1. Sales rose 40% Q/Q; expected continued growth in 2025. 2. Gross margin improved to 38.5% in 2024, up significantly. 3. T-Rex 3 and Active 2 gaining traction in the market. 4. Refinanced short-term debt into long-term, enhancing financial stability. 5. Share repurchase program shows commitment to shareholder value.
Despite a year-over-year revenue decline, Q4 showed strong quarter-over-quarter growth. The improved margin and sales of new products are positive indicators, reminiscent of previous company recoveries post-introduction of popular devices.
The article highlights key financial improvements and product momentum, which could drive investor interest and stock performance. Financial metrics are moving in the right direction for Zepp, increasing investor confidence.
Increased sales and upcoming new product launches are expected to positively impact revenues in 2025. Past cycles indicate immediate positive effects on stock from strong quarterly results.
("Zepp" or the "Company") (NYSE: ZEPP) today announced its unaudited financial results for the fourth quarter of 2024.
Full Year 2024 Financial and Operating Highlights:
[1] Adjusted operating income/(loss) represents operating income/(loss) excluding: (i) share-based compensation expenses and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements. Please refer to the section titled "Reconciliation of GAAP and non-GAAP results"
[2] Adjusted operating expenses represent operating expenses excluding (i) share-based compensation expenses and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements. Please refer to the section titled "Reconciliation of GAAP and non-GAAP results"
Mr. Wang 'Wayne' Huang, Chairman and CEO of Zepp, commented, "In the fourth quarter of 2024, despite macroeconomic challenges and supply bottlenecks, we kept transitioning to a higher-margin, enhanced brand power model. Our fourth quarter of 2024 sales rose 40% quarter-over-quarter, in line with guidance. In 2024, our gross margin was 38.5%, up from 26.2% in 2023. We ended the year with US$111 million in cash, enabling investment and market response. The T-Rex 3 became a dark horse in the outdoor and sports watch market...
Wayne added, "In branding, we've been beefing up the Amazfit athletes team. Five-time Olympic medallist Gabby Thomas and Italian tennis star Jasmine Polini recently joined as Athlete Ambassadors. We're also deepening the HYROX collaboration and will launch more powerful HYROX products and features. These partnerships have boosted confidence among major offline key account partners in the US and Europe...
Revenues for the fourth quarter of 2024 reached US$59.5 million, a decrease by 28.3% from the fourth quarter of 2023...
Gross margin in the fourth quarter of 2024 was 36.8%, compared to 34.7% in the same period of 2023...
Research and development expenses in the fourth quarter of 2024 were US$11.1 million, a decrease by 0.6% year-over-year...
Selling and marketing expenses in the fourth quarter of 2024 were US$13.3 million, an increase by 10.6% year-over-year...
General and administrative expenses were US$6.6 million in the fourth quarter of 2024...
Operating loss for the fourth quarter of 2024 was US$8.9 million...
Net loss attributable to Zepp Health Corporation for the fourth quarter of 2024 was US$36.9 million...
As of December 31, 2024, the Company had cash and cash equivalents and restricted cash of US$111 million...
The Company announced in its third quarter 2021 earnings release that the board had authorized a share repurchase program of up to US$20 million...
Total revenues of 2024 reached US$182.6 million...
Net loss attributable to Zepp Health Corporation for the full year of 2024 was US$75.7 million...
For the first quarter of 2025, the Company's management currently expects net revenues to be between US$40 million and US$45 million...
The Company's management team will hold a conference call at 7:00 p.m. Eastern Time on Wednesday, March 26, 2025...
About Zepp Health Corporation
Zepp Health Corporation (NYSE: ZEPP) is a global smart wearable and health technology leader...
We use adjusted net income/(loss), a non-GAAP financial measure, in evaluating our operating results...
This announcement contains forward-looking statements...
For investor and media inquiries, please contact:
In China: Zepp Health Corporation, Grace Yujia Zhang, Email: [email protected]