MILPITAS, Calif., Nov. 18,
2024 /PRNewswire/ -- Zepp Health Corporation ("Zepp"
or the "Company") (NYSE: ZEPP) today reported revenues of
US$42.5 million; a basic
and diluted net loss per share of US$0.05; and a basic and diluted net
loss per ADS of US$0.82
for the third quarter ended September 30, 2024;
adjusted basic and diluted net loss per share of
US$0.05; and adjusted basic and
diluted net loss per ADS of US$0.78. Each ADS represents sixteen Class A
ordinary shares.
Mr. Wang 'Wayne' Huang, Chairman and CEO of Zepp, commented,
"I'm pleased to report that this quarter our Amazfit branded sales
had a 10% quarter-over-quarter increase, the highest sequential
growth we've achieved this year, overcoming the supply constraints
of our newly launched products. This positive momentum demonstrates
that the most challenging phase of our transformation is now behind
us, and we are optimistic that this growth will continue into the
fourth quarter as our new outdoor product, the T-Rex3 smartwatch,
has received better than expected market feedback worldwide. It
combines military-grade durability, cutting-edge outdoor features,
and unparalleled battery life, making it the perfect companion for
those seeking adventure in their everyday lives and becoming one of
the most competitive smartwatch products in the sports and outdoor
categories."
Wang added, "Furthermore, introducing the Amazfit
UP OWS (Open Wearable Stereo) earbuds has expanded our product
ecosystem and enhanced the user experience allowing them to hear
background sounds clearly while using UP earbuds for outdoor
activities to enhance their safety. Additionally, we have made
significant advancements in our software capabilities, with the
latest updates on Zepp OS and the redesign of our Zepp App interface to enhance functionality and
user engagement which received positive feedback from media and
users widely.
These developments reaffirm our commitment to
innovation and meeting the evolving needs of our customers. We are
particularly proud to be named as the official wearable partner and
timekeeper of HYROX, the World Series of Fitness Racing, reaching
over 300,000 participants per season across EU and US regions. On
the marketing front, we are expanding the size of our Amazfit
Athletes, this quarter we newly partnered with Spain Padel Athlete
Bea Gonzalez, American Hyrox Hunter and Meg and others. These
developments reaffirm our commitment to innovation and meeting the
evolving needs of our customers. Looking ahead, we remain confident
in our strategic direction. With a strong pipeline of new products,
continued investments in R&D and marketing, and an unwavering
focus on operational excellence, we are well-positioned to drive
sustainable growth and create long-term value for our
shareholders."
Mr. Leon Deng,
Zepp's Chief Financial Officer, added, "In the third quarter, our
financial results continued to demonstrate the effectiveness of our
refined operational strategies and rigorous cost management. We
reported the highest sequential revenue growth in the year,
overcoming the supply constraints of our newly launched T-Rex 3 and
achieved the highest gross margin in our company's history,
reflecting our ongoing improvements in product mix and operational
efficiencies. While we maintained a consistent approach in aligning
our operating expenses with strategic objectives, during this
quarter, we frontloaded certain marketing expenditures, helping to
build brand awareness and promote our sales in the long run. As a
result, we reported a net loss, largely driven by cost coverage
issues and negative foreign currency results, but with the
successful new product launches, we are confident in the recovery
of our profitability growth momentum. Furthermore, our cash balance
remained at a similar level compared to the previous quarter,
partially attributed to our tight working capital management. This
achievement not only demonstrates our capability to adapt swiftly
to fluctuating market demands but also positions us to reduce
operational risks and enhance financial flexibility. Last but not
the least, we will continue executing our share repurchase program
to demonstrate our confidence on the company's long-term
strategy."
Third Quarter 2024 Financial Summary
|
|
For the Three Months
Ended
|
|
For the
Nine Months Ended
|
Number in millions,
except for percentages and
per- share/ADS amounts
|
|
Sept.
30,
2024
|
Sept.
30,
2023
|
|
Sept.
30,
2024
|
Sept.
