Corsair Gaming (CRSR) Stifel 2024 Cross Sector Insight Conference summary

Company overview and product innovation

• Offers a broad range of high-performance gear for gamers and content creators, including PC components, peripherals, and streaming equipment.

• Recent product launches include a SCUF controller for PC, a mobile controller for iPhone, and new sim racing gear.

• Acquired Drop for DIY keyboards, expanding customization options.

• Focuses on innovation, with frequent updates and new features based on gamer feedback.

• M&A is a key growth strategy, with recent and ongoing interest in sim racing and related markets.

Financial performance and market trends

• Peripherals business grew about 20% year-over-year in Q1, with gross margins around 40%.

• Components and systems business is slower, limited by market growth and upgrade cycles.

• Post-COVID inventory issues in peripherals have been resolved, supporting healthier margins and new product introductions.

• EBITDA more than doubled last year, with strong performance in peripherals.

• Anticipates improved performance in the second half of the year, especially if new GPUs launch.

Market outlook and consumer behavior

• Growth is driven by increasing adoption of gaming gear among a large base of gamers.

• Peripheral upgrades are less impacted by economic downturns than full PC builds.

• Word of mouth, influencer marketing, and in-store experiences are key to attracting new customers.

• Sim racing and mobile controllers are seen as significant growth opportunities.

• Asia, especially China, is currently the weakest market, while the Americas remain strong.