Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
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 | 47100 Bayside Pkwy | |
Entity Address, City or Town | Fremont | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94538 | |
City Area Code | 510 | |
Local Phone Number | 657-8747 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | No | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 92,187,443 | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | CRSR | |
Security Exchange Name | NASDAQ |
Condensed Combined Consolidated
Condensed Combined Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net revenue | $ 529,414 | $ 308,518 |
Cost of revenue | 369,086 | 229,896 |
Gross profit | 160,328 | 78,622 |
Operating expenses: | ||
Sales, general and administrative | 77,853 | 53,729 |
Product development | 15,186 | 11,556 |
Total operating expenses | 93,039 | 65,285 |
Operating income | 67,289 | 13,337 |
Other (expense) income: | ||
Interest expense | (4,946) | (9,374) |
Other expense, net | (2,425) | (63) |
Total other expense, net | (7,371) | (9,437) |
Income before income taxes | 59,918 | 3,900 |
Income tax expense | (13,195) | (2,683) |
Net income | $ 46,723 | $ 1,217 |
Net income per share | ||
Basic | $ 0.51 | $ 0.01 |
Diluted | $ 0.47 | $ 0.01 |
Weighted-average shares used to compute net income per share | ||
Basic | 91,951 | 84,079 |
Diluted | 100,211 | 86,070 |
Condensed Combined Consolidat_2
Condensed Combined Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 46,723 | $ 1,217 |
Other comprehensive gain (loss): | ||
Foreign currency translation adjustments, net of zero tax | 165 | (3,600) |
Unrealized foreign exchange loss from long-term intercompany loans, net of tax benefit of $44 and $61 for the three months ended March 31, 2021 and 2020, respectively | (224) | (309) |
Comprehensive income (loss) | $ 46,664 | $ (2,692) |
Condensed Combined Consolidat_3
Condensed Combined Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, net of tax | $ 0 | $ 0 |
Unrealized foreign exchange gain (loss) from long-term intercompany loans, net of tax benefit (expense) | $ 44 | $ 61 |
Condensed Combined Consolidat_4
Condensed Combined Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 121,622 | $ 129,543 |
Restricted cash | 3,729 | 3,795 |
Accounts receivable, net | 304,174 | 293,629 |
Inventories | 234,611 | 226,007 |
Prepaid expenses and other current assets | 47,508 | 37,997 |
Total current assets | 711,644 | 690,971 |
Property and equipment, net | 15,320 | 16,475 |
Goodwill | 314,089 | 312,760 |
Intangible assets, net | 252,243 | 259,317 |
Restricted cash, noncurrent | 231 | 230 |
Other assets | 39,900 | 34,362 |
TOTAL ASSETS | 1,333,427 | 1,314,115 |
Current liabilities: | ||
Accounts payable | 272,251 | 299,636 |
Other liabilities and accrued expenses | 227,019 | 205,745 |
Total current liabilities | 499,270 | 505,381 |
Debt, net | 294,254 | 321,393 |
Deferred tax liabilities | 30,350 | 29,752 |
Other liabilities, noncurrent | 21,846 | 20,199 |
TOTAL LIABILITIES | 845,720 | 876,725 |
Commitments and Contingencies (Note 9) | ||
Stockholders’ Equity: | ||
Preferred stock, $0.0001 par value: 5,000 shares authorized, nil and nil shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | ||
Common stock, $0.0001 par value: 300,000 shares authorized, 92,087 and 91,935 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 9 | 9 |
Additional paid-in capital | 442,320 | 438,667 |
Retained earnings (accumulated deficit) | 43,910 | (2,813) |
Accumulated other comprehensive income | 1,468 | 1,527 |
Total Stockholders’ Equity | 487,707 | 437,390 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,333,427 | $ 1,314,115 |
Condensed Combined Consolidat_5
Condensed Combined Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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 | 92,087,000 | 91,935,000 |
Common stock, shares outstanding | 92,087,000 | 91,935,000 |
Condensed Combined Consolidat_6
Condensed Combined Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2019 | $ 216,775 | $ 8 | $ 324,968 | $ (106,030) | $ (2,171) |
Balance, shares at Dec. 31, 2019 | 84,079 | ||||
Stock-based compensation | 1,105 | 1,105 | |||
Other comprehensive loss | (3,909) | (3,909) | |||
Net income | 1,217 | 1,217 | |||
Balance at Mar. 31, 2020 | 215,188 | $ 8 | 326,073 | (104,813) | (6,080) |
Balance, shares at Mar. 31, 2020 | 84,079 | ||||
Balance at Dec. 31, 2020 | 437,390 | $ 9 | 438,667 | (2,813) | 1,527 |
Balance, shares at Dec. 31, 2020 | 91,935 | ||||
Issuance of common stock for stock option exercises | 577 | 577 | |||
Issuance of common stock for stock option exercises | 152 | ||||
Stock-based compensation | 3,076 | 3,076 | |||
Other comprehensive loss | (59) | (59) | |||
Net income | 46,723 | 46,723 | |||
Balance at Mar. 31, 2021 | $ 487,707 | $ 9 | $ 442,320 | $ 43,910 | $ 1,468 |
Balance, shares at Mar. 31, 2021 | 92,087 |
Condensed Combined Consolidat_7
Condensed Combined Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 46,723 | $ 1,217 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 3,076 | 1,105 |
Depreciation | 2,436 | 2,158 |
Amortization of intangible assets | 8,702 | 8,447 |
Debt issuance costs amortization | 537 | 579 |
Loss on debt extinguishment | 439 | |
Deferred income taxes | (3,005) | 6 |
Gain on currency forward contract | (359) | |
Loss on foreign exchange | 118 | |
Net cash provided by operating activities | 27,768 | 2,000 |
Other | 1,316 | 743 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (13,416) | 37,432 |
Inventories | (13,508) | 145 |
Prepaid expenses and other assets | (4,419) | 6,312 |
Accounts payable | (26,988) | (43,533) |
Other liabilities and accrued expenses | 25,875 | (12,370) |
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | (1,684) | |
Payment of deferred and contingent consideration | (4,353) | |
Purchase of property and equipment | (2,036) | (1,847) |
Net cash used in investing activities | (8,073) | (1,847) |
Cash flows from financing activities: | ||
Repayment of debt | (28,000) | (1,194) |
Payment of other offering costs | (115) | |
Proceeds from exercise of stock options | 185 | |
Net cash used in financing activities | (27,815) | (1,309) |
Effect of exchange rate changes on cash | 134 | (308) |
Net decrease in cash and restricted cash | (7,986) | (1,464) |
Cash and restricted cash at the beginning of the period | 133,568 | 51,947 |
Cash and restricted cash at the end of the period | 125,582 | 50,483 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | 3,961 | 9,769 |
Cash paid for income taxes | 413 | 6,199 |
Supplemental schedule of non-cash investing and financing activities: | ||
Equipment purchased and unpaid at period end | 1,558 | 600 |
Initial deferred and contingent purchase consideration | $ 735 | |
Measurement period adjustment relating to business acquisitions | 1,530 | |
Deferred offering costs included in accounts payable and accrued expenses | $ 2,231 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | 1. Description of Business and Basis of Presentation Description of Business Corsair Gaming, Inc., a Delaware corporation, together with its subsidiaries (collectively, “Corsair” the “Company”, “we”, “us”, or “our”) Corsair is organized into two reportable segments: • Gamer and creator peripherals . Includes our high-performance gaming keyboards, mice, headsets, controllers, and streaming gear, which includes capture cards, Stream Decks, USB microphones, studio accessories and EpocCam software, as well as coaching and training services and content design services, among others. • Gaming components and systems . Includes our high-performance power supply units, or PSUs, cooling solutions, computer cases, DRAM modules, as well as high-end prebuilt and custom-built gaming PCs, among others. Reorganization On September 15, 2020, a corporate reorganization (the “Reorganization”) (the “Parent”) (or “Corsair Luxco”) The Reorganization was comprised of a series of steps as set forth below: • The Parent acquired the minority interest held by Corsair Group (US), LLC in exchange for its own units. • Corsair Gaming, Inc. acquired all of the outstanding capital stock of Corsair Luxco from the Parent in exchange for its own stock. • In order for management and certain other partnership unit holders of the Parent to hold Corsair’s common stock directly, we entered into exchange agreements with such holders to exchange the Parent’s units for shares of Corsair’s common stock on a pro rata basis relative to their holdings in the Parent prior to the Reorganization. • The Parent’s 2017 Equity Incentive Program was assumed by Corsair and all of the outstanding options to acquire units under the Parent’s 2017 Equity Incentive Program were converted into options to purchase Corsair’s common stock on a pro rata basis with an adjusted exercise price to reflect the assumption. • We implemented a 1-for- 28,693.596843964 As all legal entities included in the Reorganization are under common control of the Parent, all steps of the Reorganization were accounted for as a combination of entities under common control. Initial Public Offering and Secondary Offering On September 25, 2020, we completed our initial public offering (“IPO”) In connection with the IPO, we sold 7,500,000 shares of common stock at $17.00 per share, resulting in proceeds of $118.6 million, net of the underwriting discounts and commissions and before offering costs. In connection with the IPO, certain stockholders sold 6,500,000 shares of common stock at $17.00 per share. Subsequent to the IPO, certain stockholders further sold 1,135,375 shares pursuant to the underwriters’ exercise of their option to purchase additional shares. On January 