Tuya Inc Reports Third Quarter 2024 Financial Results
Intellectia.AI
Tuya Inc. Reports Third Quarter 2024 Financial Results
SANTA CLARA, Calif., Nov. 18, 2024 /PRNewswire/ -- Tuya Inc. ('Tuya' or the 'Company') (NYSE: TUYA; HKEX: 2391), a global leading cloud platform service provider, today announced its unaudited financial results for the third quarter ended September 30, 2024, showcasing substantial growth and operational improvements.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Growth | Wall Street Est. |
|---|---|---|---|---|
| Total Revenue | $81.6 million | $61.1 million | 33.6% | $74.14 million |
| Earnings per Share (EPS) | -$0.01 | -$0.01 | N/A | $0.02 |
In Q3 2024, Tuya experienced a 33.6% increase in revenue year-over-year, exceeding consensus estimates of $74.14 million. Despite posting a net loss per ADS of $0.01, the company's earnings demonstrated improvement when considering non-GAAP metrics, indicative of positive underlying business trends.
Segment Revenue Breakdown
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Year-over-Year Growth |
|---|---|---|---|
| IoT PaaS | $57.9 million | $45.8 million | 26.4% |
| SaaS and Others | $9.9 million | $8.5 million | 16.7% |
| Smart Solutions | $13.8 million | $6.8 million | 102.9% |
The IoT PaaS segment, Tuya's largest revenue driver, maintained strong growth, while Smart Solutions revenue more than doubled, reflecting a surge in demand for the company's differentiated offerings.
Operational Highlights
- The overall gross margin was 46.0%, with an improvement noted in IoT PaaS gross margin, rising to 46.9%.
- Operating margins improved significantly, with non-GAAP operating margin reaching 9.1%.
- The company's net cash generated from operating activities increased to $23.9 million, strengthening liquidity.
Management Commentary
Mr. Xueji (Jerry) Wang, Founder and CEO of Tuya, emphasized the company's robust performance across all segments, highlighting a significant Dollar-Based Net Expansion Rate of 124%. He attributed success to strong customer relationships and global partnerships, particularly in Europe and emerging markets. Mr. Yi (Alex) Yang, Co-Founder and CFO, pointed out the firm’s solid financial position with a strong net cash balance, enabling continued investment in innovation and user experience.
Capital Management
No dividend announcements or share repurchase programs were mentioned in this release.
Forward Guidance and Stock Movement
The company expressed optimism about future growth, driven by a positive macroeconomic environment and ongoing strategic initiatives. Stock price reacted positively post-earnings release, experiencing a 7.45% increase.
Tuya continues focusing on innovation and expanding its smart solutions to maintain its market-leading position. The company's confidence in its strategic direction is underscored despite potential market challenges.
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