Viomi Technology (VIOT) Q4 2024 earnings summary

Executive summary

• Completed a strategic reorganization in August 2024, divesting non-core IoT businesses to focus on home water solutions, resulting in improved operational efficiency and profitability, and reversing prior year losses.

• Full-year 2024 net revenue reached RMB2,119 million, with income from operations at RMB156.3 million, both exceeding previous guidance.

• Net income for 2024 was RMB62.3 million, reversing losses from the prior two years.

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

• Enhanced operational efficiency and product innovation, especially in AI-powered water purification, drove growth.

Financial highlights

• Second half 2024 net revenues were RMB1,282.4 million, up 42.8% year-over-year; full-year net revenues were RMB2,119 million, up 29.3% from 2023.

• Gross profit for 2024 was RMB548.7 million, with a gross margin of 25.9%, down from 31.9% in 2023 due to product mix shift.

• Net income attributable to shareholders was RMB33.4 million for 2024; non-GAAP net income was RMB79.9 million.

• Cash and cash equivalents as of December 31, 2024, were RMB1,026.2 million; total cash, restricted cash, and investments exceeded RMB1.35 billion.

• Income from operations for FY 2024 was RMB156.3 million, exceeding the estimated range of RMB110M–130M.

Outlook and guidance

• 2025 is positioned as a new starting point, with a focus on expanding domestic and international markets, especially North America and Southeast Asia.

• Plans to enhance product innovation, strengthen strategic partnerships, and leverage the Water Purifier Gigafactory for scale and profitability.

• Continued investment in AI-driven product development and brand building to drive long-term growth.

• Management expects continued high-quality growth, leveraging AI and advanced manufacturing.