Canaan Inc. (CAN) Reports Strong Q2 2024 Financial Results

Canaan
Inc.
(NASDAQ:
CAN),
a
leading
high-performance
computing
solutions
provider,
has
announced
its
unaudited
financial
results
for
the
second
quarter
of
2024,
according
to

PRNewswire.
The
company
reported
a
substantial
improvement
in
its
financial
performance,
with
revenues
surpassing
guidance
and
significant
narrowing
of
operational
losses.

Financial
Highlights

In
Q2
2024,
Canaan
Inc.
achieved
revenues
of
$71.9
million,
exceeding
the
previous
guidance
of
$70
million
and
marking
a
104.8%
increase
sequentially.
The
total
computing
power
sold
was
6.2
million
Thash/s,
reflecting
an
83.9%
growth
from
the
previous
quarter.

The
company
recorded
a
loss
from
operations
of
$46.6
million,
a
significant
improvement
from
the
$119.1
million
loss
in
the
same
period
last
year,
and
a
31.5%
reduction
compared
to
Q1
2024.
James
Jin
Cheng,
Canaan’s
CFO,
attributed
the
topline
growth
to
the
concentrated
delivery
of
A14
products,
which
boosted
the
average
selling
price
of
computing
power
and
improved
gross
margins.

Market
Performance
and
Product
Development

CEO
Nangeng
Zhang
highlighted
the
company’s
resilience
during
the
Bitcoin
halving
quarter,
navigating
market
fluctuations
and
achieving
a
topline
performance
of
$71.9
million.
The
bulk
delivery
of
A14
products
and
traditional
models
led
to
a
total
computing
power
sold
of
6.2
million
Thash/s.
Additionally,
Canaan
saw
significant
sales
growth
in
North
American
and
Middle
Eastern
markets,
showcasing
its
expanding
global
presence.

The
launch
of
the
new
A1566
product
has
garnered
active
customer
orders,
contributing
to
a
30.2%
increase
in
customer
advances.
The
company
also
reported
$9.3
million
in
mining
revenue,
emphasizing
its
strategic
response
to
local
regulatory
changes.

Operational
Efficiency
and
Future
Outlook

Canaan’s
operational
efficiency
improved,
with
G&A
expenses
decreasing
by
27.0%
sequentially.
This
contributed
to
a
44.0%
year-over-year
and
10.6%
sequential
reduction
in
total
expenses.
The
company’s
balance
sheet
liquidity
was
bolstered
by
cash
inflows
from
product
sales,
with
a
focus
on
maintaining
profitability
and
strengthening
the
balance
sheet.

Looking
ahead,
Canaan
forecasts
total
revenues
of
approximately
$73
million
for
Q3
2024,
reflecting
a
positive
market
outlook
and
operational
conditions.
The
company
remains
committed
to
investing
in
R&D
and
production
capacity
to
capitalize
on
the
opportunities
presented
by
the
evolving
Bitcoin
market.

For
more
details
on
Canaan
Inc.’s
Q2
2024
financial
results,
please
refer
to
the
official
press
release
on

PRNewswire.

Image
source:
Shutterstock