#United States #Milpitas #Zepp Health #Amazfit #T-Rex 3

Overview of Financial Results

On March 26, 2025, Zepp Health Corporation (NYSE: ZEPP) delivered its unaudited financial results for the fourth quarter and full year of 2024. Amidst ongoing economic challenges, the company achieved substantial milestones, including a remarkable 40% increase in revenue on a quarter-over-quarter basis.

Fourth Quarter Financial Highlights

• - Revenue: For Q4 2024, Zepp Health reported a revenue of $59.5 million, representing a 40.2% increase compared to the previous quarter, although it reflects a 28.3% decline from Q4 2023. The primary growth driver was the exceptional performance of Amazfit-branded products, which contributed to a 43.4% quarter-over-quarter boost.

• - Gross Margin: The gross margin reached 36.8%, an improvement from 34.7% during the same period last year. This increase was largely attributed to the positive market reception of the T-Rex 3 and other high-margin products.

• - Operating Loss: The adjusted operating loss narrowed to $7.4 million, marking it as the lowest loss level within 2024, despite the challenging market conditions.

Full Year Financial Insights

For the entire year of 2024, Zepp Health reflected a gross margin of 38.5%, significantly higher than 26.2% for 2023. This upward trend showcased the company’s effective product mix and improved brand power, setting a robust foundation for future growth.

• - Revenue Overview: Total revenue for 2024 was $182.6 million, down by 48.3% from 2023, largely due to the significant decline in sales of Xiaomi wearable products, down 88%. Nevertheless, Amazfit products made up 94% of total revenues, compared to 73.9% in 2023, indicating a strategic shift.

• - Adjusted Operating Expenses: These totaled $110.4 million, slightly lower compared to $111.7 million in the previous year, emphasizing cost management amidst challenging economic climates.

Leadership Insights

Wayne Huang, Chairman and CEO of Zepp, expressed optimism regarding the company’s strategic transitions. He highlighted that despite facing macroeconomic challenges, the company is strengthening its brand influence and market presence. Notably, the T-Rex 3 has become a standout in the outdoor sports watch market, propelling Amazfit sales.

During the call, Huang emphasized the addition of renowned athletes such as Gabby Thomas and Jasmine Polini into the Amazfit athlete ambassador program, expanding their brand reach. This, along with a partnership with HYROX, aims to boost brand visibility and sales further in 2025.

Technological Advancements

On the technology front, Zepp Health is advancing its Zepp OS with OpenAI 4.5 integration, enhancing user experience by introducing nutrition tracking features. This development aligns with their commitment to expanding innovative tech solutions.

Future Outlook

For the first quarter of 2025, Zepp Health anticipates revenues between $40 million and $45 million, a potential growth of 14% to 29% for Amazfit-branded products compared to Q1 2024. This forecast reinforces company confidence in recovering market dynamics.

Conclusion

As Zepp Health moves forward, it remains focused on optimizing operations, expanding market share, and investing in branding and technological innovations. With a solid cash reserve of $111 million, Zepp Health is poised to navigate future challenges and capitalize on market opportunities, ensuring long-term growth and sustainability.

This financial report marks a crucial step for Zepp Health Corporation as it continues to establish itself firmly within the health technology sector, striving for improved performance and consumer engagement going into 2025.