26, 2021, we completed a secondary offering of our common stock where certain selling stockholders sold 8,625,000, shares of common stock at $35.00 per share. We did not receive any of the proceeds from the sale of shares by the selling stockholders in either the IPO or the secondary. Deferred offering costs consist primarily of accounting, legal, and other fees related to the IPO. Prior to the IPO, all deferred offering costs were capitalized in other assets in the condensed combined consolidated balance sheets. After the IPO, $12.0 million of deferred offering costs were reclassified into stockholders’ equity as a reduction of the IPO proceeds in the condensed combined consolidated balance sheets as of December 31, 2020. Basis of Presentation Our interim condensed combined consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ( “ U.S. GAAP”) (“SEC”) The condensed combined consolidated balance sheet as of December 31, 2020, 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 combined consolidated financial statements should be read in conjunction with our combined consolidated financial statements and notes thereto for the year ended December 31, 2020, included in our Annual Report on Form 10-K. The interim condensed combined consolidated financial statements have been prepared on the same basis as the audited combined 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 combined consolidated balance sheet as of March 31, 2021 and our results of operations for the three months ended March 31, 2021 and 2020. The results for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the current fiscal year or any other future periods. Principles of Consolidation The accompanying condensed combined consolidated financial statements include the accounts of Corsair and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of condensed combined 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 combined 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, deferred income tax, and common stock (prior to the IPO completed in September 2020). 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 current economic environment. We adjust such estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates due to risks and uncertainties, including uncertainty in the current economic environment due to COVID-19. Risks and Uncertainties related to the COVID-19 Pandemic Due to the COVID-19 pandemic, there has been and will continue to be uncertainty and disruption in the global economy and financial markets. Since early 2020, we have experienced some business disruptions due to COVID-19 including the stoppage in our factories in early 2020, disruption in our supply chain and increased distribution costs, which led to increase in operating costs. This negative financial impact has been offset by strong revenue growth year-over-year partly due to an increase in demand for our gear as more people in more countries are under shelter-in-place restrictions. In contrast, if the COVID-19 pandemic subsides in the second half of 2021, resulting in shelter-in-place and other similar restrictions being eased, it could result in consumers returning to other alternative forms of entertainment and interaction. This in turn could result in a decline in demand for our products. The extent to which the COVID-19 outbreak ultimately impacts our business, sales, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Even after the COVID-19 outbreak has subsided, we may continue to experience significant impacts to our business as a result of its global economic impact, including any economic downturn or recession that has occurred or may occur in the future. As of the date of issuance of these condensed combined consolidated financial statements, we are not aware of any specific event or circumstance that would require updates to our estimates and judgments or revisions due to COVID-19 to the carrying value of our assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed combined consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the condensed combined consolidated financial statements. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12 , Income Taxes (Topic 740) Accounting Pronouncements Issued but Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2021 | |
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. The following tables summarize our financial assets and liabilities that were measured at fair value on a recurring basis, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: March 31, 2021 (Level 1) (Level 2) (Level 3) Total (in thousands) Assets: Foreign currency forward contracts (1) $ — $ 642 $ — $ 642 Other — 19 — 19 Total assets $ — $ 661 $ — $ 661 Liabilities: Deferred cash consideration in connection with a business acquisition—SCUF (2) $ — $ — $ 1,250 $ 1,250 Other — 14 735 749 Total liabilities $ — $ 14 $ 1,985 $ 1,999 December 31, 2020 (Level 1) (Level 2) (Level 3) Total (In thousands) Liabilities: Contingent consideration in connection with a business acquisition—Origin (3) $ — $ — $ 2,887 $ 2,887 Deferred cash consideration in connection with a business acquisition—SCUF (2) — — 1,250 1,250 Deferred cash consideration in connection with a business acquisition—Origin (3) — — 1,505 1,505 Foreign currency forward contracts (1) — 819 — 819 Total liabilities $ — $ 819 $ 5,642 $ 6,461 (1) The fair values of the forward contracts were based on similar exchange traded derivatives and the related asset or liability is included within Level 2 of the fair value hierarchy. (2) The fair value of the SCUF contingent consideration was determined based on the estimates of acquired tax benefits owed to SCUF’s sellers according to the merger agreement. These estimates involved inputs unobservable in the markets and thus represent a level 3 fair value measurement. The $1.3 million liability as of March 31, 2021 and December 31, 2020 consists of $0.1 million based on a contractual amount and the remaining $1.2 million is subject to update upon filing our tax returns for tax years 2020 and 2021. ( 3 ) The Origin earn-out liability of $2.9 million and deferred cash consideration of $1.5 million were fully paid and settled in the three months ended March 31, 2021. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
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, and interest rate cap contracts, to minimize our exposure to interest rate movements on our variable rate debts. The derivative instruments are recorded at fair value in prepaid expenses and other current assets or other liabilities and accrued expenses on the condensed combined 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 combined consolidated statements of operations. We do not enter into derivative instruments for trading purposes. The foreign currency forward contracts generally mature within three to four months. The notional principal amount of outstanding foreign exchange forward contracts was $38.6 million and $41.6 million as of March 31, 2021 and December 31, 2020, respectively, none of which have been designated as hedging instruments during the periods presented. The fair value gain recognized in other (expense) income, net in relation to these derivative instruments was $0.7 million and $0.3 million for the three months ended March 31, 2021 and 2020, respectively. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | 5. Business Combinations 2021 Immaterial Acquisition In February 2021, we completed the immaterial acquisition of Visual by Impulse (“ VBI 2020 Immaterial Acquisitions For the year ended December 31, 2020, we completed two immaterial acquisitions, EpocCam and Gamer Sensei, for total cash consideration of $1.3 million, which were accounted for using the acquisition method of accounting. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
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: Gaming Components and Systems Gamer and Creator Peripherals Total (In thousands) Balance as of December 31, 2020 $ 145,644 $ 167,116 $ 312,760 Addition from an immaterial business acquisition — 1,272 1,272 Effect of foreign currency exchange rates (18 ) 75 57 Balance as of March 31, 2021 $ 145,626 $ 168,463 $ 314,089 Intangible assets, net The following table is a summary of intangible assets, net: March 31, 2021 December 31, 2020 Weighted Average Useful Life in Years Weighted Average Remaining Amortization Period in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) Developed technology 5.6 4.0 $ 32,086 $ 10,370 $ 21,716 $ 31,016 $ 8,892 $ 22,124 Trade name 15.0 13.3 30,807 3,397 27,410 30,632 2,873 27,759 Customer relationships 10.0 6.4 218,570 78,393 140,177 218,469 72,892 145,577 Patent 7.9 6.7 32,074 5,270 26,804 31,802 4,207 27,595 Non-competition agreements 5.0 1.4 2,521 1,815 706 2,521 1,689 832 Total finite-life intangibles 7.0 316,058 99,245 216,813 314,440 90,553 223,887 Indefinite life trade name Indefinite life — 35,430 — 35,430 35,430 — 35,430 Total intangible assets $ 351,488 $ 99,245 $ 252,243 $ 349,870 $ 90,553 $ 259,317 In the year after an identified intangible asset becomes fully amortized, we remove the fully amortized balances from the gross asset and accumulated amortization amounts from the table above. The estimated future amortization expense of intangible assets as of March 31, 2021 is as follows: Amounts (in thousands) Remainder of 2021 $ 26,092 2022 34,506 2023 32,899 2024 31,541 2025 31,051 Thereafter 60,724 Total $ 216,813 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 7. Balance Sheet Components Cash and Restricted Cash March 31, 2021 December 31, 2020 (In thousands) Cash $ 121,622 $ 129,543 Restricted cash—short term 3,729 3,795 Restricted cash—noncurrent 