Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Corsair Gaming, Inc. | |
Entity Central Index Key | 0001743759 | |
Current Fiscal Year End Date | --12-31 | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-39533 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-2335306 | |
Entity Address, Address Line One | 115 N. McCarthy Boulevard | |
Entity Address, City or Town | Milpitas | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95035 | |
City Area Code | 510 | |
Local Phone Number | 657-8747 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 103,905,563 | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | CRSR | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net revenue | $ 337,257 | $ 353,964 |
Cost of revenue | 250,618 | 268,560 |
Gross profit | 86,639 | 85,404 |
Operating expenses: | ||
Sales, general and administrative | 80,217 | 67,529 |
Product development | 16,641 | 16,838 |
Total operating expenses | 96,858 | 84,367 |
Operating income (loss) | (10,219) | 1,037 |
Other (expense) income: | ||
Interest expense | (3,691) | (4,302) |
Interest income | 1,565 | 1,474 |
Other expense, net | (461) | (496) |
Total other expense, net | (2,587) | (3,324) |
Loss before income taxes | (12,806) | (2,287) |
Income tax benefit | 1,777 | 639 |
Net loss | (11,029) | (1,648) |
Less: Net income attributable to noncontrolling interest | 536 | 364 |
Net loss attributable to Corsair Gaming, Inc. | (11,565) | (2,012) |
Calculation of net loss per share attributable to common stockholders of Corsair Gaming, Inc.: | ||
Net loss attributable to Corsair Gaming, Inc. | (11,565) | (2,012) |
Change in redemption value of redeemable noncontrolling interest | (975) | 958 |
Net loss attributable to common stockholders of Corsair Gaming, Inc. | $ (12,540) | $ (1,054) |
Net loss per share attributable to common stockholders of Corsair Gaming, Inc.: | ||
Basic | $ (0.12) | $ (0.01) |
Diluted | $ (0.12) | $ (0.01) |
Weighted-average common shares outstanding: | ||
Basic | 103,563 | 101,685 |
Diluted | 103,563 | 101,685 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (11,029) | $ (1,648) |
Other comprehensive gain (loss): | ||
Foreign currency translation adjustments, net of tax benefit (expense) of $124 and $(18) for the three months ended March 31, 2024 and 2023, respectively | (1,415) | 1,667 |
Unrealized foreign exchange gain (loss) from long-term intercompany loan, net of tax benefit (expense) of $160 and $(127) for the three months ended March 31, 2024 and 2023, respectively | 24 | (26) |
Comprehensive loss | (12,420) | (7) |
Less: Comprehensive income attributable to noncontrolling interest | 292 | 400 |
Comprehensive loss attributable to Corsair Gaming, Inc. | $ (12,712) | $ (407) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax benefit (expense) | $ 124 | $ (18) |
Unrealized foreign exchange loss from long-term intercompany loans, tax benefit (expense) | $ 160 | $ (127) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash | $ 127,768 | $ 175,620 |
Restricted cash | 2,174 | 2,705 |
Accounts receivable, net | 204,920 | 253,268 |
Inventories | 251,747 | 240,172 |
Prepaid expenses and other current assets | 34,573 | 39,824 |
Total current assets | 621,182 | 711,589 |
Restricted cash, noncurrent | 241 | 239 |
Property and equipment, net | 31,185 | 32,212 |
Goodwill | 354,410 | 354,705 |
Intangible assets, net | 178,151 | 188,009 |
Other assets | 72,022 | 70,709 |
Total assets | 1,257,191 | 1,357,463 |
Current liabilities: | ||
Debt maturing within one year, net | 12,213 | 12,190 |
Accounts payable | 191,401 | 239,957 |
Other liabilities and accrued expenses | 138,487 | 166,340 |
Total current liabilities | 342,101 | 418,487 |
Long-term debt, net | 171,106 | 186,006 |
Deferred tax liabilities | 14,104 | 17,395 |
Other liabilities, noncurrent | 40,629 | 41,595 |
Total liabilities | 567,940 | 663,483 |
Commitments and Contingencies (Note 9) | ||
Temporary equity | ||
Redeemable noncontrolling interest | 15,925 | 15,937 |
Corsair Gaming, Inc. stockholders’ equity: | ||
Preferred stock, $0.0001 par value: 5,000 shares authorized, nil and nil shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | ||
Common stock, $0.0001 par value: 300,000 shares authorized, 103,859 and 103,255 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | 10 | 10 |
Additional paid-in capital | 640,293 | 630,642 |
Retained earnings | 27,870 | 40,410 |
Accumulated other comprehensive loss | (4,634) | (3,487) |
Total Corsair Gaming, Inc. stockholders’ equity | 663,539 | 667,575 |
Nonredeemable noncontrolling interest | 9,787 | 10,468 |
Total permanent equity | 673,326 | 678,043 |
Total liabilities, temporary equity and permanent equity | $ 1,257,191 | $ 1,357,463 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 103,859,000 | 103,859,000 |
Common stock, shares outstanding | 103,255,000 | 103,255,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Corsair Gaming, Inc. Stockholders' Equity | Nonredeemable Noncontrolling Interest |
Balance at Dec. 31, 2022 | $ 634,067 | $ 10 | $ 593,486 | $ 37,223 | $ (6,881) | $ 623,838 | $ 10,229 |
Balance, shares at Dec. 31, 2022 | 101,385 | ||||||
Net income (loss) | (1,863) | (2,012) | (2,012) | 149 | |||
Other comprehensive income (loss) | 1,619 | 1,605 | 1,605 | 14 | |||
Change in redemption value of redeemable noncontrolling interest | 958 | 958 | 958 | ||||
Issuance of common stock in connection with employee equity incentive plans | 2,117 | 2,117 | 2,117 | ||||
Issuance of common stock in connection with employee equity incentive plans, shares | 671 | ||||||
Shares withheld related to net share settlement | (556) | (556) | (556) | ||||
Shares withheld related to net share settlement, shares | (39) | ||||||
Stock-based compensation | 7,321 | 7,321 | 7,321 | ||||
Balance at Mar. 31, 2023 | 643,663 | $ 10 | 602,368 | 36,169 | (5,276) | 633,271 | 10,392 |
Balance, shares at Mar. 31, 2023 | 102,017 | ||||||
Balance at Dec. 31, 2023 | 678,043 | $ 10 | 630,642 | 40,410 | (3,487) | 667,575 | 10,468 |
Balance, shares at Dec. 31, 2023 | 103,255 | ||||||
Net income (loss) | (11,346) | (11,565) | (11,565) | 219 | |||
Other comprehensive income (loss) | (1,247) | (1,147) | (1,147) | (100) | |||
Change in redemption value of redeemable noncontrolling interest | (975) | (975) | (975) | ||||
Dividend paid to nonredeemable noncontrolling interest | (800) | (800) | |||||
Issuance of common stock in connection with employee equity incentive plans | 2,351 | 2,351 | 2,351 | ||||
Issuance of common stock in connection with employee equity incentive plans, shares | 633 | ||||||
Shares withheld related to net share settlement | (398) | (398) | (398) | ||||
Shares withheld related to net share settlement, shares | (29) | ||||||
Stock-based compensation | 7,698 | 7,698 | 7,698 | ||||
Balance at Mar. 31, 2024 | $ 673,326 | $ 10 | $ 640,293 | $ 27,870 | $ (4,634) | $ 663,539 | $ 9,787 |
Balance, shares at Mar. 31, 2024 | 103,859 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (11,029) | $ (1,648) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Stock-based compensation | 7,691 | 7,246 |
Depreciation | 3,087 | 2,897 |
Amortization | 9,515 | 9,741 |
Deferred income taxes | (6,059) | (2,209) |
Other | 758 | 128 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 46,928 | 14,623 |
Inventories | (12,101) | 4,672 |
Prepaid expenses and other assets | 4,437 | (1,077) |
Accounts payable | (47,962) | 18,156 |
Other liabilities and accrued expenses | (21,582) | (10,703) |
Net cash (used in) provided by operating activities | (26,317) | 41,826 |
Cash flows from investing activities: | ||
Purchase price adjustment related to business acquisition | 1,041 | |
Purchase of property and equipment | (2,520) | (4,677) |
Net cash used in investing activities | (1,479) | (4,677) |
Cash flows from financing activities: | ||
Repayment of debt | (15,000) | (10,000) |
Payment of deferred and contingent consideration | (4,942) | (950) |
Proceeds from issuance of shares through employee equity incentive plans | 2,351 | 2,117 |
Payment of taxes related to net share settlement of equity awards | (398) | (556) |
Dividend paid to noncontrolling interest | (1,960) | |
Payment of other offering costs | (497) | |
Net cash used in financing activities | (19,949) | (9,886) |
Effect of exchange rate changes on cash | (636) | 730 |
Net (decrease) increase in cash and restricted cash | (48,381) | 27,993 |
Cash and restricted cash at the beginning of the period | 178,564 | 154,060 |
Cash and restricted cash at the end of the period | 130,183 | 182,053 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | 3,553 | 4,184 |
Cash paid (refunded) for income taxes, net | 626 | (546) |
Supplemental schedule of non-cash investing and financing activities: | ||
Equipment purchased and unpaid at period end | 1,171 | 2,234 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 1,763 | $ 365 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (11,565) | $ (2,012) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | None of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted , modified or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2024, as such terms are defined under Item 408(a) of Regulation S-K, except as follows: On March 11, 2024 , Thi La , a member of our board of directors , adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 185,000 shares of the Company’s common stock until June 30, 2025 . |
Other Directors or Officers [Member] | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b 5-1 Arr Modified Flag | false |
Non-Rule 10b 5-1 Arr modified flag | false |
Thi La [Member] | |
Trading Arrangements, by Individual | |
Name | Thi La |
Title | member of our board of directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 11, 2024 |
Aggregate Available | 185,000 |
