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Corsair Gaming Inc (CRSR) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...

In This Article:

  • Q4 2024 Revenue: $413.6 million compared to $417.3 million in Q4 2023.

  • Full Year 2024 Revenue: $1,316.4 million compared to $1,459.9 million in 2023.

  • Q4 2024 Gross Profit: $108.2 million compared to $102.7 million in Q4 2023.

  • Q4 2024 Gross Margin: 26.2% compared to 24.6% in Q4 2023.

  • Q4 2024 Net Income: $1.3 million or $0.01 per diluted share compared to $6.2 million or $0.06 per diluted share in Q4 2023.

  • Q4 2024 Adjusted Net Income: $24.8 million or $0.23 per diluted share compared to $23.2 million or $0.22 per share in Q4 2023.

  • Q4 2024 Adjusted EBITDA: $33.1 million compared to $33.7 million for Q4 2023.

  • Full Year 2024 Adjusted EBITDA: $54.7 million compared to $95.1 million in 2023.

  • Q4 2024 SG&A Expenses: $85.3 million compared to $73.8 million in Q4 2023.

  • Q4 2024 R&D Expenses: $17 million compared to $16.7 million in Q4 2023.

  • Cash Balance at End of Q4 2024: $109.6 million.

  • Debt at End of Q4 2024: $174 million, down $25 million year over year.

  • 2025 Revenue Guidance: $1.4 billion to $1.6 billion.

  • 2025 Adjusted Operating Income Guidance: $67 million to $87 million.

  • 2025 Adjusted EBITDA Guidance: $80 million to $100 million.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Corsair Gaming Inc (NASDAQ:CRSR) reported strong Q4 revenue of $414 million and adjusted EBITDA of $33 million, indicating robust financial performance.

  • The integration of the Fanatec sim racing company is progressing well, expected to drive positive revenue and EBITDA growth.

  • The gaming and creative business grew by 20% year-on-year, with the Fanatec acquisition accelerating growth in Q4.

  • The Elgato product line, particularly the Stream Deck, is performing exceptionally well, creating a new category in the market.

  • Corsair's partnerships with major brands like Activision and Apple have increased brand awareness and sales volumes.

Negative Points

  • Full-year 2024 net revenue decreased to $1,316.4 million from $1,459.9 million in 2023, indicating a decline in overall sales.

  • The gaming components and systems segment saw a decrease in revenue, contributing $244.1 million in Q4 2024 compared to $280.5 million in Q4 2023.

  • Fourth-quarter GAAP operating income dropped to $5.9 million from $12.1 million in Q4 2023, reflecting reduced profitability.

  • Net income attributable to common shareholders was only $1.3 million in Q4 2024, a significant drop from $6.2 million in Q4 2023.

  • The company faces challenges from tariffs, although mitigation strategies are in place, which could impact future costs and pricing.