Zepp Health Corporation Reports Fourth Quarter and Full Year 2024 Unaudited Financial Results
Zepp Health (NYSE: ZEPP) reported Q4 2024 financial results with revenue reaching US$59.5 million, showing a 40.2% quarter-over-quarter increase but a 28.3% year-over-year decline. Amazfit-branded products grew 43.4% quarter-over-quarter.
Key Q4 metrics include a gross margin of 36.8% (up from 34.7% YoY) and an adjusted operating loss of US$7.4 million. For full-year 2024, gross margin improved to 38.5% from 26.2% in 2023. The company ended 2024 with US$111 million in cash and successfully refinanced majority of short-term debts into long-term instruments.
Notable product developments include strong performance of T-Rex 3 in outdoor sports watches and positive reception of Active 2 and Bip 6 series. The company is advancing technology with OpenAI 4.5 integration and food logging features in Zepp OS.
For Q1 2025, Zepp projects revenues between US$40-45 million, representing 14-29% growth for Amazfit-branded products compared to Q1 2024.
Zepp Health (NYSE: ZEPP) ha riportato i risultati finanziari del Q4 2024 con ricavi che hanno raggiunto 59,5 milioni di dollari, mostrando un aumento del 40,2% rispetto al trimestre precedente, ma un calo del 28,3% rispetto all'anno precedente. I prodotti a marchio Amazfit sono cresciuti del 43,4% rispetto al trimestre precedente.
I principali indicatori del Q4 includono un margine lordo del 36,8% (in aumento rispetto al 34,7% dell'anno precedente) e una perdita operativa rettificata di 7,4 milioni di dollari. Per l'intero anno 2024, il margine lordo è migliorato al 38,5% rispetto al 26,2% del 2023. L'azienda ha chiuso il 2024 con 111 milioni di dollari in contante e ha rifinanziato con successo la maggior parte dei debiti a breve termine in strumenti a lungo termine.
Sviluppi di prodotto notevoli includono le forti performance del T-Rex 3 negli orologi sportivi outdoor e la ricezione positiva delle serie Active 2 e Bip 6. L'azienda sta avanzando nella tecnologia con l'integrazione di OpenAI 4.5 e funzionalità di registrazione alimentare in Zepp OS.
Per il Q1 2025, Zepp prevede ricavi tra 40-45 milioni di dollari, rappresentando una crescita del 14-29% per i prodotti a marchio Amazfit rispetto al Q1 2024.
Zepp Health (NYSE: ZEPP) reportó los resultados financieros del Q4 2024 con ingresos alcanzando 59.5 millones de dólares, mostrando un aumento del 40.2% en comparación con el trimestre anterior, pero una disminución del 28.3% en comparación con el año anterior. Los productos de la marca Amazfit crecieron un 43.4% en comparación con el trimestre anterior.
Las métricas clave del Q4 incluyen un margen bruto del 36.8% (aumento desde el 34.7% interanual) y una pérdida operativa ajustada de 7.4 millones de dólares. Para el año completo 2024, el margen bruto mejoró al 38.5% desde el 26.2% en 2023. La compañía terminó 2024 con 111 millones de dólares en efectivo y refinanció con éxito la mayoría de las deudas a corto plazo en instrumentos a largo plazo.
Desarrollos de productos notables incluyen un sólido desempeño del T-Rex 3 en relojes deportivos al aire libre y una recepción positiva de las series Active 2 y Bip 6. La compañía está avanzando en tecnología con la integración de OpenAI 4.5 y características de registro de alimentos en Zepp OS.
Para el Q1 2025, Zepp proyecta ingresos entre 40-45 millones de dólares, representando un crecimiento del 14-29% para los productos de la marca Amazfit en comparación con el Q1 2024.
