SANTA
CLARA, Calif., Aug. 23,
2023 /PRNewswire/ -- Tuya Inc. ("Tuya" or the
"Company") (NYSE: TUYA; HKEX: 2391), a global leading IoT
cloud development platform, today announced its unaudited financial
results for the second quarter ended June
30, 2023.
Second Quarter 2023 Financial Highlights
- Total revenue was US$57.0
million, down approximately 8.9% year over year (2Q2022:
US$62.5 million).
- IoT platform-as-a-service ("PaaS") revenue was
US$41.1 million, down approximately
13.5% year over year (2Q2022: US$47.6
million).
- Software-as-a-service ("SaaS") and others revenue was
US$9.4 million, up approximately
30.2% year over year (2Q2022: US$7.2
million).
- Overall gross margin increased to 46.7%, up 3.9
percentage points year over year (2Q2022: 42.8%). Gross margin of
IoT PaaS increased to 44.2%, up 1.7 percentage points year over
year (2Q2022: 42.5%).
- Operating margin was negative 55.1%, up 8.0 percentage
points year over year (2Q2022: negative 63.1%). Non-GAAP
operating margin was negative 11.2%, up 24.4 percentage points
year over year (2Q2022: negative 35.6%).
- Net margin was negative 41.3%, up 16.0 percentage points
year over year (2Q2022: negative 57.3%). Non-GAAP net margin
was 2.7%, improving by 32.6 percentage points year over year
(2Q2022: negative 29.9%), achieving quarterly break-even for the
first time.
- Net cash generated from operating activities was
US$7.5 million, up 1,769.1% year over
year (2Q2022: US$0.4 million).
- Total cash and cash equivalents, and short-term
investments were US$942.3 million
as of June 30, 2023, compared to
US$954.3 million as of December 31, 2022.
Second Quarter 2023 Operating Highlights
- IoT PaaS customers[1] for the second quarter
2023 were approximately 2,300 (2Q2022: approximately 2,800). Total
customers for the second quarter 2023 were approximately 3,300
(2Q2022: approximately 4,100). The Group's implementation of its
key-account strategy enabled it to be more focused on serving
strategic customers.
- Premium IoT PaaS customers[2] for the
trailing 12 months ended June 30,
2023 were 251 (2Q2022: 267). In the second quarter 2023, the
Group's premium IoT PaaS customers contributed approximately 79.8%
of its IoT PaaS revenue (2Q2022: approximately 82.4%). The decrease
in premium IoT PaaS customers was primarily attributable to a
reduction in order size among certain previous premium customers,
thus falling below the premium customer revenue contribution
threshold for the trailing 12 months ended June 30, 2023.
- Dollar-based net expansion rate ("DBNER")[3]
of IoT PaaS for the trailing 12 months ended June 30, 2023 was 58% (2Q2022: 84%).
- Registered IoT device and software developers
("registered developers") were over 846,000 as of
June 30, 2023, up 19.6% from
approximately 708,000 developers as of December 31, 2022.
1. The Group defines an IoT PaaS customer for a given
period as a customer who has directly placed orders for IoT PaaS
with the Group during that period.
2. The Group defines a premium IoT PaaS customer as a
customer as of a given date that contributed more than US$100,000 of IoT PaaS revenue during the
immediately preceding 12-month period.
3. The Group calculates DBNER of IoT PaaS for a trailing
12-month period by first identifying all customers in the prior
12-month period (i.e., those have placed at least one order for IoT
PaaS during that period), and then calculating the quotient from
dividing the IoT PaaS revenue generated from such customers in the
current trailing 12-month period by the IoT PaaS revenue generated
from the same group of customers in the prior 12-month period. The
Group's DBNER may change from period to period, due to a
combination of various factors, including changes in the customers'
purchase cycles and amounts and the Group's customer mix, among
other things. DBNER indicates the Group's ability to expand
customer use of the Tuya platform over time and generate revenue
growth from existing customers.
