Q4 2022 Corsair Gaming Inc Earnings Call
Good afternoon, and welcome to the Corsair gaming fourth quarter and full year 2022 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.
Session will follow the formal presentation, if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
With that I will now turn the call over to Robin Van Veen of course, Theres, Vice President Finance and Investor Relations. Thank you Sir you may begin.
Thank you.
The new to everyone and thank you for joining us for <unk> financial results Conference call fourth quarter and full year ended December 31 2022.
On the call today, we have Pershare CEO , Ed <unk> and CFO Mike.
And your Bill review I liked from a full year of fourth quarter 2022, Mike will then review the financials and our outlook.
Then it's time for any questions.
Before we begin allow me to provide a disclaimer regarding forward state.
This call, including the Q&A portion of the call May include forward looking statements related to the expected future results of our company and are therefore.
<unk> statements our actual results may differ materially from our projections due to a number of risks.
Sure.
The risks and uncertainties that forward looking statements are subject to are described in our earnings release and SEC filings.
Note that until our 10-K has been solved these numbers are preliminary.
Today's remarks will also include references to non-GAAP financial measures.
All information, including reconciliation between non-GAAP financial information.
GAAP financial information is provided in the press release, we issued after the market closed today.
With that I'll now turn the call over to Ed.
Thank you Rolf and welcome everyone to our Q4 and full year 2022 earnings call.
We are pleased with our fourth quarter results. Following a challenging 2022 year impacted by the Russian Ukrainian conflict high freight costs and a large channel inventory adjustment.
Q4, 2022 hold yourselves was strong for most of our gaming and streaming categories that we participate in.
Our overall retail sales out from the channel was substantially above pre pandemic 2019 levels, putting us on a positive trajectory for the first half of 'twenty three.
So a number of notable financial highlights from Q4 and 2022.
First the gaming PC component market was even growth.
We benefited from an uptick in demand in the gaming PC market.
By new GPU, and CPU launches from Nvidia AMD and Intel at the end of 2022.
With more expected to rollout in Q1 2023.
As we've noted before gaming Pcs built with these new platforms, Nate Foster memories, such as D. D. L. Five larger power supplies with a thousand well case, though the Ohio and better cooling technology.
These are all product categories that we are expert in and have obtained a dominant market share.
This is a big positive ROI enthusiast customers, who are not able to build.
More powerful gaming Pcs with more features.
Of course, then they could during the pandemic.
There's also been several recent games launched our updated to take full use of the new technology is built into the new Gpus.
Making them more and more exciting to play.
This is another powerful growth catalyst for us is helping to drive higher demand for gaming Pcs as well as peripherals.
Based on our improved results. We believe we continued to gain market share in components used to build gaming Pcs.
We continue to command a premium price because of a steady stream of innovative products and our proven expertise in developing the components gaming customers need for superior performance and quality.
Okay.
Secondly, the peripheral market held up well despite challenging macroeconomic headwinds.
The gaming peripheral market for headsets keyboards, and mice showed good recovery in Q4 and in the U S was within 6% of Q4 'twenty one.
Compared to pre pandemic levels in Q4, 19 U S. It was up by 58% According to NPD.
In Europe , the market was down 10% from last year.
But it was still 26% higher than Q4 19, according to J F K.
All of this indicates that the peripheral bucket.
We're all getting a boost from more people at home buying gaming peripherals during 2020 in 2020 one.
He is now showing that there has been fundamental growth and expansion compared to the pre pandemic period.
And thus we are cautiously optimistic that despite macroeconomic headwinds the bulk of it will continue to grow over the next few years and will likely be boosted by the incremental game is the first time buyers doing shelter at home.
Yeah.
We observed some deep discounting in the gaming peripherals market in Q4.
Since the channel had large amounts of excess inventory from many suppliers.
However, our COO said, we were able to avoid much of this heavy discounting and rebates.
But the whole do you pay with weird already largely cleared all excess inventory.
We had record sales without scuffs controllers boosted by the launch of call of duty modern warfare two.
And we sold out of our new El Gallo streamed eight plus within days of launch.
Overall in our peripheral segment, we were down 33% in revenue from Q4 last year. However, approximately one third of its drop came from channel inventory adjustments.
Well I'll channel inventory situation is close to being a target now we.
We see many signs that there is still excess inventory in the channel from other suppliers and we think that this will tell you one or two quarters to be resolved.
