Razer, which came to the fore with its social responsibility projects last year, managed to pass the $ 1 billion threshold in the 2020 financial year.
RazerResults for the fiscal year ending 31 December 2020. he explained. Razer’s Co-Founder and CEO Min-Liang Tan said, “2020 was a great year for Razer and a turning point for the business world. Despite the global market uncertainty caused by the COVID-19 outbreak, Razer has passed the $ 1 billion revenue threshold and has become profitable beyond all expectations on a GAAP basis. This performance reflects our dominant brand position, interesting product offerings in our hardware, software and services ecosystem, and strong company management, ”he said.“ By 2021, while continuing to deliver both massive revenue growth and sustained profitability, in 2021 and beyond. We plan to maintain the momentum and strength of our activities. “
Razer announces 2020 financial year results
“In addition to delivering strong results for the whole of 2020, we continue to be a global Environmental, Social and Corporate Governance (” ESG “) leader in the corporate space. Not only are we fully compliant with the ESG standards set by the Hong Kong Stock Exchange, we are also the world’s largest We went even further with our #GoGreenWithRazer manifesto to outline how we can contribute to a more sustainable future as one of the youth and millennial brands. ”
Highlights of the 2020 Financial Year’s earnings
- A record high revenue of $ 1.2 billion, with an annual growth of 48%, thanks to strong demand, as well as market share gains in Hardware and continued exponential growth in the Services segment.
- Gross Profit Margin increased to 22.3%, driven by improved margins in the Hardware segment and the increased contribution of the higher margin Services sector to the Group.
- GAAP Net Profit of $ 0.8 million beyond all expectations, fueled by exceptional revenue growth and productivity improvements.
- Cash flow from operating activities; Strong operating profits increased positively to $ 152.9 million thanks to effective working capital management and cash discipline.
- Cash Balance exceeded $ 600 million without debt, making it one of the strongest balance sheets in the industry.
- Revenue increased 51.8% over the previous year to $ 1,083.7 million.
- The peripherals department has seen strong growth in the core categories of mice, keyboards and headsets.
- The core peripherals department captured significant market share in the competition while retaining its position as the market leader for gaming peripherals in the US, Europe, Asia-Pacific and China.
- The Systems department maintained its position as the market leader in the premium gaming laptop segment in the US, while increasing its market share in new markets outside of the US2.
- Systems department; Despite the initial impact of the Kovid 19 pandemic on the supply chain at the beginning of the year, it has seen strong growth momentum on an annual basis, with double-digit percent growth since May, as a result of suppressed demand from consumers.
- Group; It has seen further expansion in growth areas such as mobile / cloud gaming, console games, live streaming products, and gaming chairs.
- With the impact of the strong growth in all software offerings in light of increased gaming, e-sports and live broadcast activities, total user accounts increased by 53.8% annually to approximately 123 million, and the number of active users per month increased by over 68.2%.
- Razer continued to focus on further enriching the user experience and increasing commitment to the Razer ecosystem.
- In September, the Razer Cortex PC saw a huge increase in user activity and engagement with the opening of the Squad Rewards leaderboard, where users could team up with friends to earn Razer Silver loyalty rewards over time by playing games.
- Razer ChromaTM RGB continues to expand its connected device program through new partnerships with WD Black, Seagate, Twinkly and Yeelight, increasing the total number of hardware partnerships to over 50.
- Razer also provides payment services for teens, Generation Y, and Generation Z.
- The Services department, consisting of Razer Gold and Razer Fintech, grew 66.8% year on year and reached $ 128.4 million this year.
- Its gross profit margin was 43.8%, contributing 20.8% to the Group’s gross profit. This shows that the Group’s gross profit increased from 19.4% in 2019.
- The total payment volume (“TPV”) increased by 102.4% year-on-year. This increase was mainly due to the increase in the number of transactions.
- It further expanded its footprint and covered more than 5 million channel touchpoints, adding users from more than 130 countries and 1.6 million channel touchpoints specifically in the Middle East and North Africa region (“MENA”).
- Apex Legends remained a brand of choice for content partners, with more than 34,000 digital entertainment products, including new popular games such as Call of Duty: Modern Warfare, Genshin Impact, and Ragnarok, as well as live streaming apps like MeMe Live.
- It earned $ 4.3 billion in TPV, with an annual increase of 104.4%.
- This result; The company was driven by an annual growth of approximately 191.0%, with the participation of more than 50,000 new vendors in the e-commerce, retail and food and beverage industries.
- Razer Fintech has also benefited from increases in online shopping and digital entertainment consumption activities due to the lockdown caused by the COVID-19 pandemic.
- Fully compliant with the Hong Kong Stock Exchange’s ESG guidelines.
- With the #GoGreenWithRazer initiative, the group goes every step of the way, focusing on the environment and sustainability.
- The sustainability roadmap will focus on four areas:
- The Green Organization: A commitment to use recycled and recyclable materials by the end of 2021, renewable energy by 2025, and carbon neutrality by 2030.
- Green Products: Consumer transparency with carbon consumption charts by 2022, 100% of Razer products can be recycled with Razer by 2025, and 100% of Razer products are made from recycled or recyclable materials by 2030.
- Green Community: Training fans through various activities, such as saving one million trees with the Sneki Snek campaign, run in partnership with Conservation International.
- Green Investments: supporting and investing in environmental and sustainability initiatives in the areas of renewable energy, carbon reduction, plastic management and water solutions.
Razer closely monitors the market situation in light of the COVID-19 environment and its initiatives to drive massive revenue growth and continued profitability include:
Huge Income Increase:
- New Hardware product introductions
- The growth of the software user base
- More investment to scale the rapidly growing Services department
- Improving hardware margins
- Strong OPEX discipline
- Expansion of higher margin Hardware and Services as part of revenue mix
- R&D investments for the development of New Hardware and new Services
- Continuation of share repurchases
- Investment / M&A activities
Razer Blackwidow 3 inceleme
Razer Viper 8K review
Razer Huntsman V2 review