CRSR - Earnings call transcript Q1 2021

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Operator

Good morning, and welcome to Corsair Gaming First Quarter 2021 Earnings Conference Call.

As a reminder, today’s call is being recorded, and your participation implies consent to such recordings. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] With that, I would like to turn the call over to Ronald van Veen, Corsair’s Vice President of Finance and Investor Relations. sir. you, Thank Please begin.

Ronald van Veen

and results Corsair’s first conference March XXXX. everyone, you joining quarter morning, XX, for thank call for Good financial us you. ending Thank for the

and we CEO, On have call Potter. today, Andy the Paul; CFO, Michael our

and a the we statements. regarding of expected portion the future This Before forward-looking include company Q&A forward-looking call, the results disclaimer may to are including statements allow statements. me of begin, therefore provide forward-looking call, related our to

due subject to differ uncertainties. earnings may materially described filings. projections will include SEC risks uncertainties from results Today’s in other number actual and also a our references The that Our of forward-looking to our and non-GAAP risks to and measures. remarks statements release are are financial

reconciliation financial XXXX non-GAAP preliminary. the remind press for through between call in the everyone to information is via will information, webcast QX be numbers XX-Q I our provided on including would like GAAP release. financial file that are Additional also to conference replay is information, This available until financials Q&A. Relations ir.corsair.com. now call you business outlook, we it Andy quarter with first updated our our to of and over to I’ll over highlights, Michael at Investor review the a Andy. will proceed then and website through With will take that, begin Corsair’s the before turn XXXX

Andy Paul

and Ronald, call. QX to welcome earnings Thanks, XXXX our

results, exceeded committed of expectations, money our to which QX new spend as to our casual with and activity gaming levels on delighted the see who continue are elevated we conversion While gamers gear. gamers we of

over which by $XX.X adjusted XXX.X%, up QX strongest nearly million, from saw per growth game expected in the quarterly XXXX. over and subsequent believe to to and products, to $X,XXX advantage gross XXXX. on Adjusted accessory on gaming growing We Components share, growth leading second EBITDA next we estimated Gaming our which $X.XX PC is high-margin purchases. earnings per both our segments, buying PCs, delivered a our years, plus heavy segment. high we of During in QX continued a net $XXX.X which QX XX.X% revenue playing XX.X% diluted $X.XX record and record indicates and record QX, building our performance XX.X% mixes share of million surpassed segment only few tripled, is of shipment of margins

we achieve these we caution are that margins can to every While not expect to see pleased quarter. subsequent we evidence in these levels,

conviction market. more to high that time However, increase margins the continue out we internally as dominant bring in strong become and products underscores our over will future

very also saw share the continue cards to continues more market to from products from creative most that but gaming see QX, in and in peripherals, video NVD where gaming streaming market category largest XXXX. be massive nearly in our peripherals, branded to tripled has to segments, doubled every Creator and of the XXXX year-over-year in growth market. Elgato our were We that and is financial we than QX both We’re U.S., segment in pleased and QX we number position continue Gamer revenue the market grow segment. creator monitors overall outgrow Peripherals which notably lighting. components our in The one in strongly, In and capture leader the the

microphone gained Wave very has Our last quickly. launched share market significant year

and category. share in has almost ever which to sold been XX% and keyboard, sales three keyboards out new we exploded. March. launched quarters continue now over components, we we it the has On KXX, launched Peripherals, since the standard with the last gaming systems Gaming new in every The has deck for stream become Our most the our being broadcasting home and mice, notable several gain

installed. to U.S. IQ modify drive now an their us smart of drives meaning XXXX our shipped gaming competitor. This PC. XXXX are in and lead of IQ as and XX%, are sales they our with that a cases, over gaming our case gaming X% PC cases helped new sales further continue upgrade have market accessories series Over the of gamers Our controller nearest share to RGB XX%

both Our CORSAIR graphics over also received award ONE purchases. IQ sub and are as card, CORSAIR our Tom’s as an Liquid-Cooled aXXX of with well CPU Editors IQ additional segment, had we RTX pre-built accessory Ryzen enabled, our systems which which sales We PC. believe we our from drives VENGEANCE from shipments, memory In Hardware. ORIGIN have of XXXX gaming rapid XX% again, PC

