CRSR - Earnings call transcript Q4 2021

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Operator

Good afternoon, and welcome to the Corsair Gaming's Fourth Quarter 2021 Earnings Conference Call.

As a reminder, today's call is being recorded, and your participation implies consent to such recording. 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 now like to turn the call over to Mr. Vice Finance Corsair's Investor Veen, van President and of Relations. Ronald sir, please you, begin. Thank

Ronald van Veen

afternoon, you fourth Thank for and you. everyone, Good thank XX, results call December Corsair's conference for for ending the quarter XXXX. financial us joining

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

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

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

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

Andy Paul

received we continue our And quarter environment. in of the we Investor generally high 'XX to for growth report by the to we our a in guidance, outside ever quarter, based at supply end our received today, the that in feedback positive a this the to to million call we at and record our It to was We at of the of record mostly opened in back and QX and our constrained Thank came second related of conditions, we world over quite profit for earnings entertainment company. post-pandemic public of results revenues shelter environment $X.X PCs in Investor as for the in Day Michael you, at We're million which fourth XXXX XXXX relaxed. welcome a a for the questions through be as $XXX.X challenging greater and for Gross the XX.X% billion Day the a be Ronald, $XXX.X more graphics pleased accomplished short-term to address guidelines high feedback. address Throughout chain call. first the detail half continues up and and XXXX. business been bit XXXX, our that able some towards performance financial XXXX will walk resulting customers, have later of were started on market cards. million year. has self-build gaming at $XXX.X move time. home believe continuing to shortage our from a And and weren't

strategy, of three not pillars I'll Investor repeat you've so. moment our now. now recording, which do take listen you encourage our quickly If to recap to chance We outlined the had day. I'll to yet I to some a highlights a of the growth of

video more And interaction norm. continues want start buy competitive faster and to the quickly. gaming exploding the much become peripherals. to revenue software becomes creative is grow gaming to as Firstly, better is and growing PCs gaming market and The market than consumers creative hardware as

almost the have in high we're PCs. X share every number markets category external in fact was we share components track by gaming in the that to take categories. we from we build in And to sell, highlighted continue that gamers top This allow category. market of almost we sources in peripheral performance Secondly, most one that the market every

Thirdly, development by have the and months, markets, in entered And to monitors creators; organic by large and content both microphones three gainers and we new for for XX last both categories acquisitions. continue that new creators. we enter content and cameras

also by reaching $X.X our showed revenue We internal of goals billion of XXXX.

launched number our we to we've During increased XXXX, and XX. product XXX lines new of products

with supporting grow this currently improve incredible In in system controllers controllers, points simply and and demand examples FPS out CORSAIR customers. price Series in new minutes. quite launch COLLECTIONS initial it and as give new line in we remappable Pro Series, use success the a Intel we most most we these the Reflex our systems gaming shipping we deeper memory personalization $XXX our of we our processes, keyboard. patented And to helps PlayStation introduced was mechanical released which limited The been products of This market kicked are XX% a has latest and Reflex in providing for dramatically how release November, off interface demand to launched website. Series helping SCUF on our line our for the since competitive on our $XXX, gaming Overall, remained and X AMD have of are our kits innovative XX% of DDRX well America. to gaming our adjustable our products, retail product customer December, megahertz. our with players paddles DDRX. with Reflex, web available games. store fun, has Reflex North DDRX several the ranging to channel, business. and CORSAIR in is edge year, and and last The marketing exclusive RGB using early the Flavor are overall KXX sell Both SCUF We gaming was Reflex unique engaged saw is controls for Rush us long-awaited latest stocks as our and the X,XXX currently the The exclusively custom keyboard direct-to-consumer Corsair we components peripherals. the colorful, performance. technology from strong speeds In COLLECTIONS and up are standard to DRAM

market demand consumer fact, levels. close shows, the work-from-home for data XXXX are peripherals In to elevated recent

