Why Tuya’s Platform Pivot Paid Off in Q3 With Higher Margins and Profit

Core Insights - Tuya Inc. reported Q3 results with total revenue of $82.5 million, marking a 1.1% year-over-year increase and the ninth consecutive quarter of revenue growth [1] - The company achieved a gross margin of 48.3% and a GAAP net profit of $15.0 million, a significant turnaround from a net loss in the same quarter last year [2] - Management attributed the positive results to cost discipline and increased demand for its Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) offerings [3] Financial Performance - Total revenue for Q3 was $82.5 million, up 1.1% year-over-year [1] - Gross margin improved to 48.3%, while operating expenses decreased by 34.1% to $36 million [2] - GAAP net profit reached $15.0 million, with a net margin of 18.2%, up 23.6 percentage points year-over-year [2] Revenue Breakdown - PaaS revenue grew by 2.4% to $59.2 million, while SaaS and other software revenue increased by 15.4% to $11.5 million [3] - Revenue from smart solutions, which is hardware-centric, experienced a decline [3] Strategic Focus - Over 93% of devices shipped in Q3 were AI-enabled, indicating a strong integration of AI within Tuya's ecosystem [4] - Tuya provides a global IoT development platform, focusing on PaaS, SaaS, and tools for managing smart devices across various categories [4]