30,
2023
|
Revenue
(US$)
|
|
42.5
|
83.1
|
|
123.1
|
269.9
|
Gross margin
|
40.6 %
|
33.9 %
|
|
39.3 %
|
23.5 %
|
Operating (loss)/income
(US$)
|
|
(12.5)
|
1.4
|
|
(38.3)
|
(31.1)
|
Net (loss)/income
(US$)
|
|
(13.3)
|
0.3
|
|
(38.9)
|
(29.8)
|
Adjusted EBIT
(US$)[1]
|
|
(12.3)
|
3.0
|
|
(33.8)
|
(25.0)
|
Net (loss)/income
attributable to Zepp Health
Corporation (US$)
|
|
(13.3)
|
0.3
|
|
(38.9)
|
(29.7)
|
Adjusted net
(loss)/income attributable to Zepp
Health Corporation (US$)[2]
|
|
(12.6)
|
2.2
|
|
(35.0)
|
(22.7)
|
Basic/diluted net
(loss)/income per ADS (US$)[3]
|
|
(0.82)
|
0.02
|
|
(2.40)
|
(1.95)
|
Adjusted basic/diluted
net (loss)/income per ADS
(US$)[4]
|
|
(0.78)
|
0.14
|
|
(2.16)
|
(1.49)
|
Units shipped in
millions
|
0.7
|
2.8
|
|
3.2
|
10.0
|
[1] Adjusted
EBIT is a non-GAAP financial measure, which is defined as net loss,
excluding (i) share-based compensation expenses, (ii) income tax
(benefit)/ expense, (iii) interest income, (iv) interest
expense.
|
[2] Adjusted
net (loss)/income attributable to Zepp Health Corporation is a
non-GAAP measure, which excludes share-based compensation expenses.
The tax effect from the adjustment of the share-based compensation
expenses is nil. See "Reconciliation of GAAP and Non-GAAP Results"
at the end of this press release.
|
[3] One
ADS represents sixteen Class A ordinary shares. The ADS
figures give effect to the ADS to share ratio change, as
described in "Third Quarter 2024 Financial Results—Shares
Outstanding".
|
[4] Adjusted
diluted net (loss)/income is the abbreviation of adjusted net
(loss)/income attributable to Zepp Health Corporation, which
is a non-GAAP measure and excludes share-based compensation
expenses attributable to Zepp Health Corporation, and is used as
the numerator in computation of adjusted basic and diluted net loss
per ADS attributable to Zepp Health Corporation.
|
Third Quarter 2024 Financial Results
Revenues
Revenues for the third quarter of 2024 reached US$42.5 million, a decrease by 48.9% from
the third quarter of 2023. The decrease was primarily due to
the decrease in the sales of Xiaomi wearable products, as well as
the decrease in sales of self-branded products, as supply was
constrained by the production capacity for new product launches and
macroeconomic weakness. However, compared with the second quarter
of 2024, revenue of self-branded products increased by 9.9%, which
is the highest quarter-over-quarter increase in 2024, the increase
was primarily driven by the market reception of our recent
launches, especially the newly introduced Amazfit T-Rex 3, and our
core products such as Balance, Active, have seen continued
popularity and growing demand.
Total units shipped in the third quarter of 2024 was 0.7
million, compared with 2.8 million in the third quarter of
2023.
Gross Margin
Gross margin in the third quarter of 2024 was 40.6%, compared to
33.9% in the same period of 2023. We reached another record-high
quarterly gross margin since the third quarter of 2023, supported
by the strong performance of our self-branded products and a more
favourable product mix, with a higher proportion of new products
and less clearance sales, which typically have lower margins. This
was the sixth consecutive quarter of gross margin expansion.
Research and Development Expenses
Research and development expenses in the third quarter of 2024
were US$10.9 million, an increase by
4.8% year-over-year. This accounted for 25.6% of revenues, compared
to 12.5% for the same period in 2023. The increase was a result
from our investment in new technologies, including AI, to maintain
our competitive edge against our peers. At the same time, we
focused on refined research and development approaches, as we
consistently evaluated resource efficiency to ensure maximum return
on investment and productivity.
