Viomi Technology (VIOT) Q4 2024 earnings summary

Executive summary

• Completed a strategic reorganization in August 2024, divesting non-core and underperforming IoT businesses to focus on core home water solutions, reversing prior year losses and exceeding revenue and income expectations.

• Achieved strong financial performance in 2024, with net revenue of RMB 2,119 million and operating income of RMB 156.3 million, both surpassing guidance.

• Net income for 2024 reached RMB 62.3 million, reversing losses from previous years.

• Launched new AI-powered water purification products and expanded global presence through product debuts and partnerships.

Financial highlights

• Second half 2024 net revenues: RMB 1,282.4 million, up 42.8% year-over-year; full year 2024 net revenues: RMB 2,119 million, up 29.3% from 2023.

• Gross profit for 2024: RMB 548.7 million; gross margin declined to 25.9% from 31.9% in 2023 due to product mix shift.

• Net income attributable to shareholders: RMB 33.4 million; non-GAAP net income: RMB 79.9 million for 2024.

• Cash and equivalents at year-end: RMB 1,026.2 million; total cash, restricted cash, short-term deposits, and investments exceeded RMB 1.35 billion.

• Income from operations for 2024 was RMB 156.3 million, up 42.0% year-over-year.

Outlook and guidance

• 2025 is positioned as a new starting point, with focus on domestic market growth, international expansion, product innovation, and strategic partnerships.

• Plans to leverage trade-in policy incentives and AI technology to accelerate product innovation and market penetration.

• Continued investment in R&D and brand building to drive long-term growth and shareholder value.

• Management expects continued high-quality growth, leveraging AI and advanced manufacturing to expand in domestic and international markets.