Viomi Stock Dips Despite Double Revenue Growth
The stock of Viomi Technology Co. Ltd. (Nasdaq: VIOT) ended the day 6 percent lower, at $7.93 per American depositary share, after posting lower-than-expected revenue for the first quarter.
The Guangzhou-based company, which makes IoT at home technology products, said in a statement today that its revenue in the three months through March has doubled year-over-year to $100.8 million. The number of household users of Viomi smart products has also doubled from a year ago to 2 million, according to the report.
The growth, however significant, failed to impress Wall Street investors, as shares in the company slid 55 cents lower on the day.
Net income, Viomi said, was $6.2 million, or 8 cents per ADS, up 41 percent from a year ago.
"We launched multiple new and exciting product lines over the past several months. For example, new series of Viomi-branded smart refrigerators, washing machines, water heaters and range hoods, as well as additional value-added products such as sweeper robots, food processors and rice cookers, amongst many others," the founder, chairman, and chief executive officer of Viomi, Xiaoping Chen, said in the statement.
The company also said it has opened 100 additional stores during the first quarter, reaching 1,600 locations by March 31.
Looking ahead, Chen stated: "Our priorities remain focused on delivering robust top-line growth, driven by the development and launch of new and innovative products, both Xiaomi-branded and Viomi-branded, the further expansion of our sales channels, as well as the continued enhancement of our brand recognition. In addition, growing our household user base and educating consumers on the capabilities and benefits of our IoT @ Home platform and IoT-enabled smart products will continue to be central to our long-term growth strategy."
In the second quarter, Viomi said it expects to generate revenue in the range of 1.15 billion yuan to 1.2 billion yuan, representing a year-over-year increase of between 62 and 69 percent.
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