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Tuya Reports Second Quarter 2024 Unaudited Financial Results and Declaration of Special Dividend

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Tuya Inc. (NYSE: TUYA; HKEX: 2391) reported strong Q2 2024 financial results:

  • Total revenue up 28.6% YoY to $73.3 million
  • IoT PaaS revenue up 32% YoY to $54.3 million
  • Overall gross margin increased to 48.0%
  • Achieved first positive quarterly non-GAAP operating margin of 10.0%
  • Net profit of $3.1 million, compared to net loss of $23.5 million in Q2 2023
  • Non-GAAP net profit up 1,276.5% to $20.8 million

The company declared a special cash dividend of $0.0589 per share. Tuya's strong performance was driven by reduced inventory backlog, economic recovery, strategic focus on customers, and product enhancements. Management expressed confidence in future growth and profitability.

Tuya Inc. (NYSE: TUYA; HKEX: 2391) ha riportato risultati finanziari solidi per il secondo trimestre del 2024:

  • Il fatturato totale è aumentato del 28,6% su base annua a 73,3 milioni di dollari
  • Il fatturato dell'IoT PaaS è aumentato del 32% su base annua a 54,3 milioni di dollari
  • Il margine lordo complessivo è salito al 48,0%
  • Raggiunto il primo margine operativo non-GAAP positivo di 10,0% per un trimestre
  • Utile netto di 3,1 milioni di dollari, rispetto a una perdita netta di 23,5 milioni di dollari nel secondo trimestre del 2023
  • Utile netto non-GAAP aumentato del 1.276,5% a 20,8 milioni di dollari

L'azienda ha dichiarato un dividendo speciale in contanti di 0,0589 dollari per azione. Le forti performance di Tuya sono state guidate da una riduzione dell'inventario arretrato, dal recupero economico, da un focus strategico sui clienti e dal miglioramento dei prodotti. La direzione ha espresso fiducia nella crescita e nella redditività future.

Tuya Inc. (NYSE: TUYA; HKEX: 2391) informó resultados financieros sólidos para el segundo trimestre de 2024:

  • Los ingresos totales aumentaron un 28.6% interanual a 73.3 millones de dólares
  • Los ingresos de IoT PaaS aumentaron un 32% interanual a 54.3 millones de dólares
  • El margen bruto general aumentó al 48.0%
  • Se logró el primer margen operativo no-GAAP positivo del 10.0% en un trimestre
  • Beneficio neto de 3.1 millones de dólares, en comparación con una pérdida neta de 23.5 millones de dólares en el segundo trimestre de 2023
  • Beneficio neto no-GAAP aumentó un 1,276.5% a 20.8 millones de dólares

La compañía declaró un dividendo en efectivo especial de 0.0589 dólares por acción. El sólido desempeño de Tuya se ha visto impulsado por la reducción del inventario pendiente, la recuperación económica, el enfoque estratégico en los clientes y las mejoras en los productos. La dirección expresó confianza en el crecimiento y la rentabilidad futura.

Tuya Inc. (NYSE: TUYA; HKEX: 2391)는 2024년 2분기 재무 실적을 발표했습니다:

  • 총 수익은 지난해 대비 28.6% 증가한 7330만 달러
  • IoT PaaS 수익은 지난해 대비 32% 증가한 5430만 달러
  • 전체 총 이익률은 48.0%로 증가했습니다.
  • 첫 분기 비-GAAP 운영 마진 10.0%을 기록했습니다.
  • 순익은 310만 달러로, 2023년 2분기의 순손실 2350만 달러와 비교되었습니다.
  • 비-GAAP 순익은 1,276.5% 증가한 2080만 달러입니다.

회사는 주당 0.0589달러의 특별 현금 배당금을 선언했습니다. Tuya의 강력한 성과는 재고 적체 감소, 경제 회복, 고객에 대한 전략적 집중 및 제품 개선에 의해 촉진되었습니다. 경영진은 미래 성장과 수익성에 대한 자신감을 표명했습니다.