231 230 Total cash and restricted cash $ 125,582 $ 133,568 Accounts Receivable, net: March 31, 2021 December 31, 2020 (In thousands) Accounts receivable $ 304,715 $ 293,975 Allowance for doubtful accounts (541 ) (346 ) Accounts receivable, net $ 304,174 $ 293,629 As of March 31, 2021, and December 31, 2020, two customers each represented 10% or more of our consolidated accounts receivable, net. Inventories March 31, 2021 December 31, 2020 (In thousands) Raw materials $ 48,259 $ 52,165 Work in progress 9,462 9,654 Finished goods 176,890 164,188 Inventories $ 234,611 $ 226,007 Property and Equipment, Net March 31, 2021 December 31, 2020 (In thousands) Manufacturing equipment $ 22,609 $ 22,035 Computer equipment, software and office equipment 9,572 9,407 Furniture and fixtures 3,662 3,675 Leasehold improvements 4,350 4,521 Total property and equipment $ 40,193 $ 39,638 Less: Accumulated depreciation and amortization (24,873 ) (23,163 ) Property and equipment, net $ 15,320 $ 16,475 Other Liabilities and Accrued Expenses March 31, 2021 December 31, 2020 (In thousands) Accrued reserves for customer incentive programs $ 50,384 $ 49,619 Accrued reserves for sales return 38,078 35,673 Accrued payroll and related expense 19,659 26,877 Income tax payable 37,749 22,445 Sales and use tax and value-added tax payables 15,932 9,284 Contract liabilities 11,600 9,787 Operating lease liabilities, current 9,589 9,070 Other 44,028 42,990 Other liabilities and accrued expenses $ 227,019 $ 205,745 Nonmonetary Transactions The sales and purchases of inventory with our manufacturers are accounted for as nonmonetary transactions. Upon sale of raw materials to the manufacturer, for the inventories on-hand with the manufacturer where there is an anticipated reciprocal purchase by us, we will record this nonmonetary transaction as prepaid inventories and accrued liabilities. When we transact the reciprocal purchase of inventory from the manufacturer, we will record a payable to the manufacturer at the purchase price, which replaces the initial nonmonetary transaction and inventory will be reflected at carrying value, which includes the costs for the raw materials and the incremental costs charged by the manufacturer for additional work performed on the inventory. As of March 31, 2021 and December 31, 2020, we recognized $10.8 million and $5.9 million, respectively, prepaid inventory and Because the transactions are nonmonetary, they have not been included in the condensed combined consolidated statements of cash flows pursuant to ASC 230, Statement of Cash Flows |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt First Lien Credit and Guaranty Agreement In August 2017, we entered into a syndicated First Lien Credit and Guaranty Agreement ( “First Lien” “First Lien Term Loan” “Revolver” The First Lien Term Loan initially carried interest at a rate equal to, at our election, either the (a) greatest of (i) the prime rate, (ii) sum of the Federal Funds Effective Rate plus 0.5%, (iii) one month LIBOR plus 1.0% and (iv) 2%, plus a margin of 3.5%, or (b) the greater of (i) LIBOR and (ii) 1.0%, plus a margin of 4.5%. The Revolver initially bore interest at a rate equal to, at our election, either the (a) greatest of (i) the prime rate, (ii) sum of the Federal Funds Effective Rate plus 0.5%, (iii) one month LIBOR plus 1.0% and (iv) 2%, plus 3.5%, or (b) the greater of (i) LIBOR and (ii) 1.0%, plus a margin of 4.5%. As a result of the First Lien amendment in October 2018, the First Lien term loan and Revolver margin were both changed to range from 2.75% to 3.25% for base rate loans and to range from 3.75% to 4.25% for Eurodollar loans, based on our net leverage ratio. According to the repayment schedule, the Consolidated Excess Cash Flow (as defined in the First Lien) and the IPO repayment provisions as set forth in the First Lien, we have made required repayments of the First Lien Term Loan of $59.6 million, in aggregate, in 2020, consisting of $1.2 million in March 2020, $2.6 million in April 2020 and $55.8 million in September 2020, with our IPO proceeds. There is no further repayment required under the First Lien Term Loan until it matures in full in August 2024. We may prepay the First Lien Term Loan and the Revolver at any time without premium or penalty other than customary LIBOR breakage. With the excess cash on hand, we have made voluntary prepayments in aggregate of $80.8 million in 2020, consisting of $30.8 million in September 2020, with our IPO proceeds, $25.0 million in November 2020 and $25.0 million in December 2020. We further prepaid $28.0 million in March 2021. The following table summarizes the carrying value of the First Lien Term Loan: March 31, 2021 December 31, 2020 (In thousands) Principal amount outstanding $ 298,938 $ 326,938 Less: Debt discount, net of amortization (1,794 ) (2,124 ) Less: Debt issuance costs, net of amortization (2,890 ) (3,421 ) Carrying amount $ 294,254 $ 321,393 The fair value of the First Lien Term Loan was approximately $298.2 million and $326.5 million as of March 31, 2021 and December 31, 2020, respectively. The fair values were determined based on the quoted bid price of the First Lien Term Loan in a syndicated loan market on the reporting date. The First Lien Term Loan is classified as Level 1 of the fair value hierarchy. Our obligation under the First Lien is secured by substantially all of our personal property assets and those of our United States-organized subsidiaries, including intellectual property. The First Lien Term Loan includes customary restrictive covenants that impose operating and financial restrictions on Corsair, including restrictions on our ability to take actions that could be in our best interests. These restrictive covenants include operating covenants restricting, among In addition, the First Lien contains events of default that include, among others, non-payment of principal, interest or fees, breach of covenants, inaccuracy of representations and warranties, cross defaults to certain other indebtedness, bankruptcy and insolvency events, material judgments and events constituting a change of control. Upon the occurrence and during the continuance of an event of default, interest on the obligations may accrue at an increased rate in the case of a non-payment or bankruptcy and insolvency and the lenders may accelerate our obligations under the First Lien Term Loan, except that acceleration will be automatic in the case of bankruptcy and insolvency events of default. Second Lien Credit and Guaranty Agreement In August 2017, we also entered into a syndicated Second Lien Credit and Guaranty Agreement ( “Second Lien” “Second Lien Term Loan” We had the ability to prepay the Second Lien Term Loan any time after the first and second anniversary without premium or penalty. In 2020, with excess cash on hand, we repaid an aggregate of $50 million of the Second Lien Term Loan, consisting of $10.0 million in May 2020, $ 15.0 million in August 2020 and $ 25.0 million in September 2020. F ollowing t h ese repayment s , the Second Lien Term Loan was fully repaid and all obligations and covenants thereunder were terminated. The following table summarizes the interest expense recognized for the First Lien and Second Lien: Three Months Ended March 31, 2021 2020 (In thousands) Contractual interest expense for First Lien and Second Lien Term Loan $ 3,882 $ 8,638 Contractual interest expense for Revolver — 15 Amortization of debt discount 162 243 Amortization of debt issuance costs 375 336 Loss on debt extinguishment 439 — Total interest expense recognized $ 4,858 $ 9,232 The annual weighted average effective interest rate used for amortizing the debt discount and debt issuance costs for the First Lien and Second Lien, in aggregate, were approximately 6.45% and 6.92% for the three months ended March 31, 2021 and 2020, respectively. The estimated future principal payments under our total long-term debt as of March 31, 2021 are as follows: Amounts (In thousands) Remainder of 2021 $ — 2022 — 2023 — 2024 298,938 2025 — Thereafter — Total debt $ 298,938 Less: Discount and debt issuance costs (4,684 ) Total Debt, net of discount and debt issuance costs $ 294,254 Presented on the condensed combined consolidated balance sheet under: Current portion of debt, net $ — Debt, net $ 294,254 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Product Warranties Changes in our warranty obligations were as follows: Three Months Ended March 31, 2021 2020 (In thousands) Beginning of the period $ 5,865 $ 3,991 Warranty provision related to products shipped 1,873 1,365 Deductions for warranty claims processed (1,737 ) (1,039 ) End of period $ 6,001 $ 4,317 Unconditional Purchase Obligations 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 as well as marketing sponsorship. Long-term non-cancelable purchase commitment as of March 31, 2021 were as follows: Amounts (in thousands) Remainder of 2021 $ 1,504 2022 2,104 2023 1,282 2024 1,263 2025 157 Thereafter — Total $ 6,310 Our total non-cancelable purchase commitments outstanding as of December 31, 2020 were $6.8 million. Letters of Credit The total letters of credit outstanding, in aggregate, was $2.0 million and $2.0 million as of March 31, 2021 and December 31, 2020, respectively. No amounts have been drawn upon the letters of credit for all periods presented. 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 combined consolidated balance sheets, statements of operations, or statements of cash flows. We currently have directors’ and officers’ insurance. Significant Operating Lease Arrangement Executed After March 31, 2021 On April 27, 2021, we entered into an operating lease agreement for our new Milpitas headquarters in California, U.S. The lease term of this new agreement is 10.5 years with the accounting lease commencement date expected to be in May 2021 and the total undiscounted fixed lease payment for this agreement is approximately $45.6 million. The lease agreement for our existing Fremont headquarters will expire in March 2022. |
