Tuya Reports First Quarter 2024 Unaudited Financial Results

Core Viewpoint - Tuya Inc. reported strong financial results for Q1 2024, with significant year-over-year growth in revenue and improvements in profit margins, driven by the recovery in consumer electronics demand and strategic advancements in their IoT platform services [2][5][6]. Financial Performance - Total revenue for Q1 2024 was US$61.7 million, a 29.9% increase from US$47.5 million in Q1 2023 [2][7]. - IoT platform-as-a-service (PaaS) revenue reached US$45.6 million, up 35.7% from US$33.6 million in the same period last year [2][8]. - Software-as-a-service (SaaS) and others revenue was US$8.6 million, a slight increase of 1.8% year-over-year [2][8]. - Smart solution revenue grew by 37.3% to US$7.5 million from US$5.4 million in Q1 2023 [2][8]. - Overall gross margin improved to 47.8%, up 3.5 percentage points from 44.3% in Q1 2023 [2][10]. Profitability Metrics - Operating margin was negative 26.5%, an improvement of 41.5 percentage points from negative 68.0% in Q1 2023 [2][13]. - Non-GAAP operating margin improved to negative 0.9%, up 30.6 percentage points from negative 31.5% year-over-year [2][13]. - Net loss narrowed by 83.2% to US$3.5 million from US$21.0 million in the same period last year [2][14]. - Non-GAAP net profit was US$12.3 million, compared to a non-GAAP net loss of US$3.7 million in Q1 2023 [2][14]. Customer Metrics - IoT PaaS customers remained stable at approximately 2,000, while total customers increased to approximately 3,000 from 2,800 in Q1 2023 [3]. - Premium IoT PaaS customers increased to 269, contributing approximately 85.1% of IoT PaaS revenue [3]. - The dollar-based net expansion rate (DBNER) for IoT PaaS was 116%, significantly up from 49% in the previous year [3][8]. Cash Flow and Liquidity - Net cash generated from operating activities was US$14.5 million, a turnaround from net cash used of US$18.9 million in Q1 2023 [2][18]. - Total cash and cash equivalents, along with short-term and long-term investments, amounted to US$998.8 million as of March 31, 2024, up from US$984.3 million at the end of 2023 [2][17]. Strategic Outlook - The company aims to leverage technology innovation, particularly generative AI, to enhance its product offerings and customer engagement [6][19]. - Tuya is focused on expanding its customer base, optimizing operational efficiency, and diversifying revenue streams to sustain long-term growth [6][19].