Corsair Gaming, Inc. (NASDAQ:CRSR) (“Corsair”), a leading global
provider and innovator of high-performance gear for gamers and
content creators, today announced it expects full year 2020 net
revenue, adjusted operating income and adjusted EBITDA to exceed
the expectations Corsair provided on November 10, 2020.
“The positive momentum in our business continues
to exceed our expectations in both of our business segments. In our
Gaming and Creator segment, we continue to see strong sales in all
price points, which we believe indicates that we have both new
customers buying gear as well as existing customers refreshing and
upgrading. The highest growth continues to be in our streaming
products, as gamers want to share video content with their friends
and fans. In our Components and Systems segment, we are also seeing
continued enthusiasm to build new high end gaming PCs based on
recently introduced high performance CPUs and GPUs. We are excited
to see that more and more people are using our RGB components and
accessories powered by our iCue software in these builds,”
commented Andy Paul, Chief Executive Officer of Corsair. “Our
recent announcements of our acquisition of Gamer Sensei and our
partnership with Pipeline underscore our initiatives to build a
meaningful coaching and training business inside Corsair. We
believe this will further enhance our engagement level with gamers
and content creators.”
Andy Paul continued, “For the full year 2020,
which ends December 31, we now expect net revenue growth of
approximately 50% to 52% and adjusted operating income growth of
approximately 183% to 192%. We will provide more details when we
report our fourth quarter results and provide full year 2021
guidance in February.”
Corsair is providing this update in advance of
Corsair management participating in the Credit Suisse Technology
Conference on Monday, November 30, 2020, and the Barclays Global
Technology, Media and Telecommunications Virtual Conference on
December 9, 2020. Interested parties can listen to a live webcast,
as well as a replay, of Corsair’s investor
relations website at https://ir.corsair.com.
Financial Outlook
For the full year 2020, we currently expect:
- Net revenue to be in the range of
$1,651 million to $1,666 million.
- Adjusted operating income to be in
the range of $186 million to $192 million.
- Adjusted EBITDA to be in the range
of $194 million to $200 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 of Non-GAAP Financial Measures”
below for a discussion on how we calculate the non-GAAP measures
presented herein.
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 the capacity of 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: the impact of
COVID-19 on the ability of retail stores to be open and one our
supply chain, 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 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 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
and adjusted EBITDA. 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 and
adjusted EBITDA 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 and EBITDA margin 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 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).
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
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