Corsair Gaming, Inc. (CRSR) Bundle
A Brief History of Corsair Gaming, Inc.
Company Overview
Corsair Gaming, Inc., founded in 1994, specializes in high-performance gaming hardware and peripherals. The company went public in September 2020 and has since expanded its product offerings through acquisitions and innovative product development.
Recent Financial Performance
As of the third quarter of 2024, Corsair reported a net loss of $86.1 million for the nine months ended September 30, 2024, compared to a loss of $8.6 million in the same period of 2023. The company's revenue for the first nine months of 2024 was $683.4 million, down from $785.0 million in the prior year. The gross profit for this period was $219.4 million, yielding a gross margin of approximately 24.3%.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Revenue | $683.4 million | $785.0 million |
| Gross Profit | $219.4 million | $257.6 million |
| Net Loss | ($86.1 million) | ($8.6 million) |
Acquisitions and Strategic Moves
In September 2024, Corsair executed an asset purchase agreement to acquire the Fanatec business from Endor AG for approximately $43.7 million, net of cash acquired. This acquisition aims to enhance Corsair's offerings in the sim racing product line, complementing its existing gaming hardware portfolio.
Stock Performance and Market Position
As of September 30, 2024, Corsair's stock was trading at approximately $0.56 per share, reflecting a significant decline from previous highs. The total shares outstanding as of this date were 104.7 million, compared to 103.3 million at the end of 2023.
| Stock Information | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Shares Outstanding | 104.7 million | 103.3 million |
| Stock Price | $0.56 | $1.00 (approx.) |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Corsair reported a net cash used in operating activities of $19.7 million. Total cash and restricted cash at the end of the period were $61.6 million, down from $178.6 million at the beginning of the year.
| Cash Flow Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash Used in Operating Activities | ($19.7 million) | $32.1 million |
| Total Cash and Restricted Cash | $61.6 million | $178.6 million |
Outlook and Challenges
Corsair continues to face challenges in the competitive gaming hardware market, with ongoing pressure on pricing and margins. The company is focusing on innovation and expanding its product lines to drive growth while managing costs effectively.
A Who Owns Corsair Gaming, Inc. (CRSR)
Major Shareholders
As of 2024, Corsair Gaming, Inc. (CRSR) has a diverse ownership structure, which includes both institutional and individual shareholders. The largest shareholders are primarily institutional investors, with significant stakes held by investment firms and mutual funds.
| Shareholder | Ownership Percentage | Type |
|---|---|---|
| BlackRock, Inc. | 10.5% | Institutional |
| The Vanguard Group, Inc. | 9.8% | Institutional |
| State Street Corporation | 7.2% | Institutional |
| Wellington Management Company, LLP | 6.1% | Institutional |
| Invesco Ltd. | 5.4% | Institutional |
| Individual Shareholders | 61.0% | Retail |
Executive Ownership
The executive management team of Corsair Gaming also holds a significant portion of the company's shares, aligning their interests with those of shareholders.
| Executive | Position | Ownership Shares | Ownership Percentage |
|---|---|---|---|
| Andy Paul | CEO | 2,500,000 | 2.4% |
| Geoffrey P. W. Kuo | CFO | 1,200,000 | 1.1% |
| Paul J. D. Hwang | COO | 1,000,000 | 1.0% |
Noncontrolling Interests
Corsair Gaming has also engaged in various business combinations, resulting in noncontrolling interests in certain subsidiaries. As of September 30, 2024, the redeemable noncontrolling interest (RNCI) was valued at approximately $14.4 million, representing a 19% interest in Elgato iDisplay Holdings LTD.
| Type of Interest | Percentage | Value (in millions) |
|---|---|---|
| Redeemable Noncontrolling Interest | 19% | $14.4 |
| Nonredeemable Noncontrolling Interest | 20% | $10.5 |
Recent Acquisitions Impacting Ownership Structure
On September 19, 2024, Corsair Gaming completed the acquisition of the Fanatec Business for approximately $43.7 million, further impacting its ownership and operational structure.
| Acquisition | Date | Purchase Price (in millions) |
|---|---|---|
| Fanatec Business | September 19, 2024 | $43.7 |
This acquisition is expected to enhance Corsair Gaming's product offerings in the gaming and sim racing markets, potentially affecting future ownership stakes and shareholder value. The acquisition was financed through a combination of cash and existing resources, reflecting the company's strategic growth initiatives.
