Corsair Gaming, Inc. (NASDAQ:CRSR) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET

Company Participants

Ronald Van Veen - Vice President of Finance & Investor Relations

Andy Paul - Chief Executive Officer

Michael Potter - Chief Financial Officer

Conference Call Participants

Drew Crum - Stifel

Mario Lu - Barclays

Operator

Good afternoon, ladies and gentlemen, and welcome to the Corsair Gaming Third Quarter 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 will follow the formal presentation. [Operator Instructions]

With that, I would now like to turn the conference over to Ronald Van Veen, Corsair's Vice President of Finance and Investor Relations. Thank you, sir. Please begin.

Ronald Van Veen

Thank you. Good afternoon, everyone, and thank you for joining us for Corsair's financial results conference call for the third quarter ending September 30, 2022. On the call today, we have Corsair's CEO, Andy Paul; and CFO, Michael Potter. Andy will review highlights from the third quarter and the business environment. Michael will then review the financials and our outlook. 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 of the call, may include forward-looking statements related to the expected future results of 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 our other SEC filings. 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'll now turn over the call to Andy.

Andy Paul

Thank you, Ronald, and welcome, everyone, to our Q3 2022 earnings call. I'm very pleased to report that we achieved a 10% sequential revenue growth in Q3 2022 from Q2 2022, while continuing to deal with higher-than-normal inventory levels. Sales levels from our channel to consumers were significantly above pre-pandemic levels in almost all product lines and many were above the year ago level.

As we have reported in recent earnings calls, this year has been marked by excessive inventory in the channel, especially in Europe. We continue to report and make comments on consumer sales from our channel as well as our revenue from sales into the channel to provide clarity on the progress we are making. For example, in the US, we have made great progress in reducing this inventory and stock levels are now closer to a more normal level.