Technology

Tuya Reports Fourth Quarter 2023 Unaudited Financial Results

Published

10 months ago

February 27, 2024

SANTA CLARA, Calif., Feb. 27, 2024 /PRNewswire/ — Tuya Inc. (“Tuya” or the “Company”) (NYSE: TUYA; HKEX: 2391), a global leading IoT cloud development platform, today announced its unaudited financial results for the fourth quarter ended December 31, 2023.

Fourth Quarter 2023 Financial Highlights

Total revenue was US$64.4 million, up approximately 42.2% year over year (4Q2022: US$45.3 million).

IoT platform-as-a-service (“PaaS”) revenue was US$47.2 million, up approximately 44.6% year over year (4Q2022: US$32.6 million).

Software-as-a-service (“SaaS”) and others revenue was US$9.5 million, up approximately 19.3% year over year (4Q2022: US$7.9 million).

Overall gross margin increased to 47.3%, up 2.7 percentage points year over year (4Q2022: 44.6%). Gross margin of IoT PaaS increased to 44.8%, up 3.3 percentage points year over year (4Q2022: 41.5%).

Operating margin was negative 36.7%, improved by 35.8 percentage points year over year (4Q2022: negative 72.5%). Non-GAAP operating margin was negative 0.4%, improved by 33.4 percentage points year over year (4Q2022: negative 33.8%).

Net margin was negative 16.8%, improved by 33.4 percentage points year over year (4Q2022: negative 50.2%). Non-GAAP net margin was 19.5%, improved by 31.0 percentage points year over year (4Q2022: negative 11.5%).

Net cash generated from operating activities was US$31.8 million (4Q2022: net cash used in operating activities was US$0.1 million).

Total cash and cash equivalents, time deposits and U.S. treasury securities recorded as short-term and long-term investments were US$984.3 million as of December 31, 2023, compared to US$952.0 million as of December 31, 2022.

For further information on the non-GAAP financial measures presented above, see the section headed “Use of Non-GAAP Financial Measures.”

Fourth Quarter 2023 Operating Highlights

IoT PaaS customers1 for the fourth quarter of 2023 were approximately 2,200 (4Q2022: approximately 2,400). Total customers for the fourth quarter of 2023 were approximately 3,200 (4Q2022: approximately 3,400). The Company’s implementation of key-account strategy has enabled it to be more focused on serving strategic customers.

Premium IoT PaaS customers2 for the trailing 12 months ended December 31, 2023 were 265 (4Q2022: 263). In the fourth quarter of 2023, the Company’s premium IoT PaaS customers contributed approximately 82.7% of its IoT PaaS revenue (4Q2022: approximately 77.0%).

Dollar-based net expansion rate (“DBNER”)3 of IoT PaaS for the trailing 12 months ended December 31, 2023 was 103% (4Q2022: 51%).

Registered IoT device and software developers were approximately 993,000 as of December 31, 2023, up 40.3% from approximately 708,000 developers as of December 31, 2022.

1. The Company defines an IoT PaaS customer for a given period as a customer who has directly placed orders for IoT PaaS with the Company during that period.

2. The Company defines a premium IoT PaaS customer as a customer as of a given date that contributed more than US$100,000 of IoT PaaS revenue during the immediately preceding 12-month period.

3. The Company calculates DBNER of IoT PaaS for a trailing 12-month period by first identifying all customers in the prior 12-month period (i.e., those have placed at least one order for IoT PaaS during that period), and then calculating the quotient from dividing the IoT PaaS revenue generated from such customers in the current trailing 12-month period by the IoT PaaS revenue generated from the same Company of customers in the prior 12-month period. The Company’s DBNER may change from period to period, due to a combination of various factors, including changes in the customers’ purchase cycles and amounts and the Company’s customer mix, among other things. DBNER indicates the Company’s ability to expand customer use of the Tuya platform over time and generate revenue growth from existing customers.

Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, “In the fourth quarter of 2023, we continued to execute our proven development strategies of focusing on key account customers and enhancing our product capabilities to boost our value proposition, while also essentially completing our organization adjustment. These combined efforts enabled us to conclude the year with strong sequential growth momentum. Notably, we achieved a 42.2% year-over-year revenue increase, reaching approximately $64.4 million in the quarter, alongside a record-high blended gross margin of 47.3%. These results reflect the substantial value of our platform, products, and services offer to our customers, affirming our confidence in Tuya’s resilience and its capability to navigate industry cycles with improved operational leverage and financial performance.”