Stockholders Equity
Stockholders Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders Equity | 10. Stockholders’ Equity On September 15, 2020, we completed a Reorganization through a series of steps as discussed in Note 1. In connection with the Reorganization, we filed a certificate of amendment to our Amended and Restated Certificate of Incorporation which authorized 100,000,000 shares of our common stock for issuance, with a par value of $0.0001 per share and effected a 1-for- 28,693.596843964 On September 25, 2020, in connection with the closing of the IPO, we filed an Amended and Restated Certificate of Incorporation which increased the authorized shares of common stock for issuance to 300,000,000 and authorized 5,000,000 shares of preferred stock, with a par value of $0.0001 per share, for issuance. There were no shares of preferred stock outstanding as of March 31, 2021. |
Equity Incentive Plans and Stoc
Equity Incentive Plans and Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 11. Equity Incentive Plans and Stock-Based Compensation As of March 31, 2021, we have two active equity incentive plans: the 2020 Equity Incentive Plan and the Employee Stock Purchase Plan (“ ESPP The following table summarizes stock-based compensation expense by line item in the accompanying condensed combined consolidated statements of operations: Three Months Ended March 31, 2021 2020 (In thousands) Cost of revenue $ 181 $ 63 Sales, general and administrative 2,572 880 Product development 323 162 Total stock-based compensation expense 3,076 1,105 Income tax benefit (919 ) — Total stock-based compensation expense, net of income tax benefit $ 2,157 $ 1,105 As of March 31, 2021, we had $30.3 million of total unrecognized stock-based compensation relating to options and restricted stock units which is expected to be amortized over a weighted-average period of 3.0 years. As of March 31, 2021, we had $0.5 million of total unrecognized stock-based compensation relating to ESPP which is expected to be amortized over a weighted-average period of 0.5 years. The total intrinsic value of options exercised for the three months ended March 31, 2021 was $4.4 million . There were no stock options exercises for the three months ended March 31, 2020. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 12. Net Income Per Share The following table summarizes the calculation of basic and diluted net income per share: Three Months Ended March 31, 2021 2020 (in thousands, except per share amounts) Numerator Net income, basic and diluted $ 46,723 $ 1,217 Denominator Weighted-average shares used to compute net income per share, basic 91,951 84,079 Effect of dilutive securities (1) 8,260 1,991 Weighted-average shares used to compute net income per share, diluted 100,211 86,070 Net income per share: Basic $ 0.51 $ 0.01 Diluted $ 0.47 $ 0.01 Anti-dilutive potential common shares (1) 369 2,807 (1) Potential common share equivalents were not included in the calculation of diluted net income per share as the effect would have been anti-dilutive |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The table below presents our income (loss) before income taxes, income tax (expense) benefit and effective income tax rates for all periods presented: Three Months Ended March 31, 2021 2020 (in thousands) Income before income taxes $ 59,918 $ 3,900 Income tax expense (13,195 ) (2,683 ) Effective tax rate 22.0 % 68.8 % 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, and 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 tax expense of 22.0% and 68.8% for the three months ended March 31, 2021 and 2020, respectively. The decrease in the effective income tax rate from the three months ended March 31, 2020 was primarily due to U.S. tax losses and credits in that period being subject to a valuation allowance, whereas only an insignificant valuation allowance was necessary for the three months ended March 31, 2021. In the three months ended March 31, 2020 we recorded a $0.6 million one-time tax benefit from the change in tax law resulting from the enactment of the CARES Act in the first quarter 2020. Unrecognized tax benefits were $1.3 million and $1.2 million as of March 31, 2021 and December 31, 2020, respectively, and i f recognized, would favorably affect the effective income tax rate in future periods |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 14. Segment and Geographic Information We have two reportable segments: • Gamer and Creator Peripherals , which includes high-performance gaming keyboards, mice, headsets, controllers, and streaming gear, which includes capture cards, Stream Decks, USB microphones, studio accessories, and EpocCam software, as well as coaching and training services and content design services, among others. • Gaming Components and Systems , which includes high-performance power supply units, or PSUs, cooling solutions, computer cases, DRAM modules, as well as high-end prebuilt and custom-built gaming PCs, among others. The segments are defined as those operations our chief operating decision maker ( “CODM” ) regularly reviews to analyze performance and allocate resources. Our CODM is determined to be Corsair’s Chief Executive Officer. The table below summarizes the financial information for each reportable segment: Three Months Ended March 31, 2021 2020 (In thousands) Net revenue Gaming and Creator Peripherals $ 175,912 $ 75,861 Gaming Components and Systems 353,502 232,657 Total net revenue $ 529,414 $ 308,518 Gross Profit Gaming and Creator Peripherals $ 68,866 $ 22,133 Gaming Components and Systems 91,462 56,489 Total gross profit $ 160,328 $ 78,622 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: Three Months Ended March 31, 2021 2020 (In thousands) Net revenue Americas $ 226,388 $ 123,710 Europe and Middle East 225,494 110,550 Asia Pacific 77,532 74,258 Total net revenue $ 529,414 $ 308,518 Revenues from sales to customers in the United States represented 36.2% and 32.9% for the three months ended March 31, 2021 and, 2020, respectively. No other countries besides the United States represented 10% or more of total net revenue for each of the periods presented. One customer represented at least 10% of total net revenue for each of the periods presented. Long-lived assets are comprised primarily of property and equipment, net. The following table summarizes property and equipment, net by country: March 31, 2021 December 31, 2020 (In thousands) United States $ 4,733 $ 5,764 China 6,333 6,334 Taiwan 3,126 2,992 Other countries 1,128 1,385 Total property and equipment, net $ 15,320 $ 16,475 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Reorganization | Reorganization On September 15, 2020, a corporate reorganization (the “Reorganization”) (the “Parent”) (or “Corsair Luxco”) The Reorganization was comprised of a series of steps as set forth below: • The Parent acquired the minority interest held by Corsair Group (US), LLC in exchange for its own units. • Corsair Gaming, Inc. acquired all of the outstanding capital stock of Corsair Luxco from the Parent in exchange for its own stock. • In order for management and certain other partnership unit holders of the Parent to hold Corsair’s common stock directly, we entered into exchange agreements with such holders to exchange the Parent’s units for shares of Corsair’s common stock on a pro rata basis relative to their holdings in the Parent prior to the Reorganization. • The Parent’s 2017 Equity Incentive Program was assumed by Corsair and all of the outstanding options to acquire units under the Parent’s 2017 Equity Incentive Program were converted into options to purchase Corsair’s common stock on a pro rata basis with an adjusted exercise price to reflect the assumption. • We implemented a 1-for- 28,693.596843964 As all legal entities included in the Reorganization are under common control of the Parent, all steps of the Reorganization were accounted for as a combination of entities under common control. |
Initial Public Offering | Initial Public Offering and Secondary Offering On September 25, 2020, we completed our initial public offering (“IPO”) In connection with the IPO, we sold 7,500,000 shares of common stock at $17.00 per share, resulting in proceeds of $118.6 million, net of the underwriting discounts and commissions and before offering costs. In connection with the IPO, certain stockholders sold 6,500,000 shares of common stock at $17.00 per share. Subsequent to the IPO, certain stockholders further sold 1,135,375 shares pursuant to the underwriters’ exercise of their option to purchase additional shares. On January 26, 2021, we completed a secondary offering of our common stock where certain selling stockholders sold 8,625,000, shares of common stock at $35.00 per share. We did not receive any of the proceeds from the sale of shares by the selling stockholders in either the IPO or the secondary. Deferred offering costs consist primarily of accounting, legal, and other fees related to the IPO. Prior to the IPO, all deferred offering costs were capitalized in other assets in the condensed combined consolidated balance sheets. After the IPO, $12.0 million of deferred offering costs were reclassified into stockholders’ equity as a reduction of the IPO proceeds in the condensed combined consolidated balance sheets as of December 31, 2020. |
