Financial Data and Key Metrics Changes - The total revenue for Q4 2023 was approximately $64.4 million, reflecting a year-over-year increase of 42.2% [4][18] - Non-GAAP net profit reached around $12.6 million, a quarter-over-quarter increase of about 25% [5] - The blended gross margin achieved a new high of 47.3% [5][24] - Net cash from operating activities was approximately $31.8 million, contributing to a total net cash position of about $984 million by the end of Q4 [6][28] Business Line Data and Key Metrics Changes - IoT PaaS revenue in Q4 was $47.2 million, representing a year-over-year increase of 44.6% [18] - The smart device distribution segment generated revenue of approximately $7.8 million, achieving a year-over-year growth of 64.6% [22] - SaaS and other sectors recorded revenue of $9.5 million in Q4, reflecting a 19.3% year-over-year increase [23] Market Data and Key Metrics Changes - The company observed stronger growth momentum in Southeast Asia and Latin America compared to Europe and America [31] - Inventory normalization began in Q3 2023, leading to healthy restocking activities in retail channels [34] Company Strategy and Development Direction - The company is focusing on engaging high-quality customers, enhancing product offerings, and improving cost efficiency [7] - A key account strategy has been implemented to secure and better serve large customers with long-term potential [8] - The company aims to expand into new smart domains beyond consumer electronics [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in emerging from the industry downturn, with expectations of moderate growth in global discretionary smart device spending for 2024 [31][35] - The company anticipates that the inventory level will remain healthy, with downstream enterprises optimistic about their smart business outlook for 2024 [34] Other Important Information - The company has seen a significant increase in its developer community, with approximately 993,000 registered developers by Q4 [15] - The company has established partnerships with major telecom operators and industry leaders to enhance its smart solutions [9][10] Q&A Session Summary Question: 2024 revenue growth outlook and margin expectations - Management expects moderate growth in global discretionary smart device spending, with Southeast Asia and Latin America showing stronger momentum [31][35] - The gross margin is expected to remain stable, with contributions from IoT PaaS and SaaS segments [36][38] Question: Impairment loss and balance sheet outlook - The company reported a total credit loss of around $15.5 million in 2023, primarily due to strategic investments in underperforming partners [39][40] Question: SaaS segment outlook and key customer progress - The SaaS segment is expected to maintain good momentum, with a steady increase in enterprise customers using cloud storage technology [42][44] Question: Operating expenses and headcount plans for 2024 - Operating expenses are expected to remain stable, with a focus on maintaining the current team size and moderate investments in marketing [48][49]

