Razer announced that the company has recorded a revenue of US$1,619.6 million with 33.3% year-on-year growth for the financial year ended 31 December 2021. The company attributed that the demand in first half of 2021 was driven due to the pandemic, market share increase for the hardware business, and continued expansion of channels and content for the services business.
The company experience a gross profit margin increased to 24.0% from 22.3% in the prior year, driven by ongoing expansion of hardware margins, partially offset by the sudden spike in freight rates due to industry-wide supply chain and logistics challenges.
“As we navigate the uncertainties and challenges attributable to geopolitical tensions, macro environment as well as the ongoing COVID-19 pandemic, we expect the lingering industry-wide supply chain shocks to continue to have an ongoing impact on our business, with freight and logistics to remain a challenge through 2022. On the demand front, we saw a deceleration in the growth momentum for our products and services since the second half of 2021 compared to exceptional growth in the prior year, we expect this trend to continue through 2022 as a result of the high base effect seen in 2021,” said Min-Liang Tan, Co-Founder and CEO of Razer.
“Looking ahead, we will continue to invest into new growth areas and to build out Razer’s unique gaming ecosystem. However, before we start to see the fruits, these growth areas will take time to fully realise and it will require additional spending in our operating expenses and may affect the short- to medium-term business performance.“