제프 헬스 (NYSE: ZEPP)는 Q4 2024 재무 결과를 보고하며 수익이 5,950만 달러에 도달했다고 발표했습니다. 이는 전 분기 대비 40.2% 증가했지만 전년 대비 28.3% 감소한 수치입니다. 아마즈핏 브랜드 제품은 전 분기 대비 43.4% 성장했습니다.
Q4 주요 지표로는 36.8%의 총 마진(전년 대비 34.7%에서 증가)과 740만 달러의 조정 운영 손실이 포함됩니다. 2024년 전체 연도에 대해 총 마진은 2023년 26.2%에서 38.5%로 개선되었습니다. 회사는 2024년을 1억 1,100만 달러 현금으로 마감했으며 대부분의 단기 부채를 장기 상품으로 성공적으로 재융자했습니다.
주목할 만한 제품 개발에는 아웃도어 스포츠 시계에서 T-Rex 3의 강력한 성능과 Active 2 및 Bip 6 시리즈에 대한 긍정적인 반응이 포함됩니다. 회사는 Zepp OS에서 OpenAI 4.5 통합 및 음식 기록 기능으로 기술을 발전시키고 있습니다.
2025년 1분기에 대해 Zepp는 수익이 4천만-4천5백만 달러 사이가 될 것으로 예상하며, 이는 2024년 1분기 대비 아마즈핏 브랜드 제품의 14-29% 성장에 해당합니다.
Zepp Health (NYSE: ZEPP) a annoncé les résultats financiers du Q4 2024, avec un chiffre d'affaires atteignant 59,5 millions de dollars, affichant une augmentation de 40,2% par rapport au trimestre précédent, mais une baisse de 28,3% par rapport à l'année précédente. Les produits sous la marque Amazfit ont connu une croissance de 43,4% par rapport au trimestre précédent.
Les indicateurs clés du Q4 incluent une marge brute de 36,8% (en hausse par rapport à 34,7% d'une année sur l'autre) et une perte opérationnelle ajustée de 7,4 millions de dollars. Pour l'année entière 2024, la marge brute s'est améliorée à 38,5% contre 26,2% en 2023. L'entreprise a terminé 2024 avec 111 millions de dollars en liquidités et a réussi à refinancer la majorité de ses dettes à court terme en instruments à long terme.
Les développements de produits notables incluent la forte performance du T-Rex 3 dans les montres de sport en extérieur et la réception positive des séries Active 2 et Bip 6. L'entreprise fait progresser la technologie avec l'intégration d'OpenAI 4.5 et des fonctionnalités de suivi alimentaire dans Zepp OS.
Pour le Q1 2025, Zepp prévoit des revenus compris entre 40-45 millions de dollars, représentant une croissance de 14-29% pour les produits sous la marque Amazfit par rapport au Q1 2024.
Zepp Health (NYSE: ZEPP) hat die Finanzergebnisse für das Q4 2024 veröffentlicht, mit einem Umsatz von 59,5 Millionen US-Dollar, was einem Anstieg von 40,2% im Vergleich zum Vorquartal entspricht, jedoch einem Rückgang von 28,3% im Vergleich zum Vorjahr. Die Produkte der Marke Amazfit wuchsen um 43,4% im Vergleich zum Vorquartal.
Wichtige Kennzahlen für das Q4 umfassen eine Bruttomarge von 36,8% (ein Anstieg von 34,7% im Jahresvergleich) und einen bereinigten operativen Verlust von 7,4 Millionen US-Dollar. Für das Gesamtjahr 2024 verbesserte sich die Bruttomarge auf 38,5% von 26,2% im Jahr 2023. Das Unternehmen schloss das Jahr 2024 mit 111 Millionen US-Dollar in bar ab und refinanzierte erfolgreich den Großteil der kurzfristigen Schulden in langfristige Instrumente.
Bemerkenswerte Produktentwicklungen umfassen die starke Leistung des T-Rex 3 in Outdoor-Sportuhren und die positive Resonanz auf die Serien Active 2 und Bip 6. Das Unternehmen entwickelt die Technologie mit der Integration von OpenAI 4.5 und Funktionen zur Lebensmittelerfassung in Zepp OS weiter.