Trd Arr Expiration Date | June 30, 2025 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business Corsair Gaming, Inc., a Delaware corporation, together with its subsidiaries (collectively, “Corsair” the “Company”, “we”, “us”, or “our”), is a global provider and innovator of high-performance products for gamers and digital creators, many of which build their own PCs using our components. Corsair is organized into two reportable segments: • Gamer and Creator Peripherals . Includes our high-performance gaming keyboards, mice, headsets, controllers, and streaming products, which includes capture cards, Stream Decks, microphones and audio interfaces, our Facecam streaming cameras, studio accessories, and gaming furniture, among others. • Gaming Components and Systems . Includes our high-performance power supply units, or PSUs, cooling solutions, computer cases, and DRAM modules, as well as high-end prebuilt and custom-built gaming PCs and laptops, and gaming monitors, among others. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation Our interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The accounting policies we follow are set forth in Part II, Item 8, Note 2, “Significant Accounting Policies”, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10K for the year ended December 31, 2023 which was filed with the SEC on February 27, 2024. The condensed consolidated balance sheet as of December 31, 2023, included herein, was derived from the audited consolidated financial statements as of that date. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed, combined or omitted pursuant to such rules and regulations. Therefore, these interim condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2023, included in our Annual Report on Form 10-K. The interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and in management’s opinion, include all adjustments, which consist of only normal recurring adjustments necessary for the fair statement of our condensed consolidated balance sheet as of March 31, 2024 and our results of operations for the three months ended March 31, 2024 and 2023. The results for the three months ended March 31, 2024 are not necessarily indicative of the results expected for the current fiscal year or any other future periods. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Corsair and its subsidiaries, after the elimination of intercompany accounts and transactions. We consolidate subsidiaries in which we have a controlling interest. For the consolidated subsidiaries in which we own less than 100% of the equity, our consolidated net comprehensive income (loss) is reduced by the portion attributable to the noncontrolling interest. The ownership interest of other investors is recorded as noncontrolling interest in the condensed consolidated balance sheets. In determining whether an entity is considered a controlled entity, we apply the VIE (variable interest entity) and VOE (voting interest entity) models. Entities that do not qualify as a VIE are assessed for consolidation under the VOE model. Under the VOE model, we consolidate the entity if we determine that we have a controlling financial interest in the entity through our ownership of greater than 50% of the outstanding voting shares of the entity and that other equity holders do not have substantive voting, participating or liquidation rights. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the valuation of intangible assets, accounts receivable, sales return reserves, reserves for customer incentives, warranty reserves, inventory, derivative instruments, stock-based compensation, and deferred income tax. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the potential impacts from events in the current economic and geopolitical environment. We adjust such estimates and assumptions when facts and circumstances dictate. The extent to which the current macroeconomic conditions and the development of the geopolitical unrest will impact our business going forward depends on numerous dynamic factors that we cannot reliably predict. Actual results could differ materially from those estimates . Recently Adopted Accounting Pronouncements None. Accounting Pronouncements Issued but Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvement to Reportable Segment Disclosure. This ASU updates the reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment's profit or loss in assessing segment performance and deciding how to allocate resources. The ASU will be effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. This ASU will result in additional required disclosures in our consolidated financial statements, when adopted. We are currently evaluating the provisions of this ASU and expect to adopt them for the year ended December 31, 2024. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as additional information on income tax paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024, with early adoption permitted. This ASU will result in additional required disclosures in our consolidated financial statements, when adopted. We are currently evaluating the provisions of this ASU and expect to adopt them for the year ended December 31, 2025. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 3. Fair Value Measurement U.S. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy is broken down into the following three levels of inputs that may be used to measure fair value: Level 1 —Quoted prices are available in active markets for identical assets or liabilities as of the measurement date. Level 2 —Pricing inputs are other than quoted prices in active market, which are either directly or indirectly observable as of the report date. The nature of these securities includes investments for which quoted prices are available but traded less frequently and investments that are fair valued using other securities, the parameters of which can be directly observed. Level 3 —Securities that have little to no pricing observability as of the report date. These securities are measured using management’s best estimate of fair value, where the inputs into the determination of fair value are not observable and require significant management judgment or estimation. Fair value accounting is applied to all financial assets and liabilities that are recognized or disclosed at fair value in our condensed consolidated financial statements on a recurring basis. Our financial instruments, including cash, restricted cash, accounts receivable, accounts payable, borrowings from credit lines and other liabilities and accrued expenses approximate fair value due to their short-term maturities. Our financial assets and liabilities that were measured at fair value on a recurring basis consisted of foreign currency forward contracts and the fair values of these contracts, which were classified as Level 2 of the fair value hierarchy, were based on similar exchange traded derivatives and the related asset or liability. The balances of our financial assets and liabilities as of March 31, 2024 and December 31, 2023 were not material. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 4. Derivative Financial Instruments From time to time, we enter into derivative instruments such as foreign currency forward contracts, to minimize the short-term impact of foreign currency exchange rate fluctuations on certain foreign currency denominated assets and liabilities. The derivative instruments are recorded at fair value in prepaid expenses and other current assets or other liabilities and accrued expenses on the condensed consolidated balance sheets. We do not designate such instruments as hedges for accounting purposes; accordingly, changes in the value of these contracts are recognized in each reporting period in other (expense) income, net in the condensed consolidated statements of operations. We do no t enter into derivative instruments for trading purposes. The foreign currency forward contracts generally mature within two to four months . The notional principal amount of outstanding foreign exchange forward contracts was $ 28.5 million and $ 44.3 million as of March 31, 2024 and December 31, 2023, respectively. The net fair value gains (losses) recognized in other (expense) income , net in relation to these derivative instruments was $ 0.6 million and $( 0.4 ) million for the three months ended March 31, 2024 and 2023 , respectively. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Business Combinations | 5. Business Combinations Drop Acquisition On July 14, 2023 (the “Acquisition Date”), we completed the acquisition of the assets and business of Massdrop Inc. (“Drop”), including the assumption of trade payables and certain accrued liabilities (the “Drop Acquisition”) for a cash purchase consideration of approximately $ 14.2 million, net of $ 0.6 million of cash acquired. On January 29, 2024, in connection with a joint release letter executed between us and Drop's seller, we received a refund of $ 1.0 million from escrow funds in relation to a purchase price adjustment for net working capital. With this refund, total purchase consideration, net of cash acquired, decreased to $ 13.2 million. Drop, a community-based e-commerce company was headquartered in San Francisco, California, and specialized in customized DIY keyboards and keycaps. We expect this acquisition to give Corsair a leading presence in the personalized keyboards market which is one of the fastest growing trends in the gaming peripherals space as well as allow us to offer specialized Corsair and Elgato products to the enthusiast community that Drop is engaged with. Drop’s results of operations are included in our condensed consolidated statements of operations with effect from July 14, 2023. The Drop Acquisition was accounted for as a business combination under the acquisition method of accounting. The final allocation of the Drop Acquisition purchase consideration to the estimated fair value of the assets acquired and liabilities assumed, inclusive of immaterial measurement period adjustments, was as follows (in thousands): Amounts