Basis of Presentation | Basis of Presentation Our interim condensed combined consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ( “ U.S. GAAP”) (“SEC”) The condensed combined consolidated balance sheet as of December 31, 2020, 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 combined consolidated financial statements should be read in conjunction with our combined consolidated financial statements and notes thereto for the year ended December 31, 2020, included in our Annual Report on Form 10-K. The interim condensed combined consolidated financial statements have been prepared on the same basis as the audited combined 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 combined consolidated balance sheet as of March 31, 2021 and our results of operations for the three months ended March 31, 2021 and 2020. The results for the three months ended March 31, 2021 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 condensed combined consolidated financial statements include the accounts of Corsair and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed combined 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 combined 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, deferred income tax, and common stock (prior to the IPO completed in September 2020). 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 current economic environment. We adjust such estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates due to risks and uncertainties, including uncertainty in the current economic environment due to COVID-19. |
Risks and Uncertainties related to COVID-19 Pandemic | Risks and Uncertainties related to the COVID-19 Pandemic Due to the COVID-19 pandemic, there has been and will continue to be uncertainty and disruption in the global economy and financial markets. Since early 2020, we have experienced some business disruptions due to COVID-19 including the stoppage in our factories in early 2020, disruption in our supply chain and increased distribution costs, which led to increase in operating costs. This negative financial impact has been offset by strong revenue growth year-over-year partly due to an increase in demand for our gear as more people in more countries are under shelter-in-place restrictions. In contrast, if the COVID-19 pandemic subsides in the second half of 2021, resulting in shelter-in-place and other similar restrictions being eased, it could result in consumers returning to other alternative forms of entertainment and interaction. This in turn could result in a decline in demand for our products. The extent to which the COVID-19 outbreak ultimately impacts our business, sales, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Even after the COVID-19 outbreak has subsided, we may continue to experience significant impacts to our business as a result of its global economic impact, including any economic downturn or recession that has occurred or may occur in the future. As of the date of issuance of these condensed combined consolidated financial statements, we are not aware of any specific event or circumstance that would require updates to our estimates and judgments or revisions due to COVID-19 to the carrying value of our assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed combined consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the condensed combined consolidated financial statements. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12 , Income Taxes (Topic 740) |
Accounting Pronouncements Issued but Not Yet Adopted | Accounting Pronouncements Issued but Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) |
Nonmonetary Transactions | Nonmonetary Transactions The sales and purchases of inventory with our manufacturers are accounted for as nonmonetary transactions. Upon sale of raw materials to the manufacturer, for the inventories on-hand with the manufacturer where there is an anticipated reciprocal purchase by us, we will record this nonmonetary transaction as prepaid inventories and accrued liabilities. When we transact the reciprocal purchase of inventory from the manufacturer, we will record a payable to the manufacturer at the purchase price, which replaces the initial nonmonetary transaction and inventory will be reflected at carrying value, which includes the costs for the raw materials and the incremental costs charged by the manufacturer for additional work performed on the inventory. As of March 31, 2021 and December 31, 2020, we recognized $10.8 million and $5.9 million, respectively, prepaid inventory and Because the transactions are nonmonetary, they have not been included in the condensed combined consolidated statements of cash flows pursuant to ASC 230, Statement of Cash Flows |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities that Measured at Fair Value | The following tables summarize our financial assets and liabilities that were measured at fair value on a recurring basis, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: March 31, 2021 (Level 1) (Level 2) (Level 3) Total (in thousands) Assets: Foreign currency forward contracts (1) $ — $ 642 $ — $ 642 Other — 19 — 19 Total assets $ — $ 661 $ — $ 661 Liabilities: Deferred cash consideration in connection with a business acquisition—SCUF (2) $ — $ — $ 1,250 $ 1,250 Other — 14 735 749 Total liabilities $ — $ 14 $ 1,985 $ 1,999 December 31, 2020 (Level 1) (Level 2) (Level 3) Total (In thousands) Liabilities: Contingent consideration in connection with a business acquisition—Origin (3) $ — $ — $ 2,887 $ 2,887 Deferred cash consideration in connection with a business acquisition—SCUF (2) — — 1,250 1,250 Deferred cash consideration in connection with a business acquisition—Origin (3) — — 1,505 1,505 Foreign currency forward contracts (1) — 819 — 819 Total liabilities $ — $ 819 $ 5,642 $ 6,461 (1) The fair values of the forward contracts were based on similar exchange traded derivatives and the related asset or liability is included within Level 2 of the fair value hierarchy. (2) The fair value of the SCUF contingent consideration was determined based on the estimates of acquired tax benefits owed to SCUF’s sellers according to the merger agreement. These estimates involved inputs unobservable in the markets and thus represent a level 3 fair value measurement. The $1.3 million liability as of March 31, 2021 and December 31, 2020 consists of $0.1 million based on a contractual amount and the remaining $1.2 million is subject to update upon filing our tax returns for tax years 2020 and 2021. ( 3 ) The Origin earn-out liability of $2.9 million and deferred cash consideration of $1.5 million were fully paid and settled in the three months ended March 31, 2021. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill by Reportable Segment | The following table summarizes the changes in the carrying amount of goodwill by reportable segment: Gaming Components and Systems Gamer and Creator Peripherals Total (In thousands) Balance as of December 31, 2020 $ 145,644 $ 167,116 $ 312,760 Addition from an immaterial business acquisition — 1,272 1,272 Effect of foreign currency exchange rates (18 ) 75 57 Balance as of March 31, 2021 $ 145,626 $ 168,463 $ 314,089 |
Summary of Intangible Assets, Net | The following table is a summary of intangible assets, net: March 31, 2021 December 31, 2020 Weighted Average Useful Life in Years Weighted Average Remaining Amortization Period in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) Developed technology 5.6 4.0 $ 32,086 $ 10,370 $ 21,716 $ 31,016 $ 8,892 $ 22,124 Trade name 15.0 13.3 30,807 3,397 27,410 30,632 2,873 27,759 Customer relationships 10.0 6.4 218,570 78,393 140,177 218,469 72,892 145,577 Patent 7.9 6.7 32,074 5,270 26,804 31,802 4,207 27,595 Non-competition agreements 5.0 1.4 2,521 1,815 706 2,521 1,689 832 Total finite-life intangibles 7.0 316,058 99,245 216,813 314,440 90,553 223,887 Indefinite life trade name Indefinite life — 35,430 — 35,430 35,430 — 35,430 Total intangible assets $ 351,488 $ 99,245 $ 252,243 $ 349,870 $ 90,553 $ 259,317 |
Schedule of Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of March 31, 2021 is as follows: Amounts (in thousands) Remainder of 2021 $ 26,092 2022 34,506 2023 32,899 2024 31,541 2025 31,051 Thereafter 60,724 Total $ 216,813 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of Cash and Restricted Cash | Cash and Restricted Cash March 31, 2021 December 31, 2020 (In thousands) Cash $ 121,622 $ 129,543 Restricted cash—short term 3,729 3,795 Restricted cash—noncurrent 231 230 Total cash and restricted cash $ 125,582 $ 133,568 |
Summary of Accounts Receivable, Net | Accounts Receivable, net: March 31, 2021 December 31, 2020 (In thousands) Accounts receivable $ 304,715 $ 293,975 Allowance for doubtful accounts (541 ) (346 ) Accounts receivable, net $ 304,174 $ 293,629 |
Summary of Inventories | Inventories March 31, 2021 December 31, 2020 (In thousands) Raw materials $ 48,259 $ 52,165 Work in progress 9,462 9,654 Finished goods 176,890 164,188 Inventories $ 234,611 $ 226,007 |
Summary of Property and Equipment, Net | Property and Equipment, Net March 31, 2021 December 31, 2020 (In thousands) Manufacturing equipment $ 22,609 $ 22,035 Computer equipment, software and office equipment 9,572 9,407 Furniture and fixtures 3,662 3,675 Leasehold improvements 4,350 4,521 Total property and equipment $ 40,193 $ 39,638 Less: Accumulated depreciation and amortization (24,873 ) (23,163 ) Property and equipment, net $ 15,320 $ 16,475 |
