Corsair Gaming, Inc. (NASDAQ:CRSR) (“Corsair”), a leading global
provider and innovator of high-performance gear for gamers and
content creators, today announced preliminary financial results for
the fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020
Highlights
- Net revenue was
$556.3 million, an increase of 70.4% year-over-year. Gamer and
creator peripherals segment net revenue was $191.8 million, an
increase of 104.0% year-over-year. Gaming components and systems
segment net revenue was $364.5 million, an increase of 56.8%
year-over-year.
- Gross profit was
$153.8 million, an increase of 118.3% year-over-year, with gross
margin of 27.6%, an improvement of 600 basis points year-over-year.
Gamer and creator peripherals segment gross profit was $68.9
million, an increase of 197.7% year-over-year. Gaming components
and systems segment gross profit was $84.9 million, an increase of
79.5% year-over-year.
- Operating income
was $58.9 million, an increase of 314.2% year-over-year.
- Adjusted
operating income was $71.0 million, an increase of 166.9%
year-over-year.
- Net income was
$43.0 million, or $0.43 per diluted share, compared to net income
of $6.0 million in the same period a year ago, or $0.08 per diluted
share.
- Adjusted net
income was $53.0 million, or $0.53 per diluted share, an increase
of 214.8% year-over-year compared to adjusted net income of $16.8
million in the same period a year ago, or $0.21 per diluted
share.
- Adjusted EBITDA
was $72.5 million, an increase of 154.7% year-over-year, with
adjusted EBITDA margin of 13.0%, an improvement of 430 basis points
year-over-year.
- As of December
31, 2020, we had cash and restricted cash of $133.6 million, $48.1
million capacity under our revolving credit facility and total
long-term debt of $321.4 million.
- Cash flows from
operations was $68.6 million, which increased from $36.0 million in
the same period a year ago, bringing the full year 2020 cash flow
from operations to $169.0 million.
Full Year 2020 Highlights
- Net revenue was
$1.7 billion, an increase of 55.2% year-over-year. Gamer and
creator peripherals segment net revenue was $539.4 million, an
increase of 83.4% year-over-year. Gaming components and systems
segment net revenue was $1,163.0 million, an increase of 44.8%
year-over-year.
- Gross profit was
$465.4 million, an increase of 107.5% year-over-year, with gross
margin of 27.3%, an improvement of 690 basis points year-over-year.
Gamer and creator peripherals segment gross profit was $189.7
million, an increase of 133.2% year-over-year. Gaming components
and systems segment gross profit was $275.7 million, an increase of
92.9% year-over-year.
- Operating income
was $158.4 million, an increase of 568.0% year-over-year.
- Adjusted
operating income was $204.8 million, an increase of 211.4%
year-over-year.
- Net income was
$103.2 million, or $1.14 per diluted share, compared to net loss of
$8.4 million in the same period a year ago, or $(0.11) per diluted
share.
- Adjusted net
income was $145.0 million, or $1.60 per diluted share, an increase
of 427.0% year-over-year compared to adjusted net income of $27.5
million, or $0.35 per diluted share.
- Adjusted EBITDA
was $213.0 million, an increase of 197.5% year-over-year, with
adjusted EBITDA margin of 12.5%, an improvement of 600 basis points
year-over-year.
Definitions of the non-GAAP financial measures
used in this press release and reconciliations of such measures to
their nearest GAAP equivalents are included below under the heading
“Use and Reconciliation of Non-GAAP Financial Measures.”
“We are excited to see the market for gaming and
streaming product continue to grow at such a pace. It is
clear that a new wave of gamers and streamers has entered the
market as well as consumers building gaming PCs for the first
time. Our expectation is that all these people that are new
to the market will continue to buy gaming and streaming products
from us for many years into the future. I am particularly
pleased that the revenue from our gaming components and systems
segment is now over $1 billion. And equally happy to see our
gamer and creator peripherals segment grow by 83% and break through
the half billion milestone. Obviously this is amazing growth
in both segments. We continue to bring out exciting new
product in all our product lines, and these seem to be resonating
well with our current and new customers. In fact our last
three major product launches, the K100 keyboard, the Elgato Wave
microphone, and the 4000X gaming case, are all showing near 5 star
reviews at major retailers, and gained solid market share in a
short time,” stated Andy Paul, Chief Executive Officer of
Corsair.
