Tuya reports 28.6% revenue growth and first non-GAAP profit

SANTA CLARA, Calif. - Tuya Inc. (NYSE:TUYA; HKEX: 2391), a global cloud platform service provider, disclosed its unaudited financial outcomes for Q2 ended June 30, 2024, along with a special cash dividend announcement. The company recorded a 28.6% year-over-year increase in total revenue, reaching $73.3 million, driven by growth across its IoT Platform-as-a-Service (PaaS) and smart solution segments.

IoT PaaS revenue surged by 32.0% year over year to $54.3 million, while smart solution revenue jumped by 44.2% to $9.4 million. The company’s gross margin improved to 48.0%, up from 46.7% in the same quarter of the previous year.

In a significant turn of events, Tuya achieved its first positive quarterly non-GAAP operating margin at 10.0%, marking a substantial improvement from the negative 11.2% reported in Q2 2023. The net margin also saw a notable increase to 4.3%, up from a negative 41.3% year over year.

The company's cash position remains robust, with total cash and cash equivalents, time deposits, and treasury securities recorded as short-term and long-term investments totaling $1,000.1 million as of June 30, 2024.

Tuya's management expressed optimism about the company's trajectory, attributing the financial performance to strategic customer focus and product enhancements. The company's CEO, Jerry Wang, highlighted the milestone of achieving non-GAAP operating profit for the first time in their history, reflecting the effectiveness of Tuya’s business model and operational leverage.

CFO Jessie Liu pointed to the strong financial performance, emphasizing the increase in total revenue and the company's ability to attract new customers while strengthening existing partnerships.

Tuya's Board approved a special dividend of $0.0589 per ordinary share or ADS, with an aggregate amount of approximately $33 million, payable in U.S. dollars and funded by surplus cash. The record date for the special dividend is set for September 11, 2024, with expected payment dates of October 9, 2024, for ordinary shares and October 15, 2024, for ADSs.

The information in this article is based on a press release statement from Tuya Inc.

InvestingPro Insights

As Tuya Inc. (NYSE:TUYA; HKEX: 2391) announces its Q2 financial results and a special cash dividend, it's pertinent to look at the company through the lens of current financial metrics and InvestingPro Tips. With a market capitalization of $56.57 million, Tuya's financial position shows several strengths that may be of interest to investors considering the company's stock.

The company holds a Price to Earnings (P/E) ratio of 18.13, which suggests that investors are willing to pay $18.13 for every $1 of earnings, a figure that aligns with industry standards. The stability in Tuya's P/E ratio is further reflected in the adjusted P/E for the last twelve months as of Q3 2024, which stands at 18.25. This consistency indicates a steady perception of the company's earnings potential among investors.

InvestingPro Tips highlight that Tuya has maintained dividend payments for an impressive 21 consecutive years, showcasing a reliable return to shareholders. Additionally, the company's stock generally trades with low price volatility, providing a potential haven for investors seeking stability in their portfolio.

With a solid gross profit margin of 64.16% in the last twelve months as of Q3 2024, Tuya demonstrates its ability to retain a significant portion of its revenue as gross profit, indicating efficient operations and strong pricing power. This financial health is a crucial factor for investors, especially when considering the company's recent positive quarterly non-GAAP operating margin and net margin improvements.

For those interested in a deeper analysis, InvestingPro offers additional tips on Tuya Inc., which can be found by visiting https://www.investing.com/pro/2391. As the company navigates its growth trajectory, these insights can provide valuable context for investors looking to make informed decisions.

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