Tuya Inc. (NYSE: TUYA) was among the biggest losers among Chinese stocks Wednesday, trading down 18% in the afternoon, at $12.30 per share, on disappointing guidance for the third quarter.
In its financial report for the June quarter, Tuya said its revenue more than doubled year-over-year to $84.7 million, thanks to the growth in its IoT PaaS and SaaS segments. Net loss widened to $38.1 million, or 7 cents per share, compared with a loss of $14.7 million in the second quarter of 2020.
While the revenue growth exceeded analysts' expectations, third-quarter guidance was well below predictions. In the third quarter of 2021, Tuya said it expects to generate between $83 million and $86 million in revenue, while analysts forecast $89.9 million.
Tuya's founder and CEO, Xueji (Jerry) Wang, noted the company's fast growth amid the macro headwinds and the global chip shortage.
Wang also said, "Continuing our deep commitment to data security and privacy, we are working with the world's top security assessment companies and audit institutions to ensure our security compliance remains best-in-class with localized data processing and storage for regions such as U.S. and Europe, and isolation of each data center, through independent testing, audit, and consulting from reputable third parties."
Overall, Tuya has lost half of its market value since becoming publicly traded in New York in mid-March of this year. Shares in the company have seen some volatility since IPO: on Tuesday, its stock closed at $15 per share, while the ceiling has been $27.65 and low was at $11.73.
Tuya's IPO in March, worth $946.6 million including the greenshoe option exercised by the underwriters, was one of the largest public deals by a Chinese firm in New York this year. The Chinese IoT cloud platform is backed by Tencent Holdings (OTC: TCEHY; HKEX: 0700) and is led by a team of co-founders who previously worked for the cloud unit of Alibaba Group (NYSE: BABA; HKEX: 9988).