SANTA
CLARA, Calif., March 1,
2023 /PRNewswire/ -- Tuya Inc. ("Tuya" or
the "Company", together with its subsidiaries and
consolidated affiliated entities, the "Group") (NYSE: TUYA;
HKEX: 2391), a global leading IoT cloud development platform, today
announced its unaudited financial results for the fourth quarter
and full fiscal year ended December 31,
2022.
Fourth Quarter 2022 Financial Highlights
- Total revenue was US$45.3
million, down approximately 39.6% year over year (4Q2021:
US$75.0 million).
- IoT platform-as-a-service ("PaaS") revenue was
US$32.6 million, down approximately
47.4% year over year (4Q2021: US$62.1
million).
- Software-as-a-service ("SaaS") and others revenue was
US$7.9 million, up approximately 8.7%
year over year (4Q2021: US$7.3
million).
- Overall gross margin for the quarter increased to 44.6%,
up 1.4 percentage points year over year (4Q2021: 43.2%). Gross
margin of IoT PaaS for the quarter decreased to 41.5%, down 1.0
percentage point year over year (4Q2021: 42.5%).
- Operating expenses for the quarter were US$53.0 million, down approximately 36.8% year
over year (4Q2021: US$83.9 million).
Non-GAAP operating expenses for the quarter were
US$35.5 million, down approximately
46.4% year over year (4Q2021: US$66.3
million). Operating margin for the quarter was
negative 72.5%, down 3.7 percentage points year over year (4Q2021:
negative 68.8%). Non-GAAP operating margin for the quarter
was negative 33.8%, up 11.5 percentage points year over year
(4Q2021: negative 45.3%).
- Net cash used in operating activities for the quarter
was US$0.1 million, down
approximately 99.7% year over year (4Q2021: US$53.2 million).
- Total cash and cash equivalents, and short-term
investments were US$954.3 million
as of December 31, 2022, compared to
US$945.9 million as of September 30, 2022 and US$1.07 billion as of December 31, 2021.
- Total shares repurchased in the form of American Depositary
Shares ("ADSs") and Class A ordinary shares amounted to
approximately 25.8 million for a total consideration of
approximately US$112.8 million as of
December 31, 2022.
Full Year 2022 Financial Highlights
- Total revenue was US$208.2
million, down approximately 31.1% year over year (2021:
US$302.1 million).
- IoT PaaS revenue was US$152.9
million, down approximately 41.5% year over year (2021:
US$261.4 million).
- SaaS and others revenue was US$29.8 million, up approximately 60.6% year over
year (2021: US$18.6 million).
- Overall gross margin for the year increased to 43.0%, up
0.7 percentage point year over year (2021: 42.3%). Gross margin of
IoT PaaS for the year decreased to 41.1%, down 1.3 percentage
points year over year (2021: 42.4%).
- Operating expenses for the year were US$257.6 million, down approximately 17.3% year
over year (2021: US$311.4 million).
Non-GAAP operating expenses for the year were US$188.6 million, down approximately 23.1% year
over year (2021: US$245.3 million).
Operating margin for the year was negative 80.8%, down 20.0
percentage points year over year (2021: negative 60.8%).
Non-GAAP operating margin for the year was negative 47.6%,
down 8.7 percentage points year over year (2021: negative
38.9%).
- Net cash used in operating activities for the year was
US$70.7 million, down approximately
44.0% year over year (2021: US$126.1
million).
Fourth Quarter and Fiscal Year 2022 Operating
Highlights
- IoT PaaS customers[1] for the fourth quarter
and the fiscal year 2022 were approximately 2,400 and 5,100,
respectively (4Q2021 and 2021: approximately 3,300 and 5,500,
respectively). Total customers for the fourth quarter and the
fiscal year 2022 were approximately 3,400 and 7,600, respectively
(4Q2021 and 2021: approximately 4,800 and 8,400, respectively). 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 December 31,
2022 were 263 (4Q2021: 311). In the fourth quarter and the
fiscal year 2022, the Group's premium IoT PaaS customers
contributed approximately 77.0% and 81.7% of its IoT PaaS revenue,
respectively (4Q2021 and 2021: approximately 87.3% and 88.6%,
respectively).
