Zepp Health Corporation ( (ZEPP) ) has released its Q4 earnings. Here is a breakdown of the information Zepp Health Corporation presented to its investors.
Zepp Health Corporation, a leader in smart wearable and health technology, is known for its Amazfit, Zepp Clarity, and Zepp Aura brands, providing users with health, fitness, and wellness solutions through advanced technology and data-driven insights. The company recently reported its unaudited financial results for the fourth quarter and full year of 2024, highlighting significant growth in its Amazfit-branded products and improvements in gross margin despite macroeconomic challenges and a decline in overall revenue compared to the previous year.
In the fourth quarter of 2024, Zepp Health achieved a revenue of $59.5 million, marking a 40.2% increase quarter-over-quarter, driven by the successful launch of the Amazfit T-Rex 3. The company’s gross margin improved to 36.8% from 34.7% in the same period last year, reflecting a better product mix and enhanced brand awareness. However, the company reported an adjusted operating loss of $7.4 million, the lowest level in 2024, and a net loss of $36.9 million due to non-recurring provisions.
For the full year 2024, Zepp Health’s gross margin rose to 38.5%, a significant increase from 26.2% in 2023, despite a 48.3% decline in total revenues primarily due to decreased sales of Xiaomi wearable products. The company maintained its focus on cost efficiency, with adjusted operating expenses slightly decreasing to $110.4 million from $111.7 million in 2023. Zepp Health ended the year with $111 million in cash, supporting its investment and market response capabilities.
Looking ahead, Zepp Health is optimistic about its growth prospects, with plans to expand its market share and enhance brand influence, particularly in emerging markets. The company expects revenue growth for Amazfit-branded products in the first quarter of 2025 and continues to invest in technology and partnerships to strengthen its market position. With a robust roadmap and an integrated ecosystem, Zepp Health is confident in its ability to achieve near-term profitability and long-term success.