Für das Q1 2025 prognostiziert Zepp Einnahmen zwischen 40-45 Millionen US-Dollar, was einem Wachstum von 14-29% für Produkte der Marke Amazfit im Vergleich zum Q1 2024 entspricht.
- Gross margin improved significantly to 38.5% in 2024 from 26.2% in 2023
- Strong 40.2% quarter-over-quarter revenue growth in Q4 2024
- Successful debt restructuring with 75% now in long-term instruments
- Lowest inventory levels since 2018 at US$56.8 million
- Positive Q1 2025 guidance showing continued growth momentum
- 28.3% year-over-year revenue decline in Q4 2024
- Q4 2024 net loss of US$36.9 million compared to US$1.3 million loss in Q4 2023
- Cash position decreased to US$111 million from US$140 million YoY
- Full-year 2024 revenue declined 48.3% compared to 2023
- Adjusted operating loss of US$40.9 million for full-year 2024
Insights
Zepp Health's Q4 2024 results reveal a challenging but transitional period. Revenue reached
The widening net loss of
Zepp's balance sheet shows
The company's forward guidance projects
Zepp's Q4 results highlight a strategic pivot that sacrifices short-term revenue for long-term margin improvement. The company's deliberate reduction in SKUs combined with the transition away from Xiaomi wearables (down
The T-Rex 3 launch appears to be a product market fit success, with management noting steady growth in activations and positive user feedback. Supply constraints for this product suggest potential for stronger performance once production capacity increases. The technology roadmap shows promising differentiation, particularly with OpenAI 4.5 integration into Zepp OS and the deployment of AI-powered food tracking features in the Zepp App.
The company's exploration of DeepSeek to reduce processing costs for these AI features demonstrates practical application of cutting-edge technology while maintaining cost discipline. This could provide a sustainable competitive advantage in the wearables market where AI features are increasingly important differentiators.
Zepp's strategic partnerships with Olympic athletes Gabby Thomas and tennis star Jasmine Polini, plus the HYROX collaboration, represent targeted marketing to specific fitness demographics rather than broad consumer campaigns. The mention of expanded retail display space in US and European markets suggests distributor confidence in the brand's direction despite the overall revenue decline.
The Active 2 and Bip 6 entry-level devices will be crucial for expanding the user base, particularly in emerging markets, creating a foundation for upselling to premium devices. This multi-tier product strategy mirrors successful approaches by market leaders while maintaining margin improvement.
Fourth Quarter 2024 Financial and Operating Highlights:
- Revenue reached
US representing a$59.5 million 40.2% of quarter over quarter increase, out of which our Amazfit-branded products grew by43.4% quarter-over-quarter. - Gross margin was
36.8% compared with34.7% in the same period last year. - Adjusted operating loss[1] was
US , which was the lowest level in 2024.$7.4 million
Full Year 2024 Financial and Operating Highlights:
- Gross margin was
38.5% compared with26.2% in the full year of 2023. - Adjusted operating expenses[2] was
US , compared with$110.4 million US in the full year of 2023.$111.7 million
[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
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
Wayne concluded: "Leveraging Active 2 and Bip 6 series, we're expanding market share, growing the entry-level user base, and enhancing brand influence in the value-for-money segment, especially in emerging markets. Since its launch in the first quarter, Active 2 has gained strong momentum in
On the technology side, we're advancing Zepp OS with OpenAI 4.5 integration. In nutrition tracking, our food logging feature by picture and video analytics within the Zepp App is now available in
Zepp Health's CFO, Mr. Leon Deng, said, "The fourth quarter of 2024 revenue grew
As of December 31, 2024, the company had
We are pleased to see that revenue resumed an upward trend in the first quarter of 2025, boosting confidence for 2025. The share repurchase program would continue in 2025, showing faith in Zepp Health's long-term potential and commitment to shareholder value."
