Razer™ ,the global lifestyle brand for gamers, has announced unaudited financial results for the six months ended June 30 (“1H 2020”).
“2020 has been a year like no other for all of us around the world. Despite the global market uncertainty caused by the COVID-19 pandemic, Razer has had a spectacular start to the year, driven by dominant brand position, user base expansion and stay-at-home trends,“ said Min-Liang Tan, Co-Founder and chief executive officer of Razer.
“The global ‘stay-at-home’ situation has boosted user engagement with gaming and esports to record levels. With our gamer/ youth-centric ecosystem of hardware, software and services, Razer is well-positioned to capture the opportunities of these secular trends. The fundamentals of our business remain as solid as ever, thanks to our entrenched brand leadership, compelling offerings across hardware, software and services and strong execution. We are confident that these factors, coupled with our strong operating cost discipline and our strong cash position of over US$500 million, put us in good stead, even during times of challenging global economic conditions,” he added.
The company recorded a high revenue of US$447.5 million with 25.3 percent year-on-year growth, beating expectations driven by strong growth across the entire Peripherals portfolio, strong double-digit percentage year-on-year growth for Systems in May and June and phenomenal growth in the Services business. It’s gross profit margin improved to 22.0 percent, as a result of increased Services contribution which offset the increase in freight costs to facilitate surges in demand for its products.
In the hardware segment, revenue grew by 26.0 percent year-on-year to US$382.7 million. Peripherals business recorded strong growth across core categories in mouse, keyboard and headset during the first half of 2020. The stay-at-home situation had also boosted sales of live-streaming portfolio such as the Kiyo camera and Seiren streaming microphone.
As for the software segment, total user accounts increased 42.8 percent year-on-year to approximately 100 million with monthly active users surging by over 45 percent, driven by strong growth across all software offerings in light of increased gaming, esports and livestreaming activities.
Razer Gold had recorded a 125.9 percent year-on-year increase in total payment volume (“TPV”) driven primarily by the increase in the number of transactions.
Razer Fintech generated US$1.8 billion in TPV (FY2019: US$2.1 billion) in the first half of the year, representing an increase of 114.3 percent year-on-year, driven by the onboarding of new merchants and surges in online shopping and digital entertainment consumption activities due to the Covid-19 lockdown.