•

Net revenue was $1,904.1 million an increase of 11.8% year-over-year. Gamer and creator peripherals segment net revenue was $647.2 million, an increase of 20.0% year-over-year. Gaming components and systems segment net revenue was $1,256.9 million, an increase of 8.1% year-over-year.

•

Net income was $101.0 million, or $1.01 per diluted share, compared to net income of $103.2 million in the same period last year, or $1.14 per diluted share.

•

Adjusted net income was $144.9 million, or $1.45 per diluted share, compared to adjusted net income of $145.0 million in the same period last year, or $1.60 per diluted share.

•

Adjusted EBITDA was $199.2 million, compared to adjusted EBITDA of $213.0 million in the same period last year.

•

Net revenue was $510.6 million, well above pre-pandemic fourth quarter levels and within 8.2% of Q4’20’s record $556.3 million in which net revenues increased by 70.4%.

•

Net income was $24.7 million, or $0.25 per diluted share, compared to net income of $43.0 million, or $0.43 per diluted share, in the same period last year.

•

Adjusted net income was $34.7 million, or $0.35 per diluted share, compared to adjusted net income of $53.0 million, or $0.53 per diluted share, in the same period last year.

•

Adjusted EBITDA was $39.5 million, compared to adjusted EBITDA of $72.5 million in the same period last year.

•

Net revenue to be in the range of $1.9 billion to $2.1 billion.

•

Adjusted operating income to be in the range of $195 million to $215 million.

•

Adjusted EBITDA to be in the range of $205 million to $225 million.

•

On January 20, 2022, Corsair hosted its 2022 Virtual Investor Day. Corsair included a discussion on the significant potential white space market opportunity in gaming hardware, provided an in depth review of its components business, and provided an explanation as to why Elgato solutions is driving the streaming and content creation market. Corsair also introduced an estimated $3.5 billion net revenue target by fiscal 2026.

•

On January 5, 2022, Corsair announced that it acquired a 51% stake in iDisplay Technology (“iDisplay”), a leader in electronic development and design specializing in display technology. Taiwan-based iDisplay, founded in 1998, is a developer of consumer electronics, smart home controls, and streaming consoles. Its expertise has earned iDisplay a reputation as an innovator of small-form-factor displays, and it has developed a broad patent portfolio supporting its technology.

•

On January 5, 2022, Corsair announced the appointment of Thi La and Sarah Mears Kim to its Board of Directors, effective as of December 29, 2021.

•

On January 4, 2022, Corsair announced the new CORSAIR ONE i300 range of compact desktop PCs, the latest in the award-winning CORSAIR ONE lineup. This powerhouse system takes advantage of the latest 12th Gen Intel® Core™ processors, debuting with a formidable Intel Core i9-12900K. Replete with an assortment of premium CORSAIR components – including VENGEANCE DDR5 memory – in an unbelievably small form-factor, the CORSAIR ONE i300 is the premier choice for PC gaming, creative applications, and more. The CORSAIR ONE i300 is a fully-loaded gaming PC with a unique, compact form-factor that takes up less desk space than a laptop. Within its 12-liter frame lies the latest-generation Core i9 processor from Intel, ready to deliver extraordinary speed and remarkable gaming performance – more than 20% faster than previous generations.

•

On December 7, 2021, Corsair, under its SCUF Gaming brand, introduced SCUF Reflex, Reflex Pro, and an inaugural first-person shooter model, Reflex FPS. All three models of the Reflex controller are designed specifically for PlayStation 5 (PS5). SCUF Reflex encompasses all the groundbreaking features synonymous with SCUF excellence, delivering a heightened experience created specifically with PS5 gamers in mind. Reflex, Reflex Pro, and Reflex FPS include the patented paddle control system that helped make SCUF controllers the premier choice of competitive players everywhere – with an evolved controller design to improve performance for PlayStation gamers.

•

On November 23, 2021, Corsair announced the first shipments to customers of its new range of ORIGIN NEURON, MILLENNIUM, GENESIS, M-Class, and L-Class desktops, putting today’s most powerful DDR5-equipped PCs in the hands of customers weeks ahead of the competition. Ideally placed within the CORSAIR group to access the latest components and technology, ORIGIN PC has benefitted from early access to high-performance CORSAIR DDR5 memory and the latest Intel Z690-chipset motherboards through close cooperation with industry partners such as Asus and MSI.

