Core Insights - Tuya Smart (02391) reported total revenue of $74.7 million for the three months ending March 31, 2025, representing a year-on-year increase of approximately 21.1% [1] - The overall gross margin was 48.5%, an increase of 0.7 percentage points year-on-year, with net profit reaching $11 million, compared to a net loss of $3.5 million in the first quarter of 2024 [1][2] - The growth in revenue was primarily driven by increases in IoT PaaS revenue and smart solution revenue [1] Revenue and Customer Metrics - The number of IoT PaaS customers remained stable at approximately 2,000, while the total number of customers was around 2,800, down from 3,000 in the first quarter of 2024 [1] - The company focused on a large customer strategy, which allowed it to concentrate on serving strategic clients [1] - Over the last 12 months, there were 287 high-quality IoT PaaS customers, up from 269 in the first quarter of 2024, contributing approximately 88.7% of IoT PaaS revenue in the first quarter of 2025, compared to 85.1% in the previous year [1] Developer and Device Growth - As of March 31, 2025, the number of registered IoT devices and software developers exceeded 1.417 million, a growth of 7.7% from approximately 1.316 million developers as of December 31, 2024 [1] Financial Performance and Strategy - The CEO highlighted the company's ability to achieve net profit growth during the traditional off-season, attributing this to sustained revenue growth and a unique business model that leverages operational efficiency [2] - The CFO noted that the net profit of $11 million for the first quarter of 2025 was approximately double that of the entire year of 2024, with a net profit margin reaching a new high of 14.8% [2] - The company has maintained positive operating cash flow for eight consecutive quarters and has a strong net cash position, enabling continued investment in AI innovation and Smart Solution business expansion [2]

Core Insights - Tuya Smart-W (02391.HK) reported a total revenue of $74.7 million for Q1 2025, representing a year-over-year increase of approximately 21.1% [1] - The revenue breakdown includes $53.7 million from PaaS, up about 17.9%; $10 million from SaaS and other services, up about 15.5%; and $11 million from smart solutions, up approximately 47.1% [1] - The company achieved a net profit of $11 million, a significant improvement from a net loss of $3.5 million in Q1 2024, and a non-GAAP net profit of $19.3 million, up about 57.2% year-over-year [1] Financial Performance - The comprehensive gross margin for Q1 2025 was maintained at 48.5% [1] - The net profit margin reached a new high of 14.8%, with net profit for the quarter being approximately double that of the entire year of 2024 [1] - The company has achieved positive operating cash flow for eight consecutive quarters and maintained a strong net cash position at the end of the period [1] Strategic Focus - The CEO emphasized the company's commitment to building differentiated AIoT capabilities to empower global developers amidst global macroeconomic uncertainties and rapid AI advancements [1] - The CFO highlighted the importance of cost management and expense structure optimization in driving financial performance and enabling continued investment in AI innovation and Smart Solution business expansion [1]

Financial Performance - Company reported total revenue of US$74.7 million for Q1 2025, a 21.1% increase from US$61.7 million in Q1 2024, driven by growth in IoT PaaS and smart solution revenues [6][5] - IoT PaaS revenue reached US$53.7 million, up 17.9% year-over-year, while smart solution revenue surged 47.1% to US$11.0 million [6][7] - Gross margin improved to 48.5%, up from 47.8% in the same period last year, with IoT PaaS gross margin increasing to 48.4% [9][16] Profitability Metrics - Company achieved a GAAP net profit of US$11.0 million, compared to a net loss of US$3.5 million in Q1 2024, with a net margin of 14.8% [13][14] - Non-GAAP net profit was US$19.3 million, reflecting a 57.2% increase year-over-year, with a non-GAAP net margin of 25.8% [14][19] - Operating margin improved significantly to negative 1.9%, up 24.6 percentage points from negative 26.5% in Q1 2024 [12] Cost Management - Operating expenses decreased by 17.8% to US$37.7 million, contributing to improved profitability [11] - Research and development expenses were reduced by 2.8% to US$22.8 million, while sales and marketing expenses fell by 7.1% to US$8.3 million [17] Cash Flow and Liquidity - Company generated US$9.4 million in net cash from operating activities, down from US$14.5 million in Q1 2024 [19] - Total cash and cash equivalents, including short-term and long-term investments, stood at US$1,023.7 million as of March 31, 2025, slightly up from US$1,016.7 million at the end of 2024 [18] Business Outlook - Company remains optimistic about long-term growth despite macroeconomic uncertainties and industry challenges, focusing on AI and smart technology integration [20][21] - Plans to enhance product offerings and expand customer base while optimizing operational efficiency [21]

