Tuya, Inc. · NYSE:TUYA
Tuya — Q3 2023 Earnings Presentation
26 slides from Tuya's earnings presentation, Nov 29, 2023
Slide 1: Third Quarter Fiscal 2023 Presentation
NYSE: TUYA / HKEX: 2391.HK Presentation Third Quarter Fiscal 2023 November 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: Key Financial Highlights in Q3'23
Key Financial Highlights in Q3'23 +36% Y/Y $10.1 Million $16.1 Million Total Revenue Non-GAAP1 Net Profits Operating Cash Generated ($61.1 million) (+567% Q/Q) (+114% Q/Q) Revenue demonstrated Achieved continuing Strong cash position the strong recovery quarterly profitability and balance sheet assu
Slide 4: Content
Content 1 Company Introduction 2 Key Topline and Financial Updates 3
Slide 5: Company Introduction
Company Introduction
Slide 6: Build an IoT Developer Ecosystem
Build an IoT Developer Ecosystem Enable Everything to Be Smart
Slide 7: The Largest Internet-of-Things (IoT) Cloud Development Platform Provider
#1 The Largest Internet-of-Things (IoT) Cloud Development Platform Provider 7,600+ 898,000 Global Customers Smart Device Served in 2022 SKUs as of September 30, 2023 909,000+ 1,600+ Düsseldorf SESA Europe Tokyo California Gurgaon East Asia, North Asia, APAC North America Dubai Shenzhen UAE China Med
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: 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 10: 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 11: 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 10
Slide 12: Endorsed by Global Leading Customers
Endorsed by Global Leading Customers 11
Slide 13: 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 14: Key Topline and Financial Updates
Key Topline and Financial Updates
Slide 15: 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% 43% 118% Y/Y Growth Excluding FX Impacts 45% 36% Revenue Y/Y 19% -3%
Slide 16: Quarterly Revenue Update
Quarterly Revenue Update Revenue Breakdown for The Third Quarter (USD'M) Total Revenue IoT PaaS Smart Device Distribution SaaS and Others YoY YoY YoY YoY +36% +48% +32% -5% 83.7% 46.7% 44.6% 73.9% 43.6% 37.2% 61.1 26.9% 45.0 45.8 12.9% 30.9 6.8 8.9 8.5 5.2 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q
Slide 17: Revenue Efficiency Improved to A Historical High Level in Q3
Revenue Efficiency Improved to A Historical High Level in Q3 Average Revenue Supported Average Gross Profit Supported Average Revenue Per Headcount Per Headcount Per Customer (USD'K) (USD'K) (USD'K) 18.2 39.0 20.0 15.5 33.3 16.9 14.3 19.4 8.5 Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q2'23 1.
Slide 18: Stably Increased Gross Margin Secures Long-term Profitability
Stably Increased Gross Margin Secures Long-term Profitability Gross Margin Stably Increased Overall blended GPM Overall gross margin 42% 43% 44% 45% 44% 47% 47% • Showcasing our highly recognized 41% 34% customer valuation proposition despite 26% macro headwinds. IoT PaaS IoT PaaS gross margin 42% 4
Slide 19: Operating Expense by Quarters
Operating Expense by Quarters Operating Expense, GAAP and Non-GAAP1 (USD'M) 85.6 83.9 77.2 78.3 Operating expenses ("OPEX") in Q3'23 decreased by 21.7% Y/Y mainly due to — 64.7 66.2 69.0 60.1 • Non-GAAP OPEX decreased by 26.2% 66.3 58.1 Y/Y mainly due to the decreases in basic 62.2 53.0 53.3 60.6 pa
Slide 20: Operating Loss by Quarters
Operating Loss by Quarters Operating Loss, GAAP and Non-GAAP1 (USD'M) (3.5) (6.4) Operating loss in Q3'23 narrowed by 54.3% 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) (26.5) (32.5) (32.3) (31.4) (32.8)
Slide 21: Achievement of Continuing Non-GAAP Quarterly Breakeven
Achievement of Continuing Non-GAAP Quarterly Breakeven Net Profit/(Loss), GAAP and Non-GAAP1 (USD'M) 10.1 1.5 Net loss in Q3'23 narrowed by 85.0% Y/Y mainly due to — (5.2) (3.7) (4.9) • Improvement in operating loss; (15.9) • US$13.1 million of interest income (18.7) achieved in Q3'23 due to treasur
Slide 22: 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 5.8 0.4 7.5 16.1 US$961 Million (0.1) Net cash1 as at September 30, 2023 (13.5) (18.9) (32.7) (46.1) (53.2) (57.4) 1. "Net cash" refers to cash
Slide 23: 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% 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 Q2'21
Slide 24: Key Business Growth Strategies
Key Business Growth Strategies 1 Further enhancement of product capabilities 2 Further expanding high-quality customer base 909,000 40.5% 3 Expand into non-consumer electronics sectors Developers1 y/y Growth Continuously strengthen developer platform, 4 creating competencies to efficiently serving h
Slide 25: Appendix
Appendix
Slide 26: Appendix: Q3'23 Reconciliation of Non-GAAP to GAAP
Appendix: Q3'23 Reconciliation of Non-GAAP to GAAP For the Three Months Ended For the Three Months Ended September 30, 2022 September 30, 2023 USD'000 USD'000 Reconciliation of operating expenses to non-GAAP operating expenses Research and development expenses (32,341) (24,946) Add: Share-based comp