Q1 2025 Corsair Gaming Inc Earnings Call
0.0088830 on your telephone keypad.
David Pasquale: With that, I would now like to turn the call over to David Pasquale with Investor Relations.
With that I would now like to turn the call over to David Pasquale with Investor Relations. Thank you Sir please begin.
Speaker: Thank you, sir.
Speaker: Please begin.
Speaker: Good afternoon, everyone, and thank you for joining Corsair's Financial Results Conference call for the first quarter ended March 31, 2025.
Speaker Change: Good afternoon, everyone and thank you for joining corsairs financial result conference call for the first quarter ended March 31 2025.
David Pasquale: On the call today, we have Corsair's CEO, Andy Paul, Thi La, Corsair's President and future Chief Executive Officer of Corsair as of July 1, 2025, and CFO, Michael Potter. Andy will review highlights from the quarter, followed by Thi. Michael will then review the financials.
Speaker Change: On the call today, we of course here as the CEO, Andy Paul T Law of course, he was president and future Chief Executive Officer of course here as of July one 2025, and CFO Michael Potter.
Michael Potter: Andy will review highlights from the quarter, followed by T. Michael will then review the financials. We will then have time for any questions before.
Speaker: We will then have time for any questions. Before we begin, allow me to provide a disclaimer regarding forward-looking state This call, including the Q&A portion, may include forward-looking statements related to the expected future results for our company and are therefore forward-looking statements. Our actual results may differ materially from our projections due to a number of risks and uncertainties. The risks and uncertainties that forward-looking statements are subject to are described in our earnings release and other SEC filings.
Michael Potter: Before we begin allow me to provide a disclaimer regarding forward looking statements. This call, including the Q&A portion may include forward looking statements related to the expected future results for our company and are therefore forward looking statements.
Michael Potter: Our actual results may differ materially from our projections due to a number of risks and uncertainty.
Michael Potter: The risks and uncertainties that forward looking statements are subject to are described in our earnings release and other SEC filings.
Speaker: Note that until our 10-Q has been filed, these numbers are preliminary. Today's remarks will also include references to non-GAAP financial measures. Additional information, including reconciliation between non-GAAP financial information to the GAAP financial information, is provided in the press release we issued after the market closed today.
Michael Potter: No that until our 10-Q has been filed these numbers are preliminary.
Michael Potter: Today's remarks will also include references to non-GAAP financial measures.
Michael Potter: Additional information, including reconciliation between non-GAAP financial information to the GAAP financial information is provided in the press release, we issued after the market closed today.
Andy Paul: With that, I will now turn the call over to Corsair's CEO, Andy Paul. Please go ahead, sir. Thanks, David. Firstly, I'm pleased to report that we met our revenue and earnings targets for Q1, with $370 million of revenue, representing an approximate 10% growth over Q1 of last year. Margins and Ibadar were also on target, which Michael will cover in detail later. Our new Fanatec SimRacing operation helped growth in our Gamer and Creator Peripherals segment and a rebound in our Gaming Components and Systems segment signaled renewed energy in the core of our enthusiast base with new GPU cards shipping from NVIDIA.
Michael Potter: With that I will now turn the call over the course here CEO Andy Paul. Please go ahead Sir.
Speaker Change: Thanks, David.
Speaker Change: Firstly I'm pleased to report that we met our revenue and earnings targets for Q1 with $370 million of revenue, representing an approximate 10% growth over Q1 of last year.
Speaker Change: Margins in EBITDA, we're also on target, which Michael will cover in detail later.
Speaker Change: All new furniture Sim racing operation helped gross in a game and create a peripheral segment.
Speaker Change: And a rebound in our gaming component systems segment.
Speaker Change: Signaled renewed energy in the core of our enthusiast base with new GPU called shipping from Nvidia.
Andy Paul: One of the key milestones this quarter was the successful initial integration of Fanatec into Corsair. This included seamless alignment across our website, e-commerce systems, ERP, supply chain, and customer support infrastructure. We're already seeing the results. Consumers have responded enthusiastically to improved product availability, faster support, and a more streamlined experience. We're excited to build on this momentum by shortly bringing Fanatec products to some of our specialist retailers, further expanding our presence in the enthusiast gaming space and driving incremental revenue.