By held our our semiconductor hold graphics of estimate, cause components. mentioned MSRP releases to new GPUs has normal before, our enthusiasts as pricing XXXX. memory This believe market be for products has cards cards the demand high-end and natural very of this the demand, will driven should I shortages in in gaming on certain returned XXX% to compared PCs caused bubble graphics As gaming building MSRP. supply our short to demand, back caused and components that use which We to XXX% Gaming in to in XX% approximately pent-up a segment was normal XXXX. back of be to Components of

priced revenues lack XXXX were time channel, the growth markets, growth Despite 'XX. and and experienced including retail within supply the spending challenges of by about that X% caused 'XX over availability and of pleased after to the our home logistical we we more healthy our at after extraordinary segments. large closing, XXXX the shelter-at-home network growth in reasonably the were in GPUs lifted, chain the in both operating of lockdowns QX impacting ongoing see gamers QX in in So gaming creator economy, are

secular content which Creative Our and 'XX segment to remain overall the with demonstrating the grew presence longer-term We eSports, the year results and are market. market the positive us year in gaming, growth services provides achieving our fiscal on streaming underlying and pleased share. in XX% in to year-over-year, have creator XXXX, the retained our outlook. in market business confidence hardware We gain momentum remain we continue expanding trends full Peripheral overall and Gaming focused our and and in well-positioned

discuss call plenty financial I'll have your over and share and exciting to to you capture. an of turn Thank results the We growth to now Michael support. potential time continued for market our quarter. for the

Michael Potter

Thanks, Andy. afternoon, good everyone. And

in billion, record increase above XX.X% decrease XXXX for We year-over-year. a it QX, to revenue quarterly as $XXX.X through delivered remains annual numbers XXXX, run please compared of million, bear our level though a pre-pandemic QX an results, million. X.X% and of Net so of of have the me. lot $X.XXX revenue with released we million net was In $XXX.X we of $XXX.X to both QX well year

containers earlier, difficult logistics higher costs our XX to did very to end resulting somewhat elevated results by and X% supply shipping freight increased slight And environment. As to estimate lanes and in for We and effect costs. EBITDA fourth some of our Andy a the quarter continues we easing But the mentioned chain upcoming Ocean of really quarter. we X% much remains during a fourth margin gross and at prices. headwind challenged percent to remain rates quarter. slower whole doubled compared that taking fourth the Logistics the normal half with this better XXXX. times quarter and chain have a many at supply in continue second shipping expect on historical the XXXX over see usual of expect remains than

in of The Gamer of logistics to QX a Peripherals contributed Creator supply from segment well of XX total net The XX.X% fourth above X.X% revenue $XX.X segment and now Gamer QX net of $XXX.X XXXX. in XXXX, of million and and by QX decrease points revenue $XXX.X XXXX increase the net Turning an Peripherals XX.X% our segments. Creator constraints, impacted and quarter provided from million million. revenue, basis during

$XXX.X $XXX.X For the XXXX of GPUs a revenue segment Components above $XXX.X provided year-over-year. shortage from segment and decrease increase a million, X.X% The priced of driven net QX of revenue fourth in and QX million by constraints, record $XXX.X the during supply an Creator well logistics level and was reasonably Gamer and of quarter, Gaming primarily million a year XX% net and million. Peripherals Systems XXXX, of

which of million. revenue products, contributed from Just memory over $XXX.X half this came

logistics by more XXXX, primarily significant revenues. $XXX.X in profit promotional $X,XXX.X net a decreased from a increase was XX.X% well the margin XXX of year in return basis quarter level million points year-over-year. activity. the especially reduced XX.X% due million and increases The to seasonal in logistics was and QX increased the For XXXX over profit by X.X% freight mainly QX normal XXXX $XXX.X decrease costs, to pre-pandemic in activity revenue to ocean and Gross fourth above the Gross QX of decrease is QX million, XXXX XX.X% record million. promotion was costs, of from $XX.X an

gross a due periods, million, and of in increase decrease million same For the segment in an XXXX, driven XX.X% a million, Creator Peripherals Gamer XX.X%, $XX.X basis QX supply to the Gross XX.X%. profit a primarily the revenue of year, promotions. and holiday The was level in costs logistics was and points increased to this and levels. from $XXX.X largely chain profit of was XXX in $XX.X return record from by costs margin a XX.X% rebate logistics of decrease normal decrease mentioned pre-pandemic and previously supply QX, chain more a

