Q2 2024 Zepp Health Corp Earnings Call Transcript
Key Points
- Zepp Health Corp (ZEPP) reported a 6% sequential increase in self-branded product sales, indicating successful transformation efforts.
- The company achieved a gross margin of 40.3%, the highest in its history, driven by an improved product mix and reduced clearance activities.
- Zepp Health Corp (ZEPP) is leveraging AI to enhance its products, including the integration of OpenAI's GPT-4 into Amazfit smartwatches.
- The company plans to launch several new products in the second half of the year, including the T-Rex 3 outdoor smartwatch, OWS earbuds, and the Amazfit Helio Ring.
- Zepp Health Corp (ZEPP) has expanded its global visibility through major sponsorships and partnerships with renowned athletes, enhancing its brand presence in key markets.
- Despite the positive developments, Zepp Health Corp (ZEPP) reported a year-over-year decline in overall sales.
- The company continues to face significant challenges in the consumer electronics sector, including pressure on discretionary spending and increased competition from major brands like Apple and Samsung.
- Operating costs for the quarter were USD25.3 million, reflecting ongoing expenses despite efforts to reduce costs.
- R&D expenses decreased by 13.8% year over year, which could impact future innovation and product development.
- Zepp Health Corp (ZEPP) received a non-compliance notice from the NYSE and must rectify the issue by October 31, potentially requiring a reverse stock split.
Hello, ladies and gentlemen. Thank you for standing by for Zepp Health Corporation's second-quarter 2024 earnings conference call. (Operator Instructions) Today's conference call is being recorded. I will now turn 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 second-quarter 2024 earnings conference call. The company's financial and operating results were issued in a press release by 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. Wayne Wang Huang, our Chairman of the Board of Directors and Chief Executive Officer; and Ms. Leon Deng, our Chief Financial Officer. The company's management will begin with prepared remarks and the call will conclude with a Q&A session. Mr. Mike
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