Tuya Inc Fourth Quarter and Fiscal Year 2025 Earnings Call - AI integration drives steady growth and higher profitability

Operator: Morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Tuya Inc’s fourth quarter and fiscal year 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question and answer session. Please be informed that today’s conference is being recorded. I’ll now turn the call over to your first speaker today, Ms. Regina Wang, Investor Relations Associate Director of Tuya. Please go ahead.

Regina Wang, Investor Relations Associate Director, Tuya Inc.: Thank you, operator. Hello, everyone. Welcome to our fourth quarter and fiscal year 2025 earnings call. Joining us today are our Founder and CEO, Mr. Jerry Wang, and our Co-founder and CFO, Mr. Alex Yang. The fourth quarter and fiscal year 2025 financial results and webcast of the conference call are available at ir.tuya.com. A replay of this call will also be available on our IR 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. I will now turn the call over to our Founder and CEO, Mr. Jerry Wang. Jerry will deliver his remarks in Chinese, which will be followed by a corresponding English translation. Jerry, please. Hello, everyone.

Thank you for joining Tuya’s earnings call for the fourth quarter, 2025. In 2025, against the complex and evolving external environments, we maintained stability across our platform business, delivered steady full-year revenue growth, and achieved a notable improvement in GAAP profitability. At the same time, we made solid progress in building a more systematic AI capability framework. For full year 2025, we generated total revenue of $320 million, representing a year-over-year increase of approximately 7.8%. Profitability and cash flow quality continued to improve. These results reflect the resilience and stability of our core platform business, as well as our ongoing progress in prioritizing resource allocation and execution discipline. On the strategic front, we continued to incubate new AI+IoT application scenarios and accelerated the systematic integration of AI capabilities across our platform and the device ecosystem.

AI is evolving from a mere overlay of discrete features into fully deployable operational applications. As part of our AI strategy, we introduced the AI-powered Smart Life Assistant, Hey Tuya, at CES. Through a more intuitive and tangible entry point, integrating AI agents with hardware devices, we aim to help users enjoy a more comfortable and effortless home experiences. accelerating the real-world adoption of AI capabilities across a broader range of everyday scenarios. Our understanding of the integration pathway between AI and the smart products is becoming increasingly clear. AI is progressing beyond the stage of capability overlay and entering a phase of deep integration with device form factors and industry specific scenarios. Its value is increasingly reflected in application maturity, improved revenue structures, and enhanced operational efficiency.

We believe that as AI evolved from a conversational tool into an intelligent agent capable of engaging in real-world operations, industry expectations for underlying system stability, real-time responsiveness and scalability are increasing significantly. The impact of AI extends beyond enhancing product experiences. It is also reshaping application architecture and transforming modes of ecosystem collaboration. As AI applications continue to mature, their value will increasingly be reflected in their replicability and the capacity to scale effectively across real-world deployments. Looking ahead, we will continue to advance our strategy across three key priorities. First, we will further strengthen our AI-native platform capabilities, enable them to more effectively support millions of developers in creating a diverse range of next generation AI devices and applications. Second, we will accelerate the deployment and the scalable expansion of AI application service across key scenarios.

Third, we will deepen our investments in developer ecosystem growth and enhance our support for developers. Fostering a vibrant community grounded in innovation and commercial success. Let me turn the call over to our Co-founder and CFO, Alex Yang, who will share more details about our financial performance and the business progress.

Alex Yang, Co-founder and CFO, Tuya Inc.: Hello everyone, this is Alex. I will now provide more details on our fourth quarter and full year results. Please note that all the figures are in U.S. dollars and all the comparisons are year-over-year, unless stated otherwise. In the fourth quarter of 2025, we generated total revenue of approximately $48.5 million, representing a year-over-year increase of 3%. Against the backdrop of the continuous conscious industry demand and more conservative customer procurement cycles, we achieved our 10th consecutive quarter of year-over-year growth. In the fourth quarters, our blended gross margin was 47.6%, while non-GAAP operating margin improved to 11.1% compared with 10.3% in the same period last year. Non-GAAP net margin reached 24.4%.

