Canaan Stock Gains On Strong Q2 Performance, Robust Q3 Outlook

Computing solutions provider Canaan Inc CAN reported second-quarter FY21 revenue growth of 507.3% year-on-year to $167.5 million.
A substantial increase in total computing power sold drove the numbers. Total computing power sold increased 126.9% Y/Y to 5.9 million Thash/s. The rise in the number of Bitcoin mining machines delivered due to solid market demand drove the Y/Y growth.
Products revenue grew 562.5% Y/Y to $167.2 million.
The gross margin expanded by 1,519 bps to 39.5%. Net earnings per ADS was $0.22.
Canaan held $189.0 million in cash and equivalents.
Director Jiaxuan Li stepped down from the board for personal reasons, effective September 15.
Outlook: Canaan sees sequential revenue growth of 10% - 30% for Q3.
Price Action: CAN shares traded higher by 5.34% at $9.67 in the premarket session on the last check Wednesday.

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