Summary of Other Liabilities and Accrued Expenses | Other Liabilities and Accrued Expenses March 31, 2021 December 31, 2020 (In thousands) Accrued reserves for customer incentive programs $ 50,384 $ 49,619 Accrued reserves for sales return 38,078 35,673 Accrued payroll and related expense 19,659 26,877 Income tax payable 37,749 22,445 Sales and use tax and value-added tax payables 15,932 9,284 Contract liabilities 11,600 9,787 Operating lease liabilities, current 9,589 9,070 Other 44,028 42,990 Other liabilities and accrued expenses $ 227,019 $ 205,745 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Value of First Lien Term Loan | The following table summarizes the carrying value of the First Lien Term Loan: March 31, 2021 December 31, 2020 (In thousands) Principal amount outstanding $ 298,938 $ 326,938 Less: Debt discount, net of amortization (1,794 ) (2,124 ) Less: Debt issuance costs, net of amortization (2,890 ) (3,421 ) Carrying amount $ 294,254 $ 321,393 |
Summary of Interest Expense Recognized for First Lien and Second Lien | The following table summarizes the interest expense recognized for the First Lien and Second Lien: Three Months Ended March 31, 2021 2020 (In thousands) Contractual interest expense for First Lien and Second Lien Term Loan $ 3,882 $ 8,638 Contractual interest expense for Revolver — 15 Amortization of debt discount 162 243 Amortization of debt issuance costs 375 336 Loss on debt extinguishment 439 — Total interest expense recognized $ 4,858 $ 9,232 |
Summary of Estimated Future Principal Payments under Total Long-term Debt | The estimated future principal payments under our total long-term debt as of March 31, 2021 are as follows: Amounts (In thousands) Remainder of 2021 $ — 2022 — 2023 — 2024 298,938 2025 — Thereafter — Total debt $ 298,938 Less: Discount and debt issuance costs (4,684 ) Total Debt, net of discount and debt issuance costs $ 294,254 Presented on the condensed combined consolidated balance sheet under: Current portion of debt, net $ — Debt, net $ 294,254 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Changes in Warranty | Changes in our warranty obligations were as follows: Three Months Ended March 31, 2021 2020 (In thousands) Beginning of the period $ 5,865 $ 3,991 Warranty provision related to products shipped 1,873 1,365 Deductions for warranty claims processed (1,737 ) (1,039 ) End of period $ 6,001 $ 4,317 |
Schedule of Long-Term Non-Cancelable Purchase Commitment | Long-term non-cancelable purchase commitment as of March 31, 2021 were as follows Amounts (in thousands) Remainder of 2021 $ 1,504 2022 2,104 2023 1,282 2024 1,263 2025 157 Thereafter — Total $ 6,310 |
Equity Incentive Plans and St_2
Equity Incentive Plans and Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense by line item in the accompanying condensed combined consolidated statements of operations: Three Months Ended March 31, 2021 2020 (In thousands) Cost of revenue $ 181 $ 63 Sales, general and administrative 2,572 880 Product development 323 162 Total stock-based compensation expense 3,076 1,105 Income tax benefit (919 ) — Total stock-based compensation expense, net of income tax benefit $ 2,157 $ 1,105 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following table summarizes the calculation of basic and diluted net income per share: Three Months Ended March 31, 2021 2020 (in thousands, except per share amounts) Numerator Net income, basic and diluted $ 46,723 $ 1,217 Denominator Weighted-average shares used to compute net income per share, basic 91,951 84,079 Effect of dilutive securities (1) 8,260 1,991 Weighted-average shares used to compute net income per share, diluted 100,211 86,070 Net income per share: Basic $ 0.51 $ 0.01 Diluted $ 0.47 $ 0.01 Anti-dilutive potential common shares (1) 369 2,807 (1) Potential common share equivalents were not included in the calculation of diluted net income per share as the effect would have been anti-dilutive |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Taxes, Income Tax (Expense) Benefit and Effective Income Tax Rates | The table below presents our income (loss) before income taxes, income tax (expense) benefit and effective income tax rates for all periods presented: Three Months Ended March 31, 2021 2020 (in thousands) Income before income taxes $ 59,918 $ 3,900 Income tax expense (13,195 ) (2,683 ) Effective tax rate 22.0 % 68.8 % |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for Each Reportable Segment | The table below summarizes the financial information for each reportable segment: Three Months Ended March 31, 2021 2020 (In thousands) Net revenue Gaming and Creator Peripherals $ 175,912 $ 75,861 Gaming Components and Systems 353,502 232,657 Total net revenue $ 529,414 $ 308,518 Gross Profit Gaming and Creator Peripherals $ 68,866 $ 22,133 Gaming Components and Systems 91,462 56,489 Total gross profit $ 160,328 $ 78,622 |
Summary of Net Revenue By Geographic Region | The following table summarizes our net revenue by geographic region based on the location of the customer: Three Months Ended March 31, 2021 2020 (In thousands) Net revenue Americas $ 226,388 $ 123,710 Europe and Middle East 225,494 110,550 Asia Pacific 77,532 74,258 Total net revenue $ 529,414 $ 308,518 |
Summary of Property And Equipment, Net by Country | The following table summarizes property and equipment, net by country: March 31, 2021 December 31, 2020 (In thousands) United States $ 4,733 $ 5,764 China 6,333 6,334 Taiwan 3,126 2,992 Other countries 1,128 1,385 Total property and equipment, net $ 15,320 $ 16,475 |
Description of Business and B_2
Description of Business and Basis of Presentation - Additional Information (Detail) | Jan. 26, 2021$ / sharesshares | Sep. 26, 2020shares | Sep. 25, 2020USD ($)$ / sharesshares | Sep. 15, 2020shares | Mar. 31, 2021USD ($)Segmentshares | Dec. 31, 2020USD ($)shares |
Description Of Business And Basis Of Presentation [Line Items] | ||||||
Number of reportable segments | Segment | 2 | |||||
Stock split ratio | 3.485 | |||||
Common stock, shares outstanding | 84,405,366 | 92,087,000 | 91,935,000 | |||
Options outstanding to purchase common stock | 10,029,388 | |||||
Deferred offering costs | $ | $ 12,000,000 | |||||
Initial Public Offering | ||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||
Number of shares sold | 7,500,000 | |||||
Sale of stock, price per share | $ / shares | $ 17 | |||||
Proceeds from issuance of initial public offering, net | $ | $ 118,600,000 | |||||
Stockholders sale of common stock shares | 6,500,000 | |||||
Stockholders sale of common stock shares price per share | $ / shares | $ 17 | |||||
Underwriters' Option | ||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||
Stockholders sale of common stock shares | 1,135,375 | |||||
Secondary Offering | ||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||
Number of shares sold | 8,625,000 | |||||
Sale of stock, price per share | $ / shares | $ 35 | |||||
Selling Stockholders | ||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||
Proceeds from issuance of initial public offering, net | $ | $ 0 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - ASU 2019-12 | Mar. 31, 2021 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Assets and Liabilities that Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Cash Consideration Business Acquisition Origin | ||
Liabilities: | ||
Liabilities | $ 1,500 | |
Fair Value Recurring Basis | ||
Assets: | ||
Assets | 661 | |
Liabilities: | ||
Liabilities | 1,999 | $ 6,461 |
Fair Value Recurring Basis | Foreign Currency Forward Contracts | ||
Assets: | ||
Assets | 642 | |
Liabilities: | ||
Liabilities | 819 | |
Fair Value Recurring Basis | Other | ||
Assets: | ||
Assets | 19 | |
Liabilities: | ||
Liabilities | 749 | |
Fair Value Recurring Basis | Deferred Cash Consideration Business Acquisition SCUF | ||
Liabilities: | ||
Liabilities | 1,250 | 1,250 |
Fair Value Recurring Basis | Contingent Consideration Business Acquisition Origin | ||
Liabilities: | ||
Liabilities | 2,887 | |
Fair Value Recurring Basis | Deferred Cash Consideration Business Acquisition Origin | ||
Liabilities: | ||
Liabilities | 1,505 | |
Fair Value Recurring Basis | (Level 2) | ||
Assets: | ||
Assets | 661 | |
Liabilities: | ||
Liabilities | 14 | 819 |
Fair Value Recurring Basis | (Level 2) | Foreign Currency Forward Contracts | ||
Assets: | ||
Assets | 642 | |
Liabilities: | ||
Liabilities | 819 | |
Fair Value Recurring Basis | (Level 2) | Other | ||
Assets: | ||
Assets | 19 | |
Liabilities: | ||
Liabilities | 14 | |
Fair Value Recurring Basis | (Level 3) | ||
Liabilities: | ||
Liabilities | 1,985 | 5,642 |
Fair Value Recurring Basis | (Level 3) | Other | ||
Liabilities: | ||
Liabilities | 735 | |
Fair Value Recurring Basis | (Level 3) | Deferred Cash Consideration Business Acquisition SCUF | ||
Liabilities: | ||
Liabilities | $ 1,250 | 1,250 |
Fair Value Recurring Basis | (Level 3) | Contingent Consideration Business Acquisition Origin | ||
Liabilities: | ||
Liabilities | 2,887 | |
Fair Value Recurring Basis | (Level 3) | Deferred Cash Consideration Business Acquisition Origin | ||
Liabilities: | ||
Liabilities | $ 1,505 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Financial Assets and Liabilities that Measured at Fair Value (Parenthetical) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Earn out liability | $ 4,353 |
Contingent Consideration Business Acquisition SCUF | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Liabilities | 1,300 |
Contingent Consideration Business Acquisitions Origin | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Earn out liability | 2,900 |
Deferred Cash Consideration Business Acquisition Origin | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Liabilities | 1,500 |
Contractual Amount | Contingent Consideration Business Acquisition SCUF | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Liabilities | 100 |
