Core Viewpoint - Tuya Inc. achieved significant financial milestones in 2024, including quarterly and full-year profitability on both GAAP and non-GAAP bases, driven by strong revenue growth across all segments and improved operational efficiency [5][21][30]. Financial Highlights Fourth Quarter 2024 - Total revenue increased by 27.4% year-over-year to $82.1 million, up from $64.4 million in Q4 2023 [6][7]. - IoT platform-as-a-service (PaaS) revenue rose by 25.7% to $59.3 million [15]. - Software-as-a-service (SaaS) and others revenue grew by 21.1% to $11.5 million [15]. - Smart solution revenue surged by 45.5% to $11.3 million [15]. - Overall gross margin improved to 47.8%, up from 47.3% in Q4 2023 [9]. - Non-GAAP operating margin reached 10.3%, a significant improvement from negative 0.4% in Q4 2023 [12]. - Net profit was $9.8 million, compared to a net loss of $10.8 million in the same period last year [13][14]. Full Year 2024 - Total revenue for the year was $298.6 million, reflecting a year-over-year growth of approximately 29.8% [21]. - IoT PaaS revenue increased by 29.4% to $217.1 million [26]. - SaaS and others revenue rose by 10.6% to $39.6 million [26]. - Smart solution revenue increased by 58.3% to $42.0 million [26]. - Gross margin for the year improved to 47.4%, up from 46.4% in 2023 [23]. - The company reported a net profit of $5.0 million for the year, marking its first fiscal year of net profitability on a GAAP basis [30]. Operational Efficiency - Operating expenses decreased by 11.0% to $189.1 million for the year, reflecting the company's focus on cost management [25]. - Research and development expenses were $95.0 million, down 7.1% from the previous year [27]. - Sales and marketing expenses decreased by 8.3% to $37.1 million [27]. - General and administrative expenses fell by 15.4% to $68.3 million [27]. Cash Flow and Liquidity - Net cash generated from operating activities was $80.4 million for the year, up 120.5% from $36.4 million in 2023 [35]. - As of December 31, 2024, total cash and cash equivalents were $1,016.7 million, compared to $984.3 million at the end of 2023 [34]. Dividend Declaration - The Board declared a dividend of $0.0608 per ordinary share, amounting to approximately $37 million, payable on or around April 9, 2025 [38][40].

Core Insights - The company reported a net loss of $10,816 thousand for the three months ended December 31, 2023, compared to a profit of $9,785 thousand for the same period in 2024, indicating a significant turnaround in financial performance [3] - Non-GAAP net profit for the three months ended December 31, 2023, was $12,555 thousand, which increased to $22,068 thousand in 2024, reflecting a strong growth trajectory [4] - The non-GAAP net margin improved from 19.5% in 2023 to 26.9% in 2024, showcasing enhanced operational efficiency [4] Financial Performance - The net margin for the three months ended December 31, 2023, was -16.8%, while it improved to 11.9% in 2024 [3] - For the year ended December 31, 2023, the company experienced a net loss of $60,315 thousand, which turned into a profit of $4,997 thousand in 2024 [3] - The weighted average number of ordinary shares used for computing non-GAAP net profit per share increased from 557,103,923 in 2023 to 587,987,654 in 2024 for basic shares [5] Shareholder Metrics - Non-GAAP net profit per share attributable to ordinary shareholders was $0.02 for basic shares in 2023, increasing to $0.04 in 2024, and for diluted shares, it remained at $0.02 in 2023 and increased to $0.04 in 2024 [7] - For the year ended December 31, 2023, the non-GAAP net profit per share was $0.04 for basic shares and $0.03 for diluted shares, which rose to $0.13 for both categories in 2024 [7]

