Corsair Gaming, Inc.

Good afternoon and welcome to Corsair Gaming's first quarter 2025 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 will follow the formal presentation. If anyone should require operator assistance during the conference, please press star then zero on your telephone keypad. With that, I would now like to turn the call over to David Pasquale with Investor Relations. Thank you, sir. Please begin.

Good afternoon, everyone, and thank you for joining Corsair's Financial Results Conference call for the first quarter ended March 31, 2025. On the call today, we have Corsair's CEO, Andy Paul, T. Law, 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 T. Michael will then review the financials. We will then have time for any questions. 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. 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. Note that until our 10Q 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. 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 EBITDA were also on target, which Michael will cover in detail later. Our new Fanatec sim racing operation helped growth in our gamer and creator peripheral segment, and a rebound in our gaming component and systems segment signaled renewed energy in the core of our enthusiast base with new GPU cards shipping from NVIDIA. 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 improve 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. Clearly, one of the main topics of the day is tariffs and how they affect us. And Ti 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 US 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. This means higher grade power supplies and cooling devices need to be used, which is where we specialize. So we started the year in a good position. 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. 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. 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. As I mentioned, T will cover this in detail next. 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 Promptor, 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. 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 what lies ahead. Let me now turn the call over to Ti La before Michael reviews our financials. Ti, please go ahead.