At that point, we think we will start to gain market share again because of less discounting and also from some exciting new products that we have in the pipeline.
In addition, we see a very nice list of exciting new games that will be released in 2023, which we believe will drive growth into the gaming peripherals market.
We're also excited to see all stream back products continued to get used in many new applications as well as pure content creation.
Thirdly margins improve.
We are very pleased that margins bounce back in Q4.
As expected freight rates have continued to decline and the excess channel inventory is mostly being clear.
As we've been discussing in recent earnings calls this was causing a headwind on both sales and margins and we're happy to see the improvement.
In addition, we've made great progress in bringing down our own inventory and exited the year at a overall inventory target level.
We expect these factors as well as new product introductions to continue to move up in margins in 2023.
In terms of geographies. The U S continued to be a strong market crossing in Q4, and we expect Q1 to see continued growth in all categories.
Europe continued to track lower than last year, but it is starting to show improvement.
Let me now take a minute to update you on some of the more notable Q4 product developers.
First we're excited about the Q4 launch of all stream that plus.
This is a new addition to our award winning a lineup of textile controlled interfaces.
The name employees, we originally developed stream deck for streamers.
But the market use cases have continued to expand from stream as to any one more broadly looking for great programmable macro device.
We added new functionality, including full push styles and a dynamic touch strip.
The key is making content creation workflow more efficient, which we excel at.
The other nice feature stream deck, plus integrates seamlessly with all go to the software mainly camera hub control center of it all popular wavelength virtual mixer.
Okay.
Second we saw strong interest in our New Zealand flex.
45 W. H D 240, OLED gaming monitor.
And expect to start shipping volume in Q1.
This 45 inch monitor designed in partnership with LG display uses flexible OLED technology.
Design. So the monitor can be adjusted by hand from flat to a curved display.
We are also excited about our expanded web camera product line with the launch of El ghettos face Cam Pro.
Which is a high end camera, which can output for K at 60 frames per second.
Create is now can more easily produce ultra high definition video without the need for an elaborate camera setup.
This groundbreaking technology combined with all goes past become camera help software.
Place, Kevin probably with a new benchmark in the global web kind of industry.
Of course, it remains one of the industry's most innovative gaming companies. We are excited about our product roadmap for the coming year and look forward to sharing more updates with you as these launches occur.
In summary, the fundamentals of our business remain very strong.
Well positioned entering 2023.
We're all pleased with our team's continued execution and success in what was a challenging year for the gaming industry and go to market.
We have an exciting product roadmap for the coming year with a full slate of launches planned for both our gamer and create a peripherals and gaming component system cycles.
We expect to benefit from multiple catalysts in our core segments with a second half of 2023 expected to be stronger than the first half of 2023.
Let me now turn the call over to our CFO , Michael Potter for details on the financials Mike.
Please go ahead.
Thanks, Andy and good afternoon, everyone.
Q4, 2020 to track to the very high end of our expectations and ended well with momentum carrying into Q1 2023 in terms of specifics Q4, 2022, net revenue increased to $398 $7 million compared to 311.8.
In Q3 2022, this compares to $510 $6 million in Q4 of 2021.
Net revenue for the year was 1.3 $75 billion compared to 1.9 or $4 billion in 2021, a decrease of 27, 8% our channel partners continued to reduce their inventories in Q4 2022 to current and expected consumer demand.
And the reduced transit and lead times. We also further reduced her own inventory by about 23% quarter over quarter, which is back to more historic normalized levels. We are hopeful that the broader industry's inventory in the channel is also in a better position, which would lead to less discounting in 2023.
European markets continue to be softer than Americas, and contributed about 30% of our revenue well below the historic average in the high 30 percentile, but up from the approximately 29% in Q3 2022.
Turning now to our segments.
The Gamer and creator peripheral segment contributed $117 $8 million of net revenue during the fourth quarter up from $96 $8 million in the prior quarter and a decrease of 33, 4% from $176 $9 million in Q4 2021 the <unk>.
<unk> creator peripheral segment net revenue contributed 29, 6% of total net revenue a decrease of 500 basis points from 34, 6% in Q4 2021 for.
For the year Gamer and creator peripheral segment net revenue was 437 $8 million a decrease of 32, 4% year over year.