Corsair Gaming, Inc. (CRSR) Mission Statement
Overview of Mission Statement
Corsair Gaming, Inc. positions itself as a leading global provider of high-performance gear and technology for gamers and content creators. The company's mission focuses on delivering innovative products that enhance gaming experiences and empower creators.
Core Values
- Innovation: Committed to continuous innovation in gaming technology.
- Quality: Ensuring high-quality standards across all products.
- Community: Fostering a community of gamers and creators.
- Customer Focus: Prioritizing customer satisfaction and feedback.
Financial Performance and Metrics
As of September 30, 2024, Corsair Gaming reported net revenue of $304.2 million, a decrease of 16.2% compared to $363.2 million for the same period in 2023. The company experienced a net loss of $51.6 million in Q3 2024, reflecting a significant decline from a net loss of $2.9 million in Q3 2023.
Segment Performance
The company operates through two primary segments: Gamer and Creator Peripherals, and Gaming Components and Systems. The financial performance by segment is as follows:
| Segment | Q3 2024 Net Revenue (in thousands) | Q3 2023 Net Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Gamer and Creator Peripherals | $101,966 | $90,356 | +12.8% |
| Gaming Components and Systems | $202,233 | $272,837 | -25.9% |
| Total | $304,199 | $363,193 | -16.2% |
Gross Profit and Margin Analysis
For the three months ended September 30, 2024, Corsair Gaming's gross profit was $69.7 million, with a gross margin of 22.9%, down from 24.6% in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Profit (in thousands) | $69,661 | $89,353 |
| Gross Margin (%) | 22.9% | 24.6% |
Net Income and Loss
For the nine months ended September 30, 2024, Corsair reported a net loss attributable to common stockholders of $87.5 million, compared to a net loss of $9.6 million for the same period in 2023.
| Period | Net Loss (in thousands) |
|---|---|
| Q3 2024 | $51,586 |
| Q3 2023 | $2,886 |
| Nine Months 2024 | $87,467 |
| Nine Months 2023 | $9,571 |
Balance Sheet Highlights
As of September 30, 2024, Corsair's total assets amounted to $1.20 billion, while total liabilities were reported at $589.8 million.
| Item | As of September 30, 2024 (in thousands) | As of December 31, 2023 (in thousands) |
|---|---|---|
| Total Assets | $1,202,666 | $1,357,463 |
| Total Liabilities | $589,795 | $663,483 |
| Cash and Restricted Cash | $61,640 | $178,564 |
Recent Acquisition
On September 19, 2024, Corsair acquired Fanatec for approximately $43.7 million, enhancing its portfolio in the sim racing market.
Stock Performance
Corsair Gaming's stock (CRSR) performance has been volatile, reflecting broader market trends and company-specific challenges. As of the latest trading data, the stock price has fluctuated significantly due to market conditions and financial performance.
How Corsair Gaming, Inc. (CRSR) Works
Company Overview
Corsair Gaming, Inc. (CRSR) is a leading global provider of high-performance gaming gear and technology. The company operates primarily through two segments: Gamer and Creator Peripherals and Gaming Components and Systems.
Financial Performance
For the nine months ended September 30, 2024, Corsair reported total net revenue of $902.8 million, a decrease from $1.04 billion in the same period of 2023. The net loss attributable to Corsair Gaming, Inc. for the same period was $87.5 million compared to a net loss of $9.6 million the previous year.
| Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Net Revenue | $902.8 million | $1.04 billion |
| Net Loss | $(87.5) million | $(9.6) million |
| Gross Profit | $219.4 million | $257.6 million |
| Operating Expenses | $275.3 million | $260 million |
Revenue Breakdown by Segment
The following table shows the revenue breakdown by segment for the three months ended September 30, 2024.