- Dollar-based net expansion rate ("DBNER")[3]
of IoT PaaS for the trailing 12 months ended December 31, 2022 was 51% (4Q2021: 153%).
- Registered IoT device and software developers, or
registered developers, were over 708,000 as of December 31, 2022, up 38.8% from approximately
510,000 developers as of December 31,
2021.
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, "We have responded
swiftly and decisively to macroeconomic headwinds, including high
inflation and downstream destocking, recreating our company to be
stronger and more resilient than ever. We have taken bold steps to
optimize our product offerings, streamline our operations, and
reduce our expenses. In particular, our recalibrated focus on key
account customers and our sales triangle strategy enabled us to
better meet the diverse needs of large customers while improving
our service efficiency. Looking ahead, we are confident that our
strengthened value proposition, improved cost and expense
structure, and substantial cash position will enable us to
capitalize on emerging opportunities in 2023 and beyond. We are
committed to our mission of driving innovation and delivering value
to our customers, and we're confident in the long-term prospects of
our business."
Ms. Yao (Jessie) Liu, Director
and Chief Financial Officer of Tuya, added, "Reflecting on 2022
performance, we acknowledge the impact of weakening sales of
consumer products, our core market. We responded proactively by
reducing headcount and optimizing our cost structure, which
resulted in improved margins and minimal cash use. Notably, we
achieved a 46.4% reduction in non-GAAP total operating expenses in
the fourth quarter of 2022, marking our fifth consecutive quarter
with substantial operating expense reductions. Our success in
controlling expenses and improving efficiency has allowed us to
achieve our lowest quarterly non-GAAP net loss since the start of
2019."
Fourth Quarter 2022 Unaudited Financial Results
REVENUE
Total revenue in the fourth quarter of 2022 decreased by 39.6%
to US$45.3 million from US$75.0 million in the same period of 2021,
mainly due to the decreases in IoT PaaS revenue and smart device
distribution revenue, partially offset by the increase in SaaS and
others revenue. More particularly:
- IoT PaaS revenue in the fourth quarter of 2022 decreased by
47.4% to US$32.6 million from
US$62.1 million in the same period of
2021. During the quarter, the Group's customers remained
conservative with their purchases as a result of (i) continued
global inflation and the consequent weakened consumer spending,
(ii) heavy inventory backlog in the supply chain caused by the
mismatch in supply and demand in the consumer discretionary sector
amid such continued inflation, which is expected to be consumed by
the downstream over time, and (iii) an adverse impact of
US$2.9 million due to foreign
exchange rate fluctuation. In addition, during the quarter, the
Group's operating and selling and marketing activities were
impacted by the COVID-19 in China.
As a result of these factors, the Group's DBNER of IoT PaaS for the
trailing 12 months ended December 31,
2022 decreased to 51% compared to previous periods.
- SaaS and others revenue in the fourth quarter of 2022 increased
by 8.7% to US$7.9 million from
US$7.3 million in the same period of
2021. During the quarter, the Group continued to making efforts in
offer value-added services ("VAS") and various software products
with strong value proposition to its customers. On the other hand,
the Group upgraded its customer service systems and reformed its
service force in order to better utilize limited resources to
acquire key accounts and provide more targeted services to
different customers, which as a result partially slowed down the
momentum of certain services, such as "OEM APP", compared to the
same period in 2021.
- Smart device distribution revenue in the fourth quarter of 2022
decreased by 16.0% to US$4.7 million
from US$5.6 million in the same
period of 2021. Changes in the Group's smart device distribution
revenue between periods were primarily due to the varying timing
and amounts of customer demands and purchases.
COST OF REVENUE
Cost of revenue in the fourth quarter of 2022 decreased by 41.1%
to US$25.1 million from US$42.6 million in the same period of 2021, in
line with the decrease in total revenue.
GROSS PROFIT AND GROSS MARGIN
Total gross profit in the fourth quarter of 2022 decreased by
37.6% to US$20.2 million from
US$32.4 million in the same period of
2021 and gross margin percentage increased to 44.6% in the fourth
quarter of 2022 from 43.2% in the same period of 2021.
