Docoh
Loading...

VIOT Viomi Technology

Participants
Cecilia Li IR Director
Xiaoping Chen Founder, Chairman & Chief Executive Officer
Wickham Thai Head of Finance Department
Lillian Lou Morgan Stanley
Vincent Yu Needham & Company
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Hello, ladies and gentlemen, thank you for standing by for Viomi Technology Company Ltd's Earnings Conference Call for the Third Quarter of 2021. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Cecilia Li, the IR Director of the company. Cecilia. ahead, go Please

Cecilia Li

Hello, conference welcome of call operator. Co. XXXX. Viomi Limited earnings for everyone, you, to and Technology Thank the third

financial today and As recorded. posted online. issued conference this are a and company's in earlier a were operating release is press results reminder, The being

the the You Head Department. the Participating Mr. the of at with Company’s release at Thai, management ir.viomi.com. earnings and the are up for Founder, Executive section call can e-mail Directors Officer, and Chief session. Chairman Q&A the the begin distribution Chen, Board and of IR today’s will download of Mr. will in Xiaoping a conclude call prepared and Wickham company’s list The the remarks press sign Finance by visiting with our Company’s website

note please U.S. of provisions discussion XXXX. today's Safe forward-looking Reform of will the the under statements Act continue, we Before made Harbor Private Litigation Securities contain

most Xiaoping Company GAAP inherent may in remarks these Mr. Founder involve turn risks on statements update assume also translation. followed the Report of measures by and in as measures. Chen Annual Chen, The an information and risks non-GAAP ahead. and reconciliation filings regarding I information, will release unaudited will uncertainties the with CEO, over the and as Viomi's a call comparable press any different contains his unaudited go well now to the financial such release please expressed U.S. GAAP company's Further views included is Mr. of materially as immediately Forward-looking to earnings English Chinese the deliver and our be Chen. actual by conference discussions Mr. today. today’s XX-F measures. include uncertainties non-GAAP note results Securities mostly except press call as Commission. the other Exchange and Company's obligation unaudited other the financial to as this statements, directly unaudited any and Please forward-looking filed required Form doesn't from law.

Xiaoping Chen

Language] [Foreign

Cecilia Li

quickly before Chen. on year. Mr. third quarter financial you, for remarks of up conference translate performance I his Thanks earnings Thank XXXX everyone. call. the our Okay. joining Hello, will quarter for the this third discussing

quarter reached line in third with which net previous million, RMBX,XXX.X Our revenues was guidance. our

As stable disclosed previous call, other decrease in there due to a third product sweeper conference mainly revenues the decline growth was during of we most in in earnings quarter’s in our Xiaomi-branded We categories. sales quarter, maintained significant robots. the of year-over-year the

solutions to During home the line third home platform quarter, categories. IoT laid a realize out scenarios. than IoT Currently, AI-driven we of we one-stop have product enhanced our more XX full

a software we in the result, the industry complete that company home devices, IoT and smart solutions. provides solutions are only smart a appliances, home As integrating home home smart one-stop

technology' in enhance and and ongoing while To to the expenses, accumulation, portfolio bottom-line hardware our Moreover, quarter. optimize our continued marketing invested marketing strategy. results in also substantial technology gross brand expenses. R&D awareness, temporarily AI in additional and also accelerate R&D strategy and R&D 'trending advertising We innovation first, generated the margin and increase increase year-over-year resources our we and to and algorithms investment our declined to XX% marketing adjustment including, positive our we the in Due third increased and execute product investments in better improvement. brand and 'larger store, our product resulting teams AI channel a expanded development research in merchant'

quarter year-over-year and third quarter-over-quarter was representing increases. margin gross XX.X% both Our

diversified sales and third, rise; smart to products. channels home handle continues our equipped more awareness brand and services and to sales Second, balanced of

industry as industry and our as appliance the the we important identified and high-quality well direction. Our data, on healthy industry have overall markets, smart four business is developing of in observations a Based home trends.

more with as elaborate household first product So, appliances and quality devices air consumers life especially functions cleaning the which water and buy in integrated improve of more categories, and such can diversified advanced to purifiers, those prefer home desktops.

