Canaan Inc. Reports Unaudited Second Quarter 2024 Financial Results
Canaan Inc. (NASDAQ: CAN) reported its unaudited Q2 2024 financial results, showing a 104.8% increase in revenue to $71.9 million, surpassing the $70 million guidance.
The company sold 6.2 million Thash/s of computing power, up 83.9% sequentially. Operating loss narrowed by 60.9% YoY to $46.6 million. Mining revenue was $9.3 million, down from $10.5 million in Q1 2024. Gross loss reduced to $19.1 million.
Expenses were reduced significantly with G&A expenses down by 27% sequentially. The company held 1,133.5 bitcoins and cash of $66.8 million as of June 30, 2024. Total operating expenses decreased to $27.5 million.
Product delivery and market expansion, especially in North America and the Middle East, contributed to growth. Canaan expects Q3 2024 revenue to be approximately $73 million.
Canaan Inc. (NASDAQ: CAN) ha riportato i suoi risultati finanziari non verificati per il secondo trimestre del 2024, evidenziando un aumento del 104,8% dei ricavi a 71,9 milioni di dollari, superando le previsioni di 70 milioni di dollari.
L'azienda ha venduto 6,2 milioni di Thash/s di potenza di calcolo, con un incremento del 83,9% rispetto al trimestre precedente. La perdita operativa si è ridotta del 60,9% rispetto all'anno precedente, raggiungendo 46,6 milioni di dollari. I ricavi da mining sono stati pari a 9,3 milioni di dollari, in calo rispetto ai 10,5 milioni di dollari del primo trimestre del 2024. La perdita lorda è stata ridotta a 19,1 milioni di dollari.
Le spese sono state significativamente ridotte, con le spese generali e amministrative in calo del 27% rispetto al trimestre precedente. L'azienda deteneva 1.133,5 bitcoin e liquidità di 66,8 milioni di dollari al 30 giugno 2024. Le spese operative totali sono diminuite a 27,5 milioni di dollari.
La consegna dei prodotti e l'espansione del mercato, in particolare in Nord America e Medio Oriente, hanno contribuito alla crescita. Canaan prevede ricavi per il terzo trimestre del 2024 pari a circa 73 milioni di dollari.
Canaan Inc. (NASDAQ: CAN) reportó sus resultados financieros no auditados del segundo trimestre de 2024, mostrando un aumento del 104,8% en los ingresos a 71,9 millones de dólares, superando la guía de 70 millones de dólares.
La compañía vendió 6,2 millones de Thash/s de poder de cómputo, un aumento del 83,9% secuencialmente. La pérdida operativa se redujo en un 60,9% interanual a 46,6 millones de dólares. Los ingresos por minería fueron de 9,3 millones de dólares, en comparación con los 10,5 millones de dólares del primer trimestre de 2024. La pérdida bruta se redujo a 19,1 millones de dólares.
Los gastos se redujeron significativamente, con los gastos generales y administrativos disminuyendo en un 27% secuencialmente. La compañía tenía 1.133,5 bitcoins y efectivo de 66,8 millones de dólares al 30 de junio de 2024. Los gastos operativos totales disminuyeron a 27,5 millones de dólares.
La entrega de productos y la expansión del mercado, especialmente en América del Norte y Medio Oriente, contribuyeron al crecimiento. Canaan espera que los ingresos del tercer trimestre de 2024 sean aproximadamente de 73 millones de dólares.
Canaan Inc. (NASDAQ: CAN)는 2024년 2분기 비감사 재무 실적을 발표하며 매출이 104.8% 증가한 7190만 달러로, 7000만 달러의 가이던스를 초과했다고 밝혔습니다.
회사는 620만 Thash/s의 컴퓨팅 파워를 판매했으며, 이는 직전 분기 대비 83.9% 증가한 수치입니다. 운영 손실은 전년 대비 60.9% 축소되어 4660만 달러에 달했습니다. 채굴 수익은 930만 달러로, 2024년 1분기의 1050만 달러에서 감소했습니다. 총 손실은 1910만 달러로 줄어들었습니다.
비용은 크게 감소했으며, G&A 비용은 직전 분기 대비 27% 감소했습니다. 회사는 2024년 6월 30일 기준으로 1133.5 비트코인과 6680만 달러의 현금을 보유하고 있었습니다. 총 운영 비용은 2750만 달러로 줄어들었습니다.
제품 배송 및 시장 확장, 특히 북미 및 중동 지역에서의 성장이 기여했습니다. Canaan은 2024년 3분기 매출을 약 7300만 달러로 예상하고 있습니다.
