Razer posts record high revenue of US$1.2b in 2020
This was driven by higher demands and market share gains for hardware business.
Singapore-based gaming company Razer recorded a $1.6b (US$1.2b) revenue, higher by 48% compared to the previous year’s $1.1b (US$820m) over robust demand and increased market share for the hardware business.
“Despite the global market uncertainty caused by the COVID-19 pandemic, Razer crossed the US$1 billion revenue milestone and turned profitable on a GAAP basis, ahead of all expectations,” Chief Executive Officer and co-founder Min-Lian Tan said. “This performance reflects our dominant brand position, compelling offerings across our ecosystem of hardware, software and services, and strong execution.”
The company also continued growth in its services segment.
The group earned a profit of $1.08m ($805,000) for the year, recovering from a $112.2m (US83.4m) loss in 2019. The profit attributable to shareholders amounted to $7.5m (US$5.6m) in 2020.
Gross profit margin improved to 22.3%, which was linked to improving margins in the hardware segments and increased contribution of the services business.
Cashflow from operating activities amounted to $205m (US$152.9m), driven by strong operating profits, efficient working capital management and cash discipline, whilst cash balance increased to over $807m (US$600m) with no debt.
“We intend to carry on the momentum and the strength of our operations into 2021 as we continue to seek to deliver both outsized revenue growth and continued profitability in 2021, and beyond,” Tan said.
He added the group remains a global leader in terms of environmental, social and corporate governance, going by the standards of the Hong Kong Stock Exchange. The group also has its own initiatives through the #GoGreenWithRazer manifesto.
Further, Razer reported its revenue in its hardware segment grew 51.8% YOY to $1.45m (US$1.08m). Total user accounts increased 53.8%YOY to $123m.
Meanwhile, its services business, Razer Gold and Razer Fintech, recorded a 66.8%YOY to $172.8m (US$128.4m).
For 2021, Razer is looking into introduce new hardware products, grow its software userbase and further invest in fast-growing services business amongst others.