Financial Performance - Total revenue for Q4 2023 was US$64.4 million, representing a 42.2% increase year over year from US$45.3 million in Q4 2022[2] - Non-GAAP net profit for Q4 2023 was US$12.6 million, compared to a non-GAAP net loss of US$5.2 million in Q4 2022[17] - The net loss attributable to Tuya Inc. decreased to $10,816 thousand in Q4 2023 from $22,730 thousand in Q4 2022, reflecting a reduction in losses by approximately 52.4%[37] - Non-GAAP net profit turned positive at $12,555 million in Q4 2023, compared to a non-GAAP net loss of $5,220 million in Q4 2022[41] - Net loss decreased from $22,730 million in Q4 2022 to $10,816 million in Q4 2023, representing a decline of about 52.4%[41] Revenue Breakdown - IoT PaaS revenue increased by 44.6% year over year to US$47.2 million, up from US$32.6 million in Q4 2022[2] - Tuya Inc. reported revenue of $64,411 thousand for the three months ended December 31, 2023, representing a 42.4% increase from $45,286 thousand in the same period of 2022[35] Margins and Profitability - Overall gross margin improved to 47.3%, up 2.7 percentage points from 44.6% in Q4 2022[2] - The gross profit for the same period was $30,463 thousand, up from $20,186 thousand, indicating a gross margin improvement[35] - Non-GAAP loss from operations improved from $15,320 million in Q4 2022 to $253 million in Q4 2023, indicating a substantial reduction in operational losses[41] - Non-GAAP net margin improved significantly from -11.5% in Q4 2022 to 19.5% in Q4 2023[41] - The operating margin improved from -72.5% in Q4 2022 to -36.7% in Q4 2023, showing a positive trend in operational efficiency[41] Cash Flow and Liquidity - Net cash generated from operating activities was US$31.8 million, compared to a net cash used of US$0.1 million in Q4 2022[3] - The company reported a net cash generated from operating activities of $31,760 thousand for Q4 2023, a significant turnaround from a cash outflow of $138 thousand in Q4 2022[39] - Total cash and cash equivalents as of December 31, 2023, were US$984.3 million, up from US$952.0 million a year earlier[19] - Cash and cash equivalents increased significantly to $498,688 thousand as of December 31, 2023, compared to $133,161 thousand at the end of 2022, marking a growth of 274.5%[31] Operational Efficiency - Operating margin improved to negative 36.7%, a 35.8 percentage point improvement from negative 72.5% in Q4 2022[16] - Operating expenses for Q4 2023 were $54,087 thousand, slightly higher than $53,016 thousand in Q4 2022, with R&D expenses decreasing to $22,806 thousand from $27,792 thousand[35] - Research and development expenses decreased from $27,792 million in Q4 2022 to $22,806 million in Q4 2023, a reduction of approximately 17.9%[41] - Adjusted sales and marketing expenses slightly decreased from $9,592 million in Q4 2022 to $9,475 million in Q4 2023, a decline of about 1.2%[41] - General and administrative expenses increased significantly from $16,181 million in Q4 2022 to $23,754 million in Q4 2023, an increase of approximately 46.8%[41] Growth and Development - Registered IoT device and software developers reached approximately 993,000, a 40.3% increase from 708,000 in Q4 2022[4] - The dollar-based net expansion rate (DBNER) for IoT PaaS was 103%, significantly up from 51% in the previous year[4] - The company plans to enhance product capabilities and expand its customer base while navigating potential market challenges[22] - Tuya Inc. continues to focus on expanding its IoT cloud development platform, aiming to enhance its developer ecosystem and smart device offerings[24] Assets and Liabilities - Total assets rose to $1,066,400 thousand in 2023 from $1,056,139 thousand in 2022, showing a modest increase of 1.1%[33] - Tuya's total current liabilities increased to $87,534 thousand in 2023 from $81,282 thousand in 2022, reflecting a rise of 7.8%[31] - The company’s total shareholders' equity increased to $970,565 thousand in 2023 from $962,167 thousand in 2022, indicating a growth of 0.4%[33] Shareholder Information - Basic non-GAAP net profit per share increased from -$0.01 in Q4 2022 to $0.02 in Q4 2023, indicating a turnaround in profitability[41] - The weighted average number of diluted shares increased from 554,121,595 in Q4 2022 to 589,438,606 in Q4 2023, reflecting a growth in shareholder base[41]

Core Viewpoint - Tuya Inc. will report its fourth quarter 2023 unaudited financial results on February 27, 2024, after market close [1] Group 1: Financial Reporting - The financial results will be discussed in a conference call scheduled for 07:30 P.M. Eastern Time on February 27, 2024 [2] - Participants must complete an online registration process to join the conference call, receiving access details upon registration [2] - A live and archived webcast of the conference call will be available on the Company's investor relations website [2] Group 2: Company Overview - Tuya Inc. is a leading global IoT cloud development platform focused on building an IoT developer ecosystem [3] - The company offers a comprehensive suite of services, including Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) [3] - Tuya enables a vibrant IoT ecosystem by connecting brands, OEMs, partners, and end users through a variety of smart devices [3]

Core Insights - Tuya Smart has successfully implemented Amazon Aurora as its core database engine to manage billions of real-time online devices, ensuring high performance and low latency [3][4][9] - The collaboration between Tuya and AWS aims to enhance IoT applications' performance, stability, scalability, and security, thereby driving innovation in the industry [5][9] Company Overview - Tuya Smart is a leading technology company focused on IoT solutions, connecting a wide range of devices and improving product value for partners and customers [2] - As of September 30, 2023, Tuya's IoT Developer Platform has over 909,000 registered developers from more than 200 countries, covering various industries [3] Database Implementation - Tuya selected Amazon Aurora for its unmatched performance and global availability, addressing challenges related to high-frequency data reads and writes from billions of devices [3][4] - Aurora's architecture allows for low-latency replication and read-write separation, enhancing system throughput and enabling Tuya to manage peak traffic effectively [3][4] Security and Compliance - Amazon Aurora provides physical encryption for database products, aiding Tuya in meeting diverse regional data compliance regulations, such as GDPR [4] - Tuya is exploring innovative features of Aurora, including Enhanced Binlog and zero-ETL, to further enhance its business capabilities [4] Future Collaboration - Tuya and AWS are committed to advancing the cloud experience and fostering innovation through their partnership, with a focus on providing a secure and reliable cloud environment for developers [5][9] - Tuya aims to continue leveraging Amazon Aurora's innovations to support its global business strategy and enhance operational efficiency [8][9]