Canaan Inc. (NASDAQ: CAN) a annoncé ses résultats financiers non audités du deuxième trimestre 2024, montrant une augmentation de 104,8 % des revenus à 71,9 millions de dollars, dépassant les prévisions de 70 millions de dollars.
La société a vendu 6,2 millions de Thash/s de puissance de calcul, en hausse de 83,9 % par rapport au trimestre précédent. La perte d'exploitation a été réduite de 60,9 % par rapport à l'année précédente, atteignant 46,6 millions de dollars. Les revenus miniers s'élevaient à 9,3 millions de dollars, en baisse par rapport à 10,5 millions de dollars au premier trimestre 2024. La perte brute a été réduite à 19,1 millions de dollars.
Les dépenses ont été considérablement réduites, les dépenses générales et administratives ayant diminué de 27 % par rapport au trimestre précédent. L'entreprise détenait 1.133,5 bitcoins et un cash de 66,8 millions de dollars au 30 juin 2024. Les dépenses opérationnelles totales ont diminué à 27,5 millions de dollars.
La livraison de produits et l'expansion du marché, en particulier en Amérique du Nord et au Moyen-Orient, ont contribué à la croissance. Canaan prévoit des revenus d'environ 73 millions de dollars pour le troisième trimestre 2024.
Canaan Inc. (NASDAQ: CAN) hat seine unauditierten Finanzzahlen für das zweite Quartal 2024 veröffentlicht, die einen Anstieg der Einnahmen um 104,8% auf 71,9 Millionen US-Dollar zeigen und damit die Guidance von 70 Millionen US-Dollar übertreffen.
Das Unternehmen verkaufte 6,2 Millionen Thash/s an Rechenleistung, was einem sequentiellen Anstieg von 83,9% entspricht. Der operative Verlust verringerte sich im Jahresvergleich um 60,9% auf 46,6 Millionen US-Dollar. Die Mining-Einnahmen beliefen sich auf 9,3 Millionen US-Dollar, ein Rückgang von 10,5 Millionen US-Dollar im ersten Quartal 2024. Der Bruttoverlust verringerte sich auf 19,1 Millionen US-Dollar.
Die Ausgaben wurden erheblich gesenkt, wobei die allgemeinen und administrativen Ausgaben sequentiell um 27% zurückgingen. Das Unternehmen hielt zum 30. Juni 2024 1.133,5 Bitcoin sowie Cash in Höhe von 66,8 Millionen US-Dollar. Die gesamten Betriebsausgaben sanken auf 27,5 Millionen US-Dollar.
Produktlieferungen und Markterweiterungen, insbesondere in Nordamerika und dem Nahen Osten, trugen zum Wachstum bei. Canaan erwartet für das dritte Quartal 2024 Einnahmen von etwa 73 Millionen US-Dollar.
- Revenue increased by 104.8% QoQ to $71.9 million.
- Operating loss narrowed by 60.9% YoY to $46.6 million.
- Total computing power sold increased by 83.9% sequentially.
- Significant reduction in G&A expenses by 27% sequentially.
- Cash position strong with $66.8 million as of June 30, 2024.
- Mining revenue decreased to $9.3 million from $10.5 million in Q1 2024.
- Gross loss of $19.1 million despite revenue growth.
- Net loss increased to $41.9 million from $39.4 million in Q1 2024.
Insights
Canaan's Q2 2024 results show mixed signals. Revenue of
Positively, gross margins improved due to higher average selling prices and operating expenses decreased
While progress is evident, Canaan still faces challenges post-Bitcoin halving. The Q3 revenue guidance of
Canaan's technological progress is evident in their Q2 results. The successful delivery of A14 products and introduction of the new A1566 model demonstrate the company's commitment to innovation. The
However, the company faces intense competition in the high-performance computing space. The continued investment in R&D (
Investors should watch for the performance of new products and Canaan's ability to maintain its technological competitiveness in the rapidly evolving cryptocurrency mining hardware market.