Tuya Inc. (NYSE: TUYA; HKEX: 2391) a annoncé des résultats financiers solides pour le deuxième trimestre de 2024 :

  • Le chiffre d'affaires total a augmenté de 28,6 % d'une année sur l'autre pour atteindre 73,3 millions de dollars
  • Les revenus d'IoT PaaS ont augmenté de 32 % d'une année sur l'autre pour atteindre 54,3 millions de dollars
  • La marge brute globale a augmenté à 48,0 %
  • Obtention de la première marge opérationnelle non-GAAP positive de 10,0 % pour un trimestre
  • Bénéfice net de 3,1 millions de dollars, par rapport à une perte nette de 23,5 millions de dollars au deuxième trimestre de 2023
  • Bénéfice net non-GAAP en hausse de 1 276,5 % à 20,8 millions de dollars

L'entreprise a déclaré un dividende spécial en espèces de 0,0589 dollar par action. La forte performance de Tuya a été stimulée par la réduction des stocks en attente, la reprise économique, un focus stratégique sur les clients et l'amélioration des produits. La direction a exprimé sa confiance dans la croissance et la rentabilité futures.

Tuya Inc. (NYSE: TUYA; HKEX: 2391) hat starke Finanzzahlen für das zweite Quartal 2024 gemeldet:

  • Der Gesamtumsatz stieg um 28,6% im Vergleich zum Vorjahr auf 73,3 Millionen Dollar
  • Der Umsatz aus IoT PaaS stieg um 32% im Vergleich zum Vorjahr auf 54,3 Millionen Dollar
  • Die Gesamtkostenmarge erhöhte sich auf 48,0%
  • Erzielte die erste positive quartalsweise Non-GAAP-Betriebs profitmarge von 10,0%
  • Netto gewinn von 3,1 Millionen Dollar, verglichen mit einem Nettoverlust von 23,5 Millionen Dollar im 2. Quartal 2023
  • Non-GAAP-Netto gewinn stieg um 1.276,5% auf 20,8 Millionen Dollar

Das Unternehmen erklärte eine Sonderdividende von 0,0589 Dollar pro Aktie. Der starke Auftritt von Tuya wurde durch den Rückgang des Lagerbestands, die wirtschaftliche Erholung, den strategischen Fokus auf die Kunden und Produktverbesserungen unterstützt. Das Management drückte sein Vertrauen in das zukünftige Wachstum und die Rentabilität aus.

Positive
  • Total revenue increased 28.6% year-over-year to $73.3 million
  • IoT PaaS revenue grew 32% year-over-year to $54.3 million
  • Achieved first positive quarterly non-GAAP operating margin of 10.0%
  • Reported net profit of $3.1 million, compared to net loss of $23.5 million in Q2 2023
  • Non-GAAP net profit increased 1,276.5% to $20.8 million
  • Overall gross margin improved to 48.0%, up 1.3 percentage points year-over-year
  • Declared special cash dividend of $0.0589 per share
  • Dollar-based net expansion rate (DBNER) of IoT PaaS improved to 127% from 58% year-over-year
Negative
  • Total customers decreased to approximately 3,000 from 3,300 in Q2 2023
  • IoT PaaS customers decreased to approximately 2,100 from 2,300 in Q2 2023

Insights

Tuya's Q2 2024 results show significant progress towards profitability and growth. Key highlights include:

  • Revenue up 28.6% YoY to $73.3 million, driven by 32% growth in IoT PaaS revenue
  • First-ever positive non-GAAP operating margin of 10%, improving from -11.2% last year
  • Non-GAAP net profit of $20.8 million, up 1,276.5% YoY
  • Strong cash position of $1 billion

The results reflect improved efficiency, cost control and market recovery. The special dividend of $0.0589 per share signals confidence. However, challenges remain including economic uncertainties and geopolitical risks. Overall, this represents a positive turning point for Tuya's financials and outlook.

Tuya's Q2 performance demonstrates resilience in the IoT sector. The 32% growth in IoT PaaS revenue and 127% dollar-based net expansion rate indicate strong demand and customer retention. The increase in premium IoT PaaS customers to 280, contributing 84.8% of IoT PaaS revenue, shows successful execution of their key-account strategy. The 20.1% growth in registered developers to over 1.19 million suggests an expanding ecosystem. Tuya's focus on AI integration and smart solutions positions them well in the evolving tech landscape. However, the slight decrease in total customers warrants monitoring. The company's transition to profitability while maintaining innovation is important for long-term success in the competitive IoT market.

