Why did ICG's Q3 2024 earnings fall short of expectations?

Intchains Group (ICG) experienced a net income of $449,726.4 for Q3 2024, with an EPS surprise of -0.05. The company's financial performance fell short of expectations due to several key factors:

|code|Ticker|Name|Date|Revenue Surprise|Net Income|market_code|
|---|---|---|---|---|---|---|
|ICG|ICG.O|Intchains Group|2023 Q4||1137762.4699|186|
|ICG|ICG.O|Intchains Group|2024 Q1||-2049083.828|186|
|ICG|ICG.O|Intchains Group|2024 Q2||6929078.6259|186|
|ICG|ICG.O|Intchains Group|2024 Q3|-5990111|449726.40216|186|

1. **Revenue Decline in ASIC Chip Sales**: The sales volume of ASIC chips decreased by 26.2% from the previous year's 371,423 units to 274,019 units. This decline in sales volume directly impacted revenue, as the company reported a revenue increase of only 785.1% year-over-year, reaching RMB123.0 million (US$16.9 million) for the second quarter.
2. **Negative Net Margin and Return on Equity**: Intchains Group reported a negative net margin of 56.73% and a negative return on equity of 4.84%. These negative metrics indicate inefficiencies and lack of profitability in the company's operations, contributing to the overall disappointing earnings.
3. **Cryptocurrency Market Volatility**: As a corporate holder of cryptocurrencies based on Ethereum (ETH), the company's financial results are likely influenced by the volatility of the cryptocurrency market. The value of cryptocurrency assets can fluctuate significantly, affecting the company's financial performance.

In conclusion, Intchains Group's Q3 2024 earnings fell short of expectations due to a decline in ASIC chip sales, negative operational efficiencies, and the impact of cryptocurrency market volatility. These factors combined to result in a net income that was lower than anticipated.