[3] Adjusted EBIT is a non-GAAP financial measure, which is defined as net loss, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investment, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, (vi) income tax (benefit)/ expense, and (vii) interest income and interest expense. |
Fourth Quarter 2024 Financial Results
Revenues
Revenues for the fourth quarter of 2024 reached
Gross Margin
Gross margin in the fourth quarter of 2024 was
Research and Development Expenses
Research and development expenses in the fourth quarter of 2024 were
Selling and Marketing Expenses
Selling and marketing expenses in the fourth quarter of 2024 were
The increase was primarily due to the peak season for promotional campaigns to build brand recognition and drive sales growth. At the same time, we consistently pushed on retail profitability and channel mix improvement, which included meticulous refinement of our retail channels and strategic staffing arrangements across sales regions. We are committed to investing efficiently in marketing and branding to ensure our sustainable growth.
General and Administrative Expenses
General and administrative expenses were
Operating Expenses
Total operating expenses for the fourth quarter of 2024 were
Operating Income/(Loss)
Operating loss for the fourth quarter of 2024 was
Net Income/(Loss)
Net loss attributable to Zepp Health Corporation for the fourth quarter of 2024 was
Adjusted net loss attributable to Zepp Health Corporation[4] was
[4] Adjusted net income/(loss) attributable to Zepp Health Corporation represents net income/(loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investment, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, and (vi) tax effects of the above non-GAAP adjustments. See "Reconciliation of GAAP and non-GAAP results" at the end of this press release. |
Liquidity and Capital Resources
As of December 31, 2024, the Company had cash and cash equivalents and restricted cash of
The Company continued to manage its working capital and inventory efficiently and recorded inventory of
By February 2025, we have successfully refinanced majority of our short-term debts maturing in 2025 to a multi-year long term debt maturing in 2027 and beyond with a lower interest rate. Starting the first quarter of 2023, we have initiated the retirement of our short/long-term debt portfolio. Since then, and including the fourth quarter of 2024 we have successfully retired
Shares Outstanding
As of December 31, 2024, the Company had a total of 232.0 million ordinary shares outstanding, representing the equivalent of 14.5 million ADSs assuming the conversion of all ordinary shares into ADSs.
Share Repurchase Program Update
The Company announced in its third quarter 2021 earnings release that the board had authorized a share repurchase program of up to
Full Year 2024
Revenues
Total revenues of 2024 reached
Gross Margin
Gross margin in the full year 2024 was
Research and Development Expenses
Research and development expenses for the full year 2024 were
Selling and Marketing Expenses
Selling and marketing expenses for the full year 2024 were
The increase was primarily due to the launch of various marketing campaigns for our products, as well as the expansion of our Amazfit Athletes team by partnering with renowned athletes to build brand recognition. At the same time, we consistently pushed on retail profitability and channel mix improvement, which included meticulous refinement of our retail channels and strategic staffing arrangements across sales regions. We are committed to investing efficiently in marketing and branding to ensure our sustainable growth.
General and Administrative Expenses
General and administrative expenses were
Operating Expenses
Total operating expenses for the full year 2024 were
Net Income/(Loss)
Net loss attributable to Zepp Health Corporation for the full year of 2024 was
Outlook
For the first quarter of 2025, the Company's management currently expects net revenues to be between
This outlook is based on current market conditions and reflects the Company's current and preliminary estimates of market, operating conditions and customer demand, which are all subject to change.
Conference Call
The Company's management team will hold a conference call at 7:00 p.m. Eastern Time on Wednesday, March 26, 2025 to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:
US (Toll Free): | +1-888-346-8982 |
International: | +1-412-902-4272 |
Mainland | 400-120-1203 |
800-905-945 | |
+852-3018-4992 |
Participants should dial in at least 10 minutes before the scheduled start time and ask to be connected to the call for "Zepp Health Corporation".
