Corsair Gaming (CRSR) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenue declined 16.2% year-over-year to $304.2 million, with a net loss of $58.4 million, impacted by a $32.5 million non-cash tax charge; adjusted EBITDA was $4.8 million, down from $23 million in Q3 2023.

• Peripheral segment showed strong growth, up 17% year-to-date, outpacing total addressable market growth, while components revenue declined sharply.

• Fanatec Sim Racing acquisition completed for $43.7 million, expanding into sim racing hardware; integration expected by Q2 2025.

• Anticipated NVIDIA GPU launch in early 2025 expected to drive a rebound in high-end PC component sales and overall business performance.

• Q3 2024 included a one-time $32.5 million non-cash charge for a valuation allowance on deferred tax assets.

Financial highlights

• Q3 2024 gross profit was $69.7 million (22.9% margin), down from $89.4 million (24.6%) in Q3 2023.

• Adjusted EBITDA for Q3 2024 was $4.8 million, down 79% year-over-year.

• Peripheral segment Q3 revenue rose to $102 million from $90.4 million in Q3 2023, with gross margin improving to 38.3%.

• Components and systems segment Q3 revenue fell to $202.2 million from $272.8 million, with gross margin dropping to 15.1%.

• Memory products Q3 revenue was $97 million, down from $131.7 million, with gross margin at 10.7%.

Outlook and guidance

• Full-year 2024 revenue expected between $1.25 billion and $1.35 billion, including $20 million from Fanatec.

• Adjusted EBITDA guidance lowered to $40 million–$55 million; adjusted operating income guidance now $28–$43 million.

• Management expects 2025 to be a strong year, driven by new GPU launches and sim racing growth.

• Cost-saving actions, including workforce reduction, expected to yield several million dollars in quarterly savings starting Q4 2024.

• Anticipated cash flows, current cash, and borrowing capacity expected to fund operations for at least the next 12 months.