•

On November 9, 2021, Corsair announced a colorful new lineup of its CORSAIR K65 RGB MINI 60% mechanical gaming keyboard: the Flavor Rush Series. These limited-edition keyboards, available exclusively from the CORSAIR webstore in the United States, are decked-out in four unique color schemes and kick off the new CORSAIR COLLECTIONS product line – limited-release gaming gear with unique color combinations and designs for personalizing your setup or building the ultimate PC gaming collection.

•

Adjusted operating income, non-GAAP, is determined by adding back to GAAP operating income the acquisition accounting impact related to recognizing acquired inventory at fair value, change in fair value of contingent consideration for business acquisitions, non-cash discontinued licenses inventory, non-cash long-lived asset impairment, stock-based compensation, intangible asset amortization, certain acquisition-related and integration-related expenses, restructuring costs, non-deferred costs associated with the IPO, secondary offering costs, and debt modification costs.

•

Adjusted net income, non-GAAP, is determined by adding back to GAAP net income the acquisition accounting impact related to recognizing acquired inventory at fair value, change in fair value of contingent consideration for business acquisitions, non-cash discontinued licenses inventory, non-cash long-lived asset impairment, stock-based compensation, intangible asset amortization, certain acquisition-related and integration-related expenses, restructuring costs, non-deferred costs associated with the IPO, secondary offering costs, debt modification costs, loss on extinguishment of debt, and the related tax effects of each of these adjustments.

•

Adjusted net income per diluted share, non-GAAP, is determined by dividing adjusted net income, non-GAAP by the respective weighted average shares outstanding, inclusive of the impact of other dilutive securities.

•

Adjusted EBITDA is determined by adding back to GAAP net income the acquisition accounting impact related to recognizing acquired inventory at fair value, change in fair value of contingent consideration for business acquisitions, non-cash discontinued licenses inventory, non-cash long-lived asset impairment, stock-based compensation, certain acquisition-related and integration-related expenses, restructuring costs, non-deferred costs associated with the IPO, secondary offering costs, debt modification costs, intangible asset amortization, depreciation and amortization, interest expense (including loss on extinguishment of debt) and tax expense.

Three Months Ended

December 31,

Year Ended

December 31,

2021

2020

2021

2020

Net revenue

$

510,622

$

556,339

$

1,904,060

$

1,702,367

Cost of revenue

388,809

402,540

1,390,206

1,236,938

Gross profit

121,813

153,799

513,854

465,429

Operating expenses:

Sales, general and administrative

81,538

81,127

315,672

257,004

Product development

15,138

13,779

60,288

50,064

Total operating expenses

96,676

94,906

375,960

307,068

Operating income

25,137

58,893

137,894

158,361

Other (expense) income:

Interest expense

(1,017

)

(6,021

)

(17,673

)

(35,137

)

Other expense, net

(1,659

)

(1,153

)

(5,661

)

(1,182

)

Total other expense, net

(2,676

)

(7,174

)

(23,334

)

(36,319

)

Income before income taxes

22,461

51,719

114,560

122,042

Income tax (expense) benefit

2,254

(8,676

)

(13,600

)

(18,825

)

Net income

$

24,715

$

43,043

$

100,960

$

103,217

Net income per share:

Basic

$

0.26

$

0.47

$

1.08

$

1.20

Diluted

$

0.25

$

0.43

$

1.01

$

1.14

Weighted-average shares used to compute net income per share

Basic

94,345

91,923

93,260

86,256

Diluted

99,657

99,771

100,004

90,577

Three Months Ended

December 31,

Year Ended

December 31,

2021

2020

2021

2020

Net revenue:

Gamer and Creator Peripherals

$

176,873

$

191,835

$

647,202

$

539,366

Gaming Components and Systems

333,749

364,504

1,256,858

1,163,001

Total Net Revenue

$

510,622

$

556,339

$

1,904,060

$

1,702,367

Gross Profit:

Gamer and Creator Peripherals

$

52,840

$

68,856

$

224,920

$

189,742

Gaming Components and Systems

68,973

84,943

288,934

275,687

        Total Gross Profit

$

121,813

$

153,799

$

513,854

$

465,429

Gross Margin:

