On May 21, GLONGHUI | Graffiti Smart-W (02391.HK) announced that in the first quarter of 2024, total revenue was US$61.7 million, up about 29.9% year on year; IoT Platform as a Service (“PaaS”) revenue was US$45.6 million, up about 35.7% year on year; and revenue from smart solutions was US$7.5 million, up about 37.3% year on year. Total gross profit for the first quarter of 2024 increased 40.2% year over year to US$29.5 million, while gross margin for the first quarter of 2024 increased to 47.8% from 44.3% in the same period of 2023. The gross margin of IoT PaaS in the first quarter of 2024 was 46.4%, compared to 40.5% for the same period in 2023. The increase in gross margin was mainly due to changes in product portfolio, increase in product value, and a reversal was recorded for specific IoT chips and raw materials with low turnover compared to the provision of such IoT chips and raw materials in the first quarter of last year.
Mr. Wang Xueji, founder and CEO of Tuya, said, “2024 is our 10th anniversary. We started the first quarter of the year with good financial and operational performance, and made significant strategic progress. Our total revenue grew steadily during the quarter, our consolidated gross margin reached a new high, and achieved our first non-GAAP profit in this generally off-season quarter. Looking forward to the future, technological innovation is still at the core of our strategy. We fully embrace generative artificial intelligence and implement it into our products and services, so that global developers can efficiently create more interesting and valuable intelligent devices and intelligent spaces, and give the future an opportunity to disruptively enhance the user interaction experience and explore new intelligent business opportunities. We are confident that we will lead the growing field of smart technology and continue to create value for our customers and stakeholders.”
Ms. Liu Yao, Director and Chief Financial Officer of Tuya, added: “In the first quarter of 2024, our financial performance was strong and exceeded market expectations. Our core business, the IoT PaaS business, continues to rebound strongly, thanks to a recovery in overseas consumer electronics demand and a steady rise in global demand for smart solutions. Our profit margins have also continued to improve, and operational efficiency has further improved. Looking ahead, we are committed to maintaining this trend, driving long-term revenue growth and profitability, and ultimately providing better returns to shareholders.”