The gaming component and system segment contributed $289 billion of net revenue during the quarter up from $214 $9 million in the prior quarter and a decrease of 15, 8% from $333 $7 million in Q4 2021.
Memory products contributed $158 $1 million in Q4, 2022 compared to $176 $8 million in Q4 2021.
For the year gaming components and system segment net revenue with $937.3 million, a decrease of 25, 4% year over year.
Overall gross profit in the fourth quarter decreased by 19.7% to $97.9 million from $121.8 million in Q4 2021, the decrease compared to Q4 2021 was primarily driven by reduced revenues gross profit margin increased.
60 basis points to 24, 5% compared to 23, 9% in Q4 2021. This reflects the benefit of the improving supply chain environment, including a significant reduction in freight rates and supply chain lead times, which are rapidly approaching the same levels as they were pre pandemic we expect.
To realize the full benefit over the coming quarter given the typical four to five month lag before these cost reductions are fully reflected in our P&L as our inventory turns for.
For the year gross profit was $296.6 million note. This was impacted by the $19 5 million charge taken previously in the second quarter to account for inventory reserves in excess of our normal run rate to address overhang in the channel.
The Gamer and creator peripheral segment gross profit was $39 $7 million a decrease of 24, 9% from $52.8 million in Q4, 2021, primarily driven by a decrease in revenue gross profit margin was 33, 7% compared to 29 point.
9% in Q4 2021 for the year gross profit was $125 $1 million.
The gaming components and systems segment gross profit was $58 $2 million a decrease of 15.6% from 69.
Dollars in Q4 of 2021, primarily driven by the decrease in revenue gross profit margin was 27% unchanged from Q4 of 2021 for the year gross profit was $171.6 million our memory products margin in this segment was $18 one.
1% for the fourth quarter compared to 17, 5% in Q4 2021.
Fourth quarter, SG&A expenses were $68 $5 million, a 16% decrease compared to $81.5 million in Q4, 2021, driven in part by reduced freight costs out to our customers on lower revenues and lower freight rates. We did have some head count reduction.
As earlier in the year and we also continue to closely monitor all expenses, while continuing to invest in our revenue generating areas.
Quarter, R&D expenses were $15 $7 million up slightly from $15 $1 million in Q4 2021, as we continue to invest in our new products.
GAAP operating income in the fourth quarter of 2022 was $13 $6 million compared to $25 $1 million in Q4 2021 for the year, we had $54.8 million operating loss.
Adjusted operating income in the fourth quarter of 2022 was $29 $6 million compared to $38 $5 million in Q4 2021.
For the year.
This was income of $34 $6 million.
Fourth quarter net income attributable to common shareholders was $12 $5 million. This represents net income of 12 cents per diluted share as compared to net income of $24 $7 million or 25 cents per diluted share in Q4 of 2021 for the year, we had a net loss.
Tribute a boat to common shareholders of $69 million or a loss of 63 cents per diluted share.
Fourth quarter, adjusted net income was $27 million or a net income of 20 cents per diluted share as compared to adjusted net income of $34 $7 million or <unk> 35 cents per diluted share in Q4 2021 for the year, we had adjusted net income of $18 $4 million.
Or 18 cents per diluted share adjusted.
Adjusted EBITDA for the fourth quarter of 2022 was $32 million compared to $39 5 million for Q4 2021 for the year adjusted EBITDA was $46 $5 million.
Turning now to our balance sheet, we took the opportunity to fortify our balance sheet in Q4, ending the year with a cash balance of $154 million, which includes the addition of approximately $81 million from our November equity offering.
From a capital allocation standpoint, we continue to prioritize growth and will maintain we will maintain a healthy balance of cash until the economic situation is clearer.
We did pay down about $5 million of debt in Q4, 2022 and would consider small repayments in 2023, if the year is meeting our expectations.
We ended Q4 with $240 million of debt at face value and a 100 million dollar working capital revolver remains undrawn and fully available we spent $6 $5 million on Capex in Q4 with the elevated capex level related to new facilities now mostly behind us borrowing.
Strategic investment opportunities, we will look to bring our cash balance further up overtime and resumed reducing debt on a more accelerated basis.
Outlook in terms of the full year 2023, we expect total revenue in the range of $1.35 billion to $1.55 billion adjusted operating income in the range of $75 million to $95 million and adjusted EBITA in the range of.
90 million to $110 million.
