Tuya Reports Third Quarter 2024 Unaudited Financial Results
Rhea-AI Summary
Tuya reported strong Q3 2024 financial results with total revenue increasing 33.6% year-over-year to US$81.6 million. IoT PaaS revenue grew 26.4% to US$57.9 million, while Smart solution revenue surged 102.9% to US$13.8 million. The company achieved a non-GAAP operating margin of 9.1% and non-GAAP net margin of 24.7%. Operating cash flow improved to US$23.9 million, with total cash and equivalents reaching US$1,023.9 million. The company's IoT platform showed strong growth with 1.26 million registered developers and a dollar-based net expansion rate of 124%.
Positive
- Revenue growth of 33.6% YoY to $81.6 million
- Smart solution revenue increased 102.9% YoY
- Non-GAAP net profit up 99.5% to $20.1 million
- Operating cash flow improved to $23.9 million
- Dollar-based net expansion rate increased to 124% from 78%
- IoT PaaS gross margin improved to 46.9%
Negative
- Operating loss of $17.1 million
- Net loss of $4.4 million
- Overall gross margin declined to 46.0% from 46.7%
- Smart solution gross margin decreased to 23.5% from 26.9%
News Market Reaction
On the day this news was published, TUYA declined 8.09%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Third Quarter 2024 Financial Highlights
- Total revenue was
US , up approximately$81.6 million 33.6% year over year (3Q2023:US ).$61.1 million - IoT platform-as-a-service ("PaaS") revenue was
US , up approximately$57.9 million 26.4% year over year (3Q2023:US ).$45.8 million - Software-as-a-service ("SaaS") and others revenue was
US , up approximately$9.9 million 16.7% year over year (3Q2023:US ).$8.5 million - Smart solution revenue was
US , up approximately$13.8 million 102.9% year over year (3Q2023:US ).$6.8 million - Overall gross margin was
46.0% , down 0.7 percentage points year over year (3Q2023:46.7% ). Gross margin of IoT PaaS increased to46.9% , up 2.3 percentage points year over year (3Q2023:44.6% ). - Operating margin was negative
21.0% , improved by 9.3 percentage points year over year (3Q2023: negative30.3% ). Non-GAAP operating margin was9.1% , improved by 14.8 percentage points year over year (3Q2023: negative5.7% ). - Net margin was negative
5.4% , improved by 2.6 percentage points year over year (3Q2023: negative8.0% ). Non-GAAP net margin was24.7% , improved by 8.2 percentage points year over year (3Q2023:16.5% ). - Net cash generated from operating activities was
US (3Q2023:$23.9 million US ).$16.1 million - Total cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were
US as of September 30, 2024, compared to$1,023.9 million US as of December 31, 2023.$984.3 million
For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."
Third Quarter 2024 Operating Highlights
- IoT PaaS customers[1] for the third quarter of 2024 were approximately 2,200 (3Q2023: approximately 2,100). Total customers for the third quarter of 2024 were approximately 3,100 (3Q2023: approximately 3,000).
- Premium IoT PaaS customers[2] for the trailing 12 months ended September 30, 2024 were 286 (3Q2023: 263). In the third quarter of 2024, the Company's premium IoT PaaS customers contributed approximately
85.6% of its IoT PaaS revenue (3Q2023: approximately83.5% ). - Dollar-based net expansion rate ("DBNER")[3] of IoT PaaS for the trailing 12 months ended September 30, 2024 was
124% (3Q2023:78% ). - Registered IoT device and software developers were over 1,260,000 as of September 30, 2024, up
26.9% from approximately 993,000 developers as of December 31, 2023.
1. The Company defines an IoT PaaS customer for a given period as a customer who has directly placed orders for IoT PaaS with the Company during that period.
2. The Company defines a premium IoT PaaS customer as a customer as of a given date that contributed more than
3. The Company calculates DBNER of IoT PaaS for a trailing 12-month period by first identifying all customers in the prior 12-month period (i.e., those have placed at least one order for IoT PaaS during that period), and then calculating the quotient from dividing the IoT PaaS revenue generated from such customers in the current trailing 12-month period by the IoT PaaS revenue generated from the same group of customers in the prior 12-month period. The Company's DBNER may change from period to period, due to a combination of various factors, including changes in the customers' purchase cycles and amounts and the Company's customer mix, among other things. DBNER indicates the Company's ability to expand customer use of the Tuya platform over time and generate revenue growth from existing customers.
Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, "I'm pleased that in the third quarter, we delivered robust financial performance across all our business segments, featuring high growth, stable margins and tight operating budget control. These solid results reaffirm our position as a growing and profitable smart cloud platform leader with a clear strategy and strong execution capabilities. Our performance was driven by robust demand from existing customers, as reflected in a Dollar-Based Net Expansion Rate of
Mr. Yi (Alex) Yang, Co-Founder and Chief Financial Officer of Tuya, added, "Third quarter financial results were solid, highlighted by an approximately
Third Quarter 2024 Unaudited Financial Results
REVENUE
Total revenue in the third quarter of 2024 increased by
- IoT PaaS revenue in the third quarter of 2024 increased by
26.4% toUS from$57.9 million US in the same period of 2023, primarily due to increasing demand fueled by global economic recovery compared with the same period of 2023 and the Company's strategic focus on customer needs and product enhancements. As a result, the Company's DBNER of IoT PaaS for the trailing 12 months ended September 30, 2024 increased to$45.8 million 124% from78% for the trailing 12 months ended September 30, 2023. - SaaS and others revenue in the third quarter of 2024 increased by
16.7% toUS from$9.9 million US in the same period of 2023, primarily due to an increase in revenue from cloud software products. During the quarter, the Company remained committed to offering value-added services and a diverse range of software products with compelling value propositions to its customers.$8.5 million - Smart solution revenue in the third quarter of 2024 increased by
102.9% toUS from$13.8 million US in the same period of 2023, primarily due to the increasing customer demand for the Company's differentiated smart device solutions.$6.8 million
COST OF REVENUE
Cost of revenue in the third quarter of 2024 increased by
GROSS PROFIT AND GROSS MARGIN
Total gross profit in the third quarter of 2024 increased by
- IoT PaaS gross margin in the third quarter of 2024 was
46.9% , compared to44.6% in the same period of 2023, primarily due to increased product value. - SaaS and others gross margin in the third quarter of 2024 was
71.6% , remained relatively stable compared to73.9% in the same period of 2023. - Smart solution gross margin in the third quarter of 2024 was
23.5% , compared to26.9% in the same period of 2023, primarily due to the changes in product solution mix provided to customers during the quarter.
OPERATING EXPENSES
Operating expenses were
- Research and development expenses in the third quarter of 2024 were
US , compared to$24.9 million US in the same period of 2023, primarily due to a one-time increase in share-based compensation expenses, partially offset by the decrease in employee-related costs. During this quarter, average salaried employee headcount of the Company's research and development team was down approximately$24.9 million 6.2% year over year, but remained relatively stable compared to the previous quarter. Non-GAAP adjusted research and development expenses in the third quarter of 2024 wereUS , compared to$19.9 million US in the same period of 2023.$21.8 million - Sales and marketing expenses in the third quarter of 2024 were
US , compared to$9.7 million US in the same period of 2023, primarily due to a one-time increase in share-based compensation expenses, partially offset by the decrease in employee-related costs. Non-GAAP adjusted sales and marketing expenses in the third quarter of 2024 were$9.4 million US , compared to$8.0 million US in the same period of 2023.$8.7 million - General and administrative expenses in the third quarter of 2024 were
US , compared to$22.3 million US in the same period of 2023, primarily due to a one-time increase in share-based compensation expenses, partially offset by the decrease in employee-related costs. Non-GAAP adjusted general and administrative expenses in the third quarter of 2024 were$15.8 million US , compared to$4.4 million US in the same period of 2023.$4.8 million - Other operating income, net in the third quarter of 2024 was
US , primarily due to the receipt of software value-added tax refunds and various general subsidies for enterprises.$2.2 million
LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGIN
Loss from operations in the third quarter of 2024 narrowed by
Operating margin in the third quarter of 2024 was negative
NET LOSS/PROFIT AND NET MARGIN
The Company had a net loss of
The difference between loss from operations and net loss in the third quarter of 2024 was primarily because of a
The Company had a non-GAAP net profit of
Net margin in the third quarter of 2024 was negative
BASIC AND DILUTED NET LOSS/PROFIT PER ADS
Basic and diluted net loss per ADS was
Non-GAAP basic and diluted net profit per ADS was
CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTS
Cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were
NET CASH GENERATED FROM OPERATING ACTIVITIES
Net cash generated from operating activities in the third quarter of 2024 was
For further information on non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."