Speaker Change: One of the key milestones this quarter was the successful initial integration of fantasy like into <unk>.
Speaker Change: This included seamless alignment across our website e-commerce systems, ERP supply chain and customer support infrastructure.
Speaker Change: We're already seeing the results.
Speaker Change: Consumers have responded enthusiastically to improve productivity and ability for us to support and a more streamlined experience.
Speaker Change: We're excited to build on this momentum by shortly bringing furniture like products to some of our specialist retailers further expanding our presence in the enthusiast gaming space and driving incremental revenue.
Andy Paul: Clearly, one of the main topics of the day is tariffs and how they affect us. And Thi La, who was recently announced as our new CEO, will address what we're doing to mitigate any tariff impacts. But the headline is that we don't source much for the U.S. market from China. And so far, we saw very little effect in terms of our consumer base reducing demand. In Q1, we have seen solid demand for our components and memory products. as enthusiasts build new gaming PCs based on new high-performance GPUs. As we have mentioned before, the new 50 Series GPU cards are higher power than before, especially when overclocked.
Speaker Change: Clearly one of the main topics of the day is tariffs and how they affect us.
Sheila: And Sheila who was recently announced as our new CEO.
Sheila: Well address what we're doing to mitigate any tariff impacts.
Sheila: But the headline is that we don't source much for the U S market from China, and so far we saw very little effect in terms of our consumer base reducing demand.
Sheila: In Q1, we have seen solid demand for our components and memory products.
As enthusiasm build new gaming Pcs based on new high performance Gpus.
Sheila: As we have mentioned before.
Sheila: Then you have 50 series GPU cards are higher power than before especially when overclocked.
Andy Paul: This means higher grade power supplies and cooling devices need to be used, which is where we specialise. So we started the year in a good position.
Sheila: This means higher grade power supplies and cooling devices need to be used which is why we specialize.
Sheila: So we started the year in a good position.
Andy Paul: Looking forward, there are always multiple variables that can change, and of course we don't know what exactly is going to happen with tariffs, given the fluid situation. However, we are encouraged with the more measured approach to tariffs on semiconductors and related products, and would expect to end up at a place which would not meaningfully affect the consumer demand for building gaming PCs and buying peripherals. My belief, having watched many economic cycles over the years, is that home entertainment, like gaming or watching content at home, tends to be less affected during a recession than spending outside the home, such as restaurants, bars and other outside entertainment.
Sheila: Looking forward there are always multiple variables that can change and of course, we don't know what exactly is going to happen with tariffs given the fluid situation. However, we are encouraged with the more measured approach to tariffs on semiconductors and related products.
Sheila: And we would expect to end up with a place which would not meaningfully affect the consumer demand for building getting P CS and buying peripherals.
Sheila: My belief, having watched many economic cycles over the years is that humans payment like gaming or watching content at home.
Sheila: Tends to be less affected your assertion then spending outside the home such as restaurants bars and other outside entertainment.
Andy Paul: Having said that, any economic slowdown or recession that involves layoffs and prices generally going up will not likely induce any meaningful growth for our markets.
Sheila: Having said that.
Sheila: Any economic slowdown or recession that involves layoffs and prices generally going up will not likely in juice any meaningful growth for our markets.
Andy Paul: The other thing we need to look at is how we fare compared to our competitors. In most of our categories, we are the largest supplier, and so we probably have more flexibility and likely would gain market share if large tariffs go into effect.
Sheila: The other thing we need to look at it is how we compare to our competitors.
Sheila: At most of our categories, we are the largest supplier and so we probably have more flexibility.
Sheila: We likely would gain market share with large tariffs go into effect is.
Andy Paul: As I mentioned, Thi will cover this in detail next.
Sheila: As I mentioned she will cover this in detail next.
Andy Paul: Lastly, I want to touch on the growing impact of artificial intelligence across our business. This is an exciting development with massive implications to our business and to gameplay. We're already seeing early benefits. For example, Elgato is shipping AI-enhanced tools, like the AI Prompter, and we integrated AI into Wavelink with AI Acoustic. Our support teams are also using AI-driven knowledge systems to deliver faster, more accurate service. This ultimately creates a better customer relationship, reduces support costs, and builds brand strength. We believe AI will become a meaningful growth driver as it shapes the entire ecosystem from game creation to gameplay.
