Tuya Inc. Q4 FY2025 earnings call

• In 2025, maintained stability across platform business, delivered steady full-year revenue growth, and achieved notable improvement in non-GAAP profitability. • Made solid progress in building AI capability framework, introduced AI-powered Smart Life Assistant. • Looked to further strengthen AI native platform capabilities, accelerate AI service deployment in key scenarios, and expand developer ecosystem. • On developer ecosystem, registered AI plus IoT developers exceeded 1.8 million, up 37% y-o-y, cumulative AI agents on platform reached ~16,000. • Applied AI internally to enhance development efficiency, e.g., ~40% of codes in short-term front-end development process generated with AI assistance.

For full year 2025, total revenue was $320 million, up ~7.8% y-o-y. Past business generated over $230 million revenue, up 6.5% y-o-y. SAS and others business had full-year revenue of $44.8 million, up 13.4% y-o-y, with recurring services revenues up 37% y-o-y. Smart solution business had 4-year revenue of $45.7 million, up 8.9% y-o-y.

• Continue to further strengthen AI native platform capabilities to support developers in creating next-gen AI devices/apps. • Accelerate deployment and scalable expansion of AI application service across key scenarios. • Deepen investments in developer ecosystem growth and enhance support for developers.

• Tariff changes and global market dynamics could impact business outlook. • Upstream memory and chipset supply constraints could potentially impact, but company has buying power and good inventory levels to mitigate, though may last 1-2 quarters.

Q: Regarding U.S. tax rate change and upstream chipset supply constraint impact.

A: Tax rate change: global situation dynamic, customers more confident but demand not immediate due to potential new executive orders; Chipset supply: company is significant buyer, has good inventory levels, shortage not a big problem now but may last 1-2 quarters.

Q: About company's value proposition in agentic AI world and SaaS recurring revenue.

A: AI enables customers to build their own capabilities, SaaS recurring revenue driven by enlarging consumer base and offering more valuable recurring services on existing devices with AI.

Q: Impact of geopolitical risk on overseas operation and shareholder return plans.

A: Geopolitical risk: end demand continues to increase as tech provides value, company follows flow to help customers scale; Shareholder return: company has healthy cash position and improving profitability, will continue to provide dividends.

Q: Smart solution segment sales growth and product category expansion.

A: Confident in categories enabled by AI like video/audio interactions, safety, entertainment, appliances, etc., smart solution focuses on differentiated offerings with higher margins, expecting relatively strong growth in 2026