- Revenue Surpasses Guidance, up
- Profitability Improves with Operating Loss Narrows by
Second Quarter 2024 Operating and Financial Highlights
Revenues were
Total computing power sold was 6.2 million Thash/s, representing a sequential increase of
Loss from operations was
Nangeng Zhang, chairman and chief executive officer of Canaan, commented, "During the Bitcoin halving quarter, we witnessed significant fluctuations in both Bitcoin prices and the total network hash rate as market variables evolved. Despite this turbulence, we executed on our product delivery plan, enhanced our global sales campaign, and optimized operations, achieving a topline performance of
"Bitcoin's fourth halving has now been completed, and the global political and economic dynamics surrounding Bitcoin continue to unfold, attracting the attention of a wider audience. We navigated the halving quarter with solid results and the introduction of advanced products, continuing to invest heavily in both R&D and production capacity. With strong confidence in the opportunities that Bitcoin presents and the beginning of a bull market, we believe we are on a trajectory of renewed growth."
James Jin Cheng, chief financial officer of Canaan, stated, "In the second quarter of 2024, our impressive topline growth was primarily driven by the concentrated delivery of our A14 products, which contributed the largest share to our revenue. This shift in product mix led to a notable boost in the average selling price of computing power and improved gross margins. Our mining business successfully weathered the Bitcoin halving, maintaining a gross margin similar to the previous quarter before the halving, leading to continued growth in our Bitcoin holdings. By the end of the second quarter, we held a record high of 1,114.2 Bitcoins. Operationally, our expense control measures were effective, with G&A expenses decreasing by
"Our balance sheet liquidity was further bolstered by cash inflows from product sales during the second quarter. While adopting a stringent approach to operational expenditure, we continued to invest actively in Research & Development, as well as securing supply capacity, leading to a further optimized inventory mix. We are focused on improving profitability, strengthening our balance sheet, fulfilling customer orders, and achieving success alongside our customers in the coming bull market."
Second Quarter 2024 Financial Results
Revenues in the second quarter of 2024 were
Products revenue in the second quarter of 2024 was
Mining revenue in the second quarter of 2024 was
Cost of revenues in the second quarter of 2024 was
Product cost in the second quarter of 2024 was
Mining cost in the second quarter of 2024 was
Gross loss in the second quarter of 2024 was
Total operating expenses in the second quarter of 2024 were
Research and development expenses in the second quarter of 2024 were
Sales and marketing expenses in the second quarter of 2024 were
General and administrative expenses in the second quarter of 2024 were
Impairment on property, equipment and software in the second quarter of 2024 was
Loss from operations in the second quarter of 2024 was
Excess of fair value of Series A Convertible Preferred Shares in the second quarter of 2024 was nil, compared to
Change in fair value of cryptocurrency in the second quarter of 2024 was an unrealized loss of
Foreign exchange gains, net in the second quarter of 2024 were
Net loss in the second quarter of 2024 was
Non-GAAP adjusted EBITDA in the second quarter of 2024 was a loss of
Foreign currency translation adjustment, net of nil tax, in the second quarter of 2024 was a loss of
Basic and diluted net loss per American depositary share ("ADS") in the second quarter of 2024 were
As of June 30, 2024, the Company held cryptocurrency assets that primarily comprised 1,133.5 bitcoins with a total fair value of
As of June 30, 2024, the Company had cash of
Accounts receivable, net as of June 30, 2024 was
Contract liabilities as of June 30, 2024 were
Shares Outstanding
As of June 30, 2024, the Company had a total of 273,741,843 ADSs outstanding, each representing 15 of the Company's Class A ordinary shares.
Recent Developments
Preferred Shares Financing
On November 27, 2023, the Company entered into a Securities Purchase Agreement with an institutional investor (the "Buyer"), pursuant to which the Company shall issue and sell to the Buyer up to 125,000 Series A Convertible Preferred Shares (the "Preferred Shares") at the price of
On December 11, 2023, the Company closed the first tranche of the preferred shares financing (the "First Tranche Preferred Shares Financing") and is obligated to issue the second tranche of the preferred shares financing (the "Forward Purchase Liabilities"), raising total net proceeds of
In connection with the issuance of the Preferred Shares, the Company caused The Bank of New York Mellon to deliver 8,000,000 ADSs collectively as pre-delivery shares (the "Pre-delivery Shares"), each representing fifteen Class A ordinary shares of the Company, at the price of
On January 22, 2024, the Company closed the second tranche of the preferred shares financing (the "Second Tranche Preferred Shares Financing"), raising total net proceeds of
The Company intends to use the net proceeds from the sale of the securities for the expansion of wafer procurement, R&D activities, and other general corporate purposes.
According to the Securities Purchase Agreement, the closing of the third tranche of preferred shares financing (the "Third Tranche"), would be contingent upon mutual agreement between the Company and the Buyer. As of the date of this announcement, neither the Company is obliged to sell, nor the Buyer is obliged to purchase for the Third Tranche.