Selling and Marketing Expenses
Selling and marketing expenses in the third quarter of 2024 were
US$11.9 million, an increase by 21.9%
year-over-year. This accounted for 28.0% of revenues, compared to
11.7% for the same period in 2023.
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 US$7.0 million in the third quarter of 2024, an
increase by 5.4% year-over-year. This accounted for 16.5% of
revenues, compared with 8.0% in the same period in 2023. The
increase was largely attributable to foreign exchange rate
fluctuations. Foreign exchange rate fluctuations loss was
US$1.0 million in the third quarter
of 2024, compared with fluctuations gain of US$0.7 in the same period of 2023.
Operating Expenses
Total operating expenses for the third quarter of 2024 were
US$29.8 million, an increase by
11.2% year-over-year. Adjusted operating expenses, which exclude
share-based compensation, were US$29.1 million. The increase was primarily
due to the launch of various marketing campaigns for our new
products, as well as the expansion of our Amazfit Athletes team by
partnering with renowned athletes to build brand recognition. We
will maintain our cost-conscious approach in the upcoming quarters.
Concurrently, we remain committed to investing in R&D and
marketing activities to ensure our long-term competitiveness.
Operating Income/(Loss)
Operating loss for the third quarter of 2024 was US$12.5 million, compared to operating income of
US$1.4 million for the third quarter
of 2023. Adjusted operating loss for the third quarter of 2024 was
US$11.9 million, compared to adjusted
operating income of US$3.3 million
for the third quarter of 2023. The loss was mainly due to lower
sales volume, which resulted in an inability to fully cover
operating expenses.
Net Income/(Loss)
Net loss attributable to Zepp Health Corporation for the
third quarter of 2024 was US$13.3 million, compared to net
income of US$0.3 million in the third
quarter of 2023. Adjusted net loss attributable to Zepp
Health Corporation, which excludes share-based compensation
expenses attributable to Zepp Health Corporation, was
US$12.6 million, compared to
adjusted net income of US$2.2 million in the third quarter
of 2023. Net loss attributable to Zepp Health Corporation
for the third quarter of 2024 included a foreign exchanges
loss of US$1.0 million, compared to a
gain of US1.2 million and US$1.1
million in the first and second quarter of 2024,
respectively. Net loss and adjusted net loss attributable to Zepp
Health Corporation for the nine months ended September 30, 2024 was US$38.9 million and US$35.0 million.
Liquidity and Capital Resources
As of September 30, 2024, the
Company had cash and cash equivalents and restricted cash of
US$127.7 million, which was in
similar level compared with the second quarter of 2024, despite a
loss position. This cash position provides a runway for the Company
to invest and seize potential market opportunities.
The Company continued to manage its working capital and
inventory efficiently and recorded inventory of US$76.6 million as of September 30, 2024 and maintained it with a
relatively low level since June 30,
2019, representing an increase by 6.5% and a decrease by
29.0% compared with June 30, 2024 and
September 30, 2023, respectively. We
will continue to manage working capital tightly. Also, we
anticipate further reductions in our debt level in the upcoming
quarters.
Shares Outstanding
As of September 30, 2024, the
Company had a total of 234.0 million ordinary shares outstanding,
representing the equivalent of 14.6 million ADSs assuming the
conversion of all ordinary shares into ADSs.
The Company changed the ratio of its American
Depositary Shares ("ADSs") to its Class A ordinary shares (the "ADS
Ratio") from the previous ADS Ratio of one ADS representing four
Class A ordinary shares to a new ADS Ratio of one ADS representing
sixteen Class A ordinary shares. The change in the ADS Ratio took
effect on September 16, 2024 (U.S.
Eastern Time). All earnings per ADS figures in this announcement
give effect to the foregoing ADS Ratio change.
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
US$20 million through November 2022. On November
21, 2022, the board authorized a 12-month extension of the
Company's share repurchase program. On November 20, 2023, the board further authorized
the Company to extend its share repurchase program for another 12
months. On November 18, 2024, the
board further authorized the Company to extend its share repurchase
program for another 24 months. Pursuant to the extended share
repurchase program, the Company may repurchase its shares in the
form of ADSs and/or ordinary shares through November 2026 with an aggregate value equal to
the remaining balance under the share repurchase program. As of
September 30, 2024, the Company had
used US$14.5 million to repurchase
approximately 1.7 million ADSs. The Company expects to fund the
repurchases under the extended share repurchase program out of its
existing cash balance.
