Razer publishes its results for the year 2021 | Business

HONG KONG–(BUSINESS WIRE)–March 17, 2022–

Razer™ (“Razer” or the “Company”, together with its subsidiaries, the “Group”, Hong Kong stock code: 1337), the leading global lifestyle brand for gamers, announces its annual results for the fiscal year ended December 31, 2021 (“Fiscal Year 2021”).

“As we navigate uncertainties and challenges attributable to geopolitical tensions, the macroeconomic environment as well as the ongoing COVID-19 pandemic, we expect that persistent supply chain shocks to industry-wide continue to have an ongoing impact on our business, along with freight and logistics. remain a challenge throughout the year. On the demand front, we have seen a deceleration in the growth momentum of our products and services since the second half of 2021 compared to exceptional growth the previous year; we expect this trend to continue through 2022 due to the high base effect seen in 2021,” said Min-Liang Tan, co-founder and CEO of Razer.

“Looking forward, we will continue to invest in new areas of growth and grow Razer’s unique gaming ecosystem. However, before we begin to see the fruits, these areas of growth will take time to materialize. fully and this will require additional spending in our operating expenses and could affect the performance of the business in the short and medium term.

Key Highlights for Fiscal 2021 Results

BUSINESS

  • Recorded revenue of US$1,619.6 million with 33.3% year-over-year growthdriven by demand in the first half of 2021 due to the pandemic, the increase in market share for the Hardware business and the continued expansion of channels and content for the Services business.
  • Gross profit margin increased to 24.0% vs. 22.3% in the prior year, driven by continued hardware margin expansion, partially offset by surging freight rates due to industry-wide supply chain and logistics challenges ‘industry.
  • Adjusted EBITDA* (a non-GAAP measure) was US$96.1 millionan increase of 115.5% over US$44.6 million the previous year.
  • Net profit was US$43.4 millioncompared to US$0.8 million the previous year, driven by revenue growth, continued gross margin expansion and improved productivity.

KEY SEGMENTS

EQUIPMENT:

  • Revenue increased 34.0% year-on-year to $1,452.4 million.
  • The Peripherals business maintained its leading position in the gaming peripherals market in the United States, Europe and Asia-Pacific 1, fueled by the market launch of several products in its flagship keyboard and mouse lines .
  • The Systems business maintained its leading position in the high-end gaming laptop market in the United States while increasing its market share in new markets outside the United States 2.
  • Continued to make inroads to expand its growth categories, especially gaming chairs, consoles and streaming products.

SOFTWARE:

  • The total number of user accounts increased by 44.1% year-on-year to approximately 177.7 million, with the number of monthly active users increasing by more than 30.0%.
  • The increase was driven by strong growth in its software offerings, driven by increased gaming, reward gaming and live streaming business.

SERVICES:

  • Services business, including Razer Gold and Razer Fintech, grew 26.6% year-over-year to $162.5 million for the full year of 2021.
  • The gross margin was 38.5% and contributed 16.1% of the Group’s gross margin.

ESG

  • Making sustainability key to gaming and reinforced that commitment in 2021 when it showcased its 10-year sustainability plan to protect and preserve the environment via #GoGreenWithRazer.
  • The Group has made significant progress in achieving its ESG objectives, including:
    • upgraded its upcoming sustainability report to GRI Core standards, one of the world’s leading sustainability reporting standards;
    • Made its first disclosure under the Carbon Disclosure Project (“CDP”), ensuring transparency through the disclosure of environmental data;
    • Joined the Science Based Targets Initiative with a commitment to set decarbonization targets by meeting a climate scenario below 1.5°C and achieving net carbon neutrality by 2030; and
    • Include climate-related risks in Razer’s enterprise risk management process by proactively recognizing and mitigating the potential impact of climate-related risks.
  • As part of the Group’s efforts to galvanize the community to contribute and support its sustainability initiatives, the Group partnered with Conservation International in October 2020 and launched the Sneki Snek campaign. In January 2022, the Group saved more than 900,000 trees.

OUTLOOK

MACRO CHALLENGES AND UNCERTAINTIES:

  • The impact of industry-wide supply chain challenges on businesses will persist.
  • Freight and logistics are expected to remain a challenge throughout the year.
  • Slower growth momentum since the second half of 2021 which will continue until 2022 due to a high base effect.

NEW GROWTH AREAS:

  • Expanding hardware deals to furniture and other player lifestyle categories.
  • Continued regional expansion for Razer Gold.
  • Scaling POS and geographic expansion for Razer Fintech.

IMPACT ON COMMERCIAL PERFORMANCE:

  • Additional expenses in operating expenses.
  • New growth poles will require significant investment.
  • New growth areas will take time to prove their business case.

For further details, please refer to the 2021 financial year results announcement for the Group’s results which are published in accordance with the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.

Details of Razer’s ESG initiatives are available on the website: http://www.razer.com/go-green.

ABOUT RAZER

Razer™ is the world’s leading lifestyle brand for gamers.

Razer’s three-headed snake mark is one of the most recognized logos in the global gaming and esports communities. With a fan base that spans every continent, the company has designed and built the largest gamer-focused ecosystem of hardware, software and services in the world.

Razer’s award-winning hardware includes high-performance gaming peripherals and Blade gaming laptops.

Razer’s software platform, with over 175 million users, includes Razer Synapse (an Internet of Things platform), Razer Chroma RGB (a proprietary RGB lighting technology system supporting thousands of devices and hundreds of games/apps) and Razer Cortex (a game enhancer and launcher).

Razer also offers payment services for gamers, youth, millennials and gen Z. Razer Gold is one of the largest gaming payment services in the world, and Razer Fintech provides fintech services in emerging markets .

Founded in 2005, Razer has two headquarters in Irvine, California and Singapore, with regional headquarters in Hamburg and Shanghai. Razer has 18 offices around the world and is recognized as the leading brand for gamers in the United States, Europe and China. Razer is listed on the Hong Kong Stock Exchange (stock code: 1337).

Razer – For gamers. By the players

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*Razer defines Adjusted EBITDA as profit/(loss) from operations plus depreciation, amortization, stock-based compensation, restructuring charges, impairment of long-lived assets, and merger and acquisition.

1, 2 Internal sources and market studies

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CONTACT: Canny Lo

[email protected]

KEYWORD: HONG KONG UNITED STATES NORTH AMERICA ASIA PACIFIC CALIFORNIA

INDUSTRY KEYWORD: TECHNOLOGY GAMES OTHER RETAIL ENTERTAINMENT SPECIALTY SOFTWARE HARDWARE RETAIL CONSUMER ELECTRONICS ONLINE RETAIL

Source: Razer

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PUB: 03/17/2022 00:00/DISC: 03/17/2022 00:02

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