Corsair Gaming, Inc., a leading global provider and innovator of high-performance gear for gamers and content creators, today announced financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Highlights
- Net revenue was $529.4 million, an increase of 71.6% year-over-year. Gamer and creator peripherals segment net revenue was $175.9 million, an increase of 131.9% year-over-year. Gaming components and systems segment net revenue was $353.5 million, an increase of 51.9% year-over-year.
- Gross profit was $160.3 million, an increase of 103.9% year-over-year, with gross margin of 30.3%, an improvement of 480 basis points year-over-year. Gamer and creator peripherals segment gross profit was $68.9 million, an increase of 211.1% year-over-year. Gaming components and systems segment gross profit was $91.5 million, an increase of 61.9% year-over-year.
- Operating income was $67.3 million, an increase of 404.5% year-over-year.
- Adjusted operating income was $80.4 million, an increase of 221.4% year-over-year.
- Net income was $46.7 million, or $0.47 per diluted share, compared to net income of $1.2 million in the same period last year, or $0.01 per diluted share.
- Adjusted net income was $58.2 million, or $0.58 per diluted share, an increase of 420.4% year-over-year compared to adjusted net income of $11.2 million in the same period last year, or $0.13 per diluted share.
- Adjusted EBITDA was $80.4 million, an increase of 196.6% year-over-year, with adjusted EBITDA margin of 15.2%, an improvement of 640 basis points year-over-year.
- As of March 31, 2021, we had cash and restricted cash of $125.6 million, $48.1 million capacity under our revolving credit facility and total long-term debt of $294.3 million.
- Cash flows from operations was $27.8 million, which increased from $2.0 million in the same period last 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 thrilled with our first quarter financial performance and strategic progress. End demand remained strong for our products and our new products such as the K65 mini RGB keyboard and Elgato’s new accessories debuted well. We introduced 29 new products in the first quarter and we expect this blistering pace of new product introduction to continue throughout the year with several brand new products still to come. Supplies of key components remain tight but we have been able to support our plans and will continue to work on this issue for the rest of the year. As a result of our stronger-than-expected first quarter performance and our current views for the rest of the year, we raised our 2021 annual guidance,” stated Andy Paul, Chief Executive Officer of Corsair.
“We were able to convert our strong financial performance in the first quarter into an opportunity to further strengthen our balance sheet. We reduced debt by an additional $28 million with outstanding principal now at $299 million and net debt at $177.3 million. We did this while growing quickly and leaving sufficient resources to help us grow further. We continue to evaluate growth opportunities while still expecting to further reduce our existing debt in 2021,” said Michael G. Potter, Chief Financial Officer of Corsair.
Financial Outlook
The Company is updating guidance for the full-year 2021 as indicated below:
- Raising net revenue to be in the range of $1.9 billion to $2.1 billion from $1.8 billion to $1.95 billion.
- Raising adjusted operating income to be in the range of $235 million to $255 million from $205 million to $220 million.
- Raising adjusted EBITDA to be in the range of $245 million to $265 million from $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, 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 April 13, 2021, Corsair announced the launch of its Corsair One a200 gaming PC powered by the new AMD Ryzen 5000-series CPU and the Corsair One i200 powered by a new 11th Gen Intel Core CPU. These systems come equipped with NVIDIA GeForce RTX 3080 and raise the bar for gaming and streaming-ready compact PCs.
- On April 8, 2021, Corsair under its Elgato brand announced the release of Cam Link Pro, a powerful new PCIe capture card and video mixer that boasts four HDMI inputs to stream or record 4K or 1080p60 Full HD video from DSLR cameras, laptops, tablets, and any other devices that output a clean HDMI signal. From live broadcasting and editing to video conferencing and remote teaching, Cam Link Pro makes multicam production easy for content creators and professionals who engage with audiences online.
- On April 8, 2021, Corsair launched three new products in its CHAMPION SERIES range of competition-grade peripherals, built for and tested by top eSports professionals. Headlining the new launches is the streamlined K70 RGB TKL Mechanical Gaming Keyboard, with 8,000Hz hyper-polling driven by CORSAIR AXON hyper-processing technology in a compact, tenkeyless design, enabling users to take pro performance to the next event. Two new CORSAIR gaming mice also enter the CHAMPION SERIES lineup: the SABRE RGB PRO and SABRE PRO. The first CORSAIR mice to also utilize AXON hyper-processing technology and 8,000Hz polling, the SABRE RGB PRO and SABRE PRO deliver lightning-fast inputs, along with a comfortable ergonomic shape and ultra-light weight for superior agility and control.