Revenue and Profitability - Total revenue for the year ended December 31, 2024, was $298.6 million, an increase of approximately 29.8% compared to $230.0 million for the year ended December 31, 2023[5]. - IoT Platform as a Service (PaaS) revenue reached $217.1 million, up approximately 29.4% from $167.7 million in the previous year[5]. - Net profit for the year was $5.0 million, marking a significant recovery from a net loss of $60.3 million in the previous year[7]. - The net profit for the year ended December 31, 2024, was $5.0 million, compared to a net loss of $60.3 million for the year ended December 31, 2023, marking the first fiscal year of net profitability under GAAP[15]. - The adjusted net profit for the year ended December 31, 2024, was $75.3 million, a 268.5% increase from $20.4 million in 2023, indicating strong profitability under non-GAAP measures[15]. - Non-GAAP net profit for 2024 is projected at $75.308 million, with a non-GAAP net profit margin of 25.2%[98]. - The company reported a net loss attributable to common shareholders of $60.315 million for 2023, with a projected profit of $4.997 million for 2024[91]. Cash and Investments - Cash and cash equivalents, along with short-term and long-term investments, totaled $1,016.7 million, up from $984.3 million as of December 31, 2023[7]. - The net cash provided by operating activities for the year ended December 31, 2024, was $80.4 million, a 120.5% increase from $36.4 million in 2023[18]. - The company had no interest-bearing bank loans or other borrowings as of December 31, 2024, resulting in a debt-to-equity ratio of zero[25][28]. - The company made significant investments in government bonds, with total purchases amounting to approximately $156.8 million within an authorized limit of $400 million[30]. - Total cash and cash equivalents are projected to rise to $653,384,000 by the end of 2024, up from $498,688,000 at the end of 2023[68]. Customer Metrics - The number of IoT PaaS customers was approximately 3,700, down from 4,000 in the previous year, while total customers were about 5,800, down from approximately 6,100[7]. - The number of registered IoT developers exceeded 1,316,000, a growth of 32.6% from approximately 993,000 developers in the previous year[7]. - The company’s focus on strategic customers contributed to a net expansion rate (DBNER) of 122%, up from 103% in the previous year[7]. - The DBNER for IoT PaaS for the year ended December 31, 2024, was 122%, indicating revenue growth from existing customers[20]. Operating Performance - Operating profit margin improved to -15.9%, an increase of 30.1 percentage points from -46.0% in the previous year[5]. - The operating loss for the year ended December 31, 2024, was $47.6 million, a 55.0% improvement from the $105.8 million loss in the same period of 2023[14]. - The adjusted operating loss for 2023 was $(105.824) million, expected to improve to $(47.620) million in 2024[96]. Research and Development - The adjusted R&D expenses for the year ended December 31, 2024, were $80.7 million, down from $87.5 million in 2023, reflecting a 7.1% decrease[14]. - Research and development expenses are expected to decrease to $95,049,000 in 2024 from $102,277,000 in 2023, reflecting a focus on cost management[64]. Corporate Governance and Compliance - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange, with a noted exception regarding the dual role of the chairman and CEO[38]. - The audit committee reviewed the unaudited consolidated financial statements for the reporting period, with no disagreements on accounting policies[42]. - The company has confirmed compliance with the standard code for securities trading by directors for the fiscal year ending December 31, 2024[41]. Future Outlook and Strategy - The company aims to enhance its product and service offerings through the application of emerging technologies like generative AI, while also diversifying revenue sources[21]. - The company plans to allocate 30% of the proceeds to enhance IoT technology and infrastructure, amounting to approximately 21.0 million HKD[47]. - The company is committed to expanding its market presence and enhancing its product offerings through continuous innovation in AI and cloud services[54]. Shareholder Returns - The company has approved a dividend of USD 0.0608 per share, totaling approximately USD 37 million, to be funded from retained earnings[48]. - The company declared a special dividend of $0.0589 per share, totaling $33 million, to be paid in October 2024[90]. - During the reporting period, the company repurchased 223,773 American Depositary Shares for a total consideration of approximately USD 0.4 million[50]. Taxation - The effective tax rate for 2024 is expected to be 30.0%, significantly higher than the statutory rate of 25.0% due to various jurisdictional impacts[86]. - The company has accumulated tax losses of approximately $576,439, primarily from its subsidiaries in China, which will expire between 2025 and 2034[88]. - The company expects to continue benefiting from the preferential tax rate as a qualified high-tech enterprise, impacting its overall tax expenses positively[86].