Ms. Yao (Jessie) Liu, Director and Chief Financial Officer of Tuya, added, “The fourth quarter marked our transition from recovery to growth, efficiency enhancements, and margin expansion. During the quarter, all three business sectors recorded robust revenue growth, and their margins either improved or remained steady, a testament to the effectiveness of our product focus and enrichment strategy. Our strategic commitment to cost management and operational efficiency, coupled with the steady growth of gross profits, resulted in continued record-high non-GAAP net profits and positive net operating cashflow. As we advance into 2024, we are confident that Tuya’s solid financial position and momentum will sustain our business expansion and product profitability.”

Fourth Quarter 2023 Unaudited Financial Results

REVENUE

Total revenue in the fourth quarter of 2023 increased by 42.2% to US$64.4 million from US$45.3 million in the same period of 2022, mainly due to the increase in IoT PaaS revenue, SaaS and others revenue and smart device distribution revenue.

IoT PaaS revenue in the fourth quarter of 2023 increased by 44.6% to US$47.2 million from US$32.6 million in the same period of 2022, primarily due to the relief of downstream inventory backlog and a global economic improvement compared with the same period of 2022, along with the effective customer-focus and product-enhancement strategies the Company adopted to navigate through the macroeconomic headwinds. Correspondingly, the Company’s DBNER of IoT PaaS for the trailing 12 months ended December 31, 2023 increased to 103% from 51% for the trailing 12 months ended December 31, 2022.

SaaS and others revenue in the fourth quarter of 2023 increased by 19.3% to US$9.5 million from US$7.9 million in the same period of 2022, primarily due to an increase in revenue from cloud software products. The Company remained committed to offering value-added services and a diverse range of software products with compelling value propositions to its customers.

Smart device distribution revenue in the fourth quarter of 2023 increased by 64.6% to US$7.8 million from US$4.7 million in the same period of 2022, primarily due to an increase in revenue from smart device solutions and the variations in the timing and volume of customer demands and purchases.

COST OF REVENUE

Cost of revenue in the fourth quarter of 2023 increased by 35.3% to US$33.9 million from US$25.1 million in the same period of 2022, generally in line with the increase in the Company’s total revenue.

GROSS PROFIT AND GROSS MARGIN

Total gross profit in the fourth quarter of 2023 increased by 50.9% to US$30.5 million from US$20.2 million in the same period of 2022 and gross margin increased to 47.3% in the fourth quarter of 2023 from 44.6% in the same period of 2022.

IoT PaaS gross margin in the fourth quarter of 2023 was 44.8%, compared to 41.5% in the same period of 2022, primarily due to the changes in product mix, enhancement in product value, and the decrease in provision recorded for certain slow-moving IoT chips and raw materials compared to the fourth quarter of last year.

SaaS and others gross margin in the fourth quarter of 2023 was 74.2%, which remained relatively stable, compared to 75.2% in the same period of 2022.

Smart device distribution gross margin in the fourth quarter of 2023 was 29.7%, compared to 14.6% in the same period of 2022, primarily due to higher-value product solutions we provided to our customers during the fourth quarter of 2023.

OPERATING EXPENSES

Operating expenses increased by 2.0% to US$54.1 million in the fourth quarter of 2023 from US$53.0 million in the same period of 2022.

Non-GAAP operating expenses, defined as operating expenses excluding share-based compensation expenses and credit loss of long-term investments, decreased by 13.5% to US$30.7 million in the fourth quarter of 2023 from US$35.5 million in the same period of 2022. Share-based compensation expenses in the fourth quarter of 2023 were US$15.9 million, compared to US$17.5 million in the same period of 2022. Credit loss of long-term investments was US$7.4 million in the fourth quarter of 2023, compared to nil in the same period of 2022.

Research and development expenses in the fourth quarter of 2023 were US$22.8 million, down 17.9% from US$27.8 million in the same period of 2022, primarily because of the strategic streamlining of the Company’s research and development team and operations. During this quarter, average salaried employee headcount of the Company’s research and development team was down approximately 21.9% year over year, compared to the same quarter in last year. Non-GAAP adjusted research and development expenses in the fourth quarter of 2023 were US$19.4 million, compared to US$23.8 million in the same period of 2022.