- On March 31, 2021, Corsair launched a new pair of RGB gaming keyboards: the CORSAIR K55 RGB PRO and K55 RGB PRO XT. These latest entries in the K55 family offer dynamic RGB backlighting, and include six dedicated macro keys with Elgato Stream Deck software integration for one-button actions and shortcuts. The K55 RGB PRO features five zones of RGB lighting with six preset onboard lighting effects, while the K55 RGB PRO XT kicks things up a notch with per-key RGB backlighting, offering ten onboard lighting effects and near-limitless customization through CORSAIR iCUE software.
- On March 16, 2021, Corsair launched a new series of 11th-Gen Intel -powered VENGEANCE i7200 gaming PCs. Now equipped with a cutting-edge 11th Gen Intel Core CPU, these powerful systems deliver blazing-fast frequencies and the processing power to push the limits of gaming, streaming, and more. Available in configurations with up to an Intel Core i9 11900K CPU, the new CORSAIR VENGEANCE i7200 Series can power through complex content creation, extreme gaming, and demanding applications with ease. Fantastic 3D rendering and content creation performance is driven by the incredible power of NVIDIA GeForce RTX 3000-Series graphics, up to a GeForce RTX 3090, for amazingly lifelike visuals. NVIDIA DLSS 2.0 AI technology boosts frame rates, producing silky-smooth image quality even when playing at maximum detail at 4K settings. VENGEANCE i7200 systems are completed with a full array of award-winning CORSAIR components in an airflow-optimized CORSAIR 4000D AIRFLOW mid-tower case.
- On March 16, 2021, Corsair launched its first 60% mechanical gaming keyboard, the CORSAIR K65 RGB MINI, alongside a full range of CORSAIR PBT DOUBLE-SHOT PRO Keycap Mod Kits to unlock a huge new range of keyboard personalization. Packing massive features into its impressively small size, the K65 RGB MINI boasts 100% CHERRY MX mechanical keyswitches, dynamic per-key RGB backlighting, CORSAIR AXON Hyper-Processing Technology with 8,000Hz polling, and a detachable USB Type-C cable. Launching alongside the K65 RGB MINI, the new CORSAIR PBT DOUBLE-SHOT PRO Keycap Mod Kits offer five additional colors with which to customize the K65 RGB MINI or compatible keyboard. Together, K65 RGB MINI and the new PBT DOUBLE-SHOT PRO Keycaps offer a powerful, personal, and portable CORSAIR keyboard experience in the smallest form-factor yet.
- On March 4, 2021, Corsair under its Elgato brand launched two new product lines to help creators personalize their home studios and streaming setups – Elgato Light Strip and Elgato Wave Panels. Elgato Light Strip offers convenient app-controlled ambient lighting with RGBWW LEDs capable of displaying 16 million colors, with a wide brightness and color temperature range to create the perfect look for any setup. Elgato Wave Panels feature two-layer foam construction to reduce room echo and reverberation, easily mounting to the wall in modular hexagonal panels. With the release of both Elgato Light Strip and Wave Panels, content creators now have more options available to customize and set their studio apart from the rest.
- On February 25, 2021, Corsair launched a new ultra-light gaming mouse, the KATAR PRO XT. At a weight of just 73g and equipped with a drag-reducing paracord cable, the KATAR PRO XT is extremely agile and well-suited for fast-paced FPS and MOBA gameplay. The KATAR PRO XT is also the first CORSAIR mouse to implement new CORSAIR QUICKSTRIKE buttons, pre-tensioned to reduce button travel to a minimum, meaning every click from the KATAR PRO XT registers faster than ever.
- On February 16, 2021, Corsair announced the acquisition of Visuals by Impulse (VBI), a premium design platform for creators, which will join CORSAIR under its existing Elgato brand. Founded in 2015, VBI provides professional design for creators on Twitch, YouTube and Facebook Gaming. Streamers around the world use VBI overlays, alerts, and widgets to customize their broadcasts and grow their fanbases. VBI is a trusted partner for over 200,000 creators — and the industry’s go-to resource for free graphics, premium animations, and online streaming tools. Thanks to VBI technology and design, anyone can create stylish, personalized live-streaming content.
Conference Call and Webcast Information
We will host a conference call to discuss the first quarter 2021 financial results on May 4, 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 May 4, 2021 through May 11, 2021, by dialing 1-844-512-2921, or for international callers 1-412-317-6671. The replay passcode is 13718830.
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.
