Tuya Reports Third Quarter 2024 Unaudited Financial Results

Core Viewpoint - Tuya Inc. reported strong financial performance in Q3 2024, with significant year-over-year revenue growth across all business segments, driven by increased demand for IoT solutions and effective customer strategies [2][6][8]. Financial Highlights - Total revenue for Q3 2024 was US$81.6 million, a 33.6% increase from US$61.1 million in Q3 2023 [2][7]. - IoT PaaS revenue reached US$57.9 million, up 26.4% year-over-year [2][8]. - Smart solution revenue surged by 102.9% to US$13.8 million [2][9]. - Overall gross margin was 46.0%, slightly down from 46.7% in the previous year [2][11]. - Non-GAAP operating margin improved to 9.1%, up 14.8 percentage points from negative 5.7% in Q3 2023 [2][15]. - Net cash generated from operating activities was US$23.9 million, compared to US$16.1 million in Q3 2023 [2][21]. Customer and Market Insights - The number of IoT PaaS customers increased to approximately 2,200, up from 2,100 in Q3 2023 [3]. - The Dollar-based net expansion rate (DBNER) for IoT PaaS was 124%, significantly higher than 78% in the previous year [3][8]. - The registered IoT device and software developers exceeded 1.26 million, reflecting a 26.9% increase from the end of 2023 [3]. Operating Expenses and Profitability - Operating expenses rose to US$54.6 million, primarily due to increased share-based compensation [13]. - Loss from operations narrowed to US$17.1 million, an improvement from US$18.5 million in Q3 2023 [14]. - The company reported a net loss of US$4.4 million, compared to a net loss of US$4.9 million in the same period last year [16]. Cash Position - As of September 30, 2024, total cash and cash equivalents were US$1,023.9 million, up from US$984.3 million at the end of 2023 [2][20]. Business Outlook - The company anticipates continued growth driven by effective customer and product strategies, alongside the integration of emerging technologies like AI [22][23].