Net operating cash flow totaled $23.5 million, making the 11th consecutive quarters of positive operating cash flow. Gross margin remained stable, underscoring the company’s pricing power, driven by the product value and technology capabilities, as well as the strong competitive positioning of our platform-based business model in a dynamic market environment. From a full year perspective, our stable growth in 2025 became even more pronounced. Our full year revenue reached over $322 million, representing a year-over-year increase of 7.8%. Blended gross margin of the full year improved to 48.2%, up 0.8 percentage points from 2024. Non-GAAP operating margin reached to 10.5%, an increase of 2.9 percentage points year-over-year, while non-GAAP net margin roses to 24.9%.

Full year non-GAAP net income reached to a record high of $80.1 million, up approximately $4.7 million compared with 2024. Among our segments, the PaaS business delivered stable performance, generating revenue of over $230 million, representing a year-over-year increase of 6.5%. Against the backdrop of extended customer budgeting cycles. We maintain stable growth in our core business by optimizing our customer mix and enhancing our product capabilities by empowering my customers to provide a more competitive applications. At the end of 2025, the number of PaaS premium customers reached to 291, continuing to contribute a structurally stable revenue to the PaaS business.

Such a diversified structures without reliance on any single customer group has further strengthened our resilience in a vital operating environment. The SaaS and others business generate a full year revenue of $44.8 million, representing a year-over-year increase of 13.4%. Of this total, recurring services revenues grows by 37% year-over-year, emerging as a key growth driver of the SaaS. We’re looking forward to enlarge this segment faster by this recurring model. On a full year basis, revenue growth from the SaaS and other business outpaced the company’s overall revenue growth. This strong performance highlights the continued expansion of cloud software revenues, especially those AI-enabled softwares, and reflects the gradual realization of the lifecycle value from the platform software capabilities as the installation base of the device expands.

Our smart solution business generates full year revenue of $45.7 million, making an 8.9% year-over-year increase. In this segment, we observe that AI capabilities are stimulating demand in certain new product categories, while also enhancing the overall pricing powers of our product offerings. At the end of 2025, our total cash and cash equivalent amounted to over $1 billion. Precise will be $1,017 million, together with the time deposit and the treasury securities recorded as short-term and long-term investments. This net cash providing ample flexibility to support AI capability development, ecosystem expansion, and potential capital allocations initiatives. Full year profitabilities was primarily driven by three factors. First, the continuous stability of our core platform business. Second, the initial revenue contribution from AI-related products and applications.

Third, disciplined expense management and the realization of operating leverage. On the AI ecosystem side for the developers. Within our developer ecosystem, we continue to advance the open source capabilities of TuyaOpen and further development our AI agent platform. By end of 2025, the number of registered AI+IoT developers exceeded 1.8 million, representing a 37% year-over-year increase. The cumulative number of AI agents on the Tuya platform reach about 16,000, spanning a wide range of smart product categories. At the application deployment level, AI capabilities are being integrated across a variety of end user products, gradually establishing standardized pathway for AI applications. Recently, we host a overseas development event centered on hands-on AI hardware applications.

Including the first hackathons held in Silicon Valley, this event attract over 300 developers, which about 90% of them are from overseas. All participating projects were built and demonstrated on the real hardwares using Tuya T5 AI development boards, completing the journeys from concept to a functional prototype within only 48 hours. This enabled AI capability to be able to operate directly on physical devices. Those products span multiple scenarios, including AI companion wearables and desktop AI terminals, as well as applications in education and security. Some of those products have already entered subsequent incubation stage and attracted commercial interest. Beyond customer-facing products and ecosystem development, we have rapidly applied AI internally to enhance the development efficiency. For instance, like the in short-term front-end development process, nearly 40% of the codes is generated with AI assistance.

This has significantly shortened our R&D iteration cycles and reduced the cost of the repetitive development. Those efficiency gains enable us to maintain the pace of the products and the solution iterations while controlling the headcounts growth. Building on this foundation, we plan to launch the AI development tools for the developers within this years and through the AI coding services, web coding. We aim to further lower the barriers for AI hardware development and boost the Tuya developer efficiencies by enabling more low-code and no-code developers to participate in the AI hardware industry and application ecosystem. This initiative will help expand the developer base while accelerating the commercialization of AI applications. Finally, so with the maturation of the Physical AI technology, so the opportunity for deep integration between AI and physical world has arrived. Our launch of Hey Tuya is to build on this site.

