- Total Revenue: $89 million in Q4 2024, up 81% year-over-year.
- Full-Year Revenue: Approximately $270 million, up 27.4% year-over-year.
- Mining Revenue: $15.3 million in Q4 2024, up 313% year-over-year.
- Bitcoin Mined: 186 Bitcoins in Q4 2024, up 84% year-over-year.
- Computing Power Sold: 9.1 million terahashes per second in Q4 2024, up 66% year-over-year.
- Gross Margin: Mining gross margin increased to 42% in Q4 2024.
- Adjusted EBITDA: $19.3 million gain in Q4 2024.
- Cash Flow from Operations: Positive $17 million in Q4 2024.
- Cash Balance: $96 million at the end of Q4 2024.
- Bitcoin Holdings: 1,293 Bitcoins at the end of 2024, valued at approximately $123 million.
- Inventory Write-Down: $13.6 million in Q4 2024, decreased 76% year-over-year.
- Operating Expenses: $49.3 million in Q4 2024, increased $10.1 million year-over-year.
- Revenue Guidance Q1 2025: Approximately $75 million.
- Revenue Guidance Q2 2025: $120 million to $150 million.
- Full-Year 2025 Revenue Guidance: $900 million to $1.1 billion.
- Warning! GuruFocus has detected 5 Warning Signs with CAN.
Release Date: March 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Canaan Inc (NASDAQ:CAN) achieved approximately $89 million in total revenues for Q4, surpassing their guidance of $80 million.
- The company reported a 27.4% year-over-year increase in full-year revenue, reaching nearly $270 million.
- Canaan Inc (NASDAQ:CAN) successfully launched and delivered the high-performance A15 series, contributing significantly to revenue growth.
- The company's mining operations saw a substantial increase, with mining revenue reaching $15.3 million, up 313% year-over-year.
- Canaan Inc (NASDAQ:CAN) expanded its presence in North America, with the region accounting for approximately 40% of mining machine sales.
Negative Points
- The company faced a gross loss of $6.4 million in Q4, despite narrowing it by 70.5% quarter-over-quarter.
- Canaan Inc (NASDAQ:CAN) recorded a non-cash income tax expense of $85 million due to a valuation allowance against deferred tax assets.
- The company expressed caution regarding the uncertain economic environment and Bitcoin price volatility, impacting future revenue expectations.
- Operating expenses increased by $10.1 million year-over-year, driven by global business expansion and risk mitigation activities.
- Canaan Inc (NASDAQ:CAN) faced challenges in managing supply chain constraints due to new US regulations affecting the semiconductor supply chain.
Q & A Highlights
Q: Can you give us an update on site acquisition activity and how you're approaching procuring power infrastructure in the current environment? A: Nangeng Zhang, CEO: We are actively looking for sites in energy-rich regions across North America. Our flexible cooperation model includes fixed-rate hosting, joint mining with profit sharing, or acquiring and building our own sites. We have secured enough site resources to support our current deployment plan of 10 exa hash in the first half of the year. Recent US policy changes may make new power generation capacity available, benefiting us further.
Q: Can you provide insights into the demand outlook for the second half of the year, given your 2Q guidance improvement? A: Nangeng Zhang, CEO: Our Q4 sales performance was strong, with 9.1 million terahashes of computing power sold. We expect larger numbers in Q2 and Q3 as new inventory builds. The second half's key factor will be Bitcoin price and the economic environment. If Bitcoin reaches around $100,000, it would significantly help achieve our annual target. James Cheng, CFO, added that demand remains strong, and they are confident in meeting the full-year target.
Q: What are your ASIC orders with your foundry partner, and how do they align with customer orders? A: Nangeng Zhang, CEO: We typically produce based on sales orders to control inventory risks. We are gradually increasing production but not at maximum capacity. We consider factors like cost, supply chain tightness, and market competition. While we don't disclose exact numbers, current production should meet both sales and mining operations. If demand increases, we can place additional orders.
Q: Can you discuss the architectural changes in the A16 ASIC that contribute to its performance improvement? A: James Cheng, CFO: The A16 uses cutting-edge technology and smaller transistor sizes, but it's not just a straightforward upgrade. Each generation of our products achieves significant performance improvements through numerous technical advancements. We focus on design technology co-optimization to enhance performance further. The improvements result from many small technical enhancements collectively leading to significant gains.
Q: How has customer service evolved in the US, and what are you doing better now to win customers? A: James Cheng, CFO: Bitcoin mining has become more global, requiring closer maintenance and support services. We offer a one-year warranty and have 26 service stations worldwide to shorten delivery cycles and improve service efficiency. Our products show strong operational stability, especially in high-temperature environments. We aim to outperform competitors by maintaining low failure rates and ensuring cohesive operations between our North American and Singapore teams.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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