Financial Performance - Total revenue for the six months ended June 30, 2022 was US$117.9 million, down approximately 16.7% year over year from US$141.5 million[7]. - IoT platform-as-a-service (PaaS) revenue decreased by 29.5% to US$89.4 million from US$126.7 million in the same period of 2021[13]. - SaaS and other revenue increased by 127.6% to US$12.9 million from US$5.7 million in the same period of 2021[14]. - Overall gross margin increased to 42.1%, up 0.4 percentage points year over year[7]. - Operating margin for the six months ended June 30, 2022 was negative 80.5%, down 22.0 percentage points year over year[7]. - Net loss for the six months ended June 30, 2022, was US$90.8 million, compared to US$78.7 million in the same period of 2021, with a non-GAAP net loss of US$56.0 million[22]. - Loss from operations was US$94.9 million for the six months ended June 30, 2022, compared to US$82.8 million in the same period of 2021, with a non-GAAP loss from operations of US$60.1 million[21]. - Non-GAAP loss from operations narrowed by 15.9% to US$22.3 million in the second quarter of 2022 from US$26.5 million in the same period of 2021[47]. - Non-GAAP operating margin improved to negative 35.6% in the second quarter of 2022, indicating early success of efficiency-centric initiatives[47]. Cash and Investments - Total cash, cash equivalents, and short-term investments were US$951.5 million as of June 30, 2022, down from US$1.07 billion as of December 31, 2021[7]. - Cash and cash equivalents at the end of the period were $599,213 thousand, down from $964,576 thousand at the beginning of the period[133]. - Cash flows from investing activities resulted in a net cash outflow of $254,789 thousand in 2022, compared to $152,734 thousand in 2021, highlighting increased investment activity[131]. - The Group's cash and cash equivalents, along with short-term investments, are deemed sufficient to meet anticipated working capital requirements for at least the next 12 months[138]. - As of June 30, 2022, total short-term investments amounted to US$352,300, a significant increase from US$102,134 as of December 31, 2021, representing a growth of approximately 245%[149]. Customer and Market Metrics - IoT PaaS customers increased to approximately 3,800 from 3,300 year over year[8]. - Dollar-based net expansion rate (DBNER) of IoT PaaS decreased to 84% from 211% year over year[8]. - Registered IoT device and software developers increased by 23.3% to over 629,000 as of June 30, 2022[9]. - Smart device distribution revenue increased by 70.3% to US$15.6 million from US$9.1 million in the same period of 2021[15]. - Total revenue from the To-Business ("2B") SaaS and others business reached US$12.9 million in the first half of 2022, up 127.6% year-over-year[41]. Expenses and Losses - Research and development expenses for the six months ended June 30, 2022, were US$84.8 million, up 9.6% from US$77.4 million in the same period of 2021[19]. - Sales and marketing expenses decreased by 15.3% to US$30.3 million for the six months ended June 30, 2022, compared to US$35.8 million in the same period of 2021[19]. - Non-GAAP loss from operations for the six months ended June 30, 2022 was $60,116 thousand, compared to $51,002 thousand for the same period in 2021, indicating an increase in losses of approximately 17.8%[112]. - Non-GAAP net loss for the six months ended June 30, 2022 was $55,996 thousand, compared to $46,870 thousand in 2021, reflecting an increase of about 19.5%[112]. Governance and Shareholder Information - The weighted voting rights structure allows certain beneficiaries to control the company despite not holding a majority economic interest, with Mr. Wang and Mr. Chen controlling approximately 74.19% of effective voting rights[55]. - The company has established four committees: Audit, Compensation, Nomination, and Corporate Governance, to oversee various aspects of its affairs[63]. - The company has complied with the Corporate Governance Code since its listing on July 5, 2022, with specific deviations noted regarding the roles of chairman and CEO[59]. - As of June 30, 2022, the total number of Class A Ordinary Shares issued was 499,146,560 and Class B Ordinary Shares was 79,400,000[76]. - Mr. Wang holds 68,100,000 Class A Ordinary Shares, representing approximately 13.64% of the total Class A shares[76]. Equity Incentive Plan - The 2015 Equity Incentive Plan was amended on June 15, 2022, to comply with the Listing Rules, aiming to attract and retain key personnel[88]. - The plan allows for the issuance of options, restricted shares, and RSUs, with the possibility of distributing ADSs instead of Class A Ordinary Shares[89]. - The remaining life of the 2015 Equity Incentive Plan is approximately 2 years and 3 months[93]. - The maximum exercisable term for options granted is ten years from the date of grant[92]. - The number of outstanding options under the 2015 Equity Incentive Plan is 59,063,975 Class A Ordinary Shares, which is about 10.21% of the issued Shares, with 29,976,225 options vested and 29,087,750 unvested[94]. Operational Challenges - The company anticipates challenges in the consumer discretionary industry in H2 2022, including economic decline, high inflation, and supply chain issues, but remains confident in long-term growth prospects[49]. - The COVID-19 pandemic has impacted selling and operating activities in key cities in China during H1 2022, but operations have resumed as of August 29, 2022[50]. Other Financial Metrics - Total current assets decreased from $1,191,268 thousand as of December 31, 2021 to $1,054,329 thousand as of June 30, 2022, representing a decline of approximately 11.5%[120]. - Total liabilities decreased from $134,489 thousand as of December 31, 2021 to $108,084 thousand as of June 30, 2022, a decrease of approximately 19.6%[120]. - Shareholders' equity decreased from $1,113,661 thousand as of December 31, 2021 to $993,538 thousand as of June 30, 2022, representing a decline of about 10.8%[123]. - The Group's total property, equipment, and software, net, decreased to US$5,301 as of June 30, 2022, from US$6,805 as of December 31, 2021, reflecting a decline of about 22%[156]. - The Group recorded inventory write-downs of US$1,695 for the six months ended June 30, 2022, compared to US$603 for the same period in 2021, showing an increase of about 181%[152].

