Tuya Inc (NYSE:TUYA) stock plunges 21.62% (As on June 15, 11:36:17 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the first quarter of FY 22. IoT PaaS revenue in the first quarter of 2022 decreased by 16.1% to US$41.8 million from US$49.8 million in the same period of 2021, primarily because the Company’s customers became more prudent in their purchases in light of the global inflationary environment, which is weakening the purchase power of end users. The decrease was also due to the preventive measures taken across multiple regions in China against new waves of COVID-19, which has affected the Company’s selling and operating activities, including delivery and acceptance by customers of the Company’s products. SaaS and others revenue in the first quarter of 2022 increased by 146.7% to US$5.8 million from US$2.3 million in the same period of 2021, maintaining a robust growth momentum. The growth was mainly driven by (i) an increase in revenues from the Industry SaaS business resulting from the acquisition of new customers and expanded deployment of Industry SaaS by existing customers, and (ii) an increase in revenues from the value-added services that we offer to customers. Smart device distribution revenue in the first quarter of 2022 increased by 63.9% to US$7.8 million from US$4.8 million in the same period of 2021.

TUYA in the first quarter of FY 22 has reported the adjusted loss per share of 7 cents, missing the analysts’ estimates for the adjusted loss per share of 3 cents. The company had reported 2.7 percent fall in the adjusted revenue to $55.3 million in the first quarter of FY 22, missing the analysts’ estimates for revenue of $56.2 million. This is mainly due to the decrease in IoT PaaS revenue, partially offset by the increases in SaaS and other revenue and smart device distribution revenue. Total gross profit in the first quarter of 2022 decreased by 2.4% to US$22.8 million from US$23.4 million in the same period of 2021 and gross margin remained stable at 41.2% in the first quarter of 2022 compared to 41.1% in the same period of 2021. Non-GAAP loss from operations was US$37.8 million in the first quarter of 2022, compared to US$24.5 million in the same period of 2021.

For the second quarter of 2022, the Company currently expects its total revenue to be between US$60 million and US$65 million, versus the consensus of $62 million.