With the fed rate hike cycle is still in progress forecasting interest expense remains more difficult assuming no further debt pay down we expect interest expense of approximately $4 million per quarter before the impact of interest income assuming we maintain the same cash balance in 2023, we would expect to earn about $1 5 million.
Of interest income per quarter.
And effective tax rate of approximately 18% to 22% for 2023 and full year weighted average diluted shares outstanding of approximately 106 to 108 million shares.
We expect to see revenue distributed more as it was in the past before the pandemic with Q2 being the lowest quarter of revenue in the second half of 2023 being stronger than the first half.
We were aggressive in reducing inventories starting in mid 2022.
And the AD expectations second half of last year allowed us to get our owned inventory levels to our top level targets. We believe that we're starting 2023 at a healthier level of inventory both in our own warehouses and in the hands of our channel partners.
To summarize we're seeing signs of improvement and expect a strong first half of 2023 led by the uptick in demand for self built gaming Pcs that Andy mentioned, we're also seeing the benefit of cost reduction actions. We previously had talk and we're closely monitoring all expenditures, while continuing to support our product and revenue.
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Finally, we expect to see a few additional percentage points of margin improvement in 2023 over 2022, as we benefit from normalized freight costs and reduced need for us to discount now that we're back to our target inventory.
With that we're now happy to open the call for questions.
Operator will you. Please open up the call for Q&A.
Thank you we will now be conducting a question and answer session.
If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
First question comes from drew Crum with Stifel. Please go ahead.
Thanks, Hey, guys. Good afternoon, So I think theres a comment in the press release that revenue guidance does not expected to be affected by a negative inventory trends.
So if your revenue is flattish to slightly up for the year is there a way to help us understand the tailwind you expect to get from restocking and what does your forecast assume in terms of retail performance does it up because it down or is it sideways and I have a follow up.
Yeah. So.
The.
The premise that we've done our.
Our forecast and guidance is that we.
We expect the market overall and obviously this depends on different regions, but we expect the market overall to be.
Flat.
Perhaps rates slightly down perhaps slightly up we definitely have a tailwind in there of something like $100 million.
And that's assuming that.
This year was neutral which is a good assumption.
Because we definitely shipped out to consumers $100 million more than we shipped into the channel.
So hopefully that.
That gives you a sense of where we're at with.
The midpoint of the guidance is roughly $100 million off of compared to.
Oh 2022 revenue got it Okay. Now that's helpful and then maybe for Michael.
Are the shipping the lower shipping costs excuse me mentioned.
Those running through the Cogs line, and SG&A or is that one or one or the other and then you mentioned a decline of over 70% in Q4 versus the beginning of last year.
They're a way in which you can put that in dollar terms and what type of benefit does your guidance embed for 'twenty three thanks.
Yeah. So for the first question.
For gross margin that's benefit in shipment in.
Chip shipment out we recognized a quarter, we do the shipment there's no delay in it. So it's whenever you do the ship out that's an opex, but are bringing inventory in it gets capitalized into inventory it comes out over the turns.
Just roughly in terms of some numbers at the change as we lapped 2021, it was costing us close to $20000 of container depending exactly on the routes, but on some of our routes as at high.
By the end of 2022, it was somewhere between three to $4000 of container again, depending on specifically what route. So there was a pretty significant decrease on container cost.
Got it okay. Thanks, guys.
Next question Aaron Lee with Macquarie. Please go ahead.
Hi, Thanks for taking my question wanted.
Wanted to touch on the promotional environment for a second you guys gave some good color on the heavier discounting by your peers and some of the.
Excess inventory that could take some time to resolve for the industry.
Outside of that are you starting to see any improvements in the promotional environment or is it too early to tell.
And assuming peers continue to discount is your strategy to maintain price just giving you a premium positioning.
Well Firstly, let me welcome you to the analysts group Erin I know you'll have a new.
Analysts don't Macquarie Us as first time, we spoke.
So in terms of promotional activity.
We actually think we're a little bit ahead of a generally about competitors on inventory.
I mean in terms of inventory reduction in the channels. So we saw through Q4, many of our large competitors discounting some more heavily.
Then we were and it indicated to us they may be a little lower on inventory in the channel.
Now we think we while we know we roughly taken care of all inventory overhang.
By the end of the year and whatever was left with eating up it's actually many areas now we all are.
