Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of $5.30, representing an 81% upside potential from the current price [8][17]. Core Insights - The company achieved significant revenue growth, with 2024 revenue reaching $298.6 million, a 29.8% increase year-over-year. This growth was driven by strong performance in IoT PaaS and smart solutions [3][17]. - The company reported its first positive net income under GAAP in 2024, with a net profit of $5 million, compared to a net loss of $60.3 million in 2023. The NON-GAAP net profit was $75.3 million, reflecting a 268.5% year-over-year increase [3][17]. - The overall gross profit margin improved to 47.4% in 2024, up 1 percentage point from 2023, indicating enhanced profitability, particularly in the IoT PaaS segment [3][17]. Financial Data and Forecast - Revenue projections for 2025-2027 are $359 million, $425 million, and $494 million, respectively, with year-over-year growth rates of 20.2%, 18.3%, and 16.3% [3][8]. - The company expects to maintain a strong gross profit margin, with estimates of 46.4% for 2025 and 45.7% for 2026 [3][11]. - The net profit forecast for 2025 is $42 million, increasing to $110 million by 2027, indicating a strong upward trend in profitability [3][14]. Business Strategy and Customer Base - The company is focusing on optimizing its customer structure, with an increase in premium IoT PaaS customers contributing a higher percentage of total revenue, rising from 83.4% in 2023 to 86.9% in 2024 [4][5]. - The developer ecosystem is expanding, with 1.316 million registered developers and over 1.07 million smart device SKUs developed through the platform [5][6]. - The company is prioritizing AI investments, launching the Tuya AI Agent development platform to integrate various large language models, enhancing its service offerings [6][7]. Dividend Policy - The company announced a second dividend for 2024, totaling approximately $37 million, reflecting confidence in its financial health and commitment to returning value to shareholders [7][8].

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of $5.30, representing an upside of 81% from the current price [8][17]. Core Insights - The company achieved revenue of $298.6 million in 2024, marking a year-over-year growth of 29.8%. This growth was driven by strong performance in IoT PaaS and smart solutions [3][17]. - The company reported its first positive net income under GAAP, with a net profit of $5 million in 2024, compared to a net loss of $60.3 million in 2023. The NON-GAAP net profit reached $75.3 million, reflecting a significant year-over-year increase of 268.5% [3][17]. - The overall gross profit margin (GPM) improved to 47.4% in 2024, up 1 percentage point from 2023, indicating enhanced profitability, particularly in the IoT PaaS segment [3][17]. Financial Data and Forecast - Revenue projections for 2025-2027 are $359 million, $425 million, and $494 million, respectively, with expected growth rates of 20.2%, 18.3%, and 16.3% [3][8]. - The company’s operating expenses decreased by 11.0% year-over-year in 2024, with reductions in R&D, sales and marketing, and administrative expenses [3][17]. - The company’s cash balance exceeded $1 billion by the end of 2024, indicating strong liquidity [3][17]. Customer and Market Dynamics - The number of premium IoT PaaS customers increased to 298 in 2024, contributing 86.9% to total revenue, up from 83.4% in 2023, showcasing improved customer retention and focus on high-value clients [4][5]. - The company’s developer ecosystem expanded, with 1.316 million registered developers and over 1.07 million smart device SKUs developed through its platform [5][6]. AI and Technological Advancements - The company has embraced generative AI and launched the Tuya AI Agent development platform, integrating major language models to enhance its offerings [6][7]. - Future focus areas include AI devices and spatial intelligence applications, aiming to improve user interaction and operational efficiency [7][8].

