Timothy Zhao's questions to Tuya Inc (TUYA) leadership • Q2 2024
Question
Timothy Zhao of Goldman Sachs asked about the outlook for operating profitability following the company's first profitable quarter, and also inquired about the long-term perspective on cash dividends.
Answer
Outgoing CFO Jessie Liu addressed profitability, stating the company expects to maintain a non-GAAP quarterly operating margin similar to Q2's 10% level, driven by the business model's operating leverage and disciplined cost control. Incoming CFO Alex Yang explained the dividend is a 'special dividend' based on H1 non-GAAP net profit, reflecting the company's strong cash flow and financial position, with the goal of establishing a sustainable, long-term shareholder return model.