Gaming firm Razer to announce it is break-even for FY2020

Razer, the lifestyle brand for gamers, said it expects to hit breakeven for the financial year ended December 31, 2020 on a GAAP (generally accepted accounting principles) basis, compared to an US$83.5 million loss the year before.

The improvement is mainly due to “the higher than expected” revenue growth, the increase in the company’s gross profit margin, and the enhancement of its operating expenses management, the firm said in a statement.

Photo credit: Razer

The Singapore-born company claimed that its revenue is expected to have grown by at least 40% year on year during the report period, owing to the growth across the Razer ecosystem of hardware, software, and services.

“Looking ahead, we are confident in our ability to maintain our dominant market position in the hardware business, grow our software platform through expansion in the user base and activity levels, and continue investing to scale up our fast-growing high-margin services business,” said Min-Liang Tan, co-founder and CEO of Razer.

Founded in 2005, the Hong Kong-listed Razer provides a gaming and esports community for gamers. It has headquarters in both California and Singapore and 17 offices worldwide.

With over 100 million users, its software platform consists of Razer Synapse, a platform for connected devices, the device lighting program Razer Chroma RGB, and the game optimizer and launcher Razer Cortex.

In terms of services, the company offers Razer Gold, a virtual credit feature for gamers, and Razer Fintech, an offline-to-online digital payment network in Southeast Asia.

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In November last year, the firm said it expected to be profitable in FY2020. It recorded US$447.5 million in revenue for the first half of 2020.