Mr. Xueji (Jerry) Wang, Founder
and Chief Executive Officer of Tuya, commented, "Throughout the
first half of 2023, against the backdrop of a changing
macroeconomic environment, Tuya has consistently demonstrated
resilience and adaptability, which can be attributable to our
strategic focus on prioritizing highest-value customers. This
approach has not only driven our sequential revenue growth but also
optimized our operational efficiency. Now, as we observe a global
recovery in business activities and an encouraging trend in IoT
smart device sales, there's an indication of a rebound in our
sector. With our renewed strategic emphasis on superior customer
service, enhancements in software and hardware offerings, and
strengthened value propositions for enterprises across the value
chain, we are well-positioned to seize these emerging
opportunities. We stand ready to embrace the promising future and
Tuya's next growth chapter."
Ms. Yao (Jessie) Liu, Director
and Chief Financial Officer of Tuya, added, "In the second quarter
of 2023, we achieved a significant milestone by recording a
non-GAAP net profit of approximately $1.5
million, marking the first fiscal quarter that we achieved
break-even profitability on a non-GAAP basis. We also generated a
positive operating cash flow of $7.5
million. Our strong financial performance in the quarter is
a testament to the dedication of our team and the strategic
decisions that have shaped our trajectory over the past two years.
Additionally, through ongoing refinements to our cost and expense
structure, we further enhanced our operating efficiency, enabling
us to strategically allocate resources more effectively. As we hone
our investment focus on core areas, we remain confident in our
trajectory towards sustained growth and in capturing emerging
market opportunities."
Second Quarter 2023 Unaudited Financial Results
REVENUE
Total revenue in the second quarter of 2023 decreased by 8.9% to
US$57.0 million from US$62.5 million in the same period of 2022,
mainly due to the decrease in IoT PaaS revenue and smart device
distribution revenue, partially offset by the increase in SaaS and
others revenue.
- IoT PaaS revenue in the second quarter of 2023 decreased by
13.5% to US$41.1 million from
US$47.6 million in the same period of
2022. During the quarter, the Group's customers remained cautious
in their purchase decisions. This was primarily due to ongoing
inventory backlog pressure in the downstream supply chain,
resulting from a mismatch between supply and demand in the
discretionary consumer electronics sector. Additionally,
discretionary consumer electronics spending across certain
categories remained soft in multiple regions. Furthermore, the
decrease was in part due to an adverse impact of US$2.5 million, or 5.3 percentage points, caused
by foreign exchange rate fluctuations compared to the same period
of 2022. As a result of these factors, the Group's DBNER of IoT
PaaS for the trailing 12 months ended June
30, 2023 decreased to 58% compared to previous periods.
- SaaS and others revenue in the second quarter of 2023 increased
by 30.2% to US$9.4 million from
US$7.2 million in the same period of
2022. During the quarter, the Group remained committed to offering
value-added services ("VAS") and various software products
with strong value propositions, including SaaS solutions and Cube
solution, to its customers.
- Smart device distribution revenue in the second quarter of 2023
decreased by 16.3% to US$6.5 million
from US$7.8 million in the same
period of 2022, primarily due to the fluctuating timing and volume
of customer demands and purchases.
COST OF REVENUE
Cost of revenue in the second quarter of 2023 decreased by 15.1%
to US$30.4 million from US$35.8 million in the same period of 2022,
generally in line with the decrease in total revenue.
GROSS PROFIT AND GROSS MARGIN
Total gross profit in the second quarter of 2023 decreased by
0.5% to US$26.6 million from
US$26.8 million in the same period of
2022 and gross margin increased to 46.7% in the second quarter of
2023 from 42.8% in the same period of 2022.
- IoT PaaS gross margin in the second quarter of 2023 was 44.2%,
compared to 42.5% in the same period of 2022. The improved gross
margin was primarily due to the changes in product mix and a lower
provision recorded for certain slow-moving IoT chips and raw
material inventory in relation to the IoT PaaS business during the
second quarter of 2023.
- SaaS and others gross margin in the second quarter of 2023 was
74.5%, compared to 78.9% in the same period of 2022.
- Smart device distribution gross margin in the second quarter of
2023 was 23.0%, compared to 11.4% in the same period of 2022,
primarily due to higher-value products solution we provided to our
customers during the second quarter of 2023.
OPERATING EXPENSES
Operating expenses decreased by 12.3% to US$58.1 million in the second quarter of 2023
from US$66.2 million in the same
period of 2022.
