Financial Performance - Total revenue for Q4 2023 was $64.4 million, representing a year-over-year increase of approximately 42.2% compared to $45.3 million in Q4 2022[6] - The company reported a non-GAAP net profit of $12.6 million in Q4 2023, compared to a non-GAAP net loss of $5.2 million in the same quarter last year[13] - The net loss narrowed by 52.4% to $10.8 million in Q4 2023, down from $22.7 million in Q4 2022[13] - Revenue for the three months ended December 31, 2023, was $64,411,000, representing a 42.3% increase from $45,286,000 in the same period of 2022[26] - Gross profit for the same period increased to $30,463,000, up from $20,186,000, indicating a significant improvement in profitability[26] IoT Platform as a Service (PaaS) Performance - IoT Platform as a Service (PaaS) revenue reached $47.2 million, up about 44.6% year-over-year from $32.6 million in Q4 2022[6] - The net expansion rate for IoT PaaS based on revenue was 103%, significantly up from 51% in Q4 2022[7] - The contribution of high-quality IoT PaaS customers to revenue was approximately 82.7%, up from 77.0% in Q4 2022[7] - The gross margin for the IoT PaaS segment improved to 44.8% in Q4 2023 from 41.5% in the same quarter last year[10] Cash Flow and Financial Position - Operating cash flow was $31.8 million, a significant improvement from a cash outflow of $0.1 million in Q4 2022[6] - Cash and cash equivalents, along with short-term and long-term investments, totaled $984.3 million as of December 31, 2023, compared to $952.0 million as of December 31, 2022[6] - Cash and cash equivalents increased significantly to $498,688,000 as of December 31, 2023, from $133,161,000 a year earlier, marking a growth of 274.5%[29] - Total assets rose slightly to $1,066,400,000 in 2023 from $1,056,139,000 in 2022, indicating stable asset management[25] Operating Expenses and Margins - Operating expenses rose by 2.0% to $54.1 million in Q4 2023, while non-GAAP operating expenses decreased by 13.5% to $30.7 million[11] - The company’s operating loss decreased by 28.0% to $23.6 million in Q4 2023, compared to $32.8 million in Q4 2022[12] - Non-GAAP operating margin improved to -0.4%, up 33.4 percentage points from -33.8% in Q4 2022[6] - The company reported a non-GAAP net loss margin of 16.8% for Q4 2023, an improvement from 50.2% in Q4 2022[30] Customer Metrics - The number of IoT PaaS customers was approximately 2,200, down from about 2,400 in Q4 2022, while total customers were around 3,200, down from 3,400[7] - The number of registered IoT devices and software developers grew to approximately 993,000, a 40.3% increase from about 708,000 developers as of December 31, 2022[7] Future Outlook and Strategy - The company expressed confidence in its financial foundation and growth momentum to support business expansion and product profitability in 2024[8] - The company anticipates continued inflation impacting discretionary consumer electronics spending, while downstream inventory levels are expected to normalize, providing greater flexibility for manufacturers and retailers[17] - The company is committed to iterating and improving its products and services, enhancing software and hardware capabilities, and diversifying revenue sources to optimize operational efficiency[17] Conference Call and Reporting - The upcoming earnings conference call is scheduled for February 27, 2024, at 7:30 PM EST, with access details provided for participants[18] General Information - Tuya Inc. is a leading IoT cloud development platform, offering a comprehensive suite of products including PaaS and SaaS to empower a vibrant IoT ecosystem[19] - The company uses non-GAAP financial metrics to assess business performance, which may not reflect all operating expenses and could limit comparability with other companies[20] - Forward-looking statements are subject to inherent risks and uncertainties, with actual results potentially differing significantly from those projected[21]

Financial Performance - Total revenue for Q3 2023 was $61.1 million, representing a year-over-year increase of approximately 35.7% compared to $45.0 million in Q3 2022[6] - In Q3 2023, Tuya achieved total revenue of $61.1 million, a year-over-year increase of 35.7% from $45.0 million in Q3 2022[9] - Revenue for Q3 2023 was $61.09 million, a 36% increase from $45.02 million in Q3 2022[28] - IoT PaaS revenue reached $45.8 million, up about 48.1% year-over-year from $30.9 million in Q3 2022[6] - IoT PaaS revenue rose by 48.1% to $45.8 million, while smart device distribution revenue increased by 32.1% to $6.8 million[9] Profitability Metrics - Gross margin improved to 46.7%, an increase of 3.1 percentage points from 43.6% in Q3 2022[6] - Gross profit for Q3 2023 was $28.5 million, up 45.2% from $19.6 million in Q3 2022, with a gross margin improvement from 43.6% to 46.7%[10] - Operating loss margin was negative 30.3%, an improvement of 59.5 percentage points from negative 89.8% in Q3 2022[6] - The operating loss narrowed by 54.3% to $18.5 million from $40.4 million in Q3 2022, indicating improved operational efficiency[13] - The non-GAAP operating loss reduced by 85.3% to $3.5 million from $23.7 million in the same period last year[13] - The net loss for Q3 2023 narrowed by 85.0% to $4.9 million from $32.6 million in Q3 2022[15] - Non-GAAP net profit increased to $10.1 million, demonstrating significant improvement in profitability despite market uncertainties[12] - The non-GAAP net profit for Q3 2023 was $10.1 million, compared to a non-GAAP net loss of $15.9 million in Q3 2022[15] - The net profit margin for Q3 2023 improved to -8.0%, up 64.5 percentage points from -72.5% in Q3 2022[15] Customer and Market Metrics - The number of IoT