Without waiting for the large scale of deployment of like enable embodied robots, Hey Tuya leveraged hundreds of millions of the existing Powered by Tuya smart devices worldwide to enable AI to fully perceive and proactively interact with the real world today. It draws on understanding and reasoning on large models while seamlessly interacting within with the smart devices that helps manage daily tasks. This represent a new form of integrated situational AI that making the benefits of AI tangible and immediately accessible rather than distant closure promised. In summary, the 2025 showcases the company’s continuous progress across its business structures, profitability models and competitive competitivity frameworks on the technical side.

Throughout 2025, Tuya’s Physical AI technology was validated for feasibility in smart devices, giving rise to a wide range of AI hardware forms, leveraging our accumulated strength across our developer communities, hardware ecosystem and global delivery capabilities. We’re well-positioned to a continuous advance in AI deployment and transforming it into a sustainable long-term competitive advantage. Looking ahead, we’ll continue to focus our efforts in these directions. First, we will further categorize the platform-level AI capabilities to enable more efficient applications of AI across diverse device and industry standards. By lower the technology barriers, we aim to help new players bridge the technology gap and accelerate this adaption of AI innovations in the hardware industry. Meanwhile, throughout Hey Tuya, our next generation AI assistant, we will establish a new standard for interactive experience in smart devices through AI, accelerating a mass market penetration of smart products.

Finally, we’ll maintain cost discipline, consistently improving our profitability quantity and long-term competitiveness. Thank you all. Operator, right now we can begin the Q&A section.

Operator: Thank you. We will now begin the question and answer session. To ask a question now, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment for our first question. We will now take our first question from the line of Yang Liu from Morgan Stanley. Please ask your question. Yang, your line is open.

Yang Liu, Analyst, Morgan Stanley: Thanks for the opportunity to ask question, and congratulations on the solid result. I have two questions. You know, the first one is regarding the recent tax rate change at the U.S. side, whether that will have any impact on our business outlook going forward. My second question is regarding the recent upstream memory and other chipset supply constraint, and whether it will impact Tuya’s business. Let me translate my question to Chinese.

Alex Yang, Co-founder and CFO, Tuya Inc.: Yeah. Thank you, Mr. Liu. The first question, yes, the, let’s consider as a positive indicators that about the tariff reductions and recently. The demand didn’t react immediately yet, but we already see that the customers’ confidence levels about a better environment to do the business in, especially in global manufacturing, trading, so improved. People have a more positive and more confidence that the macro economy will become more stable and better this year. The demand and order didn’t showed up immediately. Two reasons. The first one is that still people consider the global situation will be more dynamic. those type of reason to reductions maybe will not be a sustainable level.

In the near futures, maybe March, that, maybe new executive order will come up. The we’ll just like the reset to the term of the tariffs level, and maybe into the fix 15% or a little bit higher. That’s the first one, dynamic. People rather not overreact. The second one is that this kind of a news is happening during the Chinese New Year. Till now, most of the manufacturers, they start back to work today. I mean, today, literally today. Many of the manufacturers, they didn’t starting to offer a new price and try to making new orders. We’ll see. Anyhow, we’ll be a very positive and directions we’re looking forward to.

While overall costs eventually will bring down a bit somehow, so the customers will be able to have more confidence to enlarge the demand. That’s the first one. The second one is, yes, since last Q4, we’re really starting to notice that the shortage of the production capacity of the semiconductor side. First one is that the shortage will not impact us because consider as a significant buyers in these sectors. I mean, all our suppliers will ensure that we will get a fulfillment of our orders no matter what. That’s the first one. In the same time, that’s since last Q4, we’re really trying to prepare, how can I say?

quite good inventories levels to going against those kind of dynamics in a supplying cycles. That’s the first one. Shortage is not a problem for us. About the cost raise, we’re continuous to keep closing on that. Right now, we didn’t meet that immediately increase. Like I mentioned, that’s because of the buying forces. If this kind of intensity is trying to increase, you know, without a limit, we’re not sure. We’ll keep closing on that. Anyhow, because of the special value position that the company been doing so far, that kind of increase on the supply side will not impact on our demand or in significantly on our gross margin side. We’ll keep closing on that. Seems that it will be lasting maybe for another one or two quarters.

Thank you.

Yang Liu, Analyst, Morgan Stanley: Thank you, Alex.

Operator: Thank you. We will now take our next question from the line of Timothy Zhao from Goldman Sachs. Please ask your question. Your line is open.

