Zepp Health Corporation reported its third quarter 2024 unaudited financial results, with revenues reaching US$42.5 million, a 48.9% decrease from US$83.1 million in the third quarter of 2023. This decline was primarily attributed to reduced sales of Xiaomi wearable products and supply constraints for new self-branded product launches. Despite the overall revenue decrease, self-branded product revenue increased by 9.9% quarter-over-quarter, indicating positive momentum in this segment.
The company achieved a gross margin of 40.6% in Q3 2024, an increase from 33.9% in the same period of 2023, marking the highest quarterly gross margin in its history. This improvement was supported by the strong performance of self-branded products and a more favorable product mix. Operating loss for the quarter was US$12.5 million, compared to an operating income of US$1.4 million in Q3 2023, while net loss attributable to Zepp Health was US$13.3 million, compared to a net income of US$0.3 million in the prior year.
Research and development expenses increased by 4.8% year-over-year to US$10.9 million, reflecting continued investment in new technologies, including AI. Selling and marketing expenses rose by 21.9% year-over-year to US$11.9 million, driven by marketing campaigns and the expansion of the Amazfit Athletes team. As of September 30, 2024, the company maintained a cash balance of US$127.7 million.
Zepp Health announced the extension of its share repurchase program for another 24 months through November 2026, with US$14.5 million used to repurchase approximately 1.7 million ADSs as of September 30, 2024. The company also provided an outlook for the fourth quarter of 2024, expecting net revenues between US$55 million and US$70 million, representing 29% to 65% growth for self-branded products compared with the third quarter of 2024.
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