Outlook
For the fourth quarter of 2024, the Company's management
currently expects net revenues to be between US$55 million and US$70 million,
representing 29% to 65% growth for revenue of self-branded products
compared with third quarter of 2024.
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
8:30 p.m. Eastern Time on Monday,
November 18, 2024 (9:30 a.m. Beijing
Time on November 19, 2024) 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 China (Toll
Free):
|
400-120-1203
|
Hong Kong (Toll
Free):
|
800-905-945
|
Hong Kong:
|
+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 November 25, 2024 by
dialing:
US Toll
Free:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay Passcode:
|
5720021
|
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 Europe and
USA regions.
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 share-based compensation
expenses. Adjusted operating income/(loss) represents operating
income/(loss) excluding share-based compensation
expenses. Adjusted EBIT represents net income/(loss) excluding
share-based compensation expenses, income tax (benefit)/expense,
interest income and interest expense. Adjusted net income/(loss)
represents net income/(loss) excluding share-based compensation
expenses, and such adjustment has no impact on income
tax. Adjusted net income/(loss) attributable to Zepp Health
Corporation is a non-GAAP measure, which excludes share-based
compensation expenses attributable to Zepp Health Corporation, 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 net income/(loss), 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 that adjusted net
income/(loss), 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 net income/(loss), 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 net income/(loss), 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 U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
cooperation with Xiaomi, the recognition of the Company's
self-branded products; the Company's growth strategies; trends and
competition in global wearable technology market; changes in the
Company's revenues and certain cost or expense accounting policies;
governmental policies relating to the Company's industry and
general economic conditions in China and the global. Further information
regarding these and other risks is included in the Company's
filings with the United States Securities and Exchange Commission.
All information provided in this press release and in the
attachments is as of the date of this press release, and the
Company undertakes no obligation to update any forward-looking
statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
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 U.S. dollars ("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of
September 30,
|
|
|
2023
|
|
2024
|
|
|
US$
|
|
US$
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
133,669
|
|
114,173
|
Restricted
cash
|
|
6,800
|
|
13,567
|
Accounts receivable,
net
|
|
60,727
|
|
42,329
|
Amounts due from
related parties
|
|
8,605
|
|
3,057
|
Inventories,
net
|
|
84,887
|
|
76,579
|
Short-term
investments
|
|
5,153
|
|
4,894
|
Prepaid expenses and
other current assets
|
|
16,891
|
|
18,820
|
Total current
assets
|
|
316,732
|
|
273,419
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
8,929
|
|
7,688