PaaS customers was approximately 2,100, down from about 2,700 in Q3 2022[7] - High-quality IoT PaaS customers contributed approximately 83.5% of PaaS revenue, up from 79.8% in Q3 2022[7] - The number of registered IoT devices and software developers exceeded 909,000, a growth of 28.5% from approximately 708,000 as of December 31, 2022[7] - The revenue-based Net Dollar Expansion Rate (DBNER) for IoT PaaS was 78%, up from 63% in Q3 2022[7] Cash Flow and Investments - Cash and cash equivalents, along with short-term and long-term investments, totaled $961.0 million as of September 30, 2023, compared to $952.0 million as of December 31, 2022[6] - Net cash provided by operating activities for Q3 2023 was $16.1 million, an increase from $13.5 million in Q3 2022, primarily due to a significant reduction in operating expenses[16] - Cash and cash equivalents increased to $166.27 million as of September 30, 2023, up from $133.16 million at the end of 2022[24] Operational Efficiency - Operating expenses decreased by 21.7% to $47.0 million compared to $60.1 million in Q3 2022, reflecting strategic cost control[12] - Research and development expenses for Q3 2023 were $24.95 million, down from $32.34 million in Q3 2022[28] - Adjusted sales and marketing expenses decreased from $12,406,000 in Q3 2022 to $8,660,000 in Q3 2023, a decline of 30.3%[33] - The total operating expenses for the nine months ended September 30, 2023, were $68,183,000, down from $106,490,000 for the same period in 2022, a decrease of 36.0%[33] Future Outlook - The company anticipates a moderate recovery in demand for discretionary consumer electronics in Q4 2023, despite ongoing inflationary pressures[17] - The company plans to continue iterating its products and services, enhancing software and hardware capabilities, and diversifying revenue sources to adapt to changing market conditions[17] - The company acknowledges potential challenges ahead, including shifts in consumer spending patterns and geopolitical uncertainties[17] - Tuya's focus on expanding its high-quality customer base and enhancing product capabilities is expected to drive future growth[8] - The company aims to balance growth and profitability, creating sustained value for customers and shareholders[8] Conference and Corporate Information - The company will hold a conference call on November 28, 2023, to discuss financial performance[18] - Tuya Inc. is a leading IoT cloud development platform, providing a comprehensive suite of products for businesses and developers[19]

Revenue Performance - Total revenue for the six months ended June 30, 2023, was $104.5 million, a decrease of approximately 11.4% year-over-year from $117.9 million[8]. - IoT Platform as a Service (PaaS) revenue was $74.7 million, down about 16.4% year-over-year from $89.4 million[8]. - Software as a Service (SaaS) and other revenue increased by approximately 37.7% year-over-year to $17.8 million from $12.9 million[8]. - Total revenue for the six months ended June 30, 2023, was $104.5 million, a decrease of 11.4% compared to $117.9 million in the same period of 2022[10]. - IoT PaaS revenue decreased by 16.4% to $74.7 million from $89.4 million in the same period of 2022, with a DBNER of 58%[10]. - SaaS and other revenue increased by 37.7% to $17.8 million from $12.9 million in the same period of 2022[10]. - The company reported a revenue of RMB 1.2 billion for the six months ended June 30, 2023, representing a year-over-year increase of 15%[173]. Profitability and Loss - The overall gross margin rose to 45.6%, an increase of 3.5 percentage points year-over-year from 42.1%[8]. - The net profit margin was negative 42.7%, an improvement of 34.4 percentage points year-over-year from negative 77.1%[8]. - Operating loss narrowed to $63.7 million for the six months ended June 30, 2023, compared to $94.9 million in the same period of 2022[14]. - Net loss for the six months ended June 30, 2023, was $44.6 million, a reduction of 50.9% from $90.8 million in the same period of 2022[15]. - The company achieved a significant improvement in non-GAAP net loss, recording a profit of $1.5 million in Q2 2023, marking the first quarter of breakeven on a non-GAAP basis[15]. - The company reported a total comprehensive loss of $42,851,000 for the six months ended June 30, 2023, compared to a loss of $31,517,000 in the same period of 2022[158]. Cash Flow and Liquidity - The net cash used in operating activities was $11.4 million, a decrease of approximately 80.0% year-over-year from $57.0 million[8]. - Cash used in operating activities was approximately $11.4 million for the six months ended June 30, 2023, down from $57.0 million in the same period of 2022[18]. - Cash and cash equivalents, along with short-term investments, totaled $942.3 million as of June 30, 2023, sufficient to meet liquidity and operational needs[17]. - As of June 30, 2023, the company had cash and cash equivalents totaling $942.3 million, slightly down from $954.3 million as of December 31, 2022[19]. - The company’s cash flow from investing activities for the six months ended June 30, 2023, was a net outflow of $22,335, compared to a net outflow of $254,789 in the same period of 2022[83]. Research and Development - Research and development expenses decreased by 35.7% to $54.5 million from $84.8 million in the same period of 2022, with a reduction in the number of salaried R&D personnel by 30.3%[12]. - Research and development expenses for the six months ended June 30, 2023, were $54,525,000, down from $84,809,000 in the same period of 2022, representing a 35.6% reduction[78]. - Investment in R&D for new technologies increased by 30%, focusing on smart home solutions and AI integration[174]. Customer