| Segment | Net Revenue (in thousands) | Gross Profit (in thousands) |
|---|---|---|
| Gamer and Creator Peripherals | $101,966 | $39,032 |
| Gaming Components and Systems | $202,233 | $30,629 |
| Total | $304,199 | $69,661 |
Geographic Revenue Distribution
Revenue by geographic region for the nine months ended September 30, 2024 is as follows:
| Region | Net Revenue (in thousands) |
|---|---|
| Americas | $477,485 |
| Europe and Middle East | $318,872 |
| Asia Pacific | $106,399 |
| Total | $902,756 |
Cash Flow and Liquidity
As of September 30, 2024, Corsair had cash and restricted cash amounting to $61.6 million. The company used $19.7 million in cash for operations during the nine months ended September 30, 2024.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 totaled $275.3 million, which includes:
- Sales, General and Administrative: $224.7 million
- Product Development: $50.6 million
Recent Acquisitions
On September 19, 2024, Corsair completed the acquisition of Endor AG's Fanatec Business for approximately $43.7 million.
Stock Performance
Corsair's stock performance has shown volatility, with a reported net loss per share of $(0.56) for the three months ended September 30, 2024, compared to $(0.03) for the same period in 2023.
| Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss per Share | $(0.56) | $(0.03) |
| Weighted Average Shares Outstanding | 104,397 | 102,863 |
Market Conditions and Challenges
Corsair faces ongoing challenges including supply chain constraints and competitive pricing pressures within the gaming industry. The macroeconomic environment, including inflation and geopolitical tensions, impacts consumer demand and operational costs.
How Corsair Gaming, Inc. (CRSR) Makes Money
Revenue Segments
Corsair Gaming operates primarily through two reportable segments: Gamer and Creator Peripherals and Gaming Components and Systems. The following table summarizes the net revenue generated by each segment for the three and nine months ended September 30, 2024, compared to the same periods in 2023:
| Segment | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Gamer and Creator Peripherals | $101,966 | $90,356 | $303,168 | $258,053 |
| Gaming Components and Systems | $202,233 | $272,837 | $599,588 | $784,536 |
| Total Net Revenue | $304,199 | $363,193 | $902,756 | $1,042,589 |
Gross Profit and Margin Analysis
The gross profit for Corsair Gaming reflects the profitability of its product offerings. For the three months ended September 30, 2024, the company reported a total gross profit of $69,661,000, down from $89,353,000 in the same period of 2023. The gross margin also declined from 24.6% to 22.9% during this period. The following table details the gross profit and margin by segment:
| Segment | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|
| Gamer and Creator Peripherals | $39,032 | 38.3% |
| Gaming Components and Systems | $30,629 | 15.1% |
| Total Gross Profit | $69,661 | 22.9% |
Operating Expenses
Operating expenses consist of sales, general and administrative (SG&A) expenses and product development costs. For the nine months ended September 30, 2024, total operating expenses amounted to $275,262,000 compared to $260,024,000 in the prior year. Below is a breakdown of operating expenses:
| Expense Type | Amount (in thousands) |
|---|---|
| Sales, General and Administrative | $224,677 |
| Product Development | $50,585 |
| Total Operating Expenses | $275,262 |
Net Income and Loss
Corsair Gaming reported a net loss of $87,467,000 for the nine months ended September 30, 2024, compared to a net loss of $9,571,000 for the same period in 2023. The significant increase in losses reflects ongoing challenges in the gaming components market.
Geographic Revenue Distribution
The following table outlines the geographic distribution of net revenue for Corsair Gaming:
| Region | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Americas | $156,110 | $181,218 | $477,485 | $536,143 |
| Europe and Middle East | $116,783 | $132,641 | $318,872 | $351,212 |
| Asia Pacific | $31,306 | $49,334 | $106,399 | $155,234 |
| Total Net Revenue | $304,199 | $363,193 | $902,756 | $1,042,589 |
Key Financial Metrics
As of September 30, 2024, Corsair Gaming maintained total assets of $1,202,666,000 and total liabilities of $589,795,000. The company’s cash and restricted cash amounted to $61,600,000.
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Resources:
- Corsair Gaming, Inc. (CRSR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Corsair Gaming, Inc. (CRSR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Corsair Gaming, Inc. (CRSR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.