On August 4th, Corsair Gaming released its financial results for the second quarter of its 2022 financial year which ended on June 30th. To put it kindly, it was not a great quarter for Corsair.
Net revenues fell from $380.7 million the previous quarter to $283.9 million. Meanwhile, the company’s operating losses exploded from $2.5 million in Q1 2022 to a whopping $55 million this past quarter.
The gaming segment also felt the sting of Corsair’s disappointing performance. Its gaming and content creator segment fell to $89 million from $134.1 million. On top of that, the gaming components and systems segment saw revenue decline to $194.9 from $246.5 million the prior quarter.
“Headwinds from Q1 persisted through Q2, which is seasonally the lowest quarter for us, with macro-economic headwinds affecting consumer spending on gaming gear, especially in Europe, combined with global inflation, the continued Russia and Ukraine conflict, and high freight costs,” explained Andy Paul, the Chief Executive Officer of Corsair. “This resulted in a buildup of inventory both in our warehouses as well as in the retail channel, thus causing our channel partners to delay ordering while they clear this stock. Despite the challenging environment, we continue to see positive underlying growth trends in the gaming hardware sector, and we see spending levels significantly above pre-pandemic levels… While we are disappointed with the lower results in Q2, we are very pleased to see positive market activity recently, and, with our channel inventory moving back into line during Q2 and Q3 2022, we expect demand for our products to recover well as we finish the year and look forward to an exciting 2023.”
(All information was provided by Business Wire)
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