|
Intangible asset,
net
|
|
9,868
|
|
8,238
|
Goodwill
|
|
9,581
|
|
9,581
|
Long-term
investments
|
|
238,540
|
|
242,637
|
Deferred tax
assets
|
|
32,401
|
|
32,430
|
Amount due from related
parties, non-current
|
|
2,951
|
|
3,343
|
Other non-current
assets
|
|
9,698
|
|
7,271
|
Operating lease
right-of-use assets
|
|
6,819
|
|
4,187
|
Total
assets
|
|
635,519
|
|
588,794
|
Zepp Health
Corporation
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS - CONTINUED
|
(Amounts in
thousands of U.S. dollars ("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of
September 30,
|
|
|
2023
|
|
2024
|
|
|
US$
|
|
US$
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
37,286
|
|
32,179
|
Advance from
customers
|
|
233
|
|
235
|
Amount due to related
parties
|
|
3,475
|
|
3,229
|
Accrued expenses and
other current liabilities
|
|
44,450
|
|
35,188
|
Income tax
payables
|
|
986
|
|
179
|
Notes
payable
|
|
66,991
|
|
74,046
|
Short-term bank
borrowings
|
|
1,690
|
|
80,512
|
Total current
liabilities
|
|
155,111
|
|
225,568
|
Deferred tax
liabilities
|
|
4,169
|
|
4,132
|
Long-term
borrowings
|
|
120,020
|
|
41,193
|
Other non-current
liabilities
|
|
270
|
|
49
|
Non-current operating
lease liabilities
|
|
3,197
|
|
2,310
|
Total
liabilities
|
|
282,767
|
|
273,252
|
Zepp Health
Corporation
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS - CONTINUED
|
(Amounts in
thousands of U.S. dollars ("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
As of December
31,
|
|
As of
September 30,
|
|
|
2023
|
|
2024
|
|
|
US$
|
|
US$
|
|
|
|
|
|
Equity
|
|
|
|
|
Ordinary
shares
|
|
26
|
|
26
|
Additional paid-in
capital
|
|
273,386
|
|
276,956
|
Treasury
stock
|
|
(12,874)
|
|
(14,543)
|
Accumulated retained
earnings
|
|
104,351
|
|
65,494
|
Accumulated other
comprehensive loss
|
|
(14,008)
|
|
(13,763)
|
Total Zepp Health
Corporation shareholders' equity
|
|
350,881
|
|
314,170
|
Noncontrolling
interest
|
|
1,871
|
|
1,372
|
Total
equity
|
|
352,752
|
|
315,542
|
Total liabilities
and equity
|
|
635,519
|
|
588,794
|
Zepp Health
Corporation
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of U.S. dollars ("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
For the Three Months
Ended September 30,
|
|
|
2023
|
|
2024
|
|
|
US$
|
|
US$
|
|
|
|
|
|
Revenues
|
|
83,111
|
|
42,462
|
Cost of
revenues
|
|
(54,942)
|
|
(25,218)
|
Gross
profit
|
|
28,169
|
|
17,244
|
Operating
expenses:
|
|
|
|
|
Selling and
marketing
|
|
(9,756)
|
|
(11,896)
|
General and
administrative
|
|
(6,669)
|
|
(7,026)
|
Research and
development
|
|
(10,365)
|
|
(10,859)
|
Total operating
expenses
|
|
(26,790)
|
|
(29,781)
|
Operating
income/(loss)
|
|
1,379
|
|
(12,537)
|
Other income and
expenses:
|
|
|
|
|
Interest
income
|
|
812
|
|
941
|
Interest
expense
|
|
(1,612)
|
|
(1,289)
|
Other expense,
net
|
|
(239)
|
|
(84)
|
(Loss)/gain from fair
value change of long-term investments
|
|
(76)
|
|
175
|
Investment
income
|
|
119
|
|
-
|
Income/(loss) before
income tax and loss from equity
method
investments
|
|
383
|
|
(12,794)
|
Income tax
expenses
|
|
(66)
|
|
-
|
Income/(loss) before
income from equity method investments
|
|
317
|
|
(12,794)
|
Net loss from equity
method investments
|
|
(51)
|
|
(465)
|
Net
income/(loss)
|
|
266
|
|
(13,259)
|
Less: Net loss
attributable to noncontrolling interest