- IoT PaaS gross margin in the fourth quarter of 2022 was 41.5%,
compared to 42.5% in the same period of 2021, primarily due to the
changes in product mix and a negative 1.6 percentage points impact
caused by accrued inventory allowance of certain slow-moving IoT
chips and raw materials in relation to the IoT PaaS business during
the quarter.
- SaaS and others gross margin in the fourth quarter of 2022 was
75.2%, compared to 73.4% in the fourth quarter of 2021.
- Smart device distribution gross margin in the fourth quarter of
2022 was 14.6%, compared to 10.6% in the fourth quarter of
2021.
OPERATING EXPENSES
Operating expenses decreased by 36.8% to US$53.0 million in the fourth quarter of 2022
from US$83.9 million in the same
period of 2021. Non-GAAP operating expenses, defined as operating
expenses excluding share-based compensation expenses, decreased by
46.4% to US$35.5 million in the
fourth quarter of 2022 from US$66.3
million in the same period of 2021. Share-based compensation
expenses in the fourth quarter of 2022 were US$17.5 million, basically flat year over
year.
- Research and development expenses in the fourth quarter of 2022
were US$27.8 million, down 39.8% from
US$46.2 million in the same period of
2021, as the Group continues to strategically streamline 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 48.1% year over year,
compared to the same quarter in last year.
- Sales and marketing expenses in the fourth quarter of 2022 were
US$11.2 million, down 39.2% from
US$18.4 million in the same period of
2021, primarily because of (i) the strategic streamlining of the
Group's sales and marketing team, and (ii) the decrease in
marketing spending due to COVID-19 and the Group's efforts to
control expenditure and improve sales and marketing
efficiency.
- General and administrative expenses in the fourth quarter of
2022 were US$16.2 million, down 23.0%
from US$21.0 million in the same
period of 2021, primarily due to Company's efforts to control
professional expenditures.
- Other operating income, net in the fourth quarter of 2022 was
US$2.2 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 fourth quarter of 2022 narrowed by
36.3% to US$32.8 million from
US$51.6 million in the same period of
2021. Non-GAAP loss from operations in the fourth quarter of 2022
narrowed by 54.8% to US$15.3 million
from US$33.9 million in the same
period of 2021.
Operating margin in the fourth quarter of 2022 was negative
72.5%, down 3.7 percentage points from negative 68.8% in the same
period of 2021 as the Group's total revenue declined at a faster
pace than operating expenses. Non-GAAP operating margin in the
fourth quarter of 2022 was negative 33.8%, up 11.5 percentage
points from negative 45.3% in the same period of 2021.
NET LOSS AND NET MARGIN
Net loss was US$22.7 million in
the fourth quarter of 2022, compared to US$48.8 million in the same period of 2021.
Non-GAAP net loss was US$5.2 million
in the fourth quarter of 2022, compared to US$31.2 million in the same period of 2021. The
difference between loss from operations and net loss in the fourth
quarter of 2022 was primarily because of a US$10.2 million financial income achieved mainly
due to well implemented treasury strategies on the Group's cash and
deposits recorded as short-term investment.
Net margin in the fourth quarter of 2022 was negative 50.2%, up
15.0 percentage points from negative 65.2% in the same period of
2021. Non-GAAP net margin in the fourth quarter of 2022 was
negative 11.5%, up 30.1 percentage points from negative 41.6% in
the same period of 2021.
BASIC AND DILUTED NET LOSS PER ADS
Basic and diluted net loss per ADS was US$0.04 in the fourth quarter of 2022, compared
to US$0.09 in the same period of
2021. Each ADS represents one Class A ordinary share.
Non-GAAP basic and diluted net loss per ADS was US$0.01 in the fourth quarter of 2022, compared
to US$0.06 in the same period of
2021.
CASH AND CASH EQUIVALENTS, AND SHORT-TERM
INVESTMENTS
Cash and cash equivalents, and short-term investments were
US$954.3 million as of December 31, 2022, up US$8.4 million from US$945.9 million quarter over quarter, which the
Group believes is sufficient to meet its current liquidity and
working capital needs.