Revenue Growth - Total revenue for Q4 2024 was $82.1 million, representing a year-over-year increase of approximately 27.4% compared to $64.4 million in Q4 2023[10]. - Total revenue for the fiscal year 2024 was $298.6 million, a year-over-year increase of approximately 29.8% from $230.0 million in 2023[14]. - In 2024, the company achieved total revenue of $298.6 million, a year-over-year increase of nearly 30%[16]. - Total revenue for 2024 increased by 29.8% to $298.6 million from $230.0 million in 2023, driven by growth in IoT PaaS and smart solutions revenue[29]. IoT Platform as a Service (PaaS) Performance - IoT Platform as a Service (PaaS) revenue reached $59.3 million, up about 25.7% from $47.2 million in Q4 2023[10]. - The company's IoT PaaS revenue in Q4 2024 increased by 25.7% to $59.3 million, driven by global economic recovery and strategic focus on customer needs[17]. - The company reported a significant increase in IoT PaaS revenue, which rose by 29.4% to $217.1 million for the year ended December 31, 2024[30]. - The company's DBNER (dollar-based net expansion rate) for IoT PaaS was 122% as of December 31, 2024, up from 103% in Q4 2023[16]. Profitability - Net profit for Q4 2024 was $9.8 million, compared to a net loss of $10.8 million in Q4 2023[10]. - The company achieved a net profit of $5.0 million for the year ended December 31, 2024, compared to a net loss of $60.3 million in 2023, marking its first net profit under GAAP[37]. - The net profit margin for the year ended December 31, 2024, was 1.7%, an increase of 27.9 percentage points from a net loss margin of 26.2% in 2023[37]. - The company's non-GAAP net profit for the year ended December 31, 2024, was $75.3 million, a 268.5% increase from $20.4 million in 2023[37]. Cash Flow and Financial Position - Operating cash flow for Q4 2024 was $30.2 million, slightly down from $31.8 million in Q4 2023[10]. - The company reported a total cash and cash equivalents of $1,016.7 million as of December 31, 2024, compared to $984.3 million as of December 31, 2023[10]. - The net cash balance at the end of Q4 2024 was approximately $1.017 billion, marking seven consecutive quarters of positive operating cash flow[16]. - Cash and cash equivalents, along with short-term and long-term investments, totaled $1,016.7 million as of December 31, 2024, up from $984.3 million as of December 31, 2023[39]. Operating Expenses and Margins - Gross margin for the overall business was 47.8%, an increase of 0.5 percentage points from 47.3% in Q4 2023[10]. - The company's non-GAAP operating profit margin in Q4 2024 was 10.3%, a significant improvement from a loss of 0.4% in Q4 2023[24]. - Operating costs for the year ended December 31, 2024, rose to $157.2 million, up 27.4% from $123.3 million in 2023, consistent with the revenue growth trend[30]. - Operating expenses decreased by 11.0% to $189.1 million for the year ended December 31, 2024, compared to $212.5 million in 2023[33]. Research and Development - R&D expenses for Q4 2024 were $23.7 million, remaining stable compared to $22.8 million in Q4 2023[23]. - Research and development expenses decreased by 7.1% to $95.0 million for the year ended December 31, 2024, from $102.3 million in 2023[35]. - Research and development expenses for the year ending December 31, 2023, were $102,277,000, which is projected to decrease to $95,049,000 in 2024, reflecting a reduction of about 7%[64]. Future Outlook - The company is optimistic about its business outlook, citing a stable macroeconomic environment and effective implementation of customer and product strategies, particularly leveraging AI technologies[41]. - The company plans to expand its market presence and invest in new product development to drive future growth[56]. - The company acknowledges potential challenges ahead, including shifts in consumer spending patterns and geopolitical uncertainties[41]. Dividend Information - The board approved a dividend of $0.0608 per ordinary share or ADS, totaling approximately $37 million, to be paid in cash from retained earnings[42]. - The dividend payment date for ordinary shareholders is expected around April 9, 2025, and for ADS holders around April 15, 2025[43].

