Zepp Health(ZEPP)

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Zepp Health(ZEPP) - 2022 Q4 - Earnings Call Presentation
2023-03-21 14:01
Zepp Health Earnings Presentation ...
Zepp Health(ZEPP) - 2022 Q4 - Earnings Call Transcript
2023-03-21 13:59
Zepp Health Corporation (NYSE:ZEPP) Q4 2022 Earnings Conference Call March 21, 2023 8:00 AM ET Company Participants Grace Zhang - Director, Investor Relations Wang Huang - Chairman of Board of Directors and Chief Executive Officer Leon Deng - Chief Financial Officer Conference Call Participants Operator Hello, ladies and gentlemen. Thank you for standing by for Zepp Health Corporation's Fourth Quarter and Full-Year 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. Today' ...
Zepp Health(ZEPP) - 2022 Q3 - Earnings Call Transcript
2022-11-21 14:43
Zepp Health Corporation (NYSE:ZEPP) Q3 2022 Earnings Conference Call November 21, 2022 7:30 AM ET Company Participants Grace Zhang - Director, Investor Relations Wang Huang - Chairman of Board of Directors and Chief Executive Officer Leon Deng - Chief Financial Officer Conference Call Participants Clive Cheung - Credit Suisse Operator Hello, ladies and gentlemen. Thank you for standing by for Zepp Health Corporation's Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a list ...
Zepp Health(ZEPP) - 2022 Q2 - Earnings Call Transcript
2022-08-25 15:42
Zepp Health Corporation (NYSE:ZEPP) Q2 2022 Earnings Conference Call August 25, 2022 8:00 AM ET Company Participants Grace Zhang - Director, IR Wang Huang - Chairman of Board of Directors & CEO Leon Cheng Deng - CFO Conference Call Participants Operator Hello, ladies and gentlemen. Thank you for standing by for Zepp Health Corporation's Second Quarter 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. Today's conference is being recorded. I'd now like to turn the call ove ...
Zepp Health(ZEPP) - 2022 Q1 - Earnings Call Transcript
2022-05-24 17:25
Financial Data and Key Metrics Changes - The company reported Q1 2022 revenue of RMB0.8 billion, a decrease of 34% year-over-year, primarily due to reduced Mi Band 6 shipments and lower discretionary spending by consumers [7][17][21] - Gross margin for Q1 2022 was 20.1%, down from 22.5% in Q1 2021, attributed to increased freight costs and pandemic-related challenges [18][21] - Adjusted net loss for Q1 2022 was RMB75.7 million, compared to an adjusted net loss of RMB29.0 million in Q1 2021 [21] Business Line Data and Key Metrics Changes - Self-branded products contributed over 65% of total revenue in Q1 2022, indicating a shift in revenue mix towards these products [8][18] - Revenue from self-branded products in North America surged by more than 110% year-over-year, showcasing strong market performance [9] Market Data and Key Metrics Changes - The ongoing COVID-19 pandemic and geopolitical tensions have negatively impacted consumer confidence and discretionary spending, particularly in Europe and the United States [17][29] - The company anticipates a rebound in revenue for Q2 2022, projecting net revenue between RMB1.08 billion and RMB1.3 billion, compared to RMB1.84 billion in Q2 2021 [23] Company Strategy and Development Direction - The company is focusing on technological innovation in AI, health Big Data, and product portfolio expansion to capture opportunities in the healthcare services industry [14][15] - Upcoming product launches include the upgraded T-Rex 2 and new GTS and GTR series, aimed at enhancing user experience and expanding market reach [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the pandemic and supply chain disruptions but expressed optimism about long-term growth prospects [15][17] - The company remains committed to strict cost control measures and disciplined working capital management throughout 2022 [23] Other Important Information - The company has initiated a share repurchase program, buying back $6.9 million worth of shares by March 31, 2022, reflecting confidence in its growth strategy [22] - The company is exploring options to mitigate delisting risks, including a potential second listing in Hong Kong [58] Q&A Session Summary Question: Impact of COVID in Shanghai on operations and supply chain - Management indicated that the impact of the Shanghai lockdown was relatively limited compared to Shenzhen, but it still dampened sales outlook for Q1 and Q2 [27] Question: Forecast for consumer electronics and smartwatch market - Management noted a slowdown in consumer discretionary income due to inflation but remains optimistic about the wearables market's growth [29] Question: Outlook for Q2 and revenue contribution from Xiaomi - Q2 is expected to show strong quarter-on-quarter growth, driven by new product launches, with Xiaomi's revenue contribution anticipated to increase [33][34] Question: Functional upgrades for self-branded products - The company aims to increase average selling prices (ASP) through product upgrades and enhancements in features and functionalities [38][40] Question: Expansion of Zepp OS and operational expenses - Management is focused on enhancing Zepp OS with new applications and services while planning to right-size operational expenses moving forward [44][46] Question: Growth expectations for Amazfit products - Self-branded products are expected to grow in Q2, with a gradual improvement anticipated in Q3 and Q4 due to seasonal demand [51][52] Question: Buyback strategy and delisting risk - The company plans to continue its buyback program and is monitoring delisting risks closely, considering options for a second listing [57][58] Question: Future relationship with Xiaomi - The relationship with Xiaomi remains strong, with ongoing discussions for new product lines and categories [60]