Market Overview - US stock index futures showed mixed performance with Dow futures slightly up, S&P 500 futures down by 0.16%, and Nasdaq futures down by 0.66% [1] - European indices saw positive movement with Germany's DAX up by 0.61%, UK's FTSE 100 up by 0.60%, France's CAC40 up by 0.56%, and the Euro Stoxx 50 up by 0.50% [2][3] - WTI crude oil prices fell by 0.42% to $61.88 per barrel, while Brent crude oil dropped by 0.46% to $65.24 per barrel [3][4] Federal Reserve Insights - Federal Reserve officials indicated that interest rate cuts may not occur before September due to uncertain economic outlook, with current expectations for a rate cut in June being less than 10% [5] - The market anticipates two rate cuts by the end of the year, each by 25 basis points, which is lower than previous expectations of four cuts [5] Banking Sector Developments - Moody's downgraded the deposit ratings of major US banks, including Bank of America and JPMorgan Chase, citing reduced government support following the downgrade of the US credit rating [6] - The long-term deposit ratings for these banks were lowered to Aa2, which is Moody's third-highest rating [6] Currency and Economic Outlook - Deutsche Bank warned of potential depreciation risks for the US dollar, suggesting that upcoming budget negotiations will significantly impact the dollar's position [7] - Wells Fargo advised investors to reduce exposure to emerging market stocks in favor of US equities, predicting a stronger dollar and cautioning against overly optimistic sentiment towards emerging markets [7] Company-Specific News - Vodafone reported a decline in revenue in its key German market, forecasting minimal growth for the upcoming fiscal year and announcing a new €2 billion share buyback plan [8] - Yalla Technology's Q1 revenue grew by 6.5% year-over-year to $83.9 million, but paid user numbers fell by 8% [9] - Vipshop's Q1 net revenue decreased by 4.7% to RMB 26.3 billion (approximately $3.6 billion), with active customer numbers down by 4.2% [10] - Home Depot's sales fell short of expectations, indicating weakened consumer confidence, with comparable sales down by 0.3% [10] - Cathie Wood's ARK Invest made significant purchases of Taiwan Semiconductor Manufacturing Company (TSMC) shares, marking a shift in strategy amid easing trade tensions [11] Upcoming Economic Events - Key economic data releases include the US Redbook retail sales year-on-year and API crude oil inventory changes [12][14] - Notable speeches from Federal Reserve officials are scheduled, which may provide further insights into monetary policy [13][14]

Core Viewpoint - Tuya Inc. is set to hold its annual general meeting (AGM) on June 19, 2025, to discuss and vote on proposed resolutions, with full support from the board of directors [1][2]. Company Information - Tuya Inc. is a leading global AI cloud platform service provider focused on building an AIoT developer ecosystem [4]. - The company offers a comprehensive suite of services, including Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), and smart solutions for developers in various industries [4]. - Tuya has established a global developer community that includes brands, OEMs, AI agents, system integrators, and independent software vendors, promoting a smart solutions ecosystem that emphasizes green and low-carbon principles, security, efficiency, agility, and openness [4]. Financial Reporting - The company has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, which includes audited financial statements [3].

Core Viewpoint - Tuya Inc. has received an upgrade in its ESG rating from MSCI, moving from 'A' to 'AA', highlighting its commitment to sustainability and responsible business practices [1][2][3] Company Overview - Tuya Inc. is a leading global AI cloud platform service provider focused on building an AIoT developer ecosystem [4] - The company offers a comprehensive suite of services, including Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), and smart solutions for various industries [4] ESG Rating Improvement - The upgrade to 'AA' reflects Tuya's strong performance in data privacy, security, governance enhancements, and energy efficiency contributions through smart technology [2][3] - MSCI's ESG Ratings serve as a benchmark for investors interested in sustainable business practices, with ratings ranging from AAA to CCC [3] Commitment to Sustainability - The company emphasizes that sustainability is integral to its operations and innovation, aiming to deliver long-term value for stakeholders [3] - Tuya is dedicated to supporting global efforts towards a greener and more secure future through smart technology [3]

SANTA CLARA, Calif., May 13, 2025 /PRNewswire/ -- Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading AI cloud platform service provider, today announced that it will report its first quarter 2025 unaudited financial results after the market closes on Tuesday, May 20, 2025.Tuya's management will hold a conference call at 08:30 P.M. Eastern Time on Tuesday, May 20, 2025 (08:30 A.M. Hong Kong Time on Wednesday, May 21, 2025) to discuss the financial results. In advance of the confer ...