“We are extremely pleased with our financial
performance in the fourth quarter. We have paid off an
additional $50 million in debt during the quarter, making the total
debt repayment $190 million for 2020. We expect to continue
to use our operating cashflows to reduce our debt and continue to
invest in growth. We also had a successful secondary offering
this January, with all net proceeds going to the selling
shareholders participating in the secondary,” said Michael G.
Potter, Chief Financial Officer of Corsair.
Financial Outlook
For the full year 2021, we currently expect:
- Net revenue to
be in the range of $1.8 billion to $1.95 billion.
- Adjusted
operating income to be in the range of $205 million to $220
million.
- Adjusted EBITDA
to be in the range of $215 million to $230 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
- On February 1, 2021, in the patent
infringement case, Ironburg Inventions Ltd. v. Valve Corp, the jury
unanimously found that Valve Corp infringed Ironburg’s controller
patent and awarded Corsair’s subsidiary Ironburg (a subsidiary of
SCUF) over $4 million. In addition, the jury unanimously
found willful infringement by Valve Crop. The jury verdict of
willful infringement is the first step to a potential award of
enhanced damages up to the statutory limit of treble damages.
- On January 26, 2021, Corsair closed
its follow-on public offering by selling stockholders of 8,625,000
shares of its common stock at a price of $35.00 per share.
The total gross proceeds from the offering, before deducting
underwriting discounts and commissions and other offering expenses
were approximately $301,875,000. The selling stockholders
received all of the net proceeds from the offering.
- On January 12, 2021 Corsair
announced the promotion of Thi La to President and COO, as well as
other senior leadership promotions.
- On January 28, 2021 Corsair
launched three new Corsair Gen 4 PCIe x4 NVMe M.2 Solid State
Drives – the MP600 CORE, MP600 PRO and MP600 PRO Hydro X
Edition. All MP600 SSDs store massive amounts of data with
lightning-fast transfer speeds, leveraging PCIe technology for
incredible sustained performance.
- On January 21, 2021 Corsair
launched its Vengeance RGB PRO SL high-performance DDR4 memory
kits. Initially available in a wide range of frequencies up
to 3,600MHz and kits up to 128GB (4x32GB) in both black and white,
VENGEANCE RGB PRO SL boasts dynamic ten-zone RGB lighting in a
form-factor just 44mm tall, offering wide compatibility with nearly
any PC build. Each module is tightly screened and optimized for
peak performance and overclocking potential, for memory that
matches its mesmerizing visuals with equally impressive
performance.
- On January 14, 2021 Corsair
launched a new series of mid-tower ATX cases to suit nearly
any build: the Corsair 5000D, 5000D AIRFLOW and the iCUE 5000X RGB.
Every 5000 Series case offers simple and tidy cable management
thanks to the Corsair RapidRoute cable management system, terrific
cooling from included fans featuring Corsair AirGuide technology
and a spacious interior that fits multiple radiators, including two
360mm simultaneously. Between the understated styling of the 5000D,
the optimized airflow of the 5000D AIRFLOW, and the eye-catching
RGB lighting behind four beautiful tempered glass panels of the
5000X RGB, the 5000 Series has a case to meet any builder’s
priorities.
- On December 9, 2020 Corsair under
its SCUF brand unveiled the new SCUF H1 customizable wired gaming
headset. Based on the design and technology of the award-winning
CORSAIR VIRTUOSO headset, the H1 is customizable and tailored for
competitive gamers who prefer the zero-latency provided by a wired
headset. The SCUF H1’s lightweight design is fully
configurable and built for comfort, with immersive sound and a
high-resolution interchangeable microphone to make crucial callouts
that can be the difference between a victory or a loss. Every
rustle of footsteps in a grassy field and every far-off missile
strike is delivered with clear fidelity, almost doubling the audio
frequency of most gaming headsets.
Conference Call and Webcast
Information
We will host a conference call to discuss the
fourth quarter and full year 2020 financial results on February 9,
2021, 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 February 9, 2021 through February 16, 2021, by dialing
1-844-512-2921, or for international callers 1-412-317-6671. The
replay passcode is 13715251.