Tuya's Q2 results reflect broader market trends in the IoT and smart technology sectors. The 44.2% YoY growth in smart solution revenue indicates rising demand for integrated intelligent devices. This aligns with the global smart home market's expansion. The improved financial performance, especially the transition to non-GAAP profitability, could boost investor confidence in IoT platform companies. The 127% DBNER suggests strong upselling and cross-selling capabilities. However, the slight decline in total customers from 3,300 to 3,000 YoY might indicate market consolidation or shifts in the competitive landscape. The declaration of a special dividend may be viewed positively by income-focused investors. Overall, Tuya's results suggest a maturing IoT market with opportunities for well-positioned players.

SANTA CLARA, Calif., Aug. 26, 2024 /PRNewswire/ -- Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading cloud platform service provider, today announced its unaudited financial results for the second quarter ended June 30, 2024 and the declaration of a special cash dividend.

Second Quarter 2024 Financial Highlights

  • Total revenue was US$73.3 million, up approximately 28.6% year over year (2Q2023: US$57.0 million).

  • IoT platform-as-a-service ("PaaS") revenue was US$54.3 million, up approximately 32.0% year over year (2Q2023: US$41.1 million).

  • Software-as-a-service ("SaaS") and others revenue was US$9.6 million, up approximately 2.4% year over year (2Q2023: US$9.4 million).

  • Smart solution revenue was US$9.4 million, up approximately 44.2% year over year (2Q2023: US$6.5 million).

  • Overall gross margin increased to 48.0%, up 1.3 percentage points year over year (2Q2023: 46.7%). Gross margin of IoT PaaS increased to 47.6%, up 3.4 percentage points year over year (2Q2023: 44.2%).

  • Operating margin was negative 14.1%, improved by 41.0 percentage points year over year (2Q2023: negative 55.1%). Non-GAAP operating margin was 10.0%, improved by 21.2 percentage points year over year (2Q2023: negative 11.2%), marking the Company's first positive quarterly non-GAAP operating margin.

  • Net margin was 4.3%, improved by 45.6 percentage points year over year (2Q2023: negative 41.3%). Non-GAAP net margin was 28.4%, improved by 25.7 percentage points year over year (2Q2023: 2.7%).

  • Net cash generated from operating activities was US$11.8 million (2Q2023: US$7.5 million).

  • Total cash and cash equivalents, time deposits and treasury securities recorded as short- term and long-term investments were US$1,000.1 million as of June 30, 2024, compared to US$984.3 million as of December 31, 2023.

For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."

Second Quarter 2024 Operating Highlights

  • IoT PaaS customers1 for the second quarter of 2024 were approximately 2,100 (2Q2023: approximately 2,300). Total customers for the second quarter of 2024 were approximately 3,000 (2Q2023: approximately 3,300). The Company's key-account strategy has enabled it to focus on serving strategic customers.

  • Premium IoT PaaS customers2 for the trailing 12 months ended June 30, 2024 were 280 (2Q2023: 251). In the second quarter of 2024, the Company's premium IoT PaaS customers contributed approximately 84.8% of its IoT PaaS revenue (2Q2023: approximately 79.8%).

  • Dollar-based net expansion rate ("DBNER")3 of IoT PaaS for the trailing 12 months ended June 30, 2024 was 127% (2Q2023: 58%).

  • Registered IoT device and software developers were over 1,192,000 as of June 30, 2024, up 20.1% 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 US$100,000 of IoT PaaS revenue during the immediately preceding 12-month period.

  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 Company 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, "The second quarter of 2024 marks a significant milestone for our company, as we attained a quarterly non- GAAP operating profit for the first time in our history with an operating margin of about 10%. This achievement demonstrates the effectiveness of our business model and highlights the operational leverage within our business, as well as our commitment to delivering on our promises. As the world's leading cloud platform service provider, we are entering a new phase in the smart technology sector. This progress is fueled by a more favorable competitive environment, GenAI technology advancements, renewed momentum in the smart consumer electronics and smart business markets, and, more importantly, Tuya's unwavering commitment to strategic decisions and execution focused on customers, product innovation, and operations. Looking ahead, we remain focused on driving long-term revenue growth and achieving solid profit margins, while continuing to deliver the best smart technology solutions to our global customers and partners."

