Tuya, Inc. · NYSE:TUYA
Tuya — Q1 2023 Earnings Presentation
23 slides from Tuya's earnings presentation, June 2023
Slide 1: Presentation First Quarter 2023
Presentation First Quarter 2023 June 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 Downstream Inventory Suggested Some Relief Amid Lingering Pressure 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: We Deliver a Cloud-Native Software-Enabled Experience to End Users
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: Downstream Inventory Suggested Some Relief Amid Lingering Pressure
Downstream Inventory Suggested Some Relief Amid Lingering Pressure
Slide 11: Total Revenue Slightly Increased Sequentially
Total Revenue Slightly Increased Sequentially Total revenue by quarter (USD'M) Rapid growth propelled by Under headwinds of Persistent our unique technology, first-mover advantages and developer ecosystem high inflation & inventory backlog destocking cycle 84.7 85.6 +5% QoQ -14% YoY 75.0 +69% 3-year
Slide 12: Revenue Updates by Segment
Revenue Updates by Segment Revenue breakdown for the first quarter (USD'M) Total Revenue IoT PaaS SaaS and Others Smart Device Distribution YoY YoY YoY YoY -14% -20% +47% -30% 77.1% 74.1% 44.3% 42.3% 41.2% 40.5% 55.3 47.5 41.8 21.0% 33.6 9.1% 5.8 8.5 7.8 5.4 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22
Slide 13: Business Updates — Focusing on Innovative Products
Business Updates — Focusing on Innovative Products Smart Air Tag Solution Product Strategies Smart Watch/Band Solution • Innovative capabilities with high value proposition 33%+ 25~33% Gross Margin* • Emerging potential markets Gross Margin* with strong demands • Strategic corporation with selected,
Slide 14: Cube+SaaS, Continuously Attracting Top Global Customers
Cube+SaaS, Continuously Attracting Top Global Customers One of the largest real estate developer group in Thailand US$ Million level Software revenue Smart device and VAS revenue opportunities Smart Community SaaS deployed through Engaging 10+ categories of smart devices Cube Private Cloud Solution
Slide 15: Meaningful Software Revenue from High-Value VAS and Cube Solution
Meaningful Software Revenue from High-Value VAS and Cube Solution Cloud storage VAS revenue Cube smart private cloud revenue for the quarter/year for the quarter (USD'M) *Robust growth driven by a steady increase in the number of activated cloud storage device base. 5.1 ~$1.6 Million Revenue recogni
Slide 16: IoT Development Platform to Tackle IoT Fragmentation and Low Penetration Rate
IoT Development Platform to Tackle IoT Fragmentation and Low Penetration Rate 782,000 Developers1 +34% Year over Year Product Development App Development Cloud Development 1. “Developer” refers to the registered developer, as of March 31, 2023. Numbers are rounded for presentation purposes. 15
Slide 17: Breakeven Is Our Top Priority
Breakeven Is Our Top Priority
Slide 18: Gross Margin Updates
Gross Margin Updates Gross Margin Overall gross margin Overall blended GPM 43% 43% 44% 44% 41% 42% 43% 41% 43% • Recognized customer valuation 38% 34% proposition despite headwinds, 30% 30% fluctuated due to product mix 28% 25% 26% 24% IoT PaaS IoT PaaS gross margin • Slightly fluctuated due to pric
Slide 19: Non-GAAP Operating Expenses by Quarters
Non-GAAP Operating Expenses by Quarters Non-GAAP1 operating expenses Team size, Mar-2022/Mar-2023 (USD'M) (Salaried headcounts) 69.0 66.3 62.2 60.6 3,072 49.1 47.9 58.1 43.4 39.8 46.3 36.0 35.5 31.2 40.0 1,780 25.7 25.6 35.7 34.1 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'2
Slide 20: Non-GAAP Operating Loss/Net Loss by Quarters
Non-GAAP Operating Loss/Net Loss by 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 Q1'23 (3.7) • OPEX Basic payroll and benefits significantly (5.2) decreased as a result of headcounts (10.3) Mainly down in 2022, remaining s
Slide 21: Operating Cash Flow by Quarters
Operating Cash Flow by 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 Q1'23 Operating cashflow in Q1'23 5.8 Improved YoY mainly due to 0.4 • Narrowed losses because of significant decreased OPEX (2.2) (0.1) (
Slide 22: Appendix
Appendix
Slide 23: Appendix: Q1'23 Reconciliation of Non-GAAP to GAAP
Appendix: Q1'23 Reconciliation of Non-GAAP to GAAP For the Three Months Ended For the Three Months Ended March 31, 2022 March 31, 2023 USD'000 USD'000 Reconciliation of operating expenses to non-GAAP operating expenses Research and development expenses (47,588) (28,051) Add: Share-based compensation