Core Viewpoint - Tuya Smart is integrating its AIoT platform with advanced AI models like DeepSeek to enhance smart devices, transforming them into "active intelligence" and unlocking the potential of AI applications in various sectors, particularly in pet care [1][2]. Group 1: AI Integration and Market Potential - The integration of Tuya's AIoT platform with DeepSeek's AI capabilities is expected to significantly impact the pet care industry, driving innovations and accelerating the adoption of AI-driven solutions [3][7]. - The global pet economy is projected to grow over 45% in the next six years, with revenues expected to exceed $500 billion by 2030, indicating a substantial market opportunity for AI-driven pet products [4]. Group 2: Challenges in Current Smart Pet Products - Despite the growth in the pet economy, the market for smart pet products suffers from functional homogeneity, with many devices offering only basic monitoring features, leading to low user satisfaction in critical areas like health management and behavioral analysis [5][6]. Group 3: Transformative Innovations in Pet Care - The collaboration between Tuya and DeepSeek aims to shift from "single-device networking" to a fully interconnected ecosystem, enhancing the interaction between pets and owners through proactive care solutions [7][11]. - Future innovations include advanced AI hardware capable of detecting emotional cues in pets, such as a brainwave translation collar that interprets a pet's emotional state and provides personalized care recommendations [12][13]. Group 4: Vision for Future Pet Technology - Proposed innovations like the Dream Projector and AI Gene Feeder aim to redefine pet care by addressing emotional well-being and optimizing nutrition based on genetic profiles, respectively [14][15]. - The Odor Socializer is designed to enhance social interactions for urban pets, allowing them to engage with virtual companions and identify playmates nearby, thus enriching their lives [16]. Group 5: Industry Implications - By embedding DeepSeek's AI into the pet industry, Tuya is positioning the sector as a dynamic proving ground for AI technology, creating opportunities for developers and raising consumer expectations for intelligent pet care [17].

Core Viewpoint - Tuya Inc. is set to report its fourth quarter 2024 unaudited financial results on February 26, 2025, before market opening [1] Financial Results Announcement - The financial results will be discussed in a conference call scheduled for 08:00 A.M. Eastern Time on February 26, 2025 [2] - Participants must complete an online registration process to receive dial-in information and a unique PIN for the call [2][3] Company Overview - Tuya Inc. is a leading global cloud platform service provider focused on building a smart solutions developer ecosystem [4] - The company offers a purpose-built cloud developer platform with capabilities in cloud and generative AI, providing a full suite of services including PaaS and SaaS [4] - Tuya has activated a global developer community that includes brands, OEMs, AI agents, system integrators, and independent software vendors, promoting a smart solutions ecosystem based on principles of green and low-carbon, security, high efficiency, agility, and openness [4]