Sales and marketing expenses in the fourth quarter of 2023 were US$10.9 million, down 2.4% from US$11.2 million in the same period of 2022, primarily due to the strategic streamlining of the Company’s sales and marketing team, partially offset by increased spending in marketing events as the revenue returned to a year-over-year growth trajectory since the third quarter of 2023. Non-GAAP adjusted sales and marketing expenses in the fourth quarter of 2023 were US$9.5 million, compared to US$9.6 million in the same period of 2022.

General and administrative expenses in the fourth quarter of 2023 were US$23.8 million, up 46.8% compared to US$16.2 million in the same period of 2022, primarily due to the credit loss of US$7.4 million of long-term investments. Non-GAAP adjusted general and administrative expenses in the fourth quarter of 2023 were US$5.3 million, compared to US$4.3 million in the same period of 2022.

Other operating income, net in the fourth quarter of 2023 was US$3.4 million, primarily due to the receipt of software value-added tax refunds and various general subsidies for enterprises.

LOSS FROM OPERATIONS AND OPERATING MARGIN

Loss from operations in the fourth quarter of 2023 narrowed by 28.0% to US$23.6 million from US$32.8 million in the same period of 2022. Non-GAAP loss from operations in the fourth quarter of 2023 narrowed by 98.3% to US$0.3 million from US$15.3 million in the same period of 2022.

Operating margin in the fourth quarter of 2023 was negative 36.7%, improved by 35.8 percentage points from negative 72.5% in the same period of 2022. Non-GAAP operating margin in the fourth quarter of 2023 was negative 0.4%, improved by 33.4 percentage points from negative 33.8% in the same period of 2022.

NET LOSS/PROFIT AND NET MARGIN

Net loss in the fourth quarter of 2023 narrowed by 52.4% to US$10.8 million from US$22.7 million in the same period of 2022. The difference between loss from operations and net loss in the fourth quarter of 2023 was primarily because of a US$13.1 million interest income achieved mainly due to well implemented treasury strategies on the Company’s cash and bank time deposits recorded as short-term and long-term investments.

The Company had a non-GAAP net profit of US$12.6 million in the fourth quarter of 2023, compared to a non-GAAP net loss of US$5.2 million in the same period of 2022, demonstrating the Company’s ability to sustain profitability on a non-GAAP basis.

Net margin in the fourth quarter of 2023 was negative 16.8%, improving by 33.4 percentage points from negative 50.2% in the same period of 2022. Non-GAAP net margin in the fourth quarter of 2023 was 19.5%, improving by 31.0 percentage points from negative 11.5% in the same period of 2022.

BASIC AND DILUTED NET LOSS/PROFIT PER ADS

Basic and diluted net loss per ADS was US$0.02 in the fourth quarter of 2023, compared to US$0.04 in the same period of 2022. Each ADS represents one Class A ordinary share.

Non-GAAP basic and diluted net profit per ADS was US$0.02 in the fourth quarter of 2023, compared to non-GAAP basic and diluted net loss of US$0.01 in the same period of 2022.

CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND U.S. TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTS

Cash and cash equivalents, time deposits and U.S. treasury securities recorded as short-term and long-term investments were US$984.3 million as of December 31, 2023, compared to US$952.0 million as of December 31, 2022, which the Company believes is sufficient to meet its current liquidity and working capital needs.

NET CASH GENERATED FROM OPERATING ACTIVITIES

Net cash generated from operating activities in the fourth quarter of 2023 was US$31.8 million, compared to net cash used in operating activities US$0.1 million in the same period of 2022. The net cash generated from operating activities for the fourth quarter of 2023 improved mainly due to the increase in the Company’s revenue, and the decrease in operating expenses, particularly employee-related costs, and working capital changes in the ordinary course of business.

For further information on non-GAAP financial measures presented above, see the section headed “Use of Non-GAAP Financial Measures.”

Business Outlook

In the fourth quarter of 2023, we continued to observe a moderately declining yet persisting overall inflation, which is expected to continually influence the discretionary consumer electronics spending. On the supply chain front, we expect downstream inventory levels to be normalizing ongoingly, providing downstream smart device manufacturers, brands, and retail channels with greater flexibility and resilience to adapt their operational and procurement plans as necessary. This, in turn, will revitalize their investment in smart business. Overall, discretionary consumer electronic spending alongside enterprise procurement are expected to prioritize cost-effectiveness, reflecting a balanced approach widely adopted in the current economic climate.