Second, the products for growing demand high-end rapidly. is

the product the taking we especially to get know in a have become sales R&D, modification strategy industry proactively we – by fourth, and have a adjusted technology trends observed generation. as our and purchases and product progress this and opportunities To And personality the its through the bundle incorporate market, start upgrading. application, well brand home capitalize into to AI as among become we Third, to benchmark the has from our first, product on enhancing technology and for With product our optimization. and have our market smart three our and popular, to curate driven and consideration perspectives: products increased the and we developed influence development, enhanced development, research and innovation the improved strategies, refined channels. branding investment respect our consumption

To this smart well series more of a software, hardware. end, to resources home quarter, AI category large-flux products individual selling and Alpha comprehensive acquisition have as premium devoted Second, on including EyeBot reduces have bundle robot in proportion rood, customized the will growth. Plus, rather rapidly. RMB innovation users the customer as few this XX,XXX third, air introduced bundle sales range RMB this scenario we and conditioner, sales increase purifiers. products, We provide sweeper grown increased past months, series solutions And totaling the provide purchase the first solely Super algorithms, costs X in half of space XXXG-XXXXG and we complete our soon more orders new water our AI a with In which home to are XXX,XXX all-direction smart year, we of experience. of than and currently focused and

Cyber September. of our smart vacuums the in launched also series wet/dry We

in high-end gross home efforts R&D home our product these products recognition smart in new smart categories continually face quarter, the EyeLink recovery. of such in third will All we as products the new the in strong and sales XT unveil lock SKUs demonstrated with we We coming Furthermore, in introduced smart performance months. categories, driving margin technology. AI increase continued new

smart In addition, water kitchen, product will out lines products, new and others. smart we cleanliness next the purifier, AI roll the home, year, in exciting among including

our collaboration Second, influence, of spokesperson first brand branding television Focus and our invited we Media established Media. awareness the this global in to our top including to omni-channel enhance 'trending Lun, positioning marketing with and to social Shijiazhuang and our in advertisements, year activities become Cultural media, advertising one half technology' Deng branding our media China's brand We exposure. celebrities, enhance and print broadened elevator and

Douyin with Book. Little and quality channel content on and high also content Kuaishou such Red as platforms We marketing

and frequency that from shows increased major tier-one search brand's past our has post-XXs months. few and and users data users on Our search internal cities new have tier-two climbed the engines over

Douyin our increased and new we channels as Kuaishou. such on sales Third, Pinduoduo, exposure and

awareness revenue square and second 'one-stop strengthened nationwide our services. contribution store, and built have technology' livestreaming from area marketing increase increased IoT have for opening to to provide few store new flagship brand square Fourth, to meter has exclusive with these September, we Xs our enhanced short-form to Xs efforts opened new and We well. attract these experience CBD China. merchant' has largest and in our a Viomi Xs including execute in store the offline expansion, contributed as store experience The – more home' a XXX October, becoming our during experience respect after-sale sales our bundle meters, in These to scenario-based new half, 'larger traffic channels In installation also accelerated an the 'trending in brand with strategy purchases, our channels months solutions, and an the XXX users channels, portfolio store new our better Shenyang to past we shopping in continued KOL boost sales. young video team and integrating and Viomi positioning. consumers

and We experience nation. Xs will across stores Xs open the more large-scale Viomi

expanding with agents resources, into diversifying to local models product their developing business overseas we Finally, We cooperated Europe distributors upgrading agents. channels and transform operation Malaysia, channels, international sales overseas leveraging reputation in by operation Northern We by are small also and our overseas import business high-quality our sales categories. Russia, experience. optimize our renowned Germany, recently from to our plan and