Gamer and Creator Peripherals

29.9

%

35.9

%

34.8

%

35.2

%

Gaming Components and Systems

20.7

%

23.3

%

23.0

%

23.7

%

Total Gross Margin

23.9

%

27.6

%

27.0

%

27.3

%

December 31,

2021

December 31,

2020

Assets

Current assets:

Cash and restricted cash

$

65,149

$

133,338

Accounts receivable, net

291,287

293,629

Inventories

298,315

226,007

Prepaid expenses and other current assets

51,024

37,997

Total current assets

705,775

690,971

Restricted cash, noncurrent

231

230

Property and equipment, net

16,819

16,475

Goodwill

317,054

312,760

Intangible assets, net

225,709

259,317

Other assets

71,808

34,362

TOTAL ASSETS

$

1,337,396

$

1,314,115

Liabilities and Stockholders’ Equity

Current liabilities:

Debt maturing within one year

$

4,753

$

-

Accounts payable

236,120

299,636

Other liabilities and accrued expenses

205,874

205,745

Total current liabilities

446,747

505,381

Long-term debt

242,898

321,393

Deferred tax liabilities

25,700

29,752

Other liabilities, noncurrent

53,871

20,199

TOTAL LIABILITIES

769,216

876,725

Stockholders’ Equity:

Common stock and additional paid-in capital

470,373

438,676

Retained earnings (accumulated deficit)

98,147

(2,813

)

Accumulated other comprehensive income (loss)

(340

)

1,527

Total Stockholders’ Equity

568,180

437,390

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,337,396

$

1,314,115

Three Months Ended

December 31,

Year Ended

December 31,

2021

2020

2021

2020

Cash flows from operating activities:

Net income

$

24,715

$

43,043

100,960

$

103,217

Adjustments to reconcile net income to net cash provided by operating activities:

Stock-based compensation

3,579

1,510

17,235

5,796

Depreciation

2,719

2,613

10,300

9,318

Amortization of intangible assets

8,676

8,572

34,794

33,916

Debt issuance costs amortization

86

560

1,458

2,550

Loss on debt extinguishment

—

858

4,868

4,114

Deferred income taxes

(5,417

)

(584

)

(11,962

)

(7,476

)

Other

1,642

1,524

3,291

2,594

Changes in operating assets and liabilities:

Accounts receivable

(38,112

)

(33,425

)

444

(91,492

)

Inventories

31,580

(19,200

)

(71,316

)

(80,086

)

Prepaid expenses and other assets

(5,387

)

12,478

(13,177

)

(7,953

)

Accounts payable

(11,880

)

23,750

(63,722

)

116,522

Other liabilities and accrued expenses

(17,081

)

26,930

7,019

77,933

Net cash provided by (used in) operating activities

(4,880

)

68,629

20,192

168,953

Cash flows from investing activities:

Acquisition of businesses, net of cash acquired

(3,162

)

(455

)

(4,846

)

(1,291

)

Payment of deferred and contingent consideration

(43

)

—

(4,721

)

—

Purchase of property and equipment

(3,297

)

(3,917

)

(10,974

)

(8,989

)

Net cash used in investing activities

(6,502

)

(4,372

)

(20,541

)

(10,280

)

Cash flows from financing activities:

Proceeds from issuance of debt, net

—

—

248,513

—

Repayment of debt

(1,250

)

(50,000

)

(328,188

)

(190,394

)

Payment of debt issuance costs

(168

)

—

(204

)

(194

)

Borrowings from line of credit

63,500

—

63,500

—

Repayments of line of credit

(63,500

)

—

(63,500

)

—

Proceeds from initial public offering, net of underwriting discounts and commissions

—

—

—

118,575

Payment of other offering costs

—

(2,873

)

—

(8,455

)

Proceeds from issuance of shares through employee equity incentive plans

3,379

113

14,872

1,337

Payment of taxes related to net share settlement of equity awards

(182

)

—

(397

)

—

Net cash provided by (used in) financing activities

1,779

(52,760

)

(65,404

)

(79,131

)

Effect of exchange rate changes on cash

(1,346

)