Core Insights - The rise of AI large models is driving a new trend in the integration of AI and hardware, leading to the emergence of phenomenon-level AI hardware products [1][2] - Tuya Smart is leveraging cutting-edge AI technologies to assist B-end customers in rapidly responding to market changes, enhancing the deployment of AI hardware in daily life [1][2] - The transition from traditional AI to AI large models is expected to significantly lower the barriers for users to adopt smart hardware, facilitating widespread adoption [2][3] Company Developments - Tuya Smart launched four major products at its global developer conference, including the TuyaOpen open-source development framework and the HEDV edge computing platform, aimed at capturing new opportunities in the AI Agent era [1][2] - The company has integrated several global mainstream large language models into its AI Agent development platform, enabling developers to create popular AI products such as smart rings and AI dolls [2][3] - Tuya Smart has established a comprehensive cooperation agreement with Kid King to advance the development of AI companion smart hardware and related technologies [2][3] Industry Trends - The integration of AI large models into smart hardware is enhancing device capabilities, allowing for multi-modal interactions and expert-level efficiency optimization [3][4] - The overall penetration rate of AI Agent applications in the smart hardware industry is still below 5%, indicating that the industry is in the early stages of exploring these applications [3][4] - The market is expected to see a surge in new AI hardware categories by 2025, following validation or invalidation by the market, which will lead to the emergence of scalable new AI hardware products [5]

Financial Performance - The Group achieved its first-ever net profit of US$5.0 million for the year ended December 31, 2024, reversing a net loss of US$60.3 million for the year ended December 31, 2023[31]. - Revenue for the year ended December 31, 2024, was US$298,617 thousand, a 30% increase from US$229,990 thousand in 2023[80]. - Gross profit for 2024 was US$141,430 thousand, reflecting a gross margin improvement from 46.4% in 2023 to 47.3% in 2024[80]. - The net profit for 2024 was US$4,997 thousand, a significant turnaround from a net loss of US$60,315 thousand in 2023[80]. - Non-GAAP net profit for 2024 was US$75,308, up from US$20,438 in 2023, reflecting improved operational efficiency[119]. - The non-GAAP operating margin improved from -10.9% in 2023 to 7.6% in 2024, indicating a turnaround in operational performance[115]. Cash Flow and Liquidity - Net cash generated from operating activities was US$80.4 million for the year ended December 31, 2024, compared to US$36.4 million for the year ended December 31, 2023[31]. - As of December 31, 2024, the balance of cash and cash equivalents was US$1,016.7 million, an increase from US$984.3 million as of December 31, 2023[33]. - The Group did not have any interest-bearing bank and other borrowings as of December 31, 2024[34]. - The Group's gearing ratio was nil as of December 31, 2024, as it had no borrowings[36]. - Cash and cash equivalents at the end of 2023 were $498,688 thousand, expected to increase to $653,384 thousand by the end of 2024, marking a rise of about 31%[85]. Expenses and Cost Management - Research and development expenses decreased to US$95,049 thousand in 2024, down from US$102,277 thousand in 2023, indicating a focus on cost management[80]. - Share-based compensation expenses included in general and administrative expenses were $45,036 thousand for 2023, expected to rise to $48,305 thousand in 2024[83]. - The Company recorded litigation costs of US$2,300 in 2024, which were not present in 2023[115]. Assets and Liabilities - As of December 31, 2024, total assets increased to US$1,103,780 thousand, up from US$1,066,400 thousand as of December 31, 2023, representing a growth of approximately 3.5%[74]. - Total current liabilities increased to US$94,337 thousand as of December 31, 2024, compared to US$87,534 thousand in 2023, marking an increase of approximately 7.5%[74]. - Total accounts receivable decreased from US$9,214 in 2023 to US$7,592 in 2024, with an increase in the allowance for credit losses from US$3,367 to US$4,456[108]. - Total accounts payable increased significantly from US$11,577 in 2023 to US$19,051 in 2024[111]. Shareholder Returns - The Board declared a dividend of US$0.0608 per ordinary share, totaling approximately US$37 million, payable on or around April 9, 2025[57]. - The Company declared a special dividend of US$0.0589 per ordinary share, totaling US$33 million, payable in October 2024[106]. Strategic Initiatives and Market Position - The Group plans to utilize the remaining unutilized net proceeds of approximately HK$34.7 million over the next three years for various strategic initiatives[56]. - The company activated a vibrant global developer community through its AI cloud platform, enhancing its market position in the AIoT ecosystem[66]. Legal Matters - The company continues to face ongoing litigation related to a securities class action lawsuit initiated in August 2022[64].

Group 1 - Tuya Inc. filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the SEC on April 24, 2025 [1] - The annual report includes complete audited financial statements and is available on the company's investor relations website and the SEC's website [1] - Tuya Inc. will provide a hard copy of the annual report free of charge to shareholders upon written request [1] Group 2 - Tuya Inc. released its Environmental, Social and Governance (ESG) Report to showcase its ESG strategies, accomplishments, and progress towards sustainability goals [2] - The ESG report can be accessed on the company's investor relations website [2] Group 3 - Tuya Inc. is a leading AI cloud platform service provider focused on building an AIoT developer ecosystem [3] - The company offers a purpose-built AI cloud platform with cloud and generative AI capabilities, providing Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), and smart solutions [3] - 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 [3]