PC shipping and our QX. new new three to solid products, power four XX new thrilled We offer eight products, and and of increased studio gaming including products, pace Intel products four launch keyboards, and five week two our both series launched We’re models. NVIDIA two PC almost enhanced ONE mouse accessory We prebuilt XX AMD in drives CORSAIR cooling start case supplies, Elgato with per to also with pads, GPU cards three speed related state high new CPUs.

marketing over we will and to XXXX, R&D our the of that growth a expect was will higher QX roadmap. expand in execute R&D and up on drive We pace rest year. to continue the continue and for at over XX%

products the should to product use to blistering you similar continue launch for will a gain and share. new at in marketing, high-performance products us invest expect pace to these and market continue We to pace

demand, of to we that premium $X.X provides our streamers we $XXX guidance broadcast, guidance the During XX.X% who on range for gear gaming the range $XXX acquisition to $X.X widgets billion. that representing revenue of operating strong million our professional Visuals and fan up million world’s income range designs $X.XX results Impulse, billion announced VBI Total online creators and positive are design use outlook basis. for for grow million. growth the and creators. of to Based customize overlays, and EBITDA of XXXX. $XXX from QX the of raising to the quarter, full their VBI billion, $XXX the and XX.X%, for million, in platform to helped of the find adjusted persona individualized year $X.X billion alerts and Adjusted in to to in of by prior

be discussed a this R&D billion resources I’ll support. in financial turn results call we’ll to as towards for significant infrastructure Michael year, the the As to we both the discuss move and well and number. to for Thank as marketing quarter. continued before, revenue adding $X time company our as your you now over

Michael Potter

good morning, and Andy, Thanks, everyone.

provided product an revenue, revenue quarter, an net than an XX.X% $XXX.X contributed first net more was points beating in increased XXXX Systems more of points which million, the million segment this and revenue profit to same $XX.X $XX.X we even XX.X% consumers million of net strong XXXX, streaming continued segment in during strong sales increase Gross $XXX.X million XX.X% revenue in quarter, first as Creator of $XX.X the margin primarily revenue than by largely Less record million quarter build a XX.X% was total across Gamer contributed and half product PCs. QX of to increase mix delivered $XXX.X XXXX. first basis XXXX. across QX coupled XXXX, gear. Gamer XXXX Gross and in segment of positive QX all margin in of XX.X% by memory and compared periods. from profit promotional QX increase came of from XXXX. categories Creator During Peripherals of growth The sales increase from driven gross an Components from Peripherals segment The in to million related an by in $XX.X QX of provided streaming $XXX.X was XXX.X% gross million, by revenue revenues increase in of products, The revenue in buy $XX.X quarter, $XXX.X QX of in in margin from million XX.X% million and XXXX. Peripheral first Creator driven increase XXX increase XX.X% streaming to in of margin the million. The In the million, XX.X% by compared of quarter’s Gaming profit Elgato the XXXX, well $XXX.X branded The to the driven and all driven categories. less basis The growth net the than gaming doubled by from million. an $XXX.X QX QX activities. net Gross from QX increase primarily impact XXX.X% with primarily net sales of driven Gamer $XXX.X our margin products, products, doubled as products. as was increase during higher higher over million XXX including margin increased product particular, to profit in growth strong an last from

was of Gamer overall as increase and margin XXXX, to to periods. gross Peripherals in shift mix. million Systems XXXX. of XXXX profit contributed XX% primarily from XXXX growing compared compared and our gross Gaming profit in in $XX.X and the the gross XX.X% in profit due to increase We also expansion XXXX. Systems largest to market. XX% story a XX.X% QX Components Components for an as in mix continue primarily segment XXXX, million, The same QX product in of margin in margin see driven the QX is This $XX Creator $XX.X contributed sits was Gross fastest revenue highest Gaming QX in and million QX XX.X% great by as compared overall our to a XX.X% continued and total in QX as formula total segment profit

for segment the Our memory this XX% products margin was in quarter.

