAAP operating income the
acquisition accounting impacts related to recognizing acquired
inventory at fair value, stock-based compensation, intangible asset
amortization, certain acquisition-related and integration-related
expenses, executive transition costs, other non-deferred costs
associated with the IPO, and debt modification costs.
- Adjusted net income, non-GAAP, is
determined by adding back to GAAP net income (loss) the acquisition
accounting impacts related to recognizing acquired inventory at
fair value, stock-based compensation, intangible asset
amortization, certain acquisition-related and integration-related
expenses, executive transition costs, non-deferred costs associated
with the IPO, debt modification costs, loss on extinguishment of
debt, and the related tax effects of each of these
adjustments.
- Adjusted net income per diluted
share, non-GAAP, is determined by dividing adjusted net income,
non-GAAP by the respective weighted average shares outstanding,
inclusive of the impact of options to purchase such common
stock.
- Adjusted EBITDA is determined by
adding back to GAAP net income (loss) the acquisition accounting
impacts related to recognizing acquired inventory at fair value,
stock-based compensation, certain acquisition-related and
integration-related expenses, executive transition costs,
non-deferred costs associated with the IPO, debt modification
costs, intangible asset amortization, depreciation and
amortization, interest expense (including loss on extinguishment of
debt) and tax expense (benefit).
- Adjusted EBITDA margin is
determined by dividing adjusted EBITDA by net revenue for the
respective periods.
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.
Source: Corsair Gaming, Inc.
Investor Relations Contact:
Ronald van Veenir@corsair.com 510-578-1407
Media Contact:
Adrian
Bedggoodadrian.bedggood@corsair.com510-657-8747+44-7989-258827
Corsair Gaming,
Inc.Condensed Combined
Consolidated Statements of Operations(Unaudited,
in thousands, except per share amounts)
|
|
Three Months
EndedSeptember 30, |
|
|
Nine Months
EndedSeptember 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net revenue |
|
$ |
457,103 |
|
|
$ |
284,372 |
|
|
$ |
1,146,028 |
|
|
$ |
770,619 |
|
Cost of revenue |
|
|
329,159 |
|
|
|
224,145 |
|
|
|
834,398 |
|
|
|
616,785 |
|
Gross profit |
|
|
127,944 |
|
|
|
60,227 |
|
|
|
311,630 |
|
|
|
153,834 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales, general and administrative |
|
|
65,321 |
|
|
|
39,811 |
|
|
|
175,877 |
|
|
|
115,992 |
|
Product development |
|
|
12,902 |
|
|
|
9,454 |
|
|
|
36,285 |
|
|
|
28,353 |
|
Total operating expenses |
|
|
78,223 |
|
|
|
49,265 |
|
|
|
212,162 |
|
|
|
144,345 |
|
Operating income |
|
|
49,721 |
|
|
|
10,962 |
|
|
|
99,468 |
|
|
|
9,489 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(10,170 |
) |
|
|
(9,119 |
) |
|
|
(29,116 |
) |
|
|
(27,063 |
) |
Other (expense) income, net |
|
|
23 |
|
|
|
(399 |
) |
|
|
(29 |
) |
|
|
(1,477 |
) |
Total other expense, net |
|
|
(10,147 |
) |
|
|
(9,518 |
) |
|
|
(29,145 |
) |
|
|
(28,540 |
) |
Income (loss) before income
taxes |
|
|
39,574 |
|
|
|
1,444 |
|
|
|
70,323 |
|
|
|
(19,051 |
) |
Income tax (expense) benefit |
|
|
(3,217 |
) |
|
|
75 |
|
|
|
(10,149 |
) |
|
|
4,645 |
|
Net income (loss) |
|
$ |
36,357 |
|
|
$ |
1,519 |
|
|
$ |
60,174 |
|
|
$ |
(14,406 |
) |
Net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.43 |
|
|
$ |
0.02 |
|
|
$ |
0.71 |
|
|
$ |
(0.19 |
) |
Diluted |
