Shares of Tuya (NYSE: TUYA), an Internet of Things cloud development platform company, plummeted after it reported worse-than-expected second-quarter results for both its top and bottom lines.
The tech stock was down by 17.9% as of 12:57 p.m. ET.
Tuya reported a diluted net loss per American depositary share (ADS) of $0.10 in the quarter, which was an improvement from the company’s loss of $0.15 per share in the year-ago quarter but was worse than Wall Street’s average estimate of a loss of $0.09.
The company’s first-quarter sales also disappointed investors. Tuya’s revenue fell by 2.7% to $55.3 million, which was slightly lower than analysts’ consensus estimate of $56.2 million.
In a press release, Tuya’s CEO Xueji Wang said, “While global inflation is running high and has not shown any signs of recovery, we will focus on improving operating efficiency, expanding customer base, and diversifying revenue stream to sustain our growth in the future.”
Management pointed to a few bright spots in the quarter, including the fact that total customers increased by 29% from the year-ago quarter and sales in its “SaaS and other” segment increased by nearly 147% year over year.
The company issued second-quarter sales guidance in the range between $60 million and $65 million, which could end up above analysts’ average estimate of $61.6 million.
Investors have less patience right now for technology stocks that miss Wall Street’s consensus estimates, which is why the stock is reeling today. With inflation still on the rise and investors concerned about the Federal Reserve’s aggressive moves to tamp it down, it’s no wonder why Tuya’s stock price is crumbling today.