Canaan stock surges on strong topline results

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Canaan (NASDAQ:CAN) shares have popped ~17% pre-market after the computer hardware firm reported a strong Q4 performance earlier today.

Total net revenues were RMB2,184.6M ($342.8M), compared to RMB38.2M in the same period of 2020, and RMB1,317.6M in Q321, representing a 65.8% sequential growth.

The growths were mainly driven by continuous increase in total computing power sold and average selling price per Thash/s.

Total computing power sold was 7.7M Thash/s, compared to 0.2M Thash/s in the prior year quarter, and up 15.5% from 6.7M Thash/s in Q321, setting a new record.

The firm generated adj. net income of RMB1,250.7M ($196.3M), compared to a RMB73.1M loss in the same period of 2020.

It ended the year with cash and cash equivalents of RMB2,684.3M ($421.2M), up 586 Y/Y.

CFO James Jin Cheng noted, "The higher-than-expected topline result was powered by our business development efforts, which drove the growth of our customer base, enabling us to achieve a larger proportion of spot sales with a higher averaging selling price per Thash/s. As of the end of 2021, we had garnered contract advances of RMB1,340.7M, ensuring stable revenue streams for the quarters to come and delivering further cash flows to expand our supply capabilities."

Guidance: The company expects its total net revenues for Q122 to be in the range of RMB1,500M to RMB1,600M, representing a 275%-300% Y/Y growth.