Ms. Yao (Jessie) Liu, Director and Chief Financial Officer of Tuya, added, "Our strong financial performance in the second quarter was underscored by a 29% year-over-year increase in total revenue, reaching $73.3 million. Our IoT PaaS revenue grew by 32% year-over-year, fueled by a resurgence in industry demand and our ability to attract new customers while strengthening partnerships with existing ones. Meanwhile, our smart solutions revenue saw a 44.2% year-over- year increase, reflecting the strong market demand and the value proposition of our offerings. Crucially, our strong revenue growth, enhanced efficiency, stable gross margins, and excellent control over expenses and costs led to Tuya's first-ever non-GAAP operational profitability in this quarter. Looking ahead, we are confident that Tuya's strong financial and operational foundation will continue to drive sustainable growth and profit margin improvements."

Second Quarter 2024 Unaudited Financial Results

REVENUE

Total revenue in the second quarter of 2024 increased by 28.6% to US$73.3 million from US$57.0 million in the same period of 2023, mainly due to the increase in IoT PaaS revenue and smart solution revenue.

  • IoT PaaS revenue in the second quarter of 2024 increased by 32.0% to US$54.3 million from US$41.1 million in the same period of 2023, primarily due to reduced downstream inventory backlog, a 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 June 30, 2024 increased to 127% from 58% for the trailing 12 months ended June 30, 2023.

  • SaaS and others revenue in the second quarter of 2024 increased by 2.4% to US$9.6 million from US$9.4 million in the same period of 2023. 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.

  • Smart solution revenue in the second quarter of 2024 increased by 44.2% to US$9.4 million from US$6.5 million in the same period of 2023, primarily due to the increasing customer demand for smart devices with integrated intelligent software capabilities the Company developed beyond IoT.

COST OF REVENUE

Cost of revenue in the second quarter of 2024 increased by 25.4% to US$38.1 million from US$30.4 million in the same period of 2023, generally in line with the increase in the Company's total revenue.

GROSS PROFIT AND GROSS MARGIN

Total gross profit in the second quarter of 2024 increased by 32.1% to US$35.2 million from US$26.6 million in the same period of 2023 and gross margin increased to 48.0% in the second quarter of 2024 from 46.7% in the same period of 2023.

  • IoT PaaS gross margin in the second quarter of 2024 was 47.6%, compared to 44.2% in the same period of 2023, primarily due to the changes in product mix and increased product value.

  • SaaS and others gross margin in the second quarter of 2024 was 71.0%, compared to 74.5% in the same period of 2023, due to the variations in product and service mix.

  • Smart solution gross margin in the second quarter of 2024 was 26.8%, compared to 23.0% in the same period of 2023, primarily due to the high-value product solutions the Company provided to its customers during the second quarter of 2024.

OPERATING EXPENSES

Operating expenses decreased by 21.6% to US$45.5 million in the second quarter of 2024 from US$58.1 million in the same period of 2023. Non-GAAP operating expenses decreased by 15.6% to US$27.8 million in the second quarter of 2024 from US$33.0 million in the same period of 2023. For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."

  • Research and development expenses in the second quarter of 2024 were US$23.0 million, down 13.1% from US$26.5 million in the same period of 2023, primarily due to the decrease in employee-related costs. During this quarter, average salaried employee headcount of the Company's research and development team was down approximately 16.7% year over year, but remained relatively stable compared to the previous quarter. Non-GAAP adjusted research and development expenses in the second quarter of 2024 were US$19.6 million, compared to US$22.5 million in the same period of 2023.

  • Sales and marketing expenses in the second quarter of 2024 were US$9.4 million, down 4.5% from US$9.8 million in the same period of 2023, primarily due to the decrease in employee- related costs. Non-GAAP adjusted sales and marketing expenses in the second quarter of 2024 were US$8.2 million, compared to US$8.2 million in the same period of 2023.