Tax Return Filing Adjustment | Contingent Consideration Business Acquisition SCUF | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Liabilities | $ 1,200 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)Derivative | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Derivative Instruments Gain Loss [Line Items] | |||
Derivative instruments for trading purposes | Derivative | 0 | ||
Designated as Hedging Instruments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, amount of hedged item | $ 0 | ||
Foreign Currency Forward Contracts | Non Designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional principal amount | 38,600 | $ 41,600 | |
Foreign Currency Forward Contracts | Non Designated | Other (Expense) Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fair value gain (loss) recognized | $ 700 | $ 300 | |
Minimum | Foreign Currency Forward Contracts | Non Designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative maturity term | 3 months | ||
Maximum | Foreign Currency Forward Contracts | Non Designated | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative maturity term | 4 months |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - Series of Individually Immaterial Business Acquisitions $ in Millions | Feb. 28, 2021USD ($) | Dec. 31, 2020USD ($)Acquisition |
Business Acquisition [Line Items] | ||
Purchase consideration | $ | $ 1.7 | $ 1.3 |
Number of acquisitions | Acquisition | 2 |
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, 2021USD ($) | |
Goodwill [Line Items] | |
Balance | $ 312,760 |
Addition from an immaterial business acquisition | 1,272 |
Effect of foreign currency exchange rates | 57 |
Balance | 314,089 |
Gaming Components and Systems | |
Goodwill [Line Items] | |
Balance | 145,644 |
Effect of foreign currency exchange rates | (18) |
Balance | 145,626 |
Gamer and Creator Peripherals | |
Goodwill [Line Items] | |
Balance | 167,116 |
Addition from an immaterial business acquisition | 1,272 |
Effect of foreign currency exchange rates | 75 |
Balance | $ 168,463 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Remaining Amortization Period in Years | 7 years | |
Total finite-life intangibles, Gross Carrying Amount | $ 316,058 | $ 314,440 |
Total finite-life intangibles, Accumulated Amortization | 99,245 | 90,553 |
Total finite-life intangibles, Net Carrying Amount | 216,813 | 223,887 |
Total intangible assets, Gross Carrying Amount | 351,488 | 349,870 |
Total intangible assets, Net Carrying Amount | 252,243 | 259,317 |
Trade Name | ||
Indefinite-life intangibles, Gross and Net Carrying Amount | $ 35,430 | 35,430 |
Developed Technology | ||
Weighted Average Useful Life | 5 years 7 months 6 days | |
Weighted Average Remaining Amortization Period in Years | 4 years | |
Total finite-life intangibles, Gross Carrying Amount | $ 32,086 | 31,016 |
Total finite-life intangibles, Accumulated Amortization | 10,370 | 8,892 |
Total finite-life intangibles, Net Carrying Amount | $ 21,716 | 22,124 |
Trade Name | ||
Weighted Average Useful Life | 15 years | |
Weighted Average Remaining Amortization Period in Years | 13 years 3 months 18 days | |
Total finite-life intangibles, Gross Carrying Amount | $ 30,807 | 30,632 |
Total finite-life intangibles, Accumulated Amortization | 3,397 | 2,873 |
Total finite-life intangibles, Net Carrying Amount | $ 27,410 | 27,759 |
Customer Relationships | ||
Weighted Average Useful Life | 10 years | |
Weighted Average Remaining Amortization Period in Years | 6 years 4 months 24 days | |
Total finite-life intangibles, Gross Carrying Amount | $ 218,570 | 218,469 |
Total finite-life intangibles, Accumulated Amortization | 78,393 | 72,892 |
Total finite-life intangibles, Net Carrying Amount | $ 140,177 | 145,577 |
Patent | ||
Weighted Average Useful Life | 7 years 10 months 24 days | |
Weighted Average Remaining Amortization Period in Years | 6 years 8 months 12 days | |
Total finite-life intangibles, Gross Carrying Amount | $ 32,074 | 31,802 |
Total finite-life intangibles, Accumulated Amortization | 5,270 | 4,207 |
Total finite-life intangibles, Net Carrying Amount | $ 26,804 | 27,595 |
Non-competition Agreements | ||
Weighted Average Useful Life | 5 years | |
Weighted Average Remaining Amortization Period in Years | 1 year 4 months 24 days | |
Total finite-life intangibles, Gross Carrying Amount | $ 2,521 | 2,521 |
Total finite-life intangibles, Accumulated Amortization | 1,815 | 1,689 |
Total finite-life intangibles, Net Carrying Amount | $ 706 | $ 832 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2021 | $ 26,092 | |
2022 | 34,506 | |
2023 | 32,899 | |
2024 | 31,541 | |
2025 | 31,051 | |
Thereafter | 60,724 | |
Total finite-life intangibles, Net Carrying Amount | $ 216,813 | $ 223,887 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash | $ 121,622 | $ 129,543 | ||
Restricted cash | 3,729 | 3,795 | ||
Restricted cash, noncurrent | 231 | 230 | ||
Total cash and restricted cash | $ 125,582 | $ 133,568 | $ 50,483 | $ 51,947 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 304,715 | $ 293,975 |
Allowance for doubtful accounts | (541) | (346) |
Accounts receivable, net | $ 304,174 | $ 293,629 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) $ in Millions | Mar. 31, 2021USD ($)Customer | Dec. 31, 2020USD ($)Customer |
Inventory Exchanges | ||
Concentration Risk [Line Items] | ||
Sales and purchases of inventories in prepaid inventories and accrued liabilities | $ | $ 10.8 | $ 5.9 |
Accounts Receivable | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Number of customers | Customer | 2 | 2 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 48,259 | $ 52,165 |
Work in progress | 9,462 | 9,654 |
Finished goods | 176,890 | 164,188 |
Inventories | $ 234,611 | $ 226,007 |
Balance Sheet Components - Su_4
Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 40,193 | $ 39,638 |
Less: Accumulated depreciation and amortization | (24,873) | (23,163) |
Property and equipment, net | 15,320 | 16,475 |
Manufacturing Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 22,609 | 22,035 |
Computer Equipment, Software and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 9,572 | 9,407 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,662 | 3,675 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 4,350 | $ 4,521 |
Balance Sheet Components - Su_5
Balance Sheet Components - Summary of Other Liabilities and Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued reserves for customer incentive programs | $ 50,384 | $ 49,619 |
Accrued reserves for sales return | 38,078 | 35,673 |
Accrued payroll and related expense | 19,659 | 26,877 |
Income tax payable | 37,749 | 22,445 |
Sales and use tax and value-added tax payables | 15,932 | 9,284 |
Contract liabilities | 11,600 | 9,787 |
Operating lease liabilities, current | 9,589 | 9,070 |
Other | 44,028 | 42,990 |
Other liabilities and accrued expenses | $ 227,019 | $ 205,745 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Oct. 31, 2018 | Oct. 31, 2017 | Aug. 31, 2017 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | |||||||||||||||||
Repayment of debt | $ 28,000,000 | $ 1,194,000 | |||||||||||||||
Principal amount outstanding | $ 298,938,000 | 298,938,000 | |||||||||||||||
First Lien Term Loan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Principal amount | $ 235,000,000 | $ 115,000,000 | $ 115,000,000 | $ 10,000,000 | |||||||||||||
Debt instrument, maturity date | Aug. 28, 2024 | ||||||||||||||||
Principal amount outstanding | 298,938,000 | $ 326,938,000 | 298,938,000 | $ 326,938,000 | |||||||||||||
First Lien Term Loan | (Level 1) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Principal amount outstanding | 298,200,000 | 326,500,000 | 298,200,000 | 326,500,000 | |||||||||||||
First Lien Term Loan | Initial Public Offering | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayment of debt | $ 55,800,000 | $ 2,600,000 | $ 1,200,000 | $ 0 | 59,600,000 | ||||||||||||
Debt instrument, maturity date | 2024-08 | ||||||||||||||||
Voluntary prepayments of term loans | $ 28,000,000 | $ 25,000,000 | $ 25,000,000 | 30,800,000 | 80,800,000 | ||||||||||||
First Lien Term Loan | Federal Funds Effective Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 0.50% | ||||||||||||||||
First Lien Term Loan | One Month LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 1.00% | ||||||||||||||||
Debt instrument, maturity period of variable rate basis | 1 month | ||||||||||||||||
First Lien Term Loan | 2%, Plus Margin Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 3.50% | ||||||||||||||||
Debt instrument, interest rate | 2.00% | ||||||||||||||||
First Lien Term Loan | 1%, Plus Margin Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 4.50% | ||||||||||||||||
Debt instrument, interest rate | 1.00% | ||||||||||||||||
Revolver | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Principal amount | $ 50,000,000 | ||||||||||||||||
Debt instrument, maturity date | Aug. 28, 2022 | ||||||||||||||||
Revolver | Federal Funds Effective Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 0.50% | ||||||||||||||||
Revolver | One Month LIBOR | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 1.00% | ||||||||||||||||
Debt instrument, maturity period of variable rate basis | 1 month | ||||||||||||||||
Revolver | 2%, Plus Margin Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 3.50% | ||||||||||||||||
Debt instrument, interest rate | 2.00% | ||||||||||||||||
Revolver | 1%, Plus Margin Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 4.50% | ||||||||||||||||
Debt instrument, interest rate | 1.00% | ||||||||||||||||
Revolver | Base Rate | Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 2.75% | ||||||||||||||||