|
$ |
0.40 |
|
|
$ |
0.02 |
|
|
$ |
0.69 |
|
|
$ |
(0.19 |
) |
Weighted-average shares used
to compute net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
84,871 |
|
|
|
75,939 |
|
|
|
84,352 |
|
|
|
75,928 |
|
Diluted |
|
|
90,084 |
|
|
|
77,884 |
|
|
|
87,499 |
|
|
|
75,928 |
|
Corsair Gaming,
Inc.Segment Information(Unaudited, in
thousands, except percentages)
|
|
Three Months
EndedSeptember 30, |
|
|
Nine Months
EndedSeptember 30, |
|
|
|
2020 |
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
and Creator Peripherals |
|
$ |
161,555 |
|
|
$ |
70,606 |
|
|
$ |
347,531 |
|
|
$ |
200,084 |
|
Gaming
and Component and Systems |
|
|
295,548 |
|
|
|
213,766 |
|
|
|
798,497 |
|
|
|
570,535 |
|
Total Net Revenue |
|
$ |
457,103 |
|
|
$ |
284,372 |
|
|
$ |
1,146,028 |
|
|
$ |
770,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
and Creator Peripherals |
|
|
37.1 |
% |
|
|
28.3 |
% |
|
|
34.8 |
% |
|
|
29.1 |
% |
Gaming
and Component and Systems |
|
|
23.0 |
% |
|
|
18.8 |
% |
|
|
23.9 |
% |
|
|
16.8 |
% |
Total Gross Margin |
|
|
28.0 |
% |
|
|
21.2 |
% |
|
|
27.2 |
% |
|
|
20.0 |
% |
Corsair Gaming,
Inc.Condensed Combined
Consolidated Balance Sheets(Unaudited, in
thousands, except per share amounts)
|
|
September 30,2020 |
|
|
December 31,2019 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and restricted cash |
|
$ |
119,911 |
|
|
$ |
51,717 |
|
Accounts receivable, net |
|
|
259,542 |
|
|
|
202,334 |
|
Inventories |
|
|
210,151 |
|
|
|
151,063 |
|
Prepaid expenses and other current assets |
|
|
38,014 |
|
|
|
24,696 |
|
Total current assets |
|
|
627,618 |
|
|
|
429,810 |
|
Property and equipment,
net |
|
|
15,404 |
|
|
|
15,365 |
|
Goodwill |
|
|
311,573 |
|
|
|
312,750 |
|
Intangible assets, net |
|
|
265,446 |
|
|
|
291,027 |
|
Restricted cash,
noncurrent |
|
|
230 |
|
|
|
230 |
|
Other assets |
|
|
35,449 |
|
|
|
10,536 |
|
TOTAL ASSETS |
|
$ |
1,255,720 |
|
|
$ |
1,059,718 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
274,771 |
|
|
$ |
182,025 |
|
Current portion of debt, net |
|
|
— |
|
|
|
2,364 |
|
Other liabilities and accrued expenses |
|
|
169,586 |
|
|
|
115,541 |
|
Total current liabilities |
|
|
444,357 |
|
|
|
299,930 |
|
Debt, net |
|
|
370,090 |
|
|
|
503,448 |
|
Deferred tax liabilities |
|
|
30,655 |
|
|
|
33,820 |
|
Other liabilities,
noncurrent |
|
|
22,066 |
|
|
|
5,745 |
|
TOTAL LIABILITIES |
|
|
867,168 |
|
|
|
842,943 |
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
Common stock and additional paid-in capital |
|
|
437,216 |
|
|
|
324,976 |
|
Accumulated deficit |
|
|
(45,856 |
) |
|
|
(106,030 |
) |
Accumulated other comprehensive loss |
|
|
(2,808 |
) |
|
|
(2,171 |
) |
Total Stockholders’ Equity |
|
|
388,552 |
|
|
|
216,775 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
$ |
1,255,720 |
|
|
$ |
1,059,718 |
|
Corsair Gaming,
Inc.Condensed Combined
Consolidated Statements of Cash Flows(Unaudited,
in thousands)
|
|
Three Months
EndedSeptember 30, |
|
|
Nine Months
EndedSeptember 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
36,357 |
|
|
$ |
1,519 |
|
|
$ |
60,174 |
|
|
$ |
(14,406 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
1,631 |
|
|
|
867 |
|
|
|
4,286 |
|
|
|
2,813 |
|
Depreciation |
|
|
2,342 |
|
|
|
1,871 |
|
|
|
6,706 |
|
|
|
5,448 |
|
Amortization of intangible assets |
|
|
8,505 |
|
|
|
7,407 |
|
|
|
25,344 |
|
|
|
23,551 |
|
Debt issuance costs amortization |
|
|
708 |
|
|
|
729 |
|
|
|
1,990 |
|
|
|
2,281 |
|
Loss on debt extinguishment |