Additionally, a live and archived webcast of the conference call will be available at http://ir.zepp.com.
A telephone replay will be available one hour after the call until April 2, 2025 by dialing:
US Toll Free: | +1-877-344-7529 |
International: | +1-412-317-0088 |
Replay Passcode: | 1239487 |
About Zepp Health Corporation
Zepp Health Corporation (NYSE: ZEPP) is a global smart wearable and health technology leader, empowering users to live their healthiest lives by optimizing their health, fitness, and wellness journeys through its leading consumer brands, Amazfit, Zepp Clarity and Zepp Aura. Powered by its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors and data algorithms, Zepp delivers cloud-based 24/7 actionable insights and guidance to help users attain their wellness goals. To date, Zepp has shipped over 200 million units, and its products are available in more than 90 countries and regions. Founded in 2013 as Huami Corp., the Company changed its name to Zepp Health Corporation in February 2021 to emphasize its health focus with a name that resonates across languages and cultures globally. Zepp has team members and offices across globe, especially in
Use of Non-GAAP Measures
We use adjusted net income/(loss), a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. 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. 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. Adjusted EBIT represents net income/(loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investment, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, (vi) income tax (benefit)/expense, and (vii) interest income and interest expense. Adjusted net income/(loss) attributable to Zepp Health Corporation is a non-GAAP measure, which excludes (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investment, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, and (vi) tax effects of the above non-GAAP adjustments, and is used as the numerator in computation of adjusted net income/(loss) per share and per ADS attributable to Zepp Health Corporation.
We believe that adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in net income/(loss) and net income/(loss) attributable to Zepp Health Corporation. We believe adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.
Adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation, should not be considered in isolation or construed as an alternative to net income/(loss), basic and diluted net income/(loss) per share and per ADS attributable to Zepp Health Corporation or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBIT and adjusted net income/(loss) attributable to ordinary shareholders, presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
For investor and media inquiries, please contact:
In
Zepp Health Corporation
Grace Yujia Zhang
Email: ir@zepp.com
Piacente Financial Communications
Tel: +86-10-6508-0677
Email: zepp@tpg-ir.com
Zepp Health Corporation | ||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(Amounts in thousands of | ||||
except for number of shares and per share data, or otherwise noted)
| ||||
As of December 31, | As of December 31, | |||
2023 | 2024 | |||
US$ | US$ | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | 133,669 | 91,069 | ||
Restricted cash | 6,800 | 19,666 | ||
Accounts receivable, net | 60,727 | 62,965 | ||
Amounts due from related parties | 8,605 | 2,663 | ||
Inventories, net | 84,887 | 56,789 | ||
Short-term investments | 5,153 | 997 | ||
Prepaid expenses and other current assets | 16,891 | 17,415 | ||
Total current assets | 316,732 | 251,564 | ||
Property, plant and equipment, net | 8,929 | 6,898 | ||
Intangible asset, net | 9,868 | 7,091 | ||