Accounts receivable $ 135 Inventories 7,739 Prepaid and other assets 866 Property and equipment 109 Identifiable intangible assets 9,160 Goodwill 5,960 Accounts payable ( 7,064 ) Accrued liabilities ( 3,726 ) Purchase consideration, net of cash acquired $ 13,179 The fair value of certain working capital related items, including accounts receivable, prepaid and other assets, accounts payable and accrued liabilities, as well as the fair value of property and equipment approximated their book values at the Acquisition Date. The fair value of the inventories was estimated by major category, at net realizable value, which we believe approximates the price a market participant could achieve in a current sale. The difference between the fair value of the inventories and the book value recorded on the Acquisition Date was $ 2.0 million, of which we recognized $ 0.2 million and $ 1.5 million in cost of revenue in the condensed consolidated statements of operations for the three months ended March 31, 2024 and for the year ended December 31, 2023, respectively, upon the sale of the acquired inventory. The goodwill of $ 6.0 million represents the expansion of our market presence by utilizing Drop's strength in direct consumer reach as well as the ability to expand the customizable keyboard and keycap market. The goodwill is deductible for tax purposes and is assigned to our Gaming Peripherals reporting unit. The $ 9.2 million identifiable intangible assets acquired include developed technology of $ 5.2 million, trade name of $ 2.3 million and domain name of $ 1.7 million. The fair values of the identified intangible assets were estimated primarily using the income approach and were based on inputs that are not observable in the market which we consider to be Level 3 inputs. These intangible assets are being amortized over their estimated useful lives, ranging from 5 to 15 years, using the straight-line method of amortization. The identifiable intangible assets acquired are deductible for tax purposes. The acquisition-related costs incurred in the three months ended March 31 2024 and 2023 were no t material. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The following table summarizes the changes in the carrying amount of goodwill by reportable segment (in thousands): Gaming Gamer and Total Balance as of December 31, 2023 $ 148,936 $ 205,769 $ 354,705 Measurement period adjustments — ( 27 ) ( 27 ) Effect of foreign currency exchange rates ( 34 ) ( 234 ) ( 268 ) Balance as of March 31, 2024 $ 148,902 $ 205,508 $ 354,410 Intangible assets, net The following table is a summary of intangible assets, net (in thousands): March 31, 2024 December 31, 2023 Gross Accumulated Net Gross Accumulated Net Developed technology $ 47,221 $ 23,227 $ 23,994 $ 47,221 $ 21,206 $ 26,015 Trade name 34,050 9,633 24,417 34,114 9,060 25,054 Customer relationships 218,452 144,292 74,160 218,453 138,800 79,653 Patent portfolio 34,512 18,046 16,466 34,781 17,031 17,750 Supplier relationships 5,888 2,208 3,680 6,136 2,045 4,091 Total finite-life intangibles 340,123 197,406 142,717 340,705 188,142 152,563 Indefinite life trade name 35,430 — 35,430 35,430 — 35,430 Other 4 — 4 16 — 16 Total intangible assets $ 375,557 $ 197,406 $ 178,151 $ 376,151 $ 188,142 $ 188,009 In the year when an identified intangible asset becomes fully amortized, the fully amortized balances from the gross asset and accumulated amortization amounts are removed from the table above. The estimated future amortization expense of intangible assets as of March 31, 2024 is as follows (in thousands): Amounts Remainder of 2024 $ 28,488 2025 37,620 2026 34,315 2027 24,661 2028 4,370 Thereafter 13,263 Total $ 142,717 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 7. Balance Sheet Components The following tables present the components of certain balance sheet amounts (in thousands): March 31, December 31, Cash $ 127,768 $ 175,620 Restricted cash—short term 2,174 2,705 Restricted cash—noncurrent 241 239 Total cash and restricted cash $ 130,183 $ 178,564 March 31, December 31, Accounts receivable $ 206,156 $ 254,433 Due from Factor — 283 Allowance for doubtful accounts ( 1,236 ) ( 1,448 ) Accounts receivable, net $ 204,920 $ 253,268 As of March 31, 2024, two customers represented 42.3 % and 17.8 % of our accounts receivable, net balance, respectively. As of December 31, 2023, two customers represented 42.9 % and 18.5 % of our accounts receivable, net balance, respectively. March 31, December 31, Raw materials $ 45,876 $ 64,576 Work in progress 8,980 5,204 Finished goods 196,891 170,392 Inventories $ 251,747 $ 240,172 March 31, December 31, Manufacturing equipment $ 29,121 $ 28,168 Leasehold improvements 20,419 19,789 Computer equipment, software and office equipment 15,932 16,083 Furniture and fixtures 3,846 3,825 Total property and equipment $ 69,318 $ 67,865 Less: Accumulated depreciation and amortization ( 38,133 ) ( 35,653 ) Property and equipment, net $ 31,185 $ 32,212 March 31, December 31, Right-of-use assets $ 35,049 $ 36,324 Deferred tax asset 30,794 27,749 Other 6,179 6,636 Other assets $ 72,022 $ 70,709 March 31, December 31, Accrued reserves for customer incentive programs $ 32,391 $ 41,148 Accrued reserves for sales returns 32,951 36,822 Accrued payroll and related expenses 14,056 17,989 Accrued freight expenses 9,968 13,553 Operating lease liabilities, current 9,151 9,721 Accrued legal expense 6,516 1,014 Accrued warranty 6,323 7,155 Contract liabilities 4,490 7,442 Other 22,641 31,496 Other liabilities and accrued expenses $ 138,487 $ 166,340 March 31, December 31, Operating lease liabilities, noncurrent $ 37,575 $ 38,587 Other 3,054 3,008 Other liabilities, noncurrent $ 40,629 $ 41,595 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt On September 3, 2021, we refinanced the First Lien Credit and Guaranty Agreement with a new Credit Agreement (as amended, the “Credit Agreement”). The Credit Agreement provides for a $ 100.0 million five-year revolving credit facility (“Revolving Facility”) and a $ 250.0 million five-year term loan facility (“Term Loan”), with each maturing in September 2026 . The Credit Agreement also permits, subject to conditions stated therein, additional incremental facilities in a maximum aggregate principal amount not to exceed $ 250.0 million. We may prepay the Term Loan and the Revolving Facility at any time without premium or penalty. We prepaid $ 11.9 million and $ 34.1 million of the Term Loan principal in the three months ended March 31, 2024 and in the year ended December 31, 2023, respectively. The following table presents the carrying value of our Term Loan (in thousands): March 31, December 31, Term Loan (variable rate) due September 2026 $ 184,000 $ 199,000 Debt discount and issuance cost, net of amortization ( 681 ) ( 804 ) Total debt 183,319 198,196 Less: debt maturing within one year, net 12,213 12,190 Long-term debt, net $ 171,106 $ 186,006 As of March 31, 2024, the estimated fair value of the Term Loan, which we have classified as a Level 2 financial instrument, was approximately $ 181.8 million. As of March 31, 2024, and December 31, 2023, we had $ 100.0 million unused capacity under the Revolving Facility. The Credit Agreement has a variable rate structure. According to the provisions in the Third Amendment to the Credit Agreement (“Third Amendment”), beginning 2024, the Term Loan and the Revolving Facility carry interest at our election at either (a) Bloomberg Short-Term Bank Yield Index rate (“BSBY”) plus a percentage spread (ranging from 1.25 % to 2.25 %) based on our total net leverage ratio, or (b) the base rate (as described in the Credit Agreement as the greatest of (i) the prime rate, (ii) the federal funds rate plus 0.50 % and (iii) one-month BSBY plus 1.0 %) plus a percentage spread (ranging from 0.25 % to 1.25 %) based on our total net leverage ratio. Additionally, the commitment fees on the unused portion of the Revolving Facility ranges from 0.2 % to 0.4 % based on our total net leverage ratio. The effective interest rate of our Term Loan, inclusive of the debt discount and debt issuance costs, was approximately 7.48 % and 7.06 % for the three months ended March 31, 2024, and 2023, respectively. The Credit Agreement contains covenants with which we must comply during the term of the agreement, which we believe are ordinary and standard for agreements of this nature, including the maintenance of a maximum Consolidated Total Net Leverage Ratio (“CTNL Ratio”) and a minimum Consolidated Interest Coverage Ratio (“CIC Ratio”) (as defined in the Credit Agreement). According to the provisions in the Third Amendment, beginning 2024, we are required to maintain a maximum CTNL Ratio of 3.00 to 1.00 and a minimum CIC ratio of 3.00 to 1.00, with the provision that the maximum CTNL Ratio can be temporarily increased to 3.50 to 1.00 upon the occurrence of a Qualified Acquisition (as defined in, and subject to the requirements of the Credit Agreement). As of March 31, 2024, we were not in default under the Credit Agreement. Our obligations under the Credit Agreement are guaranteed by substantially all of our U.S. subsidiaries and secured by a security interest in substantially all assets of the Company and the guarantor subsidiaries, subject to certain exceptions detailed in the Credit Agreement and related ancillary documentation. The following table summarizes the interest expense recognized for all periods presented (in thousands): Three Months Ended 2024 2023 Credit Agreement: Contractual interest expense for term loan $ 3,456 $ 4,065 Amortization of debt discount and issuance cost 160 134 Other 75 103 Total interest expense $ 3,691 $ 4,302 The future principal payments under our total long-term debt as of March 31, 2024 are as follows (in thousands): Amounts Remainder of 2024 $ 9,375 2025 12,500 2026 162,125 2027 — 2028 — Total debt $ 184,000 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Product