|
|
2,864 |
|
|
|
— |
|
|
|
3,256 |
|
|
|
— |
|
Deferred income taxes |
|
|
(5,361 |
) |
|
|
(2,550 |
) |
|
|
(6,892 |
) |
|
|
(7,257 |
) |
Other |
|
|
332 |
|
|
|
477 |
|
|
|
1,070 |
|
|
|
598 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(39,776 |
) |
|
|
(14,605 |
) |
|
|
(58,067 |
) |
|
|
(10,573 |
) |
Inventories |
|
|
(61,957 |
) |
|
|
(20,224 |
) |
|
|
(60,886 |
) |
|
|
(13,021 |
) |
Prepaid expenses and other assets |
|
|
(25,594 |
) |
|
|
(3,635 |
) |
|
|
(20,431 |
) |
|
|
(3,312 |
) |
Accounts payable |
|
|
77,544 |
|
|
|
18,118 |
|
|
|
92,772 |
|
|
|
2,065 |
|
Other liabilities and accrued expenses |
|
|
27,121 |
|
|
|
7,910 |
|
|
|
51,002 |
|
|
|
12,947 |
|
Net cash provided by (used in) operating activities |
|
|
24,716 |
|
|
|
(2,116 |
) |
|
|
100,324 |
|
|
|
1,134 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of business, net of cash acquired |
|
|
(836 |
) |
|
|
(4,698 |
) |
|
|
(836 |
) |
|
|
(4,846 |
) |
Payment of deferred consideration |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,300 |
) |
Purchase of property and equipment |
|
|
(2,066 |
) |
|
|
(1,641 |
) |
|
|
(5,072 |
) |
|
|
(7,003 |
) |
Net cash used in investing activities |
|
|
(2,902 |
) |
|
|
(6,339 |
) |
|
|
(5,908 |
) |
|
|
(22,149 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of debt |
|
|
(126,574 |
) |
|
|
(900 |
) |
|
|
(140,394 |
) |
|
|
(2,775 |
) |
Payment of debt issuance costs |
|
|
(194 |
) |
|
|
(150 |
) |
|
|
(194 |
) |
|
|
(150 |
) |
Repayment of line of credit, net |
|
|
— |
|
|
|
8,200 |
|
|
|
— |
|
|
|
8,700 |
|
Proceeds from initial public offering and private placement,
net of underwriting discounts and commissions |
|
|
118,575 |
|
|
|
— |
|
|
|
118,575 |
|
|
|
— |
|
Payment of other offering costs |
|
|
(5,313 |
) |
|
|
(46 |
) |
|
|
(5,582 |
) |
|
|
(108 |
) |
Repurchase of common stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(569 |
) |
Proceeds from exercise of stock options |
|
|
259 |
|
|
|
53 |
|
|
|
1,224 |
|
|
|
80 |
|
Net cash provided by (used in) financing activities |
|
|
(13,247 |
) |
|
|
7,157 |
|
|
|
(26,371 |
) |
|
|
5,178 |
|
Effect of exchange rate
changes on cash |
|
|
259 |
|
|
|
135 |
|
|
|
149 |
|
|
|
46 |
|
Net increase (decrease) in
cash and restricted cash |
|
|
8,826 |
|
|
|
(1,163 |
) |
|
|
68,194 |
|
|
|
(15,791 |
) |
Cash and restricted cash at
the beginning of the period |
|
|
111,315 |
|
|
|
13,292 |
|
|
|
51,947 |
|
|
|
27,920 |
|
Cash and restricted cash at
the end of the period |
|
$ |
120,141 |
|
|
$ |
12,129 |
|
|
$ |
120,141 |
|
|
$ |
12,129 |
|
Corsair Gaming, Inc.GAAP
to Non-GAAP Reconciliations(Unaudited, in thousands,
except per share amounts and percentages)
|
|
Three Months
EndedSeptember 30, |
|
|
Nine Months
EndedSeptember 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Operating Income - GAAP |
|
$ |
49,721 |
|
|
$ |
10,962 |
|
|
$ |
99,468 |
|
|
$ |
9,489 |
|
Acquisition accounting impacts
related to recognizing acquired inventory at fair value |
|
|
- |
|
|
|
- |
|
|
|
394 |
|
|
|
- |
|
Stock-based compensation |
|
|
1,631 |
|
|
|
867 |
|
|
|
4,286 |
|
|
|
2,813 |
|
Intangible asset
amortization |
|
|
8,505 |
|
|
|
7,408 |
|
|
|
25,344 |
|
|
|
23,552 |
|
Acquisition-related and
integration-related costs |
|
|
726 |
|
|
|
1,270 |
|
|
|
2,476 |
|
|
|
1,849 |
|
Executive transition
costs |
|
|
- |
|
|
|
129 |
|
|
|
- |
|
|
|
540 |
|
Non-deferred IPO costs |
|
|
451 |
|
|
|
259 |
|
|
|
1,205 |
|
|
|
911 |
|
Debt modification costs |
|
|
335 |