Goodwill | 9,581 | 9,581 | ||
Long-term investments | 238,540 | 225,910 | ||
Deferred tax assets | 32,401 | 17,465 | ||
Amount due from related parties, non-current | 2,951 | 2,019 | ||
Other non-current assets | 9,698 | 4,607 | ||
Operating lease right-of-use assets | 6,819 | 3,458 | ||
Total assets | 635,519 | 528,593 |
Zepp Health Corporation | ||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - CONTINUED | ||||
(Amounts in thousands of | ||||
except for number of shares and per share data, or otherwise noted)
| ||||
As of December 31, | As of December 31, | |||
2023 | 2024 | |||
US$ | US$ | |||
Liabilities | ||||
Current liabilities: | ||||
Accounts payable | 37,286 | 51,077 | ||
Advance from customers | 233 | 197 | ||
Amount due to related parties | 3,475 | 2,477 | ||
Accrued expenses and other current liabilities | 44,450 | 37,576 | ||
Income tax payables | 986 | 508 | ||
Notes payable | 66,991 | 61,679 | ||
Short-term bank borrowings | 1,690 | 41,853 | ||
Total current liabilities | 155,111 | 195,367 | ||
Deferred tax liabilities | 4,169 | 3,117 | ||
Long-term borrowings | 120,020 | 75,241 | ||
Other non-current liabilities | 270 | 133 | ||
Non-current operating lease liabilities | 3,197 | 2,007 | ||
Total liabilities | 282,767 | 275,865 |
Zepp Health Corporation | ||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - CONTINUED | ||||
(Amounts in thousands of | ||||
except for number of shares and per share data, or otherwise noted) | ||||
As of December 31, | As of December 31, | |||
2023 | 2024 | |||
US$ | US$ | |||
Equity | ||||
Ordinary shares | 26 | 26 | ||
Additional paid-in capital | 273,386 | 278,116 | ||
Treasury stock | (12,874) | (14,993) | ||
Accumulated retained earnings | 104,351 | 28,618 | ||
Accumulated other comprehensive loss | (14,008) | (40,178) | ||
Total Zepp Health Corporation shareholders' equity | 350,881 | 251,589 | ||
Noncontrolling interest | 1,871 | 1,139 | ||
Total equity | 352,752 | 252,728 | ||
Total liabilities and equity | 635,519 | 528,593 |
Zepp Health Corporation | |||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(Amounts in thousands of | |||||
except for number of shares and per share data, or otherwise noted) | |||||
For the Three Months Ended December 31, | |||||
2023 | 2024 | ||||
US$ | US$ | ||||
Revenues | 83,007 | 59,542 | |||
Cost of revenues | (54,173) | (37,613) | |||
Gross profit | 28,834 | 21,929 | |||
Operating expenses: | |||||
Selling and marketing | (11,984) | (13,251) | |||
General and administrative | (5,100) | (6,555) | |||
Research and development | (11,124) | (11,061) | |||
Total operating expenses | (28,208) | (30,867) | |||
Operating income/(loss) | 626 | (8,938) | |||
Other income and expenses: | |||||
Interest income | 825 | 771 | |||
Interest expense | (1,438) | (1,447) | |||
Other income/(expense), net | 116 | (767) | |||
(Loss)/gain from fair value change of long-term investments | (709) | 33 | |||
Impairment loss from investments | (313) | (10,129) | |||
Investment loss | (44) | - | |||
Loss before income tax and loss from equity method investments | (937) | (20,477) | |||
Income tax expenses | (2,775) | (13,574) | |||
Loss before income/(loss) from equity method investments | (3,712) | (34,051) | |||
Net income/(loss) from equity method investments | 2,448 | (2,850) | |||
Net loss | (1,264) | (36,901) | |||
Less: Net income/(loss) attributable to noncontrolling interest | 15 | (25) | |||
Net loss attributable to Zepp Health Corporation | (1,279) | (36,876) | |||
Net loss per share attributable to Zepp Health Corporation | |||||
Basic loss per ordinary share | (0.01) | (0.14) | |||
Diluted loss per ordinary share | (0.01) | (0.14) | |||