Warranties Changes in our assurance-type warranty obligations were as follows (in thousands): Three Months Ended 2024 2023 Beginning of the period $ 7,155 $ 3,685 Warranty provision related to products shipped 993 1,378 Deductions for warranty claims processed ( 1,825 ) ( 1,596 ) End of period $ 6,323 $ 3,467 Unconditional Purchase Obligations In the normal course of business, we enter into various purchase commitments for goods or services. Our long-term non-cancelable purchase commitments consist primarily of multi-year contractual arrangements relating to subscriptions for cloud computing hosting arrangements for our enterprise resource planning (“ERP”) system and the related support services. The total long-term non-cancelable purchase commitments as of March 31, 2024 was as follows (in thousands): Amounts Remainder of 2024 $ 766 2025 337 2026 — 2027 — 2028 — Thereafter — Total $ 1,103 Our total non-cancelable long term purchase commitments outstanding as of December 31, 2023 was $ 1.5 million. Letters of Credit There were no letters of credit outstanding as of March 31, 2024 and December 31, 2023. No amounts have been drawn upon the letters of credit for all periods presented. Legal Proceedings We may from time to time be involved in various claims and legal proceedings of a character normally incident to the ordinary course of business. Litigation can be expensive and disruptive to normal business operations, and the results of complex legal proceedings are difficult to predict, and our view of these matters may change in the future as the litigation and events related thereto unfold. We expense legal fees as incurred and we record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on currently available information, we believe that existing claims or proceedings are not likely to have a material adverse effect on our financial position, or the outcome of these matters is currently not determinable. An unfavorable outcome to any legal matter, if material, could have an adverse effect on our operations or financial position, liquidity of results of operations. Indemnification In the ordinary course of business, we may provide indemnifications of varying scope and terms with respect to certain transactions. We have entered into indemnification agreements with directors and certain officers and employees that will require Corsair, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon Corsair to provide indemnification under such agreements, and thus, there are no claims that we are aware of that could have a material effect on our condensed consolidated balance sheets, statements of operations, or statements of cash flows. We currently have directors’ and officers’ insurance . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Shelf-Registration Statement On July 22, 2022, we filed a shelf registration statement on Form S-3 with the SEC, which was declared effective August 1, 2022 (the “2022 Shelf Registration Statement”). The 2022 Shelf Registration Statement registered securities to be offered by us, in an amount up to $ 300.0 million, including common stock, preferred stock and warrants, through August 1, 2025. In addition, the 2022 Shelf Registration Statement registered 54,179,559 shares of common stock held by the selling securityholders named in the 2022 Shelf Registration Statement. We will not receive any of the proceeds from the sale of the shares registered by the selling securityholders. As of March 31, 2024 , $ 216.7 million remained available for issuance under the 2022 Shelf Registration Statement. |
Equity Incentive Plans and Stoc
Equity Incentive Plans and Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive Plans and Stock-Based Compensation | 11. Equity Incentive Plans and Stock-Based Compensation As of March 31, 2024, we have two active equity incentive plans: the 2020 Equity Incentive Plan and the Employee Stock Purchase Plan (“ESPP”). In February 2024, we granted performance stock units (“PSU”) to certain senior members of our management team under the 2020 Equity Incentive Plan. The vesting of PSUs is conditional upon the achievement of certain internal financial targets for the year ended December 31, 2024 and these will vest over a three-year service period. The number of units issued can range from 0 % to 200 % of the target shares depending on the achievement of the financial targets. In the event such targets are achieved, one-third of the eligible PSUs would vest and the remaining two-thirds would thereafter vest evenly over the second and third years. In the event the minimum targets are not achieved, no PSUs would vest. The compensation expense associated with PSUs is recognized using the accelerated attribution method over the requisite service period, and it is based on the estimated number of shares that is considered probable of vesting. Adjustments to the compensation expense will be made in each reporting period based on changes in our estimate of the number of PSUs that are probable of vesting. We measure and recognize compensation for all stock-based compensation awards, including stock options, stock purchase rights, restricted stock units (“RSU”) and PSU, based upon the grant-date fair value of those awards. The grant-date fair value of our stock options and stock purchase rights is estimated using a Black-Scholes-Merton option-pricing model. The fair value of our RSUs and PSUs are calculated based on the market value of our stock at the grant date. The following table summarizes stock-based compensation expense by line item in the condensed consolidated statements of operations (in thousands): Three Months Ended 2024 2023 Cost of revenue $ 545 $ 440 Sales, general and administrative 6,281 5,871 Product development 865 935 Stock-based compensation expense, net of amounts capitalized (1) $ 7,691 $ 7,246 Income tax benefits related to stock-based compensation expense $ 447 $ 1,354 (1) Stock-based compensation expense capitalized were not material for each of the periods presented. The following table summarizes by type of grant, the total unrecognized stock-based compensation expense and the remaining period over which such expense is expected to be recognized (in thousands, except number of years): March 31, 2024 Unrecognized Expense Remaining weighted average period (In years) Stock options $ 34,687 2.9 RSUs 30,558 2.8 PSUs 4,079 2.9 ESPP 408 0.4 Total unrecognized stock-based compensation expense $ 69,732 |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 12. Net Loss Per Share The following table summarizes the calculation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended 2024 2023 Numerator Net loss $ ( 11,029 ) $ ( 1,648 ) Less: Net income attributable to noncontrolling interest 536 364 Net loss attributable to Corsair Gaming, Inc. ( 11,565 ) ( 2,012 ) Change in redemption value of redeemable noncontrolling interest ( 975 ) 958 Net loss attributable to common stockholders of Corsair Gaming, Inc. $ ( 12,540 ) $ ( 1,054 ) Denominator Basic weighted-average shares outstanding 103,563 101,685 Effect of dilutive securities — — Total diluted weighted-average shares outstanding 103,563 101,685 Net loss per share attributable to common stockholders of Corsair Gaming, Inc.: Basic $ ( 0.12 ) $ ( 0.01 ) Diluted $ ( 0.12 ) $ ( 0.01 ) Anti-dilutive potential common shares (1) 12,715 11,934 (1) Potential common share equivalents were not included in the calculation of diluted net loss per share as the effect would have been anti-dilutive. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The table below presents our loss before income taxes, income tax benefit and effective income tax rates for all periods presented (in thousands, except percentages): Three Months Ended 2024 2023 Loss before income taxes $ ( 12,806 ) $ ( 2,287 ) Income tax benefit 1,777 639 Effective tax rate 13.9 % 27.9 % We are subject to income taxes in the United States and foreign jurisdictions in which we do business. These foreign jurisdictions have statutory tax rates different from those in the United States. Accordingly, our effective tax rates will vary depending on the relative proportion of foreign to United States income, the utilization of net operating loss and tax credit carry forwards, changes in geographic mix of income and expense, changes in management’s assessment of matters such as the ability to realize deferred tax assets, and changes in tax laws. Our effective tax rates were 13.9 % and 27.9 % for the three months ended March 31, 2024 and 2023, respectively. The decrease in our effective rate in the three-month period was primarily due to a change in the mix of income and losses in the various tax jurisdictions in which we operate, and an increase in shortfall tax deficiencies from stock-based compensation. Unrecognized tax benefits were $ 3.6 million as of March 31, 2024 and $ 3.5 million as of December 31, 2023, respectively, and if recognized, would favorably affect the effective income tax rate in future periods. On December 15, 2022, the European Union (“EU”) Member States formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (“OECD”) Pillar Two Framework that was supported by over 130 countries worldwide. The EU effective dates are January 1, 2024, and January 1, 2025, for different aspects of the directive. A significant number of other countries are expected to also implement similar legislation, including United Kingdom which approved the legislation on July 11, 2023 with a full effective date of January 1, 2024. We have evaluated the potential impact from the OECD Pillar Two rules and determined that the effects are immaterial to our financial position for the year of 2024. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 14. Segment and Geographic Information We have two reportable segments: • Gamer and Creator Peripherals . Includes our high-performance gaming keyboards, mice, headsets, controllers, and streaming products, which includes capture cards, Stream Decks, microphones and audio interfaces, our Facecam streaming cameras, studio accessories, and gaming furniture, among others. • Gaming Components and Systems . Includes our high-performance power supply units, or PSUs, cooling solutions, computer cases, and DRAM modules, as well as high-end prebuilt and custom-built gaming PCs and laptops, and gaming monitors, among others. The segments are defined as those operations our CODM regularly reviews to analyze performance and allocate resources. Our CODM is determined to be Corsair’s Chief Executive Officer. The results of the reportable segments are derived directly from our reporting system and are based on the methods of internal reporting which are not necessarily in conformity with GAAP. Management measures net revenue and gross profit to evaluate the performance of, and allocate resources to, each of the segments. The table below summarizes the financial information for each reportable segment (in thousands): Three Months Ended 2024 2023 Net revenue Gamer and Creator Peripherals $ 106,973 $ 88,942 Gaming Components and Systems 230,284 265,022 Total net revenue $ 337,257 $ 353,964 Gross Profit Gamer and Creator Peripherals $ 43,643 $ 26,648 Gaming Components and Systems 42,996 58,756 Total gross profit $ 86,639 $ 85,404 The CODM manages assets on a total company basis, not by operating segments; therefore, asset information and capital expenditures by operating segments are not presented. Geographic Information The following table summarizes our net revenue by geographic region based on the location of the customer (in thousands): Three Months Ended 2024 2023 Net revenue Americas $ 174,972 $ 185,898 Europe and Middle East 115,735 113,441 Asia Pacific 46,550 54,625 Total net revenue $ 337,257 $ 353,964 Revenues from sales to customers in the United States represented 45.6 % and 46.2 % for the three months ended March 31, 2024 and 2023 , respectively. No other single country represented 10 % or more of total net revenue during these periods. Two customers represented 27.7 % and 11.4 % of our total net revenue for the three months ended March 31, 2024 . One customer represented 25.8 % of our total net revenue for the three months ended March 31, 2023 . No other customer represented 10 % or more of our total net revenue during these periods. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2024 | |
Income Amounts Attributable to Noncontrolling Interest, Disclosures [Abstract] | |
Redeemable Noncontrolling Interest | 15. Redeemable Noncontrolling Interest ("RNCI") On January 1, 2022, we acquired a 51 % ownership stake in Elgato iDisplay Holdings LTD. and its related companies (together “iDisplay”). We have determined that we have a controlling financial interest in iDisplay under the VOE model. Under the Shareholders Agreement between Corsair and the iDisplay Seller a put option was provided to the iDisplay Seller to transfer to Corsair (i) 14 % of their ownership interest in iDisplay upon the first anniversary of the Closing Date of the iDisplay Acquisition, and (ii) an additional 15 % of their ownership interest in iDisplay upon the second anniversary of the Closing Date. The put option will expire after January 1, 2025 . As of March 31, 2024 , the iDisplay Seller has not exercised the put option for the transfer of the 29 % of their ownership interest to Corsair. The exercise price of the put option is based on multiples of iDisplay’s historical TTM EBITDA less any debt. The put option makes this portion of the noncontrolling interest redeemable and therefore, the RNCI is classified as temporary equity on our condensed consolidated balance sheets and carried at the greater of the initial carrying amount, increased or decreased, for the RNCI share of comprehensive income (loss), contributions and distributions, or the redemption value. The change in redemption value is recognized through retained earnings. The following table presents the changes in RNCI for the periods presented (in thousands): Three Months Ended 2024 2023 Balance at beginning of period $ 15,937 $ 21,367 Share of net income 317 215 Share of other comprehensive income (loss) ( 144 ) 22 Dividend paid ( 1,160 ) — Change in redemption value (1) 975 ( 958 ) Balance at end of period $ 15,925 $ 20,646 (1) These amounts represent increases or (decreases) in redemption value over the carrying value for the respective periods. These amounts were recorded as an offset to retained earnings impacting the net income (loss) used in the calculation of net income (loss) per share attributable to common stockholders of Corsair Gaming, Inc. for these periods. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The accounting policies we follow are set forth in Part II, Item 8, Note 2, “Significant Accounting Policies”, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10K for the year ended December 31, 2023 which was filed with the SEC on February 27, 2024. The condensed consolidated balance sheet as of December 31, 2023, included herein, was derived from the audited consolidated financial statements as of that date. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed, combined or omitted pursuant to such rules and regulations. Therefore, these interim condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2023, included in our Annual Report on Form 10-K. The interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and in management’s opinion, include all adjustments, which consist of only normal recurring adjustments necessary for the fair statement of our condensed consolidated balance sheet as of March 31, 2024 and our results of operations for the three months ended March 31, 2024 and 2023. The results for the three months ended March 31, 2024 are not necessarily indicative of the results expected for the current fiscal year or any other future periods. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Corsair and its subsidiaries, after the elimination of intercompany accounts and transactions. We consolidate subsidiaries in which we have a controlling interest. For the consolidated subsidiaries in which we own less than 100% of the equity, our consolidated net comprehensive income (loss) is reduced by the portion attributable to the noncontrolling interest. The ownership interest of other investors is recorded as noncontrolling interest in the condensed consolidated balance sheets. In determining whether an entity is considered a controlled entity, we apply the VIE (variable interest entity) and VOE (voting interest entity) models. Entities that do not qualify as a VIE are assessed for consolidation under the VOE model. Under the VOE model, we consolidate the entity if we determine that we have a controlling financial interest in the entity through our ownership of greater than 50% of the outstanding voting shares of the entity and that other equity holders do not have substantive voting, participating or liquidation rights. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the valuation of intangible assets, accounts receivable, sales return reserves, reserves for customer incentives, warranty reserves, inventory, derivative instruments, stock-based compensation, and deferred income tax. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the potential impacts from events in the current economic and geopolitical environment. We adjust such estimates and assumptions when facts and circumstances dictate. The extent to which the current macroeconomic conditions and the development of the geopolitical unrest will impact our business going forward depends on numerous dynamic factors that we cannot reliably predict. Actual results could differ materially from those estimates . |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements None. |
Accounting Pronouncements Issued but Not Yet Adopted | Accounting Pronouncements Issued but Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvement to Reportable Segment Disclosure. This ASU updates the reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment's profit or loss in assessing segment performance and deciding how to allocate resources. The ASU will be effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. This ASU will result in additional required disclosures in our consolidated financial statements, when adopted. We are currently evaluating the provisions of this ASU and expect to adopt them for the year ended December 31, 2024. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as additional information on income tax paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024, with early adoption permitted. This ASU will result in additional required disclosures in our consolidated financial statements, when adopted. We are currently evaluating the provisions of this ASU and expect to adopt them for the year ended December 31, 2025. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Acquisition [Line Items] | |
Schedule of Estimated Fair Value of Assets Acquired and Liabilities | The Drop Acquisition was accounted for as a business combination under the acquisition method of accounting. The final allocation of the Drop Acquisition purchase consideration to the estimated fair value of the assets acquired and liabilities assumed, inclusive of immaterial measurement period adjustments, was as follows (in thousands): Amounts Accounts receivable $ 135 Inventories 7,739 Prepaid and other assets 866 Property and equipment 109 Identifiable intangible assets 9,160 Goodwill 5,960 Accounts payable ( 7,064 ) Accrued liabilities ( 3,726 ) Purchase consideration, net of cash acquired $ 13,179 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill by Reportable Segment | Goodwill The following table summarizes the changes in the carrying amount of goodwill by reportable segment (in thousands): Gaming Gamer and Total Balance as of December 31, 2023 $ 148,936 $ 205,769 $ 354,705 Measurement period adjustments — ( 27 ) ( 27 ) Effect of foreign currency exchange rates ( 34 ) ( 234 ) ( 268 ) Balance as of March 31, 2024 $ 148,902 $ 205,508 $ 354,410 |