Metrics - As of June 30, 2023, the number of IoT PaaS customers was approximately 2,900, down from 3,800 as of June 30, 2022[9]. - The number of registered IoT devices and software developers exceeded 846,000, a growth of 19.6% from over 708,000 developers as of December 31, 2022[9]. - The number of high-quality IoT PaaS customers contributing over $100,000 in revenue was 251, down from 267 in the previous year[9]. - Customer retention rates improved to 85%, up from 80% in the previous quarter, reflecting better user engagement strategies[172]. Corporate Governance - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2023, except for the separation of roles between the Chairman and CEO, which is currently held by Mr. Wang[32]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the reporting period and found no discrepancies with the accounting policies adopted by the company[37]. - The company has established a Remuneration Committee to review and approve the remuneration policies for directors and senior management, ensuring alignment with corporate objectives[38]. - The company has established a corporate governance committee to ensure compliance with the listing rules and protect shareholder interests[40]. Shareholder Information - As of June 30, 2023, the company has issued 505,393,393 Class A ordinary shares and 70,400,000 Class B ordinary shares[43]. - Mr. Wang holds 75,200,000 Class A ordinary shares, representing approximately 14.88% of the total[42]. - New Enterprise Associates holds 21.71% of Class A ordinary shares with 109,744,738 shares[48]. - The company has authorized a share repurchase plan allowing for the repurchase of up to $200 million of American Depositary Shares within a 12-month period ending August 30, 2022[118]. Future Outlook - The company provided guidance for the next quarter, projecting revenue between $160 million and $170 million, which would represent a growth of 7% to 13%[172]. - The company plans to invest $10 million in marketing to support the launch of new products and increase brand awareness[171]. - The company aims to launch three new products in Q4 2023, which are anticipated to contribute an additional RMB 300 million in revenue[173]. - The company is exploring partnerships with international brands to enhance its global footprint and diversify its product range[174].

Revenue Performance - Total revenue for the six months ended June 30, 2023, was $104.5 million, a decrease of approximately 11.4% compared to $117.9 million for the same period in 2022[3] - IoT PaaS revenue was $74.7 million, down approximately 16.4% from $89.4 million in the same period of 2022, primarily due to cautious procurement decisions by customers[6] - SaaS and other revenue increased by approximately 37.7% to $17.8 million, compared to $12.9 million for the same period in 2022[3] Profitability Metrics - Overall gross margin increased to 45.6%, up 3.5 percentage points from 42.1% in the same period of 2022[3] - Operating loss margin was negative 61.0%, an improvement of 19.5 percentage points from negative 80.5% in the same period of 2022[4] - Net profit margin was negative 42.7%, an improvement of 34.4 percentage points from negative 77.1% in the same period of 2022[4] Customer and Developer Metrics - As of June 30, 2023, the total number of registered IoT developers exceeded 846,000, a growth of 19.6% from over 708,000 developers as of December 31, 2022[4] - The number of IoT PaaS customers was approximately 2,900, down from 3,800 in the same period of 2022[4] - The company's high-quality IoT PaaS customers contributed approximately 81.1% of IoT PaaS revenue for the six months ended June 30, 2023[14] Financial Position - Cash, cash equivalents, and short-term investments totaled $942.3 million as of June 30, 2023, compared to $954.3 million as of December 31, 2022[4] - The company reported a cash and cash equivalents balance of $942.3 million as of June 30, 2023, sufficient to meet its working capital and operational needs[13] - The company has no interest-bearing bank loans or other borrowings as of June 30, 2023, resulting in a debt-to-equity ratio of zero[19] Operating Expenses - Operating expenses for the six months ended June 30, 2023, were $111.4 million, a decrease of 22.9% compared to $144.5 million for the same period in 2022[8] - Research and development expenses for the six months ended June 30, 2023, were $54.5 million, down 35.7% from $84.8 million in the same period of 2022, primarily due to strategic streamlining of the R&D team[8] Loss and Cash Flow - The net loss for the six months ended June 30, 2023, was $44.6 million, a reduction of 50.9% compared to $90.8 million for the same period in 2022[11] - Cash used in operating activities for the six months ended June 30, 2023, was $11,387,000, significantly improved from $56,973,000 in 2022[45] - The company achieved a significant improvement in non-GAAP net loss, reporting $2.2 million for the six months ended June 30, 2023, compared to $56.0 million in the same period of 2022, marking a 96.0% reduction[11] Strategic Focus and Governance - The company aims to enhance its product and service offerings, expand its key customer base, and invest in innovation and new opportunities to diversify revenue sources[16] - The company has complied with all provisions of the corporate governance code as of June 30, 2023, except for the separation of the roles of Chairman and CEO, which are held by the same individual[25] - The company aims to seek strategic partnerships, investments, and acquisitions to implement its long-term growth strategy, allocating 15% of the net proceeds (approximately HKD 10.5 million) for this purpose[31] Shareholder Information - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2023[32] - The company repurchased approximately 0.7 million Class A ordinary shares and American Depositary Shares for a total consideration of approximately $1.2 million during the six months ended June 30, 2023[29] Assets and Liabilities - As of June 30, 2023, total assets amounted to $1,039,338,000, a decrease from $1,056,139,000 as of December 31, 2022[39] - Total current assets were $1,012,089,000 as of June 30, 2023, compared to $1,023,366,000 as of December 31, 2022, reflecting a slight decline[39] - Total liabilities decreased from $93,972,000 as of December 31, 2022, to $87,116,000 as of June 30, 2023[41] Tax and Regulatory Matters - The company maintained a 15% preferential tax rate for its foreign-invested enterprise in China, valid until December 31, 2024[51] - The effective tax rate for the six months ended June 30, 2023, was -5.0%, compared to -0.3% for the same period in 2022[56] Forward-Looking Statements - Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ significantly from those projected[36]

Financial Performance - Total revenue for Q2 2023 was $57.0 million, a decrease of approximately 8.9% year-over-year (Q2 2022: $62.5 million) [6] - IoT Platform as a Service (PaaS) revenue was $41.1 million, down about 13.5% year-over-year (Q2 2022: $47.6 million) [6] - Software as a Service (SaaS) and other revenue increased by approximately 30.2% year-over-year to $9.4 million (Q2 2022: $7.2 million) [6] - In Q2 2023, total revenue decreased by 8.9% to $57.0 million from $62.5 million in Q2 2022, primarily due to declines in IoT PaaS and smart device distribution revenues [9] - IoT PaaS revenue fell by 13.5% to $41.1 million, with a DBNER of 58%, impacted by cautious customer purchasing decisions and inventory pressures in the non-essential consumer electronics sector [9] - SaaS and other revenues increased by 30.2% to $9.4 million, reflecting the company's focus on providing valuable value-added services and software products [9] - Revenue for the three months ended June 30, 2023, was $57,004 thousand, a decrease of 8.1% compared to $62,547 thousand for the same period in 2022 [25] Profitability Metrics - Overall gross margin rose to 46.7%, an increase of 3.9 percentage points year-over-year (Q2 2022: 42.8%) [6] - Operating profit margin improved to -55.1%, up 8.0 percentage points year-over-year (Q2 2022: -63.1%) [6] - Net profit margin was -41.3%, an increase of 16.0 percentage points year-over-year (Q2 2022: -57.3%) [6] - The operating loss narrowed by 20.4% to $31.4 million, with a non-GAAP operating loss of $6.4 million, improving by 71.5% year-over-year [12] - Net loss decreased by 34.3% to $23.5 million, with a non-GAAP net profit of $1.5 million, marking the first quarter of breakeven under non-GAAP standards [13] - The net profit margin improved to -41.3%, up 16.0 percentage points from -57.3% in Q2 2022, while the non-GAAP net profit margin was 2.7% [13] - The adjusted operating loss for the six months ended June 30, 2023, was $10,033,000, an improvement from the adjusted operating loss of $11,416,000 for the same period in 2022, reflecting a decrease of about 12.1% [31] - The total net loss for the six months ended June 30, 2023, was $44,594,000, a decrease from $90,822,000 for the same period in 2022, marking a reduction of approximately 50.8% [31] Cash Flow and Liquidity - Cash and cash equivalents plus short-term investments totaled $942.3 million as of June 30, 2023, compared to $954.3 million as of December 31, 2022 [6] - The company generated positive operating cash flow of $7.5 million in Q2 2023, reflecting improved operational efficiency [8] - Net cash provided by operating activities for Q2 2023 was $7.5 million, a significant increase of 1,769.1% compared to $0.4 million in Q2 2022, primarily due to a substantial reduction in operating expenses [15] - Cash and cash equivalents, along with restricted cash, increased to $94,542 thousand as of June 30, 2023, from $599,213 thousand at the beginning of the period, marking a significant recovery [29] - The company reported a net cash provided by operating activities of $7,495 thousand for the three months ended June 30, 2023, compared to $401 thousand for the same period in 2022, showing a substantial increase [29] Customer and Market Insights - The number of IoT PaaS customers was approximately 2,300, down from about 2,800 in Q2 2022 [7] - The number of registered IoT devices and software developers exceeded 846,000, a growth of 19.6% from approximately 708,000 as of December 31, 2022 [7] - The net expansion rate for IoT PaaS based on revenue was 58%, down from 84% in Q2 2022 [7] - The company anticipates a gradual recovery in non-essential consumer spending in the global consumer electronics sector as global inflation eases, despite ongoing challenges [16] - The company recognizes potential challenges ahead, including shifts in consumer spending patterns, regional economic disparities, inventory management, currency fluctuations, and geopolitical uncertainties [16] Operational Efficiency - Operating expenses decreased by 12.3% to $58.1 million, with R&D expenses down 28.9% to $26.5 million due to strategic team streamlining [11] - Research and development expenses for the three months ended June 30, 2023, were $4,006 thousand, up from $3,452 thousand for the same period in 2022, indicating a focus on innovation [28] - Research and development expenses for the three months ended June 30, 2023, were $26,474,000, down from $37,221,000 in the same period of 2022, representing a decrease of approximately 29% [31] - The adjusted sales and marketing expenses for the three months ended June 30, 2023, were $22,468,000, compared