Core Insights - Tuya Smart showcased innovative smart products at CES 2024, emphasizing collaboration with global developers and a commitment to sustainable development [1][2] Product Innovations - Tuya introduced a range of smart products including a smart bird feeder, laser night light projector, and smart control panel, enhancing user experience and happiness [3][4][5][6] - The smart bird feeder features a low-energy camera that identifies over 10,000 bird species and is solar-powered for continuous use [4] - The laser night light projector improves sleep quality with customizable features for a soothing ambiance [5] - The smart control panel integrates various smart home devices for easy management, supporting multiple interaction methods [6] Additional Smart Products - Tuya unveiled a smart lawn mower, smart photo frames, and a smart food thermometer, expanding its product categories [7][8][9][10] - The smart lawn mower robot autonomously mows and navigates, while the smart photo frame allows users to share moments with loved ones [8][9] - The smart food thermometer connects via Bluetooth to track cooking progress, ensuring high-quality dishes [10] Sustainability Efforts - Tuya is focused on sustainable development with products like smart thermostats and energy-saving kits [11][12][13] - The smart thermostat can reduce electricity consumption by 10%-20% by adapting to user habits [12] - The energy-saving kit can decrease energy consumption by up to 54% per month by adjusting home appliances based on environmental data [13]

Core Insights - Tuya Smart has introduced its Home Energy Management System (HEMS) and Net Zero Solutions at CES 2024, reinforcing its position in the smart energy industry [1][8] - HEMS aims to optimize household energy management by establishing a real-time interactive relationship between power supply and consumption, thereby reducing energy costs and waste [2][4] - The Net Zero Solutions target various sectors, including office buildings and smart cities, utilizing AI and IoT for intelligent energy management [5][6] Group 1: Home Energy Management System (HEMS) - HEMS is designed to manage household energy consumption intelligently, providing visual management of energy data and minimizing usage costs [2] - The system has been implemented in Singapore, resulting in an average energy saving of 25% and up to 54% in some households [3] - At CES 2024, HEMS showcased key information such as storage rates and energy costs to assist users in making informed decisions [4] Group 2: Net Zero Solutions - Tuya's Net Zero Solutions are developed to address global climate challenges and promote sustainable development, aligning with the trend towards intelligent and green technology [5] - These solutions provide comprehensive support for developers, enabling the rapid construction of personalized Net Zero Solutions for various scenarios [6] - Implementations in construction and smart cities have shown energy consumption reductions ranging from 15% to 30% [7] Group 3: Industry Position and Future Outlook - Tuya's innovations have received widespread recognition at CES 2024, highlighting the company's technological capabilities in the energy sector [8] - The company encourages global developers to collaborate in leveraging innovative technologies to tackle energy and climate challenges [8] - Tuya remains committed to integrating AI and IoT to provide innovative solutions for the energy industry [8]

Core Insights - Tuya Smart successfully hosted the "Tuya Developer Day" at CES 2024, focusing on innovation in AI and IoT technologies, and promoting a safer and sustainable interconnected world [1][2] Group 1: Event Overview - The event aligned with CES 2024's theme "All Together, All On," emphasizing Tuya's commitment to collaborative innovation and creating a connected intelligent world [2] - Leading brands and associations such as AWS, Bluetooth SIG, and Wi-Fi Alliance participated, sharing insights on connectivity protocols and security compliance in the IoT industry [3] Group 2: Wireless Connectivity Innovations - The first panel, led by Tuya's General Manager for Asia Pacific, discussed advancements in wireless connectivity technology and its impact on the smart home market [4] - Wi-Fi Alliance's CEO highlighted Wi-Fi 7's capabilities, including multi-link operation (MLO) for improved data transmission and reliability [5] - Bluetooth SIG reported over 40,000 member companies and over 5 billion Bluetooth-enabled products shipped in 2023, showcasing the ecosystem's growth [5] - Connectivity Standards Alliance discussed the role of Matter in enhancing IoT interoperability, emphasizing its open standard advantages [5] - Thread Group's Treasurer noted the rapid development of Thread technology, focusing on its safety, reliability, and low energy consumption [5] Group 3: IoT Security Focus - The second panel, hosted by Tuya's North America Regional Director, addressed the importance of security in the IoT industry [6] - ioXt's Director of Operations emphasized the growing consumer demand for IoT security and privacy, highlighting collaboration with Tuya for product security assessment [6] - Silicon Labs' Director of IoT Software discussed their Secure Vault technology and commitment to enhancing IoT security in partnership with Tuya [6] - AWS's Security Principal explained how AWS can help manufacturers build Matter-compliant devices, providing cost-effective security solutions [6] Group 4: Future Directions - Tuya aims to foster closer collaboration with industry partners across telecommunications, connectivity protocols, consumer electronics, and product security certification [6] - The company plans to leverage AI, IoT, and cloud computing technologies to empower vertical industries and work towards achieving ESG goals [6]

