Tuya Reports First Quarter 2024 Unaudited Financial Results
First Quarter 2024 Financial Highlights
-
Total revenue was US61.7 million, up approximately 29.9% year over year (1Q2023:
US$47.5 million ). -
IoT platform-as-a-service ("PaaS") revenue was
US$45.6 million , up approximately 35.7% year over year (1Q2023:US$33.6 million ). -
Software-as-a-service ("SaaS") and others revenue was
US$8.6 million , up approximately 1.8% year over year (1Q2023:US$8.5 million ). -
Smart solution revenue was
US$7.5 million , up approximately 37.3% year over year (1Q2023:US$5.4 million ). - Overall gross margin increased to 47.8%, up 3.5 percentage points year over year (1Q2023: 44.3%). Gross margin of IoT PaaS increased to 46.4%, up 5.9 percentage points year over year (1Q2023: 40.5%).
- Operating margin was negative 26.5%, improved by 41.5 percentage points year over year (1Q2023: negative 68.0%). Non-GAAP operating margin was negative 0.9%, improved by 30.6 percentage points year over year (1Q2023: negative 31.5%).
- Net margin was negative 5.7%, improved by 38.6 percentage points year over year (1Q2023: negative 44.3%). Non-GAAP net margin was 19.9%, improved by 27.7 percentage points year over year (1Q2023: negative 7.8%).
-
Net cash generated from operating activities was
US$14.5 million (1Q2023: net cash used in operating activities wasUS$18.9 million ). -
Total cash and cash equivalents, time deposits and U.S. treasury securities recorded as short-term and long-term investments were
US$998.8 million as ofMarch 31, 2024 , compared toUS$984.3 million as ofDecember 31, 2023 .
For further information on the non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."
- IoT PaaS customers [1] for the first quarter of 2024 were approximately 2,000 (1Q2023: approximately 2,000). Total customers for the first quarter of 2024 were approximately 3,000 (1Q2023: approximately 2,800).
-
Premium IoT PaaS customers
[2] for the trailing 12 months ended
March 31, 2024 were 269 (1Q2023: 261). In the first quarter of 2024, the Company's premium IoT PaaS customers contributed approximately 85.1% of its IoT PaaS revenue (1Q2023: approximately 80.2%). -
Dollar-based net expansion rate ("DBNER")
[3] of IoT PaaS for the trailing 12 months ended
March 31, 2024 was 116% (1Q2023: 49%). -
Registered IoT device and software developers were approximately 1,074,000 as of
March 31, 2024 , up 8.2% from approximately 993,000 developers as ofDecember 31, 2023 .
- The Company defines an IoT PaaS customer for a given period as a customer who has directly placed orders for IoT PaaS with the Company during that period.
- The Company defines a premium IoT PaaS customer as a customer as of a given date that contributed more than
US$100,000 of IoT PaaS revenue during the immediately preceding 12-month period. - The Company calculates DBNER of IoT PaaS for a trailing 12-month period by first identifying all customers in the prior 12-month period (i.e., those have placed at least one order for IoT PaaS during that period), and then calculating the quotient from dividing the IoT PaaS revenue generated from such customers in the current trailing 12-month period by the IoT PaaS revenue generated from the same Company of customers in the prior 12-month period. The Company's DBNER may change from period to period, due to a combination of various factors, including changes in the customers' purchase cycles and amounts and the Company's customer mix, among other things. DBNER indicates the Company's ability to expand customer use of the
Tuya platform over time and generate revenue growth from existing customers.
Mr. Xueji (Jerry)
Ms.
REVENUE
Total revenue in the first quarter of 2024 increased by 29.9% to
- IoT PaaS revenue in the first quarter of 2024 increased by 35.7% to
US$45.6 million fromUS$33.6 million in the same period of 2023, primarily due to the relief of downstream inventory backlog and a global economic improvement compared with the same period of 2023, along with the effective customer-focus and product-enhancement strategies the Company adopted to navigate through the macroeconomic headwinds. Correspondingly, the Company's DBNER of IoT PaaS for the trailing 12 months endedMarch 31, 2024 increased to 116% from 49% for the trailing 12 months endedMarch 31, 2023 . - SaaS and others revenue in the first quarter of 2024 increased by 1.8% to
US$8.6 million fromUS$8.5 million in the same period of 2023, primarily due to an increase in revenue from cloud software products, partially offset by the decrease in revenue from technical development services. The Company remained committed to offering value-added services and a diverse range of software products with compelling value propositions to its customers. - Smart solution (formerly known as smart device distribution) revenue in the first quarter of 2024 increased by 37.3% to
US$7.5 million fromUS$5.4 million in the same period of 2023, primarily due to the increasing customer demand for smart devices with integrated intelligent software capabilities the Company developed beyond IoT.