For year, to growth formula of expansion was Gaming the costs. market. Creator be decrease Components overall segment XXXX, a and revenue overall gross million, XX.X%, XXX profit increased was a XX.X% same in decrease profit also and $XXX.X highest logistics total sits costs. as continues million, in The million and due margin a XX.X% gross story an segment and our Gamer QX basis primarily XX.X% of fastest increase from This gross points segment margin great profit. driven in record was Peripherals XXXX, growing of profit and in primarily of a to from largest the a by margin QX decrease the XX.X% for and $XX.X our Systems periods freight Gross $XX in

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

due compared in costs lower due increase personnel and a Systems primarily a air ocean $XX.X and gross to and Fourth increases an X.X% million, in Fourth in decrease to $XXX.X personnel expenses. XXXX. fourth was XXXX expenses bringing as million, $XX.X the QX decrease an in quarter of increase For modest we increasing SG&A development the offset $XX.X related Components on increase an X.X% by for million in segment Gaming in in was in QX related an volumes of XXXX million products revenue compared a X.X%. focus $XX.X by an number XXXX, million to to expenses from $XX.X primarily million, $XX.X quarter million, freight, increase QX of profit were of continue market. year driven driven an the to product $XX.X by expenses outbound quarter to of million of in freight increase Operating income increase

XXXX operating QX $XXX.X XXXX. For million $XX.X income was million in Adjusted quarter of the $XX.X $XXX.X $XX.X from million, decrease XXXX. in the year fourth in this $XX a of of million decrease million, was from million a

quarter a in $XX decrease $XXX.X net share was compared year XXXX. as this million or million XXXX. $XX.X income diluted diluted from $X.XX $XXX.X to per income was or the million, share in Fourth QX of $XX.X per $X.XX For million, of million net

year net million of compared per in $X.XX as to share adjusted income XXXX. was diluted quarter $X.XX share per share million $XX.X diluted per was or adjusted the compared or net $X.XX XXXX. QX For or or income $XXX to million, net diluted income Fourth diluted per $XXX.X $X.XX in $XX million share

diluted year for in $XX For X.X%, Adjusted Adjusted $XXX.X in XXXX. diluted to the QX of was XX% QX XXXX million compared a or $XX.X share was $XXX.X the QX per million, resulting million share basis this compared million to EBITDA million from in or $X.XX in XXXX. a of year, to $XX.X EBITDA margin for $XXX of decrease per points XXX was XXXX. million compared $X.XX EBITDA in $XXX decrease XXXX, adjusted million,

to sheet. balance now Turning our

we As our our in in They off we mitigate by over certainly reflected not in inventory. delays, growth logistics our our increase pay capital and sequential much compared QX put balance, for QX, a last net discussed more in this to we an paid have our our inventory and earnings closer did markets. of order AP to hubs working strategically to as resulting in sales, inventory call, the all but low year, relatively in collected

levels. during return more in QX will As to net funds normal capital working come 'XX,

cash unutilized face end the paid QX, debt ratio was $XXX.X million year. in unrestricted in and at we year, refinanced interest net leverage We which $XX in and off below our and debt, more million revolver expense at over long-term to $X over favorable saving the debt remaining XXXX, of $XX.X value a ended terms the with X. million million million, capacity of $XXX increased year our to in During per

for look cash use recent the such We generate, continue our as to we iDisplay. strategic opportunities investment in to

debt. years growth look opportunities, a The our last marked we such LBO Following to comfortably a leveraged to reduce relatively leveraged of company. to continue our transformation two

our debt reduction. levels growth continue debt. will We reduce investments But over debt to value we are comfortable to with and current expect do