Core Insights - Tuya Smart hosted "Tuya Developer Day" at CES 2024, emphasizing collaboration with global developers to create a seamlessly interconnected world under the theme "All Together, All On Smart" [1] - The event showcased Tuya's commitment to an open and neutral approach, enabling innovation and collaboration in smart solutions [1] Group 1: Event Highlights - The event welcomed representatives from various industries, including smart real estate, lighting, consumer electronics, and telecommunications, facilitating discussions on IoT and AI technologies [2] - Keynote speeches highlighted the importance of sustainable development and the role of IoT in achieving these goals, with Tuya's commitment to providing smart energy solutions covering the entire energy ecosystem [2][3] Group 2: Partnerships and Collaborations - Tuya formed partnerships with notable companies such as Möwe, Goqual, VTA+, and Grupo Construlita, focusing on multi-dimensional cooperation in products, technology, and channels [18] - The event featured discussions on innovative topics and shared case studies from leading brands, enhancing collaboration within the smart home ecosystem [3][4] Group 3: Technological Innovations - Amazon reported over 400 million smart home devices connected to Alexa, showcasing the growth of smart home technology and the ease of device setup through Tuya's collaboration [4][5] - CALEX and Grupo Construlita emphasized their commitment to sustainable growth and smart building solutions, leveraging Tuya's technology to enhance energy efficiency and productivity [6][9] Group 4: Future Directions - Tuya aims to continue fostering collaboration with global developers, promoting the application of IoT, AI, and other technologies to drive the intelligent industry forward [19] - The event attracted thousands of visitors, indicating strong market interest and opportunities for Tuya and its partners in the smart home sector [19]

Core Insights - Tuya Smart is showcasing its innovative solutions and unveiling its Four Signature Colors at CES 2024, aligning with the event's theme of global collaboration in consumer electronics [1] - The theme "All Together, All On Smart" reflects Tuya's vision for a sustainable future through smart technology, emphasizing collaboration with global developers [2][3] Group 1: Theme and Vision - "All Together" embodies the concept of universal harmony, promoting collaboration and peace, while "All On Smart" envisions a smarter coexistence through advanced technologies [2] - The theme signifies Tuya's commitment to building a more open, inclusive, and sustainable world in the context of globalization [3] Group 2: Four Signature Colors - Tuya's Four Signature Colors for 2024 are Peach Fuzz, Bermuda Green, Aurora Pink, and Little Boy Blue, each symbolizing different aspects of Tuya's commitment to its theme [4][5] - Peach Fuzz represents a shared vision, Bermuda Green symbolizes shared development, Aurora Pink signifies shared perception, and Little Boy Blue reflects shared innovation [4][5] Group 3: Solutions and Future Directions - Tuya plans to showcase a variety of solutions at CES 2024, including smart energy, smart travel, and smart HVAC, leveraging technologies like AI and IoT [6] - The theme and colors demonstrate Tuya's deep exploration of sustainable futures, providing practical paths for industry customers to adopt green and low-carbon solutions [6]

Core Viewpoint - Tuya Inc. is actively engaging with investors by participating in the Water Tower Research Fireside Chat Series at CES 2024, highlighting its position as a leading IoT cloud development platform [1] Group 1: Company Overview - Tuya Inc. is recognized as a global leader in the IoT cloud development sector, aiming to create an IoT developer ecosystem that facilitates smart technology integration [2] - The company offers a comprehensive range of services, including Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS), to support businesses and developers in the IoT space [2] - Tuya's platform enables a dynamic IoT ecosystem, connecting brands, OEMs, partners, and end users through various smart devices [2] Group 2: Investor Engagement - The management of Tuya will participate in a public event at CES 2024 on January 11, 2024, at 10:00 a.m. Eastern Time, which is accessible to all investors [1] - Interested investors can register for the event through a provided link, and a replay of the webcast will be available on the company's investor relations website [1]