In response to this evolving market environment, the Company will remain committed to continuously iterating and improving its products and services, further enhancing software and hardware capabilities, expanding key customer base, investing in innovations and new opportunities, diversifying revenue streams, and further optimizing operating efficiency. At the same time, the Company understands that future trajectories may encounter challenges, including shifting consumer spending patterns, regional economic disparities, inventory management, foreign exchange rate volatility, and broader geopolitical uncertainties.

Conference Call Information

The Company’s management will hold a conference call at 07:30 P.M. Eastern Time on Tuesday, February 27, 2024 (08:30 A.M. Beijing Time on Wednesday, February 28, 2024) to discuss the financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this conference including a conference access code, a PIN number (personal access code), the dial-in number, and an e-mail with detailed instructions to join the conference call.

Online registration: https://www.netroadshow.com/events/login?show=a98d0a81&confId=60968

The replay will be accessible through March 5, 2024 by dialing the following numbers:

International:

+1–929–458–6194

United States:

+1–866–813–9403

Access Code:

925036

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.tuya.com.

About Tuya Inc.

Tuya Inc. (NYSE: TUYA; HKEX: 2391) is a global leading IoT cloud development platform with a mission to build an IoT developer ecosystem and enable everything to be smart. Tuya has pioneered a purpose-built IoT cloud development platform that delivers a full suite of offerings, including Platform-as-a-Service, or PaaS, and Software-as-a-Service, or SaaS, to businesses and developers. Through its IoT cloud development platform, Tuya has enabled developers to activate a vibrant IoT ecosystem of brands, OEMs, partners and end users to engage and communicate through a broad range of smart devices.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating expenses, non-GAAP loss from operations (including non-GAAP operating margin), non-GAAP net (loss)/profit (including non-GAAP net margin), and non-GAAP basic and diluted net (loss)/profit per ADS, as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company defines non-GAAP measures by excluding the impact of share-based compensation expenses and credit-related impairment of long-term investments from the respective GAAP measures. The Company presents the non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company also believes that the use of the non-GAAP measures facilitates investors’ assessment of its operating performance.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the aforementioned non-GAAP financial measures is that they do not reflect all items of expenses that affect the Company’s operations. Share-based compensation expenses and credit-related impairment of long-term investments have been and may continue to be incurred in the business and are not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of Tuya’s non-GAAP financial measures to the most comparable U.S. GAAP measures are included at the end of this press release.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. The forward-looking statements included in this press release are only made as of the date hereof, and the Company disclaims any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

Investor Relations Contact

Tuya Inc.
Investor Relations
Email: ir@tuya.com

The Blueshirt Group
Gary Dvorchak, CFA
Phone: +1 (323) 240-5796
Email: gary@blueshirtgroup.com

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2022 AND 2023

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

As of December 31,

2022

2023

ASSETS
Current assets:
Cash and cash equivalents

133,161

498,688

Short-term investments

821,134

291,023

Accounts receivable, net

12,172

9,214

Notes receivable, net

2,767

4,955

Inventories, net

45,380

32,865

Prepayments and other current assets, net

8,752

11,053

Total current assets

1,023,366

847,798

Non-current assets:
Property, equipment and software, net

3,827

2,589

Operating lease right-of-use assets, net

9,736

7,647

Long-term investments

18,031

207,489

Other non-current assets, net

1,179

877

Total non-current assets

32,773

218,602

Total assets

1,056,139

1,066,400

LIABILITIES AND SHAREHOLDERS‘ EQUITY
Current liabilities:
Accounts payable

9,595

11,577

Advances from customers

27,633

31,776

Deferred revenue, current

6,821

6,802

Accruals and other current liabilities

33,383

32,807

Incomes tax payables

–

689

Lease liabilities, current

3,850

3,883

Total current liabilities

81,282

87,534

Non-current liabilities:
Lease liabilities, non-current

5,292

3,904

Deferred revenue, non-current

394

506

Other non-current liabilities

7,004

3,891

Total non-current liabilities

12,690

8,301

Total liabilities

93,972

95,835

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

AS OF DECEMBER 31, 2022 AND 2023

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

As of

December 31,

As of

December 31,

2022

2023

Shareholders’ equity:

Ordinary shares

–

Class A ordinary shares

Class B ordinary shares

Treasury stock

(86,438)

(53,630)

Additional paid–in capital

1,584,764

1,616,105

Accumulated other comprehensive loss

(22,115)

(17,091)

Accumulated deficit

(514,073)

(574,848)

