Tuya Inc. (TUYA-W) saw its stock surge 5.13% in Wednesday's trading session following the release of its impressive first-quarter 2025 financial results. The global cloud platform service provider reported strong revenue growth and a return to profitability, surpassing analyst expectations.

The company's Q1 2025 total revenue reached $74.7 million, marking a significant 21.1% increase compared to the same period last year. This growth was driven by solid performance across all business segments. IoT platform-as-a-service (PaaS) revenue rose by 17.9% to $53.7 million, while software-as-a-service (SaaS) and others category grew by 15.5% to $10.0 million. Notably, smart solution revenue experienced a substantial increase of 47.1%, totaling $11.0 million.

Tuya's return to profitability was a key highlight, reporting a GAAP net profit of $11.0 million, which nearly doubled the full-year total for 2024. This translated to earnings per share of $0.03, beating the lone analyst forecast of $0.02 per share. The company also achieved a record-high GAAP net margin of 14.8% and maintained positive operating cash flow for the eighth consecutive quarter. These strong financial results, coupled with Tuya's focus on enhancing its AIoT capabilities and supporting global developers in integrating AI with smart devices, have clearly resonated with investors, driving the stock's significant rise during Wednesday's trading session.