COST OF REVENUE
Cost of revenue in the first quarter of 2024 increased by 21.6% to
GROSS PROFIT AND GROSS MARGIN
Total gross profit in the first quarter of 2024 increased by 40.2% to
- IoT PaaS gross margin in the first quarter of 2024 was 46.4%, compared to 40.5% in the same period of 2023, primarily due to the changes in product mix, enhancement in product value, and the reversal recorded for certain slow-moving IoT chips and raw materials compared to the provision of such IoT chips and raw materials in the first quarter of last year.
- SaaS and others gross margin in the first quarter of 2024 was 72.3%, remained relatively stable compared to 74.1% in the same period of 2023.
- Smart solution gross margin in the first quarter of 2024 was 28.3%, compared to 21.0% in the same period of 2023, primarily due to higher-value product solutions we provided to our customers during the first quarter of 2024.
OPERATING EXPENSES
Operating expenses decreased by 14.0% to
Non-GAAP operating expenses, defined as operating expenses excluding share-based compensation expenses and credit loss of long-term investments, decreased by 16.6% to
- Research and development expenses in the first quarter of 2024 were
US$23.5 million , down 16.3% fromUS$28.1 million in the same period of 2023, primarily due to the decrease in employee-related costs. During this quarter, average salaried employee headcount of the Company's research and development team was down approximately 20.1% year over year, but remained largely stable compared to the previous quarter. Non-GAAP adjusted research and development expenses in the first quarter of 2024 wereUS$20.0 million , compared toUS$23.9 million in the same period of 2023. - Sales and marketing expenses in the first quarter of 2024 were
US$9.0 million , down 12.4% fromUS$10.3 million in the same period of 2023, primarily due to the decrease in employee- related costs. Non-GAAP adjusted sales and marketing expenses in the first quarter of 2024 wereUS$7.6 million , compared toUS$8.7 million in the same period of 2023. - General and administrative expenses in the first quarter of 2024 were
US$15.5 million , down 7.9% compared toUS$16.8 million in the same period of 2023, primarily due to (i) the decrease in employee-related costs, and (ii) the decrease in professional service fee compared to the same period of 2023. Non-GAAP adjusted general and administrative expenses in the first quarter of 2024 wereUS$4.6 million , compared toUS$5.2 million in the same period of 2023. - Other operating income, net in the first quarter of 2024 was
US$2.1 million , primarily due to the receipt of software value-added tax refunds and various general subsidies for enterprises.
LOSS FROM OPERATIONS AND OPERATING MARGIN
Loss from operations in the first quarter of 2024 narrowed by 49.3% to
Operating margin in the first quarter of 2024 was negative 26.5%, improved by 41.5 percentage points from negative 68.0% in the same period of 2023. Non-GAAP operating margin in the first quarter of 2024 was negative 0.9%, improved by 30.6 percentage points from negative 31.5% in the same period of 2023.
NET LOSS/PROFIT AND
Net loss in the first quarter of 2024 narrowed by 83.2% to
The Company had a non-GAAP net profit of
Net margin in the first quarter of 2024 was negative 5.7%, improving by 38.6 percentage points from negative 44.3% in the same period of 2023. Non-GAAP net margin in the first quarter of 2024 was 19.9%, improving by 27.7 percentage points from negative 7.8% in the same period of 2023.
BASIC AND DILUTED NET LOSS/PROFIT PER ADS
Basic and diluted net loss per ADS was
Non-GAAP basic and diluted net profit per ADS was
CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND U.S. TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTS
Cash and cash equivalents, time deposits and U.S. treasury securities recorded as short-term and long-term investments were
NET CASH GENERATED FROM OPERATING ACTIVITIES
Net cash generated from operating activities in the first quarter of 2024 was
For further information on non-GAAP financial measures presented above, see the section headed "Use of Non-GAAP Financial Measures."
Business Outlook
With the stabilizing macroeconomic environment and normalizing downstream inventory levels, the industry is currently on a positive trajectory. With the effective implementation of the Company's customer and product strategies, along with the utilization and innovation of emerging technologies like AI, the Company is confident in its business prospects.
The Company will remain committed to continuously iterating and improving its products and services, further enhancing software and hardware capabilities, expanding key customer base, investing in innovations and new opportunities, diversifying revenue streams, and further optimizing operating efficiency. At the same time, the Company understands that future trajectories may encounter challenges, including shifting consumer spending patterns, regional economic disparities, inventory management, foreign exchange rate and interests rate volatility, and broader geopolitical uncertainties.
Conference Call Information
The Company's management will hold a conference call at
Online registration: https://www.netroadshow.com/events/login?show=a28be759&confId=64913
The replay will be accessible through
International: |
+1-929-458-6194 |
|
+1-866-813-9403 |
Access Code: |
969529 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.tuya.com.