Summary of Intangible Assets, Net | The following table is a summary of intangible assets, net (in thousands): March 31, 2024 December 31, 2023 Gross Accumulated Net Gross Accumulated Net Developed technology $ 47,221 $ 23,227 $ 23,994 $ 47,221 $ 21,206 $ 26,015 Trade name 34,050 9,633 24,417 34,114 9,060 25,054 Customer relationships 218,452 144,292 74,160 218,453 138,800 79,653 Patent portfolio 34,512 18,046 16,466 34,781 17,031 17,750 Supplier relationships 5,888 2,208 3,680 6,136 2,045 4,091 Total finite-life intangibles 340,123 197,406 142,717 340,705 188,142 152,563 Indefinite life trade name 35,430 — 35,430 35,430 — 35,430 Other 4 — 4 16 — 16 Total intangible assets $ 375,557 $ 197,406 $ 178,151 $ 376,151 $ 188,142 $ 188,009 |
Schedule of Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of March 31, 2024 is as follows (in thousands): Amounts Remainder of 2024 $ 28,488 2025 37,620 2026 34,315 2027 24,661 2028 4,370 Thereafter 13,263 Total $ 142,717 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Components of Balance Sheet | The following tables present the components of certain balance sheet amounts (in thousands): March 31, December 31, Cash $ 127,768 $ 175,620 Restricted cash—short term 2,174 2,705 Restricted cash—noncurrent 241 239 Total cash and restricted cash $ 130,183 $ 178,564 March 31, December 31, Accounts receivable $ 206,156 $ 254,433 Due from Factor — 283 Allowance for doubtful accounts ( 1,236 ) ( 1,448 ) Accounts receivable, net $ 204,920 $ 253,268 As of March 31, 2024, two customers represented 42.3 % and 17.8 % of our accounts receivable, net balance, respectively. As of December 31, 2023, two customers represented 42.9 % and 18.5 % of our accounts receivable, net balance, respectively. March 31, December 31, Raw materials $ 45,876 $ 64,576 Work in progress 8,980 5,204 Finished goods 196,891 170,392 Inventories $ 251,747 $ 240,172 March 31, December 31, Manufacturing equipment $ 29,121 $ 28,168 Leasehold improvements 20,419 19,789 Computer equipment, software and office equipment 15,932 16,083 Furniture and fixtures 3,846 3,825 Total property and equipment $ 69,318 $ 67,865 Less: Accumulated depreciation and amortization ( 38,133 ) ( 35,653 ) Property and equipment, net $ 31,185 $ 32,212 March 31, December 31, Right-of-use assets $ 35,049 $ 36,324 Deferred tax asset 30,794 27,749 Other 6,179 6,636 Other assets $ 72,022 $ 70,709 March 31, December 31, Accrued reserves for customer incentive programs $ 32,391 $ 41,148 Accrued reserves for sales returns 32,951 36,822 Accrued payroll and related expenses 14,056 17,989 Accrued freight expenses 9,968 13,553 Operating lease liabilities, current 9,151 9,721 Accrued legal expense 6,516 1,014 Accrued warranty 6,323 7,155 Contract liabilities 4,490 7,442 Other 22,641 31,496 Other liabilities and accrued expenses $ 138,487 $ 166,340 March 31, December 31, Operating lease liabilities, noncurrent $ 37,575 $ 38,587 Other 3,054 3,008 Other liabilities, noncurrent $ 40,629 $ 41,595 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following table presents the carrying value of our Term Loan (in thousands): March 31, December 31, Term Loan (variable rate) due September 2026 $ 184,000 $ 199,000 Debt discount and issuance cost, net of amortization ( 681 ) ( 804 ) Total debt 183,319 198,196 Less: debt maturing within one year, net 12,213 12,190 Long-term debt, net $ 171,106 $ 186,006 |
Summary of Interest Expense Recognized | The following table summarizes the interest expense recognized for all periods presented (in thousands): Three Months Ended 2024 2023 Credit Agreement: Contractual interest expense for term loan $ 3,456 $ 4,065 Amortization of debt discount and issuance cost 160 134 Other 75 103 Total interest expense $ 3,691 $ 4,302 |
Summary of Future Principal Payments under Total Long-term Debt | The future principal payments under our total long-term debt as of March 31, 2024 are as follows (in thousands): Amounts Remainder of 2024 $ 9,375 2025 12,500 2026 162,125 2027 — 2028 — Total debt $ 184,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Assurance-Type Warranty Obligation | Changes in our assurance-type warranty obligations were as follows (in thousands): Three Months Ended 2024 2023 Beginning of the period $ 7,155 $ 3,685 Warranty provision related to products shipped 993 1,378 Deductions for warranty claims processed ( 1,825 ) ( 1,596 ) End of period $ 6,323 $ 3,467 |
Schedule of Total Long-Term Non-Cancelable Purchase Commitment | as of March 31, 2024 was as follows (in thousands): Amounts Remainder of 2024 $ 766 2025 337 2026 — 2027 — 2028 — Thereafter — Total $ 1,103 |
Equity Incentive Plans and St_2
Equity Incentive Plans and Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense by line item in the condensed consolidated statements of operations (in thousands): Three Months Ended 2024 2023 Cost of revenue $ 545 $ 440 Sales, general and administrative 6,281 5,871 Product development 865 935 Stock-based compensation expense, net of amounts capitalized (1) $ 7,691 $ 7,246 Income tax benefits related to stock-based compensation expense $ 447 $ 1,354 (1) Stock-based compensation expense capitalized were not material for each of the periods presented. |
Summary of Total Unrecognized Stock-Based Compensation Expense and Remaining Period | The following table summarizes by type of grant, the total unrecognized stock-based compensation expense and the remaining period over which such expense is expected to be recognized (in thousands, except number of years): March 31, 2024 Unrecognized Expense Remaining weighted average period (In years) Stock options $ 34,687 2.9 RSUs 30,558 2.8 PSUs 4,079 2.9 ESPP 408 0.4 Total unrecognized stock-based compensation expense $ 69,732 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share | The following table summarizes the calculation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended 2024 2023 Numerator Net loss $ ( 11,029 ) $ ( 1,648 ) Less: Net income attributable to noncontrolling interest 536 364 Net loss attributable to Corsair Gaming, Inc. ( 11,565 ) ( 2,012 ) Change in redemption value of redeemable noncontrolling interest ( 975 ) 958 Net loss attributable to common stockholders of Corsair Gaming, Inc. $ ( 12,540 ) $ ( 1,054 ) Denominator Basic weighted-average shares outstanding 103,563 101,685 Effect of dilutive securities — — Total diluted weighted-average shares outstanding 103,563 101,685 Net loss per share attributable to common stockholders of Corsair Gaming, Inc.: Basic $ ( 0.12 ) $ ( 0.01 ) Diluted $ ( 0.12 ) $ ( 0.01 ) Anti-dilutive potential common shares (1) 12,715 11,934 (1) Potential common share equivalents were not included in the calculation of diluted net loss per share as the effect would have been anti-dilutive. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes, Income Tax (Expense) Benefit and Effective Income Tax Rates | The table below presents our loss before income taxes, income tax benefit and effective income tax rates for all periods presented (in thousands, except percentages): Three Months Ended 2024 2023 Loss before income taxes $ ( 12,806 ) $ ( 2,287 ) Income tax benefit 1,777 639 Effective tax rate 13.9 % 27.9 % |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for Each Reportable Segment | The table below summarizes the financial information for each reportable segment (in thousands): Three Months Ended 2024 2023 Net revenue Gamer and Creator Peripherals $ 106,973 $ 88,942 Gaming Components and Systems 230,284 265,022 Total net revenue $ 337,257 $ 353,964 Gross Profit Gamer and Creator Peripherals $ 43,643 $ 26,648 Gaming Components and Systems 42,996 58,756 Total gross profit $ 86,639 $ 85,404 |
Summary of Net Revenue By Geographic Region | The following table summarizes our net revenue by geographic region based on the location of the customer (in thousands): Three Months Ended 2024 2023 Net revenue Americas $ 174,972 $ 185,898 Europe and Middle East 115,735 113,441 Asia Pacific 46,550 54,625 Total net revenue $ 337,257 $ 353,964 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Amounts Attributable to Noncontrolling Interest, Disclosures [Abstract] | |
Redeemable Noncontrolling Interests | The following table presents the changes in RNCI for the periods presented (in thousands): Three Months Ended 2024 2023 Balance at beginning of period $ 15,937 $ 21,367 Share of net income 317 215 Share of other comprehensive income (loss) ( 144 ) 22 Dividend paid ( 1,160 ) — Change in redemption value (1) 975 ( 958 ) Balance at end of period $ 15,925 $ 20,646 (1) These amounts represent increases or (decreases) in redemption value over the carrying value for the respective periods. These amounts were recorded as an offset to retained earnings impacting the net income (loss) used in the calculation of net income (loss) per share attributable to common stockholders of Corsair Gaming, Inc. for these periods. |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2024 Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) Derivative | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Derivative Instruments Gain Loss [Line Items] | |||
Derivative instruments for trading purposes | Derivative | 0 | ||
Foreign Currency Forward Contracts | Not Designated as Hedging Instrument | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional principal amount | $ 28.5 | $ 44.3 | |
Net fair value gain (loss) recognized in other (expense) income | $ 0.6 | $ (0.4) | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Minimum | Foreign Currency Forward Contracts | Not Designated as Hedging Instrument | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative maturity term | 2 months | ||