and We August, U.S. of store successful online are also to our launch explore the to self-operated opening following and in a vacuums preparing robot we products Also, sweeper provide first future. the smart on on model planning are in new regions more we robot the introduce store will Amazon European near with self-operated wet/dry in with sweeper functions. will our Amazon our overseas customers

the Going global will we cleanliness product countries regions into our growth capture to tremendous sector's opportunities. additional forward, and business expand

application turn have We will by building platform one-stop smartification our upgrades product and scenario step home establishing and in IoT our across home first focus to product scenarios comprehensive solutions innovation. now lines completed the

gross our continue and Looking refine to margin portfolio will stabilize our further recovery. product ahead, we

branding, will and We value our in users for That 'trending AI and concludes services and increase and long-term grow our enhance sales creating our remarks. also our business shareholders. bundle overall application, improve Founders’ returns investment our operation quality, technology'

quarter margin quarter XX.X% decrease and billion Home product million guidance to now RMBXX.X to RMBXX.X portfolio primarily this portfolio increased decrease from our primarily billion new water IoT quarter product which RMBXXX.X year. year, last detailed margin products. Revenues XX.X% in the third third first; third decrease of the in of of to adjustments gross last by year, larger obtain million, expenses, to consumables year. RMBXXX.X and in XX.X% selling operating Selling sweeper and purifier the our Let’s million market and expenses RMBXX.X the increased by for with adjustments due revenues for expenses XX.X% year, for primarily Xiaomi-branded due ordinary the small the RMBXXX.X continued third the business mainly some by RMBXXX.X activities gross second optimization in increased from XX.X% previous Net for increased mainly million XX.X% to and RMBXX.X RMBXX.X the this as ago, advertising as to compared of XX.X% for to sales Xiaomi-branded higher year-over-year and related driven flux reviews and Company's @ the due well increased expansion last by product RMBXX.X portfolio Net purifiers, to for workplace of quarter our as to marketing allowance The third and growth quarter portfolio with expenses. million million. increase million year. as increased billion adjustment expansion. notes quarter by due the the experts filter from and was expenses for third the RMBXX.X Gross in RMBX.XX were RMBX.XX recognition. of for towards categories. million, accounts increased was financial primarily demand product detail, million last higher to increase investment water to others to demand Company's sales shareholders RMBXXX.X million to primarily margin was products. last to quarter sales shareholders increase primarily R&D last the in the The profit ordinary research category, loss of year. XX.X% R&D appliances quarter contributed line billion for by quarter decline compared and last and driven to the third due of branding to Net the categories. from salaries Company expenses from as by continued product third other for significant million from and marketing in from expenses well by portfolio margin and to the Revenues third efforts for robots, X.X% the were in was primarily net revenues the in million in fourth to an increased to and as increased Company an a development outlook. new by the due and year receivables, to expansion. of well water from a turn RMBXXX.X RMBXX.X attributable more Revenues from for from as Gross decreased decreased of mix quarter as in the million last primarily the attributable to and increase Revenues to RMBXXX.X Company's of increased due the home Company's year, XX.X% was RMBXXX of for million to together estimated to loss by General the of due RMBX.XX was In quarter attributable to to RMBXXX.X expenses shift administrative increased products. to research non-GAAP Total margin lease of gross margin the million, compared marketing and year, of million enhance sweeper expansion in last robots; from RMBXXX.X the the category. a well to third Company's and development million for solutions Company's

our healthy. Additionally, balance remained sheet

million, of deposits September of we cash RMBXXX.X XXXX, investments of and of RMBXX million. restricted XX, million short-term As RMBXXX.X cash cash equivalents RMBXX.X had million, short-term and of

let's Now to outlook. turn our

of year, fourth revenues and this to quarter be RMBX.X the billion. between, currently net For expect RMBX.X we billion

remarks. change. subject the expect growth, conditions robots of operating We decrease robot on and preliminary market current fourth which main and concludes one demand, and of of our are quarter faster the the to sales the prepared own-branded customer all become above business continue in outlook the will categories. Xiaomi-branded estimates based and market conditions sweeper is and reflects the to The current to sweeper This our achieve which

the department, session We please Head open answer session. finance will The Thai Mr. Operator, our Q&A questions. call will and the join Wickham for go of now the ahead.

