Tuya, Inc. · NYSE:TUYA
Tuya — Q1 2024 Earnings Presentation
26 slides from Tuya's earnings presentation, May 2024
Slide 1: Presentation First Quarter 2024
NYSE: TUYA / HKEX: 2391.HK Presentation First Quarter 2024 May 2024
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying oral presentation (the “Presentation”) have been prepared by Tuya Inc. (the "Company") solely for informational purposes and have not been independently verified. No representations, warranties or undertakings, express or implied, are made by the Com
Slide 3: Continual Growth with Profitability in Q1'24
Continual Growth with Profitability in Q1'24 +29.9% Y/Y $12.3 Million $14.5 Million ~$1 Billion Total Revenue Non-GAAP1 Net Profits Operating Cash Generated Net Cash Balance ($61.7 million) (Q1'23: $-3.7 million) (Q1'23: $-18.9 million) Revenue demonstrated Consistent achievement of Strong cash posi
Slide 4: Content
Content 1 Company Introduction 2 Key Topline and Financial Updates 3 Embracing Generative AI Across the Board 3
Slide 5: Company Introduction
Company Introduction
Slide 6: Build a Smart Solutions Developer Ecosystem
Build a Smart Solutions Developer Ecosystem Enable Everything to Be Smart
Slide 7: The Largest IoT Cloud Developer Platform Provider
#1 The Largest Internet-of-Things (IoT) Cloud Developer Platform Provider 3,000 967,000 Global Customers Smart Device SKUs Served in Q1'24 as of March 31, 2024 1,074,000 2,000+ Düsseldorf SESA Europe Tokyo California Gurgaon East Asia, North Asia, APAC North America Dubai Shenzhen UAE China Medellín
Slide 8: Cloud-Native Software-Enabled Experience to End Users
We Deliver a Cloud-Native Software-Enabled Experience to End Users For Everything 7
Slide 9: After a Decade of Evolution, Our Business Has Significantly Expanded
After a Decade of Evolution, Our Business Has Significantly Expanded 2015 2020 2023 IoT PaaS SaaS and Others Smart Solution (Device Intelligence) (Software & Service) (Smart Device Solution) Tuya IoT Cloud Developer Platform Tuya IoT Cloud Developer Platform IoT Cloud Infrastructure IoT Developer Ki
Slide 10: Endorsed by Global Leading Customers
Endorsed by Global Leading Customers 9
Slide 11: One Platform, All Smart
One Platform, All Smart More Scenarios Better Experience Enable Every Thing to Be Smart & Devices Powered for Developers by the Platform and End Users with ONE connected cloud & App Across Brands Globally Across a Variety of Devices Globalization in Interconnected and Unified a Cost-effective Manner
Slide 12: Key Topline and Financial Updates
Key Topline and Financial Updates
Slide 13: Three Consecutive Quarters of YoY Growth Exceeding 30%
Three Consecutive Quarters of YoY Growth Exceeding 30% Total Revenue Y/Y Growth by Quarter (%) • Low base in H1'20 • Inflation took in • Global high inflation • Global Chip shortage • Supply chain disruption • Destocking cycle Industry Headwinds 200% 35% Y/Y Growth 118% Excluding FX Impacts Revenue
Slide 14: Revenue Update
Revenue Update Revenue Breakdown, The First Quarter (USD'M) Total Revenue IoT PaaS Smart Solution SaaS and Others YoY YoY YoY YoY +30% +36% +37% +2% 47.8% 46.4% 74.1% 44.3% 72.3% 40.5% 61.7 28.3% 45.6 21.0% 47.5 33.6 7.5 8.5 8.6 5.4 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Revenue GP Margin N
Slide 15: Revenue Efficiency Maintained High Level in Q1'24
Revenue Efficiency Maintained High Level in Q1'24 Average Revenue Supported Average Gross Profit Supported Average Revenue Per Headcount Per Headcount Per Customer (USD'K) (USD'K) (USD'K) 42.6 20.4 21.0 16.7 26.5 11.7 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Note: Numbers are rounded for presentation pur