Total shareholders’ equity

962,167

970,565

Total liabilities and shareholders’ equity

1,056,139

1,066,400

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE LOSS

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

December 31,
2022

December 31,
2023

Revenue

45,286

64,411

Cost of revenue

(25,100)

(33,948)

Gross profit

20,186

30,463

Operating expenses:

Research and development expenses

(27,792)

(22,806)

Sales and marketing expenses

(11,203)

(10,937)

General and administrative expenses

(16,181)

(23,754)

Other operating incomes, net

2,160

3,410

Total operating expenses

(53,016)

(54,087)

Loss from operations

(32,830)

(23,624)

Other income/(loss)

Other non-operating income, net

779

778

Financial income, net

10,234

13,135

Foreign exchange (loss)/gain, net

(102)

Loss before income tax expense

(21,919)

(9,694)

Income tax expense

(811)

(1,122)

Net loss

(22,730)

(10,816)

Net loss attributable to Tuya Inc.

(22,730)

(10,816)

Net loss attribute to ordinary shareholders

(22,730)

(10,816)

Net loss

(22,730)

(10,816)

Other comprehensive (loss)/income

Changes in fair value of long-term investments

(8,347)

(5,321)

Transfer out of fair value changes of long-term investments

–

7,487

Foreign currency translation

2,090

1,772

Total comprehensive loss attributable to Tuya Inc.

(28,987)

(6,878)

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE LOSS (CONTINUED)

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

December 31,

2022

December 31,

2023

Net loss attributable to Tuya Inc.

(22,730)

(10,816)

Net loss attributable to ordinary shareholders

(22,730)

(10,816)

Weighted average number of ordinary shares used in computing

net loss per share, basic and diluted

554,121,595

557,103,923

Net loss per share attributable to ordinary shareholders, basic

and diluted

(0.04)

(0.02)

Share–based compensation expenses were included in:

Research and development expenses

4,032

3,446

Sales and marketing expenses

1,611

1,462

General and administrative expenses

11,867

11,028

TUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

December 31,
2022

December 31,
2023

Net cash (used in)/generated from operating activities

(138)

31,760

Net cash (used in)/generated from investing activities

(165,305)

299,763

Net cash (used in)/generated from financing activities

(3,432)

162

Effect of exchange rate changes on cash and cash equivalents,
restricted cash

2,138

729

Net (decrease)/increase in cash and cash equivalents,
restricted cash

(166,737)

332,414

Cash and cash equivalents, restricted cash at the beginning of period

299,898

166,274

Cash and cash equivalents, restricted cash at the end of period

133,161

498,688

TUYA INC.

UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY

COMPARABLE FINANCIAL MEASURES

(All amounts in US$ thousands (“US$”),

except for share and per share data, unless otherwise noted)

For the Three Months Ended

December 31,

2022

December 31,

2023

Reconciliation of operating expenses to

non–GAAP operating expenses

Research and development expenses

(27,792)

(22,806)

Add: Share–based compensation expenses

4,032

3,446

Adjusted Research and development expenses

(23,760)

(19,360)

Sales and marketing expenses

(11,203)

(10,937)

Add: Share–based compensation expenses

1,611

1,462

Adjusted Sales and marketing expenses

(9,592)

(9,475)

General and administrative expenses

(16,181)

(23,754)

Add: Share–based compensation expenses

11,867

11,028

Add: Credit-related impairment of long-term investments

–

7,435

Adjusted General and administrative expenses

(4,314)

(5,291)

Reconciliation of loss from operations to

non–GAAP loss from operations

Loss from operations

(32,830)

(23,624)

Operating margin

(72.5) %

(36.7) %

Add: Share–based compensation expenses

17,510

15,936

Add: Credit-related impairment of long-term investments

–

7,435

Non–GAAP Loss from operations

(15,320)

(253)

Non–GAAP Operating margin

(33.8) %

(0.4) %

Reconciliation of net loss to non–GAAP net (loss)/profit

Net loss

(22,730)

(10,816)

Net margin

(50.2) %

(16.8) %

Add: Share–based compensation expenses

17,510

15,936

Add: Credit-related impairment of long-term investments

–

7,435

Non–GAAP Net (loss)/profit

(5,220)

12,555

Non–GAAP Net margin

(11.5) %

19.5 %

Weighted average number of ordinary shares used in

computing non–GAAP net loss per share

– Basic

554,121,595

557,103,923

– Diluted

554,121,595

589,438,606

Non–GAAP net (loss)/profit per share attributable

to ordinary shareholders

– Basic

(0.01)

0.02

– Diluted

(0.01)

0.02

View original content:https://www.prnewswire.com/news-releases/tuya-reports-fourth-quarter-2023-unaudited-financial-results-302073314.html

SOURCE Tuya Inc.