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 2021 net
revenue, adjusted operating income and adjusted EBITDA, as well as
our belief that more new gamers and streamers are entering the
market and that they will continue to buy gaming and
streaming products from us for many years into the future.
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 Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission (“SEC”) on
November 10, 2020, in our Annual Report on Form 10-K for the year
ended December 31, 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 and
full year ended December 31, 2020 are not necessarily indicative of
our operating results for any future periods.
Use and Reconciliation of Non-GAAP
Financial Measures
To supplement the preliminary 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 deferred revenue and inventory at fair value,
change in fair value of contingent consideration for business
acquisition, stock-based compensation, intangible asset
amortization, certain acquisition-related and integration-related
expenses, executive transition costs, non-deferred costs associated
with the IPO and the secondary offering, 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 deferred revenue and inventory at fair value, change in
fair value of contingent consideration for business acquisition,
stock-based compensation, intangible asset amortization, certain
acquisition-related and integration-related expenses, executive
transition costs, non-deferred costs associated with the IPO and
the secondary offering, 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 other dilutive
securities.
- Adjusted EBITDA
is determined by adding back to GAAP net income (loss) the
acquisition accounting impacts related to recognizing acquired
deferred revenue and inventory at fair value, change in fair value
of contingent consideration for business acquisition, stock-based
compensation, certain acquisition-related and integration-related
expenses, executive transition costs, non-deferred costs associated
with the IPO and the secondary offering, 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.Preliminary Condensed Combined Consolidated
Statements of Operations(Unaudited, in thousands, except
per share amounts)
|
|
Three Months
EndedDecember 31, |
|
|
Year EndedDecember 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net revenue |
|
$ |
556,339 |
|
|
$ |
326,555 |
|
|
$ |
1,702,367 |
|
|
$ |
1,097,174 |
|
Cost of revenue |
|
|
402,540 |
|
|
|
256,102 |
|
|
|
1,236,938 |
|
|
|
872,887 |
|
Gross profit |
|
|
153,799 |
|
|
|
70,453 |
|
|
|
465,429 |
|
|
|
224,287 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales, general and administrative |
|
|
81,127 |
|
|
|
47,041 |
|
|
|
257,004 |
|
|
|
163,033 |
|
Product development |
|
|
13,779 |
|
|
|
9,194 |
|
|
|
50,064 |
|
|
|
37,547 |
|
Total operating expenses |
|
|
94,906 |
|
|
|
56,235 |
|
|
|
307,068 |
|
|
|
200,580 |
|
Operating income |
|
|
58,893 |
|
|
|
14,218 |
|
|
|
158,361 |
|
|
|
23,707 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(6,021 |
) |
|
|
(8,485 |
) |
|
|