About
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP measures, such as non- GAAP operating expenses, non-GAAP loss from operations (including non-GAAP operating margin), non-GAAP net (loss)/profit (including non-GAAP net margin), and non-GAAP basic and diluted net (loss)/profit per ADS, as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in
Non-GAAP financial measures are not defined under
Reconciliations of
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Investor Relations Contact
Investor Relations
Email: ir@tuya.com
The Blueshirt Group
Phone: +1 (323) 240-5796
Email: gary@blueshirtgroup.co
|
||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||
AS OF |
||
(All amounts in US$ thousands ("US$"), |
||
except for share and per share data, unless otherwise noted) |
||
|
||
|
As of |
As of |
|
|
|
|
2023 |
2024 |
|
|
|
|
|
|
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
498,688 |
529,501 |
Short-term investments |
291,023 |
261,740 |
Accounts receivable, net |
9,214 |
10,124 |
Notes receivable, net |
4,955 |
3,862 |
Inventories, net |
32,865 |
32,831 |
Prepayments and other current assets, net |
11,053 |
11,470 |
|
|
|
Total current assets |
847,798 |
849,528 |
|
|
|
Non-current assets: |
|
|
Property, equipment and software, net |
2,589 |
2,455 |
Operating lease right-of-use assets, net |
7,647 |
6,959 |
Long-term investments |
207,489 |
217,320 |
Other non-current assets, net |
877 |
959 |
|
|
|
Total non-current assets |
218,602 |
227,693 |
|
|
|
Total assets |
1,066,400 |
1,077,221 |
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
11,577 |
16,112 |
Advances from customers |
31,776 |
31,565 |
Deferred revenue, current |
6,802 |
6,806 |
Accruals and other current liabilities |
32,807 |
29,467 |
Incomes tax payables |
689 |
270 |
Lease liabilities, current |
3,883 |
3,896 |
|
|
|
Total current liabilities |
87,534 |
88,116 |
|
|
|
Non-current liabilities: |
|
|
Lease liabilities, non-current |
3,904 |
3,162 |
Deferred revenue, non-current |
506 |
437 |
Other non-current liabilities |
3,891 |
3,113 |
|
|
|
Total non-current liabilities |
8,301 |
6,712 |
|
|
|
Total liabilities |
95,835 |
94,828 |
|
|
|
|
|
|
|
||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) |
||
AS OF |
||
(All amounts in US$ thousands ("US$"), |
||
except for share and per share data, unless otherwise noted) |
||
|
||
|
As of |
As of |
|
|
|
|
2023 |
2024 |
|
|
|
|
|
|
Shareholders' equity: |
|
|
Ordinary shares |
– |
– |
Class A ordinary shares |
25 |
25 |
Class B ordinary shares |
4 |
4 |
Treasury stock |
(53,630) |
(45,316) |
Additional paid-in capital |
1,616,105 |
1,623,655 |
Accumulated other comprehensive loss |
(17,091) |
(17,584) |
Accumulated deficit |
(574,848) |
(578,391) |
|
|
|
Total shareholders' equity |
970,565 |
982,393 |
|
|
|
Total liabilities and shareholders' equity |
1,066,400 |
1,077,221 |
|
|
|
|
||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF |
||
COMPREHENSIVE LOSS |
||
(All amounts in US$ thousands ("US$"), |
||
except for share and per share data, unless otherwise noted) |
||
|
||
|
For the Three Months Ended |
|
|
|
|
|
2023 |
2024 |
|
|
|
|
|
|
Revenue |
47,485 |
61,662 |
Cost of revenue |
(26,457) |
(32,177) |
|
|
|
Gross profit |
21,028 |
29,485 |
|
|
|
Operating expenses: |
|
|
Research and development expenses |
(28,051) |
(23,474) |
Sales and marketing expenses |
(10,259) |
(8,983) |
General and administrative expenses |
(16,793) |
(15,474) |
Other operating incomes, net |
1,780 |
2,079 |
|
|
|
Total operating expenses |
(53,323) |
(45,852) |
|
|
|
Loss from operations |
(32,295) |
(16,367) |
|
|
|
Other income/(loss) |
|
|
Other non-operating income, net |
778 |
778 |
Financial income, net |
11,470 |
12,807 |
Foreign exchange loss, net |
(34) |
(105) |
|
|
|
Loss before income tax expense |
(20,081) |
(2,887) |
Income tax expense |
(964) |
(656) |
|
|
|
Net loss |
(21,045) |
(3,543) |
|
|
|
Net loss attributable to |
(21,045) |
(3,543) |
|
|
|
Net loss attributable to ordinary shareholders |
(21,045) |