Revolver | Base Rate | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 3.25% | ||||||||||||||||
Revolver | Eurodollar | Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 3.75% | ||||||||||||||||
Revolver | Eurodollar | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 4.25% | ||||||||||||||||
First Lien Term Loan Amendment | Base Rate | Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 2.75% | ||||||||||||||||
First Lien Term Loan Amendment | Base Rate | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 3.25% | ||||||||||||||||
First Lien Term Loan Amendment | Eurodollar | Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 3.75% | ||||||||||||||||
First Lien Term Loan Amendment | Eurodollar | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 4.25% | ||||||||||||||||
Second Lien Term Loan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Principal amount | $ 65,000,000 | ||||||||||||||||
Debt instrument, maturity date | Aug. 28, 2025 | ||||||||||||||||
Repayments of term loans | $ 25,000,000 | $ 15,000,000 | $ 10,000,000 | $ 50,000,000 | |||||||||||||
Second Lien Term Loan | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 7.25% | ||||||||||||||||
Second Lien Term Loan | Eurodollar | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate | 8.25% | ||||||||||||||||
Second Lien Term Loan Amendment | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Principal amount | $ 50,000,000 | ||||||||||||||||
Second Lien Term Loan Amendment | Base Rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate increase | 0.25% | ||||||||||||||||
Second Lien Term Loan Amendment | Eurodollar | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, variable rate increase | 0.25% | ||||||||||||||||
First Lien and Second Lien Term Loan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Annual weighted average effective interest rate | 6.45% | 6.92% | 6.45% | 6.92% |
Debt - Summary of Carrying Valu
Debt - Summary of Carrying Value of First Lien Term Loan (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Principal amount outstanding | $ 298,938 | |
Total Debt, net of discount and debt issuance costs | 294,254 | |
First Lien Term Loan | ||
Debt Instrument [Line Items] | ||
Principal amount outstanding | 298,938 | $ 326,938 |
Less: Debt discount, net of amortization | (1,794) | (2,124) |
Less: Debt issuance costs, net of amortization | (2,890) | (3,421) |
Total Debt, net of discount and debt issuance costs | $ 294,254 | $ 321,393 |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense Recognized for First Lien and Second Lien (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Loss on debt extinguishment | $ 439 | |
Total interest expense recognized | 4,946 | $ 9,374 |
First Lien and Second Lien Term Loan | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 3,882 | 8,638 |
Amortization of debt discount | 162 | 243 |
Amortization of debt issuance costs | 375 | 336 |
Loss on debt extinguishment | 439 | |
Total interest expense recognized | $ 4,858 | 9,232 |
Revolver | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 15 |
Debt - Summary of Estimated Fut
Debt - Summary of Estimated Future Principal Payments under Total Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2024 | $ 298,938 | |
Total debt | 298,938 | |
Less: Discount and debt issuance costs | (4,684) | |
Total Debt, net of discount and debt issuance costs | 294,254 | |
Presented on the condensed combined consolidated balance sheet under: | ||
Debt, net | $ 294,254 | $ 321,393 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Changes in Warranty Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Beginning of the period | $ 5,865 | $ 3,991 |
Warranty provision related to products shipped | 1,873 | 1,365 |
Deductions for warranty claims processed | (1,737) | (1,039) |
End of period | $ 6,001 | $ 4,317 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Long-Term Non-Cancelable Purchase Commitment (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remainder of 2021 | $ 1,504 |
2022 | 2,104 |
2023 | 1,282 |
2024 | 1,263 |
2025 | 157 |
Total | $ 6,310 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Details) | Apr. 27, 2021USD ($) | Mar. 31, 2021USD ($)Claim | Dec. 31, 2020USD ($) |
Loss Contingencies [Line Items] | |||
Non-cancelable long-term purchase commitments | $ 6,800,000 | ||
Letters of credit outstanding, amount | $ 2,000,000 | $ 2,000,000 | |
Line of credit facility, current borrowing capacity | $ 0 | ||
Loss contingency, claims settled, number | Claim | 0 | ||
Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Operating lease term | 10 years 6 months | ||
Expected accounting lease commencement month and year | 2021-05 | ||
Undiscounted lease payment | $ 45,600,000 | ||
Operating lease expiration month and year | 2022-03 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | Sep. 15, 2020$ / sharesshares | Mar. 31, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares | Sep. 25, 2020$ / sharesshares |
Equity [Abstract] | ||||
Authorized shares of common stock for issuance | 100,000,000 | 300,000,000 | 300,000,000 | 300,000,000 |
Authorized shares of common stock for issuance, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Stock split ratio | 3.485 | |||
Common stock shares outstanding | 84,405,366 | 92,087,000 | 91,935,000 | |
Authorized shares of preferred stock for issuance | 5,000,000 | 5,000,000 | 5,000,000 | |
Authorized shares of preferred stock for issuance, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Preferred stock shares outstanding | 0 | 0 |
Equity Incentive Plans and St_3
Equity Incentive Plans and Stock-Based Compensation - Summary of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 3,076 | $ 1,105 |
Income tax benefit | (919) | |
Total stock-based compensation expense, net of income tax benefit | 2,157 | 1,105 |
Cost of Revenue | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 181 | 63 |
Sales, General and Administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 2,572 | 880 |
Product Development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 323 | $ 162 |
Equity Incentive Plans and St_4
Equity Incentive Plans and Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Intrinsic value of options exercised | $ 4,400,000 | $ 0 |
Restricted Stock Units (RSUs) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized stock-based compensation cost related to unvested stock | $ 30,300,000 | |
Expected to be recognized weighted average period | 3 years | |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized stock-based compensation cost related to unvested stock | $ 500,000 | |
Expected to be recognized weighted average period | 6 months |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator | ||
Net income, basic and diluted | $ 46,723 | $ 1,217 |
Denominator | ||
Weighted-average shares used to compute net income per share, basic | 91,951 | 84,079 |
Effect of dilutive securities | 8,260 | 1,991 |
Weighted-average shares used to compute net income per share, diluted | 100,211 | 86,070 |
Net income per share: | ||
Basic | $ 0.51 | $ 0.01 |
Diluted | $ 0.47 | $ 0.01 |
Anti-dilutive potential common shares | 369 | 2,807 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes, Income Tax (Expense) Benefit and Effective Income Tax Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 59,918 | $ 3,900 |
Income tax expense | $ (13,195) | $ (2,683) |
Effective tax rate | 22.00% | 68.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 22.00% | 68.80% | |
One-time benefit from change in tax law resulting from enactment of CARES act | $ 0.6 | ||
Unrealized tax benefits | $ 1.3 | $ 1.2 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2021SegmentCustomerCountry | Mar. 31, 2020Country | |
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 | 36.20% | 32.90% |
Geographic Concentration Risk | Consolidated Net Revenue | Non-US | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue from sales to customers | 10.00% | 10.00% |
Number of single countries representing more than ten percent threshold | 0 | 0 |
Number of customer for more than minimum threshold percentage of revenue | Customer | 1 | |
Geographic Concentration Risk | Property And Equipment Net | Non-US | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue from sales to customers | 10.00% | 10.00% |
Number of single countries representing more than ten percent threshold | 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, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 529,414 | $ 308,518 |
Total gross profit | 160,328 | 78,622 |
Gaming and Creator Peripherals | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 175,912 | 75,861 |
Total gross profit | 68,866 | 22,133 |
Gaming Components and Systems | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 353,502 | 232,657 |
Total gross profit | $ 91,462 | $ 56,489 |
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, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 529,414 | $ 308,518 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 226,388 | 123,710 |
Europe and Middle East | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 225,494 | 110,550 |
Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 77,532 | $ 74,258 |
Segment and Geographic Inform_6
Segment and Geographic Information - Summary of Property And Equipment, Net by Country (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 15,320 | $ 16,475 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 4,733 | 5,764 |
China | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 6,333 | 6,334 |
Taiwan | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 3,126 | 2,992 |
Other Countries | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 1,128 | $ 1,385 |