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 full year results for the financial year ended 31 December 2021 ("FY2021").

"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."

Key highlights for FY2021 earnings

The Company

• Recorded a revenue of US$1,619.6 million with 33.3% year-on-year growth, driven by demand in first half of 2021 due to the pandemic, market share increase for the Hardware business, and continued expansion of channels and content for the Services business.
• 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.
• Adjusted EBITDA (a non-GAAP measure) was US $96.1 million, an increase of 115.5% from US $44.6 million in the prior year.
• Net Profit was US$43.4 million, compared to US $0.8 million in the prior year, driven by revenue growth, ongoing gross margin expansion and productivity improvement.
• Razer defines adjusted EBITDA as profit/(loss) from operations added back with depreciation and amortisation, share-based compensation expense, restructuring expense, impairment of long-lived assets and merger and acquisitions expense.

Hardware:

• Revenue grew 34.0% year-on-year to US $1,452.4 million.
• Peripherals business maintained its market-leading position in gaming peripherals across the U.S., Europe and Asia-Pacific regions, fueled by the market launch of multiple products across its flagship keyboard and mouse families.
• Systems business has maintained its market leading position in the U.S. premium gaming laptop segment while growing its market share in new markets outside of the U.S.
• Made further inroads to expand its growth categories, particularly gaming chairs, console and broadcaster products.

SOFTWARE: Total user accounts increased 44.1% year-on-year to approximately 177.7 million with monthly active users surging by over 30.0%.
The increase was attributable to strong growth across its Software offerings, boosted by increases in gaming, rewarded play and livestreaming activities.

SERVICES: Services business, comprising of Razer Gold and Razer Fintech, grew 26.6% year-on-year to US $162.5 million for the full year 2021
Gross margin was 38.5% and contributed 16.1% of the Group's gross profit.