Core Insights - Tuya Smart is redefining smart energy through innovative AI cloud platform services, integrating technology with social value creation [1][5] - The global energy crisis and climate change necessitate a shift towards clean energy, requiring over 90% contribution to the electricity mix by 2050 [2] - Tuya's Home Energy Management System (HEMS) addresses challenges in energy management by extending control to individual devices [4][9] Group 1: Technological Innovations - Tuya's HEMS utilizes a four-step approach: insight, execution, optimization, and prediction to enhance energy management [4] - The integration of large AI models like DeepSeek allows for advanced data processing and decision-making in energy management [7][8] - AI-driven energy management systems are transforming how energy is consumed and optimized across various applications, from home devices to industrial solutions [9][16] Group 2: Applications in Energy Management - Smart appliances, such as air conditioners and lighting systems, are designed to adapt to user behavior, significantly reducing energy consumption [10] - Cloud-based energy optimization generates real-time consumption maps, enabling efficient energy-saving strategies for commercial buildings [11][12] - In large industrial parks, AI enhances forecasting and transparency in energy consumption, leading to significant cost reductions [13][15] Group 3: Social Responsibility and Future Vision - Tuya promotes a philosophy of "technology for good," aiming to embed carbon reduction in every aspect of the energy chain [5][17] - The company emphasizes that social value and commercial success can coexist, inviting innovators to join in creating sustainable energy solutions [17]

Summary of Tuya's Q4 2024 Earnings Call Company Overview - **Company**: Tuya - **Industry**: IoT (Internet of Things) and AI (Artificial Intelligence) Key Financial Highlights - **Q4 2024 Revenue**: Approximately $82 million, representing a 27.4% year-over-year growth [4] - **Annual Revenue**: Approximately $298.6 million, achieving nearly 30% year-over-year growth [4] - **Gross Margin**: Stable at around 47% [4] - **Non-GAAP Operating Margin**: 7.4% [5] - **Non-GAAP Net Profit Margin**: 25.2%, with GAAP profitability achieved for the first time [5] - **Operating Cash Flow**: Generated around $80.4 million in positive operating cash flow for 2024 [5] - **Net Cash Balance**: Over $1 billion at the end of Q4 [5] Strategic Developments - **AI Investment**: Significant investment in AI R&D, with the launch of the spatial large language model and on-device AI to enhance smart product experiences [2][3] - **Business Model Transition**: Transitioning from a PaaS model to a hardware solution model, enhancing competitiveness in various sectors including smart home, hospitality, and renewable energy [3] - **Smart Solutions Revenue Growth**: Achieved approximately 58% growth in smart solution revenue, driven by demand for gateways, central controls, and energy efficiency solutions [4][3] Market Position and Customer Engagement - **Customer Base**: The number of IoT premium customers grew by 11% to 298, with a revenue dollar expansion rate exceeding 122% [5] - **Developer Ecosystem**: Registered developers on the platform reached around 1.32 million, with over 1.07 million SKUs of smart devices developed [7] - **Retention Rate**: Top 10% revenue contributing customers maintained a retention rate of about 97% [5] Future Outlook - **AI and Device Integration**: Plans to integrate AI capabilities across all categories within the Tuya developer platform, ensuring AI-enabled devices by default [9] - **Market Expansion**: Focus on expanding market penetration in Europe, Latin America, and Asia-Pacific, particularly for large enterprise customers [10] - **SaaS Growth**: SaaS is expected to be a long-term growth area, with a focus on increasing recurring revenue models [18][23] Competitive Landscape - **AI Market Dynamics**: The AI market is seen as a burgeoning field with numerous players, and Tuya aims to provide tools for developers to easily bring their ideas to market [24] - **SaaS and PaaS Margins**: Expected stable margins for PaaS around 45% and SaaS over 70%, while solution margins may decrease slightly as the solution segment grows [22][23] Additional Insights - **Sustainability Recognition**: Tuya's Home Energy Management System Solutions recognized in the UN Global Compact Report for corporate sustainability practices [7] - **Dividend Declaration**: A second dividend for 2024 totaling about $37 million was approved, reflecting strong financial positions [11] Conclusion - **Overall Performance**: 2024 marked a profitable year for Tuya, achieving operational profitability and significant strategic advancements in AI and market expansion [12]