Slide 16: Stably Increased Gross Margin Secures Long-term Profitability
Stably Increased Gross Margin Secures Long-term Profitability Gross Margin Revenue Contribution Overall gross margin by Segments 44.6% 44.3% 46.7% 46.7% 47.3% 47.8% 42.3% 41.2% 42.8% 43.6% 34.4% 26.3% IoT PaaS SaaS and Others Smart Device Distribution IoT PaaS gross margin 7% 44.2% 44.6% 44.8% 46.4%
Slide 17: Operating Loss by Quarters
Operating Loss by Quarters Operating Loss, GAAP and Non-GAAP1 (USD'M) (0.3) (0.6) (3.5) (15.0) (6.4) Operating loss in Q1'24 (15.3) narrowed by 49.3% Y/Y mainly due to — (22.3) (24.5) (23.7) (16.4) • Gross profit increased significantly Y/Y; (18.5) (26.5) (23.6) • OPEX decreased significantly Y/Y. (
Slide 18: Achievement of Continuing Non-GAAP Quarterly Profitability
Achievement of Continuing Non-GAAP Quarterly Profitability Net Profit/(Loss), GAAP and Non-GAAP1 (USD'M) 12.6 12.3 10.1 1.5 Net loss in Q1'24 narrowed by 83.2% Y/Y mainly due to — (5.2) (3.7) (4.9) (3.5) • Improvement in operating loss; (15.9) (18.7) (10.8) (23.8) (23.1) • US$12.8 million of interes
Slide 19: Operating Cash Flow by Quarters
Operating Cash Flow by Quarters Net Cash Generated/(Used) in Operating Activities (USD'M) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 31.8 16.1 ~US$1 Billion 5.8 7.5 0.4 (0.1) 14.5 Net cash1 on March 31, 2024 (13.5) (18.9) (32.7) (46.1) (53.2) (57.4) 1. "Net cash" r
Slide 20: Strong Balance Sheet Assures Long-term Operation
Strong Balance Sheet Assures Long-term Operation Total Liabilities to Assets Ratio (%) No debt or capital 10.8% 10.8% commitments 10.4% 9.5% 9.8% 8.9% 9.0% Liabilities are mainly operating related, 8.6% 8.8% 8.0% 8.4% 8.3% such as account payable, salary 7.4% payable, advance from customers, etc. as
Slide 21: Key Business Growth Strategies
Key Business Growth Strategies 1 Further enhancement of product capabilities 2 Further expanding high-quality customer base 3 Expand into non-consumer electronics sectors 1,074,000 37.2% Developers1 y/y Growth Continuously strengthen developer platform, 4 creating competencies to efficiently serving
Slide 22: Embracing Generative AI Across the Board: On-Device AI Application
Embracing Generative AI Across the Board: On-Device AI Application Reliability Immediacy Autonomy Device-side Capability Efficiency Personalization Animal Detection & Identification On-device AI Application Local Sensor Data Processing Voice Noise Reduction Cloud-Side AI 21
Slide 23: Embracing Generative AI Across the Board: Spatial LLM
Embracing Generative AI Across the Board: Spatial LLM Industrial & Commercial Home Scenario Scenario Integration Enables Developers to Create More Valuable Intelligent Spaces Building Energy Life & Personal Plant Cultivation Home Energy Efficiency Scenario Safety Scenario Scenario NetZero Solution M
Slide 24: Embracing Generative AI Across the Board: AI Ecosystem Products
Embracing Generative AI Across the Board : AI Ecosystem Products AI Developer AI Analyst AI Terminal Developer Platform + LLMs Intelligent Business Data Portal Tailor-made AI Model for end users Enjoy a seamless, convenient, Dramatic business insights AI model tailored for smart and efficient develo
Slide 25: Appendix
Appendix
Slide 26: Appendix: Q1'24 Reconciliation of Non-GAAP to GAAP
Appendix: Q1'24 Reconciliation of Non-GAAP to GAAP For the Three Months Ended For the Three Months Ended March 31, 2023 March 31, 2024 USD'000 USD'000 Reconciliation of operating expenses to non-GAAP operating expenses Research and development expenses (28,051) (23,474) Add: Share-based compensation