|
|
(27)
|
|
(8)
|
Net
income/(loss) attributable to Zepp Health
Corporation
|
|
293
|
|
(13,251)
|
Net
income/(loss) per share attributable
to Zepp Health
Corporation
|
|
|
|
|
Basic income/(loss) per
ordinary share
|
|
0.001
|
|
(0.05)
|
Diluted income/(loss)
per ordinary share
|
|
0.001
|
|
(0.05)
|
|
|
|
|
|
Net
income/(loss) per ADS (16
ordinary shares equal to 1 ADS)[3]
|
|
|
|
|
ADS – basic
|
|
0.02
|
|
(0.82)
|
ADS –
diluted
|
|
0.02
|
|
(0.82)
|
|
|
|
|
|
Weighted average
number of shares used in computing net
income/(loss) per share
Ordinary share –
basic
|
|
243,154,138
|
|
258,386,436
|
Ordinary share –
diluted
|
|
256,149,311
|
|
258,386,436
|
Zepp Health
Corporation
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of U.S. dollars ("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
For the Three Months
Ended September 30,
|
|
|
2023
|
|
2024
|
|
|
US$
|
|
US$
|
|
|
|
|
|
Total operating
expenses
|
|
(26,790)
|
|
(29,781)
|
Share-based
compensation expenses[2]
|
|
1,906
|
|
638
|
Total adjusted
operating expenses
|
|
(24,884)
|
|
(29,143)
|
|
|
|
|
|
Operating
income/(loss)
|
|
1,379
|
|
(12,537)
|
Share-based
compensation expenses
|
|
1,906
|
|
638
|
Adjusted
operating income/(loss)
|
|
3,285
|
|
(11,899)
|
|
|
|
|
|
Net income/(loss)
|
|
266
|
|
(13,259)
|
Share-based
compensation expenses
|
|
1,906
|
|
638
|
Income tax
expenses
|
|
66
|
|
-
|
Interest
income
|
|
(812)
|
|
(941)
|
Interest
expense
|
|
1,612
|
|
1,289
|
Adjusted
EBIT
|
|
3,038
|
|
(12,273)
|
|
|
|
|
|
Net
income/(loss) attributable to Zepp
Health
Corporation
|
|
293
|
|
(13,251)
|
Share-based
compensation expenses
|
|
1,906
|
|
638
|
Adjusted net
income/(loss) attributable to Zepp
Health
Corporation[2]
|
|
2,199
|
|
(12,613)
|
Adjusted net
income/(loss) per share attributable
to
Zepp Health Corporation
|
|
|
|
|
Adjusted basic
income/(loss) per ordinary share
|
|
0.01
|
|
(0.05)
|
Adjusted diluted
income/(loss) per ordinary share
|
|
0.01
|
|
(0.05)
|
|
|
|
|
|
Adjusted net
income/(loss) per ADS (16
ordinary
shares equal to 1 ADS)[3]
|
|
|
|
|
ADS – basic
|
|
0.14
|
|
(0.78)
|
ADS –
diluted
|
|
0.14
|
|
(0.78)
|
|
|
|
|
|
Weighted average
number of shares used in computing
adjusted net income/(loss) per
share
|
|
|
|
|
Ordinary share –
basic
|
|
243,154,138
|
|
258,386,436
|
Ordinary share –
diluted
|
|
256,149,311
|
|
258,386,436
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
Selling and
marketing
|
|
183
|
|
31
|
General and
administrative
|
|
838
|
|
340
|
Research and
development
|
|
885
|
|
267
|
Total
|
|
1,906
|
|
638
|
Zepp Health
Corporation
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of U.S. dollars ("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
For the
Nine Months Ended
September 30,
|
|
|
2023
|
|
2024
|
|
|
US$
|
|
US$
|
|
|
|
|
|
Revenues
|
|
269,853
|
|
123,061
|
Cost of
revenues
|
|
(206,329)
|
|
(74,756)
|
Gross
profit
|
|
63,524
|
|
48,305
|
Operating
expenses:
|
|
|
|
|
Selling and
marketing
|
|
(32,543)
|
|
(33,220)
|
General and
administrative
|
|
(21,678)
|
|
(18,299)
|
Research and
development
|
|
(40,379)
|
|
(35,098)
|
Total operating
expenses
|
|
(94,600)
|
|
(86,617)
|
Operating
loss
|
|
(31,076)
|
|
(38,312)
|
|
|
|
|
|
Other income and
expenses:
|
|
|
|
|
Interest
income
|
|
2,264
|
|
2,901
|
Interest
expense
|
