Corsair Gaming Inc at Stifel Cross Sector Insight Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Drew Crum - Stifel - Analyst : Thanks, Michael. Yeah, maybe I can start broad, high level, or another. You're removed from the pandemic another year in the reopening and there have been several ancillary headwinds that have followed that you alluded to and we'll discuss in more detail as we go through the Q&A. But these seem to be in the rear view mirror, right? Where do you think the industry is in terms of its recovery and has the company's intermediate to longer term outlook changed in any way? And if so, how?

Question: Drew Crum - Stifel - Analyst : Just a piggyback off, a point you made as far as recession risk is concerned, just remind us how Corsair's relevant product categories have performed in past periods of economic weakness and how you feel you're positioned in the event that we go into a recession?

Question: Drew Crum - Stifel - Analyst : Okay, good. So part of the thesis for Corsair and really at the nexus of the company's mission is bringing consumers into the gaming ecosystem and taking them from a casual player to a committed or hardcore player, which as you've discussed in the past yields a higher per capita spend. What can Corsair do or what has the company been doing to attract more individuals of the category, introducing them to Corsair's products and moving them along that continuum, so they eventually do become committed players?

Question: Drew Crum - Stifel - Analyst : So in your prepared remarks, you talked about the dynamics in the peripheral segment, just wanted to dive into that little more detail, just what is behind the company's confidence that this part of the market can recover in the second half?

Question: Drew Crum - Stifel - Analyst : About the console cycle, I know the console is a smaller part of your business, but does that serve as a tailwind?

Question: Drew Crum - Stifel - Analyst : Okay, touch on Europe.

Question: Drew Crum - Stifel - Analyst : So we have about five minutes left. Any questions from the audience if there are any? Okay, I will continue. Then talking about margins, you've given us some guidance for gross and adjusted EBITDA margin for 2023, talk about some of the puts and takes there and longer term with the notional model supports from a margin perspective.

Question: Drew Crum - Stifel - Analyst : Okay. The company exited 1Q with a little more than $180 million of cash on the balance sheet, your net debt position was just 47 million, which I think is the lowest since you've been a public company. At this stage, how would you prioritize usage of cash?

Question: Drew Crum - Stifel - Analyst : And as it relates to M&A, there's been some movement or news flow recently in the handheld gaming category. With the release of the Stream Deck, there's a new product from Asus and Sony's announcement of Project Q. Is that an area or category Corsair plans to participate in or could in some way?

Question: Drew Crum - Stifel - Analyst : Well, less than a minute, can I get your 30 second take on generative AI and its any potential impact for Corsair?

Question: Drew Crum - Stifel - Analyst : Okay. All right. We'll cut it off there. Thanks, everyone, for joining us. Thank you, Michael.