Tuya, Inc. · NYSE:TUYA
Tuya — FY2022 Earnings Presentation
21 slides from Tuya's earnings presentation, March 2023
Slide 1: Fourth Quarter and Full Year 2022 Presentation
Presentation Fourth Quarter and Full Year 2022 March 2023
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: Content
Content 1 Company Introduction 2 The Performance Is Under Pressure Due to The Prolonged Inventory Cycle 3 Breakeven Is Our Top Priority 2
Slide 4: Build an IoT Developer Ecosystem, Enable Everything to Be Smart
Build an IoT Developer Ecosystem Enable Everything to Be Smart
Slide 5: Cloud-Native Software-Enabled Experience to End Users For Everything
We Deliver a Cloud-Native Software-Enabled Experience to End Users For Everything 4
Slide 6: Developer-First, Cloud-Agnostic IoT Cloud Platform
Developer-First, Cloud-Agnostic IoT Cloud Platform For Business Customers For All Business Customers and End Users Developing Using Smart Devices Smart Devices IoT PaaS Industry SaaS Value-added Tuya IoT Services Cloud Development Platform Developer Kits Tuya IoT Cloud IoT Cloud Infrastructure Capab
Slide 7: Our Unique Products
Our Unique Products Value-added IoT PaaS Industry SaaS Services For Business Customers Cloud-Based Connectivity and Basic IoT Services Smart Smart Building IoT Edge Capabilities Hotel & Rental Smart Voice Data Tuya Assistant Analytics Mall For End Users App Development Smart Commercial Cloud APIs De
Slide 8: Our Ecosystem Participants
Our Ecosystem Participants Value-added Services for End-users Value-added Services App Development Data Analytics IoT Product Planning Finished Co-promotion Smart Devices Brands End Users IoT PaaS Finished Smart Devices Purchase Orders OEMs 7
Slide 9: Pioneer and Global Leader of IoT Cloud
Pioneer and Global Leader of IoT Cloud — Customers and Brands Are Rapidly Adopting 75 Net Promoter Score1 1. Based on a survey conducted by Skopos Group in January 2021. 8
Slide 10: The Performance Is Under Pressure Due to The Prolonged Inventory Cycle
The Performance Is Under Pressure Due to The Prolonged Inventory Cycle
Slide 11: We Experienced Fast Growth During 2019 to 2021
We Experienced Fast Growth During 2019 to 2021 Revenue & Overall gross profits, 2019 to 2021 (USD'M) Total Revenue Overall Gross Profits CAGR CAGR +69% +114% 302.1 127.9 179.9 61.9 105.8 27.8 2019 2020 2021 2019 2020 2021 10
Slide 12: But in 2022 We Experienced Significant Drop in IoT PaaS Segment
But in 2022 We Experienced Significant Drop in IoT PaaS Segment Revenue breakdown, 2022 (USD'M) Total Revenue IoT PaaS SaaS and Others Smart Device Distribution YoY YoY YoY YoY -31% -41% +61% +15% 302.1 261.4 208.2 152.9 29.8 25.4 18.6 22.2 2021 2022 2021 2022 2021 2022 2021 2022 Overall Core Busine
Slide 13: Performance Under Pressure Due to Prolonged Inventory Cycle
The Performance Is Under Pressure Due to The Prolonged Inventory Cycle Revenue breakdown, Q4'22 (USD'M) Total Revenue IoT PaaS SaaS and Others Smart Device Distribution YoY YoY YoY YoY -40% -47% +9% -16% 75.0 62.1 45.3 32.6 7.3 7.9 5.6 4.7 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Overall Core
Slide 14: Breakeven Is Our Top Priority
Breakeven Is Our Top Priority
Slide 15: Gross Margin Updates
Gross Margin Updates Gross Margin Overall gross margin Overall blended GPM 43% 43% 44% 41% 42% 43% 41% 43% • Recognized customer valuation 38% 34% proposition despite headwinds 30% 30% 28% 24% 25% 26% • Fluctuated due to product mix IoT PaaS gross margin IoT PaaS (Organic) 42% 42% 43% 43% 42% 43% 42
Slide 16: Non-GAAP Operating Expenses in Last 12 Quarters
Non-GAAP Operating Expenses in Last 12 Quarters Non-GAAP1 operating expenses Team size, End of 2021/2022 (USD'M) (Salaried headcounts) 69.0 66.3 62.2 60.6 3,470 49.1 47.9 58.1 43.4 39.8 46.3 35.5 31.2 40.0 25.7 1,835 25.6 34.1 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 2
Slide 17: Internal Efficiency Improvement Initiative Cases
Internal Efficiency Improvement Initiative Cases Business Model Cloud Infrastructure Cost Marketing Expense Improvement Control Optimization • Focus on big customers • Cloud cost remained stable, flat • More strict travel controls QoQ since Q2 • Focus on big orders • Continue to incentive R&D team •
Slide 18: Non-GAAP Operating Loss/Net Loss in Last 12 Quarters
Non-GAAP Operating Loss/Net Loss in Last 12 Quarters Non-GAAP1 operating loss/net loss (USD'M) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 (5.2) • OPEX (10.3) Basic payroll and benefits significantly Mainly decreased as a result of headcounts (13.0) Interest income down i
Slide 19: Operating Cash Flow in Last 12 Quarters
Operating Cash Flow in Last 12 Quarters Net cash generated/(used) in operating activities (USD'M) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 5.8 Operating cashflow 0.4 Improved in 2022 due to (0.1) (2.2) • Narrowed losses because of significant (7.0) (9.0) decreased OPEX
Slide 20: Appendix
Appendix
Slide 21: Appendix: Q4'22 Reconciliation of Non-GAAP to GAAP
Appendix: Q4'22 Reconciliation of Non-GAAP to GAAP For the Three Months Ended For the Three Months Ended December 31, 2021 December 31, 2022 USD'000 USD'000 Reconciliation of operating expenses to non-GAAP operating expenses Research and development expenses (46,187) (27,792) Add: Share-based compen