On the inventory targets in the channel.
But we think that many of our competitors still have excess I believe that there'll still be some discounting going on in the channel mostly in gaming peripherals.
For the next one or two quarters.
And we will do what we can to maintain our market share, but most of the discounting tends to happen in the entry level.
And.
Okay to lose a little bit of market share in the entry level.
If it would then cause us to be in a loss position. So.
Hopefully that makes sense. So we think that the promotional environment will be still going on for the next six months three to six months and I hope by the second half. It will go away isn't one inventory clears up.
Back to a normal level.
Got it perfect that's helpful.
And just a quick follow up I know, you've recently announced.
Several upgrades to some of your existing product lines and you've also launched are obviously, some some new products as well.
So as you look at 2023, how are you planning on splitting your development resources between upgrades and new product launches.
Is it pretty split pretty evenly.
No. It's it's it's no I mean, we we've obviously got different sizes of businesses across the board.
Some of the businesses women like El Gallo streaming for example has got a very heavy software content and so the products are just a lot more complicated.
And so that really isn't high margins.
There's also so there's a lot of resources going into that we've got a pretty big software ecosystem, which requires resources.
We have.
A much bigger Tam that we're addressing and gaming peripherals.
So there's a lot more products coming out there.
In terms of.
The gaming components.
The products that we use to build gaming systems. That's the biggest part of our revenue now and so obviously, we keep having to upgrade those most recently what we've had to do is upgrade all of our power supplies to higher wattage levels.
The new graphics cards from Nvidia, Nvidia and AMD come to that all I'm using a lot more power and more powerful I'm sure you've seen that in the news.
So it was a general upgrade are across the board, but I'd say look in general the.
The R&D budget is more geared towards products that require a lot more software and complexity.
But that doesn't necessarily.
[noise] tie up with the revenue of each of each product line I think in terms of longer term.
Market share expansion, we'd expect there's a lot more opportunity for us to grow in.
In the gaming peripheral in the El Gallo streaming area.
Because there is a newer with quite well established in and memory sales and other.
All the components that go into sell Phil P season, they have very high market share.
Got you perfect. Thank you very much and congrats on the quarter really nice performance.
Once again, if you would like to ask a question. Please press star one on your telephone keypad.
Next question comes from Doug Kratz with Cowen and company. Please go ahead.
Okay. Thank you.
If I take the midpoint of your guidance ranges, you're sort of suggesting you're going to earn close to 7% EBITDA margins.
Is basically where you were pre pandemic.
If I if I think about what the pathway is to get to let's say, 10% EBITDA margins is that just a function of creating operating leverage from topline growth or are there are there still things going on in the market, where with you that are structurally impacting your margins that you think will get resolved over time.
Yeah, that's a good question.
And both are true the largest component is.
Is size and leverage and so clearly at the two two plus billion dollar level, there's a lot.
There's a lot more overhead less overheads.
In terms of percentage, so so that drives it up but there's still a lot of margin enhancement going on in almost every product line, we still have some remnants of.
Fake high freight costs sitting in inventory as Michael said, they they go into the balance sheet.
We still have some discounting going on as I said, so we think if we go back to the normal situation that we're in in.
In 2019 in terms of market, we'd actually be substantially above 41, or two points higher in terms of EBITDA level.
Okay. That's very helpful. Thank you.
Okay.
Next question Mario Lu with Barclays. Please go ahead.
Great. Thanks for taking the questions. So the first one just a high level.
No question, so now that the the retail channel is normalizing.
Curious if there's any other areas of focus that you'll be returning to or new initiatives. This year I know in the past you mentioned kind of growing your DTC channels are growing your services segment for example, thanks.
Yeah, Yeah, good questions Maria well at the moment the the most important market that we're chasing after is or trying to keep up with is a self built PC component market that is really researched a with the new graphics cards coming out with.
In video and in fact, it's only really the high end cards that have come out so far off so we still have the 40 70 club, which will probably end up being the most popular code that will draw.
<unk> volume for us so the first priority for us is to keep up with that.
Demand stay strong.
Trouble than I think most people would expect.
Given.
A sort of a recessionary period, you would think it would be difficult for people to spend two or $3000 of building of mpc's, but that's what everyone's doing a very good rate substantially above pre pandemic levels.
So that is.
That is one area.