(35,137 |
) |
|
|
(35,548 |
) |
Other expense, net |
|
|
(1,153 |
) |
|
|
(81 |
) |
|
|
(1,182 |
) |
|
|
(1,558 |
) |
Total other expense, net |
|
|
(7,174 |
) |
|
|
(8,566 |
) |
|
|
(36,319 |
) |
|
|
(37,106 |
) |
Income (loss) before income
taxes |
|
|
51,719 |
|
|
|
5,652 |
|
|
|
122,042 |
|
|
|
(13,399 |
) |
Income tax (expense) benefit |
|
|
(8,676 |
) |
|
|
360 |
|
|
|
(18,825 |
) |
|
|
5,005 |
|
Net income (loss) |
|
$ |
43,043 |
|
|
$ |
6,012 |
|
|
$ |
103,217 |
|
|
$ |
(8,394 |
) |
Net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.47 |
|
|
$ |
0.08 |
|
|
$ |
1.20 |
|
|
$ |
(0.11 |
) |
Diluted |
|
$ |
0.43 |
|
|
$ |
0.08 |
|
|
$ |
1.14 |
|
|
$ |
(0.11 |
) |
Weighted-average shares used
to compute net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
91,923 |
|
|
|
77,293 |
|
|
|
86,256 |
|
|
|
76,223 |
|
Diluted |
|
|
99,771 |
|
|
|
79,514 |
|
|
|
90,577 |
|
|
|
76,223 |
|
Corsair Gaming,
Inc.Preliminary Segment
Information(Unaudited, in thousands, except
percentages)
|
|
Three Months
EndedDecember 31, |
|
|
Year EndedDecember 31, |
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gamer and Creator
Peripherals |
|
$ |
191,835 |
|
|
$ |
94,057 |
|
|
$ |
539,366 |
|
|
$ |
294,141 |
|
Gaming Components and
Systems |
|
|
364,504 |
|
|
|
232,498 |
|
|
|
1,163,001 |
|
|
|
803,033 |
|
Total Net Revenue |
|
$ |
556,339 |
|
|
$ |
326,555 |
|
|
$ |
1,702,367 |
|
|
$ |
1,097,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gamer and Creator
Peripherals |
|
|
35.9 |
% |
|
|
24.6 |
% |
|
|
35.2 |
% |
|
|
27.7 |
% |
Gaming Components and
Systems |
|
|
23.3 |
% |
|
|
20.4 |
% |
|
|
23.7 |
% |
|
|
17.8 |
% |
Total Gross Margin |
|
|
27.6 |
% |
|
|
21.6 |
% |
|
|
27.3 |
% |
|
|
20.4 |
% |
Corsair Gaming,
Inc.Preliminary Condensed Combined Consolidated
Balance Sheets(Unaudited, in thousands, except per share
amounts)
|
|
December 31,2020 |
|
|
December 31,2019 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and restricted cash |
|
$ |
133,338 |
|
|
$ |
51,717 |
|
Accounts receivable, net |
|
|
293,629 |
|
|
|
202,334 |
|
Inventories |
|
|
226,007 |
|
|
|
151,063 |
|
Prepaid expenses and other current assets |
|
|
37,997 |
|
|
|
24,696 |
|
Total current assets |
|
|
690,971 |
|
|
|
429,810 |
|
Property and equipment,
net |
|
|
16,475 |
|
|
|
15,365 |
|
Goodwill |
|
|
312,760 |
|
|
|
312,750 |
|
Intangible assets, net |
|
|
259,317 |
|
|
|
291,027 |
|
Restricted cash,
noncurrent |
|
|
230 |
|
|
|
230 |
|
Other assets |
|
|
34,362 |
|
|
|
10,536 |
|
TOTAL ASSETS |
|
$ |
1,314,115 |
|
|
$ |
1,059,718 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
299,636 |
|
|
$ |
182,025 |
|
Current portion of debt, net |
|
|
— |
|
|
|
2,364 |
|
Other liabilities and accrued expenses |
|
|
205,745 |
|
|
|
115,541 |
|
Total current liabilities |
|
|
505,381 |
|
|
|
299,930 |
|
Debt, net |
|
|
321,393 |
|
|
|
503,448 |
|
Deferred tax liabilities |
|
|
29,752 |
|
|
|
33,820 |
|
Other liabilities,
noncurrent |
|
|
20,199 |
|
|
|
5,745 |
|
TOTAL LIABILITIES |
|
|
876,725 |
|
|
|
842,943 |
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
