TUYA(US:TUYA)2021-08-18 18:16Financial Data and Key Metrics Changes - Total revenues grew by 118% year-over-year to $84.7 million [5] - IoT PaaS revenue increased by 153.9% to $76.9 million, while SaaS revenue rose by 175% to $3.4 million [22][24] - Gross profit increased by 203.9% to $35.7 million, with gross margin improving to 42.2% from 30.3% year-over-year [24] - Non-GAAP operating margin was negative 31.3%, narrowing from negative 35.7% in the same period of 2020 [29] Business Line Data and Key Metrics Changes - IoT PaaS business achieved over 160% year-over-year growth, while SaaS business also saw significant growth [5] - The number of premium customers grew to 285, up from 216 in the previous quarter [7] - The number of IoT PaaS customers increased by nearly 113% year-over-year, reaching over 700 new customers [8] Market Data and Key Metrics Changes - North America contributed about 30% of revenue, Europe about one-third, with strong growth observed in Latin America, particularly Mexico, which saw a fourfold increase in revenue [39] - Revenue contribution from lighting and electrical products dropped to around 56-57%, while appliance products contributed over 15% [40] Company Strategy and Development Direction - The company is focused on leveraging its IoT platform to help customers navigate challenges such as semiconductor shortages [6] - Continued investment in R&D is critical for growth, with R&D personnel increasing by approximately 120% year-over-year [26][21] - The company aims to expand its SaaS business and has established partnerships with leading real estate and hotel groups [48] Management's Comments on Operating Environment and Future Outlook - Management noted macro headwinds impacting the industry but expressed confidence in the company's growth strategy [5] - For Q3 2021, the company expects total revenues to be in the range of $83 million to $86 million, reflecting current market conditions [32] - Management remains optimistic about recovery in Q4, particularly for e-commerce customers affected by recent challenges [37] Other Important Information - The company passed security certifications from IOXT Alliance, enhancing its compliance capabilities [20] - Employee count increased to over 3,500, with R&D staff making up over 70% [21] Q&A Session Summary Question: Could management give more color on the MCU chipset replacement plan? - Management stated that all major product categories are eligible for the MCU chipset replacement plan, which aims to help customers overcome semiconductor shortages [34] Question: What is the impact of Amazon or other e-commerce stores? - Management indicated that the majority of customers sell IoT products through offline channels, estimating that 80% of Tuya IoT devices were sold offline, with limited impact on e-commerce customers [36] Question: What is the revenue mix by product category and region in Q2? - Management reported that North America contributed about 30% and Europe about one-third of revenue, with strong growth in Latin America [39] Question: Which SaaS business categories are growing faster? - Management noted that appliance and sensor security products grew more than three times, with entertainment and energy conservation categories showing even higher growth rates [44]