Turning our now to the year. for outlook

For XX%. the growth total $XXX of range operating million in $XXX income XXXX, of adjusted $X.X range $X.X billion, in representing the we and million. approximately X% of to of range to expect million revenue billion in to $XXX Adjusted to the EBITDA million $XXX

for For expecting XXXX, first we are an half. approximately XX%-XX% second half split the revenue and

expect discussed details than average New reasonably thus remain XXXX of Because revenue. available demand Andy supplies earlier. discussed outlook expect modeling We Year calls. we of the the progresses, additional Lunar the greater seasonal to on period GPUs same be in and effect largely XXXX, timing earnings we our year as underlying have pent-up our prior the QX of in as The in holiday the more priced unlocking

them. repeat I'll ease, For

margins higher expense especially to products. the costs, Operating will remain in and increase investment revenue gross pressured continued expect our in support of half the new first to our year. We logistics level by

million Assuming approximately no expense pay The of high our levels, our further win not XXXX million quarter. outlook. fourth pleased to down, interest debt our QX could of This per patent amount debt expect year vary we trial strong is past $X management to in XXX the $X XXXX and shares million at expectations. XX% uncertain cost depending tax following growth XXX financial weighted the any XXXX what million with over quarter appeal to recognition our and diluted of performance for a and shares. subject conclude XX% of metrics rate the we’re To focused of the efficiencies the this with is game profitability if full summarize, of is a effective remain of average We on An timing judge rules to outstanding approximately two in and transformation on revenue end years. and time. achieving approximately

we supply and currently as costs But to experience ongoing progresses. will As continue we chain expect we issues. believe XXXX, circumstances year the freight these to elevated begin ease

our expect that, Q&A? line that or questions. Operator, now for position, you happy reduce which investment increase for we execute call we're M&A to open the open our macroeconomic allow should us further cash criteria to to With please opportunities up these will conditions fulfill on As improve, debt. the

Operator

first Our comes Instructions] Crum question [Operator from with Drew Stifel.

Drew Crum

forecast? are your for then the mentioned of you the have expected Andy, during material your And XQ. in XXXX? expectations some first mentioned in on separately slippage How as to 'XX these you margin launching some And DDRX to business products and experienced date tied pressure gross for highlighted. comment what bit little those you you half. Michael, Can to performed how a are

Just gross for gross you to and you in assuming you're XXXX? where wanted not get the exceed margin to year confirm 'XX or margins that think whether back can improved were

Andy Paul

Okay.

So first question was about DDRX.

we we've expectation, mean, In out of I everything terms of built. sold that

So the about way DDRX move make from will memory to this think gradually is, DDRX. the that so chips fabs semiconductor -- to

I think much to of next they're their XX% higher machines of building a be set sort are buying of there's DDRX capacity the latest the of demand. year, that maybe from the performance, end, our big components XX%, tend X move and higher DDRX because people will to the

everybody, will few they a could to DDRX go if more think spend platform. I dollars the

yes, can out. we get we because high get, a everything consumer an getting we're sold unshared fair in such whatever share now of but market yes, so And have was supply we probably the memory,

that But at percentage. limited PCs still people by and pricing be not reason in on difference higher And little bit from so a they're depends little ASPs huge we that GPUs haven't DDRX overall the DDRX the help because expensive versus and assuming will the building a GPUs a massive are it's us is market on moment for a DDRX. somewhat DDRX the because to for we're as it that of the going remodeled Now is tailwind. the It effect. high-performance

we're as our I widely So of 'XX the effect is to more the half available. big going side have that I that business of second in become think GPUs answers question. that hope