|
|
|
- |
|
|
|
623 |
|
|
|
- |
|
Adjusted Operating Income - Non-GAAP |
|
$ |
61,369 |
|
|
$ |
20,895 |
|
|
$ |
133,796 |
|
|
$ |
39,154 |
|
As a % of net revenue -
GAAP |
|
|
10.9 |
% |
|
|
3.9 |
% |
|
|
8.7 |
% |
|
|
1.2 |
% |
As a % of net revenue -
Non-GAAP |
|
|
13.4 |
% |
|
|
7.3 |
% |
|
|
11.7 |
% |
|
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
EndedSeptember 30, |
|
|
Nine Months
EndedSeptember 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net Income (Loss) - GAAP |
|
$ |
36,357 |
|
|
$ |
1,519 |
|
|
$ |
60,174 |
|
|
$ |
(14,406 |
) |
Acquisition accounting impacts
related to recognizing acquired inventory at fair value |
|
|
- |
|
|
|
- |
|
|
|
394 |
|
|
|
- |
|
Stock-based compensation |
|
|
1,631 |
|
|
|
867 |
|
|
|
4,286 |
|
|
|
2,813 |
|
Intangible asset
amortization |
|
|
8,505 |
|
|
|
7,408 |
|
|
|
25,344 |
|
|
|
23,552 |
|
Acquisition-related and
integration-related costs |
|
|
726 |
|
|
|
1,270 |
|
|
|
2,476 |
|
|
|
1,849 |
|
Executive transition
costs |
|
|
- |
|
|
|
129 |
|
|
|
- |
|
|
|
540 |
|
Non-deferred IPO costs |
|
|
451 |
|
|
|
259 |
|
|
|
1,205 |
|
|
|
911 |
|
Debt modification costs |
|
|
335 |
|
|
|
- |
|
|
|
623 |
|
|
|
- |
|
Loss on debt
extinguishment |
|
|
2,864 |
|
|
|
- |
|
|
|
3,256 |
|
|
|
- |
|
Non-GAAP income tax
adjustment |
|
|
(2,386 |
) |
|
|
(1,435 |
) |
|
|
(5,818 |
) |
|
|
(4,596 |
) |
Adjusted Net Income - Non-GAAP |
|
$ |
48,483 |
|
|
$ |
10,017 |
|
|
$ |
91,940 |
|
|
$ |
10,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
$ |
0.40 |
|
|
$ |
0.02 |
|
|
$ |
0.69 |
|
|
$ |
(0.19 |
) |
Adjusted, Non-GAAP |
|
$ |
0.54 |
|
|
$ |
0.13 |
|
|
$ |
1.05 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to compute
diluted net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
90,084 |
|
|
|
77,884 |
|
|
|
87,499 |
|
|
|
75,928 |
|
Adjusted, Non-GAAP |
|
|
90,084 |
|
|
|
77,884 |
|
|
|
87,499 |
|
|
|
77,713 |
|
Corsair Gaming,
Inc.Adjusted EBITDA
Reconciliations(Unaudited, in thousands, except
percentages)
|
|
Three Months
EndedSeptember 30, |
|
|
Nine Months
EndedSeptember 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net Income (Loss) - GAAP |
|
$ |
36,357 |
|
|
$ |
1,519 |
|
|
$ |
60,174 |
|
|
$ |
(14,406 |
) |
Acquisition accounting impacts
related to recognizing acquired inventory at fair value |
|
|
- |
|
|
|
- |
|
|
|
394 |
|
|
|
- |
|
Stock-based compensation |
|
|
1,631 |
|
|
|
867 |
|
|
|
4,286 |
|
|
|
2,813 |
|
Acquisition-related and
integration-related costs |
|
|
726 |
|
|
|
1,270 |
|
|
|
2,476 |
|
|
|
1,849 |
|
Executive transition
costs |
|
|
- |
|
|
|
129 |
|
|
|
- |
|
|
|
540 |
|
Non-deferred IPO costs |
|
|
451 |
|
|
|
259 |
|
|
|
1,205 |
|
|
|
911 |
|
Debt modification costs |
|
|
335 |
|
|
|
- |
|
|
|
623 |
|
|
|
- |
|
Intangible asset
amortization |
|
|
8,505 |
|
|
|
7,408 |
|
|
|
25,344 |
|
|
|
23,552 |
|
Depreciation |
|
|
2,341 |
|
|
|
1,871 |
|
|
|
6,705 |
|
|
|
5,448 |
|
Interest expense (include loss
on debt extinguishment) |
|
|
10,170 |
|
|
|
9,119 |
|
|
|
29,116 |
|
|
|
27,063 |
|
Tax expense (benefit) |
|
|
3,217 |
|
|
|
(75 |
) |
|
|
10,149 |
|
|
|
(4,645 |
) |
Adjusted EBITDA - Non-GAAP |
|
$ |
63,733 |
|
|
$ |
22,367 |
|
|
$ |
140,472 |
|
|
$ |
43,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin -
Non-GAAP |
|
|
13.9 |
% |
|
|
7.9 |
% |
|
|
12.3 |
% |
|
|
5.6 |
% |
Corsair Gaming (NASDAQ:CRSR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Corsair Gaming (NASDAQ:CRSR)
Historical Stock Chart
From Apr 2023 to Apr 2024