  • General and administrative expenses in the second quarter of 2024 were US$16.9 million, down 30.5% compared to US$24.3 million in the same period of 2023, primarily due to the decline in credit-related impairment of long-term investments. Non-GAAP adjusted general and administrative expenses in the second quarter of 2024 were US$3.7 million, compared to US$4.8 million in the same period of 2023.

  • Other operating income, net in the second quarter of 2024 was US$3.7 million, primarily due to the receipt of software value-added tax refunds and various general subsidies for enterprises.

LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGIN

Loss from operations in the second quarter of 2024 narrowed by 67.1% to US$10.3 million from US$31.4 million in the same period of 2023. The Company had a non-GAAP profit from operations of US$7.4 million in the second quarter of 2024, compared to a non-GAAP loss from operations of US$6.4 million in the same period of 2023, achieving operating profitability on a non-GAAP basis for the first time.

Operating margin in the second quarter of 2024 was negative 14.1%, improved by 41.0 percentage points from negative 55.1% in the same period of 2023. Non-GAAP operating margin in the second quarter of 2024 was 10.0%, improved by 21.2 percentage points from negative 11.2% in the same period of 2023.

NET LOSS/PROFIT AND NET MARGIN

The Company had a net profit of US$3.1 million in the second quarter of 2024, compared to a net loss of US$23.5 million in the same period of 2023, marking it the first fiscal quarter that the Company has achieved break-even profitability on a GAAP basis. The difference between loss from operations and net profit in the second quarter of 2024 was primarily because of a US$12.5 million interest income achieved mainly due to well implemented treasury strategies on the Company's cash, time deposits and treasury securities recorded as short-term and long-term investments.

The Company had a non-GAAP net profit of US$20.8 million in the second quarter of 2024, up 1,276.5% compared to US$1.5 million in the same period of 2023, demonstrating the Company's ability to sustain strong profitability on a non-GAAP basis.

Net margin in the second quarter of 2024 was 4.3%, improving by 45.6 percentage points from negative 41.3% in the same period of 2023. Non-GAAP net margin in the second quarter of 2024 was 28.4%, improving by 25.7 percentage points from 2.7% in the same period of 2023.

BASIC AND DILUTED NET LOSS/PROFIT PER ADS

Basic and diluted net profit per ADS was US$0.01 in the second quarter of 2024, compared to basic and diluted net loss of US$0.04 in the same period of 2023. Each ADS represents one Class A ordinary share.

Non-GAAP basic and diluted net profit per ADS was US$0.04 in the second quarter of 2024, compared to non-GAAP basic and diluted net profit of US$0.00 in the same period of 2023.

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 US$1,000.1 million as of June 30, 2024, compared to US$984.3 million as of December 31, 2023, which the Company believes is sufficient to meet its current liquidity and working capital needs.

NET CASH GENERATED FROM OPERATING ACTIVITIES

Net cash generated from operating activities in the second quarter of 2024 was US$11.8 million, compared to US$7.5 million in the same period of 2023. The net cash generated from operating activities for the second quarter of 2024 improved mainly due to the increase in the Company's revenue, and the decrease in operating expenses, particularly employee-related costs, and working capital changes in the ordinary course of business.

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, normalizing downstream inventory levels, and growing demand for consumer electronics, 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 generative 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.

Declaration of Special Dividend and Record Date

On August 26, 2024, the Board has approved the declaration and distribution of a special dividend (the "Special Dividend") of US$0.0589 per ordinary share, or US$0.0589 per ADS, to such holders as at the close of business on September 11, 2024, Hong Kong Time and New York Time, respectively. The aggregate amount of the Special Dividend will be approximately US$33 million, which is payable in U.S. dollars and in cash, and will be funded by surplus cash and to be paid out from the share premium account of the Company. The determination to make distributions and the amount of such distributions will be made at the discretion of its Board and will be based upon the Company's operations and earnings, including, but not limited, considerations of the Company's GAAP and Non-GAAP net profits, cash flows, financial conditions and other relevant factors.

