Benzinga | Aug 18, 2021 07:37AM EDT

Tuya Q2 Revenue Tops Consensus, Issues Cautious Q3 Guidance Amid Chip Crisis

* Tuya Inc (NYSE:TUYA) reported second-quarter FY21 revenue growth of 118% year-on-year to $84.7 million, beating the analyst consensus of $78 million.

* Growing digitization aided Pegasystems' (NASDAQ:PEGA) Q2 revenue of $325.7 million, up 43% Y/Y beat the analyst consensus of $273.1 million.

* Segments: Tuya's IoT PaaS revenue increased 163.9% Y/Y to $76.9 million, primarily driven by growth in SKUs and product categories supported by IoT PaaS, increased sales to existing customers as their smart device sales grew, and new customer acquisition.

* SaaS and other revenue grew 171.4% Y/Y to $3.4 million.

* Smart device distribution revenue decreased by 48.1% Y/Y to $4.4 million.

* Margins: The gross margin expanded 1,190 bps to 42.2%. The gross margin of IoT PaaS increased 970 bps to 42.4%.

* The non-GAAP operating margin loss improved 440 bps to (31.3%).

* Drivers: Out of the total 3,700 customers, IoT PaaS accounted for 2,600.

* Non-GAAP loss per ADS of $(0.04) was at par with the analyst consensus.

* Tuya held $1.3 billion in cash and equivalents. It generated $5.8 million in operating cash flow in Q2.

* Outlook: Tuya sees Q3 revenue of $83 million - $86 million below the analyst consensus of $109.9 million.

* Price Action: TUYA shares traded higher by 1.00% at $15.15 in the premarket session on the last check Wednesday.