Q1 2025 Zepp Health Corp Earnings Call Transcript
Key Points
- Zepp Health Corp (ZEPP) reported a 10% year-over-year growth in Amazfit revenue, marking the first growth after a two-year transformation period.
- The company successfully launched new products, Amazfit Active 2 and Amazfit Bip 6, which received positive reviews and strong initial sales momentum.
- Zepp Health Corp (ZEPP) has diversified its supply chain by expanding operations in Vietnam and exploring opportunities in the NAFTA region, enhancing operational agility.
- The company achieved a gross margin of 37.3% in Q1 2025, higher than both Q4 2024 and Q1 2024, driven by new product launches.
- Zepp Health Corp (ZEPP) has strengthened its brand presence through strategic partnerships with athletes and participation in global events, enhancing brand visibility and market share.
- Despite the sales growth, fixed operating expenses were not fully absorbed, putting pressure on operating profit.
- The company faced a $1 million impact from foreign exchange headwinds during the quarter.
- Operating expenses increased year-over-year, driven by higher R&D and marketing expenses.
- Zepp Health Corp (ZEPP) reported an adjusted operating loss of $17.2 million for Q1 2025, compared to a loss of $13.1 million in the same period of 2024.
- The company remains exposed to potential tariff impacts, with an estimated $2 million to $3 million impact for the full year 2025, although efforts are being made to offset this through efficiency gains.
Hello, ladies and gentlemen. Thank you for standing by for Zepp Health Corporation's first quarter 2025 earnings conference call. (Operator Instructions) Today's conference call is being recorded.
I will now send the call over to your host, Ms. Grace Zhang, Director of Investor Relations for the company. Please go ahead, Grace.
Hello, everyone, and welcome to Zepp Health Corporation's First Quarter 2025 Earnings Conference Call. The company's financial and operating results were issued in a press release via the newswire services earlier today and are posted online. You can also view the earnings press release and slides referred to on this call by visiting the IR section of the company's website at ir.zepp.com.
Participating in today's call are Mr. Wang Huang Wang, our Chairman of the Board of Directors and the Chief Executive Officer; and Mr. Leon Cheng Deng, our Chief Financial Officer. The company's management will begin with prepared remarks, and the call will conclude with a Q&A
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
