Tuya Inc. Sponsored ADR (TUYA) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate ...

Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company has shown a significant turnaround in profitability, with adjusted net income reaching $33.1 million in H1 2024, compared to a net loss of $40 million [3][4] - Revenue growth is driven by IoT PaaS and smart solutions, with IoT PaaS revenue growing 33.7% YoY to $99.9 million and smart solutions revenue growing 41.1% YoY to $16.8 million in H1 2024 [3] - The company achieved its first positive adjusted operating profit of $7.4 million in Q2 2024, marking a significant operational inflection point [4] - The company declared its first cash dividend of $0.0589 per ADS, totaling approximately $33 million, reflecting confidence in future growth [6] Financial Performance - H1 2024 revenue reached $135 million, a 29.1% YoY increase, with IoT PaaS contributing 74% of total revenue [3] - Gross margin improved to 47.9% in H1 2024, up 2.3 percentage points YoY, driven by IoT PaaS margin expansion to 47.1% [3] - R&D expenses decreased by 14.8% YoY to $46.5 million, with R&D expense ratio dropping to 34.44% [3] - The company expects revenue to grow to $280 million in 2024, $332 million in 2025, and $389 million in 2026, representing a CAGR of 18.4% [5][6] Business Strategy - The company is focusing on expanding its high-quality customer base, non-consumer electronics sectors, and developer platform, with 1.192 million developers on its platform as of Q2 2024, a 40.8% YoY increase [4] - The company is leveraging generative AI to enhance its IoT offerings, with applications in smart pet cameras, bird feeders, and lighting systems [6] - The company has empowered 1 million AIoT device SKUs as of Q2 2024, reflecting its leadership in the IoT platform space [4] Valuation - The report values the company at a 2024 dynamic PS ratio of 5-6x, with a fair value range of $2.44-$2.93 per share [6] - The company's PS ratio is significantly lower than peers, with a 2024E PS of 3x compared to the peer average of 16x [7] Industry Position - The company is positioned as a leader in the neutral AIoT platform space, with a strong focus on IoT PaaS and smart solutions [1][3] - The company's strategic focus on high-margin IoT PaaS and smart solutions is expected to drive long-term revenue and profit growth [3][4]

Investors might want to bet on Tuya Inc. Sponsored ADR (TUYA) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the ...

Financial Data and Key Metrics Changes - In Q2 2024, total revenue reached $73.3 million, reflecting a year-over-year growth of 28.6%, with a non-GAAP operational profit margin of 10% achieved for the first time [22][19][30] - Non-GAAP net profit reached $20.8 million, setting a new quarterly record, while operating cash flow exceeded $10 million [30] - The company maintained a stable gross margin of 71% for SaaS and other services, with IoT PaaS gross margin at 47.6%, showing a year-over-year improvement of around 3 percentage points [26][24] Business Line Data and Key Metrics Changes - IoT PaaS revenue was $54.3 million, up 32% year-over-year, with home appliances showing the highest growth at approximately 65% [22][23] - Smart solutions segment recorded revenue of $9.4 million, increasing by about 44.2% year-over-year, driven by strong demand for outdoor and energy-saving device solutions [25] - SaaS and other sectors generated $9.6 million in revenue, remaining stable due to adjustments in revenue structuring [26] Market Data and Key Metrics Changes - Europe remains the largest market, accounting for about one-third of total revenue, while Asia Pacific and Latin America showed accelerated demand growth, with Latin America's contribution increasing to nearly 10-15% [23] - The Asia Pacific region accounted for around one-third of total revenue demand, indicating a balanced regional revenue structure [23] Company Strategy and Development Direction - The company aims to enhance long-term revenue growth and profit margins while focusing on smart technology integration, particularly through GenAI [5][10] - Tuya's strategy includes leveraging its established ecosystem to win with volume and pricing, enhancing customer stickiness through smart solutions [25][26] - The company plans to continue investing in devices and edge AI to improve product competitiveness and user experience [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustaining year-over-year growth despite a high base from the previous year, citing a stable macroeconomic environment and strong demand in emerging markets [33][38] - The company is positioned to capitalize on opportunities in the smart technology landscape, with a focus on customer needs across various industries [36][38] Other Important Information - A special cash dividend of approximately $33 million was announced, reflecting the company's non-GAAP net profit for the first half of 2024 [19][45] - The current CFO will step down, with the co-founder Alex Yang set to succeed, indicating a transition in leadership [20][31] Q&A Session Summary Question: Future demand outlook and sustainability of growth - Management acknowledged the challenges of maintaining growth rates due to high bases but remained optimistic about continued year-over-year growth in core business [33][38] Question: Forward-looking operating profitability and cash dividend - Management emphasized that achieving profitability is a long-term goal, with a focus on balancing growth and profitability while maintaining cost control [41][42] - The special dividend was based on non-GAAP net profit, with plans for sustainable shareholder returns while ensuring the company can invest in growth [45] Question: Progress on GenAI and monetization strategies - Management detailed ongoing development of smart devices with GenAI capabilities, with plans for trial productions and revenue generation expected to begin next year [49][51]

Exhibit 99.1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Tuya Inc. 塗鴉智能* (A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited liability ...

Exhibit 99.1 Tuya Reports First Quarter 2024 Unaudited Financial Results SANTA CLARA, Calif., May, 20, 2024/PRNewswire/– Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading cloud platform service provider, today announced its unaudited financial results for the first quarter ended March 31, 2024. First Quarter 2024 Financial Highlights · Total revenue was US61.7 million, up approximately 29.9% year over year (1Q2023: US$47.5 million). · IoT platform-as-a-service ("PaaS") revenue w ...

SANTA CLARA, Calif., Aug. 26, 2024 /PRNewswire/ -- Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading cloud platform service provider, today announced that Ms. Yao (Jessie) Liu has tendered her resignation as a director, the Chief Financial Officer and senior vice president of Tuya, effective September 16, 2024. Ms. Liu has made this decision to devote more time to her personal endeavors.The Company is grateful for the invaluable contributions she made during her more than 5-year ...

SANTA CLARA, Calif., Aug. 26, 2024 /PRNewswire/ -- Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading cloud platform service provider, today announced that the board of directors of the Company (the "Board") has approved the declaration of a special cash dividend.Declaration of Special Dividend and Record DateOn August 26, 2024, the Board has approved the declaration and distribution of a special dividend (the "Special Dividend") of US$0.0589 per ordinary share, or US$0.0589 per ...

SANTA CLARA, Calif., Aug. 26, 2024 /PRNewswire/ -- Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading cloud platform service provider, today announced its unaudited financial results for the second quarter ended June 30, 2024 and the declaration of a special cash dividend.Second Quarter 2024 Financial HighlightsTotal revenue was US$73.3 million, up approximately 28.6% year over year (2Q2023: US$57.0 million).IoT platform-as-a-service ("PaaS") revenue was US$54.3 million, up appro ...

NEW YORK, Aug. 21, 2024 /PRNewswire/ -- Tuya Smart (NYSE: TUYA, HKEX: 2391), the leading global cloud platform service provider, has been selected for Gartner's prestigious "Hype Cycle for Smart City and Sustainability in China, 2024" for the third consecutive year. This recognition highlights the maturity and potential of smart city and sustainable development technologies, as well as their significant market impact.Eva Na, Vice President of Marketing and Strategic Cooperation, and CMO of Tuya Smart, expre ...