Viomi Technology Co. Reports Strong Earnings and Strategic Growth

Viomi Technology Co ((VIOT)) has held its Q4 earnings call. Read on for the main highlights of the call.

In its latest earnings call, Viomi Technology Co. expressed a positive sentiment, highlighting significant revenue growth and a strategic shift towards profitability. Despite facing challenges such as a decline in gross margin and reduced revenue from consumables, the company remains optimistic due to successful product launches and strategic market expansions, which suggest a promising outlook.

Record Revenue Growth

Viomi Technology Co. reported a remarkable full-year net revenue of RMB2.1 billion, representing a 29.3% increase from RMB1,638.7 million in 2023. This growth was driven by a 39% year-over-year increase in revenues from home water solutions, showcasing the company’s strong market performance.

Turnaround to Profitability

The company achieved a net income of RMB62.3 million, marking a significant turnaround from the losses experienced in the past two years. This shift to profitability underscores the effectiveness of Viomi’s strategic reorganization efforts.

Successful Product Launches

Viomi’s product innovation was evident with the successful launch of the Vortex series under-the-sink RO water purifiers, which surpassed its Kickstarter funding goal on the first day. Additionally, the AI water purifier gained high rankings on various platforms during the Double 11 Shopping Festival, highlighting consumer interest and market success.

Strategic Partnerships

The company renewed its agreement with Xiaomi and formed a strategic partnership with Malaysia’s leading home appliance retailer, strengthening its market position and expanding its collaborative efforts.

Global Market Expansion

Viomi’s participation in CES 2025 and its expansion into North America and Southeast Asia demonstrate its commitment to global market growth and diversification.

Gross Margin Decline

Despite the positive revenue growth, Viomi experienced a decline in gross margin from 32.8% to 22.6% in the second half of 2024, and from 31.9% to 25.9% for the full year. This was primarily due to a higher revenue contribution from low-margin products.

Decreased Revenue from Consumables

Revenues from consumables decreased by 24.6% in the second half and 14.5% for the full year of 2024, mainly due to reduced sales of water purifier filters sold to Xiaomi, indicating a challenge in this segment.

Forward-Looking Guidance

Looking ahead, Viomi Technology Co. plans to strengthen its domestic market presence, drive international expansion, and enhance its water purification product portfolio. The company aims to deepen collaborations, particularly following its successful entry into the North American and Southeast Asian markets. These strategic initiatives are expected to further bolster the company’s growth trajectory.

In conclusion, Viomi Technology Co.’s earnings call reflected a positive sentiment, driven by strong revenue growth and a strategic shift towards profitability. Despite challenges such as declining gross margins and reduced consumables revenue, the company’s successful product launches and strategic market expansions present a promising outlook for the future.