Tuya, Inc. · NYSE:TUYA
Tuya — Q2 2021 Earnings Presentation
14 slides from Tuya's earnings presentation, Aug 18, 2021
Slide 1: Investor Presentation Second Quarter 2021
Investor Presentation Second Quarter 2021 August 18, 2021
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: Build an IoT Developer Ecosystem, Enable Everything to Be Smart
Build an IoT Developer Ecosystem Enable Everything to Be Smart
Slide 4: Expanding Customers and Product Lines
Expanding Customers and Product Lines Selected IoT PaaS Selected Product Line Updates and SaaS Customers Smart Professional Smart Furniture Storage Smart height-adjustable Smart wine tables and chairs Cold storage Smart Appliance Smart Pet Smart soap dispenser Smart pet leashes ~2,600 IoT PaaS custo
Slide 5: Expanding Developer Ecosystem
Expanding Developer Ecosystem 384,000 Developers +20% Quarter over Quarter | +90% Year over Year Note: As of June 30, 2021. 4
Slide 6: Continue to Invest Heavily in Data Security and Privacy Protection
Continue to Invest Heavily in Data Security and Privacy Protection Security Defense Privacy System Protection Audits — Tuya practice — — New certificate — The data trinity for establishing a comprehensive, Passed the assessment for IoT security certification from guaranteed system to ensure the high
Slide 7: Strong Revenue Growth
Strong Revenue Growth Total revenue (USD'M) $84.7 $63.0 $59.1 $56.9 $33.5 $34.2 $38.8 +118% Q2 Total Revenue $21.8 $16.3 $18.9 Y/Y Growth Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 6
Slide 8: Strong Revenue Growth: Revenue Breakdown
Strong Revenue Growth Revenue breakdown IoT PaaS SaaS and Others Smart Device Distribution (USD'M) (USD'M) (USD'M) YoY YoY YoY +164% +171% -48% $76.9 $29.1 $8.5 $3.4 $4.4 $1.2 Q2'20 Q2'21 Q2'20 Q2'21 Q2'20 Q2'21 7
Slide 9: World-Class Dollar-Based Net Expansion Rate
World-Class Dollar-Based Net Expansion Rate 210% 211% 188% 179% 181% 173% 160% Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Note: Tuya calculates dollar-based net expansion rate of IoT PaaS for a trailing 12-month period by first identifying all customers in the prior 12-month period (i.e., those who h
Slide 10: Strong Momentum in Large Customer Growth
Strong Momentum in Large Customer Growth Premium IoT PaaS customers1 Average LTM IoT PaaS revenue2 Contributed ~87% of Q2'21 IoT PaaS revenue Per premium IoT PaaS customer (USD'K) 285 730 706 188 127 510 Q4'19 Q4'20 Q2'21 Q4'19 Q4'20 Q2'21 1. Tuya defines a premium IoT PaaS customer as a customer as
Slide 11: Improving Gross Margin
Improving Gross Margin Overall gross margin +12 pps 41% 42% 38% 34% 30% 30% Improvement drivers 28% 25% 26% 24% • Increased economies of scale and cost savings Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 • Improved efficiency IoT PaaS gross margin +9 pps achieved through 42% 42% effe
Slide 12: Significantly Increasing Operating Leverage
Significantly Increasing Operating Leverage Non-GAAP operating margin Net cash used in operating and net margin1 activities2 as % of revenue Leverage drivers • Strong growth with healthy margins (9)% • Well-controlled S&M (27)% (31)% • Systematic and targeted R&D (34)% (36)% (18)% • Disciplined inte
Slide 13: Building an IoT Developer Ecosystem, Enabling Everything to Be Smart
Building an IoT Developer Ecosystem Enabling Everything to Be Smart
Slide 14: Appendix: Reconciliation of Non-GAAP to GAAP
Appendix: Reconciliation of Non-GAAP to GAAP For the Three Months Ended For the Three Months Ended June 30, 2020 June 30, 2021 USD'000 USD'000 Reconciliation of operating expenses to non-GAAP operating expenses Research and development expenses (16,086) (42,657) Add: Share-based compensation 406 2,9