Viomi Technology EPADS misses by $0.21, misses on revenue

$Viomi Technology Co., Ltd ( VIOT)$, a leading IoT @ Home technology company inChina, today announced its unaudited financial results for the third quarter endedSeptember 30, 2021.

Third Quarter 2021 Financial and Operating Highlights

• Net revenuesreachedRMB1,056.5 million(US$164.0 million), compared toRMB1,486.7 millionfor the third quarter of 2020.
• Gross marginwas 22.7%, compared to 17.1% for the third quarter of 2020.
• Number of cumulative household usersreached approximately 6.3 million, compared to approximately 5.9 million as of the end of the second quarter of 2021 and approximately 4.6 million as of the end of the third quarter of 2020.
• Percentage of household users with at least two connected productsreached 21.1%, compared to 20.7% as of the end of the second quarter of 2021 and 19.5% as of the end of the third quarter of 2020.

ThirdQuarter 2021 Financial Results

REVENUE

Net revenues wereRMB1,056.5 million(US$164.0 million), compared toRMB1,486.7 millionfor the third quarter of 2020. Net revenues were in line with the Company's previous guidance and the decrease was mainly due to the significant decrease in sales of Xiaomi-branded sweeper robots, as well as product portfolio adjustments for margin expansion in other categories.

- IoT @ Home portfolio.Revenues from IoT @ Home portfolio decreased by 39.3% toRMB643.5 million(US$99.9 million) fromRMB1,060.2 millionfor the third quarter of 2020. The decline was primarily due to (i) the decrease in sales of Xiaomi-branded sweeper robots; (ii) product portfolio adjustments for margin expansion in some categories.

- Home water solutions. Revenues from home water solutions increased by 7.9% toRMB157.0 million(US$24.4 million) fromRMB145.4 millionfor the third quarter of 2020. The growth was primarily driven by the Company's product portfolio adjustment in this category, which contributed to increased sales of and demand for new and larger flux water purifiers as well as a gross margin expansion.

- Consumables.Revenues from consumables increased by 11.7% toRMB79.6 million(US$12.4 million) fromRMB71.3 millionfor the third quarter of 2020, primarily due to increased demand for the Company's water purifier filter products.

- Small appliances and others.Revenues from small appliances and others decreased by 15.9% toRMB176.5 million(US$27.4 million) fromRMB209.9 millionfor the third quarter of 2020, primarily due to the Company's continued product portfolio optimization to obtain a higher gross margin in this category.

GROSS PROFIT

Gross profit wasRMB239.7 million(US$37.2 million), compared toRMB254.3 millionfor the third quarter of 2020. Gross margin increased to 22.7% from 17.1% for the third quarter of 2020, primarily driven by the Company's continued efforts to shift the business and product mix toward higher gross margin products.