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Jun 30, 2024
Corsair Q2 2024 Earnings Report
Corsair's financial performance declined in Q2 2024 due to a softer-than-expected self-built PC market, but the Gamer and Creator Peripherals segment showed strong growth.
Key Takeaways
Corsair Gaming reported a decrease in net revenue for Q2 2024, primarily due to a decline in the self-built PC market affecting the Gaming Components and Systems segment. However, the Gamer and Creator Peripherals segment experienced significant growth. The company is implementing cost-saving measures and expects revenue to improve in the second half of the year.
Net revenue decreased by 19.7% to $261.3 million compared to Q2 2023.
Gaming Components and Systems segment revenue declined, while Gamer and Creator Peripherals segment revenue increased by 19.6%.
Net loss attributable to common shareholders was $29.6 million, or a loss of $0.28 per diluted share.
Adjusted EBITDA was a loss of $1.2 million, compared to a profit of $17.8 million in Q2 2023.
Revenue by Segment
Forward Guidance
Corsair expects revenue to improve through 2024, with further improvement in adjusted EBITDA led by an additional improvement in margin, stabilized shipping costs and continued tight operating expense controls.
Positive Outlook
- Net revenue to be in the range of $1.25 billion to $1.35 billion.
- Adjusted operating income to be in the range of $48 million to $63 million.
- Adjusted EBITDA to be in the range of $60 million to $75 million.
- Revenue is expected to improve through 2024
- Further improvement in adjusted EBITDA is expected
Challenges Ahead
- Dependence on consumer spending power.
- Exposure to inflation.
- Dependence on new games and the timing of new graphics hardware.
- The market for self-built PC components is a little softer than it was pre COVID.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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