Technology

Online Language Learning Market to Grow by USD 81.55 Billion (2025-2029), Cost Benefits and Flexibility Drive Growth, AI-Driven Market Transformation- Technavio

Published

14 minutes ago

January 3, 2025

NEW YORK, Jan. 3, 2025 /PRNewswire/ — Report with the AI impact on market trends – The global online language learning market size is estimated to grow by USD 81.55 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 27.5% during the forecast period. Cost benefits and flexibility of online language learning is driving market growth, with a trend towards artificial intelligence in language learning. However, threat from open sources poses a challenge. Key market players include Babbel GmbH, Berlitz Corp., Cengage Learning Inc., Chegg Inc., Duolingo Inc., Educational Testing Service, edX LLC, EF Education First Ltd., Enux Education Ltd., Houghton Mifflin Harcourt Co., inlingua International Ltd., iTutorGroup Inc., IXL Learning Inc., McGraw Hill LLC, New Oriental Education and Technology Group Inc., Sanako, Think and Learn Pvt. Ltd., uFaber, University of Oxford, and Voxy Inc..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Online Language Learning Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 27.5%

Market growth 2025-2029

USD 81552.9 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

21.2

Regional analysis

APAC, Europe, North America, South America, and Middle East and Africa

Performing market contribution

APAC at 44%

Key countries

India, US, China, UK, Spain, Japan, Germany, Canada, Brazil, and France

Key companies profiled

Babbel GmbH, Berlitz Corp., Cengage Learning Inc., Chegg Inc., Duolingo Inc., Educational Testing Service, edX LLC, EF Education First Ltd., Enux Education Ltd., Houghton Mifflin Harcourt Co., inlingua International Ltd., iTutorGroup Inc., IXL Learning Inc., McGraw Hill LLC, New Oriental Education and Technology Group Inc., Sanako, Think and Learn Pvt. Ltd., uFaber, University of Oxford, and Voxy Inc.

Market Driver

The language learning market is booming as multinational corporations prioritize multilingual skills for their global workforce. E-learning is at the forefront of this trend, with language experts and providers offering high-quality content through flexible pricing structures and technological advancements. Artificial intelligence and machine learning personalize teachings for individual learners, from beginners to advanced, in languages such as English, Spanish, French, German, Chinese, Italian, Arabic, Korean, and others. Flexibility and affordability are key, with e-learning accessible via smartphones, computers, tablets, and wearable gadgets like HoloLens, fitness trackers, and smartwatches. Big data and adaptive learning help track learner progress and deliver content in real-time. However, challenges include technical issues, limited human interaction, and cultural adaptation. E-learning platforms are democratizing education, enabling lifelong learning and skill development for busy professionals and students alike.

The duration of an online language program is a significant consideration for potential learners, second only to pricing. The time required to learn a language varies among individuals. However, the integration of Artificial Intelligence (AI) in language learning has been shown to reduce the time compared to traditional methods. For instance, Duolingo utilizes AI-powered chatbots for interactive language learning. These bots personalize the learning experience, saving time, money, and effort for students. AI’s ability to tailor digital language courses to each learner makes online language learning more efficient and effective.

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Market Challenges

The language learning market is booming, driven by multinational corporations’ need for a multilingual workforce. E-learning is a key player, offering flexibility and high-quality content through language experts and providers. However, challenges persist, such as technical issues and cost for implementation. Flexible pricing structures and product innovations, including wearable technologies and AI algorithms, are addressing these concerns. Individual and institutional learners benefit from Internet penetration and digital technology, accessing multimedia resources and interactive exercises on smartphones, computers, and tablets. Age and learning style vary, with Mandarin, Spanish, French, German, Chinese, and other languages in demand. Retention and motivation are crucial, with adaptive learning and personalized teachings key to success. Cultural adaptation and communication are also important for cross-cultural understanding. Despite these advances, limited human interaction and technological barriers remain. The democratization of education through e-learning platforms continues, with a focus on lifelong learning and skill development.The global online language learning market faces significant competition from massive open online courses (MOOCs), which are easily accessible and free. MOOCs, offered by platforms like Coursera, edX, XuetangX, Udacity, and FutureLearn, have gained rapid popularity, negatively impacting the market. Educational institutions collaborate with MOOC providers to offer free courses, attracting a large user base. Duolingo, a free language learning service, targets emerging markets like India and China, further intensifying the competition. Market growth is challenged by the availability and affordability of these free resources.