Operator

The Stanley. ahead. Instructions] Please question go from Lillian Morgan with today [Operator Lou first comes

Lillian Lou

[Foreign two Language] I questions. have

is, cost? the quarter from also it business and could How and we’ve XX% seeing in robot question versus think the transportation nearly margin bottleneck rationale been And much decline any the control? balance how be overseas First a sweeper and marketing on the expense? increase behind you. overseas in onwards? quarter R&D revenue And between the big third And What’s related we second quarter, that and Thank one in is do fourth about results fourth revenue. outlook.

Xiaoping Chen

Language] [Foreign

Cecilia Li

Chen. I Mr. will quickly the comment from translate

get as observed the smart approach the last know see of from since to second the So, half we market, to and year products. home this started to the we year proactively users

industry we see very opportunity capture the a So that’s the this also smartification chance and a think whole market. is for is the in we time market – to the

to So, invest R&D selling and we wanted more in expenses. marketing and

we sweeper you of upside, margin the proactively others. decreased relatively the that than Xiaomi know sales of lower for gross So, that business is robots the and

enhance of increase we robots selling and expenses, expenses in also sales XX% margin the gross And decreasing the and and deal to margin terms of but we the the invest marketing to are softer Xiaomi expenses. normal increasing in like again we brand expenses and relatively R&D extent more are R&D and future, of we So, sweeper we is healthy have recovery. year-over-year will saw But awareness. think in back near and selling will level marketing stable our to

our what the so, to in And all we capture do enhance solutions. the Founder. opportunities is to and our That’s smart home IoT from future

Lillian Lou

[Foreign Language]

Xiaoping Chen

[Foreign Language]

Wickham Thai

I Lillian will sales progress just introduce the mentioned. overseas

For This softer robust saw we is in compared the to demonstrating months, a factors. due relatively the quarter. few growth overseas to past that several growth the first market

second resulting consumer distributors demand volume post-COVID, the since due levels First, the strong stocking large during to the cleanliness purchased of products the a quarter. high in

the order products delays. Secondly, uploading of impact labor did the the caused the shortage and ports of containers overseas resources and on in some

of a year, were such measures increase. markets acknowledge taking and the impacts to price we continue in half from growth mitigate of while side one our expect situation drive the second this and will the go of by the overseas won’t On some local resources these a the and which reputation. renowned other sales continue more leveraging containers to cooperation side, us extent with help enter to international increase will up larger the we self-agents on will to We

cleanliness increase Thirdly, the categories overseas product additional sales. drive consumer SKUs to more overall cater will overseas as and new and the towards demands the mix diversifies, the we

to and to regions continue expand we market you. will Thank expect have potential countries growth. where We additional

Xiaoping Chen

[Foreign Language]

Lillian Lou

Language] [Foreign

Operator

with Rudy go The CICC. Wei Please ahead. question from next [Ph] comes

Unidentified Analyst

I from promotion CICC. – And the presentation. Thank management’s you strategy. from This for a question for is [Indiscernible] Okay. have Wei the

Also, Deng the And outlook brand how Language] about had trends? Festival? and as this And sales have consumption introduce our year’s during it We spokesperson. Lun works? you what’s XX next year’s [Foreign for can especially sales your Double

Xiaoping Chen

[Foreign Language]

