Why Tuya’s Platform Pivot Paid Off in Q3 With Higher Margins and Profit

Tuya Inc. (NYSE:TUYA) is 1 of the best-performing small-cap tech stocks successful the past 3 years. On November 24, the institution reported its Q3 results for the play ended September 30. Total gross reached $82.5 million, up 1.1% year-over-year, marking Tuya’s ninth consecutive 4th of YoY gross growth.

Gross borderline roseate to 48.3%, portion operating expenses declined 34.1% to $36 million. These improvements contributed to GAAP nett net of $15.0 million, compared with a nett nonaccomplishment successful the aforesaid 4th past year. Net borderline reached 18.2%, up 23.6 percent points year-over-year.

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Management attributed the turnaround to a operation of outgo subject and request for its Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) offerings. PaaS gross grew 2.4% to $59.2 million, portion SaaS and different bundle roseate 15.4% to $11.5 million. In contrast, astute solutions revenue, Tuya’s hardware-centric segment, declined.

During the net call, executives highlighted that implicit 93% of the devices shipped successful Q3 were AI-enabled, signaling accrued integration of AI crossed Tuya’s ecosystem.

Tuya Inc. (NYSE:TUYA) provides a planetary IoT improvement platform, offering PaaS, SaaS, and different tools to assistance brands build, deploy, and negociate astute devices crossed categories specified arsenic energy, location automation, and security.

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Disclosure: None.