due of quarter QX in million personnel-related First to a increase company driven increase XX.X% and public $XX.X expenses in compared XXXX, an an increase in primarily to increase $XX.X million, related freight expenses. or increase $XX.X an by costs an due revenue, expenses being an million outbound SG&A were to to in

XXXX of million $XX.X million XX.X% in the of to Operating we increase development from QX million, income driven or bringing continue QX from QX by first as were an in increase to operating increasing in increase in expenses in number market. $XX.X income $XX million XXXX. products XXXX, personnel-related of $X.X XXXX. million, First in the an million was quarter quarter quarter million an million $XX.X increase was to of first million, $XX.X Adjusted or XXXX $XX XXX.X% an of an the $XX.X on primarily product expenses focus of $XX.X compared

diluted income or per XXXX. $X.XX First share $XX.X $X.XX QX per to million $X.X quarter income net net as compared of in was or diluted share million

share First million an XX.X%, in increase compared income was $X.XX million to quarter EBITDA as or was million or share of increase income diluted adjusted net XXXX. million for for XXXX margin basis QX an XXXX, year-over-year. to $XX.X XXX.X% $XX.X of XXX $XX.X QX or bringing adjusted diluted per points QX $XX.X to EBITDA Adjusted $X.XX compared adjusted $XX.X per net of million,

to by million now balance now $XX well and resources the performance sufficient million value growing opportunity Turning able in strengthen a additional net face with our the balance strong debt to financial quickly convert an $XXX below this were accelerate first in million, of We our ratio leaving reduced our further at into did sheet. sheet. quarter an to to debt X. future. We further leverage growth resulting $XXX.X and while net We in

in result conditions, to growth debt the in subject We debt savings year. for will million approximately any payoff during additional expense need million expect $X The reduce continue in capital. interest business to $XX to XXXX,

cash we had restricted GAAP of debt long-term revolving facility, of under XX, capacity $XXX.X total March million credit XXXX, our million. $XXX.X million cash of and As excluding $XX.X

performance for as corporate reduced our discussed, are fourth but to be rating not just in company shortage reduction to suppliers challenges earnings does in The teams pay modeling exciting interest in quarter to and with increasing business to exception XX, different the a Corsair call the working customers that the new on of discussed our we same financial BB- our what S&P it details strong February to do is B+ as the Our as It strong Andy our overcome products That a expense. Gaming give helps resulted we continues from confidence additional remain plans XXXX today. down and increased XXXX face XXXX. reliable and underlying now with. our logistics the and chain supply outlook debt

For ease, I’ll repeat them.

year-over-year improve support and increase We at need continue full well to costs. company larger as the higher to innovate year level, revenue to a scale margins slightly expect to and a to public expense operating of our gross

$X.X Assuming we million no down, of quarter. interest debt approximately expect further now pay expense per

conditions share in XXXX, reduction depending XXX and ease, stock shares. market As of million expecting of growth what as of channel already the $X expected outstanding win with to in products. the to down than open is an subject down business and with XXXX, if for With line be Q&A. million XXXX uncertain approximately effective debt please we’ve our the capital. on our patent where in year debt in logistics paid additional more and progress any, gain, rate tax we to million happy outlook. competitors strategic initiatives The supply expecting and XX% XXX of appeal, the we is grew average for full as total range in to of we’re $XXX any increase to down the to to in revenue on QX and this that, now of for and this not year XXXX, are weighted questions. the are noted, rules, is able we’ve full to This $XX that the approximately amount QX judge An of open Overall, believe adjusted could call We and $XX additional time. pleased are of made approximately a expect a business. compared Operator, million for need of income vary fully million the performance pay our for trial timing continued subject we’re you recognition we We will our and at constraints shares XX% operating more diluted XXXX XXXX. our we’ll for million

Operator

is Instructions] Please Credit Cabral from Our Thank with Suisse. Yes. you. question proceed. [Operator first Matt

Matt Cabral

talked your thinking about a And of has to during the second the you ago if could XX year. sort typical half just half from the back first just first quarter. then second year, you into how transition about seasonalities we days in trends compared thoughts. had the of update stronger Yes. Wondering the Andy, into us than the think Thank half half you. should this about latest moved we