Michael Potter

of on a year-over-year we improvement In look you margin, your range there if gave a is the EBITDA, gross at if use expected. terms midpoint for slight you question ranges

of towards we to going improvements weighted some more be they're year-over-year, to gross So half small there margin expect year. be do back in the and the

Operator

Our Lu Barclays. next with comes question Mario from

Mario Lu

first more little the bit high X a Yes, level. is

Analyst of couple goal the of the said mentioned Day, ago, billion you terms a In XXXX. weeks long-term guys revenue by of you $X.X

So think implies a that CAGR yes, XXXX. to XX% starting I close growth in

just if you number if of So that that goal? in terms drivers in -- or color breakout that curious, that are a needed provide of includes kind like any year could achieve embedded does more to that

Andy Paul

that clearly, I include I chain was for purposes shelter mean, the is Day, electronics reason And really difficult 'XX say would the from 'XX, we year-to-year now consumer showed it's at what we bulge to Investor quarters a year that when in supply at you is spending. do where home. a so the of And that of think X that the Well, in I stressed. the home. were remember that's consumer there QX do you the end half you if spending QX very and through those see caused that, comparisons, there shelter analysis,

was half of the Now first in but -- still of remember out at shelter cycle 'XX home. that

in that you're CAGR see start that the growth onwards. we're 'XX 'XX going in matches see talking to that We not should about. and So to the

of market that that the sort market and at that we you gamers that will the see that of increases So you at sort pandemic, spend that's thing. you growth in was thing, side our sort look showed look from plus and what share increase of result of the growth you the and when will

the So expectation. you hopefully, that gives

of the card 'XX, Now mining going all We've which to profitable to that's the there's got mining, now. well. right? of to much I going to impossible those in it's more middle is do of Intel sometime reasons are as should a cards I think year. lot be available in much fact, be being of think, about be the optimistic factors result of to way 'XX, a during theory done got more probably less graphics release second the half going graphics or And affordable We've in

again. to lot probably think we So late for spur been demand some waiting be to expect priced -- a to I'd as a there 'XX, reasonable graphic people building going that's to 'XX to of card mid- have late start

Mario Lu

Great. you're are your a a the That's the updates is on X% maybe Origin then Is versus you products a expectations? strategy how margin of seeing gross trending DXC. implementing helpful. I revenue that Andy. now guess, and to DXC are improvement. believe of that any higher XX% in up there And it's there guys any outside And other versus terms follow-up cuff year Thanks, I ago. kind percentage of to of that

Andy Paul

I the think Yes. we store now of it. One about we that products, as think strategically web think Well, the web we're and as the well having we do strategy new cycle release into store is about X team a things.

we So say, microphone microphone plus might the in launch, channel and shop for might example, web store, then a example. populous mount, a our for launch in we let's

lots differentiating got we've ways now. of So of

days, most and most you looking easy people opportunities we're be ORIGIN, that, tend The you start these the new do with so store and smaller your to SCUF own yes, just to that direct-to-consumer web mentioned, at M&A company, second because of go as thing Shopify with it's in a that. is are start if that

memory to are will X continue in both base of components mice, of that changing and keyboards Obviously, So we're business drive things our up. too not things happen and those much. going to

channel trying the channel. drive in differentiate And it. stay we're associated of product from higher-margin at also costs aggressively moment, of some to to has consumer business, most the to trying The more the we is the just that a We're to offerings. it business but not clearly between direct customers So expect the to with store.

