Tuya, Inc. · NYSE:TUYA
Tuya — Q3 2024 Earnings Presentation
27 slides from Tuya's earnings presentation, November 2024
Slide 1: Presentation Third Quarter 2024
NYSE: TUYA / HKEX: 2391.HK Presentation Third Quarter 2024 November 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: Continued Growth and Strong Profitability in Q3'24
Continued Growth and Strong Profitability in Q3'24 $81.6Mn / +34% $7.4Mn / 9% $20.1Mn / 25% $23.9Mn / $1.02Bn Total Revenue / YoY Growth Non-GAAP1 OP Profits / Non-GAAP1 Net Profits / Net OP Cash Generated / OP Margin Net Margin Net Cash Balance2 (Q3'23: $61.1Mn) (Q3'23: $-3.5Mn / -6%) (Q3'23: $10.1
Slide 4: Content
Content 1 Company Introduction 2 Key Topline and Financial Updates 3 Recent Business Events & Updates 3
Slide 5: Company Introduction
Company Introduction
Slide 6: Build a Smart Solutions Developer Ecosystem and Enable Everything to Be Smart
Build a Smart Solutions Developer Ecosystem and 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 3,100 1,035,000 Global Customers Smart Device SKUs Served in Q3'24 as of September 30, 2024 1,260,000 2,000+ Düsseldorf SESA Europe Tokyo California Gurgaon East Asia, North Asia, APAC North America Dubai Shenzhen UAE China Me
Slide 8: We Deliver a Cloud-Native Software-Enabled Experience to End Users For Everything
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: Solid YoY Revenue Growth
Solid YoY Revenue Growth Total Revenue by Quarter (USD'M) End of Macroeconomic Downturn Beginning of the New Cycle — Inflation Easing & Inventory Clearing — Strong Rebounds and Growth, Leveraging Tuya's Own Strengths +31% +39% Y/Y Growth 81.6 -11% 73.3 61.1 64.4 61.7 57.0 YoY 47.5 +34% Total Revenue
Slide 14: Revenue Update
Revenue Update Revenue Breakdown, The Third Quarter (USD'M) Total Revenue IoT PaaS Smart Solution SaaS and Others YoY YoY YoY YoY +34% +26% +103% +17% 81.6 57.9 61.1 45.8 13.8 8.5 9.9 6.8 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Revenue Note: Numbers are rounded for presentation purposes. 13
Slide 15: Revenue Efficiency Maintained High Level in Q3'24
Revenue Efficiency Maintained High Level in Q3'24 Average Revenue Supported Average Gross Profit Supported Average Revenue Per Headcount Per Headcount Per Customer (USD'K) (USD'K) (USD'K) 55.7 26.5 25.6 39.0 20.0 18.2 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Note: Numbers are rounded for presentation pur
Slide 16: Steady Gross Margin Secures Long-term Profitability
Steady Gross Margin Secures Long-term Profitability Gross Margin Revenue Contribution Overall More diverse revenue structure 46.4% 47.2% 46.7% 46.0% in line with growing strategy 42.3% 43.0% 34.4% 26.3% IoT PaaS gross margin 7% 12% 12% 14% 47.0% 46.9% 6% 17% 42.4% 43.7% 44.6% Smart Solution 41.1% 35
Slide 17: Operating Expense by Quarters
Operating Expense by Quarters Operating Expense, GAAP and Non-GAAP1 Headcounts (USD'M) as of Each Period End 78.3 190 66.2 17.7 60.1 719 58.1 17.2 53.0 53.3 54.1 54.6 GAAP 60.6 8.1 16.7 47.0 7.4 45.9 45.5 9.5 49.1 17.5 17.3 17.0 138 43.4 14.9 One-time ESOP 15.9 15.8 14.8 repricing impact 15.4 384 10
Slide 18: Continued Quarterly Non-GAAP Operating Profits
Continued Quarterly Non-GAAP Operating Profits Operating Profit/(Loss), GAAP and Non-GAAP1 (USD'M) 7.4 7.4 9% Non-GAAP OP Margin Operating loss (GAAP) in Q3'24 (0.3) (0.6) (3.5) narrowed by 7.4% Y/Y mainly due to — (15.3) (15.0) (6.4) (10.3) • Gross profits increased significantly Y/Y; (22.3) (23.7)
Slide 19: Non-GAAP Profitable for Six Consecutive Quarters
Non-GAAP Profitable for Six Consecutive Quarters Net Profit/(Loss), GAAP and Non-GAAP1 (USD'M) 20.8 20.1 12.6 12.3 10.1 3.1 Net loss (GAAP) in Q3'24 1.5 narrowed by 10.8% Y/Y mainly due to — (3.7) (3.5) (4.4) (15.9) (5.2) (4.9) • Improvement in operating loss; (18.7) (10.8) • US$13.0 million of inte
Slide 20: Operating Cash Flow by Quarters
Operating Cash Flow by Quarters Net Cash Generated/(Used) in Operating Activities (USD'M) Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 31.8 16.1 14.5 11.8 23.9 US$1.02 Billion 5.8 7.5 0.4 Net cash1 (0.1) on September 30, 2024 (13.5) (18.9) (46.1) (53.2) (57.4)
Slide 21: Recent Business Events and Updates
Recent Business Events and Updates
Slide 22: IFA 2024 – TUYA Sustainable Innovations for AI
X: 0.41 Under editing (with gridlines) X: 12.92 X: 0.72 X: 3.69 X: 6.67 X: 9.65 X: 12.62 Heading/标题 IFA 2024 – TUYA Sustainable Innovations for AI xX X: 0.63 Sub-headings AI Agent Platform Hardware LLM Mini App Y:3.75 8 Core Application Scenarios Home Energy Comfortable Pets & Security & Sports & En
Slide 23: IFA 2024 in Germany – Selected AI-Driven Solution
IFA 2024 in Germany – Selected AI-Driven Solution Home Energy Management Low-Carbon Smart Mobility Smart Parking Lighting Solution Solution Solution • Dynamic pricing management • Comprehensive hardware • Plug-and-Play Setup: AI simplifies integration installation efficiency • Extends to balconies w
Slide 24: GITEX GLOBAL 2024 in Dubai – TUYA AI in All Sustainable Spaces
GITEX GLOBAL 2024 in Dubai – TUYA AI in All Sustainable Spaces AI-Driven Energy Management Solution Accelerating the Green Transition in ME Smart City Solution Solar Storage Energy Management Solution Net Zero Solution Smart Lighting Solution Smart House & Real Estate Solution Building Energy Manage
Slide 25: Tuya's Global Impact on Sustainability and ESG Performance
Tuya's Global Impact on Sustainability and ESG Performance Note: The interface of WIND is automatically machine-translated by its system, so there may be inaccuracies in word choice. 24
Slide 26: Appendix
Appendix
Slide 27: Appendix: Q3'24 Reconciliation of Non-GAAP to GAAP
Appendix: Q3'24 Reconciliation of Non-GAAP to GAAP For the Three Months Ended For the Three Months Ended September 30, 2023 September 30, 2024 USD'000 USD'000 Reconciliation of operating expenses to non-GAAP operating expenses Research and development expenses (24,946) (24,877) Add: Share-based comp