Timothy Zhao, Analyst, Goldman Sachs: Great. Good morning, management. Thank you for taking my question, congrats on the very solid results. I also have two questions here. One is, I think a more broader question about the company’s value proposition in the agentic AI world. Given we have seen continued progress in the agentic AI capabilities, how should we think about Tuya’s value proposition to the customers in your PaaS and SaaS business? Will the AI technology advance actually enhance the self-development capabilities of your customers? How should we think about the long-term relationship between Tuya and your customers? Especially, I think you mentioned that in the SaaS business, the recurring revenue actually increased quite dramatically last year. Just wondering if you can further elaborate on that.

Second question is that also in your remarks, you talk about going forward, you want to accelerate the AI deployment of the key application scenarios. Just wondering if you can also further elaborate on this as well. For example, what scenarios that you see are more promising? Just wondering if you can share more details.

Alex Yang, Co-founder and CFO, Tuya Inc.: Yeah. Thank you, Timothy. Yeah, it’s a long question. First one is that about the macro side. We’re happy to see that, more customers starting to thinking on how they can create their own differentiations, how they can build their own capabilities in their own R&D side. We’re happy to see that, otherwise we have to offer that. I think that AI makes no difference for past 10 years, you know, experience, is that, while we’re starting to enable the manufacturing players to embrace the smart technology wise. Since the starting with the IoT, it’s the same stuff. If they cannot do that, but they want it, we have to offer it. For the all the time of the company’s histories, we continue to offer two things.

The first thing is that, if they don’t have the capability right now, we offer them the off-the-shelf solution turnkey. If they really have some capability, we continue to educate them to do that, then we offer them infrastructures to allow them to do that some extra values they want to create more freely. I think that’s the, what we call ecosystem we want to create. It’s not like they just keep selling stuff. They don’t have to do that. No. We’re happy to see that we already have a significant amount of the customers who already have their own kind of in-house capability to create their own differentiation and make their own innovations. We’re happy to see that. The same as that, we continue to enable our customers to build their own, like, the device level innovations and application level.

I think AI makes no difference. We always continue to do the same thing. Including 2025, the showcase is that for some new players, they don’t know nothing about that, but they only have some ideas how they want to bring AI into their business. We create some turnkey solution for them. They can grab and go. In the same time, we’ll continue to have the very deep and active conversations with their engineering team. What they can take for now and what they can build in the futures and how Tuya can enable them to do that more efficiently and faster without the overwhelming burden. We continue to do that the same way.

we think that, you know, several years ago, you still need to convince or tell people how the smart devices are promising business. You still need to tell them that this will be the future. Right now, you don’t have to tell people that AI is the future. Every people are buying that. The key part is that they already have the concept in their mind and how you’ll be able to help them to make that faster and more efficiency and more competitively, I mean, on the user experience side. I think that’s the first one. The second one is on the SaaS recurring stuff.

I think that the key driver for that is that, remember our past, we continue to deploy a significant amount and scale of the devices overall with or without any type of recurring services out there. Which mean that we will have a large base, and in the same time come along with AI. Some, what we call existing categories will only come with IoT before, and we already see that combined with AI capability, we will be able to offer some extra experience and values on the same type of the devices and which already deployed on the household. In 2025, we’ll continue to offer some new services on the same type of the hardware. Then we see that it should work out.

Even on the existing recurring services, like some storage services, by offering extra AI capability, we make the services more valuable or more feasible for the end user side. We either continue to enlarge our recurring consumer base. In the same time, we’re trying to offer more recurring services out there. We believe that will be a long-term, especially for some AI initial products, which will mean that the new type of applications, since day one, those kind of new recurring models, we started taking places from the beginning. I think that’s for the SaaS and recurring. We continue to grow that. I think that would be one of the fast-growing, fastest growings and segment in our middle term. That’s for the recurring. The third one is for the AI applications.

I think that’s, we already share some, our overviews and again, late last year. Those segments that AI will be able to provide more significant values, we believe right now will be two. The first one is that all the multi-modeling applications, including the video and audio interactions and analysis. Including like the companions, toy, securities. Those type of products will really have a significant base and will have new players coming in. Coming on with AI, either you make those device interactions more smoothly and also combined with the perceptions of the video and audios, the devices will be able to provide more things. Like the security sides that you’ll be able to protect the people’s home more precisely without bringing any false alarms.