Sheila: Lastly, I want to touch on the growing impact of artificial intelligence across our business.
Sheila: This is an exciting development with massive implications to our business into game play.
Sheila: We're already seeing early benefits for example, El Gallo was shipping alien homes tools like the eye prompts them and we integrated it into wavelength with acoustic.
Sheila: I'll support teams are also using AI driven knowledge systems to deliver faster more accurate service.
Sheila: This ultimately creates a better customer relationship, but use this forecast and builds brand strength.
Sheila: We believe it will become a meaningful growth driver as it shapes the entire ecosystem from game creations of game play.
Andy Paul: In summary, Q1 was a solid start to the year. With the successful Fanatec integration, strong product demands, an adaptable supply chain, and early wins in AI, Corsair is well positioned for continued growth and innovation in the coming years. We're excited to see what lies ahead.
Sheila: In summary, Q1 was a solid start to the year.
Sheila: With the successful integration of strong product demands and adaptable supply chain and early wins in I O I.
Sheila: Of course, I was well positioned for continued growth and innovation in the coming years. We're excited for what lies ahead.
Thi La: Let me now turn the call over to Thi La before Michael reviews our financials. Thi, please go ahead. Thank you, Andy. Corsair has a long history of navigating global trade dynamics with agility and efficiency. We've spent years building a flexible, multi-location manufacturing strategy that allows us to quickly adapt to changes in the market and policy environment. Today, our products are manufactured in several countries, including the United States, through a combination of our own factories and a network of trusted assembly subcontractors tailored to our diverse product line. Thanks to our operational expertise and deep supplier relationships, we've consistently demonstrated the ability to shift production locations within just two to four quarters, an advantage that gives us tremendous resilience.
Sheila: Let me now turn the call over to Sheila.
Speaker Change: Before Michael reviews, all financials T. Please go ahead.
Sheila: Thank you Andy of course that has a long history of navigating global trade dynamics with agility and efficiency. We spent years building a flexible multi location manufacturing strategy that allows us to quickly adapt to changes in the market and policy environment today.
Sheila: Today, our products are manufactured in several countries, including the United States do a combination about one factories and NEC.
Sheila: Work of trusted assembly subcontractors tailored to our diverse product lines.
Sheila: Thanks to our operational expertise and deep supplier relationships, we've consistently demonstrated the ability to ship production locations within just two to four quarters and advantage that gives us tremendous resilience.
Thi La: While the U.S. represents roughly 45% of our total sales in Q1 2025, only 19% of the products sold into that market are sourced from China, and this number is expected to drop during this year. This means that we are well-positioned to continue serving U.S. consumers cost-effectively due to our fluid operations. Our experience and scale allow us to move faster than many smaller competitors, and we believe this environment creates a meaningful opportunity for us to capture share. We are also encouraged by recent NPD Group data, which show strong year-over-year growth in the components market. These are areas where Corsair maintains a leadership position and we are confident in our ability to meet growing demand with minimal disruption.
Sheila: While the U S represents roughly 45% about tourist sales in Q1, 'twenty 'twenty five only 19% of the products sold into that market are sourced from China and this number is expected to drop during this year.
Sheila: It means that we are well positioned to continue serving U S consumers' cost effectively due to our fluid operation.
Sheila: Our experience and scale allow us to move faster than many smaller competitors and we believe this environment creates a meaningful opportunity for us to capture share. We're also encouraged by recent NPD group data, which showed strong year over year growth in the components market piece of it.
Sheila: Areas, where question maintains a leadership position and we are confident in our ability to meet growing demand with minimal disruption.
Michael Potter: Let me now turn the call over to Michael for a review. Thank you, Andy and Thi. We're very pleased with our first quarter performance, which highlights the continued progress we're making across the business. One of the highlights this quarter was the expansion in margins, the increase in revenue from higher performance gear resulting from the high-end GPU releases was coupled with our continued discipline execution and focus on operational efficiency. This performance reflects the strength of our underlying business and our team's ability to execute on a long term business model. On the financial side, we made significant progress in further strengthening our balance sheet.
Michael Potter: Now turn the call over to Michael for a review Michael.
Speaker Change: Thank you Andy N T.
