Viomi Technology Stock Falls On Q2 Revenue Miss

Chinese IoT @ Home technology company Viomi Technology Co Ltd VIOT reported a second-quarter FY21 revenue decline of 1.5% year-on-year to $256.9 million (RMB1.66 billion), missing the analyst consensus of $294.8 million.
Segments: Revenues from IoT @ Home portfolio increased by 7.9% Y/Y to $177.5 million driven by Viomi-branded sweeper robots and washing machines.
Revenues from home water solutions decreased by 18.0% Y/Y to $33.9 million from a decrease in sales of Xiaomi Corp XIACY-branded water purifiers.
Revenues from consumables increased by 18.2% to $15.8 million from higher demand for its water purifier filter products.
Revenues from small appliances and others declined by 28.8% Y/Y to $29.7 million.
Drivers: The number of cumulative household users rose 40.5% Y/Y to 5.9 million.
Percentage of household users with at least two connected products expanded 170 bps to 20.7%.
Margin: The gross margin expanded 690 bps to 21.2%.
Non-GAAP net income per ADS of $0.12 was in line with the consensus.
Viomi held $103.4 million in cash and equivalents.
Outlook: Viomi sees Q3 revenue of $154.9 million - $170.4 million (RMB1.0 billion - RMB1.1 billion). Viomi expects Xiaomi-branded sweeper robots' sales to decrease and the own-branded sweeper robot business to achieve faster growth.
Price Action: VIOT shares traded lower by 10.5% at $5.05 on the last check Wednesday.