Net loss per ADS (16 ordinary shares equal to 1 ADS) | |||||
ADS – basic | (0.08) | (2.29) | |||
ADS – diluted | (0.08) | (2.29) | |||
Weighted average number of shares used in computing net loss per Ordinary share – basic |
241,521,944 | 257,216,039 | |||
Ordinary share – diluted | 241,521,944 | 257,216,039 |
Zepp Health Corporation | ||||
Reconciliation of GAAP and Non-GAAP Results | ||||
(Amounts in thousands of | ||||
except for number of shares and per share data, or otherwise noted) | ||||
For the Three Months Ended December 31, | ||||
2023 | 2024 | |||
US$ | US$ | |||
Total operating expenses | (28,208) | (30,867) | ||
Share-based compensation expenses | 1,779 | 951 | ||
Amortization of intangible assets resulting from | 566 | 567 | ||
Total adjusted operating expenses | (25,863) | (29,349) | ||
Operating income/(loss) | 626 | (8,938) | ||
Share-based compensation expenses | 1,779 | 951 | ||
Amortization of intangible assets resulting from | 566 | 567 | ||
Adjusted operating income/(loss) | 2,971 | (7,420) | ||
Net loss | (1,264) | (36,901) | ||
Share-based compensation expenses | 1,779 | 951 | ||
Amortization of intangible assets resulting from | 566 | 567 | ||
Loss/(gain) from fair value change of long-term | 709 | (33) | ||
Impairment loss from investments | 313 | 10,129 | ||
(Income)/loss from equity method investments | (2,448) | 2,850 | ||
Income tax expenses | 2,775 | 13,574 | ||
Interest income | (825) | (771) | ||
Interest expense | 1,438 | 1,447 | ||
Adjusted EBIT | 3,043 | (8,187) | ||
Net loss attributable to Zepp Health Corporation | (1,279) | (36,876) | ||
Share-based compensation expenses | 1,779 | 951 | ||
Amortization of intangible assets resulting from | 566 | 567 | ||
Loss/(gain) from fair value change of long-term | 709 | (33) | ||
Impairment loss from investments | 313 | 10,129 | ||
(Income)/loss from equity method investments | (2,448) | 2,850 | ||
Tax effects on non-GAAP adjustments | (91) | (91) | ||
Adjusted net loss attributable to Zepp Health | (451) | (22,503) | ||
Adjusted net loss per share attributable to | ||||
Adjusted basic loss per ordinary share | (0.002) | (0.09) | ||
Adjusted diluted loss per ordinary share[5] | (0.002) | (0.09) | ||
Adjusted net loss per ADS (16 ordinary shares equal to | ||||
ADS – basic | (0.03) | (1.40) | ||
ADS – diluted | (0.03) | (1.40) | ||
Weighted average number of shares used in computing | ||||
Ordinary share – basic | 241,521,944 | 257,216,039 | ||
Ordinary share – diluted | 241,521,944 | 257,216,039 | ||
Share-based compensation expenses included | ||||
Selling and marketing | 140 | 94 | ||
General and administrative | 1,142 | 433 | ||
Research and development | 497 | 424 | ||
Total | 1,779 | 951 | ||
[5] Adjusted diluted net income/(loss) is the abbreviation of adjusted net (loss)/income attributable to Zepp Health Corporation, |
Zepp Health Corporation | |||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(Amounts in thousands of | |||||
except for number of shares and per share data, or otherwise noted) | |||||
Years Ended December 31, | |||||
2023 | 2024 | ||||
US$ | US$ | ||||
Revenues | 352,860 | 182,603 | |||
Cost of revenues | (260,502) | (112,369) | |||
Gross profit | 92,358 | 70,234 | |||
Operating expenses:
| |||||
Selling and marketing | (44,527) | (46,471) | |||
General and administrative | (26,778) | (24,854) | |||
Research and development | (51,503) | (46,159) | |||
Total operating expenses | (122,808) | (117,484) | |||
Operating loss | (30,450) | (47,250) | |||
Other income and expenses: | |||||
Interest income | 3,089 | 3,672 | |||
Interest expense | (6,752) | (5,552) | |||
Other expense, net | (525) | (656) | |||