Business Outlook
With the stabilizing macroeconomic environment and normalizing downstream inventory levels, the industry is currently on a positive trajectory. With the effective implementation of the Company's customer and product strategies, along with the utilization and innovation of emerging technologies like AI, the Company is confident in its business prospects.
The Company will remain committed to continuously iterating and improving its products and services, further enhancing software and hardware capabilities, expanding key customer base, investing in innovations and new opportunities, diversifying revenue streams, and further optimizing operating efficiency. At the same time, the Company understands that future trajectories may encounter challenges, including shifting consumer spending patterns, regional economic disparities, inventory management, foreign exchange rate and interests rate volatility, and broader geopolitical uncertainties.
Conference Call Information
The Company's management will hold a conference call at 07:30 P.M. Eastern Time on Monday, November 18, 2024 (08:30 A.M. Beijing Time on Tuesday, November 19, 2024) to discuss the financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this conference including a conference access code, a PIN number (personal access code), the dial-in number, and an e-mail with detailed instructions to join the conference call.
Online registration: https://register.vevent.com/register/BI10b2a0be2587453aa3081615bdeaf624
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.tuya.com, and a replay of the webcast will be available following the session.
About Tuya Inc.
Tuya Inc. (NYSE: TUYA; HKEX: 2391) is a global leading cloud platform service provider with a mission to build a smart solutions developer ecosystem and enable everything to be smart. Tuya has pioneered a purpose-built cloud developer platform with cloud and generative AI capabilities that delivers a full suite of offerings, including Platform-as-a-Service, or PaaS, Software-as-a-Service, or SaaS, and smart solutions for developers of smart device, commercial applications, and industries. Through its cloud developer platform, Tuya has activated a vibrant global developer community of brands, OEMs, AI agents, system integrators and independent software vendors to collectively strive for smart solutions ecosystem embodying the principles of green and low-carbon, security, high efficiency, agility, and openness.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP financial measures, such as non-GAAP operating expenses, non-GAAP (loss)/profit from operations (including non-GAAP operating margin), non-GAAP net profit (including non-GAAP net margin), and non-GAAP basic and diluted net profit per ADS, as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in
Non-GAAP financial measures are not defined under
Reconciliations of Tuya's non-GAAP financial measures to the most comparable
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Investor Relations Contact
Tuya Inc.
Investor Relations
Email: ir@tuya.com
The Blueshirt Group
Gary Dvorchak, CFA
Phone: +1 (323) 240-5796
Email: gary@blueshirtgroup.co
TUYA INC. | ||||||||||||||
As of December 31, | As of September 30, | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | 498,688 | 610,901 | ||||||||||||
Restricted cash | – | 154 | ||||||||||||
Short-term investments | 291,023 | 201,114 | ||||||||||||
Accounts receivable, net | 9,214 | 7,628 | ||||||||||||
Notes receivable, net | 4,955 | 10,036 | ||||||||||||
Inventories, net | 32,865 | 28,303 | ||||||||||||
Prepayments and other current assets, net | 11,053 | 17,265 | ||||||||||||
Total current assets | 847,798 | 875,401 | ||||||||||||
Non-current assets: | ||||||||||||||
Property, equipment and software, net | 2,589 | 2,959 | ||||||||||||
Operating lease right-of-use assets, net | 7,647 | 4,866 | ||||||||||||
