Tuya Inc. (TUYA) Reports Q1 Loss of $0.09 on Revenues of $56.9M

Tuya Inc. (NYSE: TUYA) reported Q1 EPS of ($0.09), versus ($0.08) reported last year. Revenue for the quarter came in at $56.9 million, versus $18.95 million reported last year.

First Quarter 2021 Financial Highlights

• Total revenue was US$56.9 million, up approximately 200% year over year (1Q2020: US$18.9 million).
• IoT PaaS revenue was US$49.8 million, up approximately 227% year over year (1Q2020: US$15.2 million).
• SaaS and other revenue was US$2.3 million, up approximately 224% year over year (1Q2020: US$0.7 million).
• Overall gross margin for the quarter increased to 41.1%, up 10.8 percentage points year over year (1Q2020: 30.3%). Gross margin of IoT PaaS for the quarter increased to 41.7%, up 11.2 percentage points year over year (1Q2020: 30.5%).
• Operating margin for the quarter was negative 72.6%, up 42.4 percentage points year over year (1Q2020: negative 115.0%). Excluding the impact of share-based compensation expenses, non-GAAP operating margin for the quarter was negative 43.1%, up 62.3 percentage points year over year (1Q2020: negative 105.4%).
• Total cash, cash equivalents, and short-term investments were US$1,223.3 million as of March 31, 2021 compared to US$179.8 million as of December 31, 2020.
• Net cash used in operating activities for the quarter was US$32.7 million, or 57.4% of total revenue, compared to US$31.0 million, or 163.8% of total revenue in the first quarter of 2020.

Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, "Our first quarter results were distinguished by strong revenue growth as we leveraged our leading technology and brand reputation to capitalize on growing market demand. Our total revenues increased by 200% year over year, primarily driven by the 227% year-over-year growth in revenues from our primary IoT PaaS business. Demand for smart devices continues to look promising. We are starting to see consumers develop new post-pandemic habits of smart device usage, resulting in greater demand for our innovative, highly-scalable cloud platform, products and service, in the IoT market. To capitalize on these market trends, we continued to cultivate sustainable growth in demand from our existing customers by empowering them to quickly develop and take competitive and cost-effective IoT devices to market with very little R&D investment. Many of these customers have become IoT leaders in their respective industries, and are accelerating product development on our platforms. As these IoT leaders develop more products on our platform, this grows the network effect of our ecosystem and attracts new brands to develop on our platform to benefit from synergies with Tuya powered brands and products. Meanwhile, we continue to expand our services to support entirely new product categories, while continuing to refine and grow our SaaS offerings. These initiatives, along with our continued investment in our leading technology and our people, have positioned us well to maintain our leadership and capitalize on the rapid growth in the IoT industry."

Ms. Yao (Jessie) Liu, Senior Vice President and Chief Financial Officer of Tuya, added, "We achieved robust growth in the first quarter by delivering total revenues of $56.9 million and beating street consensus estimates. Our gross margin improved to 41.1% from 30.3% a year ago, as our IoT PaaS gross margin improved to 41.7% from 30.5% a year ago. We have now achieved nine consecutive quarters of gross margin improvements for our IoT PaaS segment. These results highlight our ability to deliver continued growth while also improving our efficiency through effective R&D, further expansion into higher-margin product lines, and increasing economies of scale."

For earnings history and earnings-related data on Tuya Inc. (TUYA) click here.

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