Operator

Instructions]. [Operator

with Nollen from Macquarie. Tim comes question next Our

Tim Nollen

QX, bit on I you a the In wonder question. seasonality more that out. if called I push could

assess Looking came given COVID. what for to back, seasonality you kind us difficult during little of your it's impacts that public a are

and throughout big little this supply got bit difficult It's ease. I've had second supply chain the the understand you we X kind Could the the how you question, to heard willing give just in You've should run-up. phasing color and of of just us? chain quarters half, revenues the year. -- a And hopefully, you to you've margins now be could the maybe the issues please us, therefore whatever you're give

Andy Paul

Yes.

a previous difficult want the X this from tailwinds So half we've all shelter first half the and is graphics a last from first at the periods start because really, of the growth to terms for half we period. or what of MSRP year months, And year was in just don't XX Clearly, year that's had because last you've chronic second guiding home shortages than can of on increases cards. more we lot heard to discussions quarterly. as now, But think the say I happen there's going in that,

that So the stops building through really systems. gaming

would the of that really year the looking internal is before, pre-pandemic, out as anything with last So gauge other how we're is said, not what seasonal But and match with focused we this and XXXX news. else to is to historical But And at that, I good not like the answer -- now to surge to think year I going XXXX. try to on year, post nothing -- more are. market when doing firstly, this norms. home is length do. long-term we're we're be shelter home, and of are to our expectations with the In do the comparing at step people will I effects say that words, that's for year going 'XX

and are anywhere here around therefore. Now restaurants everything, bars, open

that's going a the bigger first here say Yes. to half the cards is of we're in we also easing first to but there's expect add the I down. going to that freight expect. that graphics yes, would already, headwind second assuming much that that So of Mike we hasn't is of the than But it. because start be there I'm on internally, part costs message happened surprised that? from and the anything

Michael Potter

first say I during And about here pandemic of most now, in mean it half, half I've XX% we time. to over X second been was little and total. expect bit years tried XX% the a

help QX timing Lunar New on of than a bit would but the on is I So to Not conversely this all earlier, Year XX%. And be QX down because sure timing to down a seasonality. from but and on be like sorry less little tends impact much and back play team time, what's QX. a bit bit QX with tends seen QX be a QX from then normal tends the little QX up. less I going more a a have little the asked at QX through to time haven't that tends And did on holidays. than yet. and then with normal QX When but it the but little was more the how go impact to quarter then up get go normal logistics bigger I in, impact that typical, environment that's we're -- based and my question there to

Tim Nollen

I very quarters, actually actually, and is what's prior in numbers go was because was last it That's Could to costs. couple about the information I ask back which have, rebate years. helpful to to Okay. determine please, given other just happened of we X trying promotion given the a hard pattern question

in related I this that much those to or general And is that How inflation expect market just front is curious product XXXX? mentioned launches? to up. going choosing on just cost You what how much more? guess can we

Andy Paul

in to I any happened to mean we'd because do Yes, early the 'XX it promotions I think sold out surge with 'XX, mean XXXX. one 'XX, sort was it expect so expect through need everything that normal I pretty of more I mean, retail described, saw compared of I'd I out. July completely to immediately. no -- back the to April, 'XX home was normal at I right, started get to what think when be QX there sold levels. every shelter retailer’s period, was we our much April of in

Tim Nollen

More like XXXX.

Okay.

Andy Paul

of terms yes. In percentage,

Operator

comes question next Our from Cowen. with Doug Creutz

Douglas Creutz

year Gamer that's other whether how Sensei, according It's you expectations? it's a wondering proceeding, bit has been a sort how maybe just interest experience gamer service type of your guys acquisitions? to in And over your since acquired your of affected sort going

Andy Paul

Yes.

just an important direct-to-consumer of actually stone. we've expecting we're to sort interact terms the gamers on of how in pretty And stepping year, space bullish as environment of the going been initiatives, we is [promotive] whole what's our and get and are community still through this not as in and on sort around a sort how do with that how more the we we lessons them. I'd but So the thing. engage with of with gaming engaged gone changes certainly say few there's services,

level, still we at than in process, went work the So think I different top it. very the bullish a probably initially we'd little a in we space. say But still into thought

Operator

Rod Goldman Our comes next question with Sachs. Hall from

Roderick Hall

first middle of that then does to the normal I've that follow-up to promotional activity we whatever take mean question the there. the the your gross how curious comes think QX? a margins level what in were close does would be And and activity, the you in of normal that. And My back Andy, increase to I just the and for, first back promotional I'm the new is, until got guess, to year part when year?