to $33,769,000 for the same period in 2022, showing a reduction of about 33.5% [31] - The company is committed to continuously iterating its products and services, enhancing hardware and software capabilities, and diversifying revenue sources to adapt to changing market conditions [16] Company Overview - Tuya Inc. operates as a leading IoT cloud development platform, providing a comprehensive suite of products including PaaS and SaaS solutions [18] - The company utilizes non-GAAP financial metrics to assess business performance, which include non-GAAP operating expenses and non-GAAP net profit/loss [19] - Non-GAAP financial metrics are presented to supplement the evaluation of the company's operating performance and are not intended to replace GAAP financial data [19] - The company will hold a conference call on August 23, 2023, to discuss financial performance, with details available through their investor relations website [17] - Forward-looking statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, acknowledging inherent risks and uncertainties [20] Asset and Liability Management - As of June 30, 2023, total assets decreased to $1,039,338 thousand from $1,056,139 thousand as of December 31, 2022, representing a decline of approximately 1.6% [22][24] - Total liabilities decreased to $87,116 thousand as of June 30, 2023, down from $93,972 thousand as of December 31, 2022, a reduction of about 7.2% [22][24]

Financial Performance - Total revenue for Q1 2023 was $47.5 million, a decrease of approximately 14.2% year-over-year (Q1 2022: $55.3 million) [5] - IoT Platform as a Service (PaaS) revenue was $33.6 million, down about 19.6% year-over-year (Q1 2022: $41.8 million) [5] - Software as a Service (SaaS) and other revenue increased by approximately 47.2% to $8.5 million (Q1 2022: $5.8 million) [5] - The total revenue for Q1 2023 decreased by 14.2% to $47.5 million from $55.3 million in Q1 2022, primarily due to a decline in IoT PaaS and smart device distribution revenues [7] - IoT PaaS revenue fell by 19.6% to $33.6 million in Q1 2023, while SaaS and other revenues increased by 47.2% to $8.5 million [7] - Operating expenses for the first quarter of 2023 totaled $53,323 thousand, significantly lower than $78,302 thousand in the first quarter of 2022, marking a reduction of approximately 31.9% [27] - The company reported a net loss of $21,045 thousand for the three months ended March 31, 2023, compared to a net loss of $54,953 thousand for the same period in 2022, indicating a reduction in losses by approximately 61.7% [27] Profitability Metrics - Overall gross margin rose to 44.3%, an increase of 3.1 percentage points year-over-year (Q1 2022: 41.2%) [5] - Operating profit margin was -68.0%, an improvement of 32.3 percentage points year-over-year (Q1 2022: -100.3%) [5] - Gross profit for Q1 2023 was $21.0 million, down 7.9% from $22.8 million in Q1 2022, with a gross margin increase to 44.3% from 41.2% [8] - The net profit margin for Q1 2023 was -44.3%, an improvement of 55.0 percentage points from -99.3% in Q1 2022, while the non-GAAP net profit margin was -7.8%, up 59.6 percentage points from -67.4% [12] - Basic and diluted net loss per American Depositary Share (ADS) for Q1 2023 was $0.04, compared to $0.10 in Q1 2022; the non-GAAP figure was $0.01, down from $0.07 [13] Customer Metrics - The number of IoT PaaS customers was approximately 2,000 in Q1 2023, down from about 2,600 in Q1 2022 [5] - Total customer count was approximately 2,800 in Q1 2023, compared to about 3,900 in Q1 2022 [5] - As of March 31, 2023, the number of high-quality IoT PaaS customers decreased to 261 from 303 in Q1 2022, contributing approximately 80.2% of IoT PaaS revenue compared to 85.6% in Q1 2022 [6] - The revenue-based IoT PaaS Net Expansion Rate (DBNER) dropped to 49% in Q1 2023 from 122% in Q1 2022 [6] Cost Management - Operating costs in Q1 2023 decreased by 18.6% to $26.5 million from $32.5 million in Q1 2022, aligning with the overall revenue decline [8] - R&D expenses in Q1 2023 decreased by 41.1% to $28.1 million from $47.6 million in Q1 2022, reflecting a strategic reduction in the R&D team [10] - The CFO highlighted a reduction in total operating expenses by over 40%, demonstrating a commitment to prudent financial management [6] Cash and Investments - As of March 31, 2023, cash and cash equivalents plus short-term investments totaled $937.5 million, down from $954.3 million as of December 31, 2022 [5] - Net cash used in operating activities for Q1 2023 was $18.9 million, a decrease of 67.1% from $57.4 million in Q1 2022, attributed to significant reductions in operating expenses [15] - Cash and cash equivalents decreased to $74,815 thousand as of March 31, 2023, from $133,161 thousand at the end of 2022, a decline of about 43.8% [24] Strategic Focus - The company implemented a large customer strategy to focus on serving strategic clients more effectively [5] - The company aims to focus on high-return, efficient products and solutions to strengthen its leadership in the IoT industry moving forward [6] - The company is committed to product and service iteration, enhancing software and hardware capabilities, expanding its customer base, diversifying revenue sources, and optimizing operational efficiency [17] Market Context - The global consumer electronics industry continues to face challenges, including economic downturns, high inflation, and inventory pressures, but the company remains confident in long-term growth prospects [17] Conference Call - The management will hold a conference call on June 7, 2023, to discuss financial performance, with details available on the investor relations website [18] Company Overview - Tuya Inc. is a leading IoT cloud development platform, providing a comprehensive suite of products for businesses and developers, enabling a vibrant IoT ecosystem [19] Asset and Liability Overview - As of March 31, 2023, total assets decreased to $1,041,613 thousand from $1,056,139 thousand as of December 31, 2022, representing a decline of approximately 1.4% [24] - The company’s total liabilities decreased to $82,939 thousand as of March 31, 2023, down from $93,972 thousand as of December 31, 2022, a reduction of approximately 11.7% [26]