Michael Potter: We're very pleased with our first quarter performance, which highlights the continued progress we're making across the business one of the highlights this quarter was the expansion in margins the increase in revenue from higher performance gear, resulting from the high end GPU releases. So it's coupled with our continued disciplined execution and focus on operational efficient.
Michael Potter: This performance reflects the strength of our underlying business and our team's ability to execute on our long term business model.
Michael Potter: On the financial side, we made significant progress in further strengthening our balance sheet, we continue to actively reduce debt and improve our overall liquidity position taken together. These actions further enhance our financial flexibility and resilience, which takes on added importance in the current dynamic market environment.
Michael Potter: We continue to actively reduce debt and improve our overall liquidity position. Taken together, these actions further enhance our financial flexibility and resilience, which takes on added importance in the current dynamic market environment. In terms of the specifics, Q1 2025 net revenue was $369.8 million compared to $337.3 million in Q1 2024. European markets contributed 37.2% of our Q1 2025 revenues compared to 38% in Q4 2024, while the APAC region was 11.3% of our Q1 2025 revenues compared to 9.1% in Q4 2024.
Michael Potter: In terms of the specifics Q1, 2025, net revenue was $369.8 million compared to $337.3 million in Q1 2020 for.
Michael Potter: European markets contributed 37, 2% of our Q1 2000 and twenty-five revenues compared to 38% in Q4 2024, while the APAC region was 11, 3% over Q1, 2000, and twenty-five revenues compared to nine 1% in Q4 of 2024.
Michael Potter: Turning now to our segments. The Gamer and Creator Peripheral segment contributed $112 million of net revenue during the first quarter, compared to $107 million in Q1 2024. The Gaming Components and Systems segment contributed $257.8 million of net revenue during the first quarter, compared to $230.3 million in Q1 2024. Memory Products contributed $141.1 million in Q1 2025, compared to $124.9 million in Q1 2024. Overall gross profit in the first quarter was $102.4 million compared to $86.6 million in Q1 2024, reflecting the continued growth in our gaming and creator peripheral segment and some benefit from the initial integration of Fanatec.
Michael Potter: Turning now to our segments.
Michael Potter: The gamer and create a peripheral segment contributed $112 million of net revenue during the first quarter compared to $107 million in Q1 2020 for the gaming components and system segment contributed $257.8 million of net revenue during the first quarter compared to two one.
Michael Potter: And $33 million in Q1 2024.
Michael Potter: Memory products contributed $141.1 million in Q1, 2025 compared to $124 $9 million in Q1 2024.
Michael Potter: Overall gross profit in the first quarter was $102 $4 million compared to $86.6 million in Q1 2024, reflecting the continued growth in our gaming and creator peripheral segment and some benefit from the initial integration of fan attack.
Michael Potter: Gross margin increased to 27.7% compared to 25.7% in Q1 2024. While gross margin can fluctuate in any given quarter, we are pleased with the improvement in Q1 and this remains a focus for us longer term. Gross profit in the gamer and creator peripheral segment was $46.4 million, compared to $43.6 million in Q1 2024. Gross margin improved to 41.5%, compared to 40.8% in Q1 2024. The gaming components and systems segment gross profit was $55.9 million, compared to $43 million in Q1, 2024. Gross margin was 21.7%, compared to 18.7% in Q1, 2024. Our memory products gross margins in this segment were 16.9% for the first quarter, compared to 14.5% in Q1, 2024.
Michael Potter: Gross margin increased to 27, 7% compared to 25, 7% in Q1 2024, while gross margin can fluctuate in any given quarter. We are pleased with the improvement in Q1, and this remains a focus for us longer term.
Michael Potter: Gross profit in the game or in greater peripheral segment was $46 $4 million compared to $43 $6 million in Q1 2020 for gross margin improved to 41, 5% compared to 48% in Q1 2020 for.
Michael Potter: The gaming components and systems segment gross profit was $55 $9 million compared to $43 million in Q1 2024.
Michael Potter: Gross margin was 21, 7% compared to 18.7% in Q1 2024, our memory products gross margins in this segment were 16.9% for the first quarter compared to 14.5% in Q1 2024.