Tuya, Inc. (NYSE:TUYA) Q2 2022 Results Conference Call August 29, 2022 08:00 PM ET Company Participants Reg Chai - Capital Market Associate Director Jerry Wang - Founder, CEO and Director Jessie Liu - Senior VP, CFO and Director Conference Call Participants Liu Yang - Morgan Stanley John Wang - Goldman Banks Presentation Operator Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Tuya Inc. Second Quarter 2022 Earnings Conference Call. [Operator Instructions] I wi ...

Tuya, Inc. (NYSE:TUYA) Q1 2022 Earnings Conference Call June 14, 2022 8:00 PM ET Company Participants Reg Chai - Capital Market Associate Director Jerry Wang - Founder, CEO and Director Jessie Liu - Senior VP, CFO and Director Conference Call Participants Yang Liu - Morgan Stanley Operator Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Tuya Incorporated First Quarter 2022 Earnings Conference Call. [Operator Instructions] I'll now turn the call over to the fir ...

Tuya Inc. (NYSE:TUYA) Q4 2021 Earnings Conference Call March 14, 2022 8:00 PM ET Corporate Participants Reg Chai - Associate Director, IR Jerry Wang - Chief Executive Officer Jessie Liu - Chief Financial Officer Conference Call Participants Yang Liu - Morgan Stanley Liping Zhao - CICC Operator Good morning and good evening ladies and gentlemen. Thank you for standing by and welcome to Tuya Inc.'s Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. We will be ...

Financial Data and Key Metrics Changes - In Q3 2021, Tuya achieved total revenues of approximately $85.6 million, reflecting a year-over-year growth of roughly 45% [5][18] - The gross margin increased slightly to 42.6% from 34.4% year-over-year, indicating improved efficiency and economies of scale [22] - Non-GAAP net loss was $31.2 million, with a non-GAAP net margin of negative 36.5%, down from negative 17% in the same period of 2020 [27] Business Line Data and Key Metrics Changes - IoT PaaS revenue reached $72.6 million, achieving year-over-year growth of 37.4% [18] - SaaS and other segments saw revenue increase to $5.6 million, representing a year-over-year growth of 214.2% [20] - The number of premium IoT PaaS customers grew to 306, up 87.7% from the previous year [19] Market Data and Key Metrics Changes - The dollar-based net expansion rate for IoT PaaS was 179%, maintaining a strong performance for eight consecutive quarters [6][20] - The company acquired over 1,000 new IoT PaaS customers, growing customer accounts by 46% year-over-year [7] Company Strategy and Development Direction - Tuya aims to strengthen its competitive barriers in cross-device connectivity and expand its product reach through outdoor product lines and IoT device capabilities [9] - The company is focusing on creating an open PaaS platform to enable developers to create personalized and differentiated products [10] - Tuya is launching private cloud solutions to meet customer demands for data privacy and control, which is expected to open a new market [15][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as chip shortages and shipping difficulties but expressed confidence in long-term growth prospects [5][14] - The company expects total revenue for Q4 2021 to be in the range of $72 million to $77 million, reflecting cautious optimism amid macroeconomic uncertainties [30] Other Important Information - Tuya's cash, cash equivalents, and short-term investments increased to $1,179.6 million, providing sufficient liquidity for operations [29] - The company repurchased approximately 2.8 million ADS for about $28.6 million, demonstrating confidence in its long-term growth [29] Q&A Session Summary Question: What are the development plans for the SaaS business? - Management highlighted strong growth in the SaaS segment and plans to expand into various business scenarios beyond home applications [32][33] Question: What is the outlook for domestic revenue? - Management indicated a balanced distribution of business across global regions and plans to increase the proportion of revenue generated in China [41][42] Question: What is the financial contribution from the newly released IoT PaaS on private cloud? - Management clarified that the private cloud PaaS is in early development and aims to open a new market rather than replace existing offerings [46] Question: What is the outlook for next year's demand from premium customers? - Management noted that customers are cautious due to macroeconomic factors but expressed interest in expanding new product categories next year [48]