In order to qualify for the Special Dividend, with respect to ordinary shares registered on the Company's Hong Kong share register, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the Company's Hong Kong share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong, no later than 4:30 p.m. on Wednesday, September 11, 2024, Hong Kong time; and with respect to the ordinary shares registered on the Company's principal share register in the Cayman Islands, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the Company's principal share registrar, Maples Fund Services (Cayman) Limited, at PO Box 1093, Boundary Hall, Cricket Square, Grand Cayman, KY1-1102, Cayman Islands, no later than 3:30 p.m. on Tuesday, September 10, 2024, Cayman Islands time (due to the time difference between Cayman Islands and Hong Kong).

Dividend to be paid to the holders of ADSs issued by the depositary of the ADSs will be subject to the terms of the deposit agreement.

The payment date is expected to be on or around October 9, 2024 for holders of ordinary shares, and on or around October 15, 2024 for holders of ADSs.

Conference Call Information

The Company's management will hold a conference call at 08:30 P.M. Eastern Time on Monday, August 26, 2024 (08:30 A.M. Beijing Time on Tuesday, August 27, 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/BI51298387e78143d9935bd5c0ea03f104 

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 from operations (including non-GAAP operating margin), non-GAAP net (loss)/profit (including non-GAAP net margin), and non-GAAP basic and diluted net (loss)/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 the United States of America ("U.S. GAAP"). The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses, credit-related impairment of long-term investments and litigation costs from the respective GAAP financial measures. The Company presents the non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company also believes that the use of the non-GAAP financial measures facilitates investors' assessment of its operating performance.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the aforementioned non-GAAP financial measures is that they do not reflect all items of expenses that affect the Company's operations. Share-based compensation expenses, credit-related impairment of long-term investments and litigation costs have been and may continue to be incurred in the business and are not reflected in the presentation of non-GAAP measures. Further, the non-GAAP financial measures may differ from the non- GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP measures to the most directly comparable U.S. GAAP measures, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of Tuya's non-GAAP financial measures to the most comparable U.S. GAAP measures are included at the end of this press release.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "target", "aim", "estimate", "intend", "plan", "believe", "potential", "continue", "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. The forward-looking statements included in this press release are only made as of the date hereof, and the Company disclaims any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

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

 

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2023 AND JUNE 30, 2024

(All amounts in US$ thousands ("US$"),
except for share and per share data, unless otherwise noted)



As of December
31,
2023


As of June
30,

2024


ASSETS





Current assets:





Cash and cash equivalents

498,688


614,767


Restricted cash


152


Short-term investments

291,023


175,218


Accounts receivable, net

9,214


6,763


Notes receivable, net

4,955


7,271


Inventories, net

32,865


28,088


Prepayments and other current assets, net

11,053


19,027


Total current assets

847,798


851,286


Non-current assets:
Property, equipment and software, net

2,589


2,394


Operating lease right-of-use assets, net

7,647


6,007


Long-term investments

207,489


220,401


Other non-current assets, net

877


9,562


Total non-current assets

218,602


238,364


Total assets

1,066,400


1,089,650







LIABILITIES AND SHAREHOLDERS' EQUITY





Current liabilities:





Accounts payable

11,577


11,638


Advances from customers

31,776


32,299


Deferred revenue, current

6,802


6,504


Accruals and other current liabilities

32,807


30,625


Incomes tax payables

689



Lease liabilities, current

3,883


3,872


Total current liabilities

87,534


84,938


Non-current liabilities:





Lease liabilities, non-current
Lease liabilities, non-current

3,904


2,120


Deferred revenue, non-current

506


425


Other non-current liabilities

3,891


2,300


Total non-current liabilities

8,301


4,845


Total liabilities

95,835


89,783


 

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
AS OF DECEMBER 31, 2023 AND JUNE 30, 2024

(All amounts in US$ thousands ("US$"),
except for share and per share data, unless otherwise noted)



As of
December 31,
2023

As of June
30,

2024


Shareholders' equity:








Ordinary shares


Class A ordinary shares

25

25


Class B ordinary shares

4

4


Treasury stock

(53,630)

(43,628)


