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

Tuya Inc 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' 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 $93.3 million.
Price Action: TUYA shares traded higher by 1.00% at $15.15 in the premarket session on the last check Wednesday.
Editor's note: Q3 analyst consensus has been updated to correct the old consensus.

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