Shares of Tuya Inc. (NYSE: TUYA) surged 8.53% 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 substantial increase in 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 GAAP net profit of $11.0 million for the quarter, nearly doubling the full-year total for 2024, with a record-high GAAP net margin of 14.8%.
The company's earnings per share of $0.03 beat the analyst consensus estimate of $0.02 by 50%. This 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. With positive operating cash flow for the eighth consecutive quarter and a healthy net cash position, Tuya demonstrates its resilience and potential for sustained growth in the rapidly evolving AI and IoT markets.
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