Shares of Tuya Inc. (NYSE: TUYA) surged 6.59% in after-hours trading on Tuesday following the release of its impressive first-quarter 2025 financial results. The global cloud platform service provider reported significant growth in revenue and a return to profitability, exceeding analyst expectations.
Tuya's Q1 2025 revenue climbed to $74.7 million, marking a substantial 21.1% increase compared to the same period last year. This growth was primarily driven by the company's IoT platform-as-a-service (PaaS) and smart solution segments. More notably, Tuya achieved a net profit of $11.0 million for the quarter, a remarkable turnaround from the net loss reported in Q1 2024. The company's earnings per share of $0.03 beat the analyst consensus estimate of $0.02 by 50%.
The strong financial performance can be attributed to Tuya's strategic focus on enhancing its AIoT capabilities and supporting global developers in integrating AI with smart devices. The company's ability to maintain revenue growth while improving profitability amid macroeconomic uncertainties has impressed investors. With a record-high GAAP net margin of 14.8% and positive operating cash flow for the eighth consecutive quarter, Tuya demonstrates its resilience and potential for sustained growth in the rapidly evolving AI and IoT markets.
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