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Segment Overview

This online language learning market report extensively covers market segmentation by

End-user 1.1 Courses1.2 Solutions1.3 AppsLanguage 2.1 English2.2 Mandarin2.3 Spanish2.4 OthersGeography 3.1 APAC3.2 Europe3.3 North America3.4 South America3.5 Middle East and Africa

1.1 Courses- Online language courses form the core of language learning programs, offering digital content and courseware designed to teach a language. These courses are often more affordable than traditional classroom-based programs, making language learning accessible to a larger audience. Online language learning platforms provide diverse resources, such as videos, interactive lessons, quizzes, and live sessions with native speakers, catering to various learning styles. While some courses require specific hardware, vendors are developing compatible offerings for any smart gadget. The English and Mandarin language courses dominate the market, but content differentiation caters to various learner categories. Self-paced learning is driving growth in the courses segment, primarily for students and business professionals. The necessity of learning foreign languages for international businesses and students continues to increase, leading to accelerated growth in the courses segment of the global online language learning market.

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Research Analysis

The online language learning market is revolutionizing the way people acquire multilingual skills in the digital age. E-learning platforms offer flexibility and convenience, allowing learners to access language experts and resources from anywhere in the world. Cross-border communication is easier than ever before, making it essential for individuals and businesses to master new languages. Artificial intelligence plays a significant role in personalized learning, providing adaptive exercises based on individual strengths and weaknesses. Flexible pricing structures, wearable technologies, and Internet access expand accessibility to language learning. Multimedia resources, interactive exercises, movies, virtual classrooms, and language learning tools enhance the learning experience. Communication skills are a crucial component of language learning, and online platforms provide opportunities for practice through interactive features and real-time feedback.

Market Research Overview

The language learning market is experiencing significant growth due to the increasing demand for multilingual skills in the multinational corporation sector. E-learning has become a popular choice for language experts and learners alike, offering flexibility and high-quality content. Artificial intelligence is playing a major role in personalizing teachings through AI algorithms and wearable technologies like HoloLens, fitness trackers, smartwatches, and smart glasses. Individual learners and institutional learners alike benefit from the internet penetration and the expanding e-learning market. Product innovations such as self-learning apps, tutoring, and virtual classrooms offer affordable and adaptive learning programs for various age groups. Mandarin, Spanish, French, German, Chinese, Italian, Arabic, Korean, and other languages are in high demand. Technological advancements like big data, machine learning, and adaptive learning enable learner progress tracking and adaptive content delivery. However, challenges such as limited human interaction, technological barriers, and lack of personalization remain. The democratization of education through e-learning platforms and lifelong learning opportunities is transforming the education sector. Busy professionals and students can benefit from the flexibility of learning styles and the availability of multimedia resources, interactive exercises, movies, and virtual classrooms. Communication and cross-cultural understanding are essential in today’s globalized world. E-learning platforms are also being adopted by educational institutions and the corporate sector for beginner, intermediate, and advanced learners. Synchronous and asynchronous learning, as well as blended learning, cater to different learning preferences.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

End-userCoursesSolutionsAppsLanguageEnglishMandarinSpanishOthersGeographyAPACEuropeNorth AmericaSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

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Email: media@technavio.com
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SOURCE Technavio

Technology

IAS Announces CFO Transition

Published

14 minutes ago

January 3, 2025

Jill Putman Appointed Interim CFO

Reiterates Fourth Quarter and Full Year 2024 Outlook

NEW YORK, Jan. 3, 2025 /PRNewswire/ — Integral Ad Science (Nasdaq: IAS), a leading global media measurement and optimization platform, today announced the departure of Tania Secor as Chief Financial Officer (CFO) and the appointment of Jill Putman as Interim CFO, effective immediately. Ms. Secor departed IAS to pursue new opportunities. IAS has commenced a search for a new permanent CFO.

In addition, IAS is reiterating its revenue and adjusted EBITDA outlook for the fourth quarter and full year 2024 that it provided on November 12, 2024 in its third quarter 2024 financial results release.