Financial Data and Key Metrics Changes - Total revenues grew by 118% year-over-year to $84.7 million [5] - IoT PaaS revenue increased by 153.9% to $76.9 million, while SaaS revenue rose by 175% to $3.4 million [22][24] - Gross profit increased by 203.9% to $35.7 million, with gross margin improving to 42.2% from 30.3% year-over-year [24] - Non-GAAP operating margin was negative 31.3%, narrowing from negative 35.7% in the same period of 2020 [29] Business Line Data and Key Metrics Changes - IoT PaaS business achieved over 160% year-over-year growth, while SaaS business also saw significant growth [5] - The number of premium customers grew to 285, up from 216 in the previous quarter [7] - The number of IoT PaaS customers increased by nearly 113% year-over-year, reaching over 700 new customers [8] Market Data and Key Metrics Changes - North America contributed about 30% of revenue, Europe about one-third, with strong growth observed in Latin America, particularly Mexico, which saw a fourfold increase in revenue [39] - Revenue contribution from lighting and electrical products dropped to around 56-57%, while appliance products contributed over 15% [40] Company Strategy and Development Direction - The company is focused on leveraging its IoT platform to help customers navigate challenges such as semiconductor shortages [6] - Continued investment in R&D is critical for growth, with R&D personnel increasing by approximately 120% year-over-year [26][21] - The company aims to expand its SaaS business and has established partnerships with leading real estate and hotel groups [48] Management's Comments on Operating Environment and Future Outlook - Management noted macro headwinds impacting the industry but expressed confidence in the company's growth strategy [5] - For Q3 2021, the company expects total revenues to be in the range of $83 million to $86 million, reflecting current market conditions [32] - Management remains optimistic about recovery in Q4, particularly for e-commerce customers affected by recent challenges [37] Other Important Information - The company passed security certifications from IOXT Alliance, enhancing its compliance capabilities [20] - Employee count increased to over 3,500, with R&D staff making up over 70% [21] Q&A Session Summary Question: Could management give more color on the MCU chipset replacement plan? - Management stated that all major product categories are eligible for the MCU chipset replacement plan, which aims to help customers overcome semiconductor shortages [34] Question: What is the impact of Amazon or other e-commerce stores? - Management indicated that the majority of customers sell IoT products through offline channels, estimating that 80% of Tuya IoT devices were sold offline, with limited impact on e-commerce customers [36] Question: What is the revenue mix by product category and region in Q2? - Management reported that North America contributed about 30% and Europe about one-third of revenue, with strong growth in Latin America [39] Question: Which SaaS business categories are growing faster? - Management noted that appliance and sensor security products grew more than three times, with entertainment and energy conservation categories showing even higher growth rates [44]

Financial Data and Key Metrics Changes - Total revenue for Q1 2021 reached $60.9 million, representing a 200% year-over-year growth [6][24] - Gross margin improved by 10.8 percentage points year-over-year to 41.1% [6][26] - Gross profit increased by 307.4% to $23.4 million [26] - Non-GAAP net loss narrowed to $23.8 million, improving from a loss of $99.4 million in the same period of 2020 [30] Business Line Data and Key Metrics Changes - IoT PaaS revenue grew 227% year-over-year to $49.8 million [24][26] - SaaS revenue increased by 224% to $2.3 million [25][26] - Revenue from IoT PaaS empowering security and sensor products grew more than 300% [25] - Revenue from IoT PaaS empowering sports and wellness products grew approximately 700% [25] Market Data and Key Metrics Changes - Over 39 million smart devices were deployed with IoT PaaS services during the quarter [7] - The number of registered smart device developers on the platform increased from approximately 260,000 to over 320,000 [8] - The worldwide IoT PaaS total addressable market is forecasted to grow at a CAGR of 18.9% to $171.7 billion by 2024 [8] Company Strategy and Development Direction - The company aims to expand its services into new product categories and geographic regions [10][15] - Focus on R&D investment to enhance technology and product innovation [35] - Plans to build a new office in Shanghai with a team of 500 to focus on business expansion in the auto and mobility scenario [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth driven by strong global demand for IoT products and services [6] - The company expects total revenues for Q2 2021 to be in the range of $78 million to $81 million, reflecting a 19% to 23% increase compared to Street consensus estimates [32] - Management highlighted the importance of maintaining stable margins despite challenges in the chip industry [41] Other Important Information - The number of premium customers contributing over $100,000 in revenue grew to 216 from 188 year-over-year [10][27] - The company has obtained four cloud security certifications, enhancing its credibility in the market [22] Q&A Session Summary Question: SaaS solutions expansion plan for this year - Management emphasized the development of an open platform for various industries and expects strong growth in SaaS business [34] Question: Focus on R&D investment - R&D will focus on developer platforms, business expansion in auto and mobility, and enhancing user experience [35][36] Question: Synergy between Philips and Tuya - Cooperation with Philips is expected to accelerate through Hillhouse's support, enhancing IoT product development [37] Question: Revenue split among different categories - Revenue contribution from lighting and electrical segments is now less than 60%, with home appliances and security contributing more than 10% each [40] Question: IoT PaaS pricing strategy amid chip shortages - The company plans to pass chip price increases downstream while maintaining stable margins [41] Question: Investment focus of the new IoT fund - The IoT fund aims to support entrepreneurs in the IoT industry and strategically grow the sector [42]