Long-term investments | 207,489 | 222,830 | ||||||||||||
Other non-current assets, net | 877 | 9,647 | ||||||||||||
Total non-current assets | 218,602 | 240,302 | ||||||||||||
Total assets | 1,066,400 | 1,115,703 | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | 11,577 | 18,040 | ||||||||||||
Advances from customers | 31,776 | 29,906 | ||||||||||||
Deferred revenue, current | 6,802 | 7,303 | ||||||||||||
Accruals and other current liabilities | 32,807 | 63,606 | ||||||||||||
Incomes tax payables | 689 | – | ||||||||||||
Lease liabilities, current | 3,883 | 3,718 | ||||||||||||
Total current liabilities | 87,534 | 122,573 | ||||||||||||
Non-current liabilities: | ||||||||||||||
Lease liabilities, non-current | 3,904 | 1,251 | ||||||||||||
Deferred revenue, non-current | 506 | 596 | ||||||||||||
Other non-current liabilities | 3,891 | 1,534 | ||||||||||||
Total non-current liabilities | 8,301 | 3,381 | ||||||||||||
Total liabilities | 95,835 | 125,954 | ||||||||||||
TUYA INC. | ||||||||||||||
As of December 31, | As of September 30, | |||||||||||||
Shareholders' equity: | ||||||||||||||
Class A ordinary shares | 25 | 25 | ||||||||||||
Class B ordinary shares | 4 | 4 | ||||||||||||
Treasury stock | (53,630) | (29,386) | ||||||||||||
Additional paid-in capital | 1,616,105 | 1,614,161 | ||||||||||||
Accumulated other comprehensive loss | (17,091) | (15,419) | ||||||||||||
Accumulated deficit | (574,848) | (579,636) | ||||||||||||
Total shareholders' equity | 970,565 | 989,749 | ||||||||||||
Total liabilities and shareholders' equity | 1,066,400 | 1,115,703 | ||||||||||||
TUYA INC. | ||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
Revenue | 61,090 | 81,617 | 165,579 | 216,558 | ||||||||||
Cost of revenue | (32,567) | (44,102) | (89,387) | (114,366) | ||||||||||
Gross profit | 28,523 | 37,515 | 76,192 | 102,192 | ||||||||||
Operating expenses: | ||||||||||||||
Research and development expenses | (24,946) | (24,877) | (79,471) | (71,344) | ||||||||||
Sales and marketing expenses | (9,418) | (9,663) | (29,503) | (28,033) | ||||||||||
General and administrative expenses | (15,843) | (22,301) | (56,909) | (54,636) | ||||||||||
Other operating incomes, net | 3,197 | 2,213 | 7,491 | 7,997 | ||||||||||
Total operating expenses | (47,010) | (54,628) | (158,392) | (146,016) | ||||||||||
Loss from operations | (18,487) | (17,113) | (82,200) | (43,824) | ||||||||||
Other income | ||||||||||||||
Other non-operating incomes, net | 779 | 766 | 2,335 | 3,413 | ||||||||||
Financial income, net | 13,066 | 12,985 | 31,841 | 38,244 | ||||||||||
Foreign exchange (loss)/gain, net | (251) | (638) | 652 | (1,000) | ||||||||||
Loss before income tax expense | (4,893) | (4,000) | (47,372) | (3,167) | ||||||||||
Income tax expense | (12) | (373) | (2,127) | (1,621) | ||||||||||
Net loss | (4,905) | (4,373) | (49,499) | (4,788) | ||||||||||
Net loss attributable to Tuya Inc. | (4,905) | (4,373) | (49,499) | (4,788) | ||||||||||
Net loss attribute to ordinary shareholders | (4,905) | (4,373) | (49,499) | (4,788) | ||||||||||
Net loss | (4,905) | (4,373) | (49,499) | (4,788) | ||||||||||
Other comprehensive (loss)/income | ||||||||||||||
Changes in fair value of long-term investments | (1,417) | – | (2,470) | (139) | ||||||||||
Transfer out of fair value changes of long-term investments | – | – | 8,050 | (65) | ||||||||||
Foreign currency translation | 760 | 2,904 | (4,494) | 1,876 | ||||||||||
Total comprehensive loss attributable to Tuya Inc. | (5,562) | (1,469) | (48,413) | (3,116) | ||||||||||
TUYA INC. | ||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
Net loss attributable to Tuya Inc. | (4,905) | (4,373) | (49,499) | (4,788) | ||||||||||
Net loss attributable to ordinary shareholders | (4,905) | (4,373) | (49,499) | (4,788) | ||||||||||
Weighted average number of ordinary shares used in | 555,782,518 | 569,821,232 | 554,914,108 | 562,913,590 | ||||||||||