Maximum | Foreign Currency Forward Contracts | Not Designated as Hedging Instrument | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative maturity term | 4 months |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) | 3 Months Ended | ||||
Jan. 29, 2024 | Jul. 14, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 354,410,000 | $ 354,705,000 | |||
Gamer and Creator Peripherals | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 205,508,000 | 205,769,000 | |||
Gaming Components and Systems | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 148,902,000 | 148,936,000 | |||
Drop Acquisition | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration | $ 13,200,000 | $ 14,200,000 | |||
Purchase price adjustment | $ 1,000,000 | ||||
Inventory | 2,000,000 | 200,000 | $ 1,500,000 | ||
Acquisition-related costs | $ 0 | $ 0 | |||
Cash acquired | 600,000 | ||||
Goodwill | 5,960,000 | ||||
Identifiable intangible assets acquired | $ 9,200,000 | ||||
Drop Acquisition | Minimum | |||||
Business Acquisition [Line Items] | |||||
Intangible assets estimated useful lives | 5 years | ||||
Drop Acquisition | Maximum | |||||
Business Acquisition [Line Items] | |||||
Intangible assets estimated useful lives | 15 years | ||||
Drop Acquisition | Developed Technology | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets acquired | $ 5,200,000 | ||||
Drop Acquisition | Trade Name | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets acquired | 2,300,000 | ||||
Drop Acquisition | Domain Name | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets acquired | $ 1,700,000 |
Business Combinations - Schedul
Business Combinations - Schedule of Estimated Fair Value of Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands | Jan. 29, 2024 | Jul. 14, 2023 | Mar. 31, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 354,410 | $ 354,705 | ||
Drop Acquisition | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 135 | |||
Inventories | 7,739 | |||
Prepaid and other assets | 866 | |||
Property and equipment | 109 | |||
Identifiable intangible assets | 9,160 | |||
Goodwill | 5,960 | |||
Accounts payable | (7,064) | |||
Accrued liabilities | (3,726) | |||
Fair value of consideration | $ 13,200 | 14,200 | ||
Purchase consideration, net of cash acquired | 13,179 | |||
Purchase consideration: | ||||
Fair value of consideration | $ 13,200 | $ 14,200 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill by Reportable Segment (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Line Items] | |
Balance | $ 354,705 |
Measurement period adjustments | (27) |
Effect of foreign currency exchange rates | (268) |
Balance | 354,410 |
Gaming Components and Systems | |
Goodwill [Line Items] | |
Balance | 148,936 |
Effect of foreign currency exchange rates | (34) |
Balance | 148,902 |
Gamer and Creator Peripherals | |
Goodwill [Line Items] | |
Balance | 205,769 |
Measurement period adjustments | (27) |
Effect of foreign currency exchange rates | (234) |
Balance | $ 205,508 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Total finite-life intangibles, Gross Carrying Amount | $ 340,123 | $ 340,705 |
Total finite-life intangibles, Accumulated Amortization | 197,406 | 188,142 |
Total finite-life intangibles, Net Carrying Amount | 142,717 | 152,563 |
Total intangible assets, Gross Carrying Amount | 375,557 | 376,151 |
Total intangible assets, Net Carrying Amount | 178,151 | 188,009 |
Other | ||
Indefinite-life intangibles, Gross and Net Carrying Amount | 4 | 16 |
Indefinite Life Trade Name | ||
Indefinite-life intangibles, Gross and Net Carrying Amount | 35,430 | 35,430 |
Developed Technology | ||
Total finite-life intangibles, Gross Carrying Amount | 47,221 | 47,221 |
Total finite-life intangibles, Accumulated Amortization | 23,227 | 21,206 |
Total finite-life intangibles, Net Carrying Amount | 23,994 | 26,015 |
Trade Name | ||
Total finite-life intangibles, Gross Carrying Amount | 34,050 | 34,114 |
Total finite-life intangibles, Accumulated Amortization | 9,633 | 9,060 |
Total finite-life intangibles, Net Carrying Amount | 24,417 | 25,054 |
Customer Relationships | ||
Total finite-life intangibles, Gross Carrying Amount | 218,452 | 218,453 |
Total finite-life intangibles, Accumulated Amortization | 144,292 | 138,800 |
Total finite-life intangibles, Net Carrying Amount | 74,160 | 79,653 |
Patent Portfolio | ||
Total finite-life intangibles, Gross Carrying Amount | 34,512 | 34,781 |
Total finite-life intangibles, Accumulated Amortization | 18,046 | 17,031 |
Total finite-life intangibles, Net Carrying Amount | 16,466 | 17,750 |
Supplier Relationships | ||
Total finite-life intangibles, Gross Carrying Amount | 5,888 | 6,136 |
Total finite-life intangibles, Accumulated Amortization | 2,208 | 2,045 |
Total finite-life intangibles, Net Carrying Amount | $ 3,680 | $ 4,091 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2024 | $ 28,488 | |
2025 | 37,620 | |
2026 | 34,315 | |
2027 | 24,661 | |
2028 | 4,370 | |
Thereafter | 13,263 | |
Total finite-life intangibles, Net Carrying Amount | $ 142,717 | $ 152,563 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Components of Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Line Items] | ||||
Cash | $ 127,768 | $ 175,620 | ||
Restricted cash-short term | 2,174 | 2,705 | ||
Restricted cash-noncurrent | 241 | 239 | ||
Total cash and restricted cash | 130,183 | 178,564 | $ 182,053 | $ 154,060 |
Accounts receivable | 206,156 | 254,433 | ||
Due from Factor | 283 | |||
Allowance for doubtful accounts | (1,236) | (1,448) | ||
Accounts receivable, net | 204,920 | 253,268 | ||
Raw materials | 45,876 | 64,576 | ||
Work in progress | 8,980 | 5,204 | ||
Finished goods | 196,891 | 170,392 | ||
Inventories | 251,747 | 240,172 | ||
Total property and equipment | 69,318 | 67,865 | ||
Less: Accumulated depreciation and amortization | (38,133) | (35,653) | ||
Property and equipment, net | 31,185 | 32,212 | ||
Right-of-use assets | 35,049 | 36,324 | ||
Deferred tax asset | 30,794 | 27,749 | ||
Other | 6,179 | 6,636 | ||
Other assets | 72,022 | 70,709 | ||
Accrued reserves for customer incentive programs | 32,391 | 41,148 | ||
Accrued reserves for sales returns | 32,951 | 36,822 | ||
Accrued payroll and related expenses | 14,056 | 17,989 | ||
Accrued freight expenses | 9,968 | 13,553 | ||
Operating lease liabilities, current | $ 9,151 | $ 9,721 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other liabilities and accrued expenses | Other liabilities and accrued expenses | ||
Accrued legal expense | $ 6,516 | $ 1,014 | ||
Accrued warranty | 6,323 | 7,155 | ||
Contract liabilities | 4,490 | 7,442 | ||
Other | 22,641 | 31,496 | ||
Other liabilities and accrued expenses | 138,487 | 166,340 | ||
Operating lease liabilities, noncurrent | $ 37,575 | $ 38,587 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities, noncurrent | Other liabilities, noncurrent | ||
Other | $ 3,054 | $ 3,008 | ||
Other liabilities, noncurrent | 40,629 | 41,595 | ||
Manufacturing Equipment | ||||
Balance Sheet Related Disclosures [Line Items] | ||||
Total property and equipment | 29,121 | 28,168 | ||
Leasehold Improvements | ||||
Balance Sheet Related Disclosures [Line Items] | ||||
Total property and equipment | 20,419 | 19,789 | ||
Computer Equipment, Software and Office Equipment | ||||
Balance Sheet Related Disclosures [Line Items] | ||||
Total property and equipment | 15,932 | 16,083 | ||
Furniture and Fixtures | ||||
Balance Sheet Related Disclosures [Line Items] | ||||
Total property and equipment | $ 3,846 | $ 3,825 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - Accounts Receivable - Credit Concentration Risk - Customer | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Concentration Risk [Line Items] | ||
Number of customers | 2 | 2 |
Customer One | ||
Concentration Risk [Line Items] | ||
Percentage of accounts receivable | 42.30% | 42.90% |
Customer Two | ||
Concentration Risk [Line Items] | ||
Percentage of accounts receivable | 17.80% | 18.50% |
Debt - Additional Information (
Debt - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Jan. 01, 2024 | Sep. 03, 2021 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 | |
Debt Instrument [Line Items] | |||||
Carrying value of term loan | $ 183,319,000 | $ 198,196,000 | |||
Revolving Credit Facility Under Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 100,000,000 | ||||
Credit facility, expiration month and year | 2026-09 | ||||
Unused capacity | $ 100,000,000 | 100,000,000 | |||
Revolving Credit Facility Under Credit Agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment Fee Percentage | 0.20% | ||||
Revolving Credit Facility Under Credit Agreement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment Fee Percentage | 0.40% | ||||
Revolving Credit Facility Under Credit Agreement | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 0.50% | ||||
Revolving Credit Facility Under Credit Agreement | Bloomberg Short Term Bank Yield | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 1.25% | ||||
Revolving Credit Facility Under Credit Agreement | Bloomberg Short Term Bank Yield | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 2.25% | ||||
Revolving Credit Facility Under Credit Agreement | One-Month BSBY | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 1% | ||||
Revolving Credit Facility Under Credit Agreement | One-Month BSBY | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 0.25% | ||||
Revolving Credit Facility Under Credit Agreement | One-Month BSBY | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 1.25% | ||||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 250,000,000 | ||||
Effective interest rate | 7.48% | 7.06% | |||
Credit facility, expiration month and year | 2026-09 | ||||
Term Loan | Fair Value, Inputs, Level 2 | |||||
Debt Instrument [Line Items] | |||||
Estimated fair value of term loan | $ 181,800,000 | ||||
Term Loan | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 0.50% | ||||
Term Loan | Bloomberg Short Term Bank Yield | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 1.25% | ||||