Michael Potter: First quarter SG&A expenses decreased slightly as a percentage of total revenue to $23.5% or $87 million, compared to $23.8% or $80.2 million in Q1 2024. First quarter R&D expenses also decreased slightly as a percentage of total revenue to $4.8% or $17.6 million, compared to $4.9% or $16.6 million in Q1 2024. We continue to target investments in higher ROI innovations, including both hardware and software, to enhance the customer experience and to create revenue opportunities for us. Gap operating loss in the first quarter of 2025 was $2.3 million compared to $10.2 million in Q1 2024. First Quarter Adjusted Operating Income was $20.6 million compared to Adjusted Operating Income of $15.4 million in Q1 2024.
Michael Potter: First quarter SG&A expenses decreased slightly as a percentage of total revenue to 23.5% or $87 million compared to 23, 8% or $82 million in Q1 2024.
Michael Potter: First quarter R&D expenses also decreased slightly as a percentage of total revenue, the four 8% or $17.6 million compared to 4.9% or $16.6 million. In Q1 2024, we continue to target investments in higher R. O y innovations.
Including both hardware and software to enhance the customer experience and to create revenue opportunities for us.
Michael Potter: GAAP operating loss in the first quarter of 2025 was $2.3 million compared to $10 $2 million in Q1 2024.
Michael Potter: First quarter adjusted operating income was $26 million compared to adjusted operating income of $15 $4 million in Q1 2024.
Michael Potter: First quarter net loss attributable to common shareholders was $10.1 million, or $0.10 per diluted share, as compared to net loss of $12.5 million, or $0.12 per diluted share in Q1 2024. On an adjusted basis, first quarter net income was $12.3 million, or $0.11 per diluted share, compared to an adjusted net income of $9.5 million, or $0.09 per share in Q1 2024. Finally, our first quarter adjusted EBITDA was $22.6M compared to $18M for Q1 2024.
Michael Potter: First quarter net loss attributable to common shareholders was $10 $1 million or 10 cents per diluted share as compared to a net loss of $12 $5 million or 12 cents per diluted share in Q1 2024.
Michael Potter: On an adjusted basis first quarter net income was $12 $3 million or 11 cents per diluted share compared to an adjusted net income of $9 $5 million or nine cents per share in Q1 2024.
Michael Potter: Finally, our first quarter adjusted EBITDA was $22.6 million compared to $18 million for Q1 2024. We are pleased to start the year on a strong note and remain focused on further improvements longer term.
Michael Potter: We are pleased to start the year on a strong note and remain focused on further improvements longer term. Shortly after the end of the quarter, we finished the last and largest effort to move Fanatec fully into our base systems. That was successful and should help us better manage in the future. Although there are still some supply chain changes that are being made, we do expect integration expenses to be mostly behind us now.
Michael Potter: Shortly after the end of the quarter. We finished the last and largest effort to move pan attack fully into our base systems that were successful and should help us better manage in the future. Although there are so some supply chain changes that are being made we do expect integration expenses to be mostly behind us now.
Michael Potter: Turning now to our balance sheet. We ended Q1 with a cash balance including restricted cash of $102.5 million. We invested in inventory in some categories we thought might help with any needed transitions, with inventory ending Q1 at $276.8 million, up $16.9 million from the prior quarter. We ended Q1 with $149 million of debt at face value, down $25 million from the prior quarter, and our $100 million working capital revolver remains undrawn and fully available. Overall, our liquidity remains excellent and allows us to pursue different strategies to support growth opportunities, including building inventory and strategic categories, as I mentioned earlier.
Michael Potter: Turning now to our balance sheet.
Michael Potter: We ended Q1 with a cash balance including restricted cash of $102.5 million, we invested in inventory in some categories. We thought might help with any needed transitions with inventory ending Q1 at $276 $8 million up $16.9 million from the prior quarter.
Michael Potter: We ended Q1 with $149 million of debt at face value down $25 million from the prior quarter and our 100 million dollar working capital revolver remains undrawn and fully available overall.
Michael Potter: Overall, our liquidity remains excellent and allows us to pursue different strategies to support growth opportunities, including building inventory in strategic categories as I mentioned earlier.
Michael Potter: Finally, with regard to our outlook, as noted in our Q1 earnings release, given current uncertainty resulting from new tariffs and the possibility of additional tariffs and retaliatory actions taken in response to such tariffs, we are not reaffirming full year 2025 financial guidance, but intend to provide an update later in the year as visibility improves.
