Tuya Inc. (NYSE:TUYA) Q3 2024 Results Conference Call November 18, 2024 7:30 PM ET
Company Participants
Reg Chai - IR
Jerry Wang - CEO
Alex Yang - CFO
Conference Call Participants
Tom Tang - Morgan Stanley
Timothy Zhao - Goldman Sachs
Kai Xiao - CICC
John Roy - Water Tower Research
Operator
Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Tuya Inc. Third Quarter 2024 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded.
I'll now turn the call over to your first speaker today, Mr. Reg Chai, Investor Relations Director of Tuya. Please go ahead, Reg.
Reg Chai
Okay. Thank you, Emma. Thank you. Hello, everyone. Welcome to our Third Quarter 2024 Earnings Call.
Joining us today are Founder and CEO of Tuya, Mr. Jerry Wang; and our CFO, Ms. Alex Yang. The third quarter 2024 financial results and webcast of this conference call are available at ir.tuya.com. A replay of this call will also be available on our website in a few hours.
Before we continue, I refer you to our safe harbor statement in our earnings press release, which applies to this call as we will make forward-looking statements.
With that, I will now turn the call to our Founder and CEO, Mr. Jerry Wang. Jerry will deliver his remarks in Chinese, which will be followed by corresponding English translation. Now Jerry, please.
Jerry Wang
Hello, everyone. Thank you for joining Tuya's Third Quarter 2024 Earnings Call.
In the third quarter, we achieved our performance goals by prioritizing practical strategies and focusing on execution, revenue growth accelerated to 34% year-over-year increase. We maintained high operating efficiency, thus achieving a non-GAAP operating margin of around 9%. Our substantial interest income added to the bottom line resulting in a non-GAAP net profit margin of around 25%. These results were underpinned by the effective execution of our business strategies, coupled with ongoing efficiency initiatives that tightly controlled budgets and expenses, sustaining operating leverage as we did in last quarter.
Next, I will delve into some details on our business performance in the quarter.
In the third quarter, all 3 of our business segments delivered solid revenue performance. IoT PaaS revenue increased by over 26% year-over-year, maintaining a steady recovery momentum. The Smart Solutions segment achieved over 100% year-over-year revenue growth. This was driven by strong market demand, particularly in the Home Appliance category, where we have consistently observed robust global demand throughout the year, aligning well with our product planning and market expectation. Our focus on energy-efficient products and solutions has significantly contributed to this revenue growth.