Non-GAAP operating expenses, defined as operating expenses
excluding share-based compensation expenses and credit-related
impairment of long-term investments, decreased by 32.7% to
US$33.0 million in the second quarter
of 2023 from US$49.1 million in the
same period of 2022. Share-based compensation expenses in the
second quarter of 2023 were US$17.0
million, compared to US$17.2
million in the same period of 2022. Credit-related
impairment of long-term investments was US$8.1 million in the second quarter of 2023,
compared to nil in the same period of 2022.
- Research and development expenses in the second quarter of 2023
were US$26.5 million, down 28.9% from
US$37.2 million in the same period of
2022, primarily because of the Group's strategic streamlining of
its research and development team and operations. During this
quarter, average salaried employee headcount of the Group's
research and development team was down approximately 34.2% year
over year, compared to the same quarter in last year. Non-GAAP
adjusted research and development expenses in the second quarter of
2023 were US$22.5 million, compared
to US$33.8 million in the same period
of 2022.
- Sales and marketing expenses in the second quarter of 2023 were
US$9.8 million, down 34.8% from
US$15.1 million in the same period of
2022, primarily because of (i) the Group's strategic streamlining
of its sales and marketing team, and (ii) the Group's efforts to
control expenditure and improve sales and marketing efficiency.
Non-GAAP adjusted sales and marketing expenses in the second
quarter of 2023 were US$8.2 million,
compared to US$13.2 million in the
same period of 2022.
- General and administrative expenses in the second quarter of
2023 were US$24.3 million, compared
to US$17.1 million in the same period
of 2022, primarily due to (i) the credit-related impairment loss of
US$8.1 million of long-term
investments, (ii) the Group's strategic streamlining of its general
and administrative team, and (iii) the Group's efforts to control
professional expenditure. Non-GAAP adjusted general and
administrative expenses in the second quarter of 2023 were
US$4.8 million, compared to
US$5.3 million in the same period of
2022.
- Other operating income, net in the second quarter of 2023 was
US$2.5 million, primarily due to the
receipts of software value-added tax ("VAT") refunds and various
general subsidies for enterprises.
LOSS FROM OPERATIONS AND OPERATING MARGIN
Loss from operations in the second quarter of 2023 narrowed by
20.4% to US$31.4 million from
US$39.5 million in the same period of
2022. Non-GAAP loss from operations in the second quarter of 2023
narrowed by 71.5% to US$6.4 million
from US$22.3 million in the same
period of 2022.
Operating margin in the second quarter of 2023 was negative
55.1%, up 8.0 percentage points from negative 63.1% in the same
period of 2022. Non-GAAP operating margin in the second quarter of
2023 was negative 11.2%, up 24.4 percentage points from negative
35.6% in the same period of 2022.
NET LOSS/PROFIT AND NET MARGIN
Net loss in the second quarter of 2023 narrowed by 34.3% to
US$23.5 million from US$35.9 million in the same period of 2022. The
difference between loss from operations and net loss in the second
quarter of 2023 was primarily because of a US$12.1 million interest income achieved mainly
due to well implemented treasury strategies on the Group's cash and
deposits recorded as short investment.
The Group had a non-GAAP net profit of US$1.5 million in the second quarter of 2023,
improved by 108.1% from a non-GAAP net loss of US$18.7 million in the same period of 2022,
marking it the first fiscal quarter that the Group has achieved
break-even profitability on a non-GAAP basis.
Net margin in the second quarter of 2023 was negative 41.3%, up
16.0 percentage points from negative 57.3% in the same period of
2022. Non-GAAP net margin in the second quarter of 2023 was 2.7%,
up 32.6 percentage points from negative 29.9% in the same period of
2022.
BASIC AND DILUTED NET LOSS/PROFIT PER ADS
Basic and diluted net loss per ADS was US$0.04 in the second quarter of 2023, compared
to US$0.07 in the same period of
2022. Each ADS represents one Class A ordinary share.
Non-GAAP basic and diluted net profit per ADS was US$0.00 in the second quarter of 2023, compared
to non-GAAP basic and diluted net loss of US$0.03 in the same period of 2022.
CASH AND CASH EQUIVALENTS, AND SHORT-TERM
INVESTMENTS
Cash and cash equivalents, and short-term investments were
US$942.3 million as of June 30, 2023, compared to US$954.3 million as of December 31, 2022, which the Group believes is
sufficient to meet its current liquidity and working capital
needs.