Michael Potter: Finally, with regard to our outlook as noted in our Q1 earnings release, given current uncertainty, resulting from new tariffs and the possibility of additional tariffs and retaliatory actions taken in response to such tariffs, we're not reaffirming full year 2025 financial guidance, but intend to provide an update later in the year.
Michael Potter: Air as visibility improves.
Operator: With that, we're now happy to open the call for questions. Operator, will you please open up the call for Q&A? Absolutely. We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your question, please press star, then two. Again, that is star and then one to ask a question.
Michael Potter: With that we're now happy to open the call for questions. Operator, we are pleased to open up the call for Q&A.
Michael Potter: Absolutely we will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you were using a speakerphone. Please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Michael Potter: Again that is star and then one to ask a question at this time, we will pause momentarily to assemble our roster.
Operator: At this time, we will pause momentarily to assemble our roster.
Michael Potter: Yeah.
Aaron Lee: And your first question today will come from Aaron Lee with Macquarie. Please go ahead. Hey, good afternoon. Thanks for taking my question. Appreciate all the color. Obviously a lot going on in the world right now. Inflation, tariffs, macro.
Michael Potter: And your first question today will come from Aaron Lee with Macquarie. Please go ahead.
Michael Potter: Yeah.
Michael Potter: Hey.
Michael Potter: Good afternoon, Thanks for taking my question.
Michael Potter: I appreciate all the color it's.
Speaker Change: Obviously, a lot going on in the world right now inflation tariffs macro it sounds like everything is on track, but has anything changed in terms of your confidence in the hardware refresh cycle around the new Nvidia Gpus.
Andy Paul: It sounds like everything is on track, but has anything changed in terms of your confidence in the hardware refresh cycle around the new NVIDIA GPUs? And can you talk a bit more about how Corsair has performed in past recessions and maybe any lessons you can apply going forward? Thanks.
Speaker Change: And can you talk a bit more about how of course, there has performed in past recessions and maybe any back then that you can apply going forward. Thanks.
Andy Paul: Well, yeah, it's a complicated question. So I think that one thing we're mindful about is the Two-thirds of our revenue comes from people building gaming PCs. and The Determining Factor. on whether they're going to build or not is going to come down to the cost of a GPU and CPU. And that's why so much depends on the tariff level of semiconductors and what ends up being exempt. So you can imagine that if there was a 50% tariff on GPUs... that would almost certainly impact demand. Now our current expectation, or maybe it's a hope, is that some inductors are not going to get heavily tariffed.
Speaker Change: Well.
Speaker Change: Yeah. It's a complicated question. So I think the one thing we are mindful about is.
Speaker Change: She says about revenue comes from people building gaming Pcs.
Speaker Change: And the determining factor.
Speaker Change: Or whether they're going to build or no is going to come down to the cost of the GPU and CPU.
Speaker Change: And that's why I'm, so much depends on the cherish level of semiconductors, and what ends up being exempt.
Speaker Change: So you can imagine that if there was a 50% tariff on Gpus.
Speaker Change: That would be a that would almost certainly impact demand.
Speaker Change: Well, Kevin expectation or maybe it's the hope is that semiconductors are not going to get heavily tariffs.
Andy Paul: uh... because we think that there's a lot of people lobbying against this uh... and I think there's going to be an understanding that it does take a long time to rebuild up uh... a semiconductor base in the U.S. So early signs though is that people are clearly building with 50 series cards from NVIDIA. That's already started. Remember, NVIDIA didn't start shipping until March, so we've only had a small amount of activity. But certainly, all the way through March, 50-90 cards, which are the high-end cards, were essentially on allocation for the whole balance of Q1. We couldn't get enough cards to make our high-end systems. So yeah, the refresh cycle is certainly starting, but there's a lot of factors that could change how big it is.
Speaker Change: Because we think that there's a lot of people lobbying against this and I think there's going to be an understanding because it does take a long time too.
Speaker Change: You build up.
Speaker Change: Our semiconductor based in the U S.
Speaker Change: So.
Speaker Change: Early early signs, though is that people are clearly building with 50 series called from Nvidia.