Core Insights - Tuya Smart has integrated the DeepSeek large language model into its AIoT platform, enhancing the development of smart home management robots and driving significant transformation in the smart home sector [1][5][14] - The global home service robot market is projected to grow from USD10.7 billion in 2023 to USD14.24 billion by 2030, with a compound annual growth rate of 4.4% from 2024 to 2030, indicating a strong demand for home management solutions [3] Group 1: Market Dynamics - The shift in global family structure towards fewer children and an aging population has increased reliance on home management robots for chores and caregiving, contributing to market growth [3] - Despite high demand, the home management robot market faces challenges such as high technical costs and operational mismatches that affect user experience [4] Group 2: Technological Advancements - The integration of DeepSeek will provide developers with advanced solutions, enabling robots to offer bio-level interaction and cognitive enhancement, thus evolving into "personal butlers" [5][14] - Future robots will utilize full-domain reasoning technology to learn user habits and make decisions based on the entire home environment, enhancing their functionality [7][14] Group 3: User Interaction and Safety - Home management robots will evolve to engage in emotional interactions, responding to user emotions and preferences, thereby becoming more anthropomorphic companions [9][10][11] - These robots will also play a crucial role in family safety, capable of responding to emergencies and assisting in daily care for children and the elderly [12][13][14]

Core Viewpoint - Tuya Smart has announced a deep collaboration with Beijing Volcano Engine Technology Co., Ltd. to integrate the "Doubao" large model into Tuya's cloud developer platform, aiming to promote the application of AI large models and AI cloud-native technologies across various fields [1] Group 1 - The partnership will leverage the capabilities of the Doubao large model, including language, voice, and video, to support AI smart hardware developers in accelerating innovation through comprehensive support in development, marketing resources, and traffic [1]

Financial Data and Key Metrics Changes - In Q4 2024, Tuya Inc. reported approximately $82 million in revenue, reflecting a year-over-year growth of 27.4% [13] - For the entire year 2024, total revenue reached about $298.6 million, marking nearly 30% year-over-year growth [15] - The company achieved its first-ever annual GAAP net profit and inaugural quarterly and annual non-GAAP operating profitability [6][15] - The overall gross margin remained stable at around 47%, while annual operating expenses declined by approximately 10% year-over-year [15] Business Line Data and Key Metrics Changes - Q4 PaaS revenue was approximately $59.3 million, a 25.7% year-over-year increase [14] - Other revenue reached about $11.5 million, up 21.1% year-over-year, driven by stable growth in SaaS validator services [14] - Smart solution revenue grew by 45.5% year-over-year, reaching about $11.3 million, supported by robust demand across various categories [14] Market Data and Key Metrics Changes - The number of IoT PaaS premium customers grew by 11% to 298 [17] - The revenue dollar expansion rate (DBNER) was 122% at the end of Q4, marking five consecutive quarters above 100% [18] - The company maintained a retention rate of about 97% among its top 10% revenue-contributing customers [19] Company Strategy and Development Direction - Tuya Inc. aims to build a global AIoT developer ecosystem, focusing on AI agents and open-source software solutions [11] - The company is committed to expanding its market presence in Europe, Latin America, and the Asia Pacific region [33] - Tuya Inc. plans to integrate AI capabilities across all categories within its developer platform, ensuring AI-enabled devices by default in the future [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth, emphasizing the importance of AI, IoT, and cloud technologies in driving user experience [7][11] - The company noted sustained growth in end-market demand and stable customer relationships throughout 2024 [16] - Management highlighted the importance of maintaining operational efficiency and improving profitability through a strong developer ecosystem [37] Other Important Information - Tuya Inc. ended Q4 with a net cash balance of over $1 billion, maintaining a strong liquidity position [16] - The company received recognition for its home energy management system solutions in the United Nations Global Compact report [26] - Tuya Inc. achieved an MSCI ESG rating of A and a WINS ESG rating of A2, reflecting its commitment to sustainability [26] Q&A Session Summary Question: Can you elaborate on AI usage scenarios in PaaS and smart solutions? - Management indicated that 2024 is a pivotal year for AI, focusing on audio and video interaction devices and energy solutions that require complex decision-making [47][49] Question: What is the trend in unit prices and its impact on margins? - Management noted that AI is still in early stages, and while margins may not be significantly impacted in the short term, long-term value is expected to increase [56][60] Question: What are the growth prospects for SaaS? - Management stated that SaaS growth is dependent on the deployment of devices and emphasized the importance of customer stickiness for recurring revenue [68][70] Question: Is M&A an active consideration for the company? - Management confirmed that M&A is an open option, focusing on extending the developer ecosystem and identifying potential partners [76][79] Question: What is the current demand for IoT parts and potential for high-quality customers? - Management highlighted a balanced structure in the business across categories and regions, with ongoing efforts to expand high-quality PaaS customers [84][88]