As of the date of the Company's second quarter 2024 earnings release, the Company has 4,223,697,753 Class A ordinary shares, 311,624,444 Class B ordinary shares, and 1,000 Series A Preferred Shares issued and outstanding. The increase in the outstanding Class A ordinary shares compared to the end of 2023 was due to the conversion from part of the Series A Preferred Shares to Class A ordinary shares by the Buyer and the issuance of the Pre-delivery Shares.
Secured Term Loans
During the second quarter of 2024, the Company pledged 530 Bitcoins for secured term loans with an aggregate carrying value of
Business Outlook
For the third quarter of 2024, the Company expects total revenues to be approximately
Conference Call Information
The Company's management team will hold a conference call at 8:00 A.M. U.S. Eastern Time on August 15, 2024 (or 8:00 P.M. Singapore Time on the same day) to discuss the financial results. Details for the conference call are as follows:
Event Title: Canaan Inc. Second Quarter 2024 Earnings Conference Call
Registration Link: https://register.vevent.com/register/BIad7763f270f8498f8cf1dffb26155196
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call.
A live and archived webcast of the conference call will be available at the Company's investor relations website at investor.canaan-creative.com.
About Canaan Inc.
Established in 2013, Canaan Inc. (NASDAQ: CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field. In 2013, Canaan's founding team shipped to its customers the world's first batch of mining machines incorporating ASIC technology in bitcoin's history under the brand name Avalon. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market. To learn more about Canaan, please visit https://www.canaan.io/.
Safe Harbor Statement
This announcement contains forward−looking statements. These statements are made under the "safe harbor" provisions of the
Use of Non-GAAP Financial Measures
In evaluating Canaan's business, the Company uses non-GAAP measures, such as adjusted EBITDA, as supplemental measures to review and assess its operating performance. The Company defines adjusted EBITDA as net loss excluding income tax expenses (benefit), interest income, depreciation and amortization expenses and certain non-cash items which currently include share-based compensation expenses, impairment on property, equipment and software, change in fair value of financial instruments and excess of fair value of Series A Convertible Preferred Shares. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under
Investor Relations Contact
Canaan Inc.
Ms. Xi Zhang
Email: IR@canaan-creative.com
ICR, LLC.
Robin Yang
Tel: +1 (347) 396-3281
Email: canaan.ir@icrinc.com
CANAAN INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (all amounts in thousands, except share and per share data, or as otherwise noted) | ||
As of December 31, | As of June 30, | |
2023 | 2024 | |
USD | USD | |
ASSETS | ||
Current assets: | ||
Cash | 96,154 | 66,788 |
Accounts receivable, net | 2,997 | 8,159 |
Inventories | 142,287 | 131,297 |
Prepayments and other current assets | 122,242 | 129,748 |
Total current assets | 363,680 | 335,992 |
Non-current assets: | ||
Cryptocurrency | 28,342 | 37,198 |
Cryptocurrency, restricted | - | 32,655 |
Property, equipment and software, net | 29,466 | 42,267 |
Intangible asset | - | 1,007 |
Operating lease right-of-use assets | 1,690 | 3,719 |
Deferred tax assets | 66,809 | 69,417 |
Other non-current assets | 486 | 482 |
Non-current financial investment | 2,824 | 2,806 |
Total non-current assets | 129,617 | 189,551 |
Total assets | 493,297 | 525,543 |
LIABILITIES, AND SHAREHOLDERS' EQUITY | ||
Current liabilities | ||
Accounts payable | 6,245 | 29,936 |
Contract liabilities | 19,614 | 50,585 |
Income tax payable | 3,534 | 3,524 |
Accrued liabilities and other current liabilities | 64,240 | 29,738 |
Operating lease liabilities, current | 1,216 | 1,530 |
Preferred Shares forward contract liability | 40,344 | - |
Series A Convertible Preferred Shares | - | 1,514 |
Total current liabilities | 135,193 | 116,827 |
Non-current liabilities: | ||
Long-term loans | - | 19,172 |
Lease liabilities, non-current | 210 | 1,811 |
Deferred tax liability | - | 171 |
Other non-current liabilities | 9,707 | 9,362 |