NET CASH GENERATED FROM OPERATING ACTIVITIES
Net cash generated from operating activities for the second
quarter of 2023 was US$7.5 million,
up 1,769.1% compared to US$0.4
million in the same period of 2022. The net cash generated
from the second quarter of 2023 improved mainly due to the
significant decrease in operating expenses, particularly
employee-related costs, and working capital changes in the ordinary
course of business.
For further information on non-GAAP financial measures presented
above, see the section headed "Use of Non-GAAP Financial
Measures."
Business Outlook
With further relief in global inflation, discretionary consumer
spending in the consumer electronic industry worldwide is expected
to gradually navigate out of the headwinds experienced over the
past two years. While some of the challenges persist, we are
beginning to observe encouraging signs of recovery in various
areas. For instance, inventory backlog experienced by downstream
participants in the supply chain is steadily easing, and spending
in many types of consumer electronic devices is showing a rebound.
Although high global inflation may have lasting effects on consumer
habits and business operations, a shift in consumer spending
preference towards necessities and more economical purchases,
combined with businesses seeking greater stability and
sustainability, bring new opportunities with enterprises centred
around offering value-driven technologies and solutions.
In response to this evolving market environment, the Group will
remain committed to continuously iterating its products and
services, further enhancing software and hardware capabilities,
expanding key customer base, investing in innovations and new
opportunities, diversifying revenue streams, and further optimizing
operating efficiency. At the same time, the Group remains cognizant
that future trajectories may yet present challenges, ranging from
consumer spending patterns and regional economic disparities to
inventory management, foreign exchange rate volatility, and broader
geopolitical uncertainties.
Conference Call Information
The Company's management will hold a conference call at
08:30 P.M. Eastern Time on Wednesday,
August 23, 2023 (08:30 A.M. Beijing
Time on Thursday, August 24, 2023) to
discuss the financial results. In advance of the conference call,
all participants must use the following link to complete the online
registration process. Upon registering, each participant will
receive access details for this conference including a conference
access code, a PIN number (personal access code), the dial-in
number, and an e-mail with detailed instructions to join the
conference call.
Online registration:
https://www.netroadshow.com/events/login?show=b53fb1d3&confId=53630
The replay will be accessible through August 30, 2023 by dialing the following
numbers:
International:
|
+1-929-458-6194
|
United
States:
|
+1-866-813-9403
|
Access Code:
|
762683
|
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
https://ir.tuya.com.
About Tuya Inc.
Tuya Inc. (NYSE: TUYA; HKEX: 2391) is a global leading IoT cloud
development platform with a mission to build an IoT developer
ecosystem and enable everything to be smart. Tuya has pioneered a
purpose-built IoT cloud development platform that delivers a full
suite of offerings, including Platform-as-a-Service, or PaaS, and
Software-as-a-Service, or SaaS, to businesses and developers.
Through its IoT cloud development platform, Tuya has enabled
developers to activate a vibrant IoT ecosystem of brands, OEMs,
partners and end users to engage and communicate through a broad
range of smart devices.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses
non-GAAP measures, such as non-GAAP operating expenses, non-GAAP
loss from operations (including non-GAAP operating margin),
non-GAAP net (loss)/profit (including non-GAAP net margin), and
non-GAAP basic and diluted net (loss)/profit per ADS, as
supplemental measures to review and assess its operating
performance. The presentation of non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
generally accepted accounting principles in the United States of America ("U.S.
GAAP"). The Company defines non-GAAP measures by excluding the
impact of share-based compensation expenses and credit-related
impairment of long-term investments from the respective GAAP
measures. The Company presents the non-GAAP financial measures
because they are used by the management to evaluate its operating
performance and formulate business plans. The Company also believes
that the use of the non-GAAP measures facilitates investors'
assessment of its operating performance.
Non-GAAP financial measures are not defined under U.S. GAAP and
are not presented in accordance with U.S. GAAP. Non-GAAP financial
measures have limitations as analytical tools. One of the key
limitations of using the aforementioned non-GAAP financial measures
is that they do not reflect all items of expenses that affect the
Company's operations. Share-based compensation expenses and
credit-related impairment of long-term investments have been and
may continue to be incurred in the business and are not reflected
in the presentation of non-GAAP financial measures. Further, the
non-GAAP financial measures may differ from the non-GAAP
information used by other companies, including peer companies, and
therefore their comparability may be limited. The Company
compensates for these limitations by reconciling the non-GAAP
financial measures to the nearest U.S. GAAP performance measures,
all of which should be considered when evaluating the Company's
performance. The Company encourages you to review its financial
information in its entirety and not rely on a single financial
measure.