(3,543) |
|
|
|
Net loss |
(21,045) |
(3,543) |
Other comprehensive income/(loss) |
|
|
Transfer out of fair value changes of long-term investments |
– |
(65) |
Foreign currency translation |
1,628 |
(428) |
|
|
|
Total comprehensive loss attributable to |
(19,417) |
(4,036) |
|
|
|
|
||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF |
||
COMPREHENSIVE LOSS (CONTINUED) |
||
(All amounts in US$ thousands ("US$"), |
||
except for share and per share data, unless otherwise noted) |
||
|
||
|
For the Three Months Ended |
|
|
|
|
|
2023 |
2024 |
|
|
|
|
|
|
Net loss attributable to |
(21,045) |
(3,543) |
|
|
|
Net loss attributable to ordinary shareholders |
(21,045) |
(3,543) |
|
|
|
Weighted average number of ordinary shares used in computing |
553,994,418 |
559,133,184 |
net loss per share, basic and diluted |
||
|
|
|
Net loss per share attributable to ordinary shareholders, basic |
(0.04) |
(0.01) |
and diluted |
||
|
|
|
Share-based compensation expenses were included in: |
|
|
Research and development expenses |
4,117 |
3,506 |
Sales and marketing expenses |
1,606 |
1,385 |
General and administrative expenses |
11,597 |
10,923 |
|
|
|
|
||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||
(All amounts in US$ thousands ("US$"), |
||
except for share and per share data, unless otherwise noted) |
||
|
||
|
For the Three Months Ended |
|
|
|
|
|
2023 |
2024 |
|
|
|
|
|
|
Net cash (used in)/generated from operating activities |
(18,882) |
14,490 |
Net cash (used in)/generated from investing activities |
(33,824) |
16,195 |
Net cash (used in)/generated from financing activities |
(2,171) |
254 |
Effect of exchange rate changes on cash and cash equivalents, |
961 |
(126) |
restricted cash |
||
|
|
|
Net (decrease)/increase in cash and cash equivalents, |
(53,916) |
30,813 |
restricted cash |
||
|
|
|
Cash and cash equivalents, restricted cash at the |
133,161 |
498,688 |
beginning of period |
||
|
|
|
Cash and cash equivalents, restricted cash at the end of period |
79,245 |
529,501 |
|
||
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY |
||
COMPARABLE FINANCIAL MEASURES |
||
(All amounts in US$ thousands ("US$"), |
||
except for share and per share data, unless otherwise noted) |
||
|
||
|
For the Three Months Ended |
|
|
|
|
|
2023 |
2024 |
|
|
|
|
|
|
Reconciliation of operating expenses to |
|
|
non-GAAP operating expenses |
||
Research and development expenses |
(28,051) |
(23,474) |
Add: Share-based compensation expenses |
4,117 |
3,506 |
|
(23,934) |
(19,968) |
|
|
|
Sales and marketing expenses |
(10,259) |
(8,983) |
Add: Share-based compensation expenses |
1,606 |
1,385 |
Adjusted Sales and marketing expenses |
(8,653) |
(7,598) |
|
|
|
General and administrative expenses |
(16,793) |
(15,474) |
Add: Share-based compensation expenses |
11,597 |
10,923 |
Adjusted General and administrative expenses |
(5,196) |
(4,551) |
|
|
|
Reconciliation of loss from operations to |
|
|
non-GAAP loss from operations |
||
Loss from operations |
(32,295) |
(16,367) |
Operating margin |
(68.0) % |
(26.5) % |
Add: Share-based compensation expenses |
17,320 |
15,814 |
Non-GAAP Loss from operations |
(14,975) |
(553) |
|
|
|
Non-GAAP Operating margin |
(31.5) % |
(0.9) % |
|
|
|
Reconciliation of net loss to non-GAAP net (loss)/profit |
|
|
Net loss |
(21,045) |
(3,543) |
Net margin |
(44.3) % |
(5.7) % |
Add: Share-based compensation expenses |
17,320 |
15,814 |
Non-GAAP Net (loss)/profit |
(3,725) |
12,271 |
|
|
|
Non-GAAP Net margin |
(7.8) % |
19.9 % |
|
|
|
Weighted average number of ordinary shares used in |
|
|
computing non-GAAP net loss per share |
||
– Basic |
553,994,418 |
559,133,184 |
|
|
|
– Diluted |
553,994,418 |
591,737,410 |
|
|
|
Non-GAAP net (loss)/profit per share attributable |
|
|
to ordinary shareholders |
||
– Basic |
(0.01) |
0.02 |
|
|
|
– Diluted |
(0.01) |
0.02 |
|
|
|
|
|
|
View original content:https://www.prnewswire.com/news-releases/tuya-reports-first-quarter-2024-unaudited-financial-results-302150570.html
SOURCE