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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>Tuya reported another solid quarter in a challenging environment, with revenue of $80.1 million, up 9% Y/Y. Gross margin increased Y/Y by 40 bps to 48.4%, while PaaS revenue increased 7% Y/Y to $58.1 million.</li><li>Cash and equivalents decreased to $1,006 million due to a cash dividend and the company has no debt.</li><li>Management had noted that the rollercoaster of 1Q25 could continue, and it seems to have done just that.</li></ul>

Tuya reported another solid quarter in a challenging environment, with revenue of $80.1 million, up 9% Y/Y. Gross margin increased Y/Y by 40 bps to 48.4%, while PaaS revenue increased 7% Y/Y to $58.1 million.Cash and equivalents decreased to $1,006 million due to a cash dividend and the company has no debt.Management had noted that the rollercoaster of 1Q25 could continue, and it seems to have done just that.

Tuya, Inc: 2Q25 Growth Continues in a Challenging Environment

<ul><li>Tuya delivered a strong 1Q25, outperforming seasonal trends, with a record GAAP net profit of $11.0 million and a net margin of 14.8% (more than 20 percentage points higher Y/Y).</li><li>Non-GAAP net profit also surged to $19.3 million, with margins reaching an impressive 25.8%.</li><li>The company’s success reflects disciplined expense control, strong revenue momentum across all segments, and a growing emphasis on AI-driven solutions. </li></ul>

Tuya delivered a strong 1Q25, outperforming seasonal trends, with a record GAAP net profit of $11.0 million and a net margin of 14.8% (more than 20 percentage points higher Y/Y).Non-GAAP net profit also surged to $19.3 million, with margins reaching an impressive 25.8%.The company’s success reflects disciplined expense control, strong revenue momentum across all segments, and a growing emphasis on AI-driven solutions. 

Tuya, Inc. - 1Q25 Revenue Up 21% and Gross Margin Up 70 Basis Points in a Roller Coaster Environment

<ul><li>On April 23, the 2025 Tuya Global Developer Summit officially launched in Shenzhen.</li><li>Tuya, a leading global AI cloud platform service provider, collaborated with representatives from top technology companies and industry experts worldwide to host a series of themed forum sessions.</li><li>The summit followed Tuya’s Investor Day on April 2, which provided an update on its evolving “AI + IoT” strategy and its vision for enabling large-scale AI commercialization.</li></ul>

On April 23, the 2025 Tuya Global Developer Summit officially launched in Shenzhen.Tuya, a leading global AI cloud platform service provider, collaborated with representatives from top technology companies and industry experts worldwide to host a series of themed forum sessions.The summit followed Tuya’s Investor Day on April 2, which provided an update on its evolving “AI + IoT” strategy and its vision for enabling large-scale AI commercialization.

Tuya, Inc: Developer Summit Highlights Next Era of AIoT; Global Sales Limit Impacts of Any Tariffs

<ul><li>Tuya hosted its Investor Day on April 2, 2025, in Hangzhou, China and provided an update on its evolving “AI + IoT” strategy and its vision for enabling large-scale AI commercialization.</li><li>The event, attended by nearly 100 institutional and individual investors, featured key sessions including a corporate overview by the CEO and CFO, a deep dive into the AI Agent Development Platform, an introduction to Tuya’s AI system architecture, live demonstrations of AI-powered hardware, and an investor Q&amp;A session.</li><li>The catchphrase of the event was “With AI, smart hardware finally becomes truly smart.”</li></ul>

Tuya hosted its Investor Day on April 2, 2025, in Hangzhou, China and provided an update on its evolving “AI + IoT” strategy and its vision for enabling large-scale AI commercialization.The event, attended by nearly 100 institutional and individual investors, featured key sessions including a corporate overview by the CEO and CFO, a deep dive into the AI Agent Development Platform, an introduction to Tuya’s AI system architecture, live demonstrations of AI-powered hardware, and an investor Q&amp;A session.The catchphrase of the event was “With AI, smart hardware finally becomes truly smart.”

TUYA: Investor Day Highlights "AI + IoT" Strategy

<ul><li>AI integration enhances platform potential.</li><li>Tuya continues to drive AI into its product offerings, laying the groundwork for long-term revenue opportunities and broader market engagement.</li><li>While the near-term financial impact remains modest, recent developments highlight Tuya’s dedication to advancing its AIoT capabilities and positioning for future growth through next-gen AI use cases</li></ul>

AI integration enhances platform potential.Tuya continues to drive AI into its product offerings, laying the groundwork for long-term revenue opportunities and broader market engagement.While the near-term financial impact remains modest, recent developments highlight Tuya’s dedication to advancing its AIoT capabilities and positioning for future growth through next-gen AI use cases

TUYA: AI Development Continues to Drive Company into New Markets

United States

Tuya Inc., doing business as Tuya Smart, provides IoT cloud platform. The Company offers solutions which enables brands, retailers, OEMs, and manufacturers to develop, launch, manage, and monetize software-enabled devices and services. Tuya Smart serves customers worldwide.

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Tuya Inc (TUYA US)

Tuya, Inc: 2Q25 Growth Continues in a Challenging Environment

Tuya reported another solid quarter in a challenging environment, with revenue of $80.1 million, up 9% Y/Y. Gross margin increased Y/Y by 40 bps to...

Water Tower Research

Tuya, Inc. - 1Q25 Revenue Up 21% and Gross Margin Up 70 Basis Points in a Roller Coaster Environment

Tuya delivered a strong 1Q25, outperforming seasonal trends, with a record GAAP net profit of $11.0 million and a net margin of 14.8% (more than 20...

Water Tower Research

Tuya, Inc: Developer Summit Highlights Next Era of AIoT; Global Sales Limit Impacts of Any Tariffs

The summit followed Tuya’s Investor Day on April 2, which provided an update on its evolving “AI + IoT” strategy and its vision for enabling large...

Water Tower Research

TUYA: Investor Day Highlights "AI + IoT" Strategy

Tuya hosted its Investor Day on April 2, 2025, in Hangzhou, China and provided an update on its evolving “AI + IoT” strategy and its vision for...

Water Tower Research

TUYA: AI Development Continues to Drive Company into New Markets

Tuya continues to drive AI into its product offerings, laying the groundwork for long-term revenue opportunities and broader market engagement.

Water Tower Research

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