Additional paid-in capital

1,616,105

1,637,052


Accumulated other comprehensive loss

(17,091)

(18,323)


Accumulated deficit

(574,848)

(575,263)






Total shareholders' equity

970,565

999,867






Total liabilities and shareholders' equity

1,066,400

1,089,650


 

 

COMPREHENSIVE LOSS
(All amounts in US$ thousands ("US$"),
except for share and per share data, unless otherwise noted)




For the Three Months Ended

For the Six Months Ended



June 30,
2023

June 30,
2024

June 30,
2023

June 30,
2024


Revenue

57,004

73,279

104,489

134,941


Cost of revenue

(30,363)

(38,087)

(56,820)

(70,264)


Gross profit

26,641

35,192

47,669

64,677


Operating expenses:






Research and development expenses

(26,474)

(22,993)

(54,525)

(46,467)


Sales and marketing expenses

(9,826)

(9,387)

(20,085)

(18,370)


General and administrative expenses

(24,273)

(16,861)

(41,066)

(32,335)


Other operating incomes, net

2,514

3,705

4,294

5,784


Total operating expenses

(58,059)

(45,536)

(111,382)

(91,388)


Loss from operations

(31,418)

(10,344)

(63,713)

(26,711)


Other income






Other non-operating incomes, net

778

1,869

1,556

2,647


Financial income, net

7,305

12,452

18,775

25,259


Foreign exchange gain/(loss), net

937

(257)

903

(362)


(Loss)/profit before income tax expense

(22,398)

3,720

(42,479)

833


Income tax expense

(1,151)

(592)

(2,115)

(1,248)


Net (loss)/profit

(23,549)

3,128

(44,594)

(415)








Net (loss)/profit attributable to Tuya Inc.

(23,549)

3,128

(44,594)

(415)








Net (loss)/profit attributable to ordinary shareholders

(23,549)

3,128

(44,594)

(415)








Net (loss)/profit

(23,549)

3,128

(44,594)

(415)


Other comprehensive (loss)/income






Changes in fair value of long-term investments

(1,053)

(139)

(1,053)

(139)


Transfer out of fair value changes of long-term
investments

8,050

8,050

(65)


Foreign currency translation

(6,882)

(600)

(5,254)

(1,028)


Total comprehensive (loss)/income attributable to Tuya Inc.

(23,434)

2,389

(42,851)

(1,647)


 

 

 

COMPREHENSIVE LOSS (CONTINUED)
(All amounts in US$ thousands ("US$"),
except for share and per share data, unless otherwise noted)

 


For the Three Months Ended


For the Six Months Ended



June 30,
2023

June 30,
2024


June 30,
2023

June 30,
2024


Net (loss)/profit attributable to Tuya Inc.

(23,549)

3,128


(44,594)

 

(415)


 Net (loss)/profit attributable to ordinary shareholders

(23,549)

3,128


(44,594)

(415)









Weighted average number of ordinary shares used in computing net
loss per share







– Basic

554,945,739

559,710,445


554,472,706

559,421,815


– Diluted

554,945,739

592,735,568


554,472,706

559,421,815


Net (loss)/profit per share attributable to ordinary shareholders







– Basic

(0.04)

0.01

(0.08)

0.00


– Diluted

(0.04)

0.01

(0.08)

0.00


Share-based compensation expenses were included in:







Research and development expenses

4,006

3,376

8,123

6,882


Sales and marketing expenses

1,620

1,169

3,226

2,554


General and administrative expenses

11,386

10,864

22,983

21,787


 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in US$ thousands ("US$"),
except for share and per share data, unless otherwise noted)



For the Three Months Ended

For the Six Months Ended



June 30,
2023

June 30,
2024

June 30,
2023

June 30,
2024


Net cash generated from/(used in) operating activities

7,495

11,829

(11,387)

26,319


Net cash generated from/(used in) investing activities

11,489

73,890

(22,335)

90,085


Net cash generated from/(used in) financing activities

104

(104)

(2,067)

150


Effect of exchange rate changes on cash and cash equivalents,
restricted cash

(3,791)

(197)

(2,830)

(323)


