Keywords Studios announced in a blog post on March 24 that the company’s revenue increased 14.4% during 2020 — up to €373.5 million (around $440 million). Keywords provides localization and other services to companies throughout the video gaming industry, with a long list of clients including industry cornerstones like Nintendo, SEGA, and Ubisoft. The company’s joint interim CEO Jon Hauck credited the company’s strong growth to resilience and agility in response to the COVID-19 pandemic and noted that they’re in a good position for future growth.
Riding into 2021 on a wave of momentum, Hauck says he’s confident that this year will see even more growth for the company, “due to the continued trend towards outsourcing and an increased focus on content creation in a growing video games market.” The video game services powerhouse also acquired numerous other companies in the industry, including Coconut Lizard, Indigo Pearl, Maverick Media, and Jinglebell. Hauck said he takes pride in the company’s strong growth in such a challenging year and that he expects to see the company continue making acquisitions in 2021.
“The Group’s strong position in the buoyant video games market, our increasingly sought-after 9,000-people-strong resource base, a robust business model that has proven capable of continued growth in the face of the pandemic, together with our financial strength, places us well for further growth and long-term success,” he said.
Experts seem bullish on the company’s long-term success as well, with Barclays and Berenberg noting that the company looks to be set for many more years of revenue growth in double-digit percentages. Berenberg has upgraded their recommendation on Keywords Studios stock from “hold” to “buy,” adding that the company could significantly outperform consensus estimates in the next two years, especially if they deliver on making continued acquisitions within the industry. Berenberg also increased its price target for Keywords from 2,890p to 3,110p, reflecting their confidence in Keywords’ sustained growth.