Like for the companion side, or toy side, you really could be able to provide some educational level of the interactions by providing the right language, providing the right understanding, the right emotion, providing the right feedbacks, and providing the right type of knowledge to the targets, to the target customers. That will be the first one, multi-modeling applications, especially on audio and video interactions. The second one is data analytic and decision-making. A typical use cases is for energy management. Come along with a full cycle and device deployment for the energy life cycle, including the generation of energy storage, consumptions, and metering. You’ll be able to understand how the electricity will be moving along. I mean, From the grid into the, into each of the devices, how people want to manage the flow.

Through all the data, you’ll be able to know, and then the AI will be able to, you know, jump one step ahead. It’s not only providing you the data analytics and suggestions, but the AI will be able to make the decisions. How you’ll be able to control your dishwasher a different way, how you’ll be able to manage your battery bank different way, how you’ll be able to manage the AC and heating system a different way. Combined with the variable pricing in different timing, combined with the generation of your solar panel, combined with the what kind of battery you have in your home right now. Either to reduce the total cost directly. That will be a typical showcase is that AI is not providing the tool. AI will be able to provide the outcome.

People will really see directly that what will be the TC, what will be the total values they can get for the life cycle of the usage of this type of devices. They pay for the services as well. The data analytics and decision making will be another part. Beyond energy, we’re looking for more scenarios in that segment as well. That’s it, Timothy.

Timothy Zhao, Analyst, Goldman Sachs: Thank you. Thank you for the detailed answers.

Operator: Thank you. We will now take our next question from Mingran Li from CICC. Please ask your question, Mingran. Your line is open.

Mingran Li, Analyst, CICC: Thank you management for taking my question and congrats on the strong results. My first question concerns the demand side. Given the recent geopolitical risk, how does management assess the potential impact on Tuya’s international operation? Looking at the current environment in this year, how do you perceive the recovery in demand across your overseas markets? My second question, I would like to ask about the shareholder return. Tuya holds a very healthy cash position, and your profitability continues to improve. Could management share if there are any more specific plans or considerations for shareholder returns as we move through to 2026? Thank you very much.

Alex Yang, Co-founder and CFO, Tuya Inc.: Thank you for the questions. The first one is that, I already covered part of that, like the, from MS, like the tariff questions. The first one is that, yes, the global situation will become more and more dynamic, right? We’re starting to get used to that, but coming on with our customers as well. Right now we will see that, we get to be able to see more positive indicators in that direction, either reductions of the tariff on the global side, but anyhow, right, to any type of pathways. We really see that people require, the commerce require a better environment to do the business and people cannot cut each other off. We really see that.

The end demand continue to increase because the technology really provides value for the end users, and they want it. They use that more and more often. That’s what we see. This is inevitable. I mean, you can never return that. Coming on with the end demand increase and, all the, the commerce level that people just figure out a way how they’ll be able to fulfill the demand and goes through, navigate through all the dynamic factors, including the tariff, including the reallocation of the supply chain globally, et cetera. For us is that we just follow the flow, is that we come along with the customers to focus on, first one is the...

to provide our offering, technique offering to help them to build whatever application that makes sense for their end users and be able to scale it. That’s the first one, to make them be able to provide the right thing. In the same time that, we continue closely that to manage the cost coming on with the different, allocation of our services on the global side. Right now, we can deploy the services on whatever countries my customers are. We already did. Right now my customers are really starting to build different type of production, and they already have different type of production centers in, across 11 countries all over the world. We just follow the flow and help them to achieve that more agilely.

I think that that’s a overall what we see for the global situation side. This year we will see that people looking forward to have the rebound versus 2025, because 2025 will be kind of the overconscious situations and people don’t know what will happen and things happening like every week. People don’t people are not willing to do even a long term across the quarter like the decisions. They keep that decision very I mean, frequently and precisely more than macro decisions. This year, people will see that the sustainability on the situation will be starting to become better. They try to rebound from the overconscious confidence level. Yeah. That’s for the macro side.

Second side, for the return of the shareholders as what we’ve been doing for the past 2 years, we continue as the shareholders return as one of the prioritized targets for the company as well. We continues to provide a very sustainable and strong foundations on the operation side, including the net cash flow, including the profitability, including the growth of the revenue, including the health of the revenue structures and the margin. The return of the shareholders will become our long-term strategy as well. We just announced we have a new round of the dividend for the shareholders as well. Coming out as a continue as a practice for us is that 1x or 2x a dividend a year.

