Tuya reports Q3 EPS 2c vs. (3c) last year

Reports Q3 revenue $61.10M, consensus $57.16M. Reports Non-GAAP net margin was 16.5%, improving by 51.9% points year over year 3Q2022: negative 35.4% .Net cash generated from operating activities was US$16.1M 3Q2022: net cash used in operating activities of or $13.5M. Total cash and cash equivalents, and time deposits recorded as short-term and long- term investments were $961Mas of September 30 compared to $952M as of December 31, 2022. Yao Liu, Director and Chief Financial Officer of Tuya, added, “We achieved a return to year-over-year revenue growth in the third quarter, fueled by a 48.1% increase in IoT PaaS revenue and a 32.1% increase in IoT Smart device distribution revenue. We also sustained our gross margin at record levels, demonstrating resilience and strategic acumen amidst challenging times. These financial results are a testament to our focused efforts on our customers, products, and operational efficiency. In addition, our financial discipline is evident in our reduced non- GAAP operating expenses, down 26.2% year-over-year, and our improved profitability, with a significant increase in non-GAAP net profit to $10.1M While we remain cautious in the face of market uncertainties, we are confident in our ability to continue delivering strong results. As we progress through the final stages of inventory normalization and observe the stabilization of the IoT consumer electronics sector, our persistent efforts will support our growth in the quarters and years ahead.”