Financial Performance - Total revenue for the year ended December 31, 2022, was $208.2 million, a decrease of approximately 31.1% compared to $302.1 million for the year ended December 31, 2021[10]. - IoT PaaS revenue was $152.9 million, down approximately 41.5% from $261.4 million in the previous year[10]. - SaaS and other revenue increased by approximately 60.6% to $29.8 million, up from $18.6 million in the prior year[10]. - The overall gross margin for the reporting period rose to 43.0%, an increase of 0.7 percentage points from 42.3% in the previous year[10]. - The net loss under non-GAAP measures decreased by 29.4% from $109.3 million in 2021 to $77.2 million in 2022, while maintaining a gross margin of 43%[19]. - The net loss for 2022 was $146.2 million, an improvement of 16.7% compared to $175.4 million in 2021, resulting in a net margin of -70.2%[29]. - The company ended 2022 with a cash balance exceeding $950 million, with no interest-bearing debt or long-term capital commitments[17]. - The company reported a basic and diluted net loss per American Depositary Share of $0.26, compared to $0.36 in the same period of 2021[30]. Market and Product Development - The company is focused on expanding its market presence and developing new products and technologies[2]. - The company plans to focus on three main areas in 2023: IoT developer platform model, collaboration with partners, and continuous iteration of core products to enhance growth and penetration rates[18]. - The company launched the Cube smart private cloud in early 2022, enhancing its IoT PaaS product offerings to meet the needs of large enterprises[18]. - The company aims to diversify revenue sources and optimize operational efficiency despite facing challenges such as high inflation and inventory pressures in the consumer sector[20]. Corporate Governance - The company has a dedicated audit committee and governance structure to ensure compliance and oversight[4]. - The company has a strong commitment to high standards of corporate governance, which is essential for enhancing performance, transparency, and accountability[148]. - The board has adopted the principles and code provisions of the Corporate Governance Code as the basis for its governance practices[149]. - The company emphasizes the importance of corporate governance culture to safeguard shareholder interests and enhance corporate value[148]. - The board consists of nine members, including four executive directors, one non-executive director, and four independent non-executive directors[153]. Shareholder Relations - The company encourages shareholders to actively participate in its affairs and has adopted a shareholder communication policy to enhance investor relations[197]. - Shareholders can request a special general meeting if they hold at least 10% of the voting shares, and the request must specify the meeting's purpose and proposed resolutions[194]. - The company will publish announcements and other documents on the Stock Exchange and SEC websites as required by listing rules[199]. Risk Management - The company has established a risk management and internal control system to identify and manage risks associated with business operations and financial reporting[188]. - The board is responsible for evaluating the nature and extent of risks acceptable in achieving strategic objectives and ensuring effective risk management systems are in place[186]. - The company has implemented a whistleblowing policy to allow employees and third parties to report concerns regarding financial reporting and internal controls confidentially[189]. Employee and Director Information - The company had a total of 1,835 employees, with a gender ratio of approximately 2.3 males for every female employee[176]. - The company has established service contracts with executive directors, with a term of three years or until the third annual general meeting post-listing[91]. - Independent non-executive directors receive an annual director's fee of $50,000, while one director receives $75,000[94]. Share Repurchase and Equity Incentive Plans - The company repurchased approximately 25.8 million shares for a total consideration of about $112.8 million as of December 31, 2022[10]. - The company announced a new $50 million share repurchase plan on November 9, 2022, and repurchased approximately 2.8 million ADS for a total consideration of about $4.2 million during the reporting period[128]. - The 2015 equity incentive plan aims to attract and retain top talent by providing additional incentives to selected employees, directors, and consultants[116]. Compliance and Regulatory Matters - The company has adhered to relevant laws and regulations impacting its operations, as disclosed in the annual report[50]. - The company is subject to foreign investment restrictions in the value-added telecommunications services sector, which affects its ability to hold equity in Hangzhou Tuya Technology directly[55]. - The company has received approval from the Hong Kong Stock Exchange to exempt strict compliance with certain announcement requirements under the Listing Rules regarding the cloud services and technology services framework agreement[54].