Common stock and additional paid-in capital |
|
|
438,676 |
|
|
|
324,976 |
|
Accumulated deficit |
|
|
(2,813 |
) |
|
|
(106,030 |
) |
Accumulated other comprehensive income (loss) |
|
|
1,527 |
|
|
|
(2,171 |
) |
Total Stockholders’ Equity |
|
|
437,390 |
|
|
|
216,775 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
$ |
1,314,115 |
|
|
$ |
1,059,718 |
|
Corsair Gaming,
Inc.Preliminary Condensed Combined Consolidated
Statements of Cash Flows(Unaudited, in thousands)
|
|
Three Months
EndedDecember 31, |
|
|
Year EndedDecember 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
43,043 |
|
|
$ |
6,012 |
|
|
$ |
103,217 |
|
|
$ |
(8,394 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
1,510 |
|
|
|
1,035 |
|
|
|
5,796 |
|
|
|
3,848 |
|
Depreciation |
|
|
2,613 |
|
|
|
1,936 |
|
|
|
9,318 |
|
|
|
7,384 |
|
Amortization of intangible assets |
|
|
8,572 |
|
|
|
6,572 |
|
|
|
33,916 |
|
|
|
30,123 |
|
Debt issuance costs amortization |
|
|
560 |
|
|
|
708 |
|
|
|
2,550 |
|
|
|
2,989 |
|
Loss on debt extinguishment |
|
|
858 |
|
|
|
— |
|
|
|
4,114 |
|
|
|
— |
|
Deferred income taxes |
|
|
(584 |
) |
|
|
(4,278 |
) |
|
|
(7,476 |
) |
|
|
(11,535 |
) |
Other |
|
|
1,524 |
|
|
|
(945 |
) |
|
|
2,594 |
|
|
|
(347 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(33,425 |
) |
|
|
(37,460 |
) |
|
|
(91,492 |
) |
|
|
(48,033 |
) |
Inventories |
|
|
(19,200 |
) |
|
|
28,732 |
|
|
|
(80,086 |
) |
|
|
15,711 |
|
Prepaid expenses and other assets |
|
|
12,478 |
|
|
|
1,693 |
|
|
|
(7,953 |
) |
|
|
(1,619 |
) |
Accounts payable |
|
|
23,750 |
|
|
|
14,138 |
|
|
|
116,522 |
|
|
|
16,203 |
|
Other liabilities and accrued expenses |
|
|
26,930 |
|
|
|
17,826 |
|
|
|
77,933 |
|
|
|
30,773 |
|
Net cash provided by operating activities |
|
|
68,629 |
|
|
|
35,969 |
|
|
|
168,953 |
|
|
|
37,103 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of business, net of cash acquired |
|
|
(455 |
) |
|
|
(121,258 |
) |
|
|
(1,291 |
) |
|
|
(126,104 |
) |
Payment of deferred consideration |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,300 |
) |
Purchase of property and equipment |
|
|
(3,917 |
) |
|
|
(1,845 |
) |
|
|
(8,989 |
) |
|
|
(8,848 |
) |
Purchase of intangible asset |
|
|
— |
|
|
|
(175 |
) |
|
|
— |
|
|
|
(175 |
) |
Net cash used in investing activities |
|
|
(4,372 |
) |
|
|
(123,278 |
) |
|
|
(10,280 |
) |
|
|
(145,427 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of debt, net |
|
|
— |
|
|
|
113,885 |
|
|
|
— |
|
|
|
113,885 |
|
Repayment of debt |
|
|
(50,000 |
) |
|
|
(1,194 |
) |
|
|
(190,394 |
) |
|
|
(3,969 |
) |
Payment of debt issuance costs |
|
|
— |
|
|
|
(2,300 |
) |
|
|
(194 |
) |
|
|
(2,450 |
) |
Repayment of line of credit, net |
|
|
— |
|
|
|
(35,700 |
) |
|
|
— |
|
|
|
(27,000 |
) |
Proceeds from initial public offering, net of
underwriting discounts and commissions |
|
|
— |
|
|
|
— |
|
|
|
118,575 |
|
|
|
— |
|
Payment of other offering costs |
|
|
(2,873 |
) |
|
|
(137 |
) |
|
|
(8,455 |
) |
|
|
(245 |
) |
Proceeds from issuance of common stock to common
stockholders |
|
|
— |
|
|
|
53,500 |
|
|
|
— |
|
|
|
53,500 |
|