Andy Paul

guidance to still estimates. starting Yes. are spending a Well, we think we gaming best the lot what that in people signs at we’ve is going moment fashion more more of to is and people more All to given out the play my games a and happen, buy are committed see time of importantly, that gear.

numbers with to that really on we’re that pre-COVID continue, compare comes. what seeing fact, is Now we’re we expect in and and past looking now focused COVID now XXXX trying to the

is pretty what going you So see the what’s in it’s can the on. growth true sector. encouraging And

good what’s So gaming. that obviously, committed half. out to the going the to sure of we don’t that second people XXXX in have know half, happen second in And is the for how to assumption acceleration was a we’ll see migrating fairly plays

in we been thinking low we’ve in higher far, conservative second relatively so clearly somewhat half, we’re it’ll outlook a than seeing acceleration that So our growth planned. be lot but

Matt Cabral

across the wondering portfolio an the from feeling the like where I if guess, guess supply demand you’re sounds think Got look remarks, to are issue constraints then know you just where And XX most have you’re update seeing. be those do I you on finally how us it. prepared they chain it still supply on can that you a when versus And if the from days able were ago? a don’t standpoint? up catch constraints to today you’ll and

Andy Paul

et And obviously Well, capability outstripping Intel, guys, the so to of demand obviously is short-term big parts for and the a goods last the of on the this At industry. and then is supply thing. demand. question, consumer think if the electronics it semiconductor listen all of cetera, industry, the I the different TSMCs the moment, part the depends supply you

shipped specifically, even news could us, more. for have the we good is Now

we good more would results have QX have been as are, could higher supply. as if they So

demand Whether in this have and and that overall make giving like But are or team we is we up we’d supply what half, the we’re ease we got We’ve point, don’t not know. doing? we forecast working hard for get procurement need. of plans supply sure. obviously operations the That’s more. we a people and we are get short-term a So but issue. have to sure not meet out, the the will to certainly, can enough this second to At

it So make to have, those most what is for doing some feature of the semiconductor as products them, the sort high we’re prioritize the controllers in more one. entry committed game level, products easing expect, the we’re you on about is, we that we trying those. sure And we that have still know of off we’re

but the of obviously, to we’re helps, with sort so trying thing, and what that focus And supply. that mix to that’s product

Matt Cabral

Got it. Thank you.

Operator

question from Barclays. Lu is with next Our Please proceed. Mario

Mario Lu

one taking new much one, the for Thanks on I questions. first have products. the very

your in XX well in slides as XX sold units past XX you as mentioned product that months launches. So million the

are to main say gaps how you’re of launches new these existing? are hoping compared to in your And So still fill portfolio? terms important you revenue each in would the what year product

Andy Paul

first off, so Well, company, products are new obviously, the very important.

haven’t how year the those for of the brought products a We segments. at but of products we number brand-new those actually are have think significant refresh versus last you segments, quite about some for there’s when And products we before. lighting looked out, example, of microphones, brand-new didn’t many

want we out. XX we We any looking to faster products ahead bit lines of little do, to rate that refresh refreshing supply growth, we’re that’s probably features. we a refresh we’re certain incremental refreshing of you’ve a keep we yes, every that that There’s incremental curve. that that are for, months. technology products, revenue, or we and use most That’s two-thirds ones we latest consumers than try tech latest inherent products of make have keep amount to like sure But the to that of and introduced the company incremental the make got want TAMs addressing. to the but sure bringing product keep are making our So

as or looking soon product are that as to the latest there’s and greatest So consumers upgrade available. refresh

Mario Lu

just Got And on one you. it. SCUF. Thank then

the peripherals controller believe You Xbox that Series the still currently solely Xbox drivers mentioned that I is outperforming. with isn’t compatible of console. SCUF was one with PlayStation But I the X. controller of PlayStation compatible believe

on you the provide a So that can Playstation any and Thanks. updates segment? controller X of just overview high-level

Andy Paul

Yes. license have probably Microsoft as Xbox. agreement first we with you is, a Well, thing know, for the

other it’s Xbox sales a PSX. a higher In different of have we and between so slightly And split words, PSX.

it So SCUF. the of majority of revenue is the

well over installed of PSX you it’s few If look of units the at XXX million versus PSX. million base, a

by demand that of segment. still, the comes far, majority So from the

working obviously of to we fast as can We’re controller. as out get PSX

We I but released will the haven’t in market that our be, when compared to any early competitors. we’ll suspect pretty be of

Mario Lu

That makes sense. Thank you.

