Corsair Gaming, Inc. (NASDAQ:CRSR) Q3 2023 Earnings Call Transcript

Teleprompter was sold out the first three days. We launched a SCUF controller, especially the PC enthusiast that was sold out in the first day. So, I think we typically get about one new product out a week on average. And we’d expect to do the same or more next year. And but we’ve had a lot of products recently that have just really hit the marks, or have been in new segments, like the PC controller and the teleprompter. Obviously, those are not refreshes. Those are brand new segments.

Aaron Lee: Got you. Perfect. That’s helpful. And then on the Elgato Marketplace, which you’ve recently launched, and I know it’s only been a month, but anything you can share on the early days on the uptake and the usage of it and how you plan to ramp this up in 2024?

Andy Paul: Yes, well, it’s been a couple of years bringing this thing to market. It is quite complicated. But did – we were happy to launch with over 240 third-party providers or creators. There’s a huge number of apps. It is, as you say, very early days. The interesting thing we’ve seen so far is that the ASP, or the, spend per person or per order is pretty high. So, we’ve got people spending $100 on plug-ins, and that the ASP is not on average, but up to $100. So that was higher than we thought. What we don’t know yet is how to model, the amount of dollars that the average Stream Deck user is going to pay per year. We don’t know whether that’s $5 or $100 or $1,000. I mean we just don’t know what that is yet until we get some more data.

So, we’ll keep you appraised as we go through Q4. I think by early next year, we’ll have a good sense of what the model looks like in terms of how many people that own Stream Decks are jumping on this marketplace, and also how the marketplace affects the sell-through of Stream Deck hardware.

Aaron Lee: Okay. Perfect. Thanks. Looking forward to it.

Operator: Our next question will come from Drew Crum with Stifel. You may now go ahead.

Unidentified Analyst: Hi. It’s David on for Drew. Thanks for the question. Can you provide the puts and takes on the implied 4Q revenue outlook?

Andy Paul: You mean what does the top end of the range means compared to the bottom end of the range in terms of market conditions? Is that?

Unidentified Analyst: Yes.

Andy Paul: Yes. Well, I think it’s all down to how strong the – how strong the holiday season is. As we get closer to it, these days, the holiday season in Black Friday is not just on Friday, people start promoting earlier. So, we’ll get to see that. And as people get more and more confident in spending, then they’re going to load up more. But I think at the moment, we’re pretty comfortable with what we’re seeing and pretty comfortable with the range we’ve given out.

Unidentified Analyst: Okay. And you touched on this a little bit, but I was hoping to get a little bit more color or detail around the Prime Day. What did you learn in terms of the health of the consumer or consumer demand coming out of Prime Day?

Andy Paul: Well, it’s a bit complicated, right? I think the net of it is that the spending this year is similar to last year. Unfortunately, what’s starting to happen with some of these holidays, now we get so many of them, is that you get people stop buying a few days before. Then you get a spike, and then no one buys the day after. So you end up with almost a neutral number. But the key thing is that we can see the interest level for consumers. And that seems to be on par with last year.