Exhibit 99.2 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this preliminary results announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this preliminary results announcement. Tuya Inc. 塗鴉智能* (A company controlled through weighted voting rights and incorporated in t ...

Group 1 - Tuya Inc. (NYSE: TUYA) was suggested for a trade in November when the stock price was approximately $1.50, indicating a potential for strong returns [1] - The company is associated with a strategy that combines trading and income approaches to enhance savings and retirement timelines [1] Group 2 - The service offered by the company includes a money-back guarantee for unsatisfied customers, emphasizing confidence in their investment ideas [2] - The company claims to provide high-conviction investment ideas from a team with a proven track record [2]

Core Viewpoint - Tuya Inc. achieved significant financial milestones in 2024, including quarterly and full-year profitability on both GAAP and non-GAAP bases, driven by strong revenue growth across all segments and improved operational efficiency [5][21][30]. Financial Highlights Fourth Quarter 2024 - Total revenue increased by 27.4% year-over-year to $82.1 million, up from $64.4 million in Q4 2023 [6][7]. - IoT platform-as-a-service (PaaS) revenue rose by 25.7% to $59.3 million [15]. - Software-as-a-service (SaaS) and others revenue grew by 21.1% to $11.5 million [15]. - Smart solution revenue surged by 45.5% to $11.3 million [15]. - Overall gross margin improved to 47.8%, up from 47.3% in Q4 2023 [9]. - Non-GAAP operating margin reached 10.3%, a significant improvement from negative 0.4% in Q4 2023 [12]. - Net profit was $9.8 million, compared to a net loss of $10.8 million in the same period last year [13][14]. Full Year 2024 - Total revenue for the year was $298.6 million, reflecting a year-over-year growth of approximately 29.8% [21]. - IoT PaaS revenue increased by 29.4% to $217.1 million [26]. - SaaS and others revenue rose by 10.6% to $39.6 million [26]. - Smart solution revenue increased by 58.3% to $42.0 million [26]. - Gross margin for the year improved to 47.4%, up from 46.4% in 2023 [23]. - The company reported a net profit of $5.0 million for the year, marking its first fiscal year of net profitability on a GAAP basis [30]. Operational Efficiency - Operating expenses decreased by 11.0% to $189.1 million for the year, reflecting the company's focus on cost management [25]. - Research and development expenses were $95.0 million, down 7.1% from the previous year [27]. - Sales and marketing expenses decreased by 8.3% to $37.1 million [27]. - General and administrative expenses fell by 15.4% to $68.3 million [27]. Cash Flow and Liquidity - Net cash generated from operating activities was $80.4 million for the year, up 120.5% from $36.4 million in 2023 [35]. - As of December 31, 2024, total cash and cash equivalents were $1,016.7 million, compared to $984.3 million at the end of 2023 [34]. Dividend Declaration - The Board declared a dividend of $0.0608 per ordinary share, amounting to approximately $37 million, payable on or around April 9, 2025 [38][40].