Lisa Utzschneider, Chief Executive Officer of IAS, commented, “We thank Tania for her contributions to our finance organization since joining two years ago, and we wish her the best in her future endeavors. Jill has been an IAS Board member since 2021 and has served as the Chair of the Audit Committee. She is a trusted partner to IAS and a proven finance leader with over 30 years of experience including as CFO of Jamf Holding Corp. We are excited to welcome Jill to IAS in this interim capacity as we prepare for a year of growth and innovation.”

Ms. Putman commented, “I am delighted to extend my partnership with IAS as Interim CFO. I look forward to leading IAS’s talented finance team and to working across the organization to make a positive impact at IAS based on my relevant finance experience and my first-hand knowledge of the company.”

Ms. Putman will continue to serve as a member of the Board but has stepped down from her position as a member and the Chair of the Audit Committee of the Board. The Board has appointed current IAS Board member Bob Lord as a member and the Chair of the Audit Committee.

About Jill Putman

Jill Putman is a globally experienced executive with a full range of financial and leadership expertise with particular emphasis in high growth, global expansion, investor relations, and M&A. She served as the CFO of Jamf Holding Corp. (Nasdaq: JAMF) from 2014 to 2022, where she led the company’s Finance, Investor Relations and Human Resource functions. Prior to her role at Jamf, Ms. Putman was the Chief Financial Officer at Kroll Ontrack from July 2011 until May 2014. From 1997 to 2009, Ms. Putman held several roles, including VP of Finance, at Secure Computing, which was acquired by McAfee in 2008. Ms. Putman began her career with KPMG, serving in its audit practice.

About Integral Ad Science

Integral Ad Science (IAS) is a leading global media measurement and optimization platform that delivers the industry’s most actionable data to drive superior results for the world’s largest advertisers, publishers, and media platforms. IAS’s software provides comprehensive and enriched data that ensures ads are seen by real people in safe and suitable environments, while improving return on ad spend for advertisers and yield for publishers. Our mission is to be the global benchmark for trust and transparency in digital media quality. For more information, visit integralads.com.

Disclosure Regarding Non-GAAP Financial Information

Adjusted EBITDA is a non-GAAP measure. Information about the company’s use of adjusted EBITDA can be found in its third quarter 2024 financial results release.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance, including guidance, expectations with respect to the CFO transition described above, and our business, including pipeline and industry trends. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including: (i) the adverse effect on our business, operating results, financial condition, and prospects from various macroeconomic factors, including instability in geopolitical or market conditions; (ii) our failure to innovate or make the right investment decisions; (iii) our ability to provide digital or cross-platform analytics; (iv) our failure to maintain or achieve industry accreditation standards; (v) our dependence on integrations with advertising platforms, demand side providers (“DSPs”) and proprietary platforms that we do not control; (vi) our ability to compete successfully with our current or future competitors in an intensely competitive market, including with respect to the Oracle opportunity; (viii) our dependence on senior management and the impact of the CFO transition described above; and (ix) other factors disclosed in our filings with the SEC. Given these factors, as well as other variables that may affect our operating results, you should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, or use historical trends to anticipate results or trends in future periods.

We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to update or revise any forward- looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Investor Contact:
Jonathan Schaffer
ir@integralads.com

Media Contact:
press@integralads.com

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SOURCE Integral Ad Science, Inc.

Technology

NASA to Host Media Call Highlighting Mars Sample Return Update

Published

14 minutes ago

January 3, 2025

WASHINGTON, Jan. 3, 2025 /PRNewswire/ — NASA Administrator Bill Nelson and Nicky Fox, associate administrator, Science Mission Directorate, will host a media teleconference at 1 p.m. EST, Tuesday, Jan. 7, to provide an update on the status of the agency’s Mars Sample Return Program.

The briefing will include NASA’s efforts to complete its goals of returning scientifically selected samples from Mars to Earth while lowering cost, risk, and mission complexity.

Audio of the media call will stream live on the agency’s website.

Media interested in participating by phone must RSVP no later than two hours prior to the start of the call to: dewayne.a.washington@nasa.gov. A copy of NASA’s media accreditation policy is online.

The agency’s Mars Sample Return Program has been a major long-term goal of international planetary exploration for more than two decades. NASA’s Perseverance rover is collecting compelling science samples that will help scientists understand the geological history of Mars, the evolution of its climate, and prepare for future human explorers. The return of the samples also will help NASA’s search for signs of ancient life.

For more information about NASA’s Mars exploration, visit:

https://nasa.gov/mars

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SOURCE NASA