We talked earlier about the fact that we still have a large market to go after and and gaming peripheral so that'll be continue to be a focus streaming and building out some of the streaming content creative products.
Such as stream deck.
Trying to enhance that so it's more useful for people doing all sorts of work in business whether it's.
Using teams or zoom or Adobe. So we're going to do a lot of work there and then yes, we are actually doing very well in our direct to consumer business. We had a record 15% of total sales last quarter.
It was a direct to consumer so I think it's important for us to continue to build that out.
Great. Thanks, and just a follow up on that.
Comment on seasonality.
You mentioned that the second half would be stronger than the first half is there any.
We can use like for example should we look back in 2009.
Where the second half was on it Nick <unk> percentage of total thanks.
It should be much more like.
Pre pandemic type of patterns.
Down from Q4 into Q1 Q2 is the lowest and then it starts going back up second half is higher than the first half partially it'll be from new product releases during the year as well we believe that expand.
The addressable Tam for us and that will give us more opportunity for more revenue throughout the year and that'll help our second half.
Okay.
Got it yeah as Michael just.
Just to give some color there.
The uncertainties that we face Oh, several what we know right now we've got a very very strong.
They'll PC market with more to come and so we expect that's going to go over some time.
If it does it'll be stronger in the second half probably in the first half we have China, which is sort of going through the exit of Covid. If you like and if you remember whenever what he came out of Covid and.
The U S and Europe . The initial reaction was to do lots of vacations in.
Restaurants, and that's the things that people were spending money in other places.
So that's yet to come and so theres a lot of things like that you are how soon will the Ukraine, Russia situation resolve itself.
How will the inflation work over there so while we've got a very clear sight and feel great about the U S. I think there's more uncertainties in Europe and Asia.
It could affect how the seasonality works.
Got it thanks Andy.
Yeah.
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Question comes from Colin Sebastian with Baird. Please go ahead.
Hey, good afternoon, Andy Michael its Reese on for Colin I kind of had a two part question on Europe .
First part being could you just kind of frame up where you are in that 26% gross stat versus 2019 relative to the market and then whats kind of embedded in the guidance. This year for Europe as it continued weakness or.
Is it is it something else and then I think Andy in your prepared remarks, if I heard you correctly, you mentioned something around mobile.
If you could just touch on that that'd be great. Thanks.
So if just for normal percentages in the past for Europe , we usually in the high 30% close to the Americas that went down into the mid twenties at the start of the conflict between Russia and Ukraine.
Got back up to about 30% by the end of last year.
Assuming that there is no further deterioration from energy costs are of the conflict. There. We do expect to have some gradual improvement in Europe through the year, but not returning back up to the old levels by the end of next year, but certainly some strength there.
Yes.
The added color there was that.
There was more of an inventory adjustment needed in Europe than in the U S. So what that means is that if you remember the first question about <unk>.
How do we think about revenue sales out from the channel the cells. So it's a bigger differential in Europe , there wasn't in the U S, which therefore affected our revenue mix.
In terms of mobile I'm not sure. What the question was you mean, what's youre feeling about mobile gaming.
Yeah Yeah.
Yes, I thought you had mentioned something about mobile gaming product development or I may have heard it incorrectly.
Yeah, No that's right.
We've said previously that there are a couple of areas that we're looking at carefully and if in the gaming all the you know.
Interactive Entertainment space, one of them is I O N V O still little bit early for us to jump into that and the other one is mobile gaming, which we're watching closely its still a fairly small market in terms of the accessories by accessories, I mean, something that keeps answer the phone and allows you to use buttons.
Too so.
So a better that's getting experience. So we're looking at that very carefully clearly we have.
Console controllers and El Scuffed Division, So we know about how that how that market works.
The vast majority of people playing games on phones or just using the phone screen for inputs, but as that develops and some opportunities arise well suddenly jump into that.
Excellent. Thank you.
Thank you I will now turn the call back to the company's CEO for closing comments.
Well look thank you everybody for joining the call today and for the continued support obviously, we're feeling pretty bullish at the moment.
With a nice results in Q4, and we expect that to continue for.
The next year.
Against obviously macroeconomic issues.
So if you have any further questions. Please contact our Investor Relations Department.
We look forward to updating you next quarter. Thank you very much.
This concludes today's teleconference. You may disconnect your lines at this time and thank you for your participation.
Yeah.
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