Zepp Health Clocks Q2 Revenue Growth Of 61%

Zepp Health Corp ZEPP reported second-quarter FY21 revenue growth of 61.4% year-on-year to $284.2 million (RMB1.8 billion), beating the analyst consensus of $280 million.
Revenue from Xiaomi Corp XIACF XIACY wearable products and self-branded products increased due to the launch of Mi Band 6 and sales of premium GT series, basic Bip and Pop models, and rugged T-Rex.
Margin: The gross margin contracted 30 bps to 22%.
Adjusted income per ADS of $0.31 beat the analyst consensus of $0.13.
Zepp held $215.7 million in cash and equivalents.
Drivers: Total units shipped rose 29.2% Y/Y to 11.5 million.
The unit shipments of Amazfit and Zepp-branded products increased 114.3% Y/Y.
Unit shipment for Xiaomi wearable products rose 22% Y/Y.
Zepp topped the high end of its guidance range for Q2, which included an 81% increase in its own Amazfit and Zepp branded product revenue and a 53% increase in revenue from products designed and built for Xiaomi.
Outlook: Zepp sees Q3 revenue of RMB1.6 billion - RMB1.8 billion.
Price Action: ZEPP shares traded lower by 0.51% at $9.76 on the last check Thursday.