Revenue Performance - Total revenue for Q3 2022 was $45.0 million, a decrease of approximately 47.4% year-over-year (Q3 2021: $85.6 million) [6] - IoT Platform as a Service (PaaS) revenue was $30.9 million, down about 57.4% year-over-year (Q3 2021: $72.6 million) [6] - Software as a Service (SaaS) and other revenue increased by approximately 60.2% year-over-year to $8.9 million (Q3 2021: $5.6 million) [6] - Total revenue for Q3 2022 was $45.0 million, a decrease of 47.4% compared to $85.6 million in Q3 2021, primarily due to a decline in IoT PaaS and smart device distribution revenues [9] - IoT PaaS revenue for Q3 2022 was $30.9 million, down 57.4% from $72.6 million in Q3 2021, with a DBNER of 63% over the past 12 months [9] - SaaS and other revenue increased by 60.2% to $8.9 million in Q3 2022, compared to $5.6 million in Q3 2021, maintaining strong growth momentum [9] Profitability and Margins - The overall gross margin for the quarter rose to 43.6%, an increase of 1.0 percentage point year-over-year (Q3 2021: 42.6%) [6] - Gross profit for Q3 2022 was $19.6 million, a decrease of 46.1% from $36.4 million in Q3 2021, with a gross margin of 43.6%, up from 42.6% in the prior year [12] - The company reported a negative operating margin of 89.8%, a decline of 32.3 percentage points year-over-year (Q3 2021: negative 57.5%) [6] - Operating loss narrowed by 17.9% to $40.4 million in Q3 2022, compared to $49.2 million in Q3 2021, with a non-GAAP operating loss of $23.7 million [14] - Net loss for Q3 2022 was $32.6 million, down from $47.9 million in Q3 2021, with a non-GAAP net loss of $15.9 million [15] - Operating loss for Q3 2022 was $40,414K, with an operating margin of -89.8%, compared to an operating loss of $49,209K and an operating margin of -57.5% in Q3 2021 [34] - Net loss for Q3 2022 was $32,623K, with a net margin of -72.5%, compared to a net loss of $47,917K and a net margin of -56.0% in Q3 2021 [34] Customer and Market Insights - The number of IoT PaaS customers was approximately 2,700, down from about 3,000 in Q3 2021 [7] - The number of registered IoT devices and software developers exceeded 647,000, a growth of 26.9% compared to approximately 510,000 developers as of December 31, 2021 [7] - The company’s high-quality IoT PaaS customers contributed approximately 79.8% of PaaS revenue, down from 89.2% in Q3 2021 [7] - The company remains optimistic about the long-term growth prospects of the IoT industry, anticipating continued increases in global IoT penetration rates [8] - The company remains confident in long-term industry growth prospects and aims to enhance software and embedded hardware capabilities [20] - The company plans to expand its customer base and enhance its product and service offerings in the IoT sector [20] Financial Position and Cash Flow - Cash and cash equivalents, along with short-term investments, totaled $945.9 million as of September 30, 2022, compared to $951.5 million as of June 30, 2022 [6] - Cash and cash equivalents totaled approximately $946 million as of September 30, 2022, reflecting a commitment to reduce cash consumption during downturns [17] - Net cash used in operating activities for Q3 2022 was $13.5 million, representing 30.1% of total revenue, an improvement from $46.1 million or 53.8% in Q3 2021 [18] - The company reported a net cash used in operating activities of $13,543 for the three months ended September 30, 2022, compared to $46,067 for the same period in 2021 [33] Expenses and Cost Management - Operating expenses for Q3 2022 were $60.1 million, down 29.9% from $85.6 million in Q3 2021, with R&D expenses decreasing by 36.3% to $32.3 million [13] - Research and development expenses for the three months ended September 30, 2022, were $32,341, down from $50,736 in the same period of 2021, reflecting a decrease of about 36% [31] - The company reported a significant decrease in general and administrative expenses adjusted for stock-based compensation from $6,650K in Q3 2021 to $4,281K in Q3 2022, a reduction of 36% [34] - Sales and marketing expenses adjusted for stock-based compensation decreased from $19,704K in Q3 2021 to $12,406K in Q3 2022, a reduction of 37% [34] Balance Sheet and Liabilities - As of September 30, 2022, total assets decreased to $1,069.8 million from $1,248.2 million as of December 31, 2021, reflecting a decline of approximately 14.3% [28] - Current liabilities decreased to $78.0 million as of September 30, 2022, down from $109.1 million as of December 31, 2021, representing a reduction of about 28.4% [28] - The company reported a total liability of $92.3 million as of September 30, 2022, down from $134.5 million as of December 31, 2021, indicating a decrease of approximately 31.4% [28] - The company’s non-current liabilities decreased to $14.2 million as of September 30, 2022, from $25.4 million as of December 31, 2021, a decline of about 44.0% [28] Future Outlook and Challenges - The company anticipates challenges in global consumer discretionary spending and economic conditions in Q4 2022, including high inflation and inventory backlogs [20] - The company is committed to diversifying revenue sources and optimizing operational efficiency despite market challenges [20] - The company will hold a conference call on November 9, 2022, to discuss financial performance [21]