Reconciliations of Tuya's non-GAAP financial measures to the
most comparable U.S. GAAP measures are included at the end of this
press release.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Statements that
are not historical facts, including statements about the Company's
beliefs, and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and a number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement. In some cases, forward-looking statements can be
identified by words or phrases such as "may", "will", "expect",
"anticipate", "target", "aim", "estimate", "intend", "plan",
"believe", "potential", "continue", "is/are likely to" or other
similar expressions. Further information regarding these and other
risks, uncertainties or factors is included in the Company's
filings with the SEC. The forward-looking statements included in
this press release are only made as of the date hereof, and the
Company disclaims any obligation to publicly update any
forward-looking statement to reflect subsequent events or
circumstances, except as required by law. All forward-looking
statements should be evaluated with the understanding of their
inherent uncertainty.
Investor Relations Contact
Tuya Inc.
Investor Relations
Email: ir@tuya.com
The Blueshirt Group
Gary Dvorchak, CFA
Phone: +1 (323) 240-5796
Email: gary@blueshirtgroup.com
TUYA INC.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
AS OF DECEMBER 31,
2022 AND JUNE 30, 2023
|
(All amounts in US$
thousands ("US$"), except for share and per share
data,
|
unless otherwise
noted)
|
|
|
As of
December 31,
|
As of
June
30,
|
|
2022
|
2023
|
|
US$
|
US$
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
133,161
|
86,266
|
Restricted
cash
|
–
|
8,276
|
Short-term
investments
|
821,134
|
856,028
|
Accounts receivable,
net
|
12,172
|
13,083
|
Notes receivable,
net
|
2,767
|
3,336
|
Inventories, net
|
45,380
|
37,023
|
Prepayments and other
current assets, net
|
8,752
|
8,077
|
|
|
|
|
|
|
Total current
assets
|
1,023,366
|
1,012,089
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
Property, equipment
and software, net
|
3,827
|
2,627
|
Operating lease
right-of-use assets, net
|
9,736
|
7,057
|
Long-term
investments
|
18,031
|
16,947
|
Other non-current
assets, net
|
1,179
|
618
|
|
|
|
|
|
|
Total non-current
assets
|
32,773
|
27,249
|
|
|
|
|
|
|
Total
assets
|
1,056,139
|
1,039,338
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
9,595
|
9,221
|
Advance from
customers
|
27,633
|
25,623
|
Deferred revenue,
current
|
6,821
|
6,310
|
Accruals and other
current liabilities
|
33,383
|
32,957
|
Lease liabilities,
current
|
3,850
|
3,244
|
|
|
|
|
|
|
Total current
liabilities
|
81,282
|
77,355
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
Lease liabilities,
non-current
|
5,292
|
3,907
|
Deferred revenue,
non-current
|
394
|
407
|
Other non-current
liabilities
|
7,004
|
5,447
|
|
|
|
|
|
|
Total non-current
liabilities
|
12,690
|
9,761
|
|
|
|
|
|
|
Total
liabilities
|
93,972
|
87,116
|
|
|
|
TUYA INC.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (CONTINUED)
|
AS OF DECEMBER 31,
2022 AND JUNE 30, 2023
|
(All amounts in US$
thousands ("US$"), except for share and per share
data,
|
unless otherwise
noted)
|
|
|
As of
December 31,
|
As of
June
30,
|
|
2022
|
2023
|
|
US$
|
US$
|
|
|
(Unaudited)
|
|
|
|
Shareholders'
equity:
|
|
|
Class A ordinary
shares
|
25
|
25
|
Class B ordinary
shares
|
4
|
4
|
Treasury
stock
|
(86,438)
|
(68,514)
|
Additional paid-in
capital
|
1,584,764
|
1,600,206
|
Accumulated other
comprehensive loss
|
(22,115)
|
(20,372)
|
Accumulated
deficit
|
(514,073)
|
(559,127)
|
|
|
|
|
|
|
Total shareholders'
equity
|
962,167
|
952,222
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
1,056,139
|
1,039,338
|
|
|
|
TUYA INC.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
|
(All amounts in US$
thousands ("US$"), except for share and per share data, unless
otherwise noted)
|
|
|
For the Three Months
Ended
|
For the Six Months
Ended
|
|
|
|
|
June 30,
2022
|
June
30,
2023
|
June 30,
2022
|
June
30,
2023
|
|
|
|
|
|
Revenue
|
62,547
|
57,004
|
117,871
|
104,489
|
Cost of
