Financial Performance - Total revenue for Q1 2023 was $47.5 million, a decrease of approximately 14.2% year-over-year (Q1 2022: $55.3 million) [5] - IoT Platform as a Service (PaaS) revenue was $33.6 million, down about 19.6% year-over-year (Q1 2022: $41.8 million) [5] - Software as a Service (SaaS) and other revenue increased by approximately 47.2% to $8.5 million (Q1 2022: $5.8 million) [5] - The total revenue for Q1 2023 decreased by 14.2% to $47.5 million from $55.3 million in Q1 2022, primarily due to a decline in IoT PaaS and smart device distribution revenues [7] - IoT PaaS revenue fell by 19.6% to $33.6 million in Q1 2023, while SaaS and other revenues increased by 47.2% to $8.5 million [7] - Operating expenses for the first quarter of 2023 totaled $53,323 thousand, significantly lower than $78,302 thousand in the first quarter of 2022, marking a reduction of approximately 31.9% [27] - The company reported a net loss of $21,045 thousand for the three months ended March 31, 2023, compared to a net loss of $54,953 thousand for the same period in 2022, indicating a reduction in losses by approximately 61.7% [27] Profitability Metrics - Overall gross margin rose to 44.3%, an increase of 3.1 percentage points year-over-year (Q1 2022: 41.2%) [5] - Operating profit margin was -68.0%, an improvement of 32.3 percentage points year-over-year (Q1 2022: -100.3%) [5] - Gross profit for Q1 2023 was $21.0 million, down 7.9% from $22.8 million in Q1 2022, with a gross margin increase to 44.3% from 41.2% [8] - The net profit margin for Q1 2023 was -44.3%, an improvement of 55.0 percentage points from -99.3% in Q1 2022, while the non-GAAP net profit margin was -7.8%, up 59.6 percentage points from -67.4% [12] - Basic and diluted net loss per American Depositary Share (ADS) for Q1 2023 was $0.04, compared to $0.10 in Q1 2022; the non-GAAP figure was $0.01, down from $0.07 [13] Customer Metrics - The number of IoT PaaS customers was approximately 2,000 in Q1 2023, down from about 2,600 in Q1 2022 [5] - Total customer count was approximately 2,800 in Q1 2023, compared to about 3,900 in Q1 2022 [5] - As of March 31, 2023, the number of high-quality IoT PaaS customers decreased to 261 from 303 in Q1 2022, contributing approximately 80.2% of IoT PaaS revenue compared to 85.6% in Q1 2022 [6] - The revenue-based IoT PaaS Net Expansion Rate (DBNER) dropped to 49% in Q1 2023 from 122% in Q1 2022 [6] Cost Management - Operating costs in Q1 2023 decreased by 18.6% to $26.5 million from $32.5 million in Q1 2022, aligning with the overall revenue decline [8] - R&D expenses in Q1 2023 decreased by 41.1% to $28.1 million from $47.6 million in Q1 2022, reflecting a strategic reduction in the R&D team [10] - The CFO highlighted a reduction in total operating expenses by over 40%, demonstrating a commitment to prudent financial management [6] Cash and Investments - As of March 31, 2023, cash and cash equivalents plus short-term investments totaled $937.5 million, down from $954.3 million as of December 31, 2022 [5] - Net cash used in operating activities for Q1 2023 was $18.9 million, a decrease of 67.1% from $57.4 million in Q1 2022, attributed to significant reductions in operating expenses [15] - Cash and cash equivalents decreased to $74,815 thousand as of March 31, 2023, from $133,161 thousand at the end of 2022, a decline of about 43.8% [24] Strategic Focus - The company implemented a large customer strategy to focus on serving strategic clients more effectively [5] - The company aims to focus on high-return, efficient products and solutions to strengthen its leadership in the IoT industry moving forward [6] - The company is committed to product and service iteration, enhancing software and hardware capabilities, expanding its customer base, diversifying revenue sources, and optimizing operational efficiency [17] Market Context - The global consumer electronics industry continues to face challenges, including economic downturns, high inflation, and inventory pressures, but the company remains confident in long-term growth prospects [17] Conference Call - The management will hold a conference call on June 7, 2023, to discuss financial performance, with details available on the investor relations website [18] Company Overview - Tuya Inc. is a leading IoT cloud development platform, providing a comprehensive suite of products for businesses and developers, enabling a vibrant IoT ecosystem [19] Asset and Liability Overview - As of March 31, 2023, total assets decreased to $1,041,613 thousand from $1,056,139 thousand as of December 31, 2022, representing a decline of approximately 1.4% [24] - The company’s total liabilities decreased to $82,939 thousand as of March 31, 2023, down from $93,972 thousand as of December 31, 2022, a reduction of approximately 11.7% [26]
涂鸦智能-W(02391) - 2023 Q1 - 季度业绩