Tuya Inc. Q2 FY2025 earnings call

Jerry Wang provided a brief overview: In the first half of 2025, Tuya generated revenues of approximately USD 155 million, +15% YOY. Q2 revenue ~USD 80.1M, +9.3% YOY. Blended gross margin 48% for Q2 and H1. Non-GAAP operating margin 10%, net margin 25%. Non-GAAP operating profit up ~127% YOY. Global developers on platform over 1.51M. Alex Yang detailed financials: Q2 revenue ~USD 80M, +9.3% YOY. PaaS +7%, Smart solutions +16.7%, SaaS +15.6%. Regional highlights: Europe long-term customers grew in niche categories; new customers in energy sectors; Asia Pacific rollouts; North America AI solutions momentum; China AI toy solutions. Margin details: Q2 blended gross margin 48.4%, PaaS 48.7%, Smart Solutions 22.5%, SaaS 72%. Expenses disciplined. AI developer ecosystem: 93% of shipped products categories with AI capabilities, 1.51M global developers, hackathons and commercialization progress.

In the second quarter of 2025, Tuya delivered revenue of about USD 80 million, representing 9.3% year-over-year growth. By segment: PaaS leveraged its diversified product ecosystem to capture essential consumption demand in home appliances, delivering year-over-year growth of 7%. Smart solutions supported by focused hardware offering and a differentiated solutions tailored to various customer segments withstood macro pressures and achieved year-over-year growth of 16.7%. SaaS and others revenue was about USD 11 million, up 15.6% year-over-year, driven by the continued increase in recurring revenue, which exceeded 6% in Q2.

For Q3 and rest of year: Uncertainty from tariff situation continues, consumer electronics recovery under pressure. Orders shifting to lower value/entry-level products. Europe, Asia Pacific, North America, China face regional opportunities but with near-term macro challenges. Dividend: Regular policy based on stable profitability, business model, growth, and net operating cash flow.

Global trade uncertainties, U.S. tariff policy disrupting consumer electronics industry, downstream channel delays/adjustments, supply chain complexities, retail price pressures affecting demand.

Q: Concern on Q3 growth outlook and FX impact A: Yi Yang answered that tariff uncertainty continues, consumer electronics recovery under pressure, orders shifting, global supply chain complexities Q: Competitive landscape in AIoT PaaS and shareholder return policy A: Yi Yang said focus on motivating developers, AI penetration, dividend as regular policy based on profitability Q: Gross margin drivers and SaaS/smart device solutions growth A: Yi Yang stated gross margin reflects competitiveness, AI-related revenue impact on mix, SaaS scaling, solutions focusing on key customers Q: U.S. tariffs impact on supply chain and Smart Solutions margin A: Yi Yang answered supply chain shifting over years, tariff negotiations ongoing; Smart Solutions margin due to value proposition and scalability