NET CASH USED IN OPERATING ACTIVITIES
Net cash used in operating activities for the fourth quarter of
2022 was US$0.1 million, or 0.3% of
total revenue, compared to US$53.2
million, or 71.0% of total revenue in the fourth quarter of
2021. The net cash used in operating activities in the fourth
quarter of 2022 improved mainly due to the significant decrease in
operating expenses, particularly employee-related costs, and
working capital changes in the ordinary course of business.
SHARE REPURCHASE
During the quarter ended December 31,
2022, the Group repurchased approximately 2.8 million of
ADSs and Class A ordinary shares from the open market, for a total
consideration of approximately US$4.2
million, subject to the relevant regulation on the volume of
share repurchases.
As of December 31, 2022, total
shares repurchased in the form of ADSs and Class A ordinary shares
amounted to approximately 25.8 million for a total consideration of
approximately US$112.8 million.
Fiscal Year 2022 Unaudited Financial Results
REVENUE
Total revenue in 2022 decreased by 31.1% to US$208.2 million from US$302.1 million in the same period of 2021,
mainly due to the decrease in IoT PaaS revenue, partially offset by
the increase in smart device distribution revenue and SaaS and
others revenue.
- IoT PaaS revenue in 2022 decreased by 41.5% to US$152.9 million from US$261.4 million in 2021, primarily because the
Group's customers have become more prudent and conservative in
their purchases as the increasing inflation globally, especially in
North America and Europe, resulted in weakened discretionary
consumer spending. In addition, revenue was adversely impacted by
heavy inventory backlog in the supply chain caused by the mismatch
in supply and demand in the consumer discretionary sector amid such
continued inflation, which is expected to be consumed by the
downstream over time. Moreover, foreign exchange rate fluctuations
negatively impacted the Group's IoT PaaS revenue in the year by 2.4
percentage points, and the change in COVID-19 situation and its
related public prevention policy during the year also has affected
the Group's selling, marketing and operating activities across the
globe. As a result of these factors, the Group's DBNER of IoT PaaS
for the trailing 12 months ended December
31, 2022 decreased to 51% compared to previous periods.
- SaaS and others revenue in 2022 increased by 60.6% to
US$29.8 million from US$18.6 million in 2021, sustaining a strong
year-over-year growth momentum. During the year, the Group
continued to making efforts in offer value-added services
("VAS") and various software products with strong value
proposition to its customers.
- Smart device distribution revenue in 2022 increased by 14.9% to
US$25.4 million from US$22.2 million in 2021. The Group offers smart
device distribution mainly to save customers (primarily brands,
system integrators and industry operators who demand and purchase
finished smart devices) from dealing with multiple original
equipment manufacturers ("OEMs"). Changes in the Group's
smart device distribution revenue between periods are primarily
attributable to the varying timing and amounts of customer demands
and purchases.
COST OF REVENUE
Cost of revenue in 2022 decreased by 31.8% to US$118.7 million from US$174.2 million in 2021, in line with the
decrease in total revenue.
GROSS PROFIT AND GROSS MARGIN
Total gross profit in 2022 decreased by 30.1% to US$89.4 million from US$127.9 million in 2021 and gross margin
percentage increased to 43.0% in 2022 from 42.3% in 2021.
- IoT PaaS gross margin in 2022 was 41.1%, down 1.3 percentage
points compared to 42.4% in 2021, primarily due to a negative 2.4
percentage points impact caused by an accrual of US$3.7 million in inventory allowance of certain
slow-moving IoT chips and raw materials in relation to the IoT PaaS
business during the year. Excluding inventory allowance impacts,
the Group's effective implementation of its business management and
efficiency improvement initiatives ensured a steady gross margin of
IoT PaaS business during the year.
- SaaS and others gross margin in 2022 was 79.0%, compared to
73.7% in 2021, mainly due to the changes in product mix of
services.
- Smart device distribution gross margin in 2022 was 11.6%,
compared to 14.9% in 2021.