Operator

is question next with from Rod proceed. Please Hall Goldman Sachs. Our

Rod Hall

Thanks beat we Hi, it Yes. implied to revenue calculate conservative, how comes when through pretty the I significantly guys. QX back just of guidance guide, consensus, in just considering the come QX. line for QX seems in because wanted question. to kind the which with

So supply what’s back hurting there performance I that the I’m conservative main I’m and wanted seeing that see also memory just the that for And curious, about secondly, to with margins curious of kind on of that to big if there, you going you whether the what’s or And or just how is issue come performance some quarter? is quantify the Thanks. is memory? reason helping, us margins, in was affecting kind could so are tailing demand signs guidance? and being then off supplies you’re coloring early

Andy Paul

we handle the Yes. Well, let’s part can first question. the if see of

And you helps. a we’re over approached there’s XXXX looked as growth not the suggesting we’ve surge home Fortnite, that due we’ve get are surges obviously, at because general, in to in XXXX, of going XXXX, big shelter years, So growth where XXXX, be various at I that massive gaming, was the to things. think growth. in

that we the there’s So growth a market growth. see our drive when we over waves shoulder, that rather than steady linear look of

we’ve XXXX QX any this And as at any and so result. a through we that’s how we will different. get information We got expected fantastic don’t point have XXXX Clearly, look suggests it. new

year. ourselves suggest obviously, But optimistic, and rest pretty growth there we’re be. to of so massive there’s be the yet ahead And no to the going of could but that in reason get

well, memory, we’ll Michael breakout. the Now ask the second thing to you give on

You want to…

Michael Potter

of – margin gross The in remarks, mentioned I memory XX%. was my was

at tends than sort performance total up. are people year last that how because hit help quite impacting in chip to It So where years, our few become that’s up, last pricing but to memory. in the going when through QX, hasn’t higher like, consideration with of the and but expensive, our starting went year. buy per last have a the end chip – margins much Memory line for system yet, of point does budget it our set that it’s memory a if too tend prices people get starts average

obviously, components quarter our and in for of outgrew So us performance, and our memory but for it than Creator good margin was a Gamer QX. our Peripherals rest

Rod Hall

Okay, thank you.

Andy Paul

from a very happening think more half in share Yes, Corsair to now in starting the dominant. supply U.S. a the are what’s market get high little a standpoint, we Rod, is We over is I market got Well memory.

As you sold probably to a got know, HyperX brand is HP.

for memory. has brand to exit the market that So

So the in channel. some slightly is position a got more fact of this we’ve this just dominant

other shipments to and XX% of are The now rather almost is or IQ-enabled we’re thing up RGB different. memory so our

a not standard. really we’re So

of that some this in And So margins. we’re a at not obviously differential really shipping memory allows commodity lot point.

Rod Hall

Great.

lot. a Thanks Okay.

Operator

from is question proceed. Stifel. with Please Crum next Our Drew

Drew Crum

economies Hey, guys, this business. going to Okay, you Can new in influx you’ve reopen, comment what calls, good been know is morning. noted some some concerns thanks. you an of to that gamers Andy, on I slow. as XQ? in saw there’s the past

or you Just of course is it can in new that on And continued of to has? separately, and suggest is paydown, decision your or M&A M&A the business opportunities that accelerate decelerated? portend Thanks. the based consumers comment debt what to terms on your observations, their velocity does then of

Andy Paul

Yes.

now got of Nezu, done of usual by so So suspects, we’ve terms in having few the look, a research quite et games consumers, the JPR, reports and benefit cetera.