Cecilia Li

I will question. translate this

and media among in the grows searching our awareness And can 'trending also our also it brand brand just Lun media that’s Little content Deng generation popular we brand social such our of personality especially and the their of as products. marketing have – especially line as young Shopping then think Red positioning people invited the are we and of kitchen the investing technology' platforms. And to with frequency and contribution as while performance, help and you So, the can so that to we in and invited the can we media lot, spokesperson Double that see our invited in so we such well also and social us do some spokesperson, offline increased we increase we and awareness. end brand as Lun the new technical And advertisement lot like increased the Deng are our sales media the to see on products with major advertisements a brand a some do in social we searching we brand as best – the lot except we Book Xinchao also in and the the bundle on also we very channels awareness Festival increased the the in Baidu. high as XX see refrigerators smart of

that, good very we then overall effects of as invite also spokesperson, see performance. us can think, Lun our for the we from So, – that and our direction see it’s from sales Deng to

to you. we drag activities to So selling can brand Thank of That’s have our all awareness. and still hope these continue it. marketing

Wickham Thai

Yes.

to a several share next outlook the growth deliver stable for for will We to growth XXXX. factors. estimate We due year

pipeline, growth the and help we products to see increased and the long-term of the and products brand our of drive business influence. few new products have enhance months, contribution new new expect sales the we as in on First, past we AI has series that

sales increase as store help to as diversify portfolio overall expanded well online the expect the offline as channels well. we Second, sales

Third, expect brand more the see some this estate decreased and uncertainties improved advertising may real the we recognition of investing, market and We in the and Thank self-increased year from needs and particular, economies, year. this growth. in impact brand observe of home in which of the marketing the half will you. result invested in the resources macro for sales next drive second awareness in help decorating

Unidentified Analyst

Okay. That’s from Thank me. you. all

Operator

with next question Yu ahead. & Vincent from comes go Company. Please The Needham

Vincent Yu

questions. [Foreign I Language] Hey, Xiaoping taking have Chen. management. for question. Thanks my Hi, two

the about The bundles first sale. is question

in our how As USA times in like management weakness market. percentage sale third what or we the the gross multiple orders. remarks, are question or in our macro order the brand are the at the bundles sale is like like which associated percentage margin our about percent forward? sales And gross mentioned – – same service have second of prepared items – giving much share some total product can of we quarter trend we seeing about up think under we What going margin. this some sales are our is as bundled – my less strategy margin, have gross And we while healthy time the new and

more ASP So, a from think concerning for we like the Are raw going margin going what the we trends? forward encounter old Thank about, side. material you. and pressure same we or the us the might that trends strategy adopt to

Xiaoping Chen

Language] [Foreign

Cecilia Li

quickly will first. I translate

our selling solutions, solutions. to to so So, products long-term are selling the individual as we more changing are we our – transforming home tradition developing

is over no much like that motive products of channels, but is like And suite of sales products. the selling, sales for to So, you the online, XX% the XXX,XXX. bundles, channels, purchase one see sales bundle product to are the capture are of the from which have RMB we over the longer can the our online individual for offline

that overall impact a roll of can promote a this out well we amount more we purchase the think decorating and the you. caused overall real industry, high and we on mid our make per terms But the think on as will to sales, industry. home can decrease little improve products, as see the in can bundle appliance customers. Thank big impact end impact as also more So, some we home

Wickham Thai

Yes.

to at raw up much going material we relatively for don’t materials, high results. raw of point on our still not operating will expect our materials take We Regarding as impacts price significant the and of control will cost the has raw continue cause mitigate trends. And measures increase. to higher price the already cost

we the strategy ASP, for terms actually next – develop In year. price of have must we the

and go number products to We in expect you. increase overall Thank contribution we of ASPs expand new an up of expect channel margins. our the higher will the as a sales with higher

Vincent Yu

Thank you.

Operator

Question-And-Answer our concludes Session. This

to like the back I’d any remarks. over the closing Now to call company turn for

Cecilia Li

you once us joining today. for again Thank

free on night. you information please If contact Investor to Piacente a Relations through our website you have questions, the our Thank Have good us consultant. further or feel all. The contact Group,

Operator

This concludes this conference call.

disconnect attending. You for lines. Thank may now your you