October 23, 2020
Logitech stock soared more than 18 percent after it reported earnings Tuesday, before easing down to $88.02 at the close of business on Friday.
In its quarterly report, the computer equipment company shared some record-shattering figures, showing that it's clearly benefiting from the avalanche of Americans working from home.
But the webcams that they're so well-known for aren't the only products that Logitech ($LOGI) has been cashing in on.
"Really across the business, it was all strong," Bracken Darrell, CEO of Logitech, told Cheddar on Friday, citing the myriad of business segments notching triple-digit growth in the second quarter.
Logitech Second Quarter Sales Performance Category-by-Category:
- Webcam sales up by 258 percent to $102 million
- Video collaboration sales rose 161 percent to a record $237 million
- Tablet and other accessories sales grew 144 percent
- Gaming sales grew 84 percent
- Audio and wearables sales increased by 67 percent
Even the longstanding Logitech mouse and keyboard business is up 30 to 45 percent, according to the company. Its newer businesses, Darrell said, are part of a strategy at the company to bet on the future.
"About five or six years ago, we started accumulating businesses and putting them up against these long-term secular trends," Darrell said, naming video conferencing eventually replacing audio calls as an example.
Sales in the gaming sector were also a bright spot in this earnings report.
"Games are gonna be the biggest collection of sports in the world, so we're in the gaming business," Darrell explained.
In addition to sponsoring a majority of the highest performing teams in major esports tournaments like League of Legends, Logitech also takes input from the players when designing new products.
"We develop products directly with the pros so we can be sure we're delivering at the very top of the curve in terms of performance," Darrell said.
Since taking over as Logitech's chief executive in January of 2013, when the company's stock price sputtered below $8 a share, the CEO is credited with turning around the company by placing these long-term bets.
Asked about maintaining the same momentum that had Wall Street jumping on the stock this week, Darrell said he has "no concern" about the long-term growth of Logitech and the trends the company remains bullish on.
"[The trends] have accelerated here in the pandemic, but they'll keep going after the pandemic's over," he said.