PC peripheral-maker Razer has finally turned a profit for the first time since it debuted on public markets in 2014.
Similar to Sony, Ubisoft, Take-Two, Activision, and the rest of the games industry, 2020 was a big year for Razer. The company pulled in $1.2 billion in revenues in 2020 (+48% year-over-year) and made $800,000 in profit. Hardware, which includes PCs and peripherals, accounted for nearly all of Razer's revenues with $1.08 billion in sales.
2020's peripheral sales were up a massive 73% over 2019, accounting for a staggering $773 million in total revenues for the year. PC systems made less than half of that, or $310 million. Razer boasts that it has over $600 million in available cashflows on hand with zero debt, which it plans to use to make new hardware and invest in services. It will make use of the cashflow to also bolster R&D of its core gaming segments.
"2020 was a stellar year for Razer and one that marked an inflection point for the 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. This performance reflects our dominant brand position, compelling offerings across our ecosystem of hardware, software and services, and strong execution. 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," said Min-Liang Tan, Co-Founder and CEO of Razer.
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