That will be what we’re doing for the shareholders returns. Also in the same time the dividend will be more reflect on our level of net operating cash flow and profitability. That’s what we’ll be working with.

Mingran Li, Analyst, CICC: Very clear. Thank you.

Operator: Thank you. Our next question comes from Matt Ma from Jefferies. Please ask your question, Matt.

Alex Yang, Co-founder and CFO, Tuya Inc.: Hey.

Operator: The line is open.

Matt Ma, Analyst, Jefferies: Hello. Good morning. Thank you for taking my question and congrats on the solid results. My question is regarding on the smart solution segment. We noticed that the company showcased multiple AIOT products at CES last year. Which product categories does the company have higher confidence in sales growth in this year? When we are thinking about product category expansion, what’s our thought process? Could we expect relatively strong growth in the smart solutions segment in 2026?

Alex Yang, Co-founder and CFO, Tuya Inc.: Thanks for the question, Matt. The first one is that, I think combined with the previous questions and answers. For the more promising, quote as promising maybe, I mean, we will have more confidence levels categories that can achieve a higher growth combined, enabled by AI. Those categories will be those devices that can use more AI capabilities naturally. Including those kind of video and audio interactions and safety stuff and, toy, what we call entertainment stuff and appliances. Those energy. Those will be those segments we’ll find that AI can use more. They can use more AI capabilities than ever, and some of the capability will directly deliver as a value that becomes visible for the end users.

That’s one. We have a more confidence level in that segment. In the same time, we continue to reach other segments and what will be the new innovative ideas that combine the AI deep integrated with the existing device capabilities. We continue to search for that as well. We think that we’re gonna see in 2026 is that gradually you’ll find more and more new type of device that didn’t exist before, which trying to occur because of the AI. That will be two, three new stuff. Same as a toy. Nobody think that a companion type of toy will become realistic before 2025.

This type of new concept of applications, we’re looking for to have more because we have more talents coming into the industry. We have more players coming into the industry. The new ideas come across different world will create a very, very interesting chemistries out there. New categories, which I don’t name that, even we don’t know how should we call that, but we’ll find more this year. That’s the first one, the first question. Second one is on the smart solutions. Like I described, the value proposition of smart solution is that is those type of hardware type that help my customers to differentiate themselves. Those differentiators, the customers prefer to have to do that because either there will be more efficiency or that will be a must-be.

A significant, I mean, a typical use cases for that is like the bird feeders. I mentioned a couple of times out there, is that’s just a concept of ideas that might work. The customers come from How can I say? The pet products world, they know that some of those, their customers are looking for to interact with wildlife like that. That’s, that’s the customer and consumer or user insight and concept ideas. If they want to do that, they have to cover all the technology gap. It will be kind of overwhelming for them. Not only because of the lack of capabilities of the engineering team, but also that investment can be huge. I mean, for them, if they do that individually.

Also in the same time, that type of innovations need a deep integration on the software and hardware development directly. Instead of waiting for Tuya to offering the PaaS, maybe that doesn’t show up in our PaaS roadmap ever. They say that how they can work closer with Tuya if we can make that happen. Through that, we think that we buy in this concept and then we make it, we’ll offer it as a solution because we can directly make that happen, and then they can try out the concept.

That, that would be the typical situation for the smart solution, is that we’re looking for those differentiator or differentiated type of offering to the market that can help my customer outstand themselves in their own segment, in different region, in different categories, in different vertical channels, et cetera. We only focus on this. You can see that for the smart solutions, even on the hardware business, we maintain as a 20%+ margin. Reason being is that we only choose those higher valued products with the differentiations and with the special technical offering, and touch as a very precise targeted consumers that they’re willing to pay higher. That will be what we do. Consider smart solution will be kind of the higher value segment type of the devices among all my PaaS offers. This we’ll continue to do.

Usually, our solutions will become the flagship model for my specific PaaS customers in the new year. We continue to work along with their product roadmap year-over-year, and the flagship types, they’re asking us to offer as a solution.

Matt Ma, Analyst, Jefferies: Thank you. That’s very helpful. Thank you.

Operator: Thank you. There are no further questions at this time. I’ll now hand back to the management team for our closing remarks.

Regina Wang, Investor Relations Associate Director, Tuya Inc.: Thank you, operator, and thank you all once again for joining us today. If you have any further questions, please feel free to contact Tuya’s IR team. Goodbye and see you next quarter.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect your line.