Zepp Health Corp
NYSE:ZEPP
Zepp Health Corp
Zepp Health Corp. engages in the development, manufacture, and sale of smart wearable technology devices. The company is headquartered in Hefei, Anhui. The company went IPO on 2018-02-08. The company has developed a platform of proprietary technology including artificial intelligence (AI) chips, biometric sensors, and health data algorithms. The company is engaged in developing smart wearable technology. The company designs and develops biometric and activity data-driven fitness and smart watches. The company markets its products under the brand name, Amazfit and is the sole partner for Xiaomi wearable products. The products includes Amazfit BIP, Amazfit pace, Amazfit equator, Amazfit ARC, and accessories, such as sports bands, watch straps, ear buds, charging units, and core trackers. The smart watches provides activity tracking, sleep tracking, smart notifications from mobile devices, GPS, heart rate sensing, water resistance, wireless syncing with mobile phones. The company also provides a mobile application to keep track of the fitness information, set alarms and receive call notifications on the smart watch.
Zepp Health Corp. engages in the development, manufacture, and sale of smart wearable technology devices. The company is headquartered in Hefei, Anhui. The company went IPO on 2018-02-08. The company has developed a platform of proprietary technology including artificial intelligence (AI) chips, biometric sensors, and health data algorithms. The company is engaged in developing smart wearable technology. The company designs and develops biometric and activity data-driven fitness and smart watches. The company markets its products under the brand name, Amazfit and is the sole partner for Xiaomi wearable products. The products includes Amazfit BIP, Amazfit pace, Amazfit equator, Amazfit ARC, and accessories, such as sports bands, watch straps, ear buds, charging units, and core trackers. The smart watches provides activity tracking, sleep tracking, smart notifications from mobile devices, GPS, heart rate sensing, water resistance, wireless syncing with mobile phones. The company also provides a mobile application to keep track of the fitness information, set alarms and receive call notifications on the smart watch.
Revenue Growth: Zepp Health reported Q3 revenue of $75.8 million, up 78.5% year-over-year and at the upper end of guidance.
Gross Margin: Gross margin was 38.2%, up 2% sequentially but down from 40.6% in Q3 2024 due to entry-level product discounts.
Profitability: The company achieved operating breakeven in Q3, a significant improvement from an $11.3 million operating loss a year ago.
Cash Position: Cash balance increased to $103 million from $95 million in the previous quarter.
Guidance Raised: Q4 revenue is expected between $82 million and $86 million, representing 38% to 45% year-over-year growth.
Product Launches: The flagship Amazfit T-Rex 3 Pro drove strong results, with the 44mm version launching in Q4 and more products expected.
Supply Chain & Inventory: Inventory increased slightly to meet demand and prepare for the holiday season, with some Helio Strap supply constraints improving into Q4.
Channel Strategy: Online sales channels, especially Amazon and company website, are driving growth, with further offline expansion planned as supply issues are resolved.