Core Insights - Tuya Smart has integrated Mistral AI's Le Chat model into its Cloud Developer Platform, marking a significant step in AI hardware innovation and commercialization in Europe [1][10] - Mistral AI's Le Chat has gained popularity in France, indicating a breakthrough for European technology in the global AI landscape [2][3] - The European AI hardware market is experiencing rapid growth, with a year-over-year increase of 217% in 2024, highlighting the demand for AI hardware solutions [7] Company Developments - Tuya Smart is committed to expanding its presence in Europe by forming partnerships with leading brands like Schneider and Danfoss, aiming to create a smart hardware ecosystem [4] - The integration of Mistral AI allows Tuya to ensure compliance with stringent European data security regulations, addressing consumer concerns about data privacy [6][10] - Tuya's Cloud Developer Platform has attracted over 1.26 million developers and supports more than 2,800 smart product categories, showcasing its extensive ecosystem [8] Industry Trends - Data security and AI hardware innovation are identified as core demands driving the European AI market [5] - The European Commission's findings indicate that 73% of consumers reject AI applications involving cross-border data transmission, emphasizing the importance of localized data solutions [6] - The integration of various global AI models into Tuya's platform provides developers with flexibility and lowers barriers to AI hardware development [9]

Core Insights - Tuya Smart has fully integrated its smart ecosystem with Google Home APIs, enhancing compatibility and user experience in smart devices [1][3][4] - The Google Home APIs, unveiled at Google I/O 2024, facilitate the development and integration of smart home devices, allowing developers to create products that work seamlessly with Google Home [2][5] - This partnership reinforces Tuya's commitment to an open and neutral ecosystem, positioning it as a leader in the smart home market [3][6] Integration Features - The integration ensures full compatibility of Google Home with all Tuya-enabled hardware, enabling users to create diverse intelligent scenarios [4] - A notable feature is the cloud-to-cloud integration, allowing users to manage multiple devices without additional network configurations, enhancing convenience [5] - Users can control Tuya-enabled devices through both the Tuya app and Google Home app, providing a unified experience [5] Strategic Implications - The partnership exemplifies the success of Tuya's open ecosystem strategy and creates new opportunities for manufacturers globally [6] - Tuya plans to continue collaborating with global partners like Google to develop innovative smart products and solutions [6]

Core Insights - Tuya Smart has partnered with Chery to create a smart cockpit and enhance the integration of automotive and home ecosystems, aiming to provide consumers with improved convenience and comfort in both travel and living spaces [1][5]. Company Overview - Chery, a leading automaker, achieved over RMB 480 billion in revenue in 2024, marking a year-over-year increase of over 50%, and sold more than 2.6 million vehicles, making it the top car exporter [2]. - As a Fortune Global 500 company, Chery is focused on expansion and innovation, particularly in the context of AIoT and the integration of smart environments [3]. Partnership Details - The partnership was formalized during Chery's Ecosystem Partner Conference, where both companies emphasized the importance of car-home connectivity [5]. - Tuya's expertise in smart home solutions will support Chery in creating an interoperable smart home system that allows seamless communication between vehicles and home devices [4][6]. Product Integration and User Experience - Tuya's product integration capabilities will enable Chery to adapt to various lifestyle scenarios, allowing drivers to control home devices via a Tuya-enabled app on their car's infotainment system [6]. - The collaboration will also extend to smart living scenarios in real estate, communities, and hospitality, enhancing the overall smart living experience [7]. Strategic Vision - Chery and Tuya aim to redefine the car-home connectivity landscape and drive the intelligent transformation of everyday scenarios, setting new standards for smart living [8].

Core Insights - Tuya Smart has launched a new smart door lock solution that integrates with Apple Wallet and supports the Matter protocol, allowing users to unlock their homes using their iPhone or Apple Watch [1][2] Product Features - The smart door lock supports multiple unlocking methods, including NFC access, palm vein recognition, password entry, and app-based unlocking, providing versatility for users [3] - Users can add their home key to Apple Wallet after initial setup, which involves putting the device into pairing mode and scanning a Matter QR code [5] Security and Privacy - The home key feature in Apple Wallet utilizes the privacy and security features of iPhone and Apple Watch, ensuring that data is encrypted and protected against tampering [2] - Apple does not have access to information regarding when and where users utilize their home key [2] Strategic Positioning - Tuya is committed to advancing the global implementation of Matter-enabled smart devices, with over 200 Matter certifications across five major categories, showcasing its capabilities in the smart home sector [4]