Andy Paul

QX thinking… think levels. pretty I I'm at No, was much normal Yes.

Michael Potter

heart because at was The prior comparing and went activity that to through was XXXX promotion I the the in it is year I with period. talked almost the about no section where that of was shelter home because there reason why

last the 'XX more 'XX, of of so in I've promotional environment, end like characterized 'XX a type of of sort prior think like of on. year the year and normal I

So and of we was anything the a ordinary, see didn't compared wild out quarter, prior before, year but it lot more. the certainly to

Roderick Hall

up were And question, margins of 'XX, to guys saying helpful. they That's 'XX. Okay. are you kind which then is in XX% mathematically my second leads gross that which in

guess you that at with pointed yet but activity. in them normal I puts So just 'XX, promotional XX% XX%

if us wondering XX%. XX%, to hard there's that that can any you happens. to even way how So And help get to was could it back bridge that you kind seems guys back somehow above understand I or -- of

Michael Potter

main X the And elements, Rod.

around the the costs of entanglement there. and is first logistics the easing The

certainly us So help. pretty that will a give big

higher higher be shift the going gross second to margin products. just our of is it a They have of a percentage The higher part continued rate. to growth

So shows that total over time, margins. us the

due can So margins. at to between overcome of we 'XX was high a Obviously, longer when end we the problem shelter with XXXX, the margins beginning difficult see at at of them, quite to and home. the don't we're up. confident increase very the the relatively two term, margins low But promotional activity very of it's back getting

Roderick Hall

Right.

these costs So It just and sounds kind where of will far between the Michael, help put feel of logistics though, you back to lines some XX%, kind of like you're I'm not is thinking? excess removal here, if that those to of like above right? reading

Michael Potter

'XX we're and was of 'XX at I saying of the you year-over-year, mean would quite first stronger. if be strong, half second that half look

think recovering growing our bigger are OpEx, EBITDA operating So and numbers here probably and we'll our ranges we're you revenue income the in -- where are on the not bringing we levels look the we're as EBITDA. based and we projecting up. if some said, at But certainly start around

a see margin should there'll You year-over-year be just increase. slight

Andy Paul

going the Yes. related were out of a to to we months the a few of things China, is, in really and down sources shut Vietnam back had to COVID, last add few I’d factories in tariffs. for revert while some affecting started then on have our we then which did

unusual costs and because we did were some of generally that, behind flowing us through that's that now. have So

done freight have same next essentially And be but the did it ceasing down. effect won't it's COVID, we're before. to So with year as surely, costs planning -- being on drop will

is graphics for The dollars other our But are that a people PC PC thing building I the is sell keep just is would that. products biggest talking that to we $X,XXX, terms PCs. highest of the build who and where gamer increase cards end $X,XXX wants in say in about place

you'd And in graphics $X,XXX builds so a the be where in talking biggest about increase that's holdback sort really because is the of card.

being normally the think some margin. I that highest high-end So that back would our on held of products yield we're

change -- during that year. the So should that's

Ronald van Veen

he and questions scheduled can Operator? more else quite take sure or there call any operator hear there. our for we If the what everybody may have I'm not, back not I'll to Hopefully comes if Operator, happened see wait X Yes. during are questions? on. our us. another time. minute after call

Andy Paul

All right. operator the think has Well, I gone, well.

Ronald van Veen

Oh, he ahead. is not. No, no go

Andy Paul

Yes.

attending. you next the everybody, analysts again see in look, for with thanks, time. we'll up meetings, So our follow We'll and usual

Operator

Goodbye.

Corsair Gaming (CRSR) 9 Feb 222021 Q4 Earnings call transcript