|
(5,314)
|
|
(4,105)
|
Other (expense)/income,
net
|
|
(641)
|
|
111
|
Gain from fair value
change of long-term investments
|
|
922
|
|
1,978
|
Investment
income
|
|
153
|
|
-
|
Loss before income
tax and loss from equity
method investments
|
|
(33,692)
|
|
(37,427)
|
Income tax
benefits/(expenses)
|
|
5,205
|
|
(119)
|
Loss before income
from equity method investments
|
|
(28,487)
|
|
(37,546)
|
Net loss from equity
method investments
|
|
(1,335)
|
|
(1,361)
|
Net
loss
|
|
(29,822)
|
|
(38,907)
|
Less: Net loss
attributable to noncontrolling interest
|
|
(81)
|
|
(50)
|
Net
loss attributable to Zepp Health
Corporation
|
|
(29,741)
|
|
(38,857)
|
Net loss per share
attributable to Zepp Health Corporation
|
|
|
|
|
Basic loss per ordinary
share
|
|
(0.12)
|
|
(0.15)
|
Diluted loss per
ordinary share
|
|
(0.12)
|
|
(0.15)
|
|
|
|
|
|
Net
loss per ADS (16 ordinary shares equal to
1 ADS)[3]
|
|
|
|
|
ADS – basic
|
|
(1.95)
|
|
(2.40)
|
ADS –
diluted
|
|
(1.95)
|
|
(2.40)
|
|
|
|
|
|
Weighted average
number of shares used in computing net loss per
share
Ordinary share –
basic
|
|
243,679,883
|
|
259,433,512
|
Ordinary share –
diluted
|
|
243,679,883
|
|
259,433,512
|
Zepp Health
Corporation
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Amounts in
thousands of U.S. dollars ("US$")
|
except for number of
shares and per share data, or otherwise noted)
|
|
|
|
For the
Nine Months Ended
September 30,
|
|
|
2023
|
|
2024
|
|
|
US$
|
|
US$
|
|
|
|
|
|
Total operating
expenses
|
|
(94,600)
|
|
(86,617)
|
Share-based
compensation expenses[2]
|
|
7,013
|
|
3,827
|
Total adjusted
operating expenses
|
|
(87,587)
|
|
(82,790)
|
|
|
|
|
|
Operating
loss
|
|
(31,076)
|
|
(38,312)
|
Share-based
compensation expenses
|
|
7,013
|
|
3,827
|
Adjusted operating
loss
|
|
(24,063)
|
|
(34,485)
|
|
|
|
|
|
Net loss
|
|
(29,822)
|
|
(38,907)
|
Share-based
compensation expenses
|
|
7,013
|
|
3,827
|
Income tax
(benefits)/expenses
|
|
(5,205)
|
|
119
|
Interest
income
|
|
(2,264)
|
|
(2,901)
|
Interest
expense
|
|
5,314
|
|
4,105
|
Adjusted
EBIT
|
|
(24,964)
|
|
(33,757)
|
|
|
|
|
|
Net
loss attributable to Zepp Health
Corporation
|
|
(29,741)
|
|
(38,857)
|
Share-based
compensation expenses
|
|
7,013
|
|
3,827
|
Adjusted net loss
attributable to Zepp Health
Corporation[2]
|
|
(22,728)
|
|
(35,030)
|
Adjusted net loss
per share attributable to
Zepp Health Corporation
|
|
|
|
|
Adjusted basic loss per
ordinary share
|
|
(0.09)
|
|
(0.14)
|
Adjusted diluted loss
per ordinary share
|
|
(0.09)
|
|
(0.14)
|
|
|
|
|
|
Adjusted net
loss per ADS (16 ordinary
shares equal to
1 ADS)[3]
|
|
|
|
|
ADS – basic
|
|
(1.49)
|
|
(2.16)
|
ADS –
diluted
|
|
(1.49)
|
|
(2.16)
|
|
|
|
|
|
Weighted average
number of shares used in computing
adjusted net loss per share
|
|
|
|
|
Ordinary share –
basic
|
|
243,679,883
|
|
259,433,512
|
Ordinary share –
diluted
|
|
243,679,883
|
|
259,433,512
|
|
|
|
|
|
Share-based
compensation expenses included
are follows:
|
|
|
|
|
Selling and
marketing
|
|
497
|
|
368
|
General and
administrative
|
|
3,154
|
|
1,812
|
Research and
development
|
|
3,362
|
|
1,647
|
Total
|
|
7,013
|
|
3,827
|
View original
content:https://www.prnewswire.com/news-releases/zepp-health-corporation-reports-third-quarter-2024-unaudited-financial-results-302308549.html
SOURCE Zepp Health Corp.