Repurchase of common stock |
|
|
— |
|
|
|
(962 |
) |
|
|
— |
|
|
|
(1,531 |
) |
Proceeds from exercise of stock options |
|
|
113 |
|
|
|
44 |
|
|
|
1,337 |
|
|
|
124 |
|
Net cash provided by (used in) financing activities |
|
|
(52,760 |
) |
|
|
127,136 |
|
|
|
(79,131 |
) |
|
|
132,314 |
|
Effect of exchange rate
changes on cash |
|
|
1,930 |
|
|
|
(9 |
) |
|
|
2,079 |
|
|
|
37 |
|
Net increase in cash and
restricted cash |
|
|
13,427 |
|
|
|
39,818 |
|
|
|
81,621 |
|
|
|
24,027 |
|
Cash and restricted cash at
the beginning of the period |
|
|
120,141 |
|
|
|
12,129 |
|
|
|
51,947 |
|
|
|
27,920 |
|
Cash and restricted cash at
the end of the period |
|
$ |
133,568 |
|
|
$ |
51,947 |
|
|
$ |
133,568 |
|
|
$ |
51,947 |
|
Corsair Gaming, Inc.GAAP
to Non-GAAP Reconciliations
Preliminary Non-GAAP Operating Income
Reconciliations(Unaudited, in thousands, except
percentages)
|
|
Three Months
EndedDecember 31, |
|
|
Year EndedDecember 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Operating Income - GAAP |
|
$ |
58,893 |
|
|
$ |
14,218 |
|
|
$ |
158,361 |
|
|
$ |
23,707 |
|
Acquisition accounting impact
related to recognizing acquired deferred revenue at fair value |
|
|
- |
|
|
|
1,067 |
|
|
|
- |
|
|
|
1,067 |
|
Acquisition accounting impact
related to recognizing acquired inventory at fair value |
|
|
- |
|
|
|
1,604 |
|
|
|
394 |
|
|
|
1,604 |
|
Change in fair value of
contingent consideration for business acquisition |
|
|
954 |
|
|
|
(635 |
) |
|
|
954 |
|
|
|
(635 |
) |
Stock-based compensation |
|
|
1,510 |
|
|
|
1,035 |
|
|
|
5,796 |
|
|
|
3,848 |
|
Intangible asset
amortization |
|
|
8,572 |
|
|
|
6,571 |
|
|
|
33,916 |
|
|
|
30,123 |
|
Acquisition-related and
integration-related costs |
|
|
680 |
|
|
|
1,250 |
|
|
|
3,156 |
|
|
|
3,099 |
|
Executive transition
costs |
|
|
- |
|
|
|
444 |
|
|
|
- |
|
|
|
984 |
|
Non-deferred IPO and secondary
offering costs |
|
|
428 |
|
|
|
224 |
|
|
|
1,633 |
|
|
|
1,135 |
|
Debt modification costs |
|
|
- |
|
|
|
836 |
|
|
|
623 |
|
|
|
836 |
|
Adjusted Operating Income
- Non-GAAP |
|
$ |
71,037 |
|
|
$ |
26,614 |
|
|
$ |
204,833 |
|
|
$ |
65,768 |
|
As a % of net revenue -
GAAP |
|
|
10.6 |
% |
|
|
4.4 |
% |
|
|
9.3 |
% |
|
|
2.2 |
% |
As a % of net revenue -
Non-GAAP |
|
|
12.8 |
% |
|
|
8.1 |
% |
|
|
12.0 |
% |
|
|
6.0 |
% |
Preliminary Non-GAAP Net Income and Net
Income Per Share Reconciliations(Unaudited, in thousands,
except per share amounts and percentages)
|
|
Three Months
EndedDecember 31, |
|
|
Year EndedDecember 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net Income (Loss) - GAAP |
|
$ |
43,043 |
|
|
$ |
6,012 |
|
|
$ |
103,217 |
|
|
$ |
(8,394 |
) |
Acquisition accounting impact
related to recognizing acquired deferred revenue at fair value |
|
|
- |
|
|
|
1,067 |
|
|
|
- |
|
|
|
1,067 |
|
Acquisition accounting impact
related to recognizing acquired inventory at fair value |
|
|
- |
|
|
|
1,604 |
|
|
|
394 |
|
|
|
1,604 |
|
Change in fair value of
contingent consideration for business acquisition |
|
|
954 |
|
|
|
(635 |
) |
|
|
954 |
|
|
|
(635 |
) |
Stock-based compensation |
|
|
1,510 |
|