Term Loan | Bloomberg Short Term Bank Yield | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 2.25% | ||||
Term Loan | One-Month BSBY | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 1% | ||||
Term Loan | One-Month BSBY | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 0.25% | ||||
Term Loan | One-Month BSBY | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable rate | 1.25% | ||||
Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Credit facility, incremental maximum aggregate principal amount | $ 250,000,000 | ||||
Prepayment of debt | $ 11,900,000 | $ 34,100,000 | |||
Credit Agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Consolidated interest coverage ratio | 3 | ||||
Credit Agreement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Consolidated total net leverage ratio | 3 | 3.5 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total debt | $ 184,000 | |
Debt discount and issuance cost, net of amortization | (681) | $ (804) |
Total debt | 183,319 | 198,196 |
Less: debt maturing within one year, net | 12,213 | 12,190 |
Long-term debt, net | 171,106 | 186,006 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | $ 184,000 | $ 199,000 |
Debt - Summary of Debt (Parenth
Debt - Summary of Debt (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Term Loan | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2026-09 |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Other | $ 75 | $ 103 |
Total interest expense | 3,691 | 4,302 |
Credit Agreement, Term Loan | ||
Debt Instrument [Line Items] | ||
Contractual interest expense for term loan | 3,456 | 4,065 |
Credit Agreement | ||
Debt Instrument [Line Items] | ||
Amortization of debt discount and issuance cost | $ 160 | $ 134 |
Debt - Summary of Future Princi
Debt - Summary of Future Principal Payments under Total Long-term Debt (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2024 | $ 9,375 |
2025 | 12,500 |
2026 | 162,125 |
Total debt | $ 184,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Changes in Assurance-Type Warranty Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning of the period | $ 7,155 | $ 3,685 |
Warranty provision related to products shipped | 993 | 1,378 |
Deductions for warranty claims processed | (1,825) | (1,596) |
End of period | $ 6,323 | $ 3,467 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Total Long-Term Non-Cancelable Purchase Commitment (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2024 | $ 766 |
2025 | 337 |
Total | $ 1,103 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) Claim | Dec. 31, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Non-cancelable long-term purchase commitments | $ 1,500,000 | |
Letters of credit outstanding, amount | $ 0 | 0 |
Line of credit facility, current borrowing capacity | $ 0 | $ 0 |
Loss contingency, claims settled, number | Claim | 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Jul. 22, 2022 |
Capital Unit [Line Items] | ||
Self resitration maximum securities issued | $ 300 | |
Common stock held by selling securities holders | 54,179,559 | |
Underwritten Public Offering | ||
Capital Unit [Line Items] | ||
Available for issuance | $ 216.7 |
Equity Incentive Plans and St_3
Equity Incentive Plans and Stock-Based Compensation - Additional Information (Detail) - PSUs | 1 Months Ended | 3 Months Ended |
Feb. 29, 2024 | Mar. 31, 2024 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation, vesting period | 3 years | |
Vesting rights | In the event such targets are achieved, one-third of the eligible PSUs would vest and the remaining two-thirds would thereafter vest evenly over the second and third years. In the event the minimum targets are not achieved, no PSUs would vest. | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units issued | 200% | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units issued | 0% |
Equity Incentive Plans and St_4
Equity Incentive Plans and Stock-Based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock-based compensation expense, net of amounts capitalized | $ 7,691 | $ 7,246 |
Income tax benefits related to stock-based compensation expense | 447 | 1,354 |
Cost of Revenue | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock-based compensation expense, net of amounts capitalized | 545 | 440 |
Sales, General and Administrative | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock-based compensation expense, net of amounts capitalized | 6,281 | 5,871 |
Product Development | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock-based compensation expense, net of amounts capitalized | $ 865 | $ 935 |
Equity Incentive Plans and St_5
Equity Incentive Plans and Stock-Based Compensation - Summary of Total Unrecognized Stock-Based Compensation Expense and Remaining Period (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total unrecognized stock-based compensation expense | $ 69,732 |
Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Expense | $ 34,687 |
Remaining weighted average period (In years) | 2 years 10 months 24 days |
Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Expense | $ 30,558 |
Remaining weighted average period (In years) | 2 years 9 months 18 days |
PSUs | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Expense | $ 4,079 |
Remaining weighted average period (In years) | 2 years 10 months 24 days |
ESPP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized Expense | $ 408 |
Remaining weighted average period (In years) | 4 months 24 days |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator | ||
Net loss | $ (11,029) | $ (1,648) |
Less: Net income attributable to noncontrolling interest | 536 | 364 |
Net loss attributable to Corsair Gaming, Inc. | (11,565) | (2,012) |
Change in redemption value of redeemable noncontrolling interest | (975) | 958 |
Net loss attributable to common stockholders of Corsair Gaming, Inc. | $ (12,540) | $ (1,054) |
Denominator | ||
Basic weighted-average shares outstanding | 103,563 | 101,685 |
Total diluted weighted-average shares outstanding | 103,563 | 101,685 |
Net loss per share attributable to common stockholders of Corsair Gaming, Inc.: | ||
Basic | $ (0.12) | $ (0.01) |
Diluted | $ (0.12) | $ (0.01) |
Anti-dilutive potential common shares | 12,715 | 11,934 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes, Income Tax (Expense) Benefit and Effective Income Tax Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Loss before income taxes | $ (12,806) | $ (2,287) |
Income tax benefit | $ 1,777 | $ 639 |
Effective tax rate | 13.90% | 27.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 13.90% | 27.90% | |
Unrealized tax benefits | $ 3.6 | $ 3.5 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2024 Segment Customer Country | Mar. 31, 2023 Customer Country | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Geographic Concentration Risk | Consolidated Net Revenue | United States | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue from sales to customers | 45.60% | 46.20% |
Geographic Concentration Risk | Consolidated Net Revenue | Non-US Excluding United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue from sales to customers | 10% | 10% |
Number of single countries representing more than ten percent threshold | Country | 0 | 0 |
Customer Concentration Risk | Consolidated Net Revenue | ||
Segment Reporting Information [Line Items] | ||
Number of customers | 2 | 1 |
Customer Concentration Risk | Consolidated Net Revenue | Customer One | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue from sales to customers | 27.70% | 25.80% |
Customer Concentration Risk | Consolidated Net Revenue | Customer Two | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue from sales to customers | 11.40% | |
Customer Concentration Risk | Consolidated Net Revenue | Other Customer | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue from sales to customers | 10% | 10% |
Number of customer for more than minimum threshold percentage of revenue | 0 | 0 |
Segment and Geographic Inform_4
Segment and Geographic Information - Summary of Financial Information for Each Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 337,257 | $ 353,964 |
Total gross profit | 86,639 | 85,404 |
Gamer and Creator Peripherals | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 106,973 | 88,942 |
Total gross profit | 43,643 | 26,648 |
Gaming Components and Systems | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 230,284 | 265,022 |
Total gross profit | $ 42,996 | $ 58,756 |
Segment and Geographic Inform_5
Segment and Geographic Information - Summary of Net Revenue By Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 337,257 | $ 353,964 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 174,972 | 185,898 |
Europe and Middle East | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 115,735 | 113,441 |
Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 46,550 | $ 54,625 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interest ("RNCI") - Additional Information (Details) - IDisplay Technology | Jan. 01, 2022 | Mar. 31, 2024 |
Redeemable Noncontrolling Interest [Line Items] | ||
Percentage of equity interest acquired | 51% | 29% |
Put and call option expiration date | Jan. 01, 2025 | |
First Anniversary | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Percentage of equity interest acquired | 14% | |
Second Anniversary | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Percentage of equity interest acquired | 15% |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interest ("RNCI") - Schedule of Changes in Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Amounts Attributable to Noncontrolling Interest, Disclosures [Abstract] | ||
Balance at beginning of period | $ 15,937 | $ 21,367 |
Share of net income | 317 | 215 |
Share of other comprehensive income (loss) | (144) | 22 |
Dividend paid | (1,160) | |
Change in redemption value | 975 | (958) |
Balance at end of period | $ 15,925 | $ 20,646 |