Report Highlights

⭐️ Zepp Health is an FRC Top Pick ⭐️

  • ZEPP is up 28% since our previous report in November 2024. 
  • Q4-2024 revenue surged 40% QoQ, exceeding our estimate by 9%, primarily driven by a 29% increase in product shipments. Adjusted EPS remained negative, but improved sequentially (-$0.05 to -$0.04). However, it fell short of our -$0.02 forecast due to higher operating expenses.
  • On a YoY basis, both shipments and revenue fell in Q4, and for the full year, following Zepp's strategic decision to discontinue low-margin products. 
  • In Q4, Zepp maintained its position as the seventh-largest global smartwatch maker by unit sales, trailing Apple (NASDAQ: AAPL), Samsung (KOSE: A005930), Garmin (NYSE: GRMN), Fitbit (Google/NASDAQ: GOOGL), Xiaomi (SEHK: 1810), and Huawei. For comparison, Apple sells ∼25M units annually, while Zepp sells ∼4M units.