Net increase/(decrease) in cash and cash equivalents, restricted
cash

15,297

85,418

(38,619)

116,231


Cash and cash equivalents, restricted cash at the beginning of period

79,245

529,501

133,161

498,688


Cash and cash equivalents, restricted cash at the end of period

94,542

614,919

94,542

614,919


 

 

UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST
DIRECTLY COMPARABLE FINANCIAL MEASURES

(All amounts in US$ thousands ("US$"),
except for share and per share data, unless otherwise noted)




For the Three Months Ended

For the Six Months Ended




June 30,
2023

June 30,
2024

June 30,
2023

June 30,
2024


  Reconciliation of operating expenses to non-GAAP operating expenses






Research and development expenses

(26,474)

(22,993)

(54,525)

(46,467)


Add: Share-based compensation

4,006

3,376

8,123

6,882


Adjusted Research and development expenses

(22,468)

(19,617)

(46,402)

(39,585)


Sales and marketing expenses

(9,826)

(9,387)

(20,085)

(18,370)


Add: Share-based compensation

1,620

1,169

3,226

2,554


Adjusted Sales and marketing expenses

(8,206)

(8,218)

(16,859)

(15,816)


General and administrative expenses

(24,273)

(16,861)

(41,066)

(32,335)


Add: Share-based compensation

11,386

10,864

22,983

21,787


Add: Credit-related impairment of long-term investments

8,050

189

8,050

189


Add: Litigation costs

2,100

2,100


Adjusted General and administrative expenses

(4,837)

(3,708)

(10,033)

(8,259)


Reconciliation of loss from operations to non-GAAP






(loss)/profit from operations






Loss from operations

(31,418)

(10,344)

(63,713)

(26,711)


Add: Share-based compensation expenses

17,012

15,409

34,332

31,223


Add: Credit-related impairment of long-term investments

8,050

189

8,050

189


Add: Litigation costs

2,100

2,100


Non-GAAP (Loss)/Profit from operations

(6,356)

7,354

(21,331)

6,801


Non-GAAP Operating margin

(11.2) %

10.0 %

(20.4) %

5.0 %


Reconciliation of net (loss)/profit to non-GAAP net profit/(loss)












Net (loss)/profit

(23,549)

3,128

(44,594)

(415)


Add: Share-based compensation expenses

17,012

15,409

34,332

31,223


Add: Credit-related impairment of long-term investments

8,050

189

8,050

189


Add: Litigation costs

2,100

2,100


Non-GAAP Net profit/(loss)

1,513

20,826

(2,212)

33,097


Non-GAAP Net margin

2.7 %

28.4 %

(2.1) %

24.5 %


Weighted average number of ordinary shares used in computing non-
GAAP net profit/(loss) per share







– Basic

554,945,739

559,710,445

554,472,706

559,421,815


– Diluted

586,513,021

592,735,568

554,472,706

591,970,099


Non-GAAP net profit/(loss) per share attributable to ordinary
shareholders







– Basic

0.00

0.04

0.00

0.06


– Diluted

0.00

0.04

0.00

0.06


 

 

Cision View original content:https://www.prnewswire.com/news-releases/tuya-reports-second-quarter-2024-unaudited-financial-results-and-declaration-of-special-dividend-302230822.html

SOURCE Tuya Inc.

FAQ

What was Tuya's total revenue for Q2 2024?

Tuya's total revenue for Q2 2024 was $73.3 million, up 28.6% year-over-year from $57.0 million in Q2 2023.

Did Tuya (TUYA) achieve profitability in Q2 2024?

Yes, Tuya achieved profitability in Q2 2024 with a net profit of $3.1 million, compared to a net loss of $23.5 million in Q2 2023. This marks the company's first quarter of GAAP profitability.

What was Tuya's (TUYA) non-GAAP operating margin in Q2 2024?

Tuya's non-GAAP operating margin in Q2 2024 was 10.0%, marking the company's first positive quarterly non-GAAP operating margin.

Did Tuya (TUYA) declare a dividend for Q2 2024?

Yes, Tuya declared a special cash dividend of $0.0589 per ordinary share or ADS for Q2 2024, with a total dividend amount of approximately $33 million.

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