Tuya, Inc. · NYSE:TUYA
Tuya — Q2 2024 Earnings Presentation
26 slides from Tuya's earnings presentation, August 2024
Slide 1: Presentation Second Quarter 2024
NYSE: TUYA / HKEX: 2391.HK Presentation Second Quarter 2024 August 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: Continual Growth with Profitability in Q2'24
Continual Growth with Profitability in Q2'24 $73.3Mn / +29% $20.8Mn / 28% $7.4Mn / 10% $11.8Mn / $1Bn Total Revenue / YoY Growth Non-GAAP1 Net Profits / Non-GAAP1 OP Profits / Net OP Cash Generated / Net Margin OP Margin Net Cash Balance2 (Q2'23: $57.0Mn) (Q2'23: $1.5Mn / 2.7%) (Q2'23: $-6.4Mn) (Q2'
Slide 4: Content
Content 1 Company Introduction 2 Key Topline and Financial Updates 3 Embracing Generative AI Across the Board 3
Slide 5: Company Introduction
Company Introduction
Slide 6: Build a Cloud Developer Ecosystem, Enable Everything to Be Smart
Build a Cloud Developer Ecosystem Enable Everything to Be Smart
Slide 7: Smart, Innovative, Tech-Driven, Ecological In IoT Field Worldwide
#1 The Largest Internet-of-Things (IoT) Cloud Developer Platform Provider 3,000 1,000,000 Global Customers Smart Device SKUs Served in Q2'24 as of June 30, 2024 1,192,000 2,000+ Düsseldorf SESA Europe Tokyo California Gurgaon East Asia, North Asia, APAC North America Dubai Shenzhen UAE China Medellí
Slide 8: We Deliver a Cloud-Native Software-Enabled Experience to End Users
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: Consecutive Quarters of YoY Growth Maintaining High Level
Consecutive Quarters of YoY Growth Maintaining High Level Total Revenue Y/Y Growth by Quarter (%) 73.3 64.4 61.7 61.1 57.0 45.0 45.3 47.5 42% 31% Y/Y Growth 36% Excluding FX Impacts 30% 29% Macroeconomic Downturn： -9% Macroeconomic/Downstream Recovery, the Start of New Cycle High Inflation & Invento
Slide 14: Revenue Update
Revenue Update Revenue Breakdown, The Second Quarter (USD'M) Total Revenue IoT PaaS Smart Solution SaaS and Others YoY YoY YoY YoY +29% +32% +44% +2% 73.3 54.3 57.0 41.1 9.4 9.4 9.6 6.5 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Note: Numbers are rounded for presentation purposes. 13
Slide 15: Revenue Efficiency Maintained High Level in Q2'24
Revenue Efficiency Maintained High Level in Q2'24 Average Revenue Supported Average Gross Profit Supported Average Revenue Per Headcount Per Headcount Per Customer (USD'K) (USD'K) (USD'K) 50.9 24.4 24.0 33.3 16.9 15.5 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Note: Numbers are rounded for presentation pur
Slide 16: 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 44.6% 46.7% 46.7% 47.3% 47.8% 48.0% 42.3% 41.2% 42.8% 43.6% 44.3% 34.4% 26.3% IoT PaaS SaaS and Others Smart Solution IoT PaaS gross margin 7% 44.2% 44.6% 44.8% 46.4% 47.6
Slide 17: First-time Achieved Quarterly Non-GAAP Operating Profit
First-time Achieved Quarterly Non-GAAP Operating Profit Operating Profit/(Loss), GAAP and Non-GAAP1 (USD'M) 7.4 10% Non-GAAP Operating loss in Q2'24 OP Margin narrowed by 67.1% Y/Y mainly due to — (0.3) (0.6) (3.5) (15.3) (15.0) (6.4) • Gross profit increased significantly Y/Y; (10.3) (22.3) (23.7)
Slide 18: Achievement of Continuing Non-GAAP Quarterly Profitability
Achievement of Continuing Non-GAAP Quarterly Profitability Net Profit/(Loss), GAAP and Non-GAAP1 (USD'M) 20.8 12.6 12.3 10.1 1.5 3.1 First-time achieved a net profit of $3.1 million in Q2’24, mainly due to — (15.9) (5.2) (3.7) (4.9) (3.5) (18.7) • Improvement in operating loss; (23.1) (10.8) • US$12
Slide 19: Operating Cash Flow by Quarters
Operating Cash Flow by Quarters Net Cash Generated from/(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 31.8 US$1 Billion Net cash1 16.1 on June 30, 2024 14.5 11.8 5.8 7.5 0.4 (0.1) (13.5) US$33 Million (18.9) First-time dividend e
Slide 20: 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% 8.8% 8.0% 8.4% 8.3% 8.2% such as account payable, salary 7.4% payable, advance from customers, et
Slide 21: Key Business Growth Strategies
Key Business Growth Strategies 1 Further enhancement of product capabilities 2 Further expanding high-quality customer base 3 Expand into non-consumer electronics sectors 1,192,000 40.8% Developers1 y/y Growth Continuously strengthen developer platform, 4 creating competencies to efficiently serving
Slide 22: GenAI is Poised to Significantly Enhance The User Experience in Consumer Electronics
GenAI is Poised to Significantly Enhance The User Experience in Consumer Electronics Smart Light Strips Smart Pet Camera Interpretation With Customizable Capture & Share Joyful Colors Moment Voice Simple Conversational Auto AI-Driven Precision in Capturing Interaction Control Recognition Cherished M
Slide 23: GenAI Will Lower the User Barriers Significantly, Bringing Smart Devices into Every Home
GenAI Will Lower the User Barriers Significantly, Bringing Smart Devices into Every Home AI Assistant My lock is online? According to the results, the current GenAI-Powered Terminal status of your S1 Pro Lock is [Online]. If there is any problems, please let me know! Elevating Smart Living to a New
Slide 24: GenAI Will Greatly Boost Developer Efficiency & Deliver Profound Customer Insights
GenAI Will Greatly Boost Developer Efficiency & Deliver Profound Customer Insights Developer Platform Welcome to use Tuya Developer Platform！ Chat Search Documents Please let me know if there is any problems. Except for providing consultation, I can also help you content creating, translation and et
Slide 25: Appendix
Appendix
Slide 26: Appendix: Q2'24 Reconciliation of Non-GAAP to GAAP
Appendix: Q2'24 Reconciliation of Non-GAAP to GAAP For the Three Months Ended For the Three Months Ended June 30, 2023 June 30, 2024 USD'000 USD'000 Reconciliation of operating expenses to non-GAAP operating expenses Research and development expenses (26,474) (22,993) Add: Share-based compensation 4