Logitech benefits from webcam, video collaboration demand boom
If you were trying to get a new webcam in recent weeks, you know that supply was tight as many jobs went remote with video conferencing thrown into the daily mix.
And now we have proof that webcam sales were off the charts via Logitech earnings.
Logitech reported fourth quarter sales of $709 million, up 14% from a year ago, with net income of $214 million, or $1.26 a share. Non-GAAP earnings for the fourth quarter were 42 cents a share.
But what really catches your eye is how the move to home offices bolstered Logitech. Webcam sales were up 32% in the fourth quarter. Video collaboration sales in the fourth quarter were up 60% and keyboard sales were up 13%.
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Logitech said:
Our PC Webcams sales increased 34% in Q4 and 8% in Fiscal Year 2020. We experienced particularly strong double-digit growth in the Americas and Asia Pacific in Q4 due to increased remote work, distance learning, and telemedicine adoption. Sell-through upside was especially pronounced during the quarter, starting in the month of March. PC Webcam growth also benefited during the quarter from the introduction of Logitech StreamCam, our new webcam designed specifically for streamers and content creators.
And video collaboration sales boomed "as more workers set up home offices, teachers adopted video for distance learning, and doctors implemented telemedicine. We believe this trend toward video everywhere will continue to be embraced across all room types, including home offices."
For fiscal 2020, Logitech reported sales of $2.98 billion, up 7% from a year ago, with earnings of $2.66 a share. As for the outlook, Logitech projected mid-single-digit sales growth in fiscal 2021 with non-GAAP operating income of $380 million to $400 million.