revenue
|
(35,777)
|
(30,363)
|
(68,281)
|
(56,820)
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
26,770
|
26,641
|
49,590
|
47,669
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development expenses
|
(37,221)
|
(26,474)
|
(84,809)
|
(54,525)
|
Sales and marketing
expenses
|
(15,061)
|
(9,826)
|
(30,339)
|
(20,085)
|
General and
administrative expenses
|
(17,130)
|
(24,273)
|
(35,160)
|
(41,066)
|
Other operating
incomes, net
|
3,182
|
2,514
|
5,776
|
4,294
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
(66,230)
|
(58,059)
|
(144,532)
|
(111,382)
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(39,460)
|
(31,418)
|
(94,942)
|
(63,713)
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
|
|
Other non-operating
incomes, net
|
694
|
778
|
1,347
|
1,556
|
Financial income,
net
|
1,428
|
7,305
|
1,549
|
18,775
|
Foreign exchange gain,
net
|
1,627
|
937
|
1,526
|
903
|
|
|
|
|
|
|
|
|
|
|
Loss before income
tax expense
|
(35,711)
|
(22,398)
|
(90,520)
|
(42,479)
|
Income tax
expense
|
(158)
|
(1,151)
|
(302)
|
(2,115)
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(35,869)
|
(23,549)
|
(90,822)
|
(44,594)
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Tuya Inc.
|
(35,869)
|
(23,549)
|
(90,822)
|
(44,594)
|
|
|
|
|
|
|
|
|
|
|
Net loss attribute
to ordinary shareholders
|
(35,869)
|
(23,549)
|
(90,822)
|
(44,594)
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(35,869)
|
(23,549)
|
(90,822)
|
(44,594)
|
Other comprehensive
(loss)/income
|
|
|
|
|
Changes in fair value
of long-term investments
|
(1,146)
|
(1,053)
|
(1,146)
|
(1,053)
|
Transfer out of fair
value changes of
long-term
investments
|
–
|
8,050
|
–
|
8,050
|
Foreign currency
translation
|
(8,699)
|
(6,882)
|
(8,050)
|
(5,254)
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss attributable to Tuya Inc.
|
(45,714)
|
(23,434)
|
(100,018)
|
(42,851)
|
|
|
|
|
|
TUYA INC.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(CONTINUED)
|
(All amounts in US$
thousands ("US$"), except for share and per share data, unless
otherwise
noted)
|
|
|
For the Three Months
Ended
|
For the Six Months
Ended
|
|
|
|
|
June 30,
2022
|
June
30,
2023
|
June 30,
2022
|
June
30,
2023
|
|
|
|
|
|
Net loss attributable
to Tuya Inc.
|
(35,869)
|
(23,549)
|
(90,822)
|
(44,594)
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to ordinary shareholders
|
(35,869)
|
(23,549)
|
(90,822)
|
(44,594)
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used in
computing net loss per
share, basic and diluted
|
550,172,103
|
554,945,739
|
553,471,745
|
554,472,706
|
|
|
|
|
|
Net loss per share
attributable to ordinary
shareholders, basic
and diluted
|
(0.07)
|
(0.04)
|
(0.16)
|
(0.08)
|
|
|
|
|
|
Share-based
compensation expenses were
included
in:
|
|
|
|
|
Research and
development expenses
|
3,452
|
4,006
|
7,582
|
8,123
|
Sales and marketing
expenses
|
1,847
|
1,620
|
3,500
|
3,226
|
General and
administrative expenses
|
11,871
|
11,386
|
23,744
|
22,983
|
TUYA INC.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(All amounts in US$
thousands ("US$"), except for share and per share data, unless
otherwise
noted)
|
|
|
For the Three Months
Ended
|
For the Six Months
Ended
|
|
|
|
|
June 30,
2022
|
June
30,
2023
|
June 30,
2022
|
June
30,
2023
|
|
|
|
|
|
Net cash generated
from/(used in) operating activities
|
401
|
7,495
|
(56,973)
|
(11,387)
|
Net cash (used
in)/generated from investing activities
|
(112,848)
|
11,489
|
(254,789)
|
(22,335)
|
Net cash (used
in)/generated from financing activities
|
(26,894)
|
104
|
(48,645)
|
(2,067)
|
Effect of exchange rate
changes on cash and cash
equivalents,
restricted cash
|
(6,284)
|
(3,791)
|
(4,956)
|
(2,830)
|
|
|
|
|
|
|
|
|
|
|
Net
(decrease)/increase in cash and cash
equivalents,
restricted cash
|
(145,625)
|
15,297
|
(365,363)
|
(38,619)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, restricted cash at the
beginning of
period
|
744,838
|
79,245
|
964,576
|
133,161
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, restricted cash
at the end of
period
|
599,213
|
94,542
|
599,213
|
94,542
|
|
|
|
|
|
TUYA INC.
