Benzinga | Aug 19, 2021 10:19AM EDT

Zepp Health Clocks Q2 Revenue Growth Of 61%

* Zepp Health Corp (NYSE: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 (OTC:XIACF) (OTC: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.