Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

<ul><li>Tuya hosted its Investor Day on April 2, 2025, in Hangzhou, China and provided an update on its evolving “AI + IoT” strategy and its vision for enabling large-scale AI commercialization.</li><li>The event, attended by nearly 100 institutional and individual investors, featured key sessions including a corporate overview by the CEO and CFO, a deep dive into the AI Agent Development Platform, an introduction to Tuya’s AI system architecture, live demonstrations of AI-powered hardware, and an investor Q&amp;A session.</li><li>The catchphrase of the event was “With AI, smart hardware finally becomes truly smart.”</li></ul>

Tuya hosted its Investor Day on April 2, 2025, in Hangzhou, China and provided an update on its evolving “AI + IoT” strategy and its vision for enabling large-scale AI commercialization.The event, attended by nearly 100 institutional and individual investors, featured key sessions including a corporate overview by the CEO and CFO, a deep dive into the AI Agent Development Platform, an introduction to Tuya’s AI system architecture, live demonstrations of AI-powered hardware, and an investor Q&amp;A session.The catchphrase of the event was “With AI, smart hardware finally becomes truly smart.”

TUYA: Investor Day Highlights "AI + IoT" Strategy

<ul><li>AI integration enhances platform potential.</li><li>Tuya continues to drive AI into its product offerings, laying the groundwork for long-term revenue opportunities and broader market engagement.</li><li>While the near-term financial impact remains modest, recent developments highlight Tuya’s dedication to advancing its AIoT capabilities and positioning for future growth through next-gen AI use cases</li></ul>

AI integration enhances platform potential.Tuya continues to drive AI into its product offerings, laying the groundwork for long-term revenue opportunities and broader market engagement.While the near-term financial impact remains modest, recent developments highlight Tuya’s dedication to advancing its AIoT capabilities and positioning for future growth through next-gen AI use cases

TUYA: AI Development Continues to Drive Company into New Markets

<ul><li>Tuya reported another solid quarter, with revenue of $82.1 million, up 27% Y/Y (revenue of $299 million in FY24 was up 30% Y/Y).</li><li>Gross margin stayed in the upper-40s (47.8%). IoT PaaS revenue grew 26% Y/Y to $59.3 million.</li><li>Cash and equivalents grew to $1,017 million, and the company has no debt. </li></ul>

Tuya reported another solid quarter, with revenue of $82.1 million, up 27% Y/Y (revenue of $299 million in FY24 was up 30% Y/Y).Gross margin stayed in the upper-40s (47.8%). IoT PaaS revenue grew 26% Y/Y to $59.3 million.Cash and equivalents grew to $1,017 million, and the company has no debt. 

Tuya, Inc. - 4Q24 Earnings Show Continued Strength with 27% Y/Y Revenue Growth and Expense Control

<ul><li>Tuya is accelerating its AI efforts, with the integration of DeepSeek and Mistral, its introduction of AI driven dolls, and its introduction of AI hardware development frameworks.</li><li>The company is fully embracing AI into its product to drive adoption growth.</li><li>The strategic integration of AI addresses market demands for greater automation and customization, boosting its product intelligence. </li></ul>

Tuya is accelerating its AI efforts, with the integration of DeepSeek and Mistral, its introduction of AI driven dolls, and its introduction of AI hardware development frameworks.The company is fully embracing AI into its product to drive adoption growth.The strategic integration of AI addresses market demands for greater automation and customization, boosting its product intelligence. 

Tuya, Inc. - AI Efforts Accelerating Adoption and Position It for More Growth

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>On 18 November, it was announced that 65 Equity Partners (backed by Temasek) will invest US$100 million (S$134 million) for a 13% stake in Tuya Inc (TUYA US). </li>
<li>Net cash as a percentage of market cap is currently at 92%. Tuya's sales growth and improvement in operating margin in 1Q-3Q 2024 have also been impressive this year.</li>
<li>Comps are trading at average EV/EBITDA of 13.7x in 2025 versus 2.3x for for Tuya. If Tuya continues its turnaround, its valuation gap versus its peers could decrease further. </li>
</ul>


On 18 November, it was announced that 65 Equity Partners (backed by Temasek) will invest US$100 million (S$134 million) for a 13% stake in Tuya Inc (TUYA US). 
Net cash as a percentage of market cap is currently at 92%. Tuya's sales growth and improvement in operating margin in 1Q-3Q 2024 have also been impressive this year.
Comps are trading at average EV/EBITDA of 13.7x in 2025 versus 2.3x for for Tuya. If Tuya continues its turnaround, its valuation gap versus its peers could decrease further. 


Tuya: Improving Sales Growth and Profit Margins Help to Clench Investment by 65 Equity Partners

United States

Tuya Inc., doing business as Tuya Smart, provides IoT cloud platform. The Company offers solutions which enables brands, retailers, OEMs, and manufacturers to develop, launch, manage, and monetize software-enabled devices and services. Tuya Smart serves customers worldwide.

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Tuya Inc (TUYA US)

TUYA: Investor Day Highlights "AI + IoT" Strategy

Tuya hosted its Investor Day on April 2, 2025, in Hangzhou, China and provided an update on its evolving “AI + IoT” strategy and its vision for...

Water Tower Research

TUYA: AI Development Continues to Drive Company into New Markets

Tuya continues to drive AI into its product offerings, laying the groundwork for long-term revenue opportunities and broader market engagement.

Water Tower Research

Tuya, Inc. - 4Q24 Earnings Show Continued Strength with 27% Y/Y Revenue Growth and Expense Control

Tuya reported another solid quarter, with revenue of $82.1 million, up 27% Y/Y (revenue of $299 million in FY24 was up 30% Y/Y).

Water Tower Research

Tuya, Inc. - AI Efforts Accelerating Adoption and Position It for More Growth

Tuya is accelerating its AI efforts, with the integration of DeepSeek and Mistral, its introduction of AI driven dolls, and its introduction of AI...

Water Tower Research

Tuya: Improving Sales Growth and Profit Margins Help to Clench Investment by 65 Equity Partners

Tuya's net cash as a percentage of market cap is currently at 92%. Tuya's sales growth and improvement in operating margin in 1Q-3Q 2024 have also...

Douglas Kim

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