Total liabilities | 145,110 | 147,343 |
Shareholders' equity: | ||
Ordinary shares ( value; 1,000,000,000,000 shares authorized, 3,772,078,667 and 4,535,322,197 shares issued, 3,514,973,327 and 4,316,086,547 shares outstanding as of December 31, 2023 and June 30, 2024, respectively) | - | - |
Treasury stocks ( value; 257,105,340 shares as of December 31, 2023 and 219,235,650 shares as of June 30, 2024, respectively) | (57,055) | (57,055) |
Additional paid-in capital | 653,860 | 755,239 |
Statutory reserves | 14,892 | 14,892 |
Accumulated other comprehensive loss | (43,879) | (52,865) |
Accumulated deficit | (219,631) | (282,011) |
Total shareholders' equity | 348,187 | 378,200 |
Total liabilities and shareholders' equity | 493,297 | 525,543 |
CANAAN INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (all amounts in thousands of USD, except share and per share data, or as otherwise noted) | |||
For the Three Months Ended | |||
June 30, 2023 | March 31, 2024 | June 30, 2024 | |
USD | USD | USD | |
Revenues | |||
Products revenue | 57,940 | 23,446 | 61,751 |
Mining revenue | 15,896 | 10,460 | 9,308 |
Other revenues | 17 | 1,185 | 799 |
Total revenues | 73,853 | 35,091 | 71,858 |
Cost of revenues | |||
Product cost | (113,294) | (59,757) | (79,661) |
Mining cost | (30,586) | (12,152) | (11,037) |
Other cost | (48) | (509) | (290) |
Total cost of revenues | (143,928) | (72,418) | (90,988) |
Gross loss | (70,075) | (37,327) | (19,130) |
Operating expenses: | |||
Research and development expenses | (17,857) | (15,342) | (14,648) |
Sales and marketing expenses | (2,437) | (1,073) | (1,578) |
General and administrative expenses | (17,258) | (14,304) | (10,445) |
Impairment on property, equipment and software | (9,111) | - | (798) |
Impairment on cryptocurrency | (2,363) | - | - |
Total operating expenses | (49,026) | (30,719) | (27,469) |
Loss from operations | (119,101) | (68,046) | (46,599) |
Interest income | 226 | 205 | 66 |
Interest expense | - | - | (14) |
Change in fair value of cryptocurrency | - | 33,583 | (9,787) |
Change in fair value of financial instrument | - | 2,340 | (225) |
Excess of fair value of Series A Convertible Preferred Shares | - | (376) | - |
Foreign exchange gains (losses), net | 2,574 | (1,843) | 11,364 |
Other income (expense), net | 176 | (4,454) | 1,405 |
Loss before income tax expenses | (116,125) | (38,591) | (43,790) |
Income tax (expense) benefit | 5,456 | (802) | 1,910 |
Net loss | (110,669) | (39,393) | (41,880) |
Foreign currency translation adjustment, net of nil tax | (23,518) | (4,987) | (3,999) |
Total comprehensive loss | (134,187) | (44,380) | (45,879) |
Weighted average number of shares used in per class A and Class B ordinary share calculation: | |||
— Basic | 2,547,999,846 | 3,719,629,615 | 4,117,791,601 |
— Diluted | 2,547,999,846 | 3,719,629,615 | 4,117,791,601 |
Net loss per class A and Class B ordinary share (cent per share) | |||
— Basic | (4.34) | (1.06) | (1.02) |
— Diluted | (4.34) | (1.06) | (1.02) |
Share-based compensation expenses were included in: | |||
Cost of revenues | 60 | 57 | 59 |
Research and development expenses | 2,452 | 1,865 | 1,702 |
Sales and marketing expenses | 233 | 43 | 13 |
General and administrative expenses | 8,323 | 5,946 | 4,750 |
The table below sets forth a reconciliation of net loss to Non-GAAP adjusted EBITDA for the period indicated: | |||
For the Three Months Ended | |||
June 30, 2023 | March 31, 2024 | June 30, 2024 | |
USD | USD | USD | |
Net loss | (110,669) | (39,393) | (41,880) |
Income tax expenses (benefit) | (5,456) | 802 | (1,910) |
Interest income | (226) | (205) | (66) |
Interest expense | - | - | 14 |
EBIT | (116,351) | (38,796) | (43,842) |
Depreciation and amortization expenses | 17,413 | 6,873 | 5,650 |
EBITDA | (98,938) | (31,923) | (38,192) |
Share-based compensation expenses | 11,068 | 7,911 | 6,524 |
Impairment on property, equipment and software | 9,111 | - | 798 |
Change in fair value of financial instruments | - | (2,340) | 225 |
Excess of fair value of Series A Convertible Preferred Shares | - | 376 | - |
Non-GAAP adjusted EBITDA | (78,759) | (25,976) | (30,645) |
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SOURCE Canaan Inc.
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