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE
FINANCIAL MEASURES
|
(All amounts in US$
thousands ("US$"), except for share and per share data, unless
otherwise
noted)
|
|
|
For the Three Months
Ended
|
For the Six Months
Ended
|
|
|
|
|
June 30,
2022
|
June
30,
2023
|
June 30,
2022
|
June
30,
2023
|
|
|
|
|
|
Reconciliation of
operating expenses to non-GAAP
operating
expenses
|
|
|
|
|
Research and
development expenses
|
(37,221)
|
(26,474)
|
(84,809)
|
(54,525)
|
Add: Share-based
compensation
|
3,452
|
4,006
|
7,582
|
8,123
|
Adjusted research
and development expenses
|
(33,769)
|
(22,468)
|
(77,227)
|
(46,402)
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(15,061)
|
(9,826)
|
(30,339)
|
(20,085)
|
Add: Share-based
compensation
|
1,847
|
1,620
|
3,500
|
3,226
|
Adjusted sales and
marketing expenses
|
(13,214)
|
(8,206)
|
(26,839)
|
(16,859)
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
(17,130)
|
(24,273)
|
(35,160)
|
(41,066)
|
Add: Share-based
compensation
|
11,871
|
11,386
|
23,744
|
22,983
|
Add: Credit-related
impairment of long-term
investments
|
–
|
8,050
|
–
|
8,050
|
Adjusted general and
administrative expenses
|
(5,259)
|
(4,837)
|
(11,416)
|
(10,033)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
loss from operations to non-GAAP
loss from
operations
|
|
|
|
|
Loss from
operations
|
(39,460)
|
(31,418)
|
(94,942)
|
(63,713)
|
Add: Share-based
compensation expenses
|
17,170
|
17,012
|
34,826
|
34,332
|
Add: Credit-related
impairment of long-term
investments
|
–
|
8,050
|
–
|
8,050
|
Non-GAAP loss from
operations
|
(22,290)
|
(6,356)
|
(60,116)
|
(21,331)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
margin
|
(35.6) %
|
(11.2) %
|
(51.0) %
|
(20.4) %
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net loss to non-GAAP net
(loss)/profit
|
|
|
|
|
Net loss
|
(35,869)
|
(23,549)
|
(90,822)
|
(44,594)
|
Add: Share-based
compensation expenses
|
17,170
|
17,012
|
34,826
|
34,332
|
Add: Credit-related
impairment of long-term
investments
|
–
|
8,050
|
–
|
8,050
|
Non-GAAP net
(loss)/profit
|
(18,699)
|
1,513
|
(55,996)
|
(2,212)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
margin
|
(29.9) %
|
2.7 %
|
(47.5) %
|
(2.1) %
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used in
computing non-GAAP net
loss per share
|
|
|
|
|
– Basic
|
550,172,103
|
554,945,739
|
553,471,745
|
554,472,706
|
– Diluted
|
550,172,103
|
586,513,021
|
553,471,745
|
554,472,706
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss
per share attributable to
ordinary
shareholders
|
|
|
|
|
– Basic
|
(0.03)
|
0.00
|
(0.10)
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
– Diluted
|
(0.03)
|
0.00
|
(0.10)
|
(0.00)
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/tuya-reports-second-quarter-2023-unaudited-financial-results-301908383.html
SOURCE Tuya Inc.