Gain from fair value change of long-term investments | 213 | 2,011 | |||
Impairment loss from investments | (313) | (10,129) | |||
Investment income | 109 | - | |||
Loss before income tax and income/(loss) from equity method | (34,629) | (57,904) | |||
Income tax benefits/(expenses) | 2,430 | (13,693) | |||
Loss before income/(loss) from equity method investments | (32,199) | (71,597) | |||
Net income/(loss) from equity method investments | 1,113 | (4,211) | |||
Net loss | (31,086) | (75,808) | |||
Less: Net loss attributable to noncontrolling interest | (66) | (75) | |||
Net loss attributable to Zepp Health Corporation | (31,020) | (75,733) | |||
Net loss per share attributable to Zepp Health Corporation | |||||
Basic loss per ordinary share | (0.13) | (0.29) | |||
Diluted loss per ordinary share | (0.13) | (0.29) | |||
Net loss per ADS (16 ordinary shares equal to 1 ADS) | |||||
ADS – basic | (2.04) | (4.68) | |||
ADS – diluted | (2.04) | (4.68) | |||
Weighted average number of shares used in computing net loss per Ordinary share – basic | 243,135,964 | 258,876,120 | |||
Ordinary share – diluted | 243,135,964 | 258,876,120 | |||
Zepp Health Corporation | ||||
Reconciliation of GAAP and Non-GAAP Results | ||||
(Amounts in thousands of | ||||
except for number of shares and per share data, or otherwise noted) | ||||
Years Ended December 31, | ||||
2023 | 2024 | |||
US$ | US$ | |||
Total operating expenses | (122,808) | (117,484) | ||
Share-based compensation expenses | 8,792 | 4,778 | ||
Amortization of intangible assets resulting from | 2,285 | 2,267 | ||
Total adjusted operating expenses | (111,731) | (110,439) | ||
Operating loss | (30,450) | (47,250) | ||
Share-based compensation expenses | 8,792 | 4,778 | ||
Amortization of intangible assets resulting from | 2,285 | 2,267 | ||
Adjusted operating loss | (19,373) | (40,205) | ||
Net loss | (31,086) | (75,808) | ||
Share-based compensation expenses | 8,792 | 4,778 | ||
Amortization of intangible assets resulting from | 2,285 | 2,267 | ||
Gain from fair value change of long-term investments | (213) | (2,011) | ||
Impairment loss from investments | 313 | 10,129 | ||
(Income)/loss from equity method investments | (1,113) | 4,211 | ||
Income tax (benefits)/expenses | (2,430) | 13,693 | ||
Interest income | (3,089) | (3,672) | ||
Interest expense | 6,752 | 5,552 | ||
Adjusted EBIT | (19,789) | (40,861) | ||
Net loss attributable to Zepp Health Corporation | (31,020) | (75,733) | ||
Share-based compensation expenses | 8,792 | 4,778 | ||
Amortization of intangible assets resulting from | 2,285 | 2,267 | ||
Gain from fair value change of long-term investments | (213) | (2,011) | ||
Impairment loss from investments | 313 | 10,129 | ||
(Income)/loss from equity method investments | (1,113) | 4,211 | ||
Tax effects on non-GAAP adjustments | (368) | (365) | ||
Adjusted net loss attributable to Zepp Health | (21,324) | (56,724) | ||
Adjusted net loss per share attributable to | ||||
Adjusted basic loss per ordinary share | (0.09) | (0.22) | ||
Adjusted diluted loss per ordinary share | (0.09) | (0.22) | ||
Adjusted net loss per ADS (16 ordinary shares equal to | ||||
ADS – basic | (1.40) | (3.51) | ||
ADS – diluted | (1.40) | (3.51) | ||
Weighted average number of shares used in computing | ||||
Ordinary share – basic | 243,135,964 | 258,876,120 | ||
Ordinary share – diluted | 243,135,964 | 258,876,120 | ||
Share-based compensation expenses included | ||||
Selling and marketing | 637 | 462 | ||
General and administrative | 4,296 | 2,245 | ||
Research and development | 3,859 | 2,071 | ||
Total | 8,792 | 4,778 |
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SOURCE Zepp Health Corp.