Tuya, Inc. · NYSE:TUYA
Tuya — Q4 2023 Earnings Presentation
27 slides from Tuya's earnings presentation, March 2024
Slide 1: Fourth Quarter and Full Year 2023 Presentation
NYSE: TUYA / HKEX: 2391.HK Presentation Fourth Quarter and Full Year 2023 March 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: Key Financial Highlights in Q4'23
Key Financial Highlights in Q4'23 +42% Y/Y $12.6 Million $31.8 Million Total Revenue Non-GAAP1 Net Profits Operating Cash Generated ($64.4 million) (Q4'22: $-5.2 million) (Q4'22: $-0.1 million) Revenue demonstrated Achieved continuing Strong cash position the strong recovery quarterly profitability
Slide 4: Key Financial Highlights in FY23
Key Financial Highlights in FY23 +11% Y/Y $20.4 Million $36.4 Million Total Revenue Non-GAAP1 Net Profits Operating Cash Generated ($230.0 million) (FY22: $-77.2mm) (FY22: $-70.7mm) Revenue demonstrated First time achieved Strong cash position the strong recovery annual profitability and operating c
Slide 5: Content
Content 1 Company Introduction 2 Key Topline and Financial Updates 4
Slide 6: Company Introduction
Company Introduction
Slide 7: Build an IoT Developer Ecosystem
Build an IoT Developer Ecosystem Enable Everything to Be Smart
Slide 8: The Largest Internet-of-Things (IoT) Cloud Development Platform Provider
#1 The Largest Internet-of-Things (IoT) Cloud Development Platform Provider 6,100 933,000 Global Customers Smart Device SKUs Served in 2023 as of December 31, 2023 993,000 1,600+ Düsseldorf SESA Europe Tokyo California Gurgaon East Asia, North Asia, APAC North America Dubai Shenzhen UAE China Medell
Slide 9: We Deliver a Cloud-Native Software-Enabled Experience to End Users
We Deliver a Cloud-Native Software-Enabled Experience to End Users For Everything 8
Slide 10: 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 TUYA IOT CLOUD IoT Cloud IoT Developer Kits Infrastructure C
Slide 11: Our Unique Products
Our Unique Products Value-added IoT PaaS Industry SaaS Services Cloud-Based Connectivity For Business Customers and Basic IoT Services Smart NetZero IoT Edge Capabilities Hotel & Rental Park Solution Smart Voice Data Tuya Assistant Analytics Mall For End Users App Development Smart Commercial Cloud
Slide 12: 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 11
Slide 13: Endorsed by Global Leading Customers
Endorsed by Global Leading Customers 12
Slide 14: 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 15: Key Topline and Financial Updates
Key Topline and Financial Updates
Slide 16: Strong YoY Uplift in Total Revenue
Strong YoY Uplift in Total Revenue 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% 44% Y/Y Growth 118% Excluding FX Impacts Revenue +Y/Y 45% 36% 42% 19%
Slide 17: Revenue Update: Fourth Quarter
Revenue Update Revenue Breakdown, The Fourth Quarter (USD'M) Total Revenue IoT PaaS Smart Device Distribution SaaS and Others YoY YoY YoY YoY +42% +45% +65% +19% 47.3% 75.2% 74.2% 44.6% 44.8% 41.5% 64.4 29.7% 47.2 45.3 32.6 14.6% 7.8 7.9 9.5 4.7 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Revenu
Slide 18: Revenue Update: FY23
Revenue Update Revenue Breakdown, FY23 (USD'M) Total Revenue IoT PaaS Smart Device Distribution SaaS and Others YoY YoY YoY YoY +11% +10% +4% +20% 79.0% 46.4% 74.2% 43.0% 43.7% 41.1% 230.0 208.2 25.5% 167.7 152.9 11.6% 29.8 35.8 25.4 26.5 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 Revenue GP Margin Not
Slide 19: Revenue Efficiency Improved to A Historical High Level in Q4
Revenue Efficiency Improved to A Historical High Level in Q4 Average Revenue Supported Average Gross Profit Supported Average Revenue Per Headcount Per Headcount Per Customer (USD'K) (USD'K) (USD'K) 43.5 20.6 20.0 39.0 20.0 18.2 13.4 23.9 10.6 Q4'22 Q3'23 Q4'23 Q4'22 Q3'23 Q4'23 Q4'22 Q3'23 Q4'23 1.
Slide 20: 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 43.6% 44.6% 44.3% 46.7% 46.7% 47.3% 42.3% 41.2% 42.8% 34.4% 26.3% IoT PaaS SaaS and Others Smart Device Distribution IoT PaaS gross margin 7% 44.6% 44.8% 12% 12% 42.4% 42.
Slide 21: Operating Loss by Quarters
Operating Loss by Quarters Operating Loss, GAAP and Non-GAAP1 (USD'M) (0.3) (3.5) (6.4) Operating loss in Q4'23 narrowed by 28.0% Y/Y mainly due to — (15.3) (15.0) • Gross profit increased significantly Y/Y; (18.5) (22.3) • OPEX decreased significantly Y/Y. (24.5) (23.7) (23.6) (26.5) (32.5) (32.3)
Slide 22: Achievement of Continuing Non-GAAP Quarterly Breakeven
Achievement of Continuing Non-GAAP Quarterly Breakeven Net Profit/(Loss), GAAP and Non-GAAP1 (USD'M) 12.6 10.1 1.5 Net loss in Q4'23 narrowed by 52.4% Y/Y mainly due to — (5.2) (3.7) (4.9) • Improvement in operating loss; (10.8) • US$13.1 million of interest income (15.9) (18.7) achieved in Q4'23 du
Slide 23: 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 31.8 16.1 US$984 Million 5.8 7.5 0.4 (0.1) Net cash1 on December 31, 2023 (13.5) (18.9) (32.7) (46.1) (53.2) (57.4) 1. "Net cash" refers t
Slide 24: 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% 8.4% 8.3% such as account payable, salary 8.0% 7.4% payable, advance from customers, etc. Q1'21 Q
Slide 25: Key Business Growth Strategies
Key Business Growth Strategies 1 Further enhancement of product capabilities 2 Further expanding high-quality customer base 993,000 40.3% 3 Expand into non-consumer electronics sectors Developers1 y/y Growth Continuously strengthen developer platform, 4 creating competencies to efficiently serving h
Slide 26: Appendix
Appendix
Slide 27: Appendix: Q4'23 Reconciliation of Non-GAAP to GAAP
Appendix: Q4'23 Reconciliation of Non-GAAP to GAAP For the Three Months Ended For the Three Months Ended December 31, 2022 December 31, 2023 USD'000 USD'000 Reconciliation of operating expenses to non-GAAP operating expenses Research and development expenses (27,792) (22,806) Add: Share-based compen