or the playing gamers the people although that paying important are for firstly, world. higher number hardware. around the I a at gamers us, is all we’re for to any think gear. billion And getting that seeing games those in The now continue money of X by numbers at us, that how are what many more started are actually for games they specifically people sort level, so increase,

still fraction people the playing As gear. you small are gaming it’s a of probably who buying games know, are who specialized

of in nowhere gaming fact The no we’re vast saturation, have of that video bought opposite. quite kind the any at majority gear are people playing all. specialist near So games

So shoulder looking we still playing that factor have gear. market, seen more and over what our months. market the a factors gamers gamers untapped really over that’s last very are the buy XX and the we’ve a coming that now exist to It’s more are starting less more that more to of

shelter people if part the PC home gaming of play after not months, a Now up encouraging stops. is, well COVID, gaming to a you’re notion in because PC number but is you’re my sector gaming build into the that just plus planning next few now, actually PCs of lot $X,XXX to buying stepped that or games, in the of have buy most the

plus So most to systems, had and business, we And make, to building very, the that’s for tied in very of truly $X,XXX that’s in seen. healthy QX gaming prebuild we And products growth and ORIGIN to CORSAIR. our the components our people directly record all certainly tied sales PCs. we encouraging gaming have it’s thing we’ve

home. very that’s buying headsets a different the because pair parent somebody they’re for dynamic – kids So a than their of

maybe PC. more PC decided to think especially as and the more playing and move continued gaming we’re high-performance a sector gaming into people from seeing long-term buy growth specialist gaming dedicated get laptop on do I gear, So and either

Michael Potter

of smaller somewhat. two our in we to comes on type quickly an the question And rates. debt stage of capital we’ve slightly out paydown, earlier to those choice, acquisitions company’s acquisitions the to done have debt M&A history our debt last certainly a sufficient from continuing the the on at the reduce and years, I is mean, product-oriented execute higher interest while average cash over still quarter-by-quarter flow, When it for

lower EPS in expense. return immediate an interest it’s higher of via So terms

needs couch So that Andy for. need we team the subject a what benefit. for I say debt I the growth have in to came to business don’t and about cash conditions kind choose anything always the I future to is use further get with acquisition, usually and paydown immediate with larger and capital. of going what

So flow paydown to versus committed making more cash specific we not acquisitions could to see debt paydowns. any we’re debt because

Drew Crum

Okay.

Andy Paul

the time only would the I’d thing got of acquisition. take they take we’re Michael pipeline we is that acquisitions, talking cash smaller pretty – We’ve close. a first, to. said, pay public, a now And of went add acquisitions on flow, smaller good Yes. can bit The to would bigger as out some

So yes, had of sort front not us, massive debt. in – we’re be of down need into a cash staring obviously, wouldn’t we we paying

nothing there’s the horizon. So Yes. on

Drew Crum

guys. Thanks, Okay.

Operator

question from next Our Instructions] [Operator D.A. Forte Thomas is with Davidson. Please proceed.

Thomas Forte

for Great. Thanks taking my question.

one question follow-up. First of all, I and congrats on quarter. have one an excellent

about – you reopening of for kind first the to you gaming. was I the about pace geographically. my seeing I of were were wanted asked anything and talk for question, if demand So curious

pandemic are any a variance U.S., you in still having greater in demand that locations gaming the globe with inoculations. seeing the for regard? that is progressing which versus maybe So perhaps with Are the in the challenge

Andy Paul

I U.S., The of any sure. quite sort seen that’s we seasonal down bit, in think started haven’t Europe of of for so are is ahead think patterns mean mean we to do I Well, little terms I slow slowdown. with of more which normal. now the of towards but a far. it’s the reopening, curve, the sort I to end quarter,

March, lockdown went starting while. early only about on be I there – a when going see I of only stuck out of QX everybody’s people sort people point and still have really thing into activity. mean to that’s home and the sort but really on think and of I so handy front on. effect, restaurants, this in led that’s early last any really that’s we Remember, April, late realize year, were the are to. can in I So It’s the streets, the for data going us where effect understand be to can we people in don’t what’s too comment to at

too lot of changing the really sort yes, in to it’s country far, no So so we’ve But direction. draw results conclusions. a that’s suddenly seen, of early obvious

Thomas Forte

I And ask as long thoughts Epic Excellent. court you, in were high-level battles? a Apple participant wanted on then gaming versus time industry. games to Andy, What the your

Andy Paul

let question That’s that. not but going of out. to a I’m We’ll fight to distributed, Yes. going that on complicated get them comment how

Thomas Forte

All right. Thank you.