Zepp Health(ZEPP) - 2021 Q4 - Earnings Call Transcript
2022-03-17 16:31
Financial Data and Key Metrics Changes - Full-year revenue for 2021 reached 6.125 billion RMB, representing a nominal year-over-year growth of 1% [6][16] - Q4 2021 total revenue was 1.7 billion RMB, a decrease of 15.8% year-over-year, primarily due to a decline in Xiaomi product sales and supply chain challenges [16][18] - Net income attributed to Zepp Health for Q4 2021 was 36 million RMB, down from 150 million RMB in Q4 2020 [23] Business Line Data and Key Metrics Changes - Self-branded products accounted for over 47% of total revenue in 2021, up from 31% in 2020, and contributed over half of the gross profit [19] - Shipments of self-branded products increased by 60% in 2021 despite supply chain challenges [16][19] - Gross margin for Q4 2021 was 19.3%, a slight improvement of 30 basis points compared to Q4 2020, supported by a higher proportion of self-branded products [19] Market Data and Key Metrics Changes - Self-branded product shipment volumes in North America increased by approximately 200% year-over-year [7] - Shipments to Italy and France increased by more than 100% in Q4 2021 [7] - Zepp Health ranked number 5 in the global adult smartwatch market according to IDC data for Q4 2021 [7] Company Strategy and Development Direction - The company aims to enhance its product capabilities and brand recognition globally while expanding its smart health ecosystem [8][14] - Plans to launch an AI sleep service and integrate investments in imaging technology to empower users in managing health data [9][14] - The company is focusing on vertical integration to strengthen capabilities in chips, cloud services, algorithms, and operating systems [14] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming supply chain challenges, expecting improvements in the second half of 2022 [17][24] - The ongoing COVID-19 pandemic and geopolitical tensions, particularly the Russia-Ukraine conflict, pose risks to revenue but are manageable in the short term [34][60] - Guidance for Q1 2022 is conservative, with expected net revenues between 0.75 billion and 1 billion RMB, down from 1.15 billion RMB in Q1 2021 [25] Other Important Information - The company announced a special cash dividend of US$0.025 per ordinary share and continued its share buyback program [15][23] - The company has seen a strong increase in its active user base, surpassing 40 million by the end of 2021 [8] Q&A Session Summary Question: Impact of chip shortage on gross margin - Management indicated that a shift towards self-branded products, which have higher gross margins, helped improve overall gross margin despite chip shortages [29][30] Question: Marketing strategy changes in uncertain global environment - Management stated that the marketing strategy remains unchanged, although they are monitoring risks related to the Russia-Ukraine situation [34] Question: Sales performance of the newly launched GT 3 series - The GT 3 series has received positive feedback and is performing well, although supply chain issues have limited potential sales [38] Question: Timeline for regulatory approval of GT 3 series - Management expects a shorter timeline for Chinese regulatory approval, with potential certifications for European and U.S. markets following [40] Question: Current state of the European market - Apart from Russia and Ukraine, the European market is experiencing healthy growth, with strong performance in Western Europe [42] Question: Risks associated with Xiaomi product shipments - Management confirmed a strong ongoing relationship with Xiaomi and noted that while the band market is declining, Xiaomi maintains a significant market share [46][47] Question: R&D expenditure trends - R&D expenses have decreased as a percentage of revenue due to fewer new product launches, but the company remains committed to R&D investment [49][51] Question: COVID-19 impact on manufacturing capacity - COVID-19 has created logistical challenges and impacted sales, particularly during lockdowns in key regions [53][54] Question: Semiconductor supply challenges - Management anticipates improvements in semiconductor supply by the second half of 2022, although challenges may persist in Q2 [56][57]