OPERATING EXPENSES
Operating expenses decreased by 17.3% to US$257.6 million in 2022 from US$311.4 million in 2021. Non-GAAP operating
expenses, defined as operating expenses excluding share-based
compensation expenses, decreased by 23.1% to US$188.6 million in 2022 from US$245.3 million in 2021. Share-based
compensation expenses in 2022 were US$69.0
million, compared to US$66.1
million in 2021.
- Research and development expenses in 2022 were US$144.9 million, down 16.8% from US$174.3 million in 2021, primarily because of
the strategic streamlining of the Group's research and development
team to drive operational efficiency and focus more on pursuing
strategies of better balancing the business growth and timeline to
profitability (but partially offset by the accompanying one-off
additional cost of US$7.3 million
relating to headcount optimization). The Group's total salaried
research and development headcount as of December 31, 2022 was 1,313, down 48.7% compared
to that of December 31, 2021.
- Sales and marketing expenses in 2022 were US$55.7 million, down 26.2% from US$75.4 million in 2021, primarily because of (i)
the strategic streamlining of the sales and marketing team, and
(ii) the decrease in marketing spending due to COVID-19 and the
Group's efforts to control expenditures and improve sales and
marketing efficiency.
- General and administrative expenses in 2022 were US$67.5 million, down 5.7% from US$71.6 million in the same period of 2021,
primarily due to the Group's efforts to control professional
expenditures and operating overheads, partially offset by the
increase in share-based compensation expenses from US$44.8 million to US$47.5
million.
- Other operating incomes, net in 2022 were US$10.5 million, primarily due to the receipts of
software VAT refunds and various general subsidies for
enterprises.
LOSS FROM OPERATIONS AND OPERATING MARGIN
Loss from operations in 2022 narrowed by 8.4% to US$168.2 million from US$183.6 million in 2021. Non-GAAP loss from
operations in 2022 narrowed by 15.6% to US$99.2 million from US$117.5 million in 2021.
Operating margin in 2022 was negative 80.8%, down 20.0
percentage points from negative 60.8% in 2021. Non-GAAP operating
margin in 2022 was negative 47.6%, down 8.7 percentage points from
negative 38.9% in 2021. The changes in the operating margin are
mainly because the Group's total revenue declined at a faster pace
than operating expenses.
NET LOSS AND NET MARGIN
Net loss in 2022 narrowed by 16.7% to US$146.2 million from US$175.4 million in 2021. Non-GAAP net loss in
2022 was US$77.2 million, compared to
US$109.3 million in the same period
of 2021. The difference between loss from operations and net loss
in 2022 was primarily because of a US$18.5
million financial income achieved mainly due to well
implemented treasury strategies on the Group's cash and deposits
recorded as short-term investment.
Net margin in 2022 was negative 70.2%, down 12.1 percentage
points from negative 58.1% in 2021, and Non-GAAP net margin in 2022
was negative 37.1%, basically flat compared to negative 36.2% in
2021, primarily due to the same reason as that of changes in
operating margin.
BASIC AND DILUTED NET LOSS PER ADS
Basic and diluted net loss per ADS in 2022 were US$0.26, compared to US$0.36 in 2021. Each ADS represents one Class A
ordinary share.
Non-GAAP basic and diluted net loss per ADS in 2022 were
US$0.14, compared to US$0.22 in 2021.
NET CASH USED IN OPERATING ACTIVITIES
Net cash used in operating activities for 2022 was US$70.7 million, or 33.9% of total revenue,
compared to US$126.1 million of net
cash used in operating activities, or 41.7% of total revenue in
2021. The net cash used in operating activities in 2022 decreased
mainly due to the decrease in operating expenses, particularly
employee related costs, and working capital changes in the ordinary
course of business.
Business Outlook
The global consumer discretionary industry and consumer spending
are still expected to continue to face a range of challenges in
2023, including, among other things, a decline or continued
weakness in the general economic conditions, global high inflation,
inventory backlog experienced by players such as smart device
manufacturers, brands and retail channels in the supply chain,
fluctuations in foreign exchange rates, and geopolitical tensions
and conflicts, and competitions brought by technology iteration to
the IoT industry.
