How Does Tuya Company Work?

Understanding how Tuya works reveals its central role in the global IoT market. The company's platform supports a wide range of communication protocols and integrates seamlessly with major voice assistants and existing ecosystems. This broad compatibility is key to its success in enabling smart home product manufacturing and diverse smart home solutions.

• Facilitates rapid development and deployment of smart products.
• Supports diverse communication protocols for broad compatibility.
• Enables seamless integration with major voice assistants and ecosystems.
• Offers cloud development tools, SDKs, and hardware modules.
• Provides services to manufacturers to streamline smart device creation.
• Tuya's platform is instrumental in the Growth Strategy of Tuya.

In the first quarter of 2025, total revenue reached US$74.7 million, a 21.1% increase year-over-year. IoT PaaS revenue was US$53.7 million, up 17.9%, with a gross margin of 48.4%. Premium IoT PaaS customers, contributing over US$100,000 annually, numbered 287 and accounted for approximately 88.7% of IoT PaaS revenue in Q1 2025. SaaS and others revenue grew 15.5% to US$10.0 million, boasting a gross margin of 74.4%. Smart solutions revenue surged by 47.1% to US$11.0 million. For the full year 2024, total revenue was US$298.6 million, nearly 30% growth, with a GAAP net profit of US$5.0 million, a significant improvement from a US$60.3 million loss in 2023.

• The company's primary revenue streams are IoT PaaS, SaaS, and smart solutions.
• IoT PaaS is the largest contributor, driven by increasing demand for connected devices.
• SaaS and other cloud software products show strong gross margins, indicating high value.
• Smart solutions are experiencing rapid growth due to integrated intelligent software.
• A key account strategy focuses on high-value customers, boosting revenue from premium clients.
• The dollar-based net expansion rate (DBNER) for IoT PaaS demonstrates customer loyalty and increased spending.
• Full-year 2024 results show robust revenue growth and a positive net profit, signaling financial stability.
• Understanding the Competitors Landscape of Tuya is crucial for appreciating its market position and strategies.

Tuya's diversified revenue mix and focus on software and services demonstrate its strategic adaptability in navigating global market complexities.

• Europe accounts for one-third of Tuya's sales.
• Asia Pacific (ex-China), China, and Latin America each contribute about 15% of revenue.
• Focus on software and services mitigates tariff impacts.
• Accelerating AI adoption through new partnerships.

Tuya faces several risks, including geopolitical tensions and tariff uncertainties that have led to order delays and weaker demand in markets like the U.S. and Europe. Customer concentration also presents a vulnerability, as a significant portion of revenue comes from a small number of large clients. The company's future growth strategy is heavily focused on expanding its global market presence and leveraging AI. Tuya aims to bridge the commercialization gap for AI hardware by developing new AIoT engines and solutions, such as AI energy assistants. Management anticipates a normalization of tariff uncertainties post-2025 and is accelerating AI adoption through strategic partnerships, including integrating mainstream language models and building intelligent agent functions on its AI agent development platform. Understanding the Target Market of Tuya is crucial to grasping its operational strategy.

• Geopolitical tensions and tariff uncertainties impacting demand.
• Customer concentration risk due to reliance on a few large clients.
• Achieving sustained profitability through efficient AI scaling.
• Expanding global market presence and AIoT development.