1,930

(2,435

)

2,079

Net increase (decrease) in cash and restricted cash

(10,949

)

13,427

(68,188

)

81,621

Cash and restricted cash at the beginning of the period

76,329

120,141

133,568

51,947

Cash and restricted cash at the end of the period

$

65,380

$

133,568

$

65,380

$

133,568

Three Months Ended

December 31,

Year Ended

December 31,

2021

2020

2021

2020

Operating Income - GAAP

$

25,137

$

58,893

$

137,894

$

158,361

Acquisition accounting impact related to recognizing acquired

   inventory at fair value

-

-

-

394

Change in fair value of contingent consideration for business

   acquisition

(3

)

954

(345

)

954

Non-cash discontinued licenses inventory

-

-

1,003

-

Non-cash long-lived asset impairment

853

-

853

-

Stock-based compensation

3,579

1,510

17,235

5,796

Intangible asset amortization

8,676

8,572

34,794

33,916

Acquisition-related and integration-related costs

216

680

1,343

3,156

Restructuring costs

10

-

709

-

Non-deferred IPO and secondary offering costs

-

428

1,031

1,633

Debt modification costs

-

-

-

623

Adjusted Operating Income - Non-GAAP

$

38,468

$

71,037

$

194,517

$

204,833

As a % of net revenue - GAAP

4.9

%

10.6

%

7.2

%

9.3

%

As a % of net revenue - Non-GAAP

7.5

%

12.8

%

10.2

%

12.0

%

Three Months Ended

December 31,

Year Ended

December 31,

2021

2020

2021

2020

Net Income - GAAP

$

24,715

$

43,043

$

100,960

$

103,217

Acquisition accounting impact related to recognizing acquired

   inventory at fair value

-

-

-

394

Change in fair value of contingent consideration for business

   acquisition

(3

)

954

(345

)

954

Non-cash discontinued licenses inventory

-

-

1,003

-

Non-cash long-lived asset impairment

853

-

853

-

Stock-based compensation

3,579

1,510

17,235

5,796

Intangible asset amortization

8,676

8,572

34,794

33,916

Acquisition-related and integration-related costs

216

680

1,343

3,156

Restructuring costs

10

-

709

-

Non-deferred IPO and secondary offering costs

-

428

1,031

1,633

Debt modification costs

-

-

-

623

Loss on debt extinguishment

-

858

4,904

4,114

Non-GAAP income tax adjustment

(3,330

)

(3,032

)

(17,582

)

(8,850

)

Adjusted Net Income - Non-GAAP

$

34,716

$

53,013

$

144,905

$

144,953

Diluted Net income per share:

GAAP

$

0.25

$

0.43

$

1.01

$

1.14

Adjusted, Non-GAAP

$

0.35

$

0.53

$

1.45

$

1.60

Shares used to compute diluted net income per share:

GAAP

99,657

99,771

100,004

90,577

Adjusted, Non-GAAP

99,657

99,771

100,004

90,577

Three Months Ended

December 31,

Year Ended

December 31,

2021

2020

2021

2020

Net Income - GAAP

$

24,715

$

43,043

$

100,960

$

103,217

Acquisition accounting impact related to recognizing acquired inventory at fair value

-

-

-

394

Change in fair value of contingent consideration for business acquisition

(3

)

954

(345

)

954

Non-cash discontinued licenses inventory

-

-

1,003

-

Non-cash long-lived asset impairment

853

-

853

-

Stock-based compensation

3,579

1,510

17,235

5,796

Acquisition-related and integration-related costs

216

680

1,343

3,156

Restructuring costs

10

-

709

-

Non-deferred IPO and secondary offering costs

-

428

1,031

1,633

Debt modification costs

-

-

-

623

Intangible asset amortization

8,676

8,572

34,794

33,916

Depreciation

2,719

2,613

10,300

9,318

Interest expense (includes loss on debt extinguishment)

1,017

6,021

17,673

35,137

Tax expense (benefit)

(2,254

)

8,676

13,600

18,825

Adjusted EBITDA - Non-GAAP

$

39,528

$

72,497

$

199,156

$

212,969

Adjusted EBITDA margin - Non-GAAP

7.7

%

13.0

%

10.5

%

12.5

%