The Group will continue to make efforts to monitor the
uncertainties caused by such challenges, and despite these
challenges, the Group remains confident in its long-term growth
prospects and stays committed to iterating its products and
services, further enhancing its software and embedded hardware
capabilities, expanding customer base, diversifying revenue
streams, and further optimizing operating efficiency.
Conference Call Information
The Company's management will hold a conference call at
07:00 P.M. U.S. Eastern Time on
Wednesday, March 1, 2023
(08:00 A.M. Beijing Time on
Thursday, March 2, 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=aaaf2866&confId=47330
|
The replay will be accessible through March 8, 2023 by dialing the following
numbers:
International:
|
+44-204-525-0658
|
United
States:
|
+1-929-458-6194
|
Access Code:
|
819491
|
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 (including non-GAAP net margin), and non-GAAP
basic and diluted net loss 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 excluding the impact of share-based compensation expenses
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 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,
2021 AND 2022
|
(All amounts in US$
thousands ("US$"),
|
except for share and
per share data, unless otherwise noted)
|
|
|
As of
December 31,
|
As of
December 31,
|
|
2021
|
2022
|
|
|
|
ASSETS
|
|
|
Current assets:
|
|
|
Cash and cash
equivalents
|
963,938
|
133,161
|
Restricted
cash
|
638
|
–
|
Short-term
investments
|
102,134
|
821,134
|
Accounts receivable,
net
|
32,701
|
12,172
|
Notes
receivable
|
1,393
|
2,767
|
Inventories,
net
|
62,582
|
45,380
|
Prepayments and other
current assets
|
27,882
|
8,752
|
|
|
|
|
|
|
Total current assets
|
1,191,268
|
1,023,366
|
|
|
|
|
|
|
Non-current assets:
|
|
|
Property, equipment
and software, net
|
6,805
|
3,827
|
Operating lease
right-of-use assets, net
|
22,181
|
9,736
|
Long-term
investments
|
26,078
|
18,031
|
Other non-current
assets
|
1,818
|
1,179
|
|
|
|
|
|
|
Total non-current assets
|
56,882
|
32,773
|
|
|
|
|
|
|
Total assets
|
1,248,150
|
1,056,139
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
|
|
|
EQUITY
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
12,212
|
9,595
|
Advances from
customers
|
31,088
|
27,633
|
Deferred revenue,
current
|
9,254
|
6,821
|
Accruals and other
current liabilities
|
50,847
|
33,383
|
Lease liabilities,
current
|
5,697
|
3,850
|
|
|
|
|
|
|
Total current liabilities
|
109,098
|
81,282
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
Lease liabilities,
non-current
|
16,048
|
5,292
|
Deferred revenue,
non-current
|
859
|
394
|
Other non-current
liabilities
|
8,484
|
7,004
|
|
|
|
|
|
|
Total non-current liabilities
|
25,391
|
12,690
|
|
|
|
|
|
|
Total liabilities
|
134,489
|
93,972
|
|
|
|
TUYA INC.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (CONTINUED)
|
AS OF DECEMBER 31,
2021 AND 2022
|
(All amounts in US$
thousands ("US$"),
|
except for share and
per share data, unless otherwise noted)
|
|
|
As of
December 31,
|
As of
December 31,
|
|
2021
|
2022
|
|
|
|
Shareholders' equity:
|
|
|
Ordinary
shares
|
–
|
–
|
Class A ordinary
shares
|
25
|
25
|
Class B ordinary
shares
|
4
|
4
|
Treasury
stock
|
(46,930)
|
(86,438)
|
Additional paid-in
capital
|
1,526,140
|
1,584,764
|
Accumulated other
comprehensive income/(loss)
|
2,320
|
(22,115)
|
Accumulated
deficit
|
(367,898)
|
(514,073)
|
|
|
|
|
|
|
Total shareholders' equity
|
1,113,661
|
962,167
|
|
|
|
|
|
|
Total liabilities and shareholders'
equity
|
1,248,150
|
1,056,139
|
|
|
|
TUYA INC.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF
|
COMPREHENSIVE
LOSS
|
(All amounts in US$
thousands ("US$"),
|
except for share and
per share data, unless otherwise noted)
|
|
|
For the Three Months Ended
|
For the Year Ended
|
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|
2021
|
2022
|
2021
|
2022
|
|
|
|
|
|
Revenue
|
74,967
|
45,286
|
302,076
|
208,172
|
Cost of
revenue
|
(42,616)
|
(25,100)
|
(174,209)
|
(118,749)
