China's Internet of Things Firm Tuya Expects to Turn Profitable in Four-to-Five Years
By Yifan Wang
Chinese internet of things, or IoT, company Tuya Inc. is aiming
to turn a profit within four to five years, supported by booming
global demand for smart devices.
"Our strategy is to gradually narrow losses, but the more
important factor is growth, making the pie bigger," company CFO
Jessie Liu said in an interview Friday.
The New York exchange-listed company, which provides cloud
platforms for businesses to develop mobile apps and operating
systems for smart devices, posted a better-than-expected revenue of
$56.9 million in the first quarter, tripling from a year
However, its net loss widened to $40.5 million from $20.6
million a year earlier, weighed by sharply higher share-based
The earnings marked Tuya's first results release since it went
public in March and raised $915.4 million with a
higher-than-expected offering price.
The gross margin of Tuya's main platform business tracked up for
the ninth consecutive quarter in the January-to-March period, Ms.
Tuya, which counts Calex, Philips and Schneider Electric as
clients, forecasts second-quarter revenue at $78 million to $81
million, representing a two-fold increase from the year
The pandemic has pushed consumers into the habit of using
internet-based devices at home such as app-controlled light bulbs
and smart speakers, Ms. Liu said. Increasing online business
activities has also fueled companies' demand for digitization of
equipment and facilities, she added.
"The whole IoT industry is still at a very early stage, like the
mobile internet ten years ago, when people weren't using
smartphones that much," Ms. Liu said, "That's why we think the very
strong, rapid growth will continue."
Write to Yifan Wang at email@example.com
(END) Dow Jones Newswires
May 14, 2021 02:38 ET (06:38 GMT)
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