Net loss per share attributable to | (0.01) | (0.01) | (0.09) | (0.01) | ||||||||||
Share-based compensation expenses were included in: | 3,165 | 4,978 | 11,288 | 11,860 | ||||||||||
Sales and marketing expenses | 758 | 1,675 | 3,984 | 4,229 | ||||||||||
General and administrative expenses | 11,025 | 17,663 | 34,008 | 39,450 | ||||||||||
TUYA INC. | ||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||
September 30, 2023 | September 30, 2024 | September 30, 2023 | September 30, 2024 | |||||||||||
Net cash generated from operating activities | 16,070 | 23,851 | 4,683 | 50,170 | ||||||||||
Net cash generated from/(used in) investing activities | 55,027 | (28,213) | 32,692 | 61,872 | ||||||||||
Net cash used in financing activities | (318) | (328) | (2,385) | (178) | ||||||||||
Effect of exchange rate changes on cash and cash | 953 | 826 | (1,877) | 503 | ||||||||||
Net increase/(decrease) in cash and cash equivalents, | 71,732 | (3,864) | 33,113 | 112,367 | ||||||||||
Cash and cash equivalents, restricted cash at the | 94,542 | 614,919 | 133,161 | 498,688 | ||||||||||
Cash and cash equivalents, restricted cash | 166,274 | 611,055 | 166,274 | 611,055 | ||||||||||
TUYA INC. | ||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
Reconciliation of operating expenses to non-GAAP | ||||||||||||||
Research and development expenses | (24,946) | (24,877) | (79,471) | (71,344) | ||||||||||
Add: Share-based compensation expenses | 3,165 | 4,978 | 11,288 | 11,860 | ||||||||||
Adjusted Research and development expenses | (21,781) | (19,899) | (68,183) | (59,484) | ||||||||||
Sales and marketing expenses | (9,418) | (9,663) | (29,503) | (28,033) | ||||||||||
Add: Share-based compensation expenses | 758 | 1,675 | 3,984 | 4,229 | ||||||||||
Adjusted Sales and marketing expenses | (8,660) | (7,988) | (25,519) | (23,804) | ||||||||||
General and administrative expenses | (15,843) | (22,301) | (56,909) | (54,636) | ||||||||||
Add: Share-based compensation expenses | 11,025 | 17,663 | 34,008 | 39,450 | ||||||||||
Add: Credit-related impairment of long-term investments | 52 | – | 8,102 | 189 | ||||||||||
Add: Litigation costs | – | 200 | – | 2,300 | ||||||||||
Adjusted General and administrative expenses | (4,766) | (4,438) | (14,799) | (12,697) | ||||||||||
Reconciliation of loss from operations to non-GAAP | ||||||||||||||
Loss from operations | (18,487) | (17,113) | (82,200) | (43,824) | ||||||||||
Add: Share-based compensation expenses | 14,948 | 24,316 | 49,280 | 55,539 | ||||||||||
Add: Credit-related impairment of long-term investments | 52 | – | 8,102 | 189 | ||||||||||
Add: Litigation costs | – | 200 | – | 2,300 | ||||||||||
Non-GAAP (loss)/profit from operations | (3,487) | 7,403 | (24,818) | 14,204 | ||||||||||
Non-GAAP Operating margin | (5.7) % | 9.1 % | (15.0) % | 6.6 % | ||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
Reconciliation of net loss to non-GAAP | ||||||||||||||
Net loss | (4,905) | (4,373) | (49,499) | (4,788) | ||||||||||
Add: Share-based compensation expenses | 14,948 | 24,316 | 49,280 | 55,539 | ||||||||||
Add: Credit-related impairment of long-term investments | 52 | – | 8,102 | 189 | ||||||||||
Add: Litigation costs | – | 200 | – | 2,300 | ||||||||||
Non-GAAP Net profit | 10,095 | 20,143 | 7,883 | 53,240 | ||||||||||
Non-GAAP Net margin | 16.5 % | 24.7 % | 4.8 % | 24.6 % | ||||||||||
Weighted average number of ordinary shares used in | ||||||||||||||
– Basic | 555,782,518 | 569,821,232 | 554,914,108 | 562,913,590 | ||||||||||
– Diluted | 586,434,725 | 571,386,571 | 586,533,052 | 585,311,819 | ||||||||||
Non-GAAP net profit per share attributable | ||||||||||||||
– Basic | 0.02 | 0.04 | 0.01 | 0.09 | ||||||||||
– Diluted | 0.02 | 0.04 | 0.01 | 0.09 | ||||||||||
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SOURCE Tuya Inc.
FAQ
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