NASDAQ$CRSR

Corsair Gaming Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Corsair's Q2 2023 financial results were announced, exceeding expectations and reaffirming the full-year financial outlook.

Corsair Gaming, Inc. reported a 14.6% increase in net revenue for Q2 2023, reaching $325.4 million. The company achieved a net income of $1.1 million, or $0.01 per diluted share, a significant improvement from the previous year's net loss. Adjusted EBITDA was $17.8 million, compared to a loss in the same quarter of the previous year. The company also acquired certain assets of Drop.

  • Net revenue increased by 14.6% to $325.4 million compared to Q2 2022.
  • Net income attributable to common shareholders was $1.1 million, or $0.01 per diluted share.
  • Adjusted EBITDA was $17.8 million, a significant improvement from the loss in Q2 2022.
  • The company acquired certain assets of Drop, an e-commerce company specializing in customized DIY keyboards.

Headline financials

Total Revenue

$325M

Previous: $284M+14.6%
EPS (adj)

$0.09

Previous: -$0.20+145.0%
Capital Expenditures

-$7.46M

Previous: -$11.9M+37.4%
Free Cash Flow

-$11.9M

Previous: -$63.9M+81.3%
Net Income

-$4.48M

Previous: -$52M+91.4%
Operating Income

-$2.71M

Previous: -$55M+95.1%
Gross Profit

$82.8M

Previous: $36.5M+127.2%
Cash & Equivalents

$181M

Previous: $35.9M+405.1%
Total Assets

$1.32B

Previous: $1.23B+7.1%
Stock-Based Comp

$8.17M

Previous: $6.09M+34.3%

Revenue & EPS history

Corsair · Revenue · Quarterly

$325M

Q2 2023+14.6%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Corsair · $78.8M total across 1 segment · Q2 2023

  • Gamer & Creator Peripherals
    $78.8M-11.5%

Forward guidance

The Company reiterated its outlook for the full year 2023 for revenue to be flat to slightly up in a softer economic environment as compared to 2022. Corsair continues to expect an improvement for the full year 2023 in adjusted EBITDA led by an improvement in margin, normalized shipping costs, and continued tight operating expense controls.

Tailwinds

  • 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.
  • Expect significant opportunities and synergies with Drop.
  • Liquidity is expected to remain excellent for the rest of 2023.

Headwinds

  • Revenue to be flat to slightly up in a softer economic environment as compared to 2022.
  • Current macroeconomic conditions, including the impacts of high inflation and risk of recession on demand for our products, consumer confidence and financial markets generally.
  • The lingering impacts and future outbreaks of the COVID-19 pandemic and its impacts on our operations and the operations of our manufacturers, retailers and other partners, as well as its impacts on the economy overall, including capital markets.
  • 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 impact of global instability, such as the war between Russia and Ukraine, and any sanctions or other geopolitical tensions that may result therefrom.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+3.8%

Avg return

Earnings day

+4.5%

Avg return

5 days after

+5.8%

Avg return

30 days after

62%

18 / 29 earnings

Positive

+48.3%

Q4 2025

Best reaction

-21.9%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+4.7%+27.1%
Q4 2025+48.3%+21.7%+16.2%
Q3 2025-3.8%-0.2%+0.0%
Q1 2025-0.3%+21.1%+33.4%
Q4 2024+25.9%+23.0%+5.8%
Q3 2024-0.4%+2.5%+8.7%
Q2 2024-21.9%-22.4%-15.1%
Q1 2024-7.5%-7.1%+0.6%
Q4 2023+1.6%+0.1%-9.0%
Q3 2023-6.6%-5.1%+2.5%
Q2 2023-10.0%-10.0%-12.9%
Q1 2023+8.4%+7.0%+6.8%
Q4 2022+9.0%+15.7%+5.2%
Q3 2022+18.4%+32.0%+38.1%
Q2 2022+5.0%+5.4%-9.6%
Q1 2022-6.3%-10.2%-3.4%
Q4 2021+10.4%+8.6%+6.5%
Q3 2021+5.7%+5.3%-12.3%
Q2 2021-5.5%-3.1%-0.5%
Q1 2020+1.7%+0.7%+1.7%
Q1 2021+1.7%+0.7%+1.7%
Q1 2019+2.8%+3.1%+1.1%
Q4 2018+2.8%+3.1%+1.1%
Q2 2020+2.8%+3.1%+1.1%
Q2 2019+2.8%+3.1%+1.1%
Q4 2020-7.2%-6.4%-26.4%
Q3 2019+10.7%+10.9%+32.5%
Q4 2019+10.7%+10.9%+32.5%
Q3 2020+10.7%+10.9%+32.5%
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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