Andy Paul

Yes.

Operator

question with is next proceed. Nollen Macquarie. from Our Tim Please

Sean Kumar

This by mentioned on Tim. us that’s area? tell My on Could that you give now? is you at us is XXXX. the question you thanks. Could trends around guys, update, Hey any Sean And Thanks. goal DTC an seeing you’re revenue XX% for DTC. where of

Andy Paul

– I acquisition the thing year companies. direct-to-consumer we’ve the our with has mean business. It’s portfolio north well first last we Well, their over of done across every been we’re mostly XX% Yes. now. Almost

So that’s our we’ve business, down doubled own And then on. really helpful.

of new hired a of And So QX up we pretty quickly. We’ve really keep then pretty to added dedicated cross-sell. lot and to speed infrastructure team coming a year. and last up-sell track customers

happened. yes, what’s So that’s

a So pretty it’s pace. already at good

pretty now we that think that get north And of it’s anyway, before But said. yes, well XX%. set where as target, I we’ve reasonable. probably We’ll so at think, I XXXX, that’s

Sean Kumar

Thanks. it. Got

Operator

proceed. Cowen question final from our Company. is Doug Creutz Please And and with

Doug Creutz

wanted is comment Maybe going? to acquisition it to hoped? thanks. according progressing that’s had Sensei what on had Gamer for Hey, just and now several how months You’ve you know the and

Andy Paul

months out what had it’s a and Yes. team the days. to integrated sort figure of few going early we’re mean, do. to I mean I get still we’ve

change that – to coaching with mentioned Sensei structures is we’re relook doing at pricing previous entire main it sort thing roster Gamer the the all of we’ve calls the think and change how works. and at look I in

structure an Gamer like coaches had and and where open gamers table bought get were coaches consider they on could operating we together where a the more platform when in they So Sensei, prices.

to we’ve will different we move access book sponsored And club the to the the prices. club, going to good we we’re drastically going to got you’d We’re to coaches network lot a a teams coaches, number have. with then you more model, – a see with thing of same reduce influencer really obviously, of our sets at club and health like where slightly health the the lessons health

coaches thing. a lot of got classes and not one-on-one and little upgrade that plans doing upgrade deeply training sort more doing prices the pricing camps and but hopefully, of we’ll We’ve a then just master tiers. we’ll ambitious bit, So set

So quite the it than when of the it different think was will grow we a them. – a into be will we be business get I middle it year, time the

Doug Creutz

Great. Thank you.

Operator

We have I for question-and-answer reached the the end session. like to of Andy back conference closing our over to comments. would turn

Andy Paul

path improve to margins All growing home time better few of growth before, a Well, streaming. gameplay. and forefront Thank this centered the gear in stated help see at the around can and learn by by we’ve revenue play next a massively Obviously, XXXX in we’re e-sports giving and years. how their about strong right. over shelter gaming, can We games look, clear market at to gamers more you.

signs any of different seeing not We’re of shelter trends home world. in as subsides reversing the parts

patents. U.S., than other significant shops, are fact, and we’ve normal noticed where any seasonal already demand bars the drop in in restaurants In most open, not

we committed and to streamers they interest the semiconductors. the best contrary, supply our you to fun ability of of Corsair, Thank and in to in joining the content shortages us continue On gamers due many tools demand, for key worldwide today. remain focused lines give on for doing produce need have We game, product see and to the your thanks exceed play best call it. to their the and

Operator

today’s This does you. Thank conclude conference.

disconnect your lines for time, this your You and thank participation. may you at

Corsair Gaming (CRSR) 4 May 212021 Q1 Earnings call transcript