|
|
1,035 |
|
|
|
5,796 |
|
|
|
3,848 |
|
Intangible asset
amortization |
|
|
8,572 |
|
|
|
6,571 |
|
|
|
33,916 |
|
|
|
30,123 |
|
Acquisition-related and
integration-related costs |
|
|
680 |
|
|
|
1,250 |
|
|
|
3,156 |
|
|
|
3,099 |
|
Executive transition
costs |
|
|
- |
|
|
|
444 |
|
|
|
- |
|
|
|
984 |
|
Non-deferred IPO and secondary
offering costs |
|
|
428 |
|
|
|
224 |
|
|
|
1,633 |
|
|
|
1,135 |
|
Debt modification costs |
|
|
- |
|
|
|
836 |
|
|
|
623 |
|
|
|
836 |
|
Loss on debt
extinguishment |
|
|
858 |
|
|
|
- |
|
|
|
4,114 |
|
|
|
- |
|
Non-GAAP income tax
adjustment |
|
|
(3,032 |
) |
|
|
(1,567 |
) |
|
|
(8,850 |
) |
|
|
(6,163 |
) |
Adjusted Net Income -
Non-GAAP |
|
$ |
53,013 |
|
|
$ |
16,841 |
|
|
$ |
144,953 |
|
|
$ |
27,504 |
|
Diluted Net income
(loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
$ |
0.43 |
|
|
$ |
0.08 |
|
|
$ |
1.14 |
|
|
$ |
(0.11 |
) |
Adjusted, Non-GAAP |
|
$ |
0.53 |
|
|
$ |
0.21 |
|
|
$ |
1.60 |
|
|
$ |
0.35 |
|
Shares used to compute
diluted net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
99,771 |
|
|
|
79,514 |
|
|
|
90,577 |
|
|
|
76,223 |
|
Adjusted, Non-GAAP |
|
|
99,771 |
|
|
|
79,514 |
|
|
|
90,577 |
|
|
|
78,117 |
|
Corsair Gaming,
Inc.Preliminary Adjusted EBITDA
Reconciliations(Unaudited, in thousands, except
percentages)
|
|
Three Months
EndedDecember 31, |
|
|
Year EndedDecember 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net Income (Loss) - GAAP |
|
$ |
43,043 |
|
|
$ |
6,012 |
|
|
$ |
103,217 |
|
|
$ |
(8,394 |
) |
Acquisition accounting impact
related to recognizing acquired deferred revenue at fair value |
|
|
- |
|
|
|
1,067 |
|
|
|
- |
|
|
|
1,067 |
|
Acquisition accounting impact
related to recognizing acquired inventory at fair value |
|
|
- |
|
|
|
1,604 |
|
|
|
394 |
|
|
|
1,604 |
|
Change in fair value of
contingent consideration for business acquisition |
|
|
954 |
|
|
|
(635 |
) |
|
|
954 |
|
|
|
(635 |
) |
Stock-based compensation |
|
|
1,510 |
|
|
|
1,035 |
|
|
|
5,796 |
|
|
|
3,848 |
|
Acquisition-related and
integration-related costs |
|
|
680 |
|
|
|
1,250 |
|
|
|
3,156 |
|
|
|
3,099 |
|
Executive transition
costs |
|
|
- |
|
|
|
444 |
|
|
|
- |
|
|
|
984 |
|
Non-deferred IPO and secondary
offering costs |
|
|
428 |
|
|
|
224 |
|
|
|
1,633 |
|
|
|
1,135 |
|
Debt modification costs |
|
|
- |
|
|
|
836 |
|
|
|
623 |
|
|
|
836 |
|
Intangible asset
amortization |
|
|
8,572 |
|
|
|
6,571 |
|
|
|
33,916 |
|
|
|
30,123 |
|
Depreciation |
|
|
2,613 |
|
|
|
1,936 |
|
|
|
9,318 |
|
|
|
7,384 |
|
Interest expense (includes
loss on debt extinguishment) |
|
|
6,021 |
|
|
|
8,485 |
|
|
|
35,137 |
|
|
|
35,548 |
|
Tax expense (benefit) |
|
|
8,676 |
|
|
|
(360 |
) |
|
|
18,825 |
|
|
|
(5,005 |
) |
Adjusted EBITDA -
Non-GAAP |
|
$ |
72,497 |
|
|
$ |
28,469 |
|
|
$ |
212,969 |
|
|
$ |
71,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin -
Non-GAAP |
|
|
13.0 |
% |
|
|
8.7 |
% |
|
|
12.5 |
% |
|
|
6.5 |
% |
Corsair Gaming (NASDAQ:CRSR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Corsair Gaming (NASDAQ:CRSR)
Historical Stock Chart
From Sep 2023 to Sep 2024