• Published on 26 August 2020
• 3494 Views
• Print

Razer beats expectations with record high revenue of $447.5 million for H1 2020

Razer, the global lifestyle brand for gamers, announces unaudited financial results for the six months ended 30 June 2020 (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 CEO 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 $500 million, put us in good stead, even during times of challenging global economic conditions," he added.

Key highlights for 1H 2020 earnings

• Record high revenue of $447.5 million with 25.3% 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
• Gross Profit Margin improved to 22.0%, as a result of increased Services contribution which offset the increase in freight costs to facilitate surges in demand for its products
• Positive Adjusted EBITDA of $3.2 million, beating expectations fuelled by exceptional revenue growth and continued cost efficiency improvements
• Cashflow from operating activities turned positive to $66.0 million, with operating profit growth and strong working capital management leading to record cash conversion cycles from -51 days in the first half of 2019 to -72 days in the first half of 2020
• Cash Balance of over $500 million with no debt, an incredibly strong balance sheet to weather the uncertainties of the pandemic environment

Re-disseminated by The Asian Banker