Tuya Reports 3rd Quarter 2022 Unaudited Financial Results.

SANTA CLARA, Calif: Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading IoT cloud development platform, today announced its unaudited financial results for the third quarter of 2022.

Third Quarter 2022 Financial Highlights

Total revenue was US$45.0 million, down approximately 47.4% year over year (3Q2021: US$85.6 million).

IoT platform-as-a-service ("PaaS") revenue was US$30.9 million, down approximately 57.4% year over year (3Q2021: US$72.6 million).

Software-as-a-service ("SaaS") and other revenue was US$8.9 million, up approximately 60.2% year over year (3Q2021: US$5.6 million).

Overall gross margin for the quarter increased to 43.6%, up 1.0 percentage point year over year (3Q2021: 42.6%). Gross margin of IoT PaaS for the quarter decreased to 37.2%, down 5.7 percentage points year over year (3Q2021: 42.9%), mainly due to a decrease of 5 percentage points caused by the increase in accrued inventory allowance.

Operating margin for the quarter was negative 89.8%, down 32.3 percentage points year over year (3Q2021: negative 57.5%). Non-GAAP operating margin for the quarter was negative 52.7%, down 14.7 percentage points year over year (3Q2021: negative 38.0%).

Total cash and cash equivalents, and short-term investments were US$945.9 million as of September 30, 2022 compared to US$951.5 million as of June 30, 2022 and US$1.07 billion as of December 31, 2021.

Total shares repurchased in the form of American Depositary Shares ("ADSs") amounted to approximately US$108.6 million as of September 30, 2022. These repurchases were made pursuant to an existing 12-month share repurchase program ended on August 30, 2022. No repurchases were made during the third quarter of 2022 primarily due to dealing restrictions related to the Company's dual primary listing in Hong Kong and the publication of its interim results for the six months ended June 30, 2022.

Third Quarter 2022 Operating Highlights

IoT PaaS customers1 for the third quarter of 2022 were approximately 2,700 (3Q2021: approximately 3,000). Total customers for the third quarter of 2022 were approximately 3,100 (3Q2021: approximately 4,500). The Company's implementation of key-account strategy enabled it to be more focused on serving strategic customers.

Premium IoT PaaS customers2 for the trailing 12 months ended September 30, 2022 were 265 (3Q2021: 306). In the third quarter of 2022, the Company's premium IoT PaaS customers contributed to approximately 79.8% (3Q2021: 89.2%) of its IoT PaaS revenue.

Dollar-based net expansion rate ("DBNER")3 of IoT PaaS for the trailing 12 months ended September 30, 2022 was 63% (3Q2021: 179%).

Registered IoT device and software developers, or registered developers, were over 647,000 as of September 30, 2022, up 26.9% from approximately 510,000 developers as of December 31, 2021.

1. The Company defines an IoT PaaS customer for a given period as a customer who has directly placed orders for IoT PaaS with the Company during that period.

2. The Company defines a premium IoT PaaS customer as a customer as of a given date that contributed more than US$100,000 of IoT PaaS revenue during the immediately preceding 12-month period.

3. The Company calculates DBNER of IoT PaaS for a trailing 12-month...