Corsair Gaming, Inc. Announces Q2 2023 Financial Results

Corsair Gaming, Inc. ("Corsair" or the "Company"), a leading global provider and innovator of high-performance gear for gamers, streamers, content-creators, and gaming PC builders, has released its financial results for the second quarter ended June 30, 2023. The company also reiterated its financial outlook for the full year 2023.

Second Quarter 2023 Select Financial Metrics

  • Net revenue was $325.4 million, a 14.6% increase compared to the second quarter of 2022.
  • Gaming components and systems segment net revenue was $246.7 million, compared to $194.9 million in the second quarter of 2022.
  • Gamer and creator peripherals segment net revenue was $78.8 million, compared to $89.0 million in the second quarter of 2022.
  • Net income attributable to common shareholders was $1.1 million, compared to a net loss of $59.4 million in the second quarter of 2022.
  • Adjusted net income was $9.8 million, compared to an adjusted net loss of $19.0 million in the second quarter of 2022.
  • Adjusted EBITDA was $17.8 million, compared to a loss of $11.0 million in the second quarter of 2022.
  • Cash and cash equivalents were $184.0 million as of June 30, 2023.

First Half 2023 Select Financial Metrics

  • Net revenue was $679.4 million, a 2.2% increase compared to the first six months of 2022.
  • Gaming components and systems segment net revenue was $511.7 million, compared to $441.5 million in the first six months of 2022.
  • Gamer and creator peripherals segment net revenue was $167.7 million, compared to $223.1 million in the first six months of 2022.
  • Net income attributable to common shareholders was $43 thousand, compared to a net loss of $64.5 million in the first six months of 2022.
  • Adjusted net income was $21.8 million, compared to an adjusted net loss of $9.8 million in the first six months of 2022.
  • Adjusted EBITDA was $38.3 million, compared to adjusted EBITDA of $4.4 million in the first six months of 2022.

Andy Paul, Chief Executive Officer of Corsair, expressed excitement about the company's Q2 and 1H results, highlighting growth in revenue, gross margin, and profitability compared to the previous year. He noted that the gaming hardware market improved during the second quarter, with less discounting from competitors and strong gaming PC build activity. Paul also mentioned the launch of a new ecosystem, iCUE link, which simplifies gaming system building and aims to attract new customers. Additionally, Corsair announced the acquisition of certain assets of Drop, a community-based e-commerce company specializing in customized DIY keyboards and keycaps.

Michael G. Potter, Chief Financial Officer of Corsair, expressed satisfaction with the company's financial improvement, including revenue growth, improved gross margins, and steadily improving adjusted EBITDA. He mentioned that Corsair exceeded its near-term expectations for gross margins and highlighted the acquisition of Drop's assets as an investment in growth.

Financial Outlook

Corsair reiterated its outlook for the full year 2023, expecting flat to slightly up revenue in a softer economic environment compared to 2022. The company anticipates an improvement in adjusted EBITDA, led by margin improvement, normalized shipping costs, and tight operating expense controls. The financial outlook includes the following expectations:

  • Net revenue for the full year 2023 is expected to be in the range of $1.35 billion to $1.55 billion.
  • Adjusted operating income to be in the range of $75 million to $95 million.
  • Adjusted EBITDA to be in the range of $90 million to $110 million.

The company provided certain non-GAAP measures in its financial outlook, which were not reconciled to comparable GAAP financial measures due to the inability to predict certain items that would impact GAAP measures. These items may include stock-based compensation charges, depreciation and amortization, and other factors.

Recent Developments

Corsair announced the acquisition of certain assets of Drop, a leading peripheral developer known for customizable mechanical keyboards and switches. The company also enhanced its Stream Deck Mobile iOS app and expanded its memory lineup with DOMINATOR TITANIUM DDR5 memory. Additionally, Corsair launched the iCUE LINK Smart Component Ecosystem, which simplifies PC building.