Shares of Tuya Inc. (NYSE: TUYA) soared 7.36% in pre-market trading on Wednesday following the release of its impressive first-quarter 2025 financial results. The global cloud platform service provider reported significant growth in revenue and a return to profitability, exceeding analyst expectations.

For the first quarter ended March 31, 2025, Tuya's revenue climbed to $74.7 million, marking a substantial 21.1% increase compared to the same period last year. This growth was primarily driven by the company's IoT platform-as-a-service (PaaS) revenue, which rose by 17.9% to $53.7 million, and its smart solution revenue, which jumped by 47.1% to $11.0 million.

More notably, Tuya achieved a GAAP net profit of $11.0 million for the quarter, a remarkable turnaround from the net loss of $3.5 million reported in Q1 2024. The company's earnings per share of $0.03 beat the analyst consensus estimate of $0.02 by 50%. Tuya also reported a record-high GAAP net margin of 14.8% and generated positive operating cash flow for the eighth consecutive quarter.

The strong financial performance can be attributed to Tuya's strategic focus on enhancing its AIoT capabilities and supporting global developers in integrating AI with smart devices. Despite ongoing macroeconomic uncertainties, the company's ability to maintain revenue growth while improving profitability has impressed investors, driving the pre-market stock surge.