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
32,351
|
20,186
|
127,867
|
89,423
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development expenses
|
(46,187)
|
(27,792)
|
(174,289)
|
(144,942)
|
Sales and marketing
expenses
|
(18,433)
|
(11,203)
|
(75,384)
|
(55,662)
|
General and
administrative expenses
|
(21,011)
|
(16,181)
|
(71,589)
|
(67,513)
|
Other operating
incomes, net
|
1,724
|
2,160
|
9,835
|
10,508
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
(83,907)
|
(53,016)
|
(311,427)
|
(257,609)
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
(51,556)
|
(32,830)
|
(183,560)
|
(168,186)
|
|
|
|
|
|
|
|
|
|
|
Other income/(loss)
|
|
|
|
|
Other non-operating
income, net
|
653
|
779
|
1,958
|
2,904
|
Financial income,
net
|
2,619
|
10,234
|
7,286
|
18,546
|
Foreign exchange
(loss)/gain, net
|
(425)
|
(102)
|
(618)
|
2,441
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax
expense
|
(48,709)
|
(21,919)
|
(174,934)
|
(144,295)
|
Income tax expense
|
(135)
|
(811)
|
(490)
|
(1,880)
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
(48,844)
|
(22,730)
|
(175,424)
|
(146,175)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Tuya
Inc.
|
(48,844)
|
(22,730)
|
(175,424)
|
(146,175)
|
|
|
|
|
|
|
|
|
|
|
Net loss attribute to ordinary
shareholders
|
(48,844)
|
(22,730)
|
(175,424)
|
(146,175)
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
(48,844)
|
(22,730)
|
(175,424)
|
(146,175)
|
Other comprehensive
income/(loss)
|
|
|
|
|
Changes in fair value of long-term
investments
|
357
|
(8,347)
|
357
|
(9,493)
|
Foreign currency translation
|
1,211
|
2,090
|
1,482
|
(14,942)
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss
attributable
to Tuya Inc.
|
(47,276)
|
(28,987)
|
(173,585)
|
(170,610)
|
|
|
|
|
|
TUYA INC.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF
|
COMPREHENSIVE LOSS
(CONTINUED)
|
(All amounts in US$
thousands ("US$"),
|
except for share and
per share data, unless otherwise noted)
|
|
|
For the Three Months Ended
|
For the Year Ended
|
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|
2021
|
2022
|
2021
|
2022
|
|
|
|
|
|
Net loss attributable
to Tuya Inc.
|
(48,844)
|
(22,730)
|
(175,424)
|
(146,175)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
ordinary
shareholders
|
(48,844)
|
(22,730)
|
(175,424)
|
(146,175)
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary
shares used in
computing
net loss per share,
basic and diluted
|
562,082,216
|
554,121,595
|
489,149,533
|
553,527,529
|
|
|
|
|
|
Net loss per share attributable to
ordinary
shareholders, basic and
diluted
|
(0.09)
|
(0.04)
|
(0.36)
|
(0.26)
|
|
|
|
|
|
Share-based compensation
expenses
were included in:
|
|
|
|
|
Research and
development expenses
|
4,093
|
4,032
|
14,542
|
14,692
|
Sales and marketing
expenses
|
1,634
|
1,611
|
6,702
|
6,825
|
General and
administrative expenses
|
11,900
|
11,867
|
44,845
|
47,502
|
TUYA INC.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(All amounts in US$
thousands ("US$"),
|
except for share and
per share data, unless otherwise noted)
|
|
|
For the Three Months Ended
|
For the Year Ended
|
|
December 31,
2021
|
December 31,
2022
|
December 31,
2021
|
December 31,
2022
|
|
|
|
|
|
Net cash used in
operating activities
|
(53,194)
|
(138)
|
(126,103)
|
(70,654)
|
Net cash generated
from/(used in)
investing
activities
|
23,627
|
(165,305)
|
(112,957)
|
(714,225)
|
Net cash (used
in)/generated
from financing
activities
|
(43,841)
|
(3,432)
|
1,041,802
|
(38,582)
|
Effect of exchange rate
changes on cash
and cash equivalents,
restricted cash
|
2,433
|
2,138
|
2,879
|
(7,954)
|
|
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in cash
and
cash equivalents, restricted
cash
|
(70,975)
|
(166,737)
|
805,621
|
(831,415)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, restricted cash
at the beginning of
period
|
1,035,551
|
299,898
|
158,955
|
964,576
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, restricted
cash
at the end of period
|
964,576
|
133,161
|
964,576
|
133,161
|
|
|
|
|
|
TUYA INC.
