HTC (2498) Q3 2024 earnings summary

Executive summary

• 3Q24 revenue was NT$0.77 billion with a gross margin of 40.8%.

• Net loss for 3Q24 was NT$0.88 billion, EPS of NT$1.06 loss.

• Operating revenue for the nine months ended September 30, 2024 was NT$2,135 million, down 34% year-over-year.

• Operating loss for the nine months was NT$3,520 million, up from NT$3,205 million year-over-year.

• Launched VIVE Focus Vision XR headset and VIVERSE Create platform, targeting enterprise and high-end gaming.

Financial highlights

• Quarterly revenue declined to NT$0.77 billion from NT$1.1 billion year-over-year.

• Gross margin for the nine months was 41%, unchanged year-over-year.

• Net loss for the quarter was NT$0.88 billion, compared to NT$0.91 billion loss a year ago.

• Basic loss per share for the nine months was NT$3.12, compared to NT$3.01 in the prior year.

• Net cash used in operating activities for nine months: NT$2.17 billion.

Outlook and guidance

• SBTi approved net-zero emissions targets, aiming for net-zero across the value chain by 2050.

• Continued focus on expanding XR, Metaverse, and virtual content platforms for enterprise and entertainment markets.

• Management is monitoring the impact of new IFRS standards effective in 2025 and 2027.