Speaker Change: It's already started member they didn't really didn't start shipping until March. So then he had a <unk>.
Speaker Change: The amount of activity, but suddenly all the way through notch.
Speaker Change: <unk> 90 college, which at the high end College was essentially an allocation for the whole balance of Q1.
Speaker Change: We couldn't get enough cards to make our high end systems. So yeah, the refresh cycles suddenly starting.
Speaker Change: But there's a lot of there's a lot of factors to chase.
Speaker Change: How big it is.
Andy Paul: You asked about recession, and we don't have a huge amount of historical data on that. What I will say is that what we have seen in general is that people tend to stay home in a recession, and history shows that people resort to alcohol and watching TV historically in recessions, and I think now it's more playing video games and watching Netflix. So I think that we'd be in a reasonable situation if people started tightening their pocketbooks. Gotcha. Thank you. That's helpful.
Speaker Change: You asked about recession.
Speaker Change: Yes.
Speaker Change: And.
Speaker Change: We didn't have a huge amount of historical data on that what I will say is that well.
Speaker Change: Well, what we have seen in general is that people tend to stay home.
Speaker Change: In a recession.
Speaker Change: Our history shows that people resort to alcohol and watching T V and historically in recessions and I think now its role playing video games and I'm watching Netflix so.
Speaker Change: So I think that you know.
Speaker Change: We'd be unreasonable situation if people started tightening their pocket books.
Speaker Change: Got you. Thank you that's helpful.
Aaron Lee: I wanted to dig into the segments as well. Growth in peripherals, 5% in the quarter. Any drivers of that in particular you would call out? And conversely, strong growth in the proponent segment. Do you think any of that will pull forward demand from people buying ahead of tariffs? Or do you think momentum can continue to build from here?
Speaker Change: I wanted to dig into the segments as well growth in peripherals.
Speaker Change: 5% in the quarter any drivers of that in particular, you would call out.
Speaker Change: And Conversely, as strong growth in the components segment.
Speaker Change: Do you think he knew that was pull forward demand from people buying ahead of tariffs or do you think momentum can continue to build from here. Thank you.
Andy Paul: Thank you. Yeah, so I think in the components area, no, I don't think we saw that because the market was actually completely limited by the availability of cards. And really, the tariffs didn't start kicking in until right at the end of the quarter. So in terms of peripherals, the main driver for the growth was clearly the Fanatec acquisition. That went pretty much as planned and we're pretty happy with the way that's going. Um, yeah, so those are the two seconds.
Speaker Change: Yeah. So I think in the in the components area No I don't think we saw that because the market was actually completely limited by the availability of clubs.
Speaker Change: And really the tariffs didn't start kicking into right at the end of the quarter.
Speaker Change: So it's early April so in terms of peripherals main driver for the growth was clearly the fantastic acquisition.
Speaker Change: That was pretty much as planned we're pretty pretty happy with the way that's going.
Speaker Change: Yeah. So those are the two segments.
Speaker: Okay, appreciate it.
Speaker Change: Okay I appreciate it thank you.
Operator: Thank you. Again, if you have a question, please press star and then 1. Please stand by as we poll for questions.
Speaker Change: Again, if you have a question. Please press star and then one.
Speaker Change: Please standby as we poll for questions.
Speaker Change: Yeah.
Speaker Change: [noise] well see no further questions. This will conclude our question and answer session I would like to turn the conference back over to Coursera CEO, Andy Paul for any closing remarks.
Speaker: Seeing no further questions, this will conclude our question and answer session.
Andy Paul: I would like to turn the conference back over to Corsair's CEO, Andy Paul, for any closing remarks. Okay, thank you everyone for joining us on the call today and for your continued support. If you have any follow-up questions, please contact our investor relations department and we look forward to updating you next quarter.
Andy Paul: Okay. Thank you everyone for joining us on the call today and for your continued support.
Andy Paul: You have any follow up questions. Please contact our Investor Relations Department.
Andy Paul: And we look forward to updating you next quarter. Thank you and have a good evening.
Speaker: Thank you and have a good evening.
Speaker: The conference has now concluded. Thank you for attending today's presentation.
Andy Paul: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker: You may now disconnect.
Andy Paul: Yeah.
Andy Paul: [music].