|
UNAUDITED
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST
|
DIRECTLY COMPARABLE
FINANCIAL MEASURES
|
(All amounts in US$
thousands ("US$"),
|
except for share and
per share data, unless otherwise noted)
|
|
|
For the Three Months Ended
|
For the Year Ended
|
|
December 31,
2021
|
December 31,
2022
|
December 31,
2021
|
December 31,
2022
|
|
|
|
|
|
Reconciliation of operating
expenses
to non-GAAP operating expenses
|
|
|
|
|
Research and
development expenses
|
(46,187)
|
(27,792)
|
(174,289)
|
(144,942)
|
Add: Share-based
compensation expenses
|
4,093
|
4,032
|
14,542
|
14,692
|
Adjusted Research and
development expenses
|
(42,094)
|
(23,760)
|
(159,747)
|
(130,250)
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(18,433)
|
(11,203)
|
(75,384)
|
(55,662)
|
Add: Share-based
compensation expenses
|
1,634
|
1,611
|
6,702
|
6,825
|
Adjusted Sales and marketing
expenses
|
(16,799)
|
(9,592)
|
(68,682)
|
(48,837)
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
(21,011)
|
(16,181)
|
(71,589)
|
(67,513)
|
Add: Share-based
compensation expenses
|
11,900
|
11,867
|
44,845
|
47,502
|
Adjusted General and
administrative expenses
|
(9,111)
|
(4,314)
|
(26,744)
|
(20,011)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of loss from
operations
to non-GAAP loss from
operations
|
|
|
|
|
Loss from
operations
|
(51,556)
|
(32,830)
|
(183,560)
|
(168,186)
|
Operating
margin
|
(68.8) %
|
(72.5) %
|
(60.8) %
|
(80.8) %
|
Add: Share-based
compensation expenses
|
17,627
|
17,510
|
66,089
|
69,019
|
Non-GAAP Loss from operations
|
(33,929)
|
(15,320)
|
(117,471)
|
(99,167)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating margin
|
(45.3) %
|
(33.8) %
|
(38.9) %
|
(47.6) %
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net loss to
non-GAAP net loss
|
|
|
|
|
Net loss
|
(48,844)
|
(22,730)
|
(175,424)
|
(146,175)
|
Net margin
|
(65.2) %
|
(50.2) %
|
(58.1) %
|
(70.2) %
|
Add: Share-based
compensation expenses
|
17,627
|
17,510
|
66,089
|
69,019
|
Non-GAAP Net loss
|
(31,217)
|
(5,220)
|
(109,335)
|
(77,156)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net margin
|
(41.6) %
|
(11.5) %
|
(36.2) %
|
(37.1) %
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary
shares used in
computing non-GAAP
net loss per share,
basic and diluted
|
562,082,216
|
554,121,595
|
489,149,533
|
553,527,529
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per share
attributable to ordinary
shareholders,
basic and diluted
|
(0.06)
|
(0.01)
|
(0.22)
|
(0.14)
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/tuya-reports-fourth-quarter-and-full-fiscal-year-2022-unaudited-financial-results-301759877.html
SOURCE Tuya Inc.