Financial Performance - Total revenue for the six months ended June 30, 2022, was $117.9 million, a decrease of approximately 16.7% year-over-year from $141.5 million[14]. - IoT Platform as a Service (PaaS) revenue was $89.4 million, down about 29.5% year-over-year from $126.7 million[14]. - Software as a Service (SaaS) and other revenue increased by approximately 127.6% year-over-year to $12.9 million from $5.7 million[14]. - Overall gross margin for the six months ended June 30, 2022, rose to 42.1%, an increase of 0.4 percentage points from 41.7% in the same period last year[14]. - The net operating profit margin for the six months ended June 30, 2022, was negative 80.5%, a decline of 22.0 percentage points from negative 58.5% in the same period last year[14]. - The operating loss for the six months ended June 30, 2022, was $94.9 million, compared to an operating loss of $82.8 million in the same period of 2021, with an operating margin of negative 80.5%[21]. - Net loss for the six months ended June 30, 2022, was $90.8 million, compared to a net loss of $78.7 million in the same period of 2021, with a net margin of negative 77.1%[22]. - The company reported a net loss of $90.8 million for the six months ended June 30, 2022, compared to a net loss of $78.7 million for the same period in 2021, with a cumulative loss of $458.7 million as of June 30, 2022[26]. - The company reported a total cash flow of $(365,363) thousand for the six months ended June 30, 2022, compared to an increase of $926,082 thousand for the same period in 2021[38]. - The company reported a pre-tax loss of $90,520 thousand for the six months ended June 30, 2022, compared to a pre-tax loss of $78,395 thousand for the same period in 2021, representing an increase of approximately 15%[146]. Customer and Market Growth - The number of IoT PaaS customers increased to approximately 3,800, up from 3,300 in the same period last year[15]. - The number of registered IoT devices and software developers exceeded 629,000, a growth of 23.3% from approximately 510,000 as of December 31, 2021[15]. - The company achieved over 100% year-on-year growth in value-added services products such as "OEM APP" and "voice skill generation" in the second quarter[36]. - The company anticipates challenges in the second half of 2022 due to economic downturns, high global inflation, and inventory backlogs among manufacturers and retailers[40]. - Despite challenges, the company remains confident in the long-term growth prospects of the industry and aims to enhance product and service iterations, expand customer base, and diversify revenue sources[40]. Shareholder Actions and Capital Management - The company repurchased approximately $55.0 million of shares in the form of American Depositary Shares, representing about 27.5% of the $200 million authorized under the repurchase plan announced on August 30, 2021[14]. - The company completed its dual primary listing on the Hong Kong Stock Exchange on July 5, 2022, issuing 7,300,000 Class A ordinary shares[16]. - The net proceeds from the global offering were approximately HKD 70.0 million, which will be used as disclosed in the prospectus[16]. - The company has not utilized the net proceeds from the global offering as of the report date[74]. - The company plans to seek strategic partnerships, investments, and acquisitions, allocating 15% of the net proceeds for this purpose over the next five years[74]. Research and Development - R&D expenses increased by 9.6% to $84.8 million for the six months ended June 30, 2022, compared to $77.4 million in the same period of 2021, due to strategic restructuring[20]. - The company’s research and development efforts are focused on enhancing product offerings and technological advancements[188]. - The company emphasizes the use of non-GAAP financial metrics to assess operational performance, which may not reflect all expenses impacting operations[79]. Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code as per the Listing Rules, except for the separation of the roles of Chairman and CEO, which is held by Mr. Wang[46]. - The Audit Committee has reviewed the unaudited consolidated interim financial information for the six months ended June 30, 2022, and found no disagreements with the accounting policies adopted by the company[52]. - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, each with clear written terms of reference[49]. - The company’s governance structure includes various committees such as the audit committee and the remuneration committee to ensure compliance and oversight[188]. Financial Position and Assets - Cash and cash equivalents, along with short-term investments, totaled $951.5 million as of June 30, 2022, deemed sufficient to meet liquidity and operational needs[24]. - As of June 30, 2022, cash and cash equivalents, along with short-term investments, amounted to $951.5 million, down from $1,066.1 million as of December 31, 2021[26]. - Total assets amounted to $1,101,622, a decrease of 11.7% from $1,248,150 as of December 31, 2021[85]. - Total liabilities decreased to $108,084, down 19.6% from $134,489 as of December 31, 2021[85]. - The company’s total liabilities related to cloud-based connectivity and IoT services decreased from $2,669 million in 2021 to $1,985 million in 2022, reflecting a decrease of approximately 25.6%[122]. Future Outlook - The company provided a positive outlook for the future, indicating plans for continued market expansion and product development